Department of Business Administration East West University. Subject: Submission of Internship Report. Dear Sir, It’s my pleasure to submit the report on “General Banking in Bank Asia Ltd. ” that you have asked me to prepare as a partial fulfillment of BBA program. I worked as an internee in the Bank Asia Ltd for three month, which was a real life working experience in the bank. I have put my best effort in completing the report with all information that I had collected during my association with Bank Asia Ltd at Mohakhali Branch.I will be always available for any supplementary interoperation & thank you for allowing me the opportunity to do a report on the above topic.

This report definitely gives me an exceptional experience that will be use in the future. I sincerely hope this internship report will live up to your expectation. Thanking you, Sincerely yours Syed Mustafa Muynuddin ID # 2005-2-10-111 ACKHNOWLEDGEMENT A large number of Individuals have helped me with their cordial cooperation and encouragement. I acknowledge to all of them who contribute directly or indirectly in papering this report.

I am very grateful for honorable Senior Lecturer Mohammad Faridul Alam for providing instruction and helping me a lot in every step of my repot work and to prepared the report General Banking of Bank Asia Limited. I am also appreciative to our BBA Department, East West University University. I am also indebted to thank Mr. Alamgir Hossain, First Vice President & Head of Mohakhali Branch. for his constant guidance and valuable suggestion form time to time and I am also grateful to Mr. Md.

Mazibur Rahman, First Asst. Vice President, Executive Officer Mr. Mahbubul Alam for their personal guidance during the internship.I convey my overall gratitude to all the persons who have involved in assisting me to complete my report. Sincerely Syed Mustafa Muynuddin ID # 2005-2-10-111 Executive Summary This is an internship report titled as “General Banking in Bank Asia Ltd”. Bank Asia Limited was created and commencement of business on April 17, 1999.

Currently BAL has 39 branches. BAL is providing different type of services for the customers. Customer service is one of them. It includes opening of account, remitting funds, receiving & paying cash, collecting different instruments & payments against them, maintaining accounts, preparing voucher etc.BAL performs these entire functions with the vision of becoming the leading financial institute in the country with satisfied customers & employees and to generate value for their shareholders while contributing to the well being of the society. I have compared the general banking of BAL in terms of General Banking. The banks, which are compared with, DBBL. I have compared the General Banking as well as customer satisfaction.

I have used both secondary and primary data for the completion of the project. A simple random sampling method has been used to collect primary information.The questionnaire survey was conducted equally among 100 respondents who deal with BAL, DBBL. The secondary data have been collected through different physical and virtual publications.

Chapter One 1. 0 An Overview 1. 1 Introduction: The Bangladesh banking sector is made up of four nationalized commercial banks (NCBs), five government-owned specialized banks, 30 domestic private banks, 22 non-bank financial institutions, including the Dhaka Stock Exchange and the Chittagong Stock Exchange, and 12 foreign banks. The percentage of non-performing loans in the banking system is extremely high.As of March 2004, NCB rates were 35%, government-owned specialized banks at 56% and domestic private banks at 17%. Only foreign banks have been able to keep their non-performing loan portfolio in check at about 2%. The banking system is further impaired by a web of weak balance sheets, minimal demand from qualified borrowers, and heavy reliance on liquid asset-based lending.

The U. S. Government and donor institutions are assisting with financial sector reforms. Part of the reform effort is to upgrade regulations and accounting standards to international standards as far as possible.Bangladesh Bank regulates all banking institutions, and, as in many countries, the Ministry of Finance rather than being independent controls the central bank. Every bank has different divisions and every division has units or departments and every department has their own functions to serve the customers according to customer’s requirement. The departments are: 1. General Banking 1.

Export ; Import 1. Loans ; Advances General Banking is the heart of a bank that operates the day-to-day transactions.It contains opening account, issuing chequebook, receiving account payee cheque, issuing and responding IBCA or IBDA, Outward and inward bills collection, issuing payment order, demand draft and telegraphic transfer, providing locker service and issuing FDR. This is very important to satisfy a customer in this sector because the customers usually make judgment about the quality of services depending on how much satisfaction they are getting from the customer services.

In today’s financial world, banking sector plays an uncompromising role to uphold a country’s economy.Recent times in Bangladesh, private banking sector has been contributing a lot in the total economic growth in the country; and this sector has proven itself as a profitable venture with it’s superior products and customer services. Bank Asia Limited (BAL) is a fast growing private sector bank in Bangladesh.

In terms of quality services and value addition to shareholders, Bank Asia Limited is already maintaining its position at the top slot. The bank has already proved satisfactory progress in all areas of banking operation and it further expanded and consolidated its customer base both in of its core business and retail banking.Bank Asia Limited is determined to explore the different ways to accommodate with the needs of its clients. 1. 2 Origin of the Report: This report entitled “Evaluation of customer service quality in Bank Asia Ltd. ” originated from the partial fulfillment of the internship program.

, I have done my internship in Bank Asia Limited, Mohakhali Branch. I have partly worked in few departments of the branch but mainly focused in the customer service of general banking department. It has given me a chance to directly communicate and provide professional service to the bank clients.My report will focus on the different aspects of customer service provided by the Bank Asia Limited with some comparison with other leading commercial private bank and this report has been prepared under the supervision of Mohammad Faridul Alam Senior Lecturere, Department of Accounting, Faculty of Business Studies, East West University. 1.

3 Purpose of the Report: The main purpose of this report is to evaluate the customer service quality in Bank Asia Limited and compare it with some other private sector banks. . 4 Scope: The internship program gives the student a great opportunity to get the difference and similarities between the practical and the theoretical world.

A student can see a real picture of practical life after graduation and everyone should get the experience before entering the practical world. To prepare this report I had a great opportunity to have real life knowledge about how to evaluate the performance of a bank and make a comparison between Bank Asia Limited and other private sector banks.I also tried to increase my knowledge about banking activities and I think, the information collected from different banks will help me to know the customer services of some other private sector banks. 1. 5 Statement of the Problem: A party becomes a client of a bank through opening an account. Account opening is the primary and core function of the general banking operation.

It is a very simple activity but very important and critical function. Now-a-days account holders have to declare in advance about the monthly and yearly transaction projection to avoid any illegal operation.Also customer services involve issuing chequebook, collection and clearing of cheque, issuing pay order, demand draft, telegraphic transfer, preparing voucher, endorsement, cash payment ; receive, providing locker facility, etc. All these activities are very risky and important as well. Because a little mistake can harm any banks reputation and create lose as well.

So, the customer service providers should be always careful about their efficiency to the clients and should be sincere to give the best effort all the time. Because, the success of a bank depends on the evaluation of satisfaction by the customers. . 6 Objectives: The main objectives of the study are: 1. To evaluate the customer services quality which are provided to the customers as well as their satisfaction with the services of Bank Asia Limited and compare it with other private sector Banks.

1. To find out the problems of customer services of Bank Asia Limited. 1. To suggest suitable measures to remove the existing problems and improvement of customer services of Bank Asia Limited. Other objectives are: 1. To fulfill the course requirement of the internship Program of East West University, BBA program. 2.

