Internship ReportOn

General Banking of Standard Bank Ltd

Prepared For :

Md.Zahidul Islam

Internship Supervisor

Department of Economics

Asian University of Bangladesh

Prepared By:

MD.KAMRUZZAMAN POROSH

ID No.: 201110323

Batch: 41

Program:BBA

Session:2010-2014

Asian University of Bangladesh

Declaration

I, MD.KAMRUZZAMAN POROSH hereby declare that the presented internship report on the title

“General Banking of Standard Bank Limited” is uniquely prepared by me after completion of three

months work in Standard Bank Limited.

I also confirm that, this report is only prepared for my academic requirement, not for any other purpose.

It has not been previously submitted to any other purpose or any other university or organization for an

academic qualification.

Signature :

..........................................................

MD.KAMRUZZAMAN POROSH

Department of Human Resource Management

Batch: 41st

Program:BBA

Session:2010-2014

Asian University Of Bangladesh

Letter of Transmittal

15, August , 2015

Md.Zahidul Islam

Department of Economics

Asian University Of Bangladesh

Sub: Submission of Internship Report.

Dear Sir,

This is my great pleasure to submit the Internship report of my 3 months long Internship program in the

Standard Bank Limited. The title of the report is “General Banking” Of Standard Bank Limited”. This

report has been prepared to fulfill the requirement of my internship program at my assigned organization

in the Standard Bank Limited.

I have put my best effort to make this report a successful one. It has been joyful & enlightening

experience for me to work in the organization & prepare this report. However this has been obviously a

great source of learning for me to conduct similar types of studies in the future.

I would like to express my sincere gratitude to you for your kind guidance & suggestions in preparing

the report. It would my immense pleasure if you find this report useful & informative to have an

apparent perspective on the issue. I shall be happy to provide any further explanation regarding this

report if required & please do not hesitate to call me if you have any query on this report or any other

relevant matters.

Sincerely Yours,

MD.KAMRUZZAMAN POROSH

ID : 201110323

Acknowledgement

A perfect completion of any type of report requires help from a number of a number of persons. I have

taken help from different people to do this Report. At the very outset, with all the impulse of our heart i

wish to express all my devotion and reverence to the Almighty Allah, most merciful beneficent creator

who has enable us to complete the Report on “General Banking activity of Standard Bank Limited “for

the fulfillment of the requirement for the report.

At the very first I wish to tender my sincere gratitude and deep indebtedness to my honorable internship

supervisor Md.Zahidul Islam , Department of Economic of Asian University of Bangladesh for his

valuable advice and guidance. Without his support it would have been very difficult for me to complete

this report.

I would like to say a big thank you to all the staff of Standard Bank Limited, Gulshan Branch, they made

my experience there very pleasant. Especially MD.Masud Miah, Branch GB incharge for his kind co-

operation and successfully completing my Internship programme in stipulated time.

Finally, I would like to express my sincere appreciation to Ariful Islam Apu, (Officer) & Khandakar

Faruque Ajom (FAVP) of (SBL) Standard Bank limited, whose liberal guidance, attention, advice,

suggestions and particularly firm encouragement always kept me toward a right path to complete the

study clearly.

EXECUTIVE SUMMERY

In the age of modern civilization bank is playing its spending role to keep the economic development

wheel moving .The corporation of the bank is needed in every economic activity. In fact there is hardly

any aspect of development activity where state inspired or otherwise where bank do not have role to

play. Standard Bank Limited is a third generation bank in Bangladesh. Standard Bank has incorporated

on May 11,1999 in head office at 122-124 Motijheel ,Chamber building, Dhaka, Bangladesh as a public

limited company with the permission of the Bangladesh Bank. The founder of SBL is committed to

“setting a new standard of banking”. The Authorized capital of the bank is BDT 55000(million) and its

Share holders Equity is BDT 8871(million) in 2015.The bank provides a broad range of financial

services to its customers and corporate clients in retail banking, corporate banking, and international

trade. The whole banking activities are divided into 3parts,General banking, Loan & Advances and

Foreign Exchange. One of the largest business carried out by the commercial bank is foreign

trading .The trade among various countries falls for close link between the parties dealing in trade. The

situation calls for expertise in the field of foreign operation. The bank which provides such operation ,is

referred to as rending international banking operation. Mainly transactions with overseas countries are

respects of import, export, and foreign remittance come under the preview of foreign exchange

transactions. International trade demands a flow of goods from seller to buyer and of payment from

buyer to seller .In this case the bank plays a vital role to bridge between the buyer and seller. The foreign

exchange department divides into three parts-export ,import and remittance. the export department deals

with export L/C, Amendment of L/C, Transfer of L/C,EXP issue charge. When the L/C amounts have to

be changed,then the amendments of L/C are needed. The expence sectors of export are –Courier/mailing

cost, Srationary cost, Parinting cost, Salary of the employee. Salary of the employee is the

administrative cost. But here to analyze the actual earning of export, I’ve to find out the totla expenses to

operate export department. Import sector is the most profitable sector in foreign exchange department of

SBL. The Export sector is also doing their level best. The import earning sectors are-commission for

L/C opening, Amendment of local L/C,Service charges, Collection of credit report of the beneficiary.

From commission for L/C opening and service charge, import department earns most. the expence of

export, import, and remittance is almost the same. The remittance earning consists from-Issuance of

cash and endorsement of passport, remittance by TT, Cash incentives handling charge etc. The portion

of foreign exchange earning from total earning is also satisfactory. So Standard Bank Limited is one of

the best leading bank in Bangladesh and this bank have to continue its performance analysis and have to

find out the ways how it can perform its activity much better.

