An Internship Report

On
Analysis of General Banking Activities of Standard Bank
Limited
 An Internship Report
On
Analysis of General Banking Activities of Standard Bank
Limited

Prepared For

Mr. Riyashad Ahmed

Assistant Professor of Finance &
Coordinator, EMBA Program
BBS, BRACU

Prepared by

Muhammad Tareq Aziz

ID: 11164061
Department of Finance
BRAC University

BRAC University
Date: 30 May, 2016
 LETTER OF TRANSMITTAL

May 30, 2016

Mr. Riyashad Ahmed

Assistant Professor of Finance &
Coordinator, EMBA Program
BRAC Business School
BRAC University

Subject: Submission of Internship report on “Analysis of General Banking Activities

of Standard BankLimited”

Dear Sir,
It is my great pleasure to present the internship report on “Analysis of General Banking
Activities of Standard BankLimited” which was assigned to me as a partial requirement
for the completion of my MBA program. Throughout the study, I have tried with the
best of my capacity to accommodate as much information and relevant issues as
possible and tried to follow the instruction as you have suggested. I sincerely believe
that it will satisfy your requirements. I believe that this report will serve the purpose of
my internship program.

But there may be some mistakes due to various limitations. Therefore I beg your kind
consideration in this regard. Any kind of suggestion and clarification will be accepted
cordially.

Sincerely yours,

…………………………………………..
Muhammad Tareq Aziz
ID: 11164061
Program: MBA
Major in Finance
BRAC University
 ACKNOWLEDGEMENT

At first I want to express my gratitude to Almighty Allah for giving me the strength and
the composure to finish the task within the scheduled time. Then I am very grateful to
the “Standard Bank Limited” for providing me the opportunity to complete my
internship program.

I received cordial cooperation from the officers and members of staffs of “Standard
Bank Limited” Dhanmondi Branch. I want to express my cordial gratitude to them for
their cooperation without which it would not be possible to complete the report.

I wouldlike to express my deep sense of gratitude & sincere appreciation to my

internship supervisor Mr. Riyashad Ahmed, Assistant Professor of Finance &
Coordinator, EMBA Program, BBS, BRACU, for his continuous support & guidance
during the period. His suggestions and comments were really a great source of spirit to
make the report a good one.

I acknowledge my indebtedness to, Mr. S.M.Heamyet Uddin(EVP &Br. Manager), Ms.

Farzana Nahid (AVP & 2nd Man), G.M RabbaniTalukder(Senior Executiven Officer &
Credit In-Chrage), Mr. Shahjahan (EO), Ms. Tania Rahman (Senior Executive Officer
& GB In-Charge), Md. TanvirHussain(Executive Officer), Mohammad Nurullah(Senior
Officer),and Ms. Bijili Rani (Executive Officer in Cash).They helped me with the very
best opportunity as much as possible.

I would like to express my thanks to all the people that were involved both directly and
indirectly to prepare of this report. I apologize to the people whose names that I have
not mentioned and their contribution is highly appreciated by me. I thank them all from
the core of my heart.
 Executive Summary

Banks today are under great pressure to perform-to meet the demands of various groups.
As banking organizations have grown in recent years, more and more of them have been
forced to turn towards the money/capital markets to raise funds by selling stocks, bonds,
and short term IOUs. In many cases, the growth of local deposits have simply been
inadequate to fund the growing need of customers for loans and new services. But bank’s
entry into the open market to raise funds means that their financial statements are
increasingly being scrutinized by investors and by the general public. This development
has placed management under great pressure to set and meet bank performance goals.
Banking system of Bangladesh has gone through three phases of development-
Nationalization; Privatization and Lastly Financial Sector Reform, Standard Bank Limited is
one of the Bangladeshi owned Bank in the private sector.
The whole working process of Standard Bank Limited is divided into 3 divisions as under:
i) General Banking Division
ii) Credit Division, and
iii) Foreign Exchange Division.
This report has been prepared based on the information taken from the General Banking
Division as mentioned above.
Though foreign remittance is one of the major parts of bank’s income but the loans and
advances and other loan schemes play a vital role in success of Standard Bank Limited
(SBL). SBL offers the clients deposit scheme, loan scheme, remittance service and the like.
In deposit scheme they use to offer Fixed Deposit Receipt (FDR), Regular Deposit Program
(SRDP), and Special Fixed Deposit scheme (DI+). It offers special loan scheme and general
loans and advances in loan scheme. In special loan scheme bank offers consumer scheme,
lease financing, micro credit financing and special housing loan. General sector contains
conventional cash credit, secured overdraft and regular service.
Topic Name Page No.

Chapter-1: 1-10
THE ORGANIZATION

1.1.Introduction 2
1.2. Historical Background of SBL 2
1.3. Corporate Profile 3
1.4. Corporate Governance 4
1.5. Board of Directors 5
1.6. Organizational Chart of Standard Bank Limited
6
1.7. Management Hierarchy of Standard Bank Limited(Dhanmondi 7
Branch)
1.8. Corporate Culture 8
1.9. Corporate Social Responsibility (CSR) of SBL 8
1.10. Capital Structure 8
1.11. The Ownership Pattern 9
1.12. Vision Of Standard Bank Ltd. 9
1.13. Mission of Standard Bank Ltd. 9
1.14. Vision for future 9-10

CHAPTER-2 11-13
THE JOB (GENERAL B ANKING )

2.1. Name of the Job/s (General Banking) 12

2.2. Specific Responsibilities if the job 12
2.3. Critical Observations and Recommendations 12-13

Chapter -3 14-18
THE PROJECT (

3.1. Summary 15
3.2. Background of the study 15
3.3. Objectives of the Study 16
3.4. Methodology of the Study 16
3.5. Research Instruments 17
3.5.1. Sampling Plan 18
3.6. Limitation of the Study 18
 Chapter-4 19-36
Theoretical Aspect Of General Banking

4.1. General Banking of Standard Bank Limited 20

4.2. Functions of General Banking 20
4.2.1. Retail Banking 20
4.2.1.1. Product of Retailing Banking 21
4.2.1.2 Deposit Product 21
4.2.1.3. Loan Product 22
4.2.1.4. Card 22
4.3. Account Opening/Closing section 23
4.3.1. Sections of General Banking 23
4.3.2. Account Opening Section 24
4.3.3. Various types of account offered by Standard Bank Limited:
 Savings Bank (SB) Account
 Current Deposit (CD) Account 24-26
 Short Term Deposit (STD)
 Fixed Deposit Receipt (FOR) Account

4.4. Various products and services offered by Standard Bank Ltd.:

 Deposit Product
 SBL Regular Deposit Program 26-28
 SBL Regular income plus
 SBL Double income plus
4.5. Documentation for Account Opening 28-29
4.6. Account Section 29-30
4.7. Cash Section: 30-31
4.7.1. Books maintained by cash department: 31-32
4.8. Remittance Section: 32
4.9. Payment Order / Pay Order (P.0) 32-33
4.10. Demand Draft (D.D) 33-34
4.11. Clearing & Bills Section 34-35
4.12. Outward Bills for Collection (OBC) 35
4.13. Inward Bills for Collection (IBC) 35-36
4.14. Mail Receive & Dispatch Section 36
 Chapter-5 37-54
Analysis

5.1. Analysis of General Banking of selected banks 38

5.2. Banks Wise Deposit on 2015 38
5.3. Initial Deposit to open Saving & Current Account 39
5.4. Maintenance charge for saving and current account half 40
yearly
5.5. Account Closing Charge 41
5.6. Interest Rate for Saving Account 42
5.7. Pay Order charge 43
5.8. Number of Branches 44
5.9. Analysis on the basis of customer response of selected banks 45
5.10. Satisfied with the Online Service of SBL 45
5.11. Maintenance charge of SBL is flexible 46
5.12. Account opening process is easy of SBL 47
5.13. General Banking Operation are well structured in SBL 48
5.14. Pay order issuance procedures are acceptable in SBL 49
5.15. New Cheque Book Issuance time of SBL is acceptable 50
5.16. Waiting time is longer to get service from SBL 51
5.17. ATM service of SBL is good 52
5.18. Satisfied with the Service Charge of SBL 53
5.19. Found Freedom in banking activities 54

Chapter-6 55-58
Findings, Recommendation & Conclusion

6.l. Findings 56
6.2. Limitations 57
6.3. Recommendations 57
6.4. Conclusion 58

Chapter-7 59-61
Reference & Appendix

7. 1.References 60
7.2.Appendix 61
Chapter-1
The Organization

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1.1. Introduction:

Banking operations are becoming more dynamic and challenging job to do the business in the
financial market. The demand for superior banking facilities offers one-stop integrated financial
services for the customers. The ability of banks to offer clients access to several markets for
different classes of the financial instruments has become a valuable competitive edge. The
working of the customer’s mind is a mystery which is difficult to solve and understanding the
nuances of what customer satisfaction is a challenging task. The exercise in the context of the
banking industry will give us an insight into the parameters of customer satisfaction and their
measurement. This vital information will help us to build satisfaction amongst the customers and
customer locality in the long run which is an integral part of any business.

