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An Internee Report is submitted in partial fulfillment of the requirement for the degree of Bachelor of Business Administration With concentration in Finance
Prepared for:
Shah Md. Al-Emran Sarkar Assistant Professor, Department of Business Administration ASA University Bangladesh
By: Syed Arafat Haque Pavel ID- 071-12-179 Batch-1st ASA University Bangladesh
DECLARATION
I m Syed Arafat Haque Pavel, a student of faculty of Business Studies [BBA] ASA University Bangladesh. Hereby declare that the Internee Report entitled GENERAL BANKING ACTIVITIES OF MERCANTILE BANK is an original work done by me under the supervision of Shah Md. Al-Emran Sarkar Assistant Professor, Department of Business Administration Faculty of Business Student ASA University Bangladesh.
LETTER OF TRANSMITTAL
February 15,2011. Dhaka. Subject: A letter of transmittal to the Internship Supervisor. Dear Sir, It is my pleasure to submit my Internship Report on GENERAL BANKING ACTIVITIES OF MERCANTILE BANK (MBL) as a partial requirement for the BBA program. This report attempts to describe my observations, learning during the internship program me conducted by Human Resource Department of MBL. I made sincere efforts to study related materials, documents, annual report and operational system of MBL and examine relevant records for preparation of the report. I have tried my best to make this report as comprehensive and informative as possible within the time allowed for me. Due to various constrains; there may be some mistakes for which I beg your apology. Finally, I shall be glad to answer your any kind of query relating to this report, if necessary.
P EAE RF C
This internship report has been prepared as a part of the course of BBA Dept. of faculty of Business Studies, ASA University Bangladesh. The objective of the internship program is to enlighten the theoretical knowledge of students in practical field of operations.
I am assigned to submit my internship report on GENERAL BANKING ACTIVITIES OF MERCANTILE BANK (MBL). During the period of internship program, I have applied my academic knowledge as well as personal competence to the best. I have mainly tried to outline various performance issues with major functional areas. The report is organized by:
An Overview of Mercantile Bank Ltd.; General Banking Activities of Mercantile Bank Ltd.; . I tried my best to cover all significant dimensions of the topic. My effort will be meaningful if this report serves its purpose effectively.
AK O LD E E T C N WE G M N
At this very moment I would like to express my deepest gratitude and humble submission to the almighty ALLAH but for whose support I would never be able to complete a huge task of preparing this Report Paper within the scheduled time. I am also very eager in my heart to acknowledge the support of some good hearted people who have sincerely helped me to complete the task.
The first name comes to my mind is Shah Md. Al-Emran Sarkar Assistant Professor, Department of Business Administration ASA University Bangladesh I am thankful and indebted to him for his whole-hearted supervision during the research period. His suggestions and comments to make the study a good one was really a great source of inspiration for me.
Secondly, I convey my thanks to Syed Ahmadul Karim, Vice President and Md. Abul Bashar, Assistant Vice President of Mercantile Bank Ltd., Nayabazar Branch. I am also thankful to Mr. Alamgir Kabir and Mr. Shamim officer of the same Branch for their great support and help in the Internship period. I also thank to my friend Shamol, Topu and Zahid from the core of my heart for inspiring me in completing the task. Finally, the inspiration, encouragement and support provided by our parents must be acknowledged.