ABBREVIATION USED :-

AD Authorized dealer

AVP Assistant Vice President

BL Bill of Lading

BTB L/C Back to Back L/C

CC Commercial Invoice

CCI&E Chief Controller of Import & Export

C&F Clearing & Forwarding

CIB Credit Information Bureau

CD Ac Current Deposit Account

DD Demand Draft

DPS Deposit Pension Scheme

D/A Document against acceptance

D/P Document against payments

ECC Export Cash Credit

EPB Export Promotion Bureau

ERC Export Registration Certificate

EXP Form Export Form

FDD Foreign Demand Draft

FDI Foreign direct investment

FDR Fixed Deposit Receipt

TT Telegraphic Transfer

FDBP Foreign Documentary Bill Purchase

IBC Inter Bank Collection

IBCT Inter Branch Credit Transaction

IBDA Inter Branch Debit Advice

IBCA Inter Branch Credit Advice

IMPF Import Permit From

IRC Import Registration Certificate

LAM Loan against merchandise

LCAF L/C Application From

LCAF L/C Authorization Form

PAD Payment against Document

PI Proforma Invoice

PSI Per shipment Inspection

STD Short Term Deposit

Chapter - 1

INTRODUCTION

Standard Bank Limited

INTRODUCTION

1.1 Introduction of the StudyFor Bachelor of Business Administration (BBA) student only theoretical knowledge is not enough for

handling the real life business situation. It is a great opportunity for the student to know about the real

business operations through the internship program. Internship program is the perfect blend of the

theoretical and the practical life experience. It is mandatory for any BBA student of Bangladesh

University of Business & Technology. As per requirement for completion of the internship I prepared

this report “General Banking of Standard Bank”, which includes the study of various international trade

financing tools and settlement process and financial analysis of the SBL.

1.2 Background of the Report

Bachelor of Business Administration (BBA) is a professional undergraduate course. The course is

designed with an excellent combination of practical and theoretical aspects. After completion taught

courses of BBA, a certain time is kept for internship. As a student of BBA, internship is an academic

requirement. For internship every student is required to work in a selected institution to enhance ones

practical knowledge and experiences. After completing the internship prepared a report on the

knowledge of internship. From that perspective this report is prepared on “Performance of Foreign

Exchange Operations of Standard Bank”,

1.3 Significance of the Report

This internship report is an important partial requirement of four years BBA graduation program. This is

because knowledge and learning become perfect when it is associated with theory and practice. That is,

student can train and prepare themselves for the job market. A poor country like Bangladesh has an

overwhelming number of unemployed educated graduates. As they have no practical experience been

able to gain normal professional knowledge to establish networking, which is important in getting a job.

Therefore, it is obvious that the significance of internship is clearly justified as the crucial requirement

of four years BBA graduation.

1.4 Scope of the study :

The report covers the details of Standard bank Limited’s practices about all activities. This report consists of the writer’s observation and on the job experience during the internship period in the Gulshan Branch. The report emphasizes on the sequential activities involved and used by Standard Bank Limited for all transactions. It also focuses on the impact of foreign exchange activities upon clients. Finally, it incorporates an evaluation of the different aspect of the export-import process & financial performance of the bank and recommends some measure which may help to develop the quality of the bank.

1.5 Objectives of the Report

The main objectives of this report are to concentrated on issues related to the operation of foreign

exchange department of Standard Bank Limited. However, the details objectives can be divided into two

parts and these are:

Broad Objectives:

The broad objectives of this report is to analyze the performance of foreign exchange operation of

Standard bank Ltd.

Specific Objectives:

There are some specific objectives also:

To analyze the Import and Export performance of SBL.

To analyze the Remittance performance of SBL.

To identify some problems in foreign exchange operations and make possible recommendation

to improvement.

1.6 Methodology

Methods followed to perform a job or conducting activities to complete a task is called methodology. In

conducting this study the following methodology was adopted in collecting data and information,

preparation of reports etc. The methodology of report is given below.

Research Type:

This is a Descriptive Research, which briefly reveals the overall foreign exchange performance of

Standard Bank limited.

Sources of Data

To prepare this report all the necessary information collected from …

Secondary sources

Secondary sources of data

Annual Reports of Standard Bank limited, 2010,2011,2012,2013,2014 &2015 other published

documents of the, Standard Bank’s Website.

Data Analysis and Reporting : This report has prepared after completing three months internship in

Standard Bank at Gulshan branch. So it was a great chance to observe the foreign exchange operations

of SBL very closely. Required primary data has collected from various office file and bank voucher. It is

not possible to publish that primary data for the bank secrecy. All the secondary data are attached in

appendix part. Different types of computer software’s are used to analyze collected data such as-

Microsoft Word, Microsoft Excel, Microsoft PowerPoint also analyzed by the trend analysis and cross

sectional analysis.

1.7 Limitations

This report might be limited with some constraints. Details of many aspects of the services of Standard

Bank Limited have been skipped in this report due to various constraints, including time and space.

Moreover, one of the main barriers in writing this report was the confidentiality of data. Besides, for the

preparation of this report I found that there are some limitation exists though I have given my greatest

effort. Such as:

The bankers are very busy with their job which lead me little time to consult with.

Category wise export, import and remittance business; amount originated from the international

trade is missing in the report for their restriction.

In many cases, up to date information was not published.

All the branches of the sample banks were not physically visited.

Non-availability of reference books is another limitation.

Due to time limitation many of the aspects could not be discussed in the present report. Learning

all the functions within just 60 days is really tough.

However, omitting the limitations, the report will help to understand the Foreign Exchange Performance

of the Bank.

Chapter - 2

OVERVIEW

OF STANDARD BANK LTD.