The customer’s requirements must be translated and qualified into measurable targets. This
provides an easy way to monitor improvements, and deciding upon the attributes that need to be
concentrated on in order to improve customer’s satisfaction. We can recognize where we n need
to make changes to create improvements and determine if these changes, after complemented,
have led to increased customer satisfaction. If we can’t measure the level of customer
satisfaction in banking sectors then we can’t able to improve the banking service in order to keep
customers satisfy.

The reason behind choosing this topic is to know the level of customer satisfaction and
performance of the Standard Bank Ltd. In this report I have tried to make differences in order to
banking performance, employee performances and the level of customer satisfaction in this bank.
At the same time to come across major findings and to provide some relevant recommendations
in favor of the Bank.

1.2. Historical Background of SBL:

Standard Bank Limited (SBL) is a banking company registered under the companies Act 1994
with its head office Metropolitan Chamber & Commerce Building (3rd Floor) 122-124, Motijheel
C/A, Dhaka-1000. The bank operates as a scheduled bank under a banking license issued by the
Bangladesh Bank, Central Bank of the country. Bank started its operation from 11, May 1999.
SBL is a capitalized new generating Bank with an authorized capital and paid up capital of Taka
15,000 million in 2014 and also. Taka 5,702 million respectively.

2|Page
November 2015.Currently the bank has 105 branches of which 50 in Dhaka Zone, 24 in
Chittagong Zone, 12 in Khulna Zone, 13 in Rangpur Zone, 6 in Sylhet Zone. More branches are
planning to be opened soon. The bank undertakes all types of banking transaction to support the
development of trade and commerce in the country.

To provide clientele services in respect of international trade it has established wide

corresponded banking relationship with local and foreign banks covering major trade and
financial profit home and abroad.

Since the very inception Standard Bank Ltd. is working with the philosophy of serving the
nationals as an ideal and unique financial house. Every organization has some objectives of its
own. The prime objective of Standard Bank Ltd. is to earn profit throw undertaking the
responsibility of providing financial help for the development of the country’s commercial and
industrial sector.

1.3. Corporate Profile:

Standard Bank Limited (SBL) was established in the year 1999 as a public limited company.

Name of the Company Standard Bank Limited

Legal Form Public Limited Company
Authorized Capital Taka 15,000 Million
Paid up Capital Taka 5,702 Million
Incorporation May 11, 1999
Commercial Operations June 03, 1999
Slogan of the company “Setting a new standard in Banking”
Type of Company Commercial Bank
Main Business Providing Term loans to Small Scale Enterprises and
Operating Full-fledged commercial banking service.
Registered Office Metropolitan Chamber Building, Level 3
122-124 Motijheel C/A, Dhaka-1000
Phone: +880-2-7175698, 7169134
FAX: 88 02 7176367
Email: sblho@bangla.net

3|Page
 Web: www.standardbankbd.com
SWIFT SDBLBDDH
Auditors ShafiqBasak& Co. Chartered Accountants
Chairman Ln.KaziAkram Uddin Ahmed
Managing Director & CEO Mr. Md. NazmusSalehin
Deputy Managing Director Mr. Motaleb Hossain
Chief Financial Officer Md. Ali Reza FCMA
Company Secretary Md. Ali Reza, FCMA
Annual Report 2014
Number of Employees 1548
Number of Branches 105 (Hundred And Five)
Number of Shareholders 37249
For SBL Investment Limited Managing Director
(a subsidiary of SBL) 122-124 Motijheel C/A, Dhaka-1000
Listing Status (Shares) DSE (Dhaka Stock Exchange)
Symbol : Standard Bank
Listing Date: 2003
CSE (Chittagong Stock Exchange):
Symbol: SBL
Listing Date: 17.11.2003
Market Price as on 31.12.2014
DSE: Taka 12.70 Category: A
Shares Percentage Sponsor/Directors = 44%
Institute = 13%
Public = 43%

Table-01: Corporate Profile

1.4. Corporate Governance

Corporate governance is the system by which companies are directed and controlled. It involves
regulatory and market mechanisms, and the roles and relationships between a company’s
management, its board, its shareholders and other stakeholders, and the goals for which the
corporation is governed.

4|Page
1.5 Board of Directors:
Standard Bank Limited is directed and controlled by the Chairman and the Managing Director of
the company. They are directly and indirectly involved in making organizational strategies and
policies.

SL No Name Designation
01 Mr.KaziAkram Uddin Ahmed Chairman
02 Mr.Ferozur Rahman Vice-Chairman
03 Mr. Ashok Kumar Saha Director
04 Mr. Kamal Mostafa Chowdhury Director
05 Mr. Md. MonzurulAlam Director
06 Mr. S. A. M. Hossain Director
07 Mr. Mohammed Abdul Aziz Director
08 Al-Haj Mohammed ShamsulAlam Director
09 Mr.Gulzar Ahmed Director
10 Mr. Md. ZahedulHoque Director
11 Al-Haj Md. Yousuf Chowdhury Director
12 Mr. Md. Fayekuzzaman, MD, ICB Director
14 Mr. S. S. Nizamuddin Ahmed Independent Director
15 Mr.Najmul Huq Chaudhury Independent Director
16 Mr. Md. NazmusSalehin, MD Ex-Officio Director

Table-02: Board of
DirectorsDirectors
5|Page
1.6. Organizational Chart of Standard Bank Limited

1. CHAIRMAN ADVIOSOR BOARD OF DIRECTOR

2. MANAGING DIRECTOR

3. ADDITIONAL MANAGING DIRECTOR

4. DEPUTY MANAGING DIRECTOR

5. SENIOR EXECUTIVE VICE PRESIDENT

6. EXCUTIVE VICE PRESIDENT

7. SENIOR VICE PRESIDENT

8. VICE PRESIDENT

9. SENIOR ASSISTANT VICE PRESIDENT

10. ASSISTANT VICE PRESIDENT

11. FIRST ASSISTANT VICE PRESIDENT

12. SENIOR EXECUTIVE OFFICER

13. EXECUTIVE OFFICER

14. SENIOR OFFICER

15. OFFICER

16. ASSISTANT OFFICER

17. TRAINEE ASSISTANT OFFICER

Figure: 01: Organizational flow chart

6|Page
1.7. Management Hierarchy of Standard Bank Limited (Dhanmondi Branch)

Branch Manager

Assistant Vice President(2nd Man)

General Banking Foreign Exchange Investment

Senior Executive Senior Executive Senior Executive

Officer Officer Officer

Executive Office Executive Office Executive Office

Senior Officer Senior Officer Senior Officer

Assistant Officer

Trainee Assistant
Officer

Figure: 2 Management Hierarchy (Dhanmondi Branch)

7|Page
1.8. Corporate Culture:

Employees of SBL promoting the wellbeing of the members of the staff.

 Fast customer service.

 Search for professional excellence.
 Openness to new ideas and new methods to encourage creativity.
 Proper decision making.
 Flexibility and prompt response.
 A sense of professional ethics.

1.9. Corporate Social Responsibility (CSR) of SBL:

As a responsible corporate citizen, Standard Bank Ltd. Is a always of its Corporate Social
Responsible (CSR) with an aim to ensure the bank as a socially responsible corporate entity
contributing towards quality of life of the society at large without compromising our ecological
balance. This year Corporate Social Responsible (CSR) activities of the Bank expanded to Taka
4.83 corer under Health, Education, Sports, Disaster Management and Environmental
programmed as against Taka 7.55 corer in 2014 to reaffirm the commitment of the Bank towards
society.

