1.

1 Prelude
General banking is about the blend of distinctive divisions and the exercises performing in
banking operation. Essentially it indicates how division serves to gather cash from the one
customer and give to the next customer and to do as such it has unmistakable objective and in
addition objective. Continuously they attempt to satisfy their objective what really given by top
administration to achieve touch general objective of the bank through their branches. Every
single area of the branch is interrelated with other one not must be any off-base. So it's not
cerebral pain just that segment which has something incorrectly, it must be conveyed each
segment. Also, all areas are prepared to help one another to perform their exercises. The division
tries to make enthusiasm for clients' psyche through why they would come in the bank and what
might be the point of interest behind this. Individuals are getting intrigued to stores in the bank to
match time estimation of the cash and have security and in addition withdraw their cash in light
of requests and needs by paying checks. To be essential instruments interest security and
distinctive administrations assume as indispensable part to draw in the clients. Truth be told,
there is no connection in the middle of broker and clients with the exception of exchange related
exercises. What's more, that is the reason financier dependably tries to give best and novel
chance to the client through better administrations instead of different banks to hold them. In this
way distinctive exercises like check, pay request issue, neighborhood, remote settlement, stores,
account opening and so on are done by the offices.

1.2 Statement of the Problem

General Banking is the oldest banking in the banking history. An economy of a country depends
on banking sector greatly to be like wheels of vehicle. And the banks keep active the wheels of
economy through banking operation by transaction within the customers. It is very important role
what they are playing collecting money from the one group to landing another group where the
money is regulated all the time. And industry, firm, corporation is growing successfully by well
operating banking section to effective and quick service to the customer to help them. National
Bank Limited knows it very well how to survive well in the banking sector within the
competitive market launching different attractive product to increase deposit to create self-
different. And also it analyzes which sectors are more profitable to return back more quickly

1
what is invested. Researcher aim was to find it what services are and how collect deposit through
different packages. Researcher worked in general banking (accounts opening, deposit, clearance
in accounts department and remittance) that improved my professional learning. Therefore,
Researcher tried to describe what Researcher gained the information, knowledge from own
experience. This report will be a combination of different aspects of the banking deals and
operations under general banking activities.

1.3 Objective of the Study

The principal objective of the study is to evaluate the General Banking Performance of National
Bank Limited. To accomplish the principal objective following specific objectives have been
covered.
1. To highlight the overview of National Bank Ltd.
2. To highlight the policy & programs of general banking in National Bank Ltd.
3. To highlight the procedure of providing different general banking product of National
Bank Ltd.
4. To evaluate the performance of the National Bank Ltd. (with respect to the different
products) of general banking.
5. To identify the problems associated with general banking activities of National Bank Ltd.
6. To suggest some important policy measures for improving general banking performance
of the National Bank Ltd.

1.4 Scope of the Study

The report has covered of General Banking Performance of National Bank Limited., Anderkilla
branch. The data has also covered 5 years from 2015-2018.

1.5 Methodology of the Study

This report has been prepared on the basis of the experience gained during the period of practical
work. Data has been collected from primary as well as secondary sources but emphasis has been
made more on Secondary sources. Findings are based on practical work and method is as
follows:

1.5.1 Data Collection

2
The study has completed by the information collected from both primary & secondary data.

1.5.1.1 Collection of Primary data

The primary information was gathered through communicate personally with different level of
employees, managers, senior officers & other executives.

1.5.1.2 Secondary data

The secondary data & information was gathered from the following sources:

1. Annual report

2. Periodic Publication of the Bank.

4. General Banking Manuals.

5. Website of National Bank Limited.

1.5.2 Analysis of Data

The study has used descriptive statistics and different statistical tools like Mean for the analysis
data. The study has also used graph for absolute Trend Analysis.

1.6 Limitation of the Study

1. For the lack of practical knowledge, so shortcoming may be available in the paper.
2. The data and information related with the topic was not easily available.

3. Supply of more practical and contemporary data is another shortcoming

4. The duration of the Internship period was not enough to cover whole aspects

5. Another limitation of this report is Bank’s policy of not disclosing some data and information
for obvious reason, which could be very much use.

3
2.0 Introduction
This chapter covers the profit Historical Background of National Bank Ltd. Here we discuss the
differ Characteristics, mission, vision, organizational structure, officer level, products in the
bank.

2.1 Historical Background of National Bank limited

National Bank Limited is known for its successful past, superb present, imminent future and
under handling ventures and exercises. Built up as the first private bank completely claimed
by Bangladeshi business people, NBL has been thriving as the biggest private division Bank
with the progression of time in the wake of confronting numerous anxiety and strain. The
individuals from the top managerial staff are innovative representatives and driving
industrialists of the nation. To keep pace with time and in congruity with national and global
monetary exercises and for rendering every present-day administration, NBL, as a bank,
computerized all its branches with PC arranges as per the focused business interest of time.
Also, considering its expected future, the base of the Bank has been revising. The desire of all
class representatives, business people and overall population is a great deal more to NBL. At
present NBL have 204 branches under its branch system. Likewise, it is their powerful and
broadened way to deal with potential consumers and grabbing business opportunities. NBL is
going ahead as nonstop procedure to suit new clients by creating and growing country, SME
financing and seaward managing account accounts.

The development of National Bank Limited in the existing banks in the private sector was an
essential occasion in the Banking stadium of Bangladesh. At the point when the country was
in the grasp of serious subsidence, the administration took the farsighted choice to permit the
private division to recount the economy of the nation. A few dynamic business visionaries
approached for building up keep money with a maxim to revitalize the economy of the nation.

4
National Bank Limited was conceived as the initial hundred percent Bangladeshi possessed
Bank in the private area. From the very commencement, it was the firm determination of
National Bank Limited to assume an indispensable part in the national economy. NBL has
resolved to bring back the long-overlooked taste of bank management, and flavors. NBL
proceeds with the preservation that they need to serve every one instantly and with a feeling
of commitment and respect.

The then President of the People's Republic of Bangladesh Justice Ahsanuddin Chowdhury
initiated the bank formally on March 28, 1983 however the first branch at 48, Dilkusha
Commercial Area, National began business operation on March 23, 1983. The second Branch
was opened on eleventh May 1983 at Khatungonj, Chittagong.

At present, NBL has been carrying on business through its 204 branches &Agri Branches
spread everywhere throughout the nation. Since the absolute starting point, the bank has
applied much accentuation on abroad operations and took care of a sizable quantum of home
bound remote settlement. It has drawing competitive advantage with 415 journalists in 75
nations of the world, and additionally with 37 abroad Exchange Companies situated in 13
nations. NBL was the first local bank to set up account-based competitive advantage with the
world acclaimed Western Union keeping in mind the end goal to encourage brisk and safe
settlement of the significant outside trades earned by the exile Bangladeshi nationals. This has
implied that the ostracizes can dispatch their well-deserved cash to the nation without hardly
lifting a finger, certainty, wellbeing and velocity.

NBL was likewise the first among residential banks to present universal Master Card in
Bangladesh. Meanwhile, NBL has additionally presented the Visa Card and Power Card. The
Bank has in its utilization the most recent data innovation administrations of SWIFT and
REUTERS. NBL has been proceeding with its little credit program for payment of insurance
free horticultural advances among the poor ranchers of Barinas zone in Rajshahi area for
enhancing their work.

NBL concentrated on every key region covering capital ampleness, keeping up great resource
quality, sound administration, palatable procuring and liquidity. As an outcome, it was
conceivable to an account development of 175.51 percent with Tk. 8,809.40 million pre
assessment benefits in the year under audit over the former year. The net benefit after duty

5
and procurement remained at Tk. 6,860.34 million which was Tk. 2,070.47 million in the
earlier year enlisting a 231.34 percent rise. The aggregate accounts expanded to Tk.
102,471.83 million being 33.37 percent expansion over the previous year. Credits and
advances remained at Tk.92, 003.56 million in the year under report which was Tk.
65,129.289 million speaking to 41.26 percent ascend over the former year. Remote exchange
remained at Tk. 144,255.00 million in 2010 contrasted with Tk. 115,939.00 million, expanded
by 24.42 percent contrasted with that of the earlier year. Amid 2010, the bank took care of
internal settlement of Tk. 49,145.30 million, 10.73 percent higher than that of the earlier year.
Profit for Equity (ROE) enlisted a 77.84 percent ascends over the first year.