Standard Bank Limite

2.1 STANDARD BANK LIMITED : AN OVERVIEW

SBL AT A GLANCE :

Name : Standard Bank Limited

Incorporation : May 11, 1999

Commercial Operation : 3rd June, 1999

Slogan of Company : “Setting a new standard in banking "

Type of Company : Commercial bank

Main Business : Providing Term loans to Small Scale Enterprises and Operating Full-fledged commercial banking service

Authorized Capital : 45,000 Million

Paid up Capital : 25,061 Million

Total Assets : 94953 Million

Investments : 9534 Million

Equity : 9248 Million

No. of Employees :  2000 employees

Total No. of Branches : 100

ATM booth : 19

Ownership : Public Limited Company

Years in Business : 16 years

SBL Logo :

2.2 Background

The banking sector of Bangladesh comprises of three categories of schedule banks. These are

nationalized commercial banks (NCBs), private commercial banks (PCBs) and foreign commercial

banks (FCBs). Private commercial banks are again divided into three categories- First generation,

Second generation and Third generation. Standard bank falls into the third generation segment and

undoubtedly leads its own generation. As an intern from business discipline with major in finance I have

got the opportunity to work with this bank and try to put my effort to make a depth study.

Standard Bank Limited is a scheduled Bank under private sector established under the ambit of Bank

Company Act, 1991 and incorporated as a public limited company under Companies Act, 1994. The

Bank started commercial banking operations effective from June 06, 1999. During this short span of

time the Bank had been successful to position itself as a progressive and dynamic financial institution in

the country.

2.3 History of Organization

Standard Bank Limited (SBL) was incorporated as a Public Limited Company on May 11, 1999 under

the Companies Act, 1994 and the Bank achieved satisfactory progress from its commercial operations

on June 03, 1999. SBL has introduced several new products on credit and deposit schemes. It also goes

for Corporate and Retail Banking etc. The Bank also participated in fund Syndication with other Banks.

Through all these myriad activities SBL has created a positive impact in the Market.

2.4 Vision, Mission, Core values & Objectives of SBL

Vision

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

Mission

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

Core Values of Standard Bank Ltd.

Our shareholder: By ensuring fair return on their investment through generating stable profit.

Our customer: To become most caring bank by providing the most courteous and efficient

service in every area of our business.

Our employee: By promoting the well being of the members of the staff.

Community: Assuring our socially responsible corporate entity in a tangible manner through

close adherence to national policies and objective.

2.5 Objectives of the bank

The Motto of the Standard Bank limited is to explore a new horizon of innovative modern banking

creating an automated and computerized environment providing nonstop service and prepare itself to

face the new challenges of globalization and 21st century. The main objectives of Standard Bank Limited

are:

To provide high quality products and service to attract its potential market.

To caters to the need of its corporate clients and provides a comprehensive range of financial

services to national and multinational companies.

Act as a media of exchange.

To contribute to gross domestic product.

Maintain a satisfactory deposit mix.

To help to grow entrepreneurship.

Increase loan portfolio diversification and geographical coverage.

To help to solve unemployment problem.

Provide finance and specialized services to the export.

To help to boost economic development.

To earn profit.

The bank has already co-opted technological revolution in all its spheres.

2.6 Branches of SBL

From the year 1999 to year 2015 Standard Bank Limited established 100 numbers of branches in

different districts of Bangladesh. The principal Branch located in Metropolitan Chamber Building (3RD

Floor), 122-124 Motijheel C/A, Dhaka 1000, and Bangladesh.

2.7Organization Offerings:

Standard Bank Limited is always conscious of the changing needs of customers and strives to develop

new and improved services for its valued customers. Ban offers various deposit and lending products

and services to meet all kinds of financial needs of customers. Such as

Maintain all types of account.

Make investment.

Handle foreign exchange business.

Intend other banking sector etc.

SBL also collect TITAS bill, WASA bill, Telephone bill and Electricity bill.

Communication intensity Between Managers, Assistant or the Work Teams

Communication intensity between managers, assistant or the work team is moderately high. Or

achieving any kind of organization goal, most of the frequently communicate with each other. They are

bound to maintain frequent relationship with each other.

2.8 Functions of SBL

The key function of the organization is as follows

To mobilize deposits.

To disburse investments

To handle foreign exchange and foreign business

Remittance: To remit money to home and abroad through T.T, D.D, Pay-order, Travelers

cheque, etc.

Other services: e.g. Locker service, to receive different types of bills of clients to issue

Guarantees and counseling etc.

2.9 Major Division of SBL

The banking system of Standard Bank Ltd. is divided into three major divisions. These divisions are

–

1) General Banking

2) Advance & Loan Banking

3) Foreign Exchange Banking.

Division of SBL

Figure-1: Division of SBL

2.10 Management hierarchy of the Standard Bank Ltd.

Source: Official Document

Figure 3: Organizational configuration of ever Branch’s, Standard Bank Ltd.

2.11 Correspondent Banking Division

FOREIGN EX. DEPARTMENT

OFFICER

JUNIOR OFFICER

ASSISTANT OFFICER

TRAINEE ASSISTANT

OFFICER

OFFICER

JUNIOR OFFICER

ASSISTANT OFFICER

TRAINEE ASSISTANT

OFFICER

GENERAL BANKING

DEPATMENT

INVESTMENT DEPARTMENT

EXECUTIVE OFFICER

BRANCH MANAGER

VICE PRESIDENT

2nd OFFICERSENIOR PRINCIPAL

OFFICER

EXECUTIVE OFFICER

OFFICER

ASSISTANT OFFICER

TRAINEE ASSISTANT

OFFICER

JUNIOR OFFICER

EXECUTIVE OFFICER

The main aim of Standard bank limited is to increase its foreign exchange business and in this

connection they are doing international banking with all major banks of the world. At present they are

maintaining correspondent banking relationship with 23 major banks of the world. These are:

The Hong Ko

ng and Shanghai banking corporation. Citibank N.A., Standard chartered bank, American Express bank

ltd., Mashreq bank PSC.,Wcchovia bank, The bank of Tokyo-Mitsubishi ltd.,Union De Banques Et

Arabes Francaises, Danske bank ltd.A/S,Commerz bank ,Dresdner bank, Bank Islam Malaysia

Berhad,Nepal Bangladesh bank ltd., NIB bank ltd.,Arab Bangladesh bank ltd., AB international finance

limited, Bhutan national bank,UTI bank ltd.,The bank of Nova Scotia and ICICI bank limited Habib

bank Ag Zurich, Nordea bank and Samen bank.