1.10. Capital Structure:

Capital structure of standard bank Ltd. is as under:

1. Authorized capital
(15000 ordinary shares of Tk 10 each)

2. Paid up capital
(26917259 ordinary shares of Tk 10 each)

The directors may revise the capital structure from time to time according to need.

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1.11. The Ownership Pattern:

This is a private sector commercial Bank providing comprehensive range of banking services.
The bank is owned as follows:

Sponsor/Directors 44%
Institute 13%

Public 43%

At present the Bank has an amount of Tk. 15000 million of Authorized Capital and Tk. 5702
million of Paid-up Capital.

1.12. Vision of Standard Bank Ltd:

To be a modern Bank having the object of building a sound national economy and to contribute
significantly to the Public Exchequer.

1.13. Mission of Standard Bank Ltd:

To be the best private commercial bank in Bangladesh in terms of efficiency capital adequacy
asset quality sound management and profitability.

1.14. Vision for the Future

1.14.1. Objectives& Goals of SBL

Key objectives

a. To be a dynamic leader in the financial market in innovating new products as to the

needs of the society.
b. To earn positive economic value addition (EVA) each year to come.
c. To top the list in respect of cost efficiency of all the commercial Banks.
d. To become one of the best financial institutions in Bangladesh economy participating in
the most significant segments of business market that we serve.

9|Page
1.14.2. Core values of SBL

Core Values
 Our Shareholders: By ensuring fair return on their investment through generating stable
profit.
 Our customer: To become most caring bank by providing the most courteous and
efficient service in every area of our business.
 Our employee: By promoting the well being of the members of the staff.
 Community: Assuring our socially responsible corporate entity in a tangible manner
through close adherence to national policies and objectives.

1.14.3. Strategies of SBL

 To manage and operate the Bank in the most efficient manner to enhance financial
performance and to control cost of fund
 To strive for customer satisfaction through quality control and delivery of timely services
 To identify customers' credit and other banking needs and monitor their perception
towards our performance in meeting those requirements
 To review and update policies, procedures and practices to enhance the ability to extend
better service to customers.
 To train and develop all employees and provide them adequate resources so that
customers’ needs can be reasonably addressed.
 To promote organizational effectiveness by openly communicating company plans,
policies, practices and procedures to employees in a timely fashion
 To cultivate a working environment that fosters positive motivation for improved
performance
 To diversify portfolio both in the retail and wholesale market
 To increase direct contact with customers in order to cultivate a closer relationship
between the bank and its customers.

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Chapter-2
The Job

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2.1 Name of the Job/s (General Banking)
My journey as an employee in Standard Bank Ltd. (SBL) started on 25.03.2012. I worked in
general banking division with the customer team very 1st day of my joining. General banking
division mainly work to solve the customer necessary need and to open different bank account.
My branch located at House#04, Road# 16 (new), 27 (Old), Dhanmondi R/A, Dhanmondi,
Dhaka. My supervisor is G.M Rabbani Talukder, Senior Executive Officer. My working hour
began at 10 AM and continued to 5 PM. I am briefed by my supervisor about the general
banking products and various features of the banking products and services that are provided by
the general banking division. While my supervisor appraised me I feel proud that increase my
attention to the organization. It is very much pleasure to me that I am a family member of such a
well reputed organization. I have enjoyed every moment in general banking division at SBL and
I gathered much experience that will help to expand my future career.

2.2. Specific Responsibilities of the Job

I was assigned in the general Banking division which was undertaken by my supervisor. SBL
offers different marketing products. General banking division expresses the products feature to
its customer. As a general employee of general banking department I tried to convince of the
potential customers. I also admit to open account that are Current Deposit (CD), Short Term
Deposit (STD), Savings Bank Deposit (SB), Fixed Deposit (FDR), Special Regular Deposit
Program (SRDP), Special Regular Income Program(SRIP), Wage Earners Welfare Deposit
Pension Scheme (WEWDPS), Double Income Plus (DI+). Some time I worked for cash division
to arrange the cash and Cheque Voucher. Apart from my daily duties, I assisted my supervisors
at their works whenever it was necessary. I have also spent a lot of time in the front desk.

2.3 Critical observations and Recommendations

There are some critics and observation which I would like to mention here. I have also made
some recommendations along with my observations. For the probable solutions of these
identified problems and to ensure better progress of SBL in future, some necessary steps are
recommended bellow on the basis of collected data, observation, expert staffs’ opinion and my
knowledge and judgment.

 If the entire banking system become fully online on computerized system that can satisfy the
customer by providing fast service with minimum service charge.

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 SBL should ensure networking system with its branches then it could easily transfer data within
short time.
 SBL should ensure give more attention to advertisement for creating more attraction among its
customers, which is helpful to collect more deposits and increase investment scope. That’s why
bank should give emphasis on advertisement in various media like TV, News Paper, Internet and
Billboard.
 The entire department should be well informed regarding their goals and objectives. It is
essential to execute company objective into individual target.
 A philosophy of working for the customer instead of working for boss must be introduced. And
job description should be clarified and proper training facilities should ensure to improve the
performance of bottom line management.
 It was observed that officers of SBL have to spend more time in preparing vouchers; this can be
avoided by automation.
 SBL should develop online banking system to compare with other commercial banks.
 The bank has the provision of internship but there is no organized program for internship.
 Credit Card and Automated Teller Machine (ATM) should be introduced in every branches of SBL
as soon as possible because of present market demand of the customer and the educated
customer now wants technology based banking.
 Attractive incentive packages for the exporters will help to increase the export and accordingly it
will diminish the balance of payment gap of SBL.
 SBL is to be concentrating in always monitoring the performances of its competitors in the field
of foreign trade.
 Bank can provide foreign market reports that will enable the exporter to evaluate the demand
for their products in foreign countries.
 Due to lack of proper knowledge about the operation procedure and services provide to the
customers by SWIFT certain customers are facing problem as they have to wait for certain time
to get service. And sometimes personnel are not being able to operate SWIFT without any
confutation. They are not fully independent handling SWIFT. Official training is the solution of
this problem.
 Bangladesh Bank should take initiative to form a high-powered committee consisting scholars
and experts from different disciplines and professions such as academicians, economists’
bankers, and lawyers etc. to design an appropriate and useful legal framework for Islami Shariah
based Banking. This type of committee may be helpful for the necessary correction of
government policies in Islami Banking.
 SBL will have to encourage entrepreneurs, businessmen, rich people and government to come
forward to established ancillary organizations.
 Branches of SBL are not sufficient as per demand of the people. So SBL should set up new
branches.

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Chapter-3
The Project

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3.1. Summary:

Banks are important financial institutions, which play a vital role in the economy of a country. It
deals with credit i.e., accepts deposit from the public and advance various loans. The system of
banking is very ancient. It was prevalent in India, Greece and Rome. It arose out of the logical
fact that people who possessed surplus money deposited them for safe keeping to whom they
have confidence, payable after a period of time when the need would arise. The holders of this
surplus money soon found out that it was profitable to lend money, the provided loans were
repaid before the date when the money would be demanded.

The bankers or holders of the money give sign paper to their depositors as evidence of the
deposit money. As people had confidence in the integrity and the solvency of the banker their
signed paper would passed from hand to hand in the settlement of transaction. These papers were
the origin of note as people had confidence in their credit of the bankers only, as small
proportion of note/signed papers would be presented for encashment during a period. The later
were able to lend out the major portion of their deposits with satisfy, thus earning a decent profit
with other people’s money. As the business lending money become more and profitable, money
holders began to offer interest on the money deposited with then at a rate lower that obtained on
loans.

In course of time cheque were adopted and this imparted elasticity to the system. Thus came into
existence the system of commercial banking. A bank can be best by its functions, it collects the
saving of the public, it gives loans and advances and it created media of exchanges through
chaque. A commercial bank is a dealer of a short term credit. In addition to the above, bank
performs various functions:

a) Financing of foreign trade

b) Agency services,
c) General utility service.

A bank is a big substations center for liquidity, which takes the deposits from the public and
supplies liquidity to the economic system.

3.2. Background of the study:

This report is an Internship report prepared as a requirement for the completion of the BBA program,
Bangladesh University of Business & Technology (BUBT). The primary goal of internship is to provide
an on-the-job exposure to the student and giving an opportunity to translating the theoretical concepts in
particular life situation. Students are placed in different enterprises, organizations, research institutions as
well as development projects. The program covers a period of three months of on-the-work attachment
with a particular organization, chosen by the students themselves or the concerning department. As a
requirement for the successful completion of the program, I needed to submit this report.