National Bank, has now obtained quality and ability to bolster the saving money needs of the
remote financial specialists. NBL ventured into another enclosure of business and opened its
Off Shore Banking Unit at Mohakhali to serve the pay workers and the remote financial
specialists better than anyone might have expected.

2.2 Mission and Vision of National Bank Limited

National Bank's Mission

Efforts for expansion of our activities by adding new dimensions to our banking services are
being continued unabated. Alongside, we are also putting highest priority in ensuring
transparency, accountability, and improved clientele service as well as to our commitment to
serve the society, through which we want to get closer and closer to the people of all strata.
Winging and everlasting place in the hearts of the people as a caring companion in uplifting
the national economic standard through continuous up gradation and diversification of our
clientele services in line with national and international requirements is the desired goal we
want to reach.

Vision
Ensuring highest standard of clientele services through best application of latest information
technology, making due contribution to the national economy and establishing ourselves
firmly at home and abroad as a front ranking bank.

6
2.3. Organizational Structure of National Bank Limited

The whole structure of the National Bank Limited is very important for understanding the
operations of the Bank. There is divisional office, regional office and large number of branch
offices of the National Bank Limited. All the offices are coordinated by the Head office of the
National Bank Limited.

Head Office

Divisional Office Divisional Office

Regional Office Regional Office

Branch Office Branch Office

Figure Structure of the National Bank Limited

7
Organogram of National Bank Limited
The organogram of National Bank Limited are as followed:

Chairman

Board of Director

Managing Director

Additional Managing Director

Deputy Managing Director

Senior Executive Vice President

Executive Vice President

Senior Vice President

Vice President

Senior Asst. Vice President

Assistant Vice President

Senior Principal Officer

Principal Officer

Senior Executive Officer

Executive Officer/ Probationary Officer

First Executive Officer

Junior Officer

Trainee Assistant Officer

Computer Operator

Sub. Staff
8
 Figure 2.2 Organogram of the Bank
Hierarchy of Anderkilla Branch

Any organization is operated by maintaining the principle of hierarchy to maintain the

operation of the organization. This will ensure the easy execution of the operation by the
employees of the organization. The Andarkilla Branch of National bank Limited has the
following hierarchy

Vice President

Principal Officer

Senior Executive Officer

Executive Officer

First Executive Officer

Junior Officer

Trainee Officer

Computer Operator

Sub. Staff

9
 Figure 2.3 Hierarchy of the Branch

2.4 Products of NBL Bank Ltd.

 Deposit Products

 Savings Deposit
 Current Deposit
 Term Deposit
 FC Deposit
 NBL Monthly Savings Scheme (NMS)
 Monthly Earning Scheme
 Double Benefit Account
 Millionaire Deposit Scheme (MDS)
 Apon Thikana Shanchoy Prakalpa (ATSP)
 Luxury Savings Deposit Scheme (LSDS)
 Shadhinota Product
 Century Deposit Scheme
 Loan Products

  Personal Loan
  Education Loan
  Car Loan Scheme
  House Building Financing
  House Reparing & Renovation Loan
  Home Improvement Loan
  Consumer Finance Scheme

 SME Banking

10
  Small Business Loan
  Lease Finance
  Working Capital Loan
  Festival Business Loan
  Festival Personal Loan

Cards

  Credit Cards
  Debit cards

  Remittance products

  Wage Earners Welfare Deposit Pension Scheme

  Overseas Employment Loan Scheme
  Special Interest rate on Deposit and Loan

Service Products:
 ATM Services
 Remittance Service
 Locker Service
 Online Banking
 Internet Banking

2.5 Objective of Internship

The objective of Internship is too familiar with the working environment of present institutions
and also fulfill the requirement of BBA theoretical knowledge gained from the coursework of the
BBA program in a specific field.

2.6 Internship Working Experience

Prologue

After completion of academic study, all of Researcher will have to enter into professional world.
Before facing with real world, to work as an intern in an organization is best opportunity to

11
practice corporate culture and utilize academic learning. Researcher got the privilege to work at
National Bank Limited for a period of 12 consecutive weeks.

Researcher experienced that every desk is assigned with specific jobs and particular persons take
responsibility as well as to carry out the jobs. In cooperating with all the persons Researcher
worked with, Researcher came to learn a lot of things which will help me not only in
professional life but also in my personal life.

Researcher worked at Anderkilla Branch three month journey of Researcher internship with
National Bank Limited was very delightful. Researcher enjoyed my works and all the stuffs,
officers of the bank are very friendly and helpful.

As Researcher worked as an intern there, Researcher was assigned at different desks of all the
divisions of bank.

Accounts Department

At the beginning of internship period, Researcher worked at ‘Accounts’ under General Banking
Division and Researcher worked there. Accounts department is responsible for analyzing all the
transactions which are held in bank and keeping records of all transactions.

Everyday all transaction lists, vouchers, cheques are received from different divisions. Then the
respective officers in Accounts analyze and register all transactions. Researcher principle jobs in
accounts were organizing the vouchers, matched the vouchers with transaction lists. There are
three types of vouchers and these are categorized as Cash, Transfer and Clearing vouchers. There
are automated transaction lists which are called as ‘Supplementary’. Researcher job was to check
vouchers and then attach all vouchers with respective Supplementary sheets. After attaching,
next job was balancing. Balancing means doing summation and ensuring that value of debit and
credit is equal. Then the job was to make a cover where total numbers of transactions are counted
and recorded. Then prepare it for binding in an organized format. All of these tasks are day to
day activities of accounts department.

Cash Department

Researcher worked in cash department. Researcher duty was to register value of cheques and
deposits slips and gave serial (tracer) number to the respective cheques and deposit slips

12
according to the register entry number. Cheques are registered in debit (Dr.) account because
bank gives money to customer with cheque which is debit and deposit slips are registered in
credit account because with using deposit slip customer deposit money to bank. At the end of the
day Researcher had to sum up register entries and checked them with automated transaction list
through the computer. Another job Researcher did there was sorting the cheques according to the
account number. Researcher had to also sort out the Demand Payable Slip (DPS) according their
types.

There are four types of DPS such as 3years, 5years, 8 years, and 10 years. From 1st day to 15th
day of every month is considered as DPS collection period.

Foreign Exchange Department

Foreign Exchange is a vast department in NBL and Researcher worked here.

Credit Department

Researcher job was to prepare the Letter of Credit (L/C) files for the clients with corresponding
papers (i.e. commercial invoice, pro-forma invoice, L/C opening forms etc.). Researcher had to
write and fill up some application forms i.e. IMP (Import) Form, EXP (Export) Form with taking
information from different register books. Researcher also sorted out the vouchers of Foreign
Exchange Department.

The last department Researcher was appointed at credit department. Researcher job was to
prepare file for applicants with the corresponding papers (i.e. applicant’s information, company
invoices, TIN, VAT certificate, credit report etc.) and help them to fill up it. Researcher attached
stamp in some of the papers like as Demand Promissory Note and then gave some seals like as
Signature Verifying seal. Researcher also printed out vouchers and sorted them. Another job was
to prepare the data of individual and corporate clients, listed them in a table and synchronized
with the framework in MS Excel. Researcher also made entry of the transactions in daily basis in
register books.

Loan Facility Parameters of NBL:

The Loan facility parameters for the Bank have been set as under:

13
(a) The Bank in general will approve / renew trade finance facility for the period of 01 (one) year
from the date of approval / last expiry date.

(b) The Bank will extend medium term loan for 3(three) years period.

(c) The Bank will extend long term loan for maximum period of 7 (seven) year including grace
period of 6(six) months to 18(eighteen) months (depending on the nature of Project) for project
finance but in case of need, in syndication or club financing, the Bank may extend the period of
loan up to-+ 8(eight) years or as per consensus of the syndicated members. However, in case of
House Building Loan (General), the repayment period will be maximum of 15(fifteen) years.