To have an overall idea about banking system and to have an idea about the customer service in bank. 1. 7 Research Methodology 1. 7. 1 Research Design: This is a descriptive research of which major objective is to describe something.

This study is a single cross sectional design where preliminary information is gathered only from the existing clients (account holder) of Bank Asia Limited, The Premier Bank Limited, Dutch-Bangla Bank Limited, National Bank Limited and Brac Bank Limited to whom the quality of services is being provided and how well the customers are accepting the services.The descriptive research will help to provide the insights and understanding of the present situation of private sector banks. 1. 7. 2 Sample Design: Target Sample The target population will be following: 1. Clients of BAL, the Premier Bank, DBBL, National Bank and Brac Bank (branches at Dhaka City).

2. Officers at customer services from the selected banks. 1. 7.

3 Sampling Technique: Simple random sampling technique was used in this research. This is a probability sampling technique in which each element or unit in the sample has a known and equal probability of selection.The sample is drawn by a random procedure from a sampling frame. 1. 7. 4 Sample Size: The sample size refers to the number of elements to be included in the study. The sample size of this research is 100. 1.

7. 5 Survey instrument: A structured questionnaire is used in this research to collect data from the valued clients. The method of data collection is communication study. The questionnaire survey method is useful method to collect data for the following reasons: 1. Structured questionnaire survey method can be used systematically. 2. 100 clients will be surveyed for this research.

The allocated time for the research is very limited hence personal interview is not possible. 1. 7. 6 Survey Method: The survey method used in this study is primary data collection tool. Each respondent is given a questionnaire to fill in. Through the questionnaire, the respondents were asked about the personal views of the client’s satisfaction on the services of Bank Asia Limited, The Premier Bank Limited, Dutch-Bangla Bank Limited, National Bank Limited and Brac Bank Limited.

Certain objectives will be examined using secondary data. 1. 8 Source of Information:The information about the provided services were collected from the officers related with customer service department. Also the lack of services and satisfaction of customers, related information were collected from the clients. Primary Source of Data Collections are: 1. Face to face interview with the bank officers.

1. Some questionnaire survey with the customers was made at Bank Asia Limited. Secondary Source of Data Collections are: 1. Official records of the clients. 1. Annual report of Bank Asia Limited. 1. Websites of Bank Asia Ltd.

1. Different publications and brochure regarding banking functions. . 9 Limitations: Like all survey works this research is subjected to a number of limitations: 1. There were some restrictions to have access to the information confidential by concern authority. 2.

There are 52 banks. But for time shortage, I have selected only four banks to compare with and this selection has been made on the basis of 1st, 2nd and 3rd generation banks. 3. The officers at the customer services are very much busy with their activities. They are interested to help me but have no time to do that. This is the main limitation of the study and the customers are also seem to busy. 4.Sufficient records, publications, facts ; figures are not available.

These constrains narrowed the scope of real analysis. 5. Non-cooperative behavior of some officials from few branches. Chapter Two 2. 0 Profile of Bank Asia Limited 2. 1 Introduction to Bank Asia Limited: The Bank Asia Limited (BAL) is a national banking group that is incorporated on February 12, 1999 as a consequence of persistent efforts of a group of entrepreneurs having excellence of experience exposure in the different fields of industry, trade and commerce of the country. It started operation as a commercial bank on April 17, 1995 with a branch at Motijheel.At present, the bank has 39 branches spread all over the country.

It renders all types of commercial banking services to the customers of all strata in the society within the stipulations laid down the bank company act 1994 and rules and regulations formed by Bangladesh from time to time. Diversification of products and services and innovation of products suited to the needs of the customers in keeping with relevant rules and laws have made it different from other commercial banks of the country. As a fully licensed commercial bank, a highly professional and dedicated team is managing Prime Bank Ltd. ith long experience in banking. They constantly focus on understanding and anticipating customer needs.

As the banking scenario undergoes changes so is the bank and it repositions itself in the changed market condition. Prime Bank Ltd. has already made significant progress within a very short period of its existence. The bank has been graded as a top class bank in the country through internationally accepted CAMEL rating.

The bank has already occupied an enviable position among its competitors after achieving success in all areas of business operation. Prime Bank Ltd. ffers all kinds of Commercial Corporate and Personal Banking services covering all segments of society within the framework of Banking Company Act and rules and regulations laid down by our central bank. Diversification of products and services include Corporate Banking, Retail Banking and Consumer Banking right from industry to agriculture, and real state to software. The bank has consistently turned over good returns on Assets and Capital. During the year 2004, the bank has posted an operating profit of Tk. 747.

84 million and its capital funds stood at Tk 1664. 31 million. Out of this, Tk. 00 million consists of paid up capital by shareholders and Tk.

964. 31 million represents reserves and retained earnings. The bank’s current capital adequacy ratio of 12. 43% is in the market and much above the stipulated line of 8%. In spite of complex business environment and default culture, quantum of classified loan in the bank is very insignificant and stood at less than 1. 48%. Prime Bank Ltd.

, since it’s beginning has attached more importance in technology integration. In order to retain competitive edge, investment in technology is always a top agenda and under constant focus.Keeping the network within a reasonable limit, the strategy is to serve the customers through capacity building across multi delivery channels. The past performance gives an indication of strength.

The bank is better placed and poised to take their customers through fast changing times and enable them compete more effectively in the market they operate. 2. 2 Goals and Objective of the Bank: Maximization of Profit through customer satisfaction is the main objective of the Bank. In addition, the others relevant objectives are: 1.To be market leader in high quality banking products and services. 1. Active excellence in customer service through providing the most modern and advance technology in the different spheres of banking.

3. To participate in the industrial development of the country to encourage the new and educated young entrepreneurs to under take productive venture and demonstrate their creativity and there by participate in the national development. 4. To provide credit facilities to the small and medium size entrepreneur located in urban ; sub-Urban area and easily accessible by our branches. .

To develop saving attitude and making acquaintance with modern banking facilities. 6. To inspire for undertaking small projects for creation employment through income generating activities. 7. To play a significant role in the economic development of the country. 2. 3 The Vision ; Mission: To be the most efficient bank in terms of customer services, profitability and technology application. The Mission: 1.

Continuous improvement in business policies and procedures. 1. Cost reduction through integration of technology at all levels. 1. Converting all functions at quick services. . 4 Managing Director’s Opinion on customer services: Customers of Bank Asia Limited come from all walks of life from all ages and from every type of entrepreneurial activity. The bank counts among its customers, professional, business magnets, fares and public servants.

Among them are grandparents and infants, men and women, the big time industrialist and the small time shop owner. At the end of 2008 BAL had 170,800 customers including credit card holders, highest in the private sector commercial bank in the country. Every month some 1,400 new customers begin to ank with BAL. Whatever the transaction and customers need, BAL has tried to build long-term relationship. It is through these relationships that BAL has come to understand its customers and build value for them.