E E U IV S M A Y XC T E U MR
It gives me immense pleasure that during internship period, as part of the BBA program, I have an opportunity of spending a period of three months with a reputable organization where I observed and learned the practice and management. I am to have an overall appreciation of corporate management but for lack of proper practice of management, which is not possible to achieve only customary education. If I dont go through various relevant functional departments of the organization, I have expressed a keen interest in spending my internship with banking sector, because I have learned from various sources that for developing country this sector plays a vital role, but our country has not given so much attention to this sector. Therefore, I choose Mercantile Bank Limited (MBL), a new generation private commercial bank, which has various tools for observation. I am very lucky that this bank gave me opportunity to work as an intern. MBL has stepped into the new millennium with vigor and new aspiration. MBL has a country wide branch network thorough which they provide a comprehensive banking service to their customers, which includes wealthy individuals, corporate clients, and financial institutions. The MBL has started its operation in June 2, 1999. Since then MBL has diversified its business concentration mainly on corporate clients and business banking. A detail of study of the past and present status of MBL with future outlook has been incorporated in this overview of MBL. MBL has put in place pragmatic policies and business strategies to ensure continued growth and success as the Bank moves towards new millennium. The Banks principle is to attain efficiency and excellence in everything the bank does and above all the bank focus on the needs of its customers. Diversity in its product and efficiency in delivering the services to customers will remain an important component of their long-term business plans. The bank has introduced various customer friendly products and services like different Deposit Schemes, Lease Finance, Consumer Credit Scheme, and Small Loan Scheme to encourage savings and to bring about qualitative changes in the lives of the people of our country. The practical activities of different desks what I have done is outlined in this report. Various rules and regulations, policies and procedures relating to different banking activities have also been enumerated here.
Acronyms
MBL BCC BCCI BIBM BMRE DD FDR GATT SME SSIs SWIFT B/E CIB CCI & E CAD CIF FDBC FDBP ERC EPB Mercantile Bank Limited. Bank of Credit and Commerce. Bank of Credit, Commerce and International. Bangladesh Institute of Bank Management. Balancing Modernization, Rehabilatation and Expension. Demand Draft. Fixed Deposite Receipt. General Agreement on Tariff and Trade. Small and Medium Enterprise. Small Scale Industries. Society For World Wide InterBank Financial Telecommunication. Bill of Exchange. Credit Information Bureau. Chief Controller of Import & Export. Cash Against Document. Cost Insurance & Freight. Foreign Document Bill Collection. Foreign Document Bill Purchase. Export Registration Certificate. Export Promotion Bureau.
CONTENTS
PARTICULARS PREFACE ACKNOWLEDGEMENT EXECUTIVE SUMMARY PART ONE INTRODUCTORY REMARKS SECTION-1 INTRODUCTION INTRODUCTION SECTION-2 THEORETICAL FRAME WORK OF THE STUDY ORIGIN OF THE REPORT BACKGROUND OF THE STUDY PURPOSE OF THE STUDY OBJECTIVE OF THE STUDY SOURCES OF DATA SCOPE OF THE STUDY METHODOLOGY OF THE STUDY CONSTRAINTS OF THE STUDY SECTION-3 AN OVERVIEW OF MERCANTILE BANK LIMITED INTRODUCTION HISTORICAL BACKGROUND OBJECTIVE THE STRUCTURE OF MBL MANAGEMENT MANAGEMENT HIERARCHY OPERATION CORPORATE INFORMATION CORRESPONDENT RELATIONSHIP HUMAN RESOURCES DEVELOPMENT R & D: INVESTING INTO THE FUTURE OFFICE AUTOMATION FINANCIAL PRODUCTS AND SERVICES MERCANTILE BANK FOUNDATION PAGE NO. V VI VII 2 3 4 5 5 5 5 6 6 6 6 7 8 8 8 9 9 10 11 12 12 13 13 13 14 15
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PART TWO OVERALL PERFORMANCE OF MERCANTILE BANK LIMITED SECTION-4 GENERAL BANKING ACTIVITIES OF MERCANTILE BANK LIMITED INTRODUCTION DEPOSIT SECTION PARTICULARS ACCOUNT OPENING SECTION ISSUING OF CHEQUE BOOK TO THE CUSTOMER TRANSFER OF AN ACCOUNT CLOSING OF AN ACCOUNT CASH SECTION BILLS AND CLEARING SECTION REMITTANCE SECTION ACCOUNTS SECTION DISPATCHING SECTION LOCKER SERVICE PART THREE CONCLUDING REMARKS SECTION-5 OBSERVATIONS, RECOMMENDATIONS & CONCLUSION OBSERVATION RECOMMENDATION CONCLUSION
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31 32 33
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BIBLIOGRAPHY
12
SECTION-1 INTRODUCTION
1.0 INTRODUCTION
The word Bank refers to the financial institution deals with money. Commercial banks are the primary contributors to the economy of the country. On the other hand they are borrowing money from the locals and lending the same to the business as loans and advances. So the people and the government is very much dependent on these banks as the financial intermediary. Moreover, banks are profit - earning concern, as they collect deposit at the lowest possible cost and provide loans and advances at higher cost. The differences between two are the profit for the bank. Involvement of the banking sector in different financial events is increasing day by day. At the same time the banking process is becoming faster, easier and the banking arena is becoming wider. As the demand for better service increases, the banking organizations are coming with innovative ideas. In order to survive in the competitive field of the banking sector, all banking organizations are looking for better service opportunities to provide to their clients. As a result, it has become essential for every person to have some idea on the bank and banking procedure. A student takes the internship program when he or she is at the last leg of the bachelors degree; internship program brings a student closer to the
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real life situation and thereby helps to launch a career with some experience.
