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Internship Report of Tuhin
Internship Report of Tuhin
Internship Report of Tuhin
On
Submitted to:
Department of Business Administration
Leading University, Sylhet
Supervised By:
Dr.Mohammad Shahansha Molla
Associate Professor & Head
Department of Business Administration
Leading University, Sylhet
Prepared By:
Abdur Rahim Tuhin
ID No: 1711010015
BBA Program
Major in Accounting Information System (AIS)
Department of Business Administration
Leading University, Sylhet
07.03.2021
Dr.Mohammad Shahansha Molla
Associate Professor & Head
Department of Business Administration
Leading University, Sylhet
Dear Sir,
With due respect, I would like to submit my internship report on “Deposit Mix of
Denationalized Commercial Bank of Bangladesh: A study on Pubali Bank Limited,
Mohila College Branch, Sylhet”, assigned by you under your supervision to fulfill the
requirement of the Internship report of BBA program. It has been a worthwhile experience
for me undertaking such a internship to get exposure to the real life of a banking
organization. I am grateful for your guidelines and directions. I tried to put my best effort
for the preparation of this internship report.
Hereby, I hope that you would be kind and generous enough to accept my sincere effort
and oblige thereby.
I apologize if there is any unintentional mistake made in this report in advance. It will be
my pleasure to answer any clarification regarding this report.
Sincerely Yours
----------------------
Abdur Rahim Tuhin
ID No: 1711010015
BBA Program
Major in Accounting Information System (AIS)
Department of Business Administration
Leading University, Sylhet
Letter of Acceptance
I am pleased to hereby certify that the data and findings presented in this report are the
authentic work of Abdur Rahim Tuhin. I recommend the report presented by him for
further academic commendation and viva voce.
He bears a good moral character and a pleasing personality. It has been a pleasure working
with him.
……………………………….
Dr.Mohammad Shahansha Molla
Associate Professor & Head
Department of Business Administration
Leading University, Sylhet
Letter of Declaration
The work I have presented does not breach any existing copyright and no portion of this
Internship report is copied from any work done earlier for a degree or otherwise.
Sincerely Yours
----------------------
Abdur Rahim Tuhin
ID No: 1711010015
BBA Program
Major in Accounting Information System (AIS)
Department of Business Administration
Leading University, Sylhet
Certificate from the Bank
Acknowledgement
First and foremost, I would like to say, this complete research would not be possible if
Almighty Allah would not have wished it to be done.
I would also like to thank my Pubali Bank Limited and staff, they help me a lot. After that
I would like to thanks my parents and also my family.
I would also like to thank my friends who helped me by giving their valuable time while
preparing this report.
And, finally no less important is the contribution of our family to these works. These few
people have given us their unconditional support for this internship, and we honour them
with our utmost gratitude.
Executive Summary
This internship is prepared on the basis Pubali Bank Limited, Mohila College Branch,
Sylhet. This program helped me a lot to learn about the practical situation of a financial
institution. This internship “Deposit Mix of Denationalized Commercial Bank of
Bangladesh: A study on Pubali Bank Limited, Mohila College Branch, Sylhet”. Is the
picture of quality services provided by one of the very well reputed private bank of
Bangladesh; Pubali Bank Limited .The function of the bank covers a wide range of
banking and functional activities to individuals, firms, corporate bodies and other
multinational agencies.This internship has five chapters, which are described through the
experience about the function of Bank. Chapter one is the introduction of my study about
deposit mix. In this chapter I have described about introduction of the study, Objective of
the study General objective, Specific objective, Importance of the study, Methodology of
the study, Limitation of the study. In Chapter two, I have discusses about the overview of
Pubali Bank limited which consist of overall banking activities as well as general Banking
activities. In chapter three, I have described about the deposit of Pubali Bank limited
which includes all deposit activities of the banking system. Chapter four is the Deposit
Analysis of Pubali bank Limited and Chapter five Findings, Recommendations and
conclusion of my study.