Bank Asia Limited believes that it gives its customers a world-class banking service through an IT based network of 70 branches. 2. 5 Capital Structure of Bank Asia Limited: The authorized capital of Bank Asia Limited is Tk. 1,000 million and the paid-up capital stood at the Tk. 600 million as on December 31, 2004. This excludes issue of proposes bonus share worth Tk. 00 million during the year under review.

Reserve fund of the Bank stood at Tk. 807. 92 million in 2004. The break up is as detailed in the next page: |Particulars |Tk( in million) | |Opening Balance |761.

43 | |Payment of dividend for the year 2003 |371. 65 | |Reserve before current year’s period 389. 78 | |Addition during the years |411. 14 | |Balance as on 31st December, 2004 |807. 90 | In addition to the reserve fund mentioned above fund, general provision for unclassified advances amounting to Tk.

131. 73 million stood at the year end 2004 and this amount is also available for calculating capital adequacy requirement.After taking all considerable components, total capital funds stood at Tk. 1664. 31 million as on December 31, 2004. As at the end of the 2004, total deposits stood at Tk.

16,902. 29 million, a 27% increase compared to the Tk. 13,259. 87 million from the year before. This is undoubtedly a remarkable progress considering volatile price situation for acquiring deposits.

Liability pricing came under stress on a number of occasions during last year. Because of the weak demand the bank had to realize pricing for different sets of liability. 2.

6 Deposit Performance:Bank Asia Limited is well able to mobilize substantial deposits through various deposit schemes. As on December end 2004, deposits under various schemes stood at Tk. 3644. 40 million in the last year showing an increase of around 37%. Deposit mix as on December 31, 2004 was as follows |Items |Tk (in million) |% of Total Deposit | |Current & other Deposit |4010. 40 |23. 73 | |Savings Bank Deposit |1946.

9 |11. 62 | |Bearer Certificate of Deposits |43. 92 |0. 26 | |Fixed Deposits |5674. 5 |33. 58 | |Short Term Deposits |1173.

44 |6. 94 | |Deposits Schemes |3644. 4 |21. 6 | |Bills Payable |391. 24 |2.

31 | |Total |16902. 29 |100 | [pic] 2. 7 Asset & Liability Performance: Bank Asia Limited ensures its available funds to meet obligation of maintaining statutory ratio (SLR) and investments of liquid assets were of Tk. 4387. 49 million as detailed below: Particulars |Amount Tk (in million) | |Cash in Hand |237. 57 | |Balance with Bangladesh Bank |1084. 77 | |Balance with other Banks |2233.

92 | |Money at Call |630. 0 | |Investment in Liquid Assets |201. 23 | |[pic] |4387. 49 | 2. 8 The Strategic Priorities of BAL: 1. To have sustained growth, broaden and improve range of products and services. 2. On delivery of quality service in all areas of banking activities with the aim to add increased value to shareholders investment and offer highest possible benefits to the customers.

. 9 Hierarchy of Bank Asia Limited: |Chairman | v |Board of Directors | v |Executive Committee | v |Managing Director | v |Deputy Managing Director | v |Company Secretary | v |Sr. Executive Vice President | v |Executive Vice President | v |Senior Vice President | v |Vice President | |Sr. Asstt.

Vice President | v |Assistant Vice President | v |First Assistant Vice President | v |Senior Executive Officer | v |Executive Officer | v (continued to next page) |Principal Officer | v |Senior Officer | v |Officer | v |Management Trainee | v |Junior Officer | |Assistant Officer | v |Trainee Officer | Chapter Three 3. 0 Product & Services of BAL 3. 1 Deposit Scheme: Bank is the largest mobilizer of surplus domestic savings.

The investment in its turn helps industrialization leading towards creation of wealth of the country. And the wealth finally takes the country on road to progress and prosperity. As such, savings is considered the very basis of prosperity of the country. The more the growth of savings, the more will be the prosperity of the nation.The savings rate in Bangladesh is one of the lowest in the world rate of domestic saving being 17. 78 %. In order to improve the savings rate, Financial Institutions responsible for mobilization of savings should offer attractive savings schemes so that the marginal propensity to save increases.

The savings do not, of course, depend only on the quantum of income but largely depend on the habit of savings of the people. BAL has formulated the following Savings Schemes 1. Contributory Savings Scheme 1. Special Deposit Scheme 1. Fixed Deposit Scheme 1. Prime Bank Insured Fixed Deposit Scheme . Monthly Benefit Deposit Scheme 1.

Education Savings Scheme 1. Prime Bank Money Scheme 1. Current / Savings Account Form 3.

1. 1 Contributory Savings Scheme: This is a Savings Scheme in which a person gets the opportunity to build up savings by contributing monthly installments and receives an attractive fixed amount at the end of a specified term. The Scheme is designed to help the fixed income group to save money and build up a sizable funds with which they can go for some income generating venture to improve the quality of their life and/or meet any future financial obligations.The salient features of the Scheme are given below: 1. The size of the monthly installment is Tk. 250, Tk.

500 and Tk. 1,000 to be deposited every month throughout the savings term. 2. The term of savings shall be for 5 years, 8 years and 10 years. 2.

A lump sum amount shall be paid to the depositor after maturity of respective terms of savings as per the following table: |Installment |Tk. 100 |Tk. 250 |Tk. 500 |Tk.

,000 | |Term |Amount Payable at Maturity (Taka) | |5 years |8,000 |20,000 |40,000 |80,000 | |8 years |15,000 |37,500 |75,000 |1,50,000 | |10 years |20,000 |50,000 |1,00,000 |2,00,000 | . Account under the Scheme can be opened on the separate form designed for the purpose. Introduction will not be required for opening of the Account. 1. The depositor will have the option to choose any installment at the time of opening of an Account but will not be allowed to change the size of installment afterwards. 1. Account may be opened in the name of individual or joint names of two individuals. Account in the name of minors can be opened under the Scheme to be operated by the guardian.

1.A person can open more than one account for different size of installments at any Branch of the Bank. 1. The Account holder may appoint a nominee (s) to receive the balance in the account. 1. The specified amount on maturity at any slab shall be paid after one month from the date of deposit of the final installment.

1. Normally no withdrawal shall be allowed before 5 (five) years. But, if any depositor intends to withdraw his savings due to certain unavoidable reasons before 5 (five) years, he will be allowed to do so, in the following manner: a. No benefit or interest shall be allowed for pre-mature encashment within one year. b).

If the account is closed after one year of its opening, benefit shall be allowed on the deposit at normal Savings Deposit rate. 3. 1.

2 Special Deposit Scheme: This is a Deposit Scheme where deposit Installment is issued for the full amount payable after a specified period against deposit of a certain amount. The minimum term of deposit is 5 years and the scheme provides beneficial scope for investment of Provident Fund, Trust Fund, Reserve Fund/ Security Fund of various Institutions.It will provide opportunities to the Wage Earners for profitable investment of their savings. The salient features of the Scheme are given below: 1. Deposit of Tk. 1, 00,000. 00 and multiples thereof may be invested under the Scheme. 1.