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15
What help does it make? How much effectively it does its operations? Do all the wings of modern organization exit here? What are the situations of its various business functions?
Fulfilling the requirements of MBA program. Understanding the strategy and objectives of the banks.
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competitors & customers has provided the primary sources of information. Further more the secondary sources of information are the different annual reports, published documents, official files, printed forms, documents kept in the Bank.
Time is the first limitation as the duration of the program was of three months only. Another limitation of this report is Banks policy of not disclosing some data and information for obvious reason, which could be very much useful.
b.
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SECTION-3 AN OVERVIEW OF
18
19
Capital of the Bank is 3000.00 million taka and the Paid-Up Capital is 1498.90 million taka as on December 31, 2007.The Bank provides a broad range of financial services to its customers and corporate clients. The Board of Directors consists of eminent personalities from the realm of commerce and industries of the country
. There are thirty Sponsors involved in creating MBL. The Sponsors of the Bank have a long heritage of trade, commerce and industry. They are highly regarded for their entrepreneurial competence. The Sponsors happen to be members of different professional groups among whom are also renowned banking professionals having vast range of banking knowledge. There are also members who are associated with other financial institutions like insurance companies, leasing companys etc.
Mercantile bank Limited continued its expansion program during the year ended as on December 31, 2007. Its core lending and deposit taking business have increased significantly. Rising trend of the banks profitability over the last 8 years is also materialized. The MBL is committed to the delivery of the superior shareholders value. With the aim to be the bank of choice, it is operating in the industry with a team of personnel devoted to excel both their own career and the banks future.
As regards the second slogan of bank Efficiency is our strength is not a mere pronouncement but part of their belief, which will inspire and guide them in their long and arduous journey ahead.
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3.2 OBJECTIVE
Mercantile Bank Limited (MBL) aims at excellence and is committed to explore a new horizon of banking and private a wide range of quality products and services comparable with those available with any modern bank in the world. It is a bank for the common people including businessman and professionals. It intends to serve with quality at a price competitive to achieve in the financial market. It would constantly keep on exploring the needs of the clients. The management of the bank bears in mind the fact they are on the threshold of a new millennium, which will pose extra ordinary challenges to be faced and at the same time open up new opportunities and possibilities. As young and talented team of business entrepreneurs and managers will be required to guide the destiny of nation in the 21st century. For this reason the bank will be developed a youthful and exuberant management team-technologically sound and rich in experience. They would work hand in hand with zeal and enthusiasm to achieve the objectives of the bank in the new millennium.
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3.4 MANAGEMENT
22
The management of the bank is vastly on a Board of Directors, for overall supervision and directions on policy matters by the board. The power of general supervision and control of the affairs of the bank is exercise by the president and managing director of the bank who is the chief executive officer. Above all, the bank will be manned and managed by a galaxy of talented professionals proficient in their individual fields and dedicated to the cause of the bank.