Standard bank limited is maintaining drawing arrangement with 1(one) exchange house in the UK and

another 1 (one) in the USA for inward foreign currency remittance. These 2(two) exchange house are

remitting sufficient funds through our bank. Establishment of some exchange house in the U.A.E. are

going to execute very soon.

Chapter - 3

AN OVERVIEW OF GULSHAN BRANCH

Standard Bank Limited

AN OVERVIEW OF GULSHAN BRANCH

BackgroundThe banking sector of Bangladesh comprises of three categories of schedule banks. These are

nationalized commercial banks (NCBs), private commercial banks (PCBs) and foreign commercial

banks (FCBs). Private commercial banks are again divided into three categories- First generation,

Second generation and Third generation. Standard bank falls into the third generation segment and

undoubtedly leads its own generation. As an intern from business discipline with major in finance I have

got the opportunity to work with this bank and try to put my effort to make a depth study.

Standard Bank Limited is a scheduled Bank under private sector established under the ambit of Bank

Company Act, 1991 and incorporated as a public limited company under Companies Act, 1994. The

Bank started commercial banking operations effective from June 06, 1999. During this short span of

time the Bank had been successful to position itself as a progressive and dynamic financial institution in

the country.

History

Standard Bank Limited, Gulshan Branch is located at,Shezad Palace 32, Gulshan North C/A Gulshan

Avenue Gulshan-2, Dhaka-1212.The branch is established in 2008.The branch consists of three

divisions (General banking, Loans ,Cridit & Advances and Foreign Exchange) and I worked in the

foreign exchange division.

3.2 Organogram of Gulshan Branch

The in-charge of the branch is SVP and the lower rank is junior officer. The positional hierarchy of

Standard Bank Limited, Gulshan Branch is given below:

Figure 4: The Positional Hierarchy of SBL, Gulshan Branch

Senior Vice President (1)

Senior Executive Officer (1)

Senior Officer (3)

Officer (1)

Probationary Officer (2)

Junior Officer (2)

Assistant Officer (1)

Staff (4) Source: Official Document

*Data inside bracket indicate number of staff.

3.3 Major features of this branch are

Fully Computerized accounts maintenance.

A fully operational computer network which is currently being implemented. The work of Local

Area Network (LAN) and Wide Area Network (WAN) installation having reliable and secured

communication between the branches and the Head Office is in progress to facilitate any Branch

Banking and ATM Services.

Money counting machine for making cash transactions easy and prompt.

Branches are authorized dealers of foreign exchange. This facilitates speedy disposal of transaction of

export and import trade.

Chapter - 4

SBL Standard Bank Limited

4.1 General Banking

During my internship, I was placed in Gulshan-2 Branch of the Standard Bank Ltd. First I have completed General Banking in this branch. General banking department is the heart of all banking activities. This is the busiest and important department of a branch. General banking of this branch consists of different sections namely,

1) Account opening section

2) Cheque Book issue

3) Dispatch Section

4) Deposit section

5) Cash section

6) Remittance section

7) Clearing section

8) Accounts section

According to the law and practice, the Banker-Customer relation arises only from contract between these two. And opening of account is the contract that establishes the relationship between a banker and a customer. So this section plays a very important role in attracting customer and therefore should be handled with extra care.

According to the international code of conduct banks should maintain the following steps regarding their customers-

Banks will act fairly and reasonably in all their dealings with their customers. Banks will help customers understand how their accounts operate and seek to give them a good understanding of banking services.Banks should maintain confidence in the security and integrity of banking and payment systems.

4.2 ACCOUNT OPENING SECTION:

Account opening is the gateway for clients to enter into business with bank. It is the foundation of banker customer relationship. This is one of the most important sections of a branch, because by opening accounts bank mobilizes funds for investment. Various rules and regulations are maintained and various

documents are taken while opening an account. A customer can open different types of accounts through this department. Such as:

i. Savings Accountii. Current Account

iii. Short Term Deposit (STD) Accountiv. Fixed Deposit Receipt (FDR) Accountv. Deposit Scheme Account.

4.3 Savings Account

This deposit is primarily for small-scale savers. There are certain limitations in Savings Account, i.e, customer can draw only twice a week, if they want to get interest on the deposited money. If a customer draws more than twice in a week he will not receive any interest for that month . Heavy withdrawals are permitted only against prior notice. Some Important Points are as follows-

Minimum opening deposit of Tk.500/= is required; Below 1.00 lac interest rate is 6%, Tk. 1.00 lac to 5.00 lac interest rate is 8%, above 5.00 lac interest rate is 8.50%.Minimum Tk. 500/= balance must always maintain all the time;Withdrawal amount should not be more than 1/4th of the total balance at a time and limit twice in a month.

Customer Benefit:

Cheque book facilityOpportunity to apply for safe deposit lockerUtility payment serviceCollect foreign remittanceTransfer of fund from one branch to another by-

- Demand draft- Mail transfer- Telegraphic transfer

Online banking service.

4.4 Current Deposit Account

The Gulshan-2 branch of Standard Bank facilitates customers with different types of current account. There are current accounts for individuals, proprietorship firms, partnership firms, joint stock company, school, college, association, trust and N.G.O. Account opening form for these categories are different.