(d) House Building Loan to Bank’s employee shall be governed as per policy guidelines of
“Employees House Building Loan” scheme.

(e) Besides above, the Bank will extend credit facilities under special program like Consumer
Credit Scheme, Small Loan Scheme, SME Financing, Doctor’s Credit Scheme, Women
Entrepreneurship Development Project, Personal Loan, Car Loan, House Building Loan
(General) / Mortgage Loan, NBFI’s as per policy set / to be set by the Bank under the policy
guidelines of the specific scheme.

(f) The rate of Interest / Commission / Charges / Fees etc. would be as per the approved schedule
of charges with variation permissible as per Bangladesh Bank guidelines and with the approval
of competent authority.

(g) The interest rate to be charged and to be paid out on quarterly basis except the especial
schemes and unless otherwise specified in the approved terms.

(h) Repayment of term loan would be fixed preferably on monthly/quarterly basis.

(i) In general, the cash margin for L/C would be 10% of the L/C amount or on the basis of
Banker – Customer relationship subject to the minimum requirement of Bangladesh Bank
whichever is higher.

(j) For the import of Capital machinery, the cash margin for L/C would be 25% – 30% or on the
basis of Banker – Customer relationship subject to the minimum requirement of Bangladesh
Bank whichever is higher.

14
(k) Any exception, as mentioned above, would be specifically approved by the competent
authority of the Bank.

(l) Security accepted against credit facilities shall be properly valued and shall be effected in
accordance with Laws of the country in which the security is held. An appropriate margin of
security will be taken to reflect such factor as the disposal costs or potential price movements of
the underlying assets. Accepted Securities are: Cash/Cash equivalent, Land and Building (in the
form of registered mortgage with registered IGPA), hypothecation / ownership of Plant and
Machinery, stock of goods, assignment of bills / receivables, book debts, pledge of shares,
guarantee / Corporate Guarantee, etc.

(m) Valuation of the landed property/Building/Machinery/Stock of Raw materials/Finished

products shall be done by the Bank’s enlisted professional surveyors duly checked by the Bank
officials.

(n) Mortgage formalities including execution of registered irrevocable power of attorney must be
completed as per legal vetting of the Bank’s approved/enlisted Lawyer.

(o) The value of the mortgage property shall be preferably double of the facility to be extended
depending upon other security coverage.

(p) The security condition may be relaxed depending upon the Credit worthiness of the
customer / Banker-Customer relationship / potentiality of the business of the client.

(q) Any exception of the parameters mentioned above are subject to be approved by the
competent authority as per delegated power approved by the Board of Directors

2.7 Market Scenario of NBL

Credit Management is a branch of accountancy, and is a function that falls under the label of
“Credit and Collection’ or ‘Accounts Receivable’ as a department in many companies,
institutions & banks. In 2018 Authorized capital of NBL is 30,000.00 million, paid up capital is
26,549.08 million, Statutory reserve is 1,435,835,612, Other reserve (including general & assets
revaluation reserve) is 482,594,513, Retained earnings (Profit & Loss Account) is 9,567,420,
Shareholder’s equity is 44,809.35 million, Deposits 315,206.03 million, Loans and advances is
314,507.26 million, Investments is 57,869.85 million, Fixed assets is 2,780.98 million, Total

15
assets 407,227.40 million. In 2018 Capital of NBL: Total risk weighted assets (RWA) is
364,254.80 million, Tier-I capital is 41,982.08 million, Tier-II capital is 9,162.29 million, Total
capital is 51,144.37 million, Core capital (Tier-I) to RWA is 11.52%, Supplementary capital
(Tier-II) to RWA is 2.52%, Capital to Risk Weighted Assets Ratio (CRAR) is 14.04%. In 2018
Asset Quality of NBL: Amount of non-performing loans & advances is 2,988.15 crore, Non-
performing loans & advances as of total loans & advances is 9.5%, Specific provision against
classified loans & advances is 966.55 crore, General provision against un-classified loans and
advances is 42.30 crore, General provision against off-balance sheet items 11.30 crore,
Percentage (%) of net classified loan is 3.16%, Interest suspense balance is 114.93 crore. In 2018
Foreign Exchange Business of NBL: Import is 90,579.63, Export is 50,282.23, and Remittance is
40,743.36. In 2018 Financial Performance of NBL: Interest income on loans and advances is
28,150.08, Interest paid deposits and borrowings is 21,051.42, Net Interest Margin (NIM) is
4611.32, Net Interest Margin (NIM) % is 2.85%, Income from investments is 6,074.56 million,
Total income is 1,164.62 million, Total expenses is 482.59 million, Operating profit is 9,219.17
million, Provision for loans & advances and other provisions made during the year 2,040 million,
Profit before tax is 7,179.17 million, Provision for tax is 3,078.86 million, Profit after tax is
4,100.31 million, Profit available for distribution is 7,257.69 million. In 2018 Shareholder’s
Information of NBL: Earnings per share (EPS) is 1.54, Price earnings (PE) ratio (times) is 6.17,
Net asset value (NAV) per share is 16.88, Net operating cash flow per share is 1.54, Market price
per share is 9.50, Market capitalization is 15632.96, Number of shares outstanding (Nos.) is
2,654.91 million, Number of shareholders (Nos.) is 84,202. In 2018 Financial Ratios of NBL:
Advance Deposit Ratio (ADR) (%) is 97.49%, Return on equity (ROE) (%) is 9.63%, Return on
assets (ROA) (%) is 1.08%, Cost of fund (%) is 8.52%, Cost income ratio (%) 41.34%,

16
3.0 Introduction
General Banking Department is considered as the direct customer service center. It is the starting
point of all the banking operation. It opens new accounts, remits funds, honor chaque, takes
deposits, issues bank draft and pay order etc. general Banking is also known as retail banking.

3.1 General Banking Policy & Programs

To make profit in business you need to sell product or service. A bank does not produce any
tangible product to sell but does offer a variety of financial services to customers. General
banking is the starting point of all the banking operations. It is the department which provides
day-to-day services to the customers. Every day it receives deposits from the customers and
meets theirs demand for cash by honoring cheque. It opens new accounts, remit funds, issue
bank draft & pay orders etc. Since bank is confined to provide the service every day. General
banking is known as Retail banking.

Account
Opening &
Customer
Service
Section

Account Deposit
Section Items
General
Banking

17

Clearing & Cash

Different policies of NBL of General bank department
Policies of the General Banking Division
The general banking division deals with several functions
1. Operating customer service
2. Management of cash
3. Remittance of funds
4. Operation relating to clearing
5. Management of deposit
6. Maintaining accounts
7. Preparing balance sheet & other statements
8. Corresponding to different institutions
9. Maintaining of Accounts
10. Internal control & internal check
The above-mentioned functions are briefly described as follows:
Operating Customer Service Department
From this department all sort of necessary services are provided according to the requirement of
the customer. Now a days the service is most talked about matter in banking and other customer
related financial involvement. The basic difference between a public and private institution is
seems to be its customer handling. The private institutions are more customers related to the
public one. For this the customers are likely to feel comfort to make operation with the private
institution that those of public. The services provided to the customer from this department are as
follows:
a. Opening of account
b. Issuance of check book
i) Issuance of certificate
ii) Issuance of pay order
iii) Online money transfer
iv) Providing of accounts balance
v) Other information relating to banking
vi) Closing of account

18
19
3.1.1 Opening of Account:
Bank is a financial intermediary, which mobilizes fund from surplus unit and deploy it to deficit
unit. Surplus unit means the people who have surplus money and willingness to save. Deficit unit
means the people who need money for industry, trade, business, or for personal use but don’t
have sufficient money of their own for such purposes. Bank mobilizes the fund by accepting
deposits from depositors and allocates the fund by providing loan to borrower.
The relationship between a banker and his customer begins with the opening of an account by the
banker in the name of the customer. Banker solicits deposits from the public of different walks of
life and having different financial status.