Chairman
Board of Directors
Chief Adviser
Vice President
Senior Asst. Vice President
Abbreviations: GSD General Service Division CAD Central Account Division ASI Audit and Inspect CB Central Bank D&M Developing and Marketing ID International Division R&P Research & Planning
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3.6 OPERATION
The importance of the mobilization of saving for economic development of our country can hardly be over emphasized. The bank considers savings and deposit as life-blood of the bank. More the deposit, greater is the strength of the bank. So, they intends to launch various new savings schemes with greater is the strength of the bank and prospect of higher of return duly supported by a wellorchestrated system of customer services. Technology such as computer, ATM, Tele-communication etc. all would be harmonized and adapted to the system in order to provide round-the-clock and any-branch services to the clients. Travelers cheques, credit cards and other ancillary services including payment of different bills from one counter will also be introduced to achieve the ultimate goal of ONE-STOP service to the customers value. The bank would cater to the credit needs of individuals as well as corporate clients. Initially it will emphasize on trade finance, which would be short-term and self-liquidating in nature. Considering the importance of Export and Import and also handing of foreign remittance business would be given top-most priority. Customer credit is a relatively new field of micro-credit activities. People with limited income can avail with this credit facility to buy any household effects including car, computer and other durable. Mercantile Bank Limited (MBL) will play a vital roll in extending the consumer credits in line with its policy of peopleoriented banking.
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Lease-Finance is an area of business where the bank would activity participates. Because of certain built-in advantages, the industrial entrepreneurs are being increasingly attracted to this type of financing. Moreover, Mercantile Bank Limited (MBL) intends to expand the scope of this finance to include financing of agricultural equipment's as well. The bank would not depend only on interest earnings; rather it would strive hard to go for fee-based income from non-activities of the bank. These type of business include capital market operations like Underwriting, Portfolio management, Mutual fund management, Investors account as well as commission-based business like Letter of Guarantee, Inland remittance, Foreign remittance etc. These businesses usually do not involve banks fund, but on the contrary, offer immense opportunity and scope to expand bank services to the members of public at large.
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Name of the Bank Status Date of Incorporation Date of Commencement Subscription for Shares Listed in Dhaka Stock Exchange Listed in Citation Stock Exchange Head Office Phone E-mail Website Chairman Managing Director Number of Employees Number of Branches
Mercantile Bank Limited Public Limited Company May 20, 1999 June 02, 1999. October 21-22, 2003 February 16, 2004 February 26, 2004 61, Dilkhusa Commercial Area, Motijheel, Dhaka- 1000 +880-2-9559333, 01711-535960 mbl@bol_online.com www.mblbd.com Md. Abdul Jalil Dean Manipur Raman 1715 64
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27
28
The prime objective of this scheme is to encourage people to build up a habit of saving. Under this scheme, one can save a fixed amount of money every month and get a lucrative amount of money after five, eight or ten years.
Under this scheme, one can deposit certain amount of money for five or more years and in return he will receive benefits on monthly basis. Benefits start right from the first month of opening an account under the scheme and continue upto five or more years.
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This scheme has been evolved especially for small shopkeepers who need credit facility for their business and cannot provide tangible securities.
Lease Finance
This scheme has been designed to assist and encourage the genuine and capable entrepreneurs and professionals for acquiring capital machineries, medical equipments, computers and other items. Terms and conditions of this scheme have been made easier in order to help the potential entrepreneurs to acquire equipments of production and services and repay gradually from earnings on the basis of 'Pay as you earn'.
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31
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4.0 INTRODUCTION
Bangladesh is one of the less development countries. So the economic development of the country depends largely on the activities of commercial banks. So I need to emphasis whether these commercial banks are effectively and honestly performing their functions, assign their duties, and responsibilities. In thus respect I need to know about the general banking function of those banks as well as the MBL, is to provide the general banking service. The general banking department does the most important and basic works of the bank. All other departments are linked with this department. It also pays a vital role in deposit mobilization of the branch. MBL provides different types of accounts, locker facilities and special types of saving scheme under general banking. For proper functioning and excellent customer service this department is divided into various sections namely as follows: 1. 2. 3. 4. 5. 6. 7. 8. Deposit Section Account Opening Section Cash Section Bills and Clearing Section Remittance Section Dispatching Section Locker Service Accounts Section
community as well as makes such use of saving by making it available to productive and priority sectors of the economy thereby fostering the growth and the development of the nation economy. Therefore deposit is the blood of bank. From the history and origin of the banking system, we can know those deposit collection the main function of a bank.
