Retail Banking Products and Services of Jamuna Bank Ltd (NOTED: ARTIFICIAL)


The Financial system of Bangladesh consists of Bangladesh Bank (BB) as the central bank, 4 nationalized commercial banks (NCB), 5 government owned specialized banks, 30 domestic private banks, 10 foreign banks and 28 non-bank financial institutions. The financial system also embraces insurance companies, stock exchange and co-operative banks. 

Due to the globalization and more expansion international trade, Management plays the major role for the economic development. The development of a modern economy would not have been possible without the use of money. Bank is an important and essential financial institution for the necessity of the use of money and the protection of the money.

At the arena of globalization innovation, banking business has become competitive. To cope up with this, bankers should have professional knowledge as well as technical basic. As a BBA student, major in Marketing, I think, Bank is the most appropriate field to gather the practical, experience. With a view to supply skilled professionals in banking area. Private university has undertaken the Internship training program for its BBA students. As a partial and essential requirement of the BBA program, Internship supervisor placed me to the The Jamuna Bank Limited., Gulshan Branch for having practical exposure in Banking for three months internship program. 

1.1 Background of the study

After my completion of eleven semesters in B.B.A (Bachelors of Business Administration) Major in Marketing from WUB program I have been placed in Jamuna Bank Limited for my internship program which is a graduation requirement for the students. The primary goal of internship is to provide the job revelation and an opportunity to implement theoretical knowledge in real life situation with the changing every of banking industry. I have decided to prepare my report on Retail Banking Products and Services of Jamuna Bank Ltd. This report has been prepared on my practical experiences from June 18, 2009 to September 18, 2009 in Jamuna Bank Limited, Gulshan Branch, Dhaka.

1.2 Objectives of the study

Broad Objective: The main objective of the study is to explore the requirement of private banking business in Bangladesh’s economy mainly retail banking products and services of JBL. So, as a student of this program, we must have to know what is happening in practice. So one may feel difficulty if he does not know what is happening in bank.

Specific Objectives:
*                  To apply theoretical knowledge in the practical field.
*                  To know the customer service of banking sector.
*                  To present an overview of JBL.
*                  To know about the retail banking products and services of JBL.
*                  To discuss the overall retail banking activities of JBL.
*                  To do observe the practice of modern technology in banking sector.
*                  To be acquainted with how bank perform General Banking practically.
*                  To present current observation and unique aspects of the Bank  
     
1.3 Scope of the study

Banking Sector is a large and difficult area. A bank has different products, different service and different customers.

However, this study is done with reference to the operation of Gulshan branch of Jamuna Bank Ltd. For conducting this study an overall knowledge of the total banking system will be necessary because the banking departments are linked with each other due to some partial proceeding. The scope of the organization part covers the organization structure, background, objective, function, departmentalization and business performance of JBL as a whole. The main part covers the operation scenario of a branch of JBL. This refers how the bank helps the customer in general banking and foreign exchange banking. It also covers loan and advances facilities of JBL, credit appraisal system, and activities of credit department.
1.4 Methodology of the study

Methodology refers to process by which report’s data are collected, data interpreted and recommendations are made. In other word, it is a process by which total report is planned, organized and illustrated. The methodology of the report is stated below, which was appropriately exercised in achieving the above stated objective. Though it is an internship report, so its methodology based on different factors. The sources of data are as below:

Data Collection Method:

Both primary and secondary data have been collected.
I have gathered primary data by personal interview of the Executives of Jamuna Bank Limited and from my three months working experience. I collected secondary information from the annual report and web page of Jamuna Bank Limited.

Primary sources of data:

*                  Face to face conversation with the bank officers & staffs.
*                  Conversation with the clients.
*                  Different' manuals of JBL Bank Limited.
*                  Different circulars of JBL Bank Limited.

Secondary sources of data:

*                  Procedure manual published by the JBL Bank Ltd.
*                  Files and documents of the branch.
*                  Annual report of JBL Bank Limited, 2008.
*                  Different papers of JBL Bank.
*                  Unpublished data.
*                  Different text books.

1.5 Limitations of the study

The present study was not out of limitations. But as an intern it was a great opportunity for me to know the banking activities of Bangladesh specially JBL Bank. Some restraints are disclosed below:

  • Without their own employee it is very much difficult to collect relevant data.
  • Only 12 weeks were not sufficient to visit all the desks of the branch.
  • In the branch offices non-availability of the most recent statistical data.
  • Bankers don’t want to disclose all the information I need.
  • Large-scale research was not possible due to time constraints.

·        Another limitation was that data gathered could not be verified for accuracy.

  • Avoidance of management for providing information.


CHAPTER: TWO
Profile of the Jamuna Bank Limited


 

2.0 Jamuna Bank Limited
Jamuna Bank Limited (JBL) is a Banking Company registered under the Companies Act, 1994 with its Head Office at Printers Building (2nd  & 8th Floor), 5, Raja Avenue, Dhaka-1000. The Bank started its operation from 3rd June 2001.