3.1.3 Issuance of Cheque Book

3.1.3.1 Issuance of Fresh Cheque Book:
An account holder can get a fresh cheque book only against requisition on the prescribed
requisition slip attached with the cheque book issued earlier, after proper verification of the
signature of the account holder. A new cheque book should be delivered to the account holder or
his duly authorized representative.

3.1.3.2 When Cheque Book is Lost:

Duplicate checkbook is issued only when an account holder applies to the bank with a letter of
indemnity in the prescribed pro-forma agreeing to indemnify the bank for the lost checkbook. Fresh
check book is then issued after verification of the signature of the account holder from the specimen
signature card and on realization of required excise duty only with prior approval of manager of the
branch. Cheque series number of the new checkbook is recorded in the register. Series number of lost
checkbook should be recorded in the stop payment register and caution should be exercised to guard
against fraudulent payment.

3.1.4 Online Money Transfer:

Because of online banking the customers of National Bank Limited can easily transfer their
money from one branch to another. No hassle is there. Anyone can deposit money from any
branch of the bank to any account. Similarly, an account holder can withdraw money from any
branch. But in case of money transfer from outside National division that is from one territory to
other online charge is taken from the customer.

20
3.1.5 Account Balance Inquiry:
NBL sends account statement to its clients two times in a year. More over clients are provided
whenever he/she wants to know Account Balance. But hence some security and privacy is
maintained. No other person than the account holder is given the account balance.
3.1.6 Management of Cash:
Cash is the very vital sector for any bank. The proper management of this department entails
overall effectiveness of any bank. This department is responsible for the following functions:
1. Receipt of deposit
2. Making payment to the customer
3. Management of vault of the branch
The above mention functions are described briefly below:
3.1.7 Receipt of Deposit:
This department receives deposit or funds from the customer, and the collection procedure as
follows:
At first the amounted is counted and if ok then verified the purity of the note paid if there is any
confusion of the teller;
If the cash notes are satisfactorily sound then the teller marked in color the amount in word over
the deposit slip.
At last the receiving officer/teller signed the deposit slip and by the sign of the authorized officer
the deposit of fund finished in favor of a customer.
In case of receipt of clearing cheque the cheque is scrutinized at first whether the cheque is
authenticated as per the NI Act. If satisfied then a crossing is marked so that this cheque never is
uncased over the cash counter.
Then the amounts are kept apparently deposited in the customer’s account and the cheque
proceeds to the clearing house accordingly.
1. Date of cheque is today’s or not; if it is predated then the date is within 6 months from
today;
2. Amount is written in word and in figure and both is valued same;
3. Signature is installed and it is as it is the signature kept in the bank;
4. There is sufficient amount in the customer’s accounts for making payment;
3.1.8 Making Payment to the Customer:
The payment is made to a customer only against a valued authentic cheque. The teller has to

21
follow the following steps in making such payment. Receiving the cheque from the customer;
examining the cheque, in case of examination the teller is to be sure about the following
questions.

3.1.9 Management of the Vault:

The cash department also manages the vault of the branch. In such a management the cash in
charge of the branch necessary liquid money in the vault for the payment to the customer, in this
regard there is specific guideline from the central bank for the limit of amount, and the guideline
is:
a) The bank is to maintain an at least 4% balance with the Bangladesh Bank on its total paid
up capital;
b) Limit of cash vault up to tk- 1.5 cores;
c) Limit of an individual teller up to tk- 20 lacs;
d) Limit of cash in transit up to tk- 75 lacs.
So the cash department is to maintain a cash limit of tk- 2 core 45 lac as whole. The excess
amount of a branch limit is to be proceeded to the account maintained with Bangladesh bank.

3.1.10 Telegraphic Transfer (TT)

Test number appearing on the TT must be checked and authenticated by the concerned official.
After receiving confirmation from the head Office about the proceeds having been credited to
their Nostro A/C and observing the usual formalities including declaration on form ‘C’, if
necessary, the vouchers are to be passed at the TT buying rate. Accounting treatment for inward
remittance
For Pay Order: If the issuing and paying branches are belonging to the same clearing zone then
the pay order is used for bank to bank transfer. The payment against PO is made as per the
following journal:
Pay order payable account ………………. Debit
Bangladesh Bank/ party account…………. Credit
Procedures & accounting treatment of outward remittances Specific procedure and accounting
journals are made for the transfer and the settlement of the outward remittance.

22
23
3.1.11 Operation Relating To Clearing
Clearing house is the place where all the bank to bank transactions are settled. In a bank cheques and
drafts of different banks are collected from the clients for deposition in his account and
the amounts are collected from those responding branches through clearing house. Since we
know that there are three ways to collect or remit funds such as cash, clearing and transfer this
clearing section is treated as one of the most important banking booth. It is observed that the
transactions of very big volume are done through clearing house. When drafts and cheques are
drawn on the bank’s branches within the same clearing zone then funds are to be cleared through
clearing house but if it is of different clearing zone then the amounts are to be collected not
cleared and here the OBC procedure is to be maintained. There are two types of clearing
operation;
Inward clearing;
Outward clearing.

3.1.11.1 Inward Clearing:

Here the cheques and drafts drawn on the bank itself are deposited to different banks by their
clients and then carried in to the bank for payment. The procedure for inward clearing is as
follows:
Step1. Receipt of the instrument from messenger
Step2. Scrutinizing the instrument
Step3. Make entry into the inward clearing register
Step4. Preparation of voucher & IBCA of honored cheque or instrument
Step5. Preparation of memo describing the reason for dishonor (if any)
Step6. Sending the IBCA & dishonored cheques to the home branch

3.1.11.2 Outward Clearing:

Here the drafts and cheques drawn on different banks branches deposited by the clients into their
accounts they are received at first for clearing and after getting cleared through the house they
finally credited to the depositors account the procedure is as follows:

24
3.1.12 Management of Deposit
In this section the division is engaged in the operation of the deposit deposited by the client.
There are a number of deposit types of NBL. They are:
1) Current Deposit (CD)
2) Savings Deposit (SB)
3) Fixed Deposit Receipt (FDR)
In managing these accounts the division charged a service charge and paid interest if a specific
minimum balance is in the accounts. The minimum balance varies with the type of deposit.
Payment of interest to the account: At every three months (quarterly) the interest is transferred to
the party a/c if there is a specific minimum balance. And the interest is calculated on the
outstanding balance of the account. And the interest is transferred by the following journal:
Interest on Deposit account……… Dr (With the interest amount)
Party account …………………….. Cr
Payment of interest on FDR: At the request of the client the interest on FDR is paid to the client in
cash or by pay order. In which way the amount will be paid that will be according to the instruction
of the client. If no request is made the bank credited the interest to the a/c of the client at the maturity
of the FDR and the FDR again runs with the outstanding balance of the a/c.

3.1.13 Internal Control & Internal Check

This division monitors and checks all the internal operation whether they are performed properly.
Beside this the officers of this division audited the accounts of the bank and checks all the
vouchers regularly whether they are prepared in proper and authenticated accordingly.

3.2 Procedures of Providing different general banking products of National

Bank Ltd.
General banking division usually performs a lot of important banking activities. General banking
division is the division, which is mostly exposed to the maximum number of bank customers. It
is the introductory department of the bank to its customers. All business concerns earn a profit
through selling either product or a service. A bank does not produce any tangible product to sell

25
but does offer a variety of financial services to its customers. NBL has all the required sections
of general banking and this section are run by manpower with high quality banking knowledge.

General Banking comprises of the diverse segments in the branch. These are:

 Client Service
 Account Opening/Closing
 Remittance
 Deposit Department
 Locker Service
 Account Department
 Cash Department etc.