The authorized officer scrutinizes the introduction and examines the documents
Account is opened
Issuance of deposit slip and the deposit must be made in cash no cheque or draft is acceptable to the Bank.
Public limited company. Private Limited Company Non-trading concern (Societies, Club, Association) Joint account in the name of minor
In addition, the customer has to submit the valid trade license and Tax Paying Identification Number (T I N) along with the application. 1. A copy of partnership agreement (deed). 2. Resolution of the partner regarding account opening. 3. Photographs attested of those who will operate. 4. Trade license. 5. Mandate as to operate of account. 1. Certificate of incorporation. 2. Copy of memorandum and articles of association. 3. Certificate of commencement. 4. Copy of resolution of Board of Directors. 1. Certificate of commencement is not necessary. 2. Certificate of incorporation. 3. Copy of memorandum of and articles of association. 4. Copy of resolution of the board of directors. 1. Registration certificate under the societies acts 1962. 2. Certificate copy of bylaws and regulations constitution. 3. Copy of resolution. 4. Power of attorney to borrow. A minor can't operate an account in his own name due to the incapability to enter into a contract. He / she can open an account in M B L in joint name of the person who will be guardian.
(b)
Payment of Interest
It is usually paid on maturity of the fixed deposit. M B L calculates interest at each maturity date and provision is made on the "Miscellaneous Creditor Expenditure Payable Accounts" is debited for accrued interest. But the bank may pay you interest to depositor every 6 months or credit the amount of interest to his savings or current account, at his request.
In case premature F D R, M B L is not bound to accept surrender of the deposit before its maturity date.
CHEQUE
BOOK
TO
THE
When a new account is opened and the customer deposits the minimum required money in the account the account opening form is sent for issuance of a Chequebook. Respected Officer first draws a Chequebook kept under his own disposal. (S) He then scaled it with branch name. (S) He enters the number of the Chequebook in Cheque Issue Register. (S) He also writes down the name of the customer and the account number in the same Register. Account number is then write down on the face of the Chequebook and on every leaf of the Chequebook including Requisition Slip. The name of the customer is also written down on the face of the Chequebook and on the Requisition Slip. The word "Issued on" along with the date of issuance is written down on the Requisition Slip. Number of Chequebook and date of issuance is also written on the application form. Next, the customer is asked to sign in the Chequebook issue Register.
Then the respected Officer signs on the face of the Requisition Slip put his initial in the register and hand over the cheque to the customer.
The necessary information regarding the character, means and standing of the account holder and must be given to the receiving branch.
Cash section is a very important and busy section MBL, of any Branch handle with extra care. I was not authorized to deal in this section. But I was fortunate enough to know the procedures of this section. Operation of this section begins at the start of the banking hour. Cash officer begins his / her transaction with taking money from the vault, known as the opening cash balance. Vault is kept in a very secured room. Keys to the room are kept under control of cash officer and branch incumbent. The amount of opening cash balance is entered into a register. After whole days' transaction, the surplus money remains in the cash counter is put hack in the vault and known as the closing balance. Money is received and paid in this section. This section perform the following functions:
Then this slip is passed to another officer who enters the scroll number given
by the cash counter in his / her register amounts of the money, sign the slip and keep the banks' part of the slip. Other part is given to the depositor. At the end of the day entries of both of these registers are cross checked with the register kept at the cash counter to see whether the transactions arc correct or not.
If the instrument is free of all kinds or errors the respective officer will
request the bearer to sign on the back of it. He will then put his I her initial beside the bearers signature. He / She will also sign it on its face, will write down the amount by red pen and will put on a scroll number from his / her scroll register. It is known as passing of cheques.
Then the cheque will be sent to the cash counter. At the cash counter bearer will be asked again to sign on the back of the instrument. The cash officer will then enter the scroll number in his / her register and will pay the money to the bearer. At the end of the day these scroll numbers of the registers will be compared to ensure the correctness of the entries.
(a)
If refers the instruments drawn on the other Banks received by the MBL. They fall under two kinds.