Jamuna Bank Limited is a highly capitalized new generation Bank with an Authorized Capital and Paid-up Capital of Tk.1600.00 million and Tk.390.00 million respectively. The Paid-up Capital has been raised to 429.00 million and the total equity of the bank stands at 725.00 million as on June 30, 2008.  Currently the Bank has 43 (Forty Three) branches 18 in Dhaka, 8 in Chittagong, 2 in Gazipur, 3 in Sylhet, 1 in Bogra, 2 in Naogaon, 1 in Munshigang, 1 in Shirajganj, 1 in Rajshahi, 1 in Narayanganj, 1 in Comilla, 1 in Kushtia, 1 in Noakhali, 1 in Moulvibazar and 1 in Dinajpur  (including Nine Rural Branches).

The Bank undertakes all types of banking transactions to support the development of trade and commerce of the country. JBL's services are also available for the entrepreneurs to set up new ventures and BMRE of industrial units.
 
Jamuna Bank Ltd., the only Bengali named new generation private commercial bank was established by a group of winning local entrepreneurs conceiving an idea of creating a model banking institution with different outlook to offer the valued customers, a comprehensive range of financial services and innovative products for sustainable mutual growth and prosperity. The sponsors are reputed personalities in the filed of trade, commerce and industries. 

The Bank is being managed and operated by a group of highly educated and professional team with diversified experience in finance and banking.  The Management of the bank constantly focuses on understanding and anticipating customer’s needs. The scenario of banking business is changing day by day, so the bank's responsibility is to device strategy and new products to cope with the changing environment. Jamuna Bank Ltd. has already achieved tremendous progress within only two years. The bank has already ranked as one of the quality service providers & is known for its reputation. Jamuna Bank offers different types of Corporate and Personal Banking Services involving all segments of the society within the purview of rules and regulations laid down by the Central Bank and other regulatory authorities. The Board of Director of JBL consists of 14 members. The boards conducted with chairman, Directors, Sponsors and Company secretary division individuals.

2.1 Vision
Jamuna Bank wants to become a leading banking institution and to play a pivotal role in the development of the country.
2.2 Mission Statement
The Bank is committed to satisfying diverse needs of its customers through an array of products at a competitive price by using appropriate technology and providing timely service so that a sustainable growth, reasonable return and contribution to the development of the country can be ensured with a motivated and professional work-force.
2.3 Goal of JBL
The main strategic goal of the Jamuna Bank ltd is to build-up the socioeconomic growth of the country by providing industrial sectors and assistance to the industrial concerned. The main Goal is:
  • Develop the industrial sector of the country.
  • To provides loans industrial sector both public and private in the country.
  • To eliminate poverty through creating employment and opportunity.
  • To provide loan to the economically, financially feasible projects.
  • To provide loans- Agro-based and agro- processing industry, Textile industry, Pharmaceuticals, leather good etc.
  • To provide fund for profit earning purpose in various fields of small and medium scale of trading, large industry and corporate sectors.
  • To introduce with the modern technology like the developed country.

2.4 Objectives of JBL

*                  To establish relationship banking and improve service quality through development of Strategic Marketing Plans.
*                  To remain one of the best banks in Bangladesh in terms of profitability and assets quality.
*                  To introduce fully automated systems through integration of information technology.
*                  To ensure an adequate rate of return on investment
*                  To keep risk position at an acceptable range (including any off balance sheet risk)
*                  To maintain adequate liquidity to meet maturing obligations and commitments.
*                  To maintain a healthy growth of business with desired image.
*                  To maintain adequate control systems and transparency in procedures.
*                  To develop and retain a quality work-force through an effective human Resources Management System.
*                  To ensure optimum utilization of all available resources
*                  To pursue an effective system of management by ensuring compliance to ethical norms, transparency and accountability at all levels.
2.5 Corporate Slogan
Your Partner For Growth
2.6 Management
JBL is managed by highly professional people. The present Managing Director of the bank is a forward looking senior banker having decades of experience and multi discipline knowledge to his credit both at home and abroad. He is supported by an educated and skilled professional team with diversified experience in finance and banking. The Management of the bank constantly focuses on the understanding and anticipating customer’s needs and offer solution thereof. Jamuna Bank LTD has already achieved tremendous progress within a short period period of its operation. The bank is already ranked as one of the quality service providers & known for its reputation.

CHAPTER: THREE
General Banking, Foreign Exchange Banking,
Loans and Advances Division of the Jamuna Bank Ltd
3.0 General Banking

All business concerns to earn a profit through selling either a product or service. A bank does not produce any tangible product to sell but does offer a variety of financial services to its customers. General banking is the starting point of all the banking operations. It is the development, which provides day to day services to the customers. Everyday it receives deposits from the customers and meets their demand for cash by honoring cheques. It opens new accounts, remit funds, issue bank drafts and pay orders etc. Since bank is confined to provide the service everyday, general banking is also known as “Retail Banking”. The JBL (Gulshan Branch) offers various types of general banking components. They are very essential tools for the bank to serve the customers. To attract new customers the bank has to launch new components or re-furnished their existing products.