Bank will issue ‘Order Instrument’ payable to a particular person, organization, firm etc. for an amount payable at maturity as written on the face of the Instrument as per the following table: |Term |Initial Deposit (Tk. |Value Payable at maturity (Tk. ) | |5 years |1,00,000 |1,65,000 | |7 years |1,00,000 |2,00,000 | |10 years |1,00,000 |3,00,000 | 1. The Instrument shall not be encashable before maturity.It may, however, be discounted at the counter of the issuing Bank at any time @15% on the remaining period of maturity, if necessary. Any other Bank/ Organization/ Firm/ person can also discount the Instrument.

In case the Instrument is discounted by other Bank/ Organization/ Firm/ person, the Instrument may be retained with them till maturity or presented at the counter of the issuing Bank for immediate payment at the discounting rate. But, in no case the depositor shall receive less than the principal invested. 1.Incase of death of the payee before maturity, the amount of the Instrument will be paid at a discounted rate to the nominee of the payee or, in the absence of nomination, to the legal heirs of the payee on production of Succession Certificate. 1. The Instrument will be acceptable as primary/ collateral security against any advance / loan subject to registering the lien of the same with the issuing Branch of the Bank. 1. In case of loss of the Instrument, rules pertaining to issuance of Duplicate FDR after loss of Fixed Deposit Receipt (FDR) shall be applicable for issuance of ‘Duplicate’.

. 1. 3 Fixed Deposit Scheme: This type of deposit should be kept for a fixed term or period. Bank Asia Limited deals with the following terms deposit.

|Sl. No. |TERM |INTEREST RATE | |1 |30 days |6. 50% | |2 |3 months |8. 00% | |3 |6 months |9. 0% | |4 |1 year |9. 00% | |5 |2 years |8.

50% | |6 |3 years and above |8. 50% | 3. 1. 4 Bank Asia Insured Fixed Deposit Scheme: Bank Asia Limited offers this scheme in collaboration with ALICO. . Deposit shall be minimum Tk. 25, 000 or in multiple thereof 1. Insurance coverage shall be available upto Tk.

20 lacs. 1. Insurance coverage for natural death will be 100 % of deposit amount and another 100 % for accidental death. 1. The age of depositors should be between 18 to 45 years.

1. The rate of interest of this deposit is 10. 50 %. 1.

The minimum time for the deposit is 1 year. 3. 1. 5 Monthly Benefit Deposit Scheme: This is a deposit scheme where the depositor gets a fixed amount of profit every month without disturbance of the principal.The Scheme is designed to attract: 1. The retirement benefits of service holders. The depositor gets a monthly pension. 1.

The investment of Wage Earners who want to pay a fixed amount monthly to their families/ dependents in Bangladesh from the profit of their investment. 1. The deposit of those persons who intend to meet the monthly expense of their family from the income of their deposit. 1. Investment of fund of Trusts and Foundations, which award monthly scholarships/ stipends to students. 1.Parents who want to defray the educational expenses of their children from the monthly benefit of their deposit with the Bank. The salient features of the Scheme are given below: 01.

Deposit of Tk. 1, 00,000. 00 and multiples thereof shall be acceptable for the Scheme. 02. The Deposit shall be for a period of 5 (five) years.

The Principal amount is refundable on maturity. 03. Profit shall be paid on monthly basis @ Tk. 1,000. 00 per Tk. 1,00,000.

00. 04. The payment of monthly profit will start after minimum gap of 30 days from the date of deposit. 5. Normally, the deposit will not be encashable before 5 (Five) years.

But if any depositor intends to withdraw his deposit due to certain unavoidable reasons, he would be allowed to do so, in the following manner: 3. 1. 6 Education Savings Scheme: The educational expenses particularly the expenses for higher education are sharply increasing day by day in our country. Sometimes, the children are deprived of getting the desired level of education because of the inability of the parents to meet their educational expenses.

But the parents would not feel any difficulty to defray such expenses if a proper financial planning is made much ahead of time. Moreover, we are receiving demands from the Islamic minded people of our country for an attractive Savings Scheme on the basis of Islamic Sariah so as to encourage them to save in Islamic way for education of their children. With this end in view, Bank Asia Limited has introduced a Savings Scheme entitled “Education Savings Scheme” in accordance with the principles of Islamic Sariah i.

e. , on the basis of profit and loss sharing.The scheme provides a unique opportunity to the parents to make a future provision for the educational expenses of their children when they enter into Schools, Colleges and Universities out of the benefit of a small amount of savings with the Bank at an opportune moment. The salient features of the Scheme are given below: 01. Name of the Scheme shall be “Education Savings Scheme”. 02. The Scheme shall be implemented through our Islamic Banking Branch.

Deposit under the Scheme is acceptable at any branch of the Bank. The fund shall be transferred to Islamic Banking Branch.Similarly, the issuing Branch shall also make the payment of the Instrument under the Scheme on behalf of the Islamic Banking Branch. 03.

Deposit of Tk. 25,000/- and multiples thereof at a time will be accepted under the Scheme. 04.

The instrument shall be issued for 7 years, 10 years, 15 years or 20 years term. 05. The deposit is payable at maturity with benefit either in lump sum or on monthly basis as education allowance for 6 (six) years starting from the completion of the respective term as per the table shown in the next page: |Term |Initial Deposit (Tk. |Lump sum amount |Amount of Education | |  |  |payable at maturity |allowance per month (6 Years) | |7 years |25,000 |55,000 |1,000  | |10 years |25,000 |77,000 |1,500  | |15 years |25,000 |1,36,000 |2,500  | |20 years |25,000 |2,40,000 |4,500 | The lump sum amount and the monthly installments shown in the above table are computed on approximate basis. 3. 1.

7 Bank Asia Money Scheme: Rules & Regulations: 01. Advance against five years Bangladesh savings certificate a. Each unit of Five Years Bangladesh Savings Certificate shall be for Tk. 50,000/- b.

Customer shall deposit 20 % as margin and Bank shall provide 80% of the savings Certificate value as loan for purchasing the Certificate(s) from Bank Asia Limited. c. The Certificate(s) shall be held under lien. d.

Loan should be repaid in 60 equal monthly installments from the following month of disbursement. e. Installment per month will be Tk. 930/-per Tk. 50,000/- worth of certificate. Installment must be paid within 5th of every month. Penal interest @ 2% per month be charged for any delay.

f. After 5 years i. e. , on maturity of each unit of Certificate, the customer shall get Tk.

86,250/ i. e. , the benefit of the customer will be Tk. 20,450/0 per unit. 02.

Advances against Eight Years Defense Certificate a. Each unit of Eight Years Defense Savings Certificate shall be for Tk. 50,000/- b.Customer shall deposit 20 % as margin and Bank shall provide 80% of the savings Certificate value as loan for purchasing the Certificate(s) from Bank Asia Limited.

c. The Certificate(s) shall be held under lien. d. Loan should be repaid in 60 equal monthly installments from the following month of disbursement. e.