1) When Cheques are drawn on another branch of MBL the settlement process is:
Cheques are directly sent to the respective branch. Received along he instrument by the respective. Entry passed in OBC register of that branch.
the
2) When Cheques drawn on another Bank, which is situated within clearing house area.
MBL Nayabazar Branch collects cheques. CIBTA along with bills are sent to Dilkusha Branch. These bills are sent to cleaning house from Dilkusha Branch.
(b)
Cheques drawn on another Bank or a branch of MBL is situated outside the clearinghouse area. These bills are called OBC the process of collection is described below.
Depositor s account is
2) When the bill is drawn on another Bank and there is a branch MBL:
This branch sends the bill direct to the branch of MBL by OBC schedule. Request them to send the process by CIBTA and collect the bill. That branch of MBL can collect the through clearinghouse arrangement.
3) When the bill is drawn on another Bank out there is no branch of MBL:
By an OBC schedule requested them to send a draft in favour of this Bank.
4 .1C a in .7 le r g
According through the 37(2) of Bangladesh Bank Order 1972, which are the member of the clearinghouse, are called as Scheduled Bank. The scheduled banks clear the cheques drawn upon one another through the clearinghouse. This is an arrangement by the central Bank where every day representative of the member banks gather to clear the cheques. Banks for credit of the proceeds to the customers account accept cheques and other similar instruments. The banks receive many such instruments during the from account holders. Many of these instruments are drawn payable at other banks. If they were to be presented at the drawer banks to collect the proceeds it would be necessary to employ many messengers for the purpose. Similarly there would many cheque drawn on this the messengers of other banks would present bank and then at
the counter. The whole process of collection and payment would involve considerable labor, delay, risk and expenditure. All the labor, risk, delay and expenditure are substantially reduced by the representative of all the banks meeting at a specified time, for exchanging the instruments and arriving at the net position regarding receipt of payment. The place where the banks meet and settle their dues is called the Clearinghouse. The Clearinghouse sits for two times a working day. The members submit the climbable cheque in the respective desks of the banks and vice-versa. Consequently the debit and credit entries are given. At the debit summation and the credit summation are calculated. Then the banks clear the balances through the cheque of Bangladesh Bank. The dishonored cheque are sorted and returned with return memo.
T eF llo in P o e u e a et k nf r h o w g r cdr s r ae o C lle t n o c io Received seal is stamped on the cheque Crossing the cheques are done
Payees A/C Credited ends Entries are given in the Outward Clearing Register. Cheques are sortedrsement and entries are bank wise given to the com Clearing seal is given on cheque.
eque.
Crossing of the cheques are done indicating Principal Branch as collecting bank
Types of Remittance
Between Between Between Between Between Between banks and non-banks customer. banks in the same country. banks in the different country. banks in the different centers. banks and central bank in the same country. central bank of different customers.
The main instruments used by the MBL of remittance of funds are: Payment order (PO) Demand Draft (DD) Telegraphic Transfer (TT)
Commission
Tk.10 Tk.20 Tk.40
VAT
15% of Commission ,, ,,
demand. DD is very much popular instrument for remitting money from one corner of money to another. Commission for DD is 0.15% of the principal amount and 0.15% vat on the Commission.
There are some difference between Pay Order and Demand draft, which are: In case of demand draft both the payer and payee need to have accounts. But there is no certain rule for pay order. PO is used for same clearing area. DD is used for all kinds. DD cannot be done in the same clearing area. DD is drawn on a certain bank office. But there is no certain rule for PO.
Pay all expenditure on behalf of the bank. Make salary statement and pay salary. Branch to branch fund remittance and support for accounting treatment. Budgeting for branch. Make charges for different types of duties.
4.10DISPATCHING SECTION
All documents coming in the branch or going out of the branch must pass this section.
The Main Objective of this Section is: Maintaining all records of the documents send to other branches or banks. Makes best effort to send these documents safety and correctly. Letters are disbursed to their respective destination. Receives documents come through different medium, such as postal service, courier service, via messenger etc. MBL Nayabazar branch.