This department is divided into various sections namely as follows:

3.1 Deposit Section.
3.1.1 Types of Deposit account:
There are several types of deposit accounts. Each account has different characteristics and every account has some specific purpose to serve. JBL offers the following key   Personal Banking Services.
A.          Savings Account.
B.           Current Deposit Account.
C.           Foreign Currency Account.
D.          Short Term Deposit Account (STD).
3.1.2 New Schemes:
Schemes are the most important sources of enhancing banks deposit. Mainly bank is the lender of money, which is deposited by various types of depositor. These schemes are different in nature and types and also in interest rates. These deposits give the customers to deposit the idle money in profit earning schemes and also provide the security.  Jamuna Bank limited as third generation modern and technology based modern commercial bank offers various types of customer’s friendly deposit schemes to its valued customers. These schemes are highly profit earning to the depositors and also unique in security.
A.  Fixed Deposit Receipt (FDR).
B.  Lakhpati Deposit Scheme.
C.  Millionaire Deposit Scheme.
D.  Monthly Benefit Scheme (MBS).
3.2 Foreign Exchange.

Today's world market is globalization.  For these reason import and export plays vital role for the control of economy of any country. Although high import rate is always discouraged but we can not escape it. No country is self-dependent thus every country has to depend on other country due to geographical, environmental and some other reasons. As Bangladesh is a developing country; she has to import so many things for the development of its economic structure and to meet up basic needs. Again Bangladesh is not an export oriented country but every year it exports so many things and earn a lot of foreign currency. Day by day it increases its export volume and helps its economy. Foreign Exchange means the rate of exchange at which one currency is changed against another. It means foreign currency and includes all departs and balances payable in foreign currencies as well as drafts, travelers checks letter of credit, bill of exchange drawn in local currency but payable in foreign currency. Foreign Exchange Regulation Act 47 Sec 22 (d) states that foreign exchange means foreign currency and including any instrument drawn, accepted, made or issued under clause 13 of section 16 of Bangladesh Bank order 1972 all deposits, credits and balances payable in any foreign currency, and any drafts traveler Cheques, letter of credit and bills of exchange express or drawn in Bangladeshi currency but payable in foreign currency (Bangladesh Bank Order '72).

3.2.1 Function of Foreign Exchange Department.

Exports                        :           1. Reshipment Advances.
                                                2. Purchase of Foreign Bills.
                                                3. Negotiation of Foreign Bills.
                                                4. Export Guarantees.
                                                5. Advising Confirming Letters- Letters of
                                               Credit.
                                                6. Advances for deferred payment Exports.
                                                7. Advances against bills for collection.
Imports                        :           1. Opening of Letter of Credit.
                                                2. Advance Bills.
                                                3. Bills for Collection.
                                                4. Import Loan Guarantees.
Dealings          :                       1. Rate computation.
                                                2. Maintenance of foreign currency accounts.
                                                3. Forward Contracts.
                                                4. Exchange position ad cover operations.
Statistics          :                       1. Submission of return.
                                                2. Collection of credit information.
3.2.2 Letter of Credit (LC).
Documentary Credit or Letter of Credit is an instrument or document or an undertaking issued by a bank on behalf of its customer for availing credit facility from the beneficiary. It is nothing but a letter of assurance of payment. The bank makes this assurance of payment. The bank upon presentation makes   payment, acceptance or negotiation of the credit by the seller of stipulated documents (e.g. bill of loading, invoice and inspection certificate). Documentary credit is an arrangement whereby bank (issuing bank) acting at the request and on the instruction of a customer (the applicant) or on its own behalf undertakes to make payment to or to the order of a third party (the beneficiary) or to accept and pay bills of exchange (draft) drawn by the beneficiary, or authorize another bank to negotiate against stipulated documents provided the terms and conditions to the credit are complied. Thus, Documentary Credit are akin to bank guarantees are, however, issued to cover situation of non-performance whereas documentary credits are issued on cover situation of non-performance, i.e. the issuing bank agrees to make payment to the beneficiary once he surrenders the requisite complying documents. Thus, Documentary Credit offers a unique and universally used method of achieving a commercially acceptable arrangement by providing for payment to be made against complying documents that represent the goods and making possible the transfer of those goods.

3.2.3 Types of Documentary Letter of Credit. 

The letter of credit can be either revocable or irrevocable. It needs to be clearly indicated whether the L/C is revocable or irrevocable. In the absence of any indication, it will be deemed to be a revocable letter of credit (UCPDC 1993 revision ICC No. 500).
  • Revocable L/C.
  • Irrevocable L/C.

3.2.4 Bank as a Party of Documentary Credit.
Parties to the documentary credit are-
1.      An Issuing Bank.
2.      An Advising Bank.
3.      A Confirming Bank.
4.      A Reimbursing Bank. or
5.      A Negotiation Banks.
3.2.5 Foreign Exchange Department.
The Foreign Exchange Department is mainly divided into these three sections. Such as-
1. Import Section.
2. Export Section and.
3. Remittance Section.
The Import Section deals with L/C in the perspective of the importers and the Export Section deals with L/C in the perspective of the exporters.