Acronym
PBL = Pubali Bank Limited
PB = Principal Branch
BB = Bangladesh Bank
SCBS = State Owned Commercial Bank
FCBS = Foreign Commercial Bank
DFIS = Development Finance Institutions
PCBs = Private Commercial Bank
SME = Small And Medium Enterprise
ATM = Automated Teller Machine
RRDH = Renovation And Reconstruction of Dwelling House
SWIFT = Society For Worldwide Inter-Bank Financial Telecommunication
ROA = Return On Assets
ABB = Association Of Bankers Bangladesh
TIN = Tax Identification Number
FDR = Fixed Deposit Receipt
DD = Demand Draft
IBCA = Inter-Bank Credit Account
PO = Pay Order
IBDA = Inter-Bank Debit Account
OBC = Outward Bills Collection Process
SND = Short-Notice Deposit Accounts
PDPS = Pubali Deposit And Pension Scheme
PSP = Pubali Sanchay Prokolpo
MFD = Monthly Profit Based Deposit
MPSD = Monthly Profit Based Small Deposit
TBSD = Target Based Small Deposit
Table of Content
Introduction
1.1 Introduction:
Now a day, education is not just limited to books and classrooms. In today’s world
education is the tool to understand the real world and apply knowledge for the betterment
of the society as well as business. Through education is the theoretical knowledge is
obtained from courses of study, which is only the half way of the subject matter. Practical
knowledge has no alternative.
Modern banking is a result of evolution driven by changing economic activities and life
styles. Entering in to a new millennium, banking needs have become more diverse and
exotic than ever before. It is known now that commercial bank is a profit maximizing
institution. Hence it should provide loans to those sectors in which its return is higher. But
the nationalized commercial banks are conducting banking business with different
purposes. The main purpose is not just to make profit but also to maximize the social
benefit. The main functions of commercial banks are as follows:
A commercial bank collects and manages deposits. It provides cheque facilities and
interests for its customer deposit which may be either demand or time deposits of different
maturity. A commercial bank extends credit to a great variety of borrowers through loans
as well as by purchasing securities that are either fully or partly financed by commercial
banks. Commercial banks provide a variety of other services to their customers as for
example remittance facilities, credit information about customers, financial advice,
collection of debts and dues etc. Banks also provide a number of trust services to their
customers. These services may either corporate trust services, which arise in connection
with the issue of bonds; personal trust services under which they manage property on
behave of there.
The perfect coordination between theory and practice is paramount importance in the
context of the modern business world in order to resolve the dichotomy between these two
areas. Therefore an opportunity is offered by Leading University, Sylhet for its potential
business graduates to get three months practical experience, which is known, as Internship
program. For the competition of this internship program, the author of the study was
placed in a bank namely; The Pubali Bank Limited (PBL).Internship program brings a
student closer to the reality of the situation and thereby helps to launch a career with some
prior experience.
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1.2 Objectives of the study:
The objectives of this study is to familiarize with overall activities of the all department
maintained by Pubali Bank Limited, The main objective of this study is to analyse the
types of Deposits products PBL Offers to its customer, there target customers. Different
Transactions procedures and observe & evaluate Pubali Bank Limited activities &
performance, identify problems & recommend suggestion for the successful operations of
the Pubali Bank Limited and lastly to present an overview of the Pubali Bank Limited.The
objective are following:-
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1.3 Importance of the study:
Financial institutions invest intermediaries linking the savers and users of fund. These
intermediaries are interposed between the ultimate borrowers and lenders permitting them
efficient transfer of funds. Individuals having surplus funds can lend them for reasonable
return to entrepreneurs who need funds to take the advantage of economically and -
financially viable investment opportunities. The existence of financial institutions
facilitates such as exchange of resource. Thus, financial institutions such as banks have a
positive role in financing and investment which is a multidimensional process involving
the complexity of many interrelated and independent factors of diversified nature. It is
difficult to assess the contribution of each factor independently. The key to successful
banking lays in the ability of balance many activities simultaneously. The bank must
maintain a healthy growth rate, while at the same time it must take action to minimize the
risks it faces. The bank must also maintain enough cash on hand to meet obligation. All of
these are related to sound -performance of the bank. Evaluating bank performance,
examines the basic risk and return features of commercial banks. The financial
performance evaluation demonstrates the strengths of the performance over time. The
Pubali bank has a responsibility to ensure efficient and effective banking operation in a
sound manner. This study will look at the Pubali bank limited. Deposit mobilization
process and how the bank mobilizes deposit through their different loan product.