Installment per month will be Tk. 930/-per Tk. 50,000/- worth of certificate. Installment must be paid within 5th of every month.

Penal interest @ 2% per month be charged for any delay. f. After 8 years i. e. , on maturity of each unit of Certificate, the customer shall get Tk. 1,21,000/ i.

e. , the benefit of the customer will be Tk. 55,200/- per unit. 03. Advance against Five Years Family Savings Certificate (To Female Only a.Each unit of Five Years Family Savings Certificate shall be for Tk.

50,000/- b. Customer shall deposit 20 % as margin and Bank shall provide 80% of the savings Certificate value as loan for purchasing the Certificate(s) from Bank Asia Limited. c. The Certificate(s) shall be held under lien. d. Loan should be repaid in 60 equal monthly installments from the following month of disbursement.

e. Installment per month will be Tk. 380/- in cash and monthly interest for Tk.

550/ to be transferred to adjust loan account to the customer per Tk. 50,000/- worth of certificate. Installment must be paid within 5th of every month. Penal interest @ 2% per month be charged for any delay. f.

After 5 years i. e. on maturity of each unit of Certificate, the customer shall get Tk.

50,000/ i. e. , the benefit of the customer will be Tk. 17,200/- per unit. 04. Advance against Three Years 3 Monthly based Profit Savings Certificates. a.

Each unit of Three Years 3 Monthly based profit Savings Certificate shall be for Tk. 1, 00,000/- b. Customer shall deposit 20 % as margin and Bank shall provide 80% of the savings Certificate value as loan for purchasing the Certificate(s) from Bank Asia Limited.

c. The Certificate(s) shall be held under lien. d. Loan should be repaid in 36 equal monthly installments from the following month of disbursement. e. Installment per month will be Tk. 1, 638/.

Bank shall appropriate 3 monthly interest of Tk. 3,375/- every three months adjust the loan account per Tk. 1,00,000/- worth of certificate. Monthly installment is Tk.