3.3 Loans and Advances Division of the Jamuna Bank Ltd.
Credit division is a vital part of a bank as well as a branch. Management of a bank should handle its Credit division properly. The Credit Division is an important part of the JBL Gulshan Branch. The personnel of Credit Division of this branch are committed to perform their duties properly. The all activities are completed as per instructions of Head Office of The Jamuna Bank Ltd.
3.3.1 Things, which are done here:
¨      Provide the loan and advance for the staffs of Head Office.
¨      Maintain the all loans and Advance accounts of Credit Division and Foreign Exchange Division.
¨      Prepare the statements as per instructions of Head Office.
¨      Checking and responding inter branch entries.
¨      Prepare various types of letter and take essential steps for existing clients.
¨      Recovery section fulfills their daily and mandatory obligations as per instructions of Head Office and Branch.
¨      Other activities as per instruction of Head Office.
3.3.2 Types of Loans and Advances Offered by the Jamuna Bank Ltd
1.      Loan General.
2.      Consumer Finance Scheme [CFS].
3.      Loan against FDR.
4.      Secured Overdraft – General [SOD (Gen)].
5.      Secured Overdraft- Financial Obligation [SOD (FO)].
6.      Cash Credit- Pledge [CC (P)].
7.      Cash Credit – Hypothecation [CC (Hypo)].
8.      Lease Finance Scheme.
9.      Project Loan.
10.  Payment against Document [PAD].
11.  Inland Documentary Bill Purchase [IDBP].
12.  Foreign Documentary Bill Purchase [FDBP].
13.  Personal Loan Scheme for Salaried Persons.
14.  House Repairing / Renovation Loan Scheme.
15.  Small & Medium Enterprise loan
16.  Loan against Provident Fund.
17.  Revolving loan.
18.  Bank Guarantee.


 
CHAPTER: FOUR
Marketing Concept and Services of Jamuna Bank Ltd
 

4.1 Marketing Concept of Jamuna Bank Ltd:

Marketing is no exception, so much so that Pareto analysis has become one of the standard must-haves in customer analysis.

But in performing Pareto analyses on customer profitability for financial institutions, we have identified important financial services marketers should consider.

Yes, we usually see a small percentage of customers responsible for almost all the profit. No surprise there. Some consumers are heavy buyers and some are light buyers, and financial services is no exception to this rule. While the degrees of concentration may vary from product/industry category to category, the existence of concentration is common.

But often, the same pattern keeps emerging. Why doesn’t the percentage of unprofitable customers reduce over time, despite financial institutions’ identifying unprofitable customers and taking innovative measures to fix this imbalance?

Marketing Policy:

Jamuna Bank Ltd authority’s very carefully control their marketing policy. Marketing policy is hidden subject for JBL. They can not publish all information on marketing policy but my concept found few marketing policy by interview.

1.      JBL used add creative words about there package in print advertising.
2.      The Jamuna Bank Branch offices establish by commercial area and highway it’s highly effective for profit.
3.      Better services is main marketing policy to others Banks.
4.      Jamuna Bank authority carefully monitor its competitor and market leading Bank
  1. Some employees are doing districts level marketing for Retail Banking and accounts opening.

JBL also train the Direct Sales Agents working with Marketing Companies like Market Access Limited etc. for selling our products. As one of the major joint programmes undertaken by our Bank involving, Jamuna Bank Limited & South Asia Enterprise Development Facility (SEDF) signed an MOU in 2002 for collaboration in providing better access to finance for Small & Medium Enterprises (SMEs). Areas for collaboration included training and technical assistance on Information Technology, Marketing, Human Resources Development and Credit Management. SEDF is a multi-donor funded programme, promoted by the International Finance Corporation (IFC) and managed by the SME Department of the World Bank Group.

Market Access Limited are also doing marketing on the point:

  • Agro-processing Industry
  • Textile Spinning, Dyeing and Printing
  • Export Oriented Readymade Garments
  • Food and Allied
  • Paper and Paper Products
  • Engineering and Steel
  • Computer Software and IT/Data Export
  • Export Oriented Gem, Jewelry
  • Export Oriented Finished Leather goods
  • Export Oriented Jute Products
  • Pharmaceuticals
  • Export Oriented Syringe/ Needle
  • Export Oriented Artificial Flower
  • Construction
  • Financial Institution
  • Telecommunication
  • Construction Materials
  • Cosmetics and Toiletries
  • Urban Housing
  • Small and Cottage Industries
  • Micro Enterprise
  • Infrastructure
  • Liquefied Petroleum Gas (LPG)
  • Compressed Natural Gas (CNG)
·         Small and Medium Enterprises (SME)

4.2 Online Marketing Concept of JBL:

Is a service offered by banks that allows account holders to access their account data via the Internet. In order to take advantage of online banking, an account holder would need to meet several technological requirements, such as having a personal computer with Internet access and web browser. If those conditions are satisfied, online banking can be performed from anywhere in the world. To minimize the risk of fraud, online banking is enabled through a secure server, which grants the individual a private access to his or her bank account. Online banking is designed to streamline banking chores that otherwise require considerable time and effort. Thus, online banking facilitates direct access to account details, enables transfer of funds, allows for multiple bills payments, and performs an array other transactions. Online banking is available twenty four hours, seven days a week, regardless of the bank’s working hours. Today, most banks offer online banking services Marketing.