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3.3. Objectives of the Study:

General Objective:

The main objective of the report is to analyze the General Banking activities of Standard Bank Limited
(SBL).

Specific Objectives:

Besides achieving the main objective, I also have some specific objectives. Those objectives are pointed
out as follows:

 To scrutinize the account opening, account closing, cash receipt & payment process, cheque and
bill clearing process of SBL.
 To examine the service fees and profit rate on deposit of SBL with Mercantile Bank Limited
and Janata Bank Limited.
 To analyze the customers perception regarding the General Banking of SBL.

3.4. Methodology of the study:

Research Design:

A requires of systematic procedure for selection of the topic to final report preparation. In this
study descriptive research was undertaken to gain insights of the analysis of General Banking of
Standard Bank Ltd. To perform the study data sources were identified and collected, they were
classified, analyzed, interpreted and presented in a systematic manner and key points were found
out. The overall method of methodology is given below in the form of flow chart that has been
followed in the study.

1. Selection of the topic

2. Identifying the sources
3. Collection of data
4. Analysis, Interpretation and presentation of data
5. Finding of the study

Figure: List of Methodology.

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Sources of data:

I have collected the information/data from the following sources, which has helped me to make
this report. The source is divided into two parts

a) Primary Sources
b) Secondary Sources

The “Primary Sources” are as follows:

Data collected for the first time is called primary data. The methods used to collect such data
include:

 Face-to-face conversation with the respective officers and stuffs of the Branch.
 Informal conversation with the clients.
 Practical work exposures from the different desks of the departments of the Branch
covered.

The “Secondary Sources” of data and information are:

The secondary data sources are annual reports, manuals, and brochures of Standard Bank
Limited and different publications of bank. To identify the implementation, supervision,
monitoring and repayment practice interview with the employee and extensive study of the
extensive study of the existing file.

3.5. Research Instruments:

Questionnaire:

Questionnaire is a research Instrument and it is very easy to collect data.

Type of interviewing method:

Face-to-face interview is conducted to collect information.

Type of question:

Structured questions with five response categories have been used to conduct the survey.

Size:

There are Ten Questions in each questionnaire.

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3.5.1. Sampling Plan:

Sampling plan is a definite plan for obtaining a sample from a given population.

1. Target Population: A group of individuals or items that similar one characteristic from
which data can be gathered and analyzed is called a population. Here the population is all
the individual customer of SBL.
2. Sample Unit/Element: The sample element is the individual customer of SBL’s
Dhanmondi Branch.
3. Sample frame: Sampling frame is define as the list or lists from which individuals are
selected.
4. Sample procedure: Non-probability judgmental sampling procedure is used in the survey.
5. Sample size: The sample size is 20.

3.6. Limitation of the Study:

This is an individual research work where only one individual researcher need to undertake the
whole process done alone but the time frame work did not permit me. In all respect some
limitations and weakness remain within which I failed to escape by any means. These are
follows:

 Relevant data and document collection is difficult due to the organization

confidentiality.
 Due to shortage of time, it is not possible to gather in-depth knowledge of
SBL.
 Large-scale research is not possible due to access constraints.
 Insufficiency of necessary information and data.
 Sometimes officials deny disclosing some information as to maintain secrecy.
 Up-to-date information is not available.
 It’s very difficult to measure the level of employee performance in short of
time.
 Sometimes customers didn’t have that much of time for answering the
questionnaire properly.
 Insufficient books, publications and journals about the banks information.

18 | P a g e
Chapter-4
Theoretical Aspect of General Banking

19 | P a g e
4.1. General Banking of Standard Bank Limited:

Out of three major sections, General Banking is important one. General Banking is the head of
total banking system. Through this section, bank has to receive and disburse money, to develop
banker customer relationship by opening different types of account and providing prompt
services to the customers. This department collects money from the depositor and uses these
deposits to earn profit.

4.2. Functions of General Banking:

The functions of General Banking department of Standard Bank Limited are as follows:

 Maintenance of different types Deposit A/C:

 Savings Accounts
 Current Accounts
 Fixed Deposits
 Short Term Deposits
 Others Saving Schemes
 Receipts & payment of cash.
 Handling transfer transactions.
 Operations of clearing house.
 Maintenance of accounts with Bangladesh Bank & other banks.
 Collection of Cheques & Bills.
 Issue and payment of Demand Drafts, Telegraphic Transfers and Payment Orders.
 Maintenance of Safe Deposit Lockers.
 Maintenance of internal Accounts of the banks.
 Reporting to the Head Office about daily position of the bank.
 Closing and transfer of different types of accounts.
 Account Opening section
 Remittance section
 Cash section
 Account section

4.2.1. Retail Banking:

General Banking is also known as Retail Banking. Retail banking refers to banking in which banking
institutions execute transactions directly with consumers, rather than corporation or other banks.General
Banking has five major sections in all the branch. These sections are given below;

1. Account opening section

2. Cash Section,
3. Remittance Section,
4. FDR Section,
5. Accounts & Clearing.

20 | P a g e
4.2.1.1 Product of Retailing Banking

Deposit Product Loan product Cards

Current Deposit Account Cash Credit (Hypo) Credit Card

Savings Deposit Account Secured Over Draft (SOD) Gold Master

Fixed Deposit Account House Building Loan (HBL) Silver Master

SBL Regular Income Program Car ATM Card

SBL Double Income Plus Consumer

SBL Regular Deposit Agri/Rural Credit

Program
LTR (Loan against Trust
Short Term Deposit Account Receipt)

School Banking

4.2.1.2 Deposit Product:

General Banking is very much correlated with banker customer relationship. To be customer one person
must have some sort of with the banker. Account Opening section establishes this relationship by opening
new account.

Deposit Product:

 Current Deposit Account

 Savings Deposit Account
 Fixed Deposit Account
 SBL Regular Income Program
 SBL Double Income Plus
 SBL Regular Deposit Program
 Short Term Deposit Account
 School Banking

21 | P a g e
4.2.1.3. Loan Product:

 Cash Credit (Hypo)

 Secured Over Draft (SOD)
 House Building Loan (HBL)
 Car
 Consumer
 Agri/Rural Credit
 LTR (Loan against Trust Receipt)

4.2.1.4. Card:

 Credit Card
 Gold Master
 Silver Master
 ATM Card

Credit Card:

Standard Bank Credit cards are widely accepted at department stores, shops, restaurants, hotels, airlines,
travel agencies, hospitals etc. Across the country whenever the master card logo is displayed

ATM Card:

Life is 24 hours business. No one knows when it needs money. Setting people free from tension is our
motto. Our ATM cards are designed to be the perfect match of your life. It sets you free from the
limitation of time. A happy life for 24 hours……….

22 | P a g e
4.3. Account Opening/Closing section:

4.3.1. Sections of General Banking:

During my practical orientation in Standard Bank, Dhanmondi Branch, it came to the

observation that General Banking section is divided with four areas. These are:

Sections of General Banking

23 | P a g e
4.3.2 Account Opening Section:

One of the vital section under General Banking is the Account Opening Section. Banker-
customer relationship begins through this section. Various tasks are performed in this section.
Such as:

 Opening of different types of account.

 Issue of check book
 Transfer and closing of account
 Enquiry of account.
 Checking The Signature of the client.

4.3.3. Various types of account offered by Standard Bank Limited:

Standard Bank Limited offers various types of account to its different types of customer. These
are as follows:

 Savings Bank (SB) Account

 Current Deposit (CD) Account
 Short Term Deposit (STD)
 Fixed Deposit Receipt (FOR) Account

Savings Bank (SB) Account:

This deposit is intended primarily for small-scale savers. This main objectives of this account, is
promotion of thrift. Saving account is meant for those who want to save a certain amount of their
income and earn interest on that for future needs. All features are more or less like that of CD
account expect for some restriction that is imposed by the bank. Number of withdrawals over a
period of time is limited. This account mainly opens on person name. SB account has the
following properties:

 Opening amount/ Initial Deposit Tk. 1000/-

 Service Charge (yearly) Tk. 345/-(exclude VAT)
 Minimum Balance Requirement Tk. 500/-
 Interest rate 4%
 One cannot withdraw money more than two time in a week.
 The withdrawing money is not to exceed 25% of the total balance.
 If customers withdraw money more than twice in a week than no interest is given to
customers on his account.