2,763/-. Installment must be paid within 5th of every month. Penal interest @ 2% per month be charged for any delay. f. After 3 years i. e. , on maturity of each unit of Certificate, the customer shall get Tk. 1,00,000/ i. e. , the benefit of the customer will be Tk. 21,032/- per unit. 3. 2 Loan Scheme: BAL has formulated the following Loan Schemes 1. General Loan Scheme 1. Consumer Credit Scheme 1. Lease Finance 1. Hire Purchase 1. House Building / Apartment Loan Scheme 1. Advance against Share 1.Small and Medium Enterprise (SME) 3. 2. 1 General Loan Scheme: Depending on the various nature of financing, all the lending activities have been brought under the following General Loan: 1. Short term Loan 1. Medium term Loan 1. Long term Loan The loans are allowed to individual/firm/industries for a specific purpose but for a definite period and generally repayable by installments fall under this head. This type of lending are mainly allowed to accommodate financing under the categories (i) Large & Medium Scale Industry and (ii) Small & Cottage Industry. Very often term is financing for (i) Agriculture & (ii) Others. 3. 2. 2 Consumer Credit Scheme:In order to provide financial assistance to the limited income group for raising their standard of living by acquiring domestic durables like freeze, TV, Computer, Motor Car, etc. , they have introduced a Consumers Credit Scheme to improve the quality of life particularly of the fixed income earner of the society. Eligibility of Consumers: The Officers having confirmed/permanent job in any one of the following organizations and age between 20 to 50 years are eligible for availing of Credit facilities under the Scheme. 01. Government Organization. 02. Semi-Government and Autonomous Bodies. 03. Banks, Insurances Companies or any other Financial Institutions. 04. Armed Forces, B. D. R, Police and Ansar. 05. Private Organizations having corporate structure. 06. Teachers of Universities, Colleges and Schools.Besides the above, Professionals like doctors, engineers, architects, lawyers, journalists, chartered accountants; self employed business executives are also eligible for enjoying credit facilities scheme subject to the providing of Bank guarantee or insurance guarantee for the amount of Credit. Eligible Items / Articles: Credit shall be extended under the Scheme for buying the following items /articles: 01. Car, Station Wagon, Microbus, Motor Cycle, Bi- Cycle; 02. Refrigerator, Deep Freeze; 03. Television, VCR, VCP; 04. Radio, Two-in-one, Three-in-one; 05. Air Cooler, Air Conditioner, Water Cooler, Water Pump; 06. Personal Computer, Type Writer, Camera, Movie Camera; 07. Washing Machine; 08.Furniture like Dressing Table, Almirah, Khat, Sofa Set, Wardrobe, Show Case etc. . 3. 2. 3 Lease Finance: Lease financing is one of the most convenient long term sources of acquiring capital machinery and equipment. It is a very popular scheme whereby a client is given the opportunity to have an exclusive right to use an asset, usually for an agreed period of time, against payment of rent. Of late, the lease finance has become very popular in almost all the countries of the world. An obvious advantage of the lease is to use an asset without having to buy it. The lessee is obligated to make lease payments until the expiration of the lease agreement, which corresponds to the useful life of the asset.In a capital scarce economy like ours, lease financing is suitable for firms to acquire capital machinery, equipments, medical instruments, automobiles etc. And thereby employ their own resources more advantageously in some other investments. Lease financing also helps a firm to reap significant economic benefit through tax saving and by reducing the risk of the equipments becoming obsolete due to the technological advancement. Lease Items / Equipments: Bank Asia Limited offers lease finance for acquiring the use of capital machinery, equipments, medical instruments, etc. The customers are entitled to decide the specification, price and model of the lease item/equipment. Bank will purchase the item (s) in accordance with the specifications given by the clients.However, the suppliers of the items must ensure after sales services and warranties. The price should be competitive and acceptable to the Bank. Eligibility for Availing Lease finance: All genuine entrepreneurs having adequate experience and expertise are eligible to apply for lease finance under the scheme. The amount of lease finance will not generally exceed Tk. 1. 00 crore, but in exceptionally good cases, the limit can reasonably be exceeded on condition that the Bank will depute an officer for close and intensive supervision of the project. In other cases of lease finance for amount below Tk. 1. 00 crore, an officer of the bank will supervise a number of projects at a time according to convenience. 3. 2. House Building / Apartment Loan Scheme: Loans allowed to individual/enterprises for construction of house (residential or commercial) fall under this type of advance. The amount is repayable by monthly installment within a specified period. Such advances are known as Loan (HBL-GEN). Loans allowed to our Bank Employees for purchase /construction of house shall be headed Staff Loan (HBL-STAFF). 3. 2. 5 Advance against Share: In order to contribute to the development of the Capital Market of the country Bank Asia Limited extends credit facilities against pledge of Shares to the individuals as well as to the Member of DSE & CSE. Terms & Conditions: 01.For availing of credit facilities against pledge of shares the intending borrowers shall deposit shares of at least three (3) Companies, which are preferably registered in his/her name. 02. Credit facilities in the form of Secured Overdraft (SOD) Limit may be allowed upto 50% of the Value of shares pledged calculated on the basis of current market prices or previous 6 months’ average market prices, whichever is lower. 03. In case of ICB Unit Certificates SOD limit upto 80% of the face value Certificate may be extended. 04. The Share Certificates must be accompanied by form -117 containing the signature of the Shareholders duly checked and verified. 5. The maximum ceiling shall be Tk. 20. 00 Lac for individual borrowers. 06. The Stock Brokers of DSE ; CSE are eligible for availing of the SOD facility against pledge of shares upto Tk. 50. 00 lac ; Tk. 15. 00 Lac respectively. They will be required to keep lien of the original copy of the License issued by SEC. 07. Interest rate will be charged @ 15% P. A with quarterly rests or as may be amended from time to time. 3. 3 Master Card: MasterCard Credit Card holders of Bank Asia Limited can withdraw cash from the ATMs of Standard Chartered Bank bearing the logo of MasterCard located at Dhaka, Chittagong ; Khulna at any time, 24 hours, 365 days.Bank Asia Limited obtained Principal Membership of Master-Card International in the month of May 1999. Within a period of 6 months, the bank successfully launched Master Card-Credit Card, which created a new dimension in its customer service and consumer financing. The Special feature of the Prime Bank Master Card is that it bears the cardholder’s photo on the card, which is the first of its kind in Bangladesh and adds security against misuse. Bank Asia Limited issues 8 types of cards. These are Gold Local ; International and Silver Local ; International. Local cards can be used in Bangladesh only. Followings are the main feature of MasterCard Credit 1.Prime Bank ensures high level of security by inserting the account holder’s Photograph on the Card. 2. 20 to 50 days credit form the date of transaction. When the client receives his/her monthly statement, he/she can either choose to pay in full or just minimum due amount shown on the statement. No interest is charged if he/she pays in full within payment due date. 1. 24 hours a day, 365 days worldwide service. 1. No joining/administrative fees. 1. Waiver of annual fees for International Card: If the client accumulates 20,000 Prime Bank Bonus Point for Gold Card or, 10,000 Bonus Point for Silver Card in a year then he/she enjoys his/her Card without fees ($ 1 purchase: 1 Bonus). 1.Waiver of annual fee for Local Card: If the client accumulates 10,000 Prime Bank Bonus Point for Gold Card or 8,000 Bonus Point for Silver Card in a year then he/she enjoys his/her Card without fees (Tk. 50/- purchase: 1 Bonus point). 1. The Highest Prime Bank Bonus Point holder can enjoy free air ticket Dhaka-Bangkok-Dhaka. (Business Class). 1. Cash advance facilities. 1. 1, 39, 00,000 locations accept MasterCard worldwide. Facilities Available with the Card: The Card can be used for: a. Making payments to Merchants against purchase of all goods and services by the Cardholder form Marchant (s); and b. Availing Cash Advances: i. From any of BAL Branches or any member of MasterCard of any Merchant authorized to make Cash Advances; as may be agreed upon by BAL or ii. By the use of the Card on any ATM of BAL or of MasterCard.Subject to these terms and conditions and in compliance with such requirements, limitations and procedures as may be imposed by BAL, any Merchant or MasterCard from time to time. Credit Limit: BAL may sanction any credit limit, i. e. the maximum of credit available to the Cardholder which can be accessed at any one time, for the facilities under Condition 2 hereof and may terminate or modify or vary such facilities or credit limit without notice. Unless the credit limit is imposed in relation to each Card Account, the imposed credit limit is the limit applicable to the aggregate of the balances due to BAL on all Card Accounts of the Principal Cardholder and all Supplementary Cardholders.The limit imposed for Cash Advances shall be part of the credit limit imposed. Notwithstanding, any credit limit that may be sanctioned by BAL in its absolute discretion authorize and allow any Card Transaction even though the credit limit would be or has been exceeded or refuse to make or approve any Cash Advance or authorize or approve any Card Transaction notwithstanding that the credit limit is not exceeded. The credit limit shall be notified in writing to the Cardholder. The available credit is unused balance available to the Cardholder at any point of time. The available credit shown on Card Account Statement shall depict the amount available to the Cardholder as on the date of statement. Payment a.In respect of each Card Account Statement, the following stated therein shall be paid to Card Division at BAL’s Head Office within the Payment Due Date: I) at least the aggregate of the minimum payment(s) specified as such in the Card Account Statement; and ii) the amount, if any, by which the Outstanding Balances stated therein exceeds the credit limit in relation to the Card Account(s) stated therein. b. If, Outstanding Balance stated in Card account statement is not paid in full within the Payment Due Date stated therein, BAL may charge and debit the Card Account calculated on a daily basis, subject to a minimum monthly finance charge of 2. 