4.3 Products and Services of JBL

The Bank has an array of tailor made financial products and services. Such, products are Monthly Savings Schemes, Consumer Credit Scheme, Lease Finance, and Personal Loan for Women, and Shop Finance Scheme etc. JBL also introduced Q-cash ATM cards for its valued customers giving 24 hours banking services through Debit Cards. JBL offers the following services to its valued customer:
*                Retail Banking
*                Deposit Schemes
*                Remittance and Collection
*                Import and Export handling and Financing
*                Loan Syndication
*                Project Finance
*                Investment Banking
*                Lease Finance
*                Hire Purchase
*                Personal Loan for Woman
*                24-hours Banking: Q-Cash ATM facility
*                Islamic Banking
*                Corporate Banking
*                Consumer Credit Scheme
*                International Banking

4.4 JBL Corporate Banking Services
The motto of JBL's Corporate Banking services is to provide a personalized solution to our customers. The Bank distinguishes and identifies corporate customers' need and designs tailored solutions accordingly. 
Jamuna Bank Ltd. offers a complete  range of  advisory, financing and operational services to its corporate client groups combining trade, treasury, investment and transactional banking activities in one package. Whether it is a project finance, term loan, import or export deal, a working capital requirement or a forward cover for a foreign currency transaction, the Corporate Banking Managers will offer you the accurate solution. The corporate Banking specialists will render high class service for speedy approvals and efficient processing to satisfy customer needs. 
Corporate Banking business envelops a broad range of businesses and industries. You can leverage on the know-how in the following sectors mainly:
·                     Agro processing industry
·                     Industry (Import Substitute / Export oriented)
   -Textile,       Spinning, Dyeing/Printing                                                                                         
       - Export Oriented Garments, Sweater.
       - Food & Allied
       - Paper & Paper Products 
       - Engineering, Steel Mills
       - Chemical and chemical products etc.
·                     Telecommunications. 
·                     Information Technology
·                     Real Estate & Construction ·
·                     Wholesale trade 
·                     Transport · Hotels, Restaurants ·
·                     Non Bank Financial Institutions
·                     Loan Syndication ·
·                     Project Finance · Investment Banking
·                     Lease Finance · Hire Purchase · International Banking ·
·                     Export Finance
·                     Import Finance
4.5 Other services of JBL

Personal Loan for Women:
this product is designed specially for the working women and housewives. Housewives with reasonable income of the spouses are also eligible to avail this loan. The loan can be availed for the purchase of household appliances, house renovation.


Foreign Trade:
International Trade forms the major business activity undertaken by Jamuna Bank Ltd. The Bank with its worldwide correspondent network and close relationships with key financial institutions provides an extensive trade services network to handle your transactions efficiently.
Lease Financing:
Jamuna Bank Ltd., the highly capitalized private Commercial Bank in Bangladesh has introduced lease finance to facilitate funding requirement of valued customers & growth of their business houses. JBL lease facility is extended to the items like Luxury bus, Mini bus ,Taxi cabs.
Industrial Credit:
Jamuna Bank Ltd. offers a complete range of advisory, financing and operational services to its corporate client groups combining trade, treasury, investment and transactional banking activities in one package. Corporate Banking business envelops a broad range of business.
Agriculture Loan:
Jamuna Bank Provides Loans for Agro Industries at a concession.
Trading of Government Treasury Bond & Other Govt. Securities:
Jamuna Bank Limited has been nominated as a Primary Dealer by the Bangladesh Bank for trading 5 years & 10 Years Treasury Bonds and other Government Securities.
1. Eligibility criteria: 
(i)  Individuals and institutions resident in Bangladesh, including provident funds,     pension Funds, bank and corporate bodies shall be eligible to purchase the BGTBs.
(ii) Individuals and institutions not resident in Bangladesh shall also be eligible to purchase   the BGTBs, with coupon payment and resale/redemption proceeds transferable abroad in foreign currency subject to fulfillment of conditions as mentioned in the Bangladesh Govt. Treasury Bond Rules-2003.
2.  Loan facility:
 JBL offers loan up to 95% of the present value of the bond/other securities against lien of the above instrument for their customers.
4.6 Different Types of Scheme and Loans
·         Marriage Deposit Scheme.
·         Education Savings Scheme.
·         Car Loan Scheme.
·         Home Loan Scheme.
·         Shop Finance Scheme.

4.6.1 Marriage Deposit Scheme

Marriage of children, especially daughter is a matter of great concern to the parents. Marriage of children involves expense of considerable amount. Prudent parents make effort for gradual building of fund as per their capacity to meet the matrimonial expense of their children specially daughters. Parents get relief and can have peace of mind if they can arrange the necessary fund for marriage of their children, no matter whether they survive or not till the marriage occasion.
It can be a great help to the parents if there is any scope of deposit of a modest amount as per their financial capacity, which grows very fast at high rate of interest yielding a sizeable amount on maturity.
With this end in view JBL has introduced Marriage Deposit Scheme, which offers you an opportunity to build up your cherished fund by monthly deposit of small amount at your affordable capacity.
Eligibility:
  • Marriage Deposit account can be opened in the name of children below the age of  18-years alongwith legal guardian.
  • For opening a marriage deposit account, maintenance a savings account with JBL is required.
Terms & Conditions:  
·         Bank reserves the right to close the scheme if customers fail to deposit 3-consecutive installments.
·         If the Scheme is closed within 6-months, customer will get the deposited amount only and no interest/profit will be paid for the Scheme. If it is closed after 6-months, customers will get the deposited amount alongwith the interest at the normal savings rate up to the time of closure.
·         Duties and taxes are payable by the customers as per government rules.
·         The above figures are indicative only and subject to change from time to time.
·         Money Laundering Prevention Act shall be exercised as per rules of Bangladesh Bank.