Some terms and documents may differ but the overall process of account opening is similar to that of the saving account. Here I like to state what kinds of information to be furnished in the form and which documents customer should provide.

Current Account (individual): Gulshan-2 branch uses the forms distributed by the SBL head office for opening a current personal/ individual account. A customer should meet the following requirements to see an account has been opened in his/ her name

Name of the applicantProfession or business of applicantAddress of the applicantPhotographs of the applicantIntroduced by an account holder of the branchSignature on the application formSignature on the specimen signature cardVerification of details and signatures by authorized officer.

Current Account (Proprietorship: To open a proprietorship current account photocopy of trade license, attached by the concerned officer, is required along with the procedure mentioned for individual current account.

Current Account (Partnership: Opening procedure of a partnership current account is almost same as the opening of individual current account but some additional documents are required which are follows:

Partnership deedLetter of partnershipTrade license

Current Account (Joint Stock Company: All the formalities of individual current account opening should be met for the opening of joint stock company, additionally following documents also should be submitted to the bank. These documents are:

Registration certificate from Register of joint stock companiesCertificate incorporationMemorandum of associationArticles of associationAnnual audit reportCopy of board Resolution containingName of the persons authorized to operate the bank account on behalf of the company.Name of the persons authorized to deal documents with the bank.

SBL current account meets the needs of individual and commercial customers through its schedule benefit.

Minimum balance :Tk 500/-Interest rate : Nil

Customer Benefit:Cheque book facilityOpportunity to apply for safe deposit locker facilityCollect foreign remittance in both T.C. and Draft.Transfer of fund from one branch to another by

Telegraphic Transfer Demand Draft Mail Transfer

Collection of cheque through clearing houseOnline banking service.

4.5 Short Term Deposit (STD):

Short Term Deposit or STD account opening procedure is similar to that of the saving account. The difference is the interest rate.

Bank Deposit:

Amount Interest RateBelow 5 Crore 4%5-10 Crore 5.5%Over 10 Crore 6.5%

4.6 Other than Bank Deposit:

Public Bank Deposit: ( Govt., Semi Govt., Autonomous Body, Educational Institutions, Association, Trust and NGO)

Amount Interest RateUpto 1 Crore 6.00%Above 1-5 Crore 7.00%Above 5-10 Crore 7.50%Above 10 Crore 8.50%

Private Deposit:

Amount Interest RateUpto 1 Crore 5.50%Above 1-5 Crore 6.00%Above 5-10 Crore 6.50%Above 10 Crore 7.00%

Features:Minimum 7 days notice is needed for the withdrawn of the both STD. but it is now become practice to withdrawn money by the client without any earlier notice.If any financial organization or any autonomous bodies open this account then no excise duty will be deducted but tax will be deducted.Interest rate is calculated on daily basis.

4.7Fixed Deposit Receipt

Fixed Deposit is the amount deposited by the customer for a fixed period of time. It offers comparatively higher rate of interest. For 1 month interest rate is 8.5%, for 3 months interest rate is 8.75%, for 6 months interest rate is 8.75% and for 1 year interest rate is 8.75%.

Procedure of FDR Account:

Bank provides the interested customer a Fixed Deposit form.Customers fill the form, which contains name of the customer, amount of money, duration, rate of interest etc.After filling the form customer pay the money by cash or cheque.After receiving the form from the customer the respected officer look for the cash seal or transfer seal. If any of these are present and the form is properly signed the officer provides a specimen signature card to the customer.Customer signs thrice on the specimen signature card along with his or her full name.At the same time respected officer issue a fixed deposit receipt on the specific FDR block.This block includes:

Name of the customer Amount of money deposited Date on which the is deposited Due date- on which the FDR will be matured. Duration for which FDR has been made. Rate of interest to be paid.

An FDR is renewed automatically if the customer does not come to cash it after the maturity period. It can also be renewed upon the direction of the customer.

Features:Interest is compounded once a quarterLoan may be allowed up to 80% of the deposited amount under lien.Excise duty and source tax etc. are deductible from the depositor profit.

Deposit Scheme

Under deposit scheme, the Standard Bank Ltd (SBL) offers different types of products (scheme) to help the fixed income people to save money and meet any future financial obligations. The schemes offer a large amount of money after a certain period of time if the account holders deposit a specific amount on monthly basis. The schemes are-

I. Three stage savings schemeII. Monthly benefit scheme

III. Marriage savings schemeIV. Juniors savers schemeV. Lakhpati scheme.

4.8 Three stage savings scheme (TSSS)

The scheme is designed to help the fixed income group to save money and build up a sizable fund with which they can go for some income generating venture to improve the quality of their life and/ or meet any future financial obligations. Any citizen of Bangladesh can open this scheme. The scheme can be opened in the name of an individual only. TSSS is perfect for those 18 years of age or elder.

Product Name: The name of the scheme is “Three Stage Savings Scheme”.

Monthly Deposit AmountTo open the scheme requires monthly installment of BDT 500 or its multiple up to BDT 5000 till maturity. This is a fixed term deposit savings scheme.

TenureThe scheme is for 2, 4 & 6 years (every 2nd year is known as a stage), interest rate 8.5% to 8.75%.

Loan Facility:

Loan may be allowed up to 80% of the deposited amount under lien on the same after at least 2(two) years of regular payment of installments.

Monthly Benefit scheme (MBS)

The Monthly Benefit Scheme (MBS) is a deposit scheme where the depositor gets monthly benefit out of his deposit. The scheme is designed for the benefit of persons who intend to meet the monthly budget of their families from the income out of their deposit.

Any citizen of Bangladesh can open this scheme. The scheme can be opened in the name of an individual only. MBS is perfect for those 18 of age or older.

To open the scheme requires deposit of BDT 1,00,000/= or its multiples but maximum BDT 1,00,00,000/=. The deposit will be for a period of 2/3/5 years and the principal amount is refundable on maturity.