24 | P a g e
Current Deposit (CD) Account:

A current account is an account, which is generally opened by business people of their

convenience. A current account is a running and active account, which may be operated upon
any number of times during a working day. There is no restriction on the number & amount
withdrawals from current account. It does not earn any interest.

It has the following properties:

 Opening amount/ Initial Deposit Tk. 3000/-

 Service Charge (yearly) Tk. 1000/-(exclude VAT)
 Minimum Balance Requirement Tk. 1000/-

Current Account may be individual or joint or partnership or can be formed on any name. It
provides the following facilities:

 Overdraft facility,
 Other facilities like collection of checks transfer of money, rendering

Agency and general utility services.

Short Term Deposit (STD):

It is a deposit account open by customer where customer deposit money for a short period.
Customer can draw money after giving short notice. This account holder enjoys the same
facilities of CD account including receiving interest on his deposited money. Interest rate of STD
is less than the interest rate of SB account. STD account has the following properties:

 Opening amount/ Initial Deposit Tk. 5000/-

 Service Charge (yearly) Tk. 1000/-
 Minimum Balance Requirement Tk. 5000/-
 Interest rate 4%

Fixed Deposit Receipt (FOR) Account:

In this category are included the deposit with the bank for a fixed period which is specified at the
time of making the deposit. Such deposits are therefore called fixed deposits or term deposits. A
Fixed deposit is repayable on the expiry of a specified period, chosen by the depositor to suit his
purpose and to enable him to get back money us and when he needs it.

25 | P a g e
Fixed deposit has grown in importance and popularity in our country during recent years. When
a mature FDR is withdrawn, the principle amount along with the interest amount (deducting 10%
tax from the total) is paid to the client.

The rate of interest and the term of the Fixed Deposit Receipt (FDR) are given below:

Term 1 Month 3 Month 6 Month Year & Above

Interest rate 4.50% 6.50% 6.50% 6.25%

4.4. Various products and services offered by Standard Bank Ltd.:

Deposit product:

 SBL Regular Deposit Program (SRDP)

 SBL Regular Income Program (SRIP)
 SBL Double Income Plus (DI+)

SBL regular Deposit Program (SRDP):

If any monthly installment remains unpaid for 5 (Five) consecutive months, the account will be
closed automatically and the account will be settled as detailed below:

Relationship/Tenure Applied Interest

Less than 1 (one) year No interest
More than 1 year but less 3 years Savings rate
More than 3 years but less 5 years Matured value of 3 years and rest as per
prevailing interest rate on savings rate
More than 5 years but less 10 years Matured value of 5 years and rest as per
prevailing interest rate on savings rate

 If failure to pay monthly instalment on due dates he/she will pay penalty of Tk. 20/-
(Twenty) next subsequent instalment. Monthly instalment, Tenure and Maturity Value
will be as per following Schedule :

Revised Special Deposit product Schemes (2015):

 Standard Bank Limited (SBL) regular Deposit Program ( SRDP):

Monthly 3 years 5 years 7 years 10 years

Installment
300 12,375 22595 34700 57170
500 20625 37645 57820 95330

26 | P a g e
1000 41240 75245 115595 190570
2000 82470 150510 231165 381245
2500 103100 188145 289055 476850
5000 206200 376325 578300 954430
10000 412445 752815 1157080 1909785

 SBL Regular Income program (SRIP):

1. SBL Regular Income program is an income program, which helps you to earn a monthly fixed
amount on your deposits at SBL for period of 3 years.

2. Deposit of Tk.50,000/- (Fifty Thousand ) and multiples thereof but maximum limit of Tk.
25,00,000/-(Taka Twenty Five Lac) and Tk.5,00,000/-(Taka Fifty Lac) at a time and depositor
will earn 12 equal monthly profit.

Depositor can earn money due date as per following schedule:

Deposit 50,000 1,00,000 2,00,000 3,00,000 4,00,000 &

Amount above
Monthly 350 700 1400 2,100 2,800 &
Interest Above
Payable

SBL Double Income Plus (D+) Program:

 Deposit of Tk.10,000/- and multiples thereof but maximum limit of Tk. 20,00,000/- at a
time will be acceptable under the program.
 A specially designed receipt shell be issued for the deposit under the program.
 The instrument shell be issued for 7 years.
 At maturity after 7 years the depositor will be get double plus (DI+).
 If any depositor intends to withdraw his deposit before maturity, the following rules will
apply:
a) NO benefit including interest/profit shell be allowed for pre-mature encashment
within 1.
b) If the accounts/deposits are closed/en-cashed after 1 year of its opening interest shall
be allowed on the deposit at prevailing FDR interest rate.
 The instrument will be acceptable as collateral security against any investment subject to
registering lien with issuing Branch.
 In case of instrument get lost, the procedure for the issuance of a duplicate receipt will be
the same as applicable in case of loss of FDR.

27 | P a g e
Depositor can earn money due date as per following schedule:

Amount of deposit Maturity After 8 years Rate of interest

10,000 20,100 8.45%
20,000 40,200 8.45%
50,000 1,00,500 8.45%
1,00,000 2,01,000 8.45%

4.5. Documentation for Account Opening:

Certain types of documents are needed for special customers. These are:
Proprietorship Account:
Document requires for proprietorship business to open an account are:
 Introducers with account number.
 Valid trade license from City Corporation, Attested copy should be submitted.
 Tax Identification certificate.
 Nationality certificate from local authority.

Partnership Account:
Documents to be obtained for opening an account of partnership firm are:
 Trades license or board resolution.
 Deeds of partnership signed by all partners.
 Two copies photograph of each partner.
 Partnership resolution signed by all partners to open account.
 Resolution must indicate authorized person who operates the account.

Limited Company Account:

Documents required for Limited Company account to open an account are:
 Memorandum and Articles of Association of Company.
 Resolution of Board of Director.
 Certificate of incorporation.
 Certificate of commencement of business in case of public limited company.
 List of director.

28 | P a g e
  Two copies of passport size photograph of account operators,
 Others: name director s with signature, minutes of board of director.

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 Byelaw and Regulations/Constitution
 Copy of Government Approval (if registered).
Co-operative Society:
Following documents have to be obtained in case of the account of Cooperative 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, Cooperative societies.
Non-Govt. College/School/Madrasha/Muktab:
Following documents have to be obtained in case of the account of non-govt. College/school
/madrasha/muktab:
 Up-to-date list of Governing Body/Managing Committee.
 Copy of Resolution of the Governing Body/Managing Committee authorizing opening
and operation of the account duly certified by Gazetted Officer.
Trustee Board:
Following documents have to be obtained in case of the account of trustee board:
 Prior approval of the Head Office of SBL.
 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.
4.6. Account Section:
Account department is called the nerve Centre of the Bank. In Banking business, transaction are
done every day and these transactions are to be recorded and systematically as the banks deal
with the depositors' money. Improper recording of transaction will lead the to the mismatch in the
debit side and credit side. To avoid these mismatches, the Banks provides the separate department;

29 | P a g e
whose function is to check the mistakes in passing voucher or wrong entries or fraud or forgery. This
department is called as Account Department

4.7. Cash Section:

Cash section is an important section where cash transactions are made. Cash sections demonstrate
liquidity strength of a bank. It is also sensitive as it deals with liquid money. Maximum concentra-
tion is given while working on this section. Tense situation prevails if there is any imbalance in the
cash account. There are various 's systems maintain by cash officer that is under:

 Vault
 Cash Payment
 Cash Receive
 Evening banking.
Vault:
The cash department is the riskiest department of the bank. This is the section where tight security is
required to avoid any accident. There is a limit to be amount of cash that each counter can carry: car-
rying of excess cash is avoided for safety reasons. If there is any surplus in the cash then the excess
amount should sent to the Bangladesh Bank or if there is any shortage in the cash then the shortage
amount should be borrowed by the bank from Bangladesh Bank or from the Head Office or Other
Banks,

Cash Receipt:

When clients deposit cash in the bank, the bank officer should follow the following common precau-
tion:

 Check and count the received cash.