4.6.2 Education Savings Scheme

Education is a basic need of every citizen. Every parent wants to impart proper education to their children. Education is the pre-requisite for socio-economic development of the country. As yet, there is no arrangement of free education to the citizens from the government level. As such, there should be pre-arrangement of fund to ensure higher education of the children. Otherwise higher education may be hindered due to change of economic condition, income of the parents at the future time when higher education shall be required. Today's higher education is becoming expired day by day. Parents can get relief and can have peace of mind if they can arrange the necessary fund for higher education of their children. As such, JBL has introduced ‘Education Savings Scheme' which offers you an opportunity to build up your cherished fund by monthly deposit of small amount at your affordable capacity or initial lump sum deposit to yield handsome amount on a future date to meet the educational expenses. Under this Scheme you have the different attractive options to avail the future benefit i.e. withdrawal of the total amount accumulated in lump sum or withdrawing monthly benefit to meet educational expense keeping the principal amount intact or to withdraw both principal and accumulated profit monthly for a certain period.

Eligibility:
·         Education Savings account can be opened in the name of children below the age of 18-years along with legal guardian.
·         For opening a education savings account, maintenance a savings account with JBL is required.
Terms & Conditions:
·         Bank reserves the right to close the scheme if customers fail to deposit 3-consecutive installments.
·         If the Scheme is closed within 6-months, customer will get the deposited amount only and no interest/profit will be paid for the Scheme. If it is closed after 6-months, customers will get the deposited amount alongwith the interest at the normal savings rate upto the time of closure.
·         Duties and taxes are payable by the customers as per government rules.
·         The above figures are indicative only and subject to change from time to time.
·         Money Laundering Prevention Act shall be exercised as per rules of Bangladesh Bank.

4.6.3. Car Loan Scheme

Car Loan Scheme has been introduced to enable middle-income people to purchase Cars/SUVs/Jeeps. Government and semi-government officials, employees of autonomous bodies, banks and other financial organizations, multinational companies, reputed private organizations, teachers of recognized public and private universities and businessmen are eligible for the loan facilities.

Jamuna Bank Ltd, the highly capitalized private Commercial Bank in Bangladesh has introduced lease finance to facilitate funding requirement of valued customers & growth of their business houses. JBL lease facility is extended to the items like Luxury bus, Mini bus, Taxi cabs.

Eligibility:
·         Customer must be Bangladeshi Nationals/Citizen.
·         Persons below 18-years of old may open any account with his/her legal guardian.
·         For opening any account, maintenance a savings account with JBL is required.
Maximum Loan Amount:
1)   Up to a maximum of 50.00 lac in single case or 60% of possession value (distress value to be considered) whichever is lower. However, loan size will depend on creditworthiness of the borrower and the decision of the sanctioning authority.
2)   Branch Manager must verify the amount of possession money actually paid before recommending such proposal.
Tenure of the loan limit:
Minimum 01 year - Maximum 05 years from the date of disbursement of the loan.
Repayment Schedule:
Repayment schedule should be as under:
·         In case of 01 year, 10 monthly installments for the loan limit up to Tk. 3.00 lac with 02 month grace period from the date of disbursement.
·         In case of 02 year, 22 monthly installments for the loan limit up to Tk.6.00 lac with 02 month grace period from the date of disbursement.
·         In case of 03 year, 34 monthly installments for the loan limit above Tk.6.00 lac with 02 month grace   period from the date of disbursement.
Terms & Conditions:
·         Bank reserves the right to close the scheme if customers fail to deposit 3-consecutive installments.
·         If the Scheme is closed within 6-months, customer will get the deposited amount only and no interest/profit will be paid for the Scheme. If it is closed after 6-months, customers will get the deposited amount alongwith the interest at the normal savings rate upto the time of closure.
·         Duties and taxes are payable by the customers as per government rules.
·         The above figures are indicative only and subject to change from time to time.
·         Money Laundering Prevention Act shall be exercised as per rules of Bangladesh Bank.

4.6.4 Home Loan Scheme.

Home Loan Scheme has been introduced to enable middle-income people to purchase Home/Flat/Land. Government and semi-government officials, employees of autonomous bodies, banks and other financial organizations, multinational companies, reputed private organizations, teachers of recognized public and private universities and businessmen are eligible for the loan facilities.
Eligibility:
·         Customer must be Bangladeshi Nationals/Citizen.
·         Persons below 18-years of old may open any account with his/her legal guardian.
·         For opening any account, maintenance a savings account with JBL is required.
Maximum Loan Amount:
1)   Up to a maximum of 99.00 lac in single case or 60% of possession value (distress value to be considered) whichever is lower. However, loan size will depend on creditworthiness of the borrower and the decision of the sanctioning authority.
2)   Branch Manager must verify the amount of possession money actually paid before recommending such proposal.
Tenure of the loan limit:
Minimum 01 year - Maximum 10 years from the date of disbursement of the loan.
Repayment Schedule:
Repayment schedule should be as under:
·         In case of 01 year, 10 monthly installments for the loan limit up to Tk. 3.00 lac with 02 month grace period from the date of disbursement.
·         In case of 02 year, 22 monthly installments for the loan limit up to Tk.6.00 lac with 02 month grace period from the date of disbursement.
·         In case of 03 year, 34 monthly installments for the loan limit above Tk.6.00 lac with 02 month grace   period from the date of disbursement.
Terms & Conditions:
·         Bank reserves the right to close the scheme if customers fail to deposit 3-consecutive installments.
·         If the Scheme is closed within 6-months, customer will get the deposited amount only and no interest/profit will be paid for the Scheme. If it is closed after 6-months, customers will get the deposited amount alongwith the interest at the normal savings rate upto the time of closure.
·         Duties and taxes are payable by the customers as per government rules.
·         The above figures are indicative only and subject to change from time to time.
·         Money Laundering Prevention Act shall be exercised as per rules of Bangladesh Bank.