3.2.1 Client Service

In the branch distinctive areas are prepared to give the administrations which are a definitive
arrangement of the clients. Any data, if client needs to know, he or she can get it either
telephone or coming in the bank. In any case, by telephone all data is not gave because of
look after security. Typically, what measure of cash in their (client)account, to open an
account what ought to be taken after, when can be taken check book and store book, what the
state of premium rate, how cash can be exchanged to another bank and so forth. This sort of
administrations bank gave to the client. Individuals constantly need to get the client benefit as
ahead of schedule as would be prudent. NBL needs as quick as would be prudent, they will
offer the administrations to the client instead of different banks holding own position and go
ahead all the more by prevalent administrations through grinning face and also well acting
what they require. At some point which offices (items) have been come in new route for the
clients and accommodating are educated. To create client benefit all the more, once in a while
they are asked what their desire to the bank about it is. In the event that it is conceivable
administrator tries to include with client benefit Therefore information supplier must be
constantly lively and dynamic to give in the nick of time.

26
3.2.2 Account Opening/Closing
To begin the exchange forever in a National Bank enlistment ought to be kept up which is
account opening. Aparna Sharma (Junior officer) is constantly prepared to give this kind of
administration By account opening one considered as own and steadfast customer to the bank.
Subsequently it needs to hold this client for quite a while giving predominant administrations.
To open a account some foundation customer needs to take after which serves to keep data
about them to it. To open account in the National Bank they have diverse account structure to
registry in distinctive name. For the most part to open any account as a matter of first
importance gathering the structure filling account holder's name, father' name, mother's name,
date of conception, citizenship, religion, present and perpetual location and mark. Introducer's
endorsed ought to be obligatory and filling candidate's data like A/C holder in the structure.
After this assignment he or she will be given a photocopy of voter ID card/substantial
international ID/Nationality Certificate and three duplicates photos (two for A/C holder and
another for chosen one). At that point officer will check it and give an A/C no. also store book
to store cash in the A/C no. At that point the separate officer inputs information into A2Z
Software. At that point he prints thanks letter for introducer and A/C holder and sends these
letters in separate location to checking locations of introducer & A/C holder. In the wake of
confirming A/C holder's address the officer issues check books to withdraw cash.

3.2.3 Account Opening & Closing Procedure:

There are some necessary documents which are mandatory for opening an account in a bank.
They are: National ID card, 2 copy passport size photo of the account opener, 1 copy of
passport size photo of the nominee of that account. The customer also needs an introducer
who has already an account in the bank. Then the introducer and customer will sign the 2
copies of photo of the customer. Then customer and the nominee need to sign the photo of the
nominee. In case of opening the accounts which are related to business like CD (Current
Deposit) account, the customer needs to bring “Trade License”, “TIN (Tax Identification
Number) Certificate.

Account Closing:

27
For two reasons or by two parties, accounts can be shut. One is by investor and other is by the
client.

 By banker: If any client doesn't keep up any exchange inside of six years and the A/C
offset gets to be lower than the base parity, broker has the privilege to close an A/C.
 By customer: If the client needs to close his A/C, he composes an application to the
administrator encouraging him to close his A/C.

Be that as it may, by and by, typically the clients don't close A/C eagerly. Now and again,
clients don't keep up any exchange for long time. Is this circumstance at to begin with, the
A/C gets to be lethargic and eventually it is shut by the bank.

3.2.4 Remittance
Remittance is an important sector for maintaining the reserve in Bangladesh. National Bank
Limited prefers the transactions related to the remittance in Bangladesh. They have some
importance arrangements of the remittance.

3.2.5 Deposit Department:

There are different types of products of deposit department. They are given below:
Deposit Products:
 Savings Deposit
 Current Deposit
 Term Deposit
 Foreign Currency Deposit
 Monthly Savings Scheme
3.2.5.1 Savings Deposit
National Bank Limited offers clients a hassle free and low charges investment account through the
branches all over Bangladesh.

Advantages of Savings Deposit

 Interest rate of 4.00% on last month to month parity.

 Least adjust amount is Tk.1000.
 Maintenance or upkeep charge yearly Tk. 600.

28
  No shrouded expenses.
 Standing Instruction Arrangement are accessible for operating/ working
account

3.2.5.2 Current deposit

National Bank Limited offers clients current deposit for regular business transaction with no
confinement.

Current Deposit Account (Personnel):

 Collect an Account opening structure from the Bank.
 Fill every one of the prerequisites of the structure.
 Nominee is must be indicated.
 Photograph is most imperative for any account two for holder and one for
chosen one (Except institutional A/C).
 To open this account the most imperative things is a photocopy of voter ID
card/legitimate international ID/Nationality Certificate issued by neighborhood govt.
must need to include with the account opening structure furthermore encase the
structure 12 with the account opening structure.

Current Deposit Account (Sole Proprietorship):

 Signature Card.
 Photograph 3 or 4 for holder bore witness to by introducer and 2 for chosen
one of signatories verified by A/C holder.
 Copy of legitimate Trade License.
 TIN Certificate.
 18-A consent from Bangladesh Bank (for GSA & Agents just).
 Current Deposit Account (Partnership):
 Signature Card.
 Photography of signatories validated by introducer.
 Partnership Deed.
 Partners letter of power to open account and approval for operation.
29
  Copy of substantial Trade License.
 18-An authorization from Bangladesh Bank (for GSA & Agents just).
Current Deposit Account (Limited Liability Company):
 Signature Card.
 Photograph of signatories bore witness to by introducer.
 Copy of Memorandum and Articles of Association.
 Copy of Certificate of Incorporation and initiation of business.
 Copy of Board Resolution to open the account and approval for operation.
 List of Directors and signatories alongside locations.
 Latest duplicate of From XII.
 Signature Card
 Photograph of signatories verified by introducer.
 Copy of Resolution of administering body to open the account and approval
for operation.
 Copy of comfort/standing rules/rules.
 Certificate of enlistment.
 List of approved signatories and individuals from the overseeing bodies
alongside location.

Advantages of Current Deposit Account

 Least support charge half yearly Tk.400/ - .
 Least balance required is Tk.2000.
 No concealed expenses
 Standing Instruction Arrangement are accessible for working account.
 Simple access to our different accounts
3.2.5.3 Term Deposit

Term Deposit can be divided into two different categories and they are

a) Special Notice Deposit

30
 b) Fixed Deposit

3.2.5.4 Special Notice Deposit

National Bank Limited provides decent interest rate on client's special notice deposit and
offers account to withdraw cash whenever.

 Collecting a structure and top off every one of the prerequisites of A/C holder.
 Nominee must be said and related data too.
 Two duplicates international ID size photo one for holder one for chosen one.
 Needed international ID or national ID card or chief certificates

Advantages
 Any sum of money can be saved
 Untimely encashment account is accessible.
 Overdraft account accessible against term receipt

3.2.5.5 Foreign currency deposit

Foreign Currency deposit is categorized in two parts and they are as followed:

a) RFC Deposit
b) NFC Deposit

Resident Foreign Currency (RFC) Deposit

National Bank Limited offers opportunity to keep up foreign currency account through its
Authorized Dealer Branches. Bangladesh nationals dwelling abroad or Foreign nationals
living abroad or Bangladesh and outside firms working in Bangladesh or abroad or Foreign
missions and their ostracize representatives.

31
Advantages
 No starting deposit is obliged to open the account.
 Interest on the deposit amount will be offered 1.75% for US Dollar Account,
3.00 % for EURO Account and 3.25% for GBP Account.
 They will get interest on every day item premise on the credit offset (least
adjust of US$ 1,000/ - or GBP 500/ - at any rate for 30 days) keeping up in the
account.

Non-Resident Foreign Currency (NFC) Deposit

National Bank Limited offers chance to keep up foreign currency deposit through its
Authorized Dealer Branches. All non – inhabitant Bangladeshi nationals and persons of
Bangladesh cause including those having double nationality and usually living abroad may
keep up enthusiasm bearing NFCD Account.

Advantages
 NFCD Account can be opened for One month, Three months, Six months and
One Year through US Dollar, Pound Starling, Japanese Yen and Euro.
 The introductory least measure of $1000 or 500 Pound Starling or identical
other assigned money.
 Interest is paid on the equalization keep up in the Account. This interest is
without duty in Bangladesh.

3.2.5.6 Monthly Savings

National Bank Limited offers month to month investment funds plan for its retail clients.