 Make sure that the amount in word and number in the deposit slip are same.
 Check the account title and the number.
 Both the deposit slip is in order.
 Depositor's signature is in the slip.
 Receive seal in the slip is a must.
 Write the domination of the currency at the back of the pay in slip or the credit voucher and affix
stamp in the slip/voucher,
 Enter particulars of in slip/credit voucher in the receiving cash officer book.
 At least, send the pay in slip/voucher to the deposit department or to the respective department.
 Deposit slip must be signed by the respective officer.

30 | P a g e
  Carbon copy of the deposit slip must be handover to the client with proper seal and signature.

Cash Payment:

Cheques, demand drafts, pay orders, pay slips and debit cash vouchers etc. are received from various
departments for payment of cash to customers/payees. Prior 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:

 The branch name in the cheque.

 The date in the cheque is very crucial. Cheques are normally valid for six months and pre-
dated cheques are asked to present after the date given.

 .Tk in words and figure of the cheque is same.

 Balance in the account is available.
 The specimen card signature and signature in the cheque 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 against a
cheque.

4.7.1. Books maintained by cash department:

Vault Register: This is the book where amount of cash available in the branch is maintained. That is, the
amount in the vault register book.

Cash Receive Register: This register keeps record of all incoming cash.

Cash Payment Register: Similar to the cash register book, this books keeps tracks of all outgoing cash,
that is all payments.

Cash Position Register: This is the book where cash balance is recorded by counting the notes and
coins that are physically available. The balance in this book is compare with the vault register,

which should be the same. In case there is an error, than the figures would not match but if no
discrepancy is found then anything is to be worried about.

Other Registers:

 Money Remittance Register

31 | P a g e
•

 Prize Bond Register

 Stamp in hand Register

Cash Section has two Automatic Machine:

 Money Counting Machine: With the help of this machine officer can easily count the
money. It save time and also provide accuracy.
 Money Detector Machine: This machine helps officer to find out the fake money.

4.8. Remittance Section:

The major function of commercial Banks is mobilization of fund. Other than this, banks provide
supplementary services to its clients. Clients need to remit money from one place to another for
their business or other purposes. Banks fulfill this need of customers by means of remittance
service. Money can he remitted domestically or internationally, which known as local remittance
and foreign remittance.

There are four ways of transferring fund domestically. The modes of transferring funds are:

 Pay-Order (PO).
 Demand Draft" (DD).
 Telegraphic Transfer (TT).
 Mail Transfer (MT).

4.9. Payment Order / Pay Order (P.0):

This is an instrument issued by the branch of a bank for enabling the Customer/Purchaser to pay
certain amount of money to the order of a certain person/firm/organization/office within the
same clearing house area of the pay order-issuing branch.

Characteristics of P.O:

 The issuing branch and paying branch are same.

 Application for payment within the clearing house area of the issuing branch.
 This may be open or can be crossed.

Procedure of Issuing Payment Order:

Obtain P.0, application from duly filled in and signed by the

Purchaser/application.

Receive the amount in cash/transfer with commission amount.

32 | P a g e
Issue Pay Order.

Enter in Pay Order register.

Table showing the Charge for Pay Order:

PAY ORDER AMOUNT TAKA COMMISSION AND VAT (TK)

1-10,000 25+4=29
10,000-1,00,000 50+8=58
1,00,000-5,00,000 100+15=115
5,00,000-ABOVE 150+23=173

4.10. Demand Draft (D.D)

This is an instrument through which customer's money is remitted to another per -

son/firm/organization in outside the clearinghouse area from a branch of one bank to an
outstation branch of the same bank or to a branch of another bank (with prior arrangement
between that bank with the issuing branch): This is an order instrument in which the issuing
branch gives instruction to the payee/drawer branch to pay certain amount of money to
the order of certain person/firm/organization. Commission, vat and postage are charged for
issuing DD.

Example: - To transfer money from Chittagong to Dhaka

Procedure for issuing D.D.:

 Obtain D.D. application from duly filled in and signed by the purchaser/application.
 Receive the amount in cash/transfer with prescribed commission & postage
amount Issue the D.D. duly in and signed by the authorized officer.

Insert test number (where applicable)

Enter in the D.D. issue register.

Issue advices to the payee branch.

Procedure for payment of D.D.:

Examine the D.D. by verifying the signature, test number, serial number etc. Enter
the D.D. payable register.

33 | P a g e
Verify with the IBCA number. Pass necessary vouchers.

Charge for Demand Draft:

 Minimum amount for a DD is TK. 25.

 Commission is the 0.10% of the DD amount.
 Vat is TK. 15% on the commission amount.

4.11. Clearing & Bills Section:

Clearing and bills section is an important section of General Banking. This is the section through
which branch has to clear it's inter branch and inter bank transaction. Customers do pay and
receive the collecting branch the system is known as IBC.

Clearing:

As far as safety is concerned, customers get crossed cheque for the transaction. As we know crossed
cheque cannot be encased from the cash counter and it has to be collected through banking channel
i.e. clearing. For example, a client of SBL Bank received" a cheque of another bank, which is
located within the clearing range; deposit the cheque in his account at SBL Bank. Now SBL Bank
will credit his account and collected it. Though the amount is credited in the customer's account
but he will not get the money until he cheque is honored.

Types of Clearing:

1. Outward Clearing: Outward clearing means when a particular branch receives instrument drawn
on the other bank within the clearing zone and those instruments for collection through the clearing
arrangement is considered as outward clearing for that particular branch.

2. Inward Clearing: When a particular branch receives instruments which on them and sent by other
member bank for collections are treated as inward clearing.

Clearing house

Clearing House is a place in the Central Bank where different banks come to settle their interrelated
liabilities.

Clearing House System

34 | P a g e
 The mechanism of working at a Clearing House in general is us follows:

 Every Rank of the locality, which is a member of (he clearinghouse, prepares Bank-wish list
of cheques after receive from customers and drawn on different Banks of the locality.
 An officer, in charge of clearinghouse, goes to the clearinghouse in the morning with the
cheques and their list. He delivers the cheques to the officials of the respective banks.
Similarly, he also receives the cheques drawn on his Bank from the officials of the other
banks.
 The official of each bank computerizes the final balance, payable or receivable by his Bank
alter taking into account the various amount of receipt and payment.
 The official return of their respective Dank to meet again in the afternoon to return any
dishonored instruments to the officials of the respective Banks.
 The final settlement is effective by the supervisor of the clearinghouse by debiting or
crediting, as the case may be, the accounts of the respective Banks as maintained with the
clearinghouse.

4.12.Outward Bills for Collection (OBC):

Customers deposit cheque, drafts etc. for collection, attaching their deposit slip. Instruments
within the range of clearing are collected through local clearinghouse. But the other, which is
outside the .clearing range, is collected through OBC. Then they will forward the bill to that
particular branch. OBC number given the on the forwarding letter.

Charge for OBC:

Amount Minimum Commission Postage Vat

Amount Charge

Tk.1-5,00,000 TK. 100 0.10% 50 15% on Commission

s,
TK. 5,00,000" Tk 600 0.10% 100
Above

4.13. Inward Bills for Collection (IBC):

In this case bank will work as an agent of the collection bank. The Bench receives a forwarding
letter and the bill. Next steps are:

 Entry in the IBC register, an IBC number given.

35 | P a g e
 The instrument is sent to clearing for collection.
 An IBC is dispatched in this regard
 If dishonored in this case the instrument is returned to the collecting branch along with return
Memo indicating the cause of dishonored.

4.14. Mail Receive & Dispatch Section:

Banking is the business of correspondence. Lot of mail comes to the bank and dispatch from the
branch daily. Lot of my document causes much loss for bank. That is why bank has to record all
mail received and dispatched through the bank.

Mail receiving:

All mail comes to the bank recorded in this desk. For this reason a register book maintained called
inward mail register. A number is given on receiving mail and records particulars of document in the
register book.

Mail Dispatching:

Before dispatching any mail from the bank it must be record in outward mail register. A number is
given on the mail. Destinations, date of dispatch are recorded in that register book.

36 | P a g e
Chapter-5
Analysis

37 | P a g e
5.1. Analysis of General Banking data with selected banks

5.2. Banks Wise Deposit on 2015:

Particular Amount (Tk in Million)

Standard Bank Limited 106932
Mercantile Bank Limited 140475.85
Jamuna Bank Limited 97485.61

Deposit on 2015
180000
160000
140000 154866.52

120000
100000 114635.13
106932
80000 Deposit on 2015
60000
40000
20000
0
Standard Bank Limited Mercantile Bank Jamuna BAnk
Limited

Interpretation:

Above graph shows that total deposit amount in the year 2015 of SBL was lower than Mercantile
Bank Limited & Jamuna Bank Ltd. Because global interest rate of the economy is in down
trend so SBL loss its interest to collect high cost deposit.