4.6.5 Shop Finance Scheme.

Categories of Eli Gible Business:
                  i)      Grocery/departmental/whole sale store
ii)     Confectionary/bakery (owned by the bakers)
iii)     Stationary shops
iv)     Cloth materials & small local garment traders
v)      Shoe makers/shops
vi)     PVC & plastic product traders/small manufacturers
 vii)   Tiles/sanitary items retailers
viii)   Computer/Photostat/Cyber Café.
ix)    Electrical & electronic items retailers
x)     Pharmacy
xi)    Gift shop/cosmetics shops
xii)    Restaurant/fast food joints
xiii)    Hardwire shops
xiv)    Glass/ceramic retail outlets
 xv)     Sports kit retailers
 xvi)    Photo studio
 xvii)    Rod, Cement & C.I. Sheet (Tin) Shop
 xviii)    Engineering Workshop
 xix)     Fertilizer & Pesticide shop
Maximum Loan Amount:
1)   Up to a maximum of 10.00 lac in single case or 60% of possession value (distress value to be considered) whichever is lower. However, loan size will depend on creditworthiness of the borrower and the decision of the sanctioning authority.
2)   Branch Manager must verify the amount of possession money actually paid before recommending such proposal.
Tenure of the loan limit:
Minimum 01 year - Maximum 03 years from the date of disbursement of the loan
Eligibility criteria:
The applicant must fulfill the following criteria to be eligible for loans and advances under the scheme:
i)          Shop owner must run the establishment himself, having at least three years of successful business experience
ii)          Valid lease deed for a minimum period of 03 years up to 05 years
iii)          Satisfactory conducted deposit account with JBL for minimum 03 months.
iv)          To deposit the daily sales proceeds in the account maintained with JBL
v)           Agree to abide by credit rules & regulations of JBL
vi)           Furnishing net-worth of the applicant/client .
vii)          Clean CIB 
viii)        The bank reserves the right to accept or reject any application without assigning any reason whatsoever.
ix)         The intending borrower /loanee shall apply through the letter head of the business firm or through a plain paper requesting the branch manager for sanction of loan under the Shop Finance Scheme. 
Security:
i)          Simple deposit of valid lease deed of agreement of the shop.
ii)         A tripartite agreement to be signed in between leaseholder/shop owner/Bank- to the effect that the leaseholder cannot rent out or transfer the leased property without the written consent of the Bank.
iii)        The lease deed between the landlord and the borrower must be duly executed & the original lease deed should be kept in the Bank as part of document. 
iv)        Lease must contain provisions enabling the landlord to forfeit the lease and enable the bank to enforce a right to sell the possession of the shop to liquidate the default debt (if any).
v)         Letter of disclaimer by the landlord to facilitate the bank to liquidate the default loan (if any)
vi)        Equal numbers of post dated cheques covering amount of each loan installment
Insurance:
All borrowing customers' inventory i.e. Stock-in-trade will be insured against Fire, Rsd & other risks with the Bank's mortgage clause cost of which will be borne by the shop owner/client/borrower.
Repayment Schedule:
  Repayment schedule should be as under:
·         In case of 01 year, 10 monthly installments for the loan limit up to Tk. 3.00 lac with 02 month grace period from the date of disbursement.
·         In case of 02 year, 22 monthly installments for the loan limit up to Tk.6.00 lac with 02 month grace period from the date of disbursement.
·         In case of 03 year, 34 monthly installments for the loan limit above Tk.6.00 lac with 02 month grace   period from the date of disbursement.


4.7 Criteria for Taking Loan

Jamuna Bank offers wide-ranging products and services matching the requirement of every customer. Transactional accounts, savings schemes or loan facilities from Jamuna Bank Ltd. make available you a unique mixture of easy and consummate service quality. 
We make every endeavor to ensure our clients' satisfaction. Our cooperative & friendly professionals working in the branches will make your visit an enjoyable experience. 

·         Customer must be Bangladeshi Nationals/Citizen.
·         Persons below 18-years of old may open any account with his/her legal guardian.
·         For opening any account, maintenance a savings account with JBL is required.
·         Bank reserves the right to close the scheme if customers fail to deposit 3-consecutive installments.
·         If the Scheme is closed within 6-months, customer will get the deposited amount only and no interest/profit will be paid for the Scheme. If it is closed after 6-months, customers will get the deposited amount alongwith the interest at the normal savings rate upto the time of closure.
·         Duties and taxes are payable by the customers as per government rules.
·         The above figures are indicative only and subject to change from time to time.
·         Money Laundering Prevention Act shall be exercised as per rules of Bangladesh Bank.