50% or such other sum as may be determined from time to time by BAL without notice. c.On the amount of each and every charge stated in that Card Account Statement as from the date when such charge was incurred or was posted to the Card Account, as BAL may elect, to the billing date stated in that Card Account Statement and ii) On the entire Outstanding Balance from the billing date stated in that Card Account Statement until full payment of the Outstanding Balance is made. A charge in relation to any Card Transaction shall be deemed to have been incurred on the Card Account on the date when that Card Transaction was affected. d. If any amount required to be paid under Condition 7. 1 hereof is not paid in full by the Payment Due Date stated therein, BAL may charge and debit the Card Account a late payment charge at such rate or amount as BAL may from time to time determine without notice. Other Charges and Fees: BAL may charge and debit the Card relating to any Card a.An annual service fee for the issue or renewal of the Card at such rate as BAL may prescribe from time to time without notice and such fee shall not be refundable in any event. b. Where any cheque or Bankers’ Draft drawn to the order of BAL by Cardholder (or pursuant to Cardholder’s authorization) is not honored for the full amount thereon, BAL may assess a Service Charge for each Cheque so dishonored or returned to reimburse BAL for the cost and expenses of collection. c. An administrative fee of such amount as BAL prescribe from time to time without notice for the replacement of the card or for the provision of any records, statements, sales drafts, credit vouchers or other documents relating to the use of the Card or Card Account and copies thereof at the request of any Cardholder. d.A charge for each travel airline or hotel reservation made through the use of the Card which is subsequently cancelled or not taken up and such charge shall be at the rate prescribed by the Merchant with or through whom the reservation was made or at such rate as prescribed from time to time without notice; and Chapter Four 4. 0 Common Terms ; Their Operations at Customer Service 4. 1 Deposits: All deposits that are accepted by BAL like other banks may be classified into: 1)Demand deposits 2)Time deposits 4. 1. 1 Demand Deposits: These deposits are without notice; BAL accepts demand deposits through the opening of a) Current account a) Saving account a) Call deposits from the fellow bankers 4. 1. 2 Time Deposits:A deposits which is payable at a fixed date or after a period of notice is called time deposit. BAL accept time deposits through fixed deposits receipt, Short-term deposit, Bearer certificate deposit etc. a contact is done between the bank and the customer. When the officer opens an account in the name of a customer, there arises a contract between them. This contract will be a valid one only when both the parties are competent to enter into contracts. As account opening initiates the fundamental relationship and the banker has deal with different legal status, BAL officials remain very much careful about the competency of the customers. 4. 2 Procedure of Opening an Account:Before opening a current or saving account, the following formalities must be completed by the customer: 1. Application on the prescribed form 1. Furnishing photographs 1. Introduction by an account holder Putting specimen signatures in the specimen card 1. Mandate, if necessary After fulfilling the above formalities, BAL provides the customer a chequebook. 4. 3 Different Types of Deposit Accounts: BAL offers the following types of accounts and their formalities: 4. 3. 1 Current Account: In the name of individual: The client has to fill up alight green account form. Terms and conditions are printed on the back of the form. It contains the declaration clause, special instruction etc.Two copies of passport size photographs duly attested by the introducer are affixed with the form. In joint name: In this type, the formality is same as individual account, but in the special instruction clause, either ‘survivor’ or ‘former or survivor’ clause is marked. Proprietorship: In addition the customer has to submit the valid trade license and tax paying identification number (TIN) along with the application. Partnership: In case of partnership account, the bank asks for a) A copy of the partnership agreement (partnership deed) a) A letter signed by all the partners containing the following particulars: 1. The name and address of all the partners 1. The nature of the firm’s business 1.The name of the partners authorized to operate the account in the name of the firm, including the authority to draw, endorse and accepting the bill and mortgage and sell the properties belonging to the firm. Limited Company: On having the desire to open an account from a limited company, an officer of BAL asks for the following documents: a) Registration certificate from the registrar of join stock of companies a) Certificate of incorporation a) Certificate of commencement of business a) Memorandum of association a) Articles of association a) Copies of annual accounts a) Copy of the board’s resolutions, which contains: ¦The name of the persons who have been authorized to operate bank account on behalf of the company. ¦The name of the persons who are authorized to execute documents with the bank on company’s behalf.Societies, clubs, association: Incase of these sorts of accounts, BAL requires the following documents: a) Registration certificate under the societies registration act, 1962 a) Copies of memorandum, articles of association a) Resolution of the managing committee a) Power of attorney to borrow NGO: The account opening procedure is same but in exception is that registration certificate from the social welfare department of government must be enclosed with the application. Joint account in the name of minor: A minor cannot open an account in his own name due to the incapacity to enter into a contract. He can pent an account in BAL in join mane of another person who will be guardian of him. Illiterate person: An illiterate person can open an account.The thumb impression is taken in the specimen signature card with utmost care. Chequebook is issued to them but is kept under bank’s custody, BAL highly discourage this sorts of account. 4. 3. 2 Savings Account: To encourage saving habit amongst the public, banks allow depositors to open savings accounts. Interest is awarded on the balance of the account. The number of withdrawals is generally restricted. Requirements to open an account are as follows: a) Account opening form to be filled up by the applicant. a) Two passport size photographs attested by the introducer are needed. a) Passport or nationality certificate is required to open an account. ) Introductory reference to be obtained from account holder acceptable to the bank. a) Specimen signature of the application is taken on the signature card. a) In a saving account minimum Tk. 1,000 is required as balance. For opening every type of account a signature card and different register for different types of account is mentioned in the bank. An account number is given for each account and the description of the account is entered in the computer holder and to the introducer but in practice it is not done. 4. 3. 3 Fixed Deposit: It is also known as time liabilities or term deposits. These are deposits, which are made with the bank for a fixed period specified in advance.The bank need not maintain cash reserves against these deposits, and therefore, the bank offers high rate of interest on such deposits. In Bank Asia Limited, fixed deposit account is opened in two forms. One is midterm that is less than one year and the other is term deposit, which is more than one year. Procedure of Opening Fixed Deposit Account: The depositors has to fill an application form where in he or she mentions the amount of deposit, the period of which deposit is to be made and the name or names in which the fixed deposit receipt is to be issued. In case of deposits in joint name, BAL also takes the instruction regarding payment of money on maturity of the deposit.The banker also takes the specimen signatures of the depositors. A FDR is then issued to the depositor acknowledging receipt of the sum of money mentioned therein, it also contains the rate of the date on which the deposit will due for payment. 4. 3. 4 Short Term Deposit Account: In short term deposit, the deposit should be kept for at least sever days to get interest. The interest offered for STD is less than that of saving deposits in BAL. Various big companies, organizations, government departments keep money in STD accounts. Frequent withdrawal is discouraged and requires prior notice. 4. 3. 5 Closing of an Account: The closing of an account takes place: 1.If the customer desires to close the account 1. If BAL finds the account not in operation for a long duration 1. If garnishee order is issued by the court on BAL 2. To close the account, the chequebook is to be returned to the bank. BAL takes all the charges by debiting the account and the remaining balance is then paid to the customer. Necessary entries are given to the account closing register and computer. 4. 5 General Banking Instruments: There are different types of instruments by which different services are provided to the customers. These instruments are used to do the task smoothly and in a very efficient way. 4. 5. 