Monthly Benefit: Benefit will be as per the following example:

Terms (years) Deposit (BDT) Monthly Benefit (BDT)

Payable After Tax 10% (BDT)

2 years 1,00,000.00 900.00 810.003 years 1,00,000.00 900.00 810.005 years 1,00,000.00 945.00 850.00

4.9 DEPOSIT SECTION

Deposit is the lifeblood of a bank. From the history and origin of the banking system We know that deposit collection is the main function of a bank.

Accepting deposits:The deposits that are accepted by Standard Bank like other banks may be classified in to,—

a) Demand Depositsb) Time Deposits

a) Demand deposits:

These deposits are withdrawn able without notice, e.g. current deposits. Standard Bank accepts demand

deposits through the opening of,-

i) Current account

ii) Savings account

iii) Call deposits from the fellow bankers

b) Time deposits:

A deposit which is payable at a fixed date or after a period of notice is a time deposit. Standard Bank

accepts time deposits through Fixed Deposit Receipt (FDR), Short Term Deposit (STD) and Bearer

Certificate Deposit (BCD) etc.

While accepting these deposits, a contract is done between the bank and the customer. When the banker

opens an account in the name of a customer, there arises a contract between the two. This contract will

be valid one only when both the parties are competent to enter into contracts. As account opening

initiates the fundamental relationship & since the banker has to deal with different kinds of persons with

different legal status, Standard Bank officials remain very much careful about the competency of the

customers.

4.10 CASH SECTION

Banks, as a financial institution, accept surplus money from the people as deposit and give them opportunity to withdraw the same by cheque, etc. But among the banking activities, cash department play an important role. It does the main function of a commercial bank i.e. receiving the deposit and paying the cash on demand. As this department deals directly with the customers, the reputation of the bank depends much on it. The functions of a cash department are described below:

Function of Cash Department:

a.Cash Payment:1. Cash payment is made only against cheque

2. This is the unique function of the banking system which is known as “payment on demand”

3. It makes payment only against its printed valid Cheque

b. Cash Receipt1. It receives deposits from the depositors in form of cash

2. So it is the “mobilization unit” of the banking system

3. It collects money only its receipts forms

c. Cash packing:After the banking hour cash is packed according to the denomination. Notes are counted and packed in bundles and stamped with initial.

4.11 LOCAL REMITTANCE:Carrying cash money is troublesome and risky. That’s why money can be transferred from one place to another through banking channel. This is called remittance. Remittances of funds are one of the most important aspects of the Commercial Banks in rendering services to its customers.

Types of remittance:

Between banks and non banks customerBetween banks in the same countryBetween banks in the different centers.Between banks and central bank in the same countryBetween central bank of different customers.

The main instruments used by the Standard Bank of remittance of funds are

Payment order ( PO)

Demand Draft ( DD)

Telegraphic Transfer (TT)

Pay Order gives the payee the right to claim payment from the issuing bank. Payment is made from issuing branch only. Generally remit fund within the clearinghouse area of issuing branch. Bank charge only commission for this. However party must have an account with the bank, so that whenever the fund refund they(party) can collect it. But for the student and the pay order for job purpose of any applicant, account with the bank is not mandatory. Because in this case fund are non-refundable.

Demand Draft is an order of issuing bank on another branch of the same bank to pay specified sum of money to payee on demand. Payment is made from ordered branch. Generally remit fund outside the clearinghouse area of issuing branch. Payee can also be the purchaser. Bank confirm through checking the ‘Test Code’ Bank charge a commission and telex charge for it.

Issuing branch requests another branch to pay specified money to the specific payee on demand by Telegraph /Telephone. Payment is made from ordered branch. TT can be remit anywhere in the country. Bank charge a commission plus telephone charge. However this service is available only for a limited number of customer.

Test – key Arrangement: Test key arrangement is a secret code maintained by the banks for the authentication for their telex messages. It is a systematic procedure by which a test number is and the person to whom this number is given can easily authenticate the same test number by maintaining that same procedure. Standard Bank has test key arrangement with so many banks for the authentication of LC message and for making payment.

4.12 CLEARING SECTION:

Cheques, Pay Order (P.O), Demand Draft (D.D.) Collection of amount of other banks on behalf of its customer are a basic function of a Clearing Department.

Clearing: Clearing is a system by which a bank can collect customers fund from one bank to another through clearing house. Clearing House: Clearing House is a place where the representatives of different banks get together to receive and deliver cheque with another banks.Normally, Bangladesh Bank performs the Clearing House in Dhaka, Chittagong, Rajshahi, and Khulna & Bogra. Where there is no branch of Bangladesh Bank, Sonali bank arrange this function.

Member Of Clearing House: Standard Bank LTD. is a scheduled Bank. According to the Article 37(2) of Bangladesh Bank Order, 1972, the banks, which are the member of the clearinghouse, are called as Scheduled Banks. The scheduled banks clear the cheque drawn upon one another through the clearinghouse.

Types of Clearing:

A) Outward Clearing : When the Branches of a Bank receive cheque from its customers drawn on the other Banks within the local clearing zone for collection through Clearing House , it is Outward Clearing .

B) Inward Clearing : When the Banks receive cheque drawn on them from other Banks in the Clearing House , it is Inward Clearing .

Types of clearing house: There are two type of clearing house: Those are 1) Normal clearing house

2) Same day clearing house Normal clearing house :

1) 1st house: 1st house normally stands at 10 a.m. to 11a.m2) 2nd house: 2nd house normally stands after 3 p.m. and it is known as return house.

Same day clearing house:1) 1st house: 1st house normally stands at 11 a.m. to 12 p.m2) 2nd house: 2nd house normally stands after 2 p.m. and it is known as return house.