 4.8 Marketing Strategies of Retail Banking Product.

·         To manage and operate the Bank in the most efficient manner to enhance financial performance and to control cost of fund.
·         To diversify portfolio both in the retail and wholesale market.
·         To strive for Retail Banking customer satisfaction through quality control and delivery of timely services.
·         To identify Retail Banking customers credit and other banking needs and monitor their perception towards our performence in meeting those requirements.
·         To review and update policies, procedures and practices to enhance the ability to extend better service to Retail Banking customers.
·         To train and develop all employees and provide them adequate resources so that Retail Banking 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 increase direct contact with Retail Banking customers in order to cultivate a closer relationship between the bank and its Retail Banking customers.


 
CHAPTER: FIVE
Findings, Conclusion, Recommendation & Bibliography


5.1 Findings of the study:

While working at JBL,Gulshan Branch, I have attained a newer kind of experience. After collecting and analysis data I have got some problem of the Retail Banking services of JBL. These problems completely from my personal viewpoint, which is given below:

  1. Lack of proper training arrangement of JBL employees on Retail Banking services.
  2. Most of the time JBL employees could not fill up the Retail Banking customers expectations.
  3. JBL has only 43 Branches all over Bangladesh which is not sufficient enough to cover a good quality Retail Banking service.
  4. There are some irregularities in Sanctioning Retail Banking Loan and Advances to the clients.
  5. Existence of some corrupted and irresponsible employees and employers in JBL.
  6. Lack of coordination among the various departments of the Retail Banking services.
  7. Branches have no effective information for Retail Banking concepts. And some are politically motivated.
  8. The overall high cost of capital is a barring to its Retail Banking market expansion and due to this the operational expenses are increased.
  9. High cost of setting the latest technology based Retail Banking services is an obstacle to its rapid expansion.
  10. Lacking of motivating mid Retail Banking service by lower level officers.
  11. JBL is not conscious about the marketing of their Retail Banking products.
  12. All customers are not concerned about the latest technology based Retail Banking services and all are not readily interested to accept the technology-based Retail Banking services.
  13. Incase of online banking low speed of network is a problem and it consumes valuable time of the busy Retail Banking customers.
  14. JBL uses Flora Bank (Online Banking Software) which is not comprehensive software for modern banking and Retail Banking services.
  15. Due to increased competition JBL has to facing increasing promotional cost and it is an obstacles to rapid expansion to reaching the large people at a time.

5.2 Conclusion:

This report is being done on the subject of the Retail Banking Products and Services of Jamuna Bank Ltd, on Gulshan Branch. From the survey and observation of the study I try to gain some practical experience on critical Retail banking system. During the three months internship program at Gulshan Branch, almost all the desks have been observed more or less. Gaining knowledge about Retail Banking services and compares its other banking services with theoretical knowledge. Though Retail Banking services and other services are covered in the internship program, it is not possible to go to the dept of each activities of branch because of time limitation. So, objective of this internship program have not been fulfilled with complete satisfaction on Retail Banking Products and Services of Jamuna Bank Ltd. However, highest effort has been given to achieve the objective the internship program. During the internship, it is found that the branch provides all the conventional banking services and Retail Banking services as well as some specialized activities to the economy.

5.3 Recommendations:

Some necessary steps are recommended below on the basis of collected data, observation, expert staffs opinion and my knowledge and judgments. For the probable solutions of the identified problems ensure better process to Jamuna Bank in future.

  1. If any Retail Banking customer faces any problem the employee’s duty is to try to help them.
  2. Political influenced should be lowered as possible in case Retail Banking loan sanction.
  3. Incentive facilities should be given to the regular as well as irregular payers.
  4. Different social program should be adopted to make understand the sponsors.
  5. The internal decoration of the branch should be improved for Retail Banking services.
  6. Management can be Identify how the best Retail Banking services can be provided to the customers.
  7. Identify the methods or make plan to close the gaps between Retail Banking customers and Jamuna Bank Limited.
  8. The competing banks performance to carefully monitor regularly.
  9. The Jamuna Bank Branch offices establish by commercial area and highway it’s highly effective for profit and Retail Banking services.
  10. Political and organizational pressure to need eliminated in case of sanctioning Retail Banking loan.
  11. Some employees need to districts level marketing for Retail Banking and accounts opening.
  12. Insufficient salary of junior officer is an obstacle to provide better Retail Banking services.
  13. JBL use Flora Bank, the online banking software but need regularly updated version for better Retail Banking services.
  14. JBL can be established own training institute for improved its quality, Retail Banking services and commitment.
  15. According to JBL Gulshan Branch customers requirement it should have its own permanent bank space.


BIBLIOGRAPHY

Reference:

*    Bank Publications:

Ø  Annual Reports of JBL year 2005
Ø  Annual Reports of JBL year 2006
Ø  Annual Reports of JBL year 2007
Ø  Annual Reports of JBL year 2008
Ø  Published booklist and hand bills of JBL
Ø  Credit Risk Grading Policies of JBL
Ø  CRG Chart provided by Bangladesh Bank
Ø  JBL General Banking Policy Book

*    Website:

*      http://www.jamunabankbd.com
*      http://www.bangladeshbank-bd.org