Advantages
 Regularly scheduled payments of deposit will be Tk.500/ - , Tk.1,000/ - ,
Tk.1,500/-, Tk.2,000/ - ,Tk.3,000, Tk.4000/ - , Tk.5,000/ - and Tk.10,0000.
 Accounts may be opened for any portion and term, which is not changeable.

32
  A man is permitted to open more than one account for distinctive portion in a
Branch/Bank

Monthly Amount to be paid on completion

Installments of Term of 10.50%
03(Three) 05(Five)years 08(Eight)years 10(Ten)
years Years

BDT 500/- 21075 39075 73800 103450

BDT 1,000/- 42150 78150 147600 206900
BDT 1,500/- 63225 117225 221400 310400
BDT 2,000/- 84300 156300 295200 413825
BDT 3,000/- 126450 234450 442800 620750
BDT 4,000/- 210750 390750 738000 1034600
BDT 5,000/- 421500 781500 1476000 2069200
BDT 10,000/- 843000 1562925 2952000 4238250
BDT 20,000/- 1264500 2344400 4428000 6207400
BDT 30,000/- 2107500 3907300 7380000 10345600

3.2.5.7 Monthly Earning Scheme

Under this plan one will deposit at least tk.1, 00,000/ - for a long time and will appreciate
monthly interest rate of Tk.900/ - for each Tk.1, 00,000/ - .

Advantages
 Deposit of Tk.1, 00,000/ - and its multiple upper limit of To 50, 00,000/ -
might be satisfactory under this plan.
 The deposit may be opened either separately or mutually.

Double Benefit Account

National Bank Limited now offers Double Benefit Account for its clients. The advantages
under this plan might turn out to be double following 06 (six) years.

33
Advantages
 Deposit of Tk.1, 00,000/ - and others with no furthest breaking point might be
worthy under this plan.
 A man is permitted to open more than one DBA Account.
 The account may be opened either independently or mutually.
 All DBA account holder should be offered with free Life Insurance Policy
under this plan.

3.2.5.8 Monthly Earning Scheme

Under this plan one will deposit an altered sum on month to month premise for 1, 3 or 5 years
and on development he/she will be only a tycoon.

Advantages
 Deposit of different monthly sum for 1, 3 or 5 years. Account
size will be in view of residency. Upon development the contributor
will deposit a minimum of Tk.1,00,000/- or its multiple up to
Tk.10,000,000/-.

 A man is permitted to open more than one MES Deposit.

 The deposit may be opened either separately or together

Deposited Amount Monthly Interest Net payable after 10% Net payable after 15%
@10.80% Tax Tax
Tk.1,00,000/- 900 810/- 765/-

Tk.5,00,000/- 4,500 4,050/- 3,825/-

Tk.10,00,000/- 9,000 8,100/- 7,650/-

34
3.2.6 Credit Products
Credit products are categorized in the following:

 Overdraft
 Lease finance
 Home loan
 Small medium enterprise loan
 Consumer credit loan

3.2.6.1 Overdraft

NBL offers overdraft account for corporate clients for everyday business operations.

Advantages
 Low charges in overdraft account maintenance.
 Account is accessible against account receipt or home loan property.
 Low interest rate 13-16%
3.2.6.2 Leasing Finance

National Bank Limited offers renting account for customers with simple portion account.

FINANCING AREA
 Capital machinery.
 Diverse types of gear.
 Gas, Diesel generator and Power plant.
 Therapeutic types of gear.
 Information Technology types of gear.
 Development types of gear.

35
3.2.6.3 Home Loan

Advantages

 Duty period available up to 9 months in level buy or 12 months in construction.

 Aggressive interest rate.
 No application or handling expense.

Eligibility:
 Any Bangladeshi native or NRB, who is equipped for reimbursement can apply for
this credit
 Simple handover in the wake of renting period
3.2.6.4 Small Medium Enterprise Loan
NBL offers monetary backing to little businesspeople/endeavor with new items named
"Celebration Small Business Loan" and "NBL Small Business Loan" has been presented in
the Bank.
Advantages
 Most extreme Tk.3.00 lac (Festival Scheme) and Maximum Tk.5.00 lac (Small
Business Scheme).
 3 Months (Festival Scheme) and 5 years (counting 1 month beauty period
(Small Business Scheme)).
 Insurance Free Advance.

3.2.6.5 Consumer Credit Loan

NBL offers shopper credit account for retail clients.
Financing Items
 Electronics shopper items.
 PC or Computer accessories.

36
Advantages
 Quick preparing.
 Focused interest rate.
 No application or preparing charge.
 Simple regularly scheduled payment.

Credit Card

NBL Credit Card is acknowledged in numerous vendor outlet around the globe. An extensive
variety of traders incorporate lodgings, eateries, carriers, & travel operators, shopping centers
and departmental stores, doctor's facilities & demonstrative focuses, gem specialists, gadgets
& PC shops and some more.

Advantages
 Dual Currency Card Facility.
 Most reduced Rate of Interest.
 Most reduced Card Fees. Extraordinary Discount of Card Fee condition
pertinent.
 Consumers can exchange 80% measure of your Local Card Limit to any NBL
A/c or have Pay Order Facility.
 No Excess Limit Charge.

3.3 General Banking Performance of National Bank Ltd.

A bank is a financial institution which offers savings and cheque accounts, makes loans and
provides other financial services, making profits mainly from the difference between interest
paid on deposits and charged for loans, plus fees for accepting bills and other services. A bank
can also be defined as an organization, usually a corporation, chartered by a state or government,
which does most or all of the following: receives demand receives demand deposits and time
deposits, honors instruments drawn on them, and pays interest on the midis counts notes, makes
loans, and invests in securities, collects checks, drafts and notes certifies depositor’s checks and
issues drafts and cashier’s checks.
3.3.1 Current Deposit Position:
37
Current account is purely a demand deposit account. There is no restriction on withdrawing
money from the account. It is basically justified when funds are to be collected and money is to
be at frequent interval. Some important points have been discussed in the project part.
Table-3.3.1 Position of current Deposit [In million]
Year Current Deposit Growth Current Deposit of Growth Rate Contribution
Total Bank Rate NBL Andarkilla (%) (%)
(%)
Branch
2014 7633 100% 309 100% 4.05%
2015 7674 100.54% 324 104.85% 4.22%
2016 8723 114.28% 374 121.03% 4.29%
2017 8944 117.17% 403 130.42% 4.50%
2018 9548 125.08% 460 148.86% 4.82%
Average 8504.4 374
Source: Annual report of NBL & Andarkilla Branch NBL Bank Ltd. (2014-2018)
12000 500
450
10000
400
350
8000
300

6000 250
200
4000 150
100
2000 50
0
0 2014 2015 2016 2017 2018
2014 2015 2016 2017 2018
Current Deposit of NBL Andarkilla Branch Branch
Current Deposit Growth Rate Growth Rate

Source: Annual report of NBL & Andarkilla Branch NBL Bank Ltd. (2014-2018)
Analysis: The current deposit shows an increasing & decreasing trend the current account in
2014 was 7633 and 2014 was 7674 which was upward then base year and its growth rate in 2014
was base year and 2014 was 100.54 which was upward then base year. The current deposit 2015
was 8723 and 2016 was 8944 which was upward then the base year and its growth rate 2015 was
113.66 and 2016 was 117.18 which was upward then base year. The current deposit 2017 was

38
9548 which were higher than previous one year and growth rate in 2018 was 106.75 and it’s
higher than previous one year.