Who will deposit cheque for Clearing : Only the regular customers i.e. who have Savings, Current, STD & Loan Account in the bank can deposit cheque for collection of fund through Clearing house.

Precaution at the time of cheque receiving for Clearing, Collection of LBC, OBC & Transfer:

1) Name of the account holder same in the cheque & deposit slip. 2) Amount in The cheque & deposit slip must be same in words & in figure 3) Date in the cheque may be on or before (but not more than six months back) clearing house

date. 4) Bank & Branch name of the cheque, it’s number & date in the Deposit slip. 5) Cheque must be signed. 6) Signature for confirmation of date, amount in words / in figure Cutting & Mutilation of cheque. 7) Cheque should be crossed (not for bearer cheque). 8) Account number in the deposit slip must be clear. 9) Depositor’s signature in the deposit slip.

Return house: Return House means 2nd house where the representatives of the Bank meet after 3 p.m. to receive and deliver dishonored cheque, which placed in the 1st Clearing House.

Cheque may be dishonored for any one of the following reasons: 1) Insufficient fund.2) Amount in figure and word differs.

3) Cheque out of date/ post- dated.4) Payment stopped by the drawer.5) ………….Payee’s endorsement irregular / illegible / required.6) Drawer’s signature differ / required. 7) Crossed cheque to be presented through a bank.8) Other specific reasons not mentioned above.

The dishonor cheque entry in the Return Register & the party is informed about it. Party‘s signature required in the return register to deliver the dishonor cheque. After duration, the return cheque is sent to the party’s mailing address with Return Memo.If the cheque is dishonored due to insufficiency of funds than STANDARD Bank charges. 115/=as penalty.

4.13 Responsibility of the concerned officer for the Clearing Cheque: 1) Crossing of the cheque.2) (Computer) posting of the cheque.3) Clearing seal & proper endorsement of the cheque.4) Separation of cheque from deposit slip.5) Sorting of cheque 1st bank wise and then on branch wise.6) Computer print 1st branch wise & then bank wise.7) Preparation of 1st Clearing House computer validation sheet.8) Examine computer validation sheet with the deposit slip to justify the computer posting 9) Copy of computer posting in the floppy disk.

4.14 Bills Collection: In modern banking the mechanism has become complex as far as smooth transaction and safety is concerned. Customer does pay and receive bill from their counterpart as a result of transaction. Commercial bank’s duty is to collect bills on behalf of their customer. Types of Bills for Collection

i. Outward Bills for Collection (OBC).ii. Inward Bills for Collection (IBC).

OBCOBC means Outward Bills for Collection .OBC exists with different branches of different banks outside the local clearing house . Normally two types of OBC :

1) OBC with different branches of other banks 2) OBC with different branches of the same bank

Procedure of OBC:1) Entry in the OBC register.2) Put OBC number in the cheque.3) “Crossing seal” on the left corner of the cheque & “ payees account will be credited on

realization “ seal on the back of the cheque with signature of the concerned officer. 4) Despatch the OBC cheque with forwarding.

5) Reserve the photocopy of the cheque, carbon copy of the forwarding and deposit slip of the cheque in the OBC file.

Commission for collection:

Up to 1 lac ---------------------------------------------- 0.15%

Above 1 lac---------------------------------------------- 0.10%

Above 5lac ---------------------------------------------- 0.05%

Inward bills for collection (IBC)

When the banks collect bills as an agent of the collecting branch, the system is known as IBC. In this

case the bank will work as an agent of the collection bank. The branch receives a forwarding letter and

the bill.

Procedure of IBC:

1. IBC against OBC: To receive the OBC cheque first we have to give entry in the IBC

Register .The IBC number should put on the forwarding of the OBC with date.

2. Deposit of OBC amount: OBC cheque amount is put into the “sundry deposit-sundry Creditors

account”, prepare debit & credit voucher of it . If the OBC cheque is honored, send credit advice

(IBCA) with signature & advice number of the concern branch for the OBC amount.

3. If the OBC cheque is dishonored, the concerned branch is informed about it .

4. Again place in the clearing house or send the OBC cheque with Return Memo to the issuing

branch according to their information.

4.15 ACCOUNTS SECTION:

Accounts Department is called as the nerve Centre of the bank. In banking business, transactions are done every day and these transactions are to be recorded properly and systematically as the banks deal with the depositors’ money. . Improper recording of transactions will lead to the mismatch in the debit side and in the credit side. To avoid these mishaps, the bank provides a separate department; whose function is to check the mistakes in passing vouchers or wrong entries or fraud or forgery. This department is called as Accounts Department. If any discrepancy arises regarding any transaction this department report to the concerned department.

Besides these, the branch has to prepare some internal statements as well as some statutory statements, which are to be submitted to the Central Bank and the Head Office. This department prepares all these statements.

4.16 Workings of this department:

Recording the transactions in the cashbook.Recording the transactions in general and subsidiary ledger.Preparing the daily position of the branch comprising of deposit and cash.Preparing the daily Statement of Affairs showing all the assets and liability of the branch as per General Ledger and Subsidiary Ledger separately.Making payment of all the expenses of the branch.Recording inters branch fund transfer and providing accounting treatment in this regard.Preparing the monthly salary statements for the employees.

Preparing the weekly position for the branch which is sent to the Head Office to maintain Cash Reserve Requirement (C.R.R)

Preparing the monthly position for the branch which is sent to the Head Office to maintain Statutory Liquidity Requirement (S.L.R)

Make charges for different types of duties

Preparing the budget for the branch by fixing the target regarding profit and deposit so as to take necessary steps to generate and mobilize deposit.

Checking of Transaction List

Recording of the vouchers in the Voucher Register.