38 | P a g e
 5.3. Initial Deposit to open Saving & Current Account:

Particular Standard Bank Limited Mercantile Bank Limited Jamuna Bank Limited
Saving Account 1000 2500 1000
Current Account 3000 5000 5000

Initial Deposit to open Account

6000

5000
5000 5000
4000

3000 2500 Saving

3000
Current
2000
1000 1000
1000

0
Standard Bank Mercantile Bank Jamuna Bank
Limited Limited Limited

Interpretation:

The initial deposit requirement on saving account of SBL is respectively lower than MBL but
same as Jamuna Bank Ltd (JBL). Saving account holder provide BDT 1000 in SBL & JBL but
BDT 2500 in MBL. Initial deposit on current account is similar with the MBL and JBL. Current
account holder provides BDT 3000 in SBL but BDT 5000 in MBL and JBL.

39 | P a g e
5.4. Maintenance charge for saving and current account half yearly:

Particular Standard Bank Limited Mercantile Bank Limited Jamuna Bank Limited
Saving Account BDT 345 BDT 345 BDT 345
Current Account BDT 525 BDT 500 BDT 500

Maintenance charge for saving and current

account
600
525
500 500
500

400 345 345 345

300 Saving Account

Current Account
200

100

0
Standard Bank Limited Mercantile Bank Limited Jamuna Bank Limited

Interpretation:

The Maintenance charge for Current Ac count of SBL is respectively higher than MBL and JBL.
And the maintenance charge for saving account of SBL also same with the MBL and JBL. The maintenance
charge of SBL, MBL and JBL are same BDT 345. And current account charge respectively BDT 525 in.
SBL, BDT 500 in MBL and BDT 500 in JBL.

40 | P a g e
5.5. Account Closing Charge:

Particular Standard Bank Limited Mercantile Bank Limited Jamuna Bank Limited
Saving Account BDT 200 BDT 300 BDT 575
Current Account BDT 200 BDT 300 BDT 575

Account Closing Charge

700

600 575 575

500

400
Saving Account
300 300
300 Current Account
200 200
200

100

0
Standard Bank Limited Mercantile Bank Limited Jamuna Bank Limited

Interpretation:

The saving account closing charge of SBL is lower than MBL and JBL. Current account charge of
SBL is also lower than MBL and JBL. Saving account closing charge are respectively BDT 200 in
SBL, BDT 300 in MBL and BDT 575 in JBL. Current account closing charges are respectively
BDT 200 in SBL, BDT 300 in MBL and BDT 575 in JBL.

41 | P a g e
5.6.Interest Rate for Saving Account:

Particular Standard Bank Limited Mercantile Bank Limited Jamuna Bank Limited
Saving Account 4% 5% 4%

Saving Account
6%

5%
5%
4%
4% 4%
Standard Bank Limited
3%
Mercantile Bank Limited
2% Jamuna Bank Limited

1%

0%
Standard Bank Mercantile Bank Jamuna Bank Limited
Limited Limited

Interpretation:

We can see the above diagram the interest rate of SBL is 4% same with the JBL. But the both
saving rate is lower than the MBL is 5%.

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5.7. Pay Order charge:

Pay order Amount taka Commission and Vat (tk)

1-10,000 25+4=29
10,000-1,00,000 50+8=58
1,00,000-5,00,000 100+15=115
5,00,000-Above 150+23=173
Table: Pay order charge of Standard Bank Ltd.

Pay order Amount taka Commission and Vat (tk)

1-10,000 25+4=29
10,000-1,00,000 50+8=58
1,00,000-5,00,000 100+15=115
5,00,000-Above 150+23=173
Table: Pay order charge of Mercantile Bank Ltd.

Pay order Amount taka Commission and Vat (tk)

1-10,000 15+3=18
10,000-1,00,000 25+4=29
1,00,000-5,00,000 40+6=46
5,00,000-Above 50+8=58
Table: Pay order charge of Jamuna Bank Limited

Interpretation:

On the table we see that, the pay order rate of SBL is same with the MBL. But JBL pay order rate is
lower than both of the bank. From the above data we see that Pay Order Charge of SBL is higher than
that of JBL

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5.8. Number of Branches:

Particular Standard Bank Limited Mercantile Bank Limited Jamuna Bank Limited
Number of Branch 105 109 102

No. of Branch
110

108 109

106

104 105
No. of Branch

102
102
100

98
Standard Bank Limited Mercantile Bank Limited Jamuna Bank Limited

Interpretation:

The above graph we that, the number of branch of SBL is quite lower than the MBL but higher than JBL.
The total branches of SBL are 105, total branches of MBL are 109 and total branches of JBL are 102.

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5.9. Analysis on the basis of customer response of selected banks:

Questionnaire analysis:

In the survey, it is essential to analyze customer's perception regarding the General Banking of Standard
Bank Ltd. Different types of respondents are used as sample element. The survey report is shown below
with the graphical presentation in percentage basis.

5.10. Satisfied with the Online Services of SBL:

Satisfied with the Online Service of SBL

0% 0%

5%

20% Agree
Strongly agree
Neutral
Disagree
Strongly Disagree
75%

Interpretation:

The graph shows that 75% respondents agreed with the above statement, 5% respondents in neutral
position, 20% are strongly agreed but 0% dissatisfied and 0% respondents are strongly disagreed about
online service of SBL. So it can be said that most of the respondents are satisfied on the online banking
service of SBL.

So customers are satisfied with SBL online services.

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 5.11. Maintenance charge of SBL is flexible:

Maintenance charge of SBL is flexible

0% 0%

10%

10% Agree
Strongly agree
Neutral
Disagree
Strongly Disagree
80%

Interpretation:

The graph shows that 80% respondents agreed, 10% respondents are strongly satisfied, 10%
respondents are in neutral position, 0% respondents are dissatisfied and 0% of them are strongly
dissatisfied about the maintenance charge of SBL.

So the maintenance charge of SBL is flexible for customer.

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5.12. Account opening process is easy in SBL:

Account opening process is easy in SBL

0% 0%

10%

Agree
Strongly agree
25%
Neutral
Disagree
65% Strongly disagree

Interpretation:
Above graph shows that 65% respondents agreed that account opening process is easy, 10% are
in neutral position, 25% are strongly agree, 0% are disagreed and 0% are strongly dissatisfied
about the account opening process of SBL.

So it can be said that most of the respondents satisfied about that account opening process.

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5.13. General Banking Operations are well structured in SBL:

General Banking Operations are well

structured in SBL:
0% 0%

20%
Agree
Strongly agree
Neutral
15%
Disagree
65% Strongly disagree

Interpretation:

Above graph shows that 65% respondents are agreed that the General Banking Operations are
well structured in SBL, 20% are in neutral position, 15% are strongly agree, 0% are disagreed
and 0% are strongly dissatisfied.

So it can be said that most of the respondents satisfied about the General Banking Operation
Structure in SBL.

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 5.14. Pay Order issuance procedures are acceptable in SBL:

Pay Order issuance procedures are

acceptable in SBL:
0%

10%

Agree
40% Strongly agree
25%
Neutral
Disagree
Strongly disagree

25%

Interpretation:
The graph shows 40% respondents are agreed with the above statement, 25% in strongly agreed
position. 25% respondents are in neutral position, 10% are disagreed and 0% is strongly
dissatisfied about pay order issuance process of SBL.

So it indicates that pay order issuance process is not complex in SBL.

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5.15. New Cheque Book Issuance time is acceptable in SBL:

New Cheque Book Issuance time is

acceptable in SBL

20% 20%
Agree
Strongly agree
5%
Neutral
10% Disagree
Strongly disagree
45%

Interpretation:

For issuing new cheque book SBL takes almost 7 days. Above graph shows that 45% respondents
are not satisfied with new cheque book issuance time, 20% are strongly dissatisfied, 10% are in
neutral position. On the other hand only 20% are satisfied & 5% are strongly satisfied.

So SBL should reduce cheque book issuance time.