Dispatch
section or MBL Nayabazar branch performs an important role in smooth and up to date banking for 21st century.
Two types of letters are continuously received in this branch, these are: 1. Inward (Registered/Unregistered) letters. 2. Outward (Registered/Unregistered) letters. At first recording is required whether it is Inward or Outward Registered / Unregistered letters. Then letters are disbursed to their respect destination. Inward letters are firstly segmented according to their different sections and after that an entry is given to the Inward Register book. The chronological
number of the register (Both Inward & Outward) is known as inward & outward number receptively.
9.1 OBSERVATION
While working at MBL Nayabazar Branch, I got a newer kind of experience. After collecting and analyzing data, I have got some findings and
recommendations. These findings are completely my personal viewpoint, which are given below:
9.2 RECOMMENDATION
Banking is a service-oriented marketing. Its business profit depends on its service quality. Thats why the authority always should be aware about their service quality.
To provide quality service to the customer it is necessary to have a trained team of an organization or an institution. For this reason the bank should recruit more fresh, bright and energetic persons such as MBA, BBA, and MBM etc. The bank has a provision for internship program, but it is not well organized. Although the officials are very careful and cooperative with the interns, the authority should be more structured. If they can properly make them trained it will be very fruitful to recruit them. Because they learn overall banking in the internship period, so in the beginning of the job they can work as experienced persons. It is also very important that they should give an honorarium to the intern. Bank should offer more facilities to the customers such as credit card, visa card, ATM machine etc. While the other bank is launching Consumer Credit Scheme Mercantile bank is failing to launch this king of scheme. The management can undertake such sort of schemes and earn more profit. One of the business strategies is promotion. Successful business depends how they can promote their products or services to the customer. In this connection to improve the business status bank should introduce more promotional programs. The recruitment process of the bank is very lengthy and expensive. The bank should the cost and select the employee by restructuring the lengthy process. In general banking department it is necessary to implement modern banking process instead of traditional system. It should be more computerized. Data Base Networking is the most modern technology to transfer data from branch to branch or branch to head oppose and vice versa. So they must use this technology in Information Technology (IT) Department of the bank.
As the clients are not in favor of introducing system, if possible the rule of introducing to open an account should be changed. Because many people face in problem to arrange an introducer in the time of opening accounts. The loan sanction process should be easier that the clients can feel convenient to take loan from the bank. To make exchange process more prompt the authority should use modern communication system such as e-mail, fax, win fax, Internet etc. Foreign exchange department should be fully computerized that the exchange process would be convenient for both the bankers and the clients. Supervision based credit should be introduced. Bank should have to ensure good use of fund. Total cost of bank should have to be reduced. Loan processing time, political invention should be reduced. Reward should be given to that borrower who paid early. As it profit of the bank is not satisfactory, therefore has to identify those sectors from which it can earn more profit and should invest in those sectors. Deposit mobilization of the bank should come to be increase.
9.3 CONCLUSION
From the practical implementation of customer dealing procedure during the whole period of my practical orientation in Mercantile bank limited I have reached a firm and concrete conclusion in a very confident way. I believe that my realization will be in harmony with most of the banking thinkers. It is quite evident that to build up an effective and efficient banking system to the highest desire level computerized transaction is a must. Success in the banking business largely depends on effective lending. Less the amount of loan losses, the more the income will be from Credit operations. The more the income from Credit operations the more will be the profit of the Mercantile Bank Limited and here lies the success of Credit Financing. Though there are some drawbacks in implementing Credit facilities in Mercantile Bank Limited as per manual, it can be further developed in light of the recommendations being discussed above. Finally it can be argued that though the results achieved so far are not satisfactory, Credit Financing is a modern scientific technique for enhancing Mercantile Banks strength and there lies the opportunities to make it more effective in the future for our own benefit.
BIBLIOGRAPHY
Gordon, E & Notorajan, Dr. K. Banking Theory, Law, and Practice, Himalaya Publishing House, Delhi, 1996. MBL Procedure Manual- General Banking. Credit Operation Manual- MBL Prospectus of MBL, Md. Muinuddin Khan, The Bangladesh Accountant
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