Packing of the correct vouchers according to the debit voucher and the credit voucher

4.17 Findings :

When I done a Focus Group Discussion with the employee of Standard Bank, I got the positive as well

as negative information and also got some information from their potential clients regarding their

service. Now I can separate this information in to two perspectives. This are: Banker and Customer

perspective.

Though Standard Bank has some limitation or lacking in their services but they have some positive side .

They mainly focus on accounts opening section. Their major revenue comes from accounts opening.

About 60% of their clients have a current and savings account in the bank. This makes them getting

more clients from reference to existing clients. Because they charge the least amount of balance to open

a current and saving account in the bank. Their majorities are corporate clients and most of them have

current and saving account in the bank.

4.18 Attractive scheme for exporter and importer

Standard bank offers some attractive an enthusiastic scheme for exporter and importers that enables

them to conduct sound business.

Charge Minimum Balance

For accounts opening Standard Bank charge a minimum balance which makes their clients more chance

to open an account in their bank.

Charge Low Fees

In case of opening a fixed account or savings account Standard Bank charge yearly fees which is very

low compare with other banks.

Online Banking Facilities

Standard Bank has stepped into the electronic banking age. Now, you can deposit and withdraw cash,

get mini statement, check balance and even transfer money within your accounts and pay installments

from any of the branches with online facility. This is just beginning of any branch banking under which

other branches will come soon.

Now focus the problems are:

Clearing Delay

Another problem in Standard Bank is clearing delay. Most of the department takes a long time to clear

the activities which takes a lot of time of the clients.

Queue Management

One of the major problems in Standard Bank is queue management. There is no well structured queue

management which cause clients wait for a longer period of time. Some times clients get the output after

his fellow client who makes him/her anger.

Lack of Training

Another problem among the employee of Standard Bank is lack of training. Due to lack of training

activities get hampered and delay which cause clients get frustrated.

Insufficient Employees

The major problem of Standard Bank is insufficient employees in their principal branch. Because

principal branch is the largest branch among all which cause a huge rush in the bank everyday. So due to

insufficient employees clients need to wait in the queue for a long time.

Priority Banking

Compare with Standard Chartered Bank, Standard Bank doesn’t have the facilities of priority banking.

So there loyal client doesn’t feel any extra facilities which feel by SCB clients.

Lack of Promotion

Like other competitive bank Standard Bank doesn’t go for much more promotion for their products or

services. It causes their customers unaware about their services. When I talk to their potential clients

most of them don’t know that Standard Bank have the online banking facilities. And this problem

happens due to their lack of promotion.

Lack of Communication between Management and Employees

There are lack of communication between top management and employees which cause to create a gap

between them and that makes hampered the service.

Unable to Deliver Quality Service

Due to lack of training or insufficient employees sometimes it is impossible to deliver Personal

Reference

The root problem in Standard Bank is personal reference. Without good reference it is simply impossible

to get a job or get a promotion in Standard Bank.

Chapter-5

Recommendation and Conclusion

Standard Bank Limited

4.19 Recommendation:

As per earnest observation some suggestions for the improvement of the situation arc given below:

To attract more clients SBL has to create a new marketing strategy, which will increase the total

export-import business. Effective and efficient initiatives are necessary to recover the default loans.

Attractive incentive package for the exporter will help to increase the export and accordingly it

will diminish the balance of payment gap of SBL.

Long-term training very much required for the foreign exchange official.

Computerized banking system and latest communication device are the most important elements

for this century. So, for the sound and stable foreign exchange operation, SBL has no alternative

but the modernization.

Foreign Exchange operations of other banks are more dynamic and less time consuming. SBL

should take some initiative to complete with those banks.

In our country financial problem is a great constraint in foreign trade. SBL is very conservative

for post-shipment finance. If bank stays in liberal position, exporters can easily over come from

financial constraint.

Bank can provide foreign market reports, which will enable the exporter to evaluate the demand

for their products in foreign countries.

Segregation of international trade transaction from the existing situation i.e. credit aspect to be

looked after by credit analyst in that department.

This department shall only remain engaged with the documentary aspects of international trade

like opening L/C for all types of import and negotiation of export bills.

The request of the credit facilities in the form of L/C (S), PAD (S), and ECC shall be assessed by

a separate department (credit department) for approval of the competent authority of the bank.

After approval of the credit lines in the account, this department shall convey to the foreign trade

department the operational conditions of the facilities to them for execution.

4.20 Conclusion

Banking sector no more depends on only on a traditional method of banking. In this competitive world

banking sector has stretched its wings wide enough to cover any kind of financial services. Not only

from the local banks but also from the foreign banks, the banks of today face a tough competition. The

major tasks of banks are to survive in this competitive environment by managing its assets and liabilities

in an efficient way. To make the assets especially loan and advances banks must have to more cautious

and otherwise these asset will became a burden for the bank. To have fruitful investment bank must have

to do the credit appraisal perfectly. Otherwise loan default culture will never end.

I have seen that Standard bank is not much different from other commercial bank of Bangladesh. It

follows the same practice and procedure which is followed by its elders. But one thing should be

mentioned that- its excellent management skills make its performance better than the previous, which

results number three in position among the commercial Bank in case financial performance.

References

1. Siddikee, M,J,A, Parvin ,S, And Hossain, M,S “Banking Scenarious in

Bangladesh” Bangladesh Research Publications,Journal,Vol-8,Issue-1 Jan-

Fe2013.pp 90-95 .

2. Gup, B.E, Kolari ,J,W “Commercial Bank Managment”, 3rd Edition 3. Madura ,J , “Financila Markets and institutions”4. Rose, Peter S & Hudgins, Sylvia C 2005, Bank Mangement & Financial

Services, 6th Edition, Mc Graw Hill International Edition, New work.5. Annual Report -2014 of SBL.6. Several Reports in SBL Library.7. Official website of SBL : www.Standardbankbd.com8. General Banking Mannual of SBL.