3.3.2 Savings Deposit Position:

This deposit is primarily for small-scale savers. Hence, there is a restriction on withdrawals in a
month. Heavy withdrawals are permitted only against prior notice. Some Important Point have
been discussed in project part
Table-3.3.2
Position of Savings Deposit [In million]
Saving Growth Rate Saving Deposit Growth Contribution
Deposit (%) of NBL Rate (%)
Total Bank Andarkilla (%)
Branch
2014 7477 100% 298 100% 3.98%
2015 8198 109.64% 310 104.02% 3.78%
2016 9832 131.49% 315 105.70% 3.20%
2017 11167 149.35% 337 113.08% 3.02%
2018 12989 173.71% 354 118.79% 2.72%
Average 9932.6 322.8
14000 Source: Annual report of NBL & Andarkilla Branch

12000
400
10000 350

8000 300
250
6000
200
4000 150
2000 100
50
0
2014 2015 2016 2017 2018 0
2014 2015 2016 2017 2018
Saving Deposit Total Bank
Growth Rate Saving Deposit of NBL Andarkilla Branch Branch
Growth Rate (%)

NBL Bank Ltd. (2014-2018)

39
Source: Annual report of NBL & Andarkilla Branch NBL Bank Ltd. (2014-2018)
Analysis: The savings deposit shows an increasing & decreasing trend the saving account in
2014 was 7477 and 2014 was 8198 which was upward then base year and its growth rate in 2012
was base year and 2014 was 109.64 which was upward then base year. The saving account 2015
was 9832 and 2016 was 11167 which was upward then and base year and its growth rate 2015
was 131.50 and 2016 was 149.35 which was downward then base year. The saving account 2017
was 12989 which were higher than previous one year and growth rate in 2018 was 173.72 and
it’s higher than previous one year.

3.3.3 Fixed Deposit Position:

Table-3.3.3
Position of Fixed Deposit [In million]
Year Fixed Deposit Growth Rate Fixed Deposit of Growth Contribution
Total Bank (%) NBL Andarkilla Rate (%)
Branch (%)
2014 39313 100% 1350 100% 3.43%
2015 45892 116.73% 1438 106.51% 3.13%
2016 53745 136.71% 1575 116.66% 2.93%
2017 47844 121.70% 1540 114.07% 3.22%
2018 45696 116.23% 1508 111.70% 3.30%
Average 46498 1482.2
Source: Annual report of NBL & Andarkilla Branch NBL Bank Ltd. (2014-2018)

40
60000 1800
1600
50000
1400
40000 1200
1000
30000 800
600
20000
400
10000 200
0
0 2014 2015 2016 2017 2018
2014 2015 2016 2017 2018
Fixed Deposit Total Bank of NBL Abdarkilla Branch
Fixed Deposit Total Bank Branch
Growth Rate % Growth Rate %

Analysis: The fixed deposit shows an increasing & decreasing trend the fixed account in 2014
was 39313 and 2015 was 45892 which was upward then base year and its growth rate in 2014
was base year and 2015 was 116.73 which was upward then base year. The fixed account was
2016 the amount 53745 and 2017 was 47844 which was downward then and base year and its
growth rate 2016 was 136.71 and 2017 was 121.7 which was down ward then base year. The
fixed account 2018 was 45696 which were lower than previous one year and growth rate in 2018
was 116.23 and it’s lower than previous one year.
3.3.4 Term Deposit Position
Table-3.3.4
Position of Term Deposit [In million]
Year Term Deposit Growth Term Deposit of Growth Rate Contribution
Total Bank Rate (%) NBL Andarkilla (%) (%)
Branch
2014 12414 100% 496 100% 3.99%
2015 17581 141.62% 660 133.06% 3.75%
2016 23123 186.26% 757 152.62% 3.27%
2017 29810 240.13% 876 176.61% 2.94%
2018 35430 285.40% 1004 202.41% 2.83%
Average 23671.6 758.6
Source: Annual report of NBL & Andarkilla Branch NBL Bank Ltd. (2014-2018)

41
40000 1200
35000
1000
30000
25000 800
20000 600
15000
400
10000
5000 200
0 0
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

Term Deposit of Total Bank Term Deposit of NBL Andarkilla Branch Branch
Growth Rate % Growth Rate %

Source: Annual report of NBL & Andarkilla Branch NBL Bank Ltd. (2014-2018)
Analysis: The Term Deposit shows an increasing & decreasing trend the Term Deposit in 2014
was 12414 and 2015 was 17581 which was upward then base year and its growth rate in 2014
was base year and 2015 was 141.62 which was upward then base year. The Term Deposit was
2016 the amount 23123 and 2017 was 29810 which was upward then and base year and it’s
growth rate 2016 was 186.27 and 2017 was 240.13 which was down ward then base year. The
Term Deposit 2018 was 35430 which were higher than previous one year and growth rate in
2018 was 285.40 and its highest than previous one year.
3.3.5 NBL Monthly Savings Scheme
Table-3.3.5
Position of NBL Monthly Savings Scheme [In million]
Year NBL Monthly Growth Rate NBL Monthly Growth Rate Contribution
Savings (%) Savings Scheme of (%) (%)
Scheme NBL Andarkilla
Total Bank Branch
140 2014 2629 100% 104 100% 3.95%
3500
120
2015 2765 105.17% 112 107.69% 4.05%
30002016 2805 106.69% 119 114.42% 4.24%
100 2017 2641 100.45% 115 110.57% 4.35%
25002018 2975 113.16% 127 122.11% 4.27%
80Average 2763 115.4
2000
60 Source: Annual report of NBL & Andarkilla
1500
40 Branch NBL Bank Ltd. (2014-2018)
1000
20
500
0
0 2014 2015 2016 2017 2018 42
2014 2015 2016 2017 2018
NBL Monthly Savings Scheme of NBLAndarkilla
Branch Branch Savings Scheme of Total Bank
NBL Monthly
Growth
GrowthRate
Rate%%
ANALYSIS: The NBL Monthly Savings Schemes shows an increasing & decreasing trend the
NBL Monthly Savings Schemes in 2014 was 2629 and 2015 was 2765 which was upward then
base year and its growth rate in 2014 was base year and 2015 was 105.17 which was upward
then base year. The NBL Monthly Savings Schemes was 2016 the amount 2805 and 2017 was
2641 which was downward then and base year and it’s growth rate 2016 was 106.69 and 2017
was 100.46 which was downward then base year. The NBL Monthly Savings Schemes 2018
were 2975 which were higher than previous one year and growth rate in 2018 was 113.16 and
it’s higher than previous one year.
3.3.6 Special Saving Scheme Position
Table-3.3.6
Position of Special Saving Scheme [In million]
Year Special Saving Growth Special Saving Scheme Growth Rate Contribution
Scheme Rate (%) Position of NBL of (%) (%)
Position Total Andarkilla Branch
Bank
2014 527 100% 21 100% 3.98%
2015 627 118.97% 23 109.52% 3.67%
2016 891 169.07% 27 128.57% 3.03%
2017 1215 230.55% 32 152.38% 2.63%
2018 1492 283.11% 38 180.95% 2.55%
Average 950.4 22.2
40
1600 Source: Annual report of NBL & Anderkilla
35
1400 Branch NBL Bank Ltd. (2014-2018)
30
1200
Analysis: The special saving deposit shows an
25
1000
20800 increasing & decreasing trend the special saving
15
600 deposit in 2014 was 527 and 2015 was 627 which
10
400 was upward then base year and its growth rate in
5
200 2014 was base year and 2015 was 118.99 which
0
0 2014 2015 2016 2017 2018
2014 2015 2016 2017 2018 was upward then base year. The special saving
Special Saving Scheme Position of Andarkulla
Branch
Special Saving Scheme Position Total Bank deposit was 2016 the amount 891 and 2017 was
Growth
GrowthRate % %
Rate
1215 which was upward then and base year and
it’s growth rate 2016 was 169.07 and 2017 was 230.55 which was downward then base year. The
special saving deposit 2018 was 1492 which were higher than previous one year and growth rate
in 2018 was 283.11 and it’s lower than previous one year.