1 Chequebook:According to section 60f negotiable instruments act, 1881, a cheque is “A bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand”. To facilitate withdrawals and payments to third parties by the customer, BAL provides a chequebook to the customer chequebook contains 10 leaves for savings account while for current account is 10 to 50 leaves. A chequebook issuing register is maintained in this regard. This register contains the chequebook number, leaf number, issuing date. After giving these entries to this register, information is sent to the computer department for taking the necessary steps to pass the Cheques during withdrawl. The chequebook also contains requisition slip, which is used by the customer to obtain new chequebook.When all the leaves are used, the customer submits the slip to the bank. A senior official then issues a new chequebook and subsequent entries are given in the register and in computer. If the chequebook is lost, the customer has to furnish a guarantee indemnifying the bank. After fulfilling this, a new chequebook is issued. Seldom customers are allowed to use loose cheques if the customer wants to draw money without presenting previously issued cheque. A separate register is maintained in this regard. But this is highly discouraged in BAL. 4. 5. 2 Pay order: A pay order is a written order, issued by a bank, to pay a certain sum of money to a specified person or a bank.It may be said to be a banker cheque as a bank drawn upon and payable issues it by itself. A pay order is issued and paid by the same branch of a bank and such, the drawer and the drawee are the same. The person or the organization in whose favor it is issued is known as payee or the beneficiary. It is sometimes sold to the individual on payment of value to may or may not be a customer and is called the purchaser. The purchaser should sign the standard application form giving detailed particulars and request for issue of pay order. The payee or beneficiary must not appear to be fictitious. His full name and address should be written on the application.Bank should recover commission of pay order from the purchaser. A pay order is divided into three parts viz. The actual pay order, the second counterfoil to be returned by the payee and the first counterfoil to be retained by the issuing branch as record. 4. 5. 3 Pay Slip: A pay slip is written authorization for making payment-specified person or firm payable by issuing branch, for a discharge liability of the bank. As pay slip is originated made payable by the bank in a receipt form there is no need for any application for its issue. A pay slip is issued to effect payments on account of bills payable for goods and services purchased or availed by it.For example, bank is required to make payment of bills for the purchase of furniture ; fixture, for printing ; stationary and for any other works done on its behalf by the other party on agreement with the bank. 4. 6 Mail Transfer: Mail transfer is an advice regarding remittance of funds sends by one branch of the bank to another branch of the same bank, at the written request of the application. The mail transfer contains the name and address of the remitter. It is a nonnegotiable instrument and generally is not handed over to the customer rather sent through post office to the concerned branch for credit to the respective account. In some cases, full address of the beneficiary required to be maintained by the applicant. Such M. T. s an advance and treated as a credit voucher of the paying branch, no separate advice is issued by the issuing branch. On receipt of the M. T. payment is made by debit to issuing branch through SB account. 4. 7 Dishonor of Cheque: If the cheque is dishonored, BAL sends a memorandum (cheque return memo) to the customer stating the reason in the following way: 1) Insufficient fund 1) Refer to drawer 1) Not arranged for 1) Effects not cleared, May be presented again 1) Exceeds arrangements 1) Full cover not received 1) Payment stopped by drawer 1) Payee’s endorsement irregular/illegible/required 1) Payee’s endorsement irregular, requires bank’s confirmation 1) Drawer’s signature differs/required ) Alternations in date/figures/words require drawer’s full signature 1) Cheque is post dated/out of date/mutilated 1) Amount of words and figure differs If the cheque is dishonored due to insufficiency of funds, BAL charges Tk. 50 as penalty. If the cheque is lost then the customer must inform the police and should take a copy of G. D. The customer then fills an indemnity for guarantying that the cheque is lost. When the bank is convinced with having the above documents bank gives to the customer a new chequebook. 4. 8 Clearing: In this unit, all the cheques of BAL and other banks of Bangladesh are dealt. There are two kinds of clearing process. 1. Inward clearing 1. Outward clearingInward clearing process cheques of BAL, Banani branch are deposited in other banks and sent back to Banani branch of BAL through clearinghouse for collection of money. In this process, cheques of Banani branch BAL are sent to local office of BAL at first. Then the local office sent those cheques to the Banani branch. 4. 8. 1 Process of inward clearing: After receiving cheques from the local office of BAL, those cheques are directly send to the computer section for checking the balance of those specific accounts from which money should be collected. If the required balance available there then amount is debited from that account and the cheque is honored.But incase if the require balance is not available the authorize officer of clearing department immediately informs to the head of the customer service or he tries to connect the account holder. If the account holder does not deposit the required balance immediately the cheque is dishonored. Finally the authorized officer gives all the entry of those cheques in inward clearing register. The format of the register book is given below: |SL# |Bank Name |Branch Name |Cheque No. |Amount |Drawn on |Remarks | | | | | | | | |After giving the entries, a credit advice is sending to the local office of Bank Asia Limited. 4. 8. 2 Process of outward clearing: For outward clearing cheques, the bearer of the cheques must have an account in Banani branch of BAL. After the submission of the cheques, authorized officer gives the entries in software, which is provided by Bangladesh bank. The name of the software is Nikash. After giving all the entries are printed and are enclosed with the cheques. Then all the cheques with the enclosed sheets are sent to the local office of BAL for the collection of money. The local office sends it to clearing house. Send For Collection: Customer deposits cheque, drafts, etc. for collection along with deposit slip.Instruments within the range of clearing are collected through local clearinghouse, but for outside the clearinghouse range are collected through OBC. Customer of BAL, Panthopath branch, Dhaka may deposit a cheque of BAL, Moulvibazar branch. For this purpose the collection bank, Prime Bank, Panthopath branch will do as follows: 1. The cheque is first deposited with the help of a slip. 1. The collecting bank gives a crossing with prime Bank, Panthopath branch. It indicates that the mentioned bank is the collecting bank. 1. Entry for outward clearing register is given with clearing seal and giving the cheque a ‘S’ (subsidiary) seal. 1. The cheque is then registered in SC register and a SC number is given. 1.Endorsement is giving like payee’s account will be credited on realization. 4. 9 Online Banking Operation: The bank has set up a wide area network across the country to provide online branch banking facility to its valued clients. Under the scheme, clients of any branch shall be able to do banking transaction at other branches of the bank. Under this system a client will to do the following type of transaction: 1. Cash withdrawal from his or her account at any branch of the bank irrespective location. 1. Cash deposits in others account at any of the bank irrespective of location. 1. Cash deposits in his or her account at any branch of the bank irrespective of location. 1.Transfer of money from his or her account with any branch of the bank. 1. Any amount can be deposited or transferred under Prime line. In the system, however, at present there is a limit for cash withdrawal through bearer or by account holder himself. Chapter Five 5. 0 Customer Relationship Management 5. 1 Customer Service: Customer service refers to provide services at the right time at the right place and to the right people. 5. 2 Characteristics of Services: Intangibility: Service cannot be seen but may be realized. Inseparability: Service and service provider cannot be separated. Variability: Service may vary from time to time. 5. 3 Relationship Marketing:Relationship marketing is the practice of building long term satisfying relations with key parties in order to retain their long-term preference and business. Smart marketers try to build up long-term trusting relationships with valued customers. 5. 4 Importance of Customer Relationship Management: Customer relationship indicates the effective customer service. A customer service assures that one thing. Customer satisfaction is the top priority. The reasons are: a) To know customers attitude towards the bank. a) Understanding of what the customer really wants. a) Quickly providing answers to customers’ inquiries and problems. a) Prompt call back. a) Friendly and responsive behavior. a) Making personalized services available whenever possible. a) Backing the product with an ironclad guarantee. ) Delivering more than promising every time. a) Giving customers the best value for their money. 5. 5 Customer Relationship Officer should always remember: i. )Rule#1 Customer is always right. Rule#2 If he is wrong then follow rule. ii. )A good customer is a good representative. iii. )Make the sense of satisfaction among the existing customer to retain the current profit and hunting new customers for further growth. iv. )A new customer creates 10 times higher costs than an existing customer. v. )They have the duty to assist the customer, not to advice them. vi. )Serve proper information. 5. 6 Criteria of Customer Relationship Officer (CRO): CRO should be: ) Productive. a) Knowledgeable about the offered product benefit. a) Knowledgeable to go through the balance sheets properly and analyzes that in a proper way. a) Updated about the banks policy. a) Able to prepare the credit report. a) Well conversant about the banks offered deposit, advance services. a) Showing courtesy, consideration, and concern in all of his dealings. a) Being honest, responsible and reliable. a) Well interpersonal skill. a) Convincing. a) Positive attitude. a) Instant decision-making power. 5. 7 Types of Banking Products and Services: a)Retail banking. b)Corporate banking. c)Deposit mobilization. d)Advance disbursement. e)Remittance.


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