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5.16. Waiting time is longer to get service from SBL:

Waiting time is longer to get service from

SBL:

15%
25%
Agree
10% Strongly agree
Neutral
Disagree
20%
Strongly disagree
30%

Interpretation:

Above the graph shows that 15% agreed with the above statement, 20% are neutral position and
10% are strongly agreed. This graph also shows that 30% are disagreed and 25% are strongly
disagreed. It can be said that most of the respondent are disagreed with this statement which
indicates that customer get good service from SBL.

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5.17. ATM service of SBL is good:

ATM service of SBL is good

0%
10%
20%

Agree
Strongly agree
25%
Neutral
Disagree
Strongly disagree

45%

Interpretation:

The graph shows that 10% of respondents agreed with the above statement and 25% are in
neutral position with this statement, 0% are strongly agreed, 45% are disagreed & 20% are
strongly disagreed with this statement. So it indicates that ATM service of SBL is not so well
due to its unavailability of ATM Booth.

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5.18. Satisfied with the Service Charge of SBL:

Satisfied with the Service Charge of SBL

5%

15%
Agree
40%
Strongly agree
Neutral
15%
Disagree
Strongly disagree

25%

Interpretation:

From the view of client, the graph shows that 40% of respondents agreed with this statement.
25% are strongly agreed and 15% are in neutral position. 15% are disagreed and 5% are strongly
thinking that service charge of SBL is not flexible. So the respondent's think that the service
charges of SBL is flexible.

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5.19. Found Freedom in banking activities:

Found Freedom in banking activities

5%
5%

10% Agree
Strongly agree
Neutral

20% Disagree
60%
Strongly disagree

Interpretation:

Above the graph shows that 60% agreed, 10% are neutral position and 20% are strongly agreed.
This graph also shows that 5% are disagreed and 5% are strongly disagreed. It can be said that
most of the respondents are agreed with this statement.

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Chapter-6
Findings, Limitations, Recommendation &
Conclusion

55 | P a g e
6.l. Findings:

After the collection and analysis of data, I have got some findings. These findings are completely
from my personal point of view. Those are given below:

SBL has already achieved a high growth rate accompanied by an impressive profit growth in
2015. The number of deposit and investment are also increasing rapidly.

SBL has an interactive corporate culture. The working environment is very friendly, interactive
and informal. And there are no hidden barriers or boundaries while communication between the
superior and the subordinate. This corporate culture provides as a great motivation factor to the
employees.

SBL has already established a favorable reputation in the banking industry of the country. It is
one of the leading private sector commercial banks in Bangladesh. The bank has already shown a
tremendous growth in profits and deposits sector.

From the client view

 SBL gives the customers much more facilities comparing to other two banks in the case
of current account maintenance charge. And SBL current account closing charge is also
lower than other two banks.
 SBL provides a good online banking service to its customers.
 Most of the clients are satisfied with the pay order issuance process and maintenance
charge of their account. .
 Most of the clients are dissatisfied with the cheque book issuance time.
 Most of the clients are satisfied to get service from SBL.
 Maximum clients are dissatisfied with the ATM service facilities of SBL.
 Account Opening Procedure is easy but introducer is one of the problems to open an
account. It is general problem to all commercial bank
 They face troubles with those clients who have not any knowledge in banking
transactions and banking rules.

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6.2. Limitation

 SBL has insufficiencies of Authorized Dealer Branch in respect of total foreign exchange
business. As a result it total foreign exchange business is very small in respect of total market.

 SBL Bank’s numbers of customers are also very small in compared to other banks in the market.
This is because of small number of branches.

 The number of branches is not sufficient to cover the country most.

6.3. Recommendations:

Recommendations are:

 SBL should decrease the initial deposit amount of current account for better customer
satisfaction.
 SBL should give higher profit on savings account to attract more customers.
 Requisition time for cheque book issue must be reduced for better customer satisfaction.
 Service providing time to the customers should be much more improved because it
hampers the bank reputation.
 SBL should increase its number of ATM booth all over the country. And also easier
ATM services facilities should be established.
 SBL should increase its number of branch all over the country.

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6.3. Conclusion

Now a day banking organizations are one of most vital parts of an economy. Now banks provide
various services for individual, different firms, companies even for cultivation. Banks offer a
great accumulation of loans for personal and industrial purposes. SBL is running successfully
and for its good deposit performance in Banking Sector. But it should improve its some sectors
like customer service, ATM facilities, easy cheque issuance facilities to get more customer
attraction and preference. It is necessary so that the customers and people can rely on this bank
more than the others like it.

Lots of new commercial bank has been established in last few years and these banks have made
this banking sector very competitive. So, banks have to organize their operation and do their
operations according to the need of the market. Banking sectors no more depend on a traditional
method of banking. In this competitive world this sector has trenched its wings wide enough to
cover any kind of financial services anywhere in this world. The major task for banks, to survive
in this competitive environment is by managing its assets and liabilities in an efficient way.

The working environment of Dhanmondi Branch of SBL is so friendly. Here, each and every
officer is so much co-operative and helpful. I am proud to be a member of SBL, Dhanmondi
Branch family.

Banks always contribute towards the economic development of a country. Compared with other
Banks SBL is contributing more by investing most of its funds in fruitful projects leading to
increase in production of the country. It is obvious that right channel of Banking establish a
successful network over the country and increases resources; will be able to play a considerable
role in the portfolio of development in developing country like ours.

SBL is playing its leading role in socio-economic development of the country. Since inception
SBL has been rendering its Banking services with the needs of the nation to cope with the
demands of people in the county.

So in conclusion it can be said that every organization has its positive as well as negatives and
incase of Standard Bank Limited existence of the later one is less than the earlier one and as the
management is determined to reach the pick of success it seems that in near future the negatives
will be eliminated. Seventeen years is a very short span of time and the organization, which can
establish itself as one of the most reputed private commercial Bank in the country within this
short period deserves special credit and with their able leaders Standard Bank Limited will reach
the highest level of success very shortly. I wish the bank all success prosperity in their field.

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Chapter-7
Reference & Appendix

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7. 1.References:

Prospectors:
 Annual Report of Standard Bank Ltd. At 2015
 Annual Report of Mercantile Bank Ltd. At 2015
 Annual Report of Jamuna Bank Ltd. At 2014

Websites:
 www.standardbankbd.com
 www.mblbd.com
 www.jamunabankbd.com

Books:
 Book-A text Book on Bank Management (By A.R.Khan)
 Handbook-"Banking and Insurance Policy "by Bangladesh Bank.
 “Practical Banking Advances” Bedi, H.L, UBS Publishers Distribution Ltd. New Delhi.
 “Commercial Banking” Edward W. Reed and Edward K Gill, Practice Hall, New Jercy,
1989.
 “The Economics of Money Banking & Financial Market” Frederic S. Miskhin, Sixth
Edition, 2003, Boston.
 “A Text Book on Foreign Exchange” Chowdhury, L.R., Fair Corporation, Dhaka.
 5. “Research Methodology” C.R. Kotheri, Second Edition, 2003-2004, Wishwa
Prakashan, Calcutta, India.

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7.2. Appendix:
(For study intention only)
This is the formal questionnaire developed to collect information from you for preparing an Internship
Report regarding the topic General Banking activities of Standard Bank Ltd. In this regard, we are
expecting authentic support from you as a valuable respondent. We are promising that your given
information will be kept secret and not will be misused.
Questionnaire survey:
[Personal details of the respondent]

Section-A

1. Name :
2. Age :
3. Gender : Male Female
4. Occupation : Business Service Student Others

Section-B

What type of account do you have? How long have you been a customer of SBL?
a. Saving a. 0-3 years
b. Current b. 3-5 years
c. DPS c. 5-10 years
d. Others d. Above 10 years

Put a tick ( √) mark that best reflect your opinion:

Sl.No Questions Strongly Disagree Neutral Agree Strongly

Disagree Agree
1 2 3 4 5
1 Satisfied with the online service of SBL
2 Maintenance charge of SBL is flexible
3 It is easy to open account in SBL
4 General Banking operations are well
structured in SBL
5 Pay order issuance procedures are
acceptable in SBL
6 New Cheque Book issuance time is
acceptable in SBL
7 Waiting time to get service from SBL
Is Longer
8 ATM services of SBL is good
9 Are you satisfied with the service charge
of SBL?
10 Are you found freedom in your banking
activities?

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