43
3.3.7 Money Double Program Deposit

44
 Table-3.3.7
Money Double Program Deposit (In millions)

Year Money Double Growth Rate Money Double Growth Contribution

Program (%) Program Rate (%) (%)
Total Bank of NBL
Andarkilla Branch
2014 25020 100% 975 100% 3.90%
2015 27164 108.57% 1005 103.08% 3.70%
2016 34152 136.49% 1090 111.79% 3.19%
2017 38888 155.42% 1160 118.97% 2.98%
2018 61191 244.56% 1350 138.46% 2.21%
Averag 37283 1116
e
Source: Annual report of NBL & Andarkilla Branch NBL Bank Ltd. (2014-2018)
70000 1600

60000 1400

1200
50000
1000
40000
800
30000
600
20000
400

10000 200

0 0
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

Money Double Program Money Double Program

Total Bank of NBL Andarkilla Branch

Growth Rate % Growth Rate %

Source: Annual report of NBL & Anderkilla Branch NBL Bank Ltd. (2014-2018)
Analysis: The Money Double Program Deposit shows an increasing & decreasing trend the
Money Double Program Deposit in 2014 was 25020 and 2015 was 27164 which was upward
then base year and its growth rate in 2014 was base year and 2015 was 108.57 which was
upward then base year. The Money Double Program Deposit was 2016 the amount 34152and

45
2015 was 38888 which was upward then and base year and its growth rate 2016 was 136.50 and
2017 was 155.43 which was upward then base year. The Special Deposit scheme 2018 was
61191 which were higher than previous one year and growth rate in 2018 was 244.56 and it’s
higher than previous one year.

3.4 Problems associated with General Banking performance of

National Bank Limited

While working in the bank, I have experienced and found some factors about the National Bank
Limited, Andarkilla Branch. The experience is not unmixed. I have tried to put light on the
problem findings here:
1. Interest rate of all types of deposit of National Bank Limited is lower than other bank’s

interest rate.

2. Commission for pay- order and Demand draft is also high.

3. Sometimes customers have to wait in queue due to the traditional system of taking

deposit.

4. Balance enquiry is the most frequently asked task by the customers which sometimes

done over telephone and sometimes unauthorized persons enquire about others account

balance.

5. Number of employee in each department is not enough for which sometimes it is not

possible to render efficient service

6. The bank does not have enough ATM Booth; it has not taken expansion plan for it.

7. Young generation does not fall under their target customers. But nowadays they are more

bankable.

8. The cost of fund of this bank is relatively higher than other banks.

9. Absence of research and development center affects the growth of the bank.

46
 10. The synergy of dedicated manpower, technology, and market opportunity can lead the

organization to achieve the goal, a bank must establish and adhere to adequate policies,

practices and procedures for evaluating the quality of asset and the adequacy of loan

provision and reserve.

11. National Bank Limited should train up their branch personnel about all sorts of

information regarding SWIFT and its service.

12. Due to lack of proper knowledge about the operation procedures and services provided to

the customers by SWIFT, certain customers are facing problems, as they have to wait for

a certain time to get the service. And sometimes personnel are not being able to operate

SWIFT without confusion. They are not fully independent in handling SWIFT. Official

training is the solution to this problem.

13. It seems to me that day-by-day customers operation is increasing; individual employee

has to handle different types of jobs. But that is patting a back for an employee. As a

result there might happen a big mistake by the employee and service is also time

consuming and customer has to suffer for this situation. May be it would be the reason

for employee’s de-motivation as well as the customer’s dissatisfaction.

4.1 Summary of the findings

47
After analyzing the annual report and other papers, the evolution of performance analysis and on
the basis of my study I have got some findings about the National Bank Limited.
These are mentioned below:
1. Current deposit in 2014 was 7.6484847 million. There is a decreasing trend in current
deposit from 2015 to2018. But it has increased in 2018. In 2014 current deposit was in
highest position.
2. Saving deposit in 2014 was 1.7549987 in million. There is an increasing trend in saving
deposit from 2014 to 2018. Saving deposit in 2018 is in highest position. National Bank
Limited has gained good saving deposit during the years. Growth rate is high in 2018.
3. Fixed deposit in 2014 was 14.9151305 million. There is an increasing trend from 2015
and 2013. But fixed deposit decreased suddenly in 2014 and 2018. Fixed deposit in
2013was in highest position.
4. Term Deposit in 2014 was 1.1906927 million. There is an increasing trend In Term
deposit of National Bank Limited from 2014 and 2013. But it has decreased in 2014 &
2018. Term deposit in 2013 was in highest position.
5. Others Deposit in 2014 was 5.9622795 million. It has decreased in 2015.But there is an
increasing trend in others deposit of National Bank Limited from 2013 to 2018. In 2018
other deposit was in highest position. Growth rate in highest in 2018.
6. There is an increasing trend from the year 2014 to 2018. It means that the position of
deposit of NBL is in satisfactory level. In 2014 amount of deposit increased significantly
and in 2018 total amount of deposit is in highest position which is 163.08%
7. Current deposit in 2014was 9774 million. There is an increasing trend in current deposit
from 2014 to 2018. But it has decreased suddenly in 2013. In 2018 current deposit was in
highest position. Growth rate declined in 2018.
8. Saving deposit in 2014 was 6856 in million. There is an increasing trend in saving
deposit from 2014 to 2018. Saving deposit in 2018 is in highest position. National Bank
Limited has gained good saving deposit during the years. Growth rate is high in 2018.

48
 9. Fixed deposit in 2014 was 57123. There is an increasing trend from 2014 to 2013. But
fixed deposit decreased suddenly in 2014. Fixed deposit in 2018 is in highest position.
10. Term Deposit in 2014 was 67547 million. There is an increasing trend In Term deposit
of National Bank Limited from 2014 to 2018. In percentage it increased significantly in
2018 which was 158.37%.

4.2 Policy Implication

To increase bank’s efficiency in Customer Service NBL should try to develop the process of
providing the service. In my point of view the following suggestions for the NBL Bank Ltd
especially for Andarkilla Branch are necessary.
1. The bank needs to enrich its quality and efficiency of service and reschedule target group.

2. Interest rate for Deposit should be maximized and rate for loan should minimize.

3. Proper training is necessary to improve the efficiency of the officials and ensure of the

use of modern technology.

4. Bank should make its customers aware of the unauthorized balance enquiry and also

ensure the identification of the enquirer.

5. Number of employees should be increased at an immediate effect to render the best

possible service to the customers.

6. The bank may start separate ATMs at all branches.

7. Motivational strategy should be applied for the effective execution of deposit target.

8. The customers should be aware about the pricing strategy of the bank.

9. Proper utilization of resources should be ensured.

49
10. All the branches of National Bank Limited is not introducing with foreign exchange

system. So it will be better for National Bank Limited if they will introduce foreign

exchange in most of their branches.

11. Continuing better relationship with customers.

12. They need to put more emphasis on clients’ service.

13. In a competitive financial market, their products & services need to focused more to

customers, as they can be more knowledgeable about National Bank Limited’ services.

14. Their marketing strategies should disseminate all over the employee.

15. As we see that, Media coverage of NBL is no so strong. To attract new clients, they

should go for mass media coverage.

16. Corporate Social Responsibility is very strong element to hold competitive sustainable

advantage into clients mind.

17. People in a global edge, are very much well-informed about their wants & needs. They

always want to consume better services from the other end. As a service based company,

NBL need to introduce better financial services.

18. NBL has 204 branches all over the country. It is very hard to provide full range services

with those branches. So they need pay their attention toward the expansion the branch

network.

19. Though NBL is running online business very successfully they should open more ATM

booths to meet customer needs and to meet the competitions

20.

50
4.3 Conclusion

The main competitive advantage NBL is enjoying that it has online banking where as other local
commercial bank cannot yet achieve that advantage. But all the commercial banks are now trying
to achieve this. In this bank the employees are highly motivated by their remunerations and other
benefits. Here, all the employees are very much cooperative with their customers, colleagues and
simply visitors.

In this report tried to find out all sorts of practical dealings that are conducted in case of
handling various type of banking activities in each department, the theoretical aspects, that is
what should be the procedures and requirements maintained from first to last, and actual
practices as well as the ultimate gain for the bank in conducting financial activities are mainly
discussed.

51
Bibliography:
 Annual Report 2014-2018 National Bank Limited.
 Stanley.B.b.& Geoffrey. A. H. (2008-2009) Foundation of Financial Management
International McGraw-Hill.
 Brigham. E.F. & Geoffrey. L.,C. (1995) International Financial Management(Fifth Ed.)
International The Dryden Press.
 Modura. J. (2008), Financial Market and Institution. USA. Thomson South Western

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