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1.4 Methodology of the study:
Sources of data
Data
Secondary data
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1.5 Limitations of the study:
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CHAPTER-TWO
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2.1. Background of the Pubali Bank Limited (PBL):
The bank was initially emerged in the banking scenario of East Pakistan as Eastern
Mercantile Bank Limited at the initiative of some Bengali entrepreneurs in the year 1959
under bank companies Act 1913. After independence of Bangladesh in 1971 this bank was
nationalized as per policy of the government and renamed as Pubali bank. Subsequently
due to changed circumstances this bank was denationalized in the year 1983 as a private
bank and renamed as Pubali bank limited. The-Government of the People’s Republic of
Bangladesh handed over all assets and liabilities of the Pubali Bank to the Pubali bank
Limited. Since then Pubali Bank Limited has been rendering all sorts of commercial
banking services as the largest bank in private sector through its branch network all over
the country.
The bank has been widely acclaimed by the business community from small entrepreneurs
to large traders and industrial conglomerates within this very short period of time it has
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been able to create vision. Presently it has 435 branches in operations and it has the largest
real time centralized online Banking network.
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2.4. Corporate Structure:
Designation Name
Mr.Moniruddin Ahmed
Mr.Monzurur Rahman
Mr.Rumana Sharif
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2.5. Management structure of Pubali Bank Limited:
The management Hierarchy of Pubali Bank Limited is given below:
Chairman
Board of Directors
Managing Directors
General Manager
Principal Officer
Senior Officer
Officer
Junior Officer
Sub-staff
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2.6. Features of Pubali Bank Limited:
Following characteristics covers Pubali Bank Limited:
Pubali Bank is a Commercial Bank.
It is working with all classes of people.
Economic development of the country with its social responsibility.
Mobilization of liquidity for economic stability.
Responsibility to social and economic growth.
It forms according to the company act 1994.
It is a limited company with limited liability.
Major purpose is to earn profit.
Service sealing agency.
Trader of credit.
Agent of client.
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2.8 Vision Statement:
The Pubali bank aims to provide financial services to meet customer expectations so that
customers fell that they are always there when they need banking service, and can refer
them to their friends with confidence. They want to be a preferred bank of choice with a
distinctive identity.
To build a sustainable and respectable financial institution.
To be a leading Commercial Bank, with a social focus, assisting in the economic
development of the country.
The profit of the bank used for the socio-economic development.
To be the pioneer in the banking industry.
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choice of distribution channel recognizing the unique lifetime financial needs of
clients.
To build an empowering organization with the structure, career development,
training and rewards to ensure the vision is achieved.
Using flexible technology, scale and risk management to ensure our services are of
superior value.
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2.11 Branch Network:
Head office works are divided in several divisions. Divisions are also divided into several
departments. Head office has direct controls overall 9 corporate branches, principle
branches & 17 Zonal offices. Generally, in charges of divisions, corporate branches,
principle branches, Zonal offices may hold the title GM or DGM. In departments, in
charges may DGM or AGM. But other branches have manager, who hold the rank starting
from GM to junior Officer, on the basis of the importance & size of those branches. Most
important task of the head office is to provide the necessary information of the up to date
market news, network support with the link of IT department and bring the Pubali
customer service so that officer can serve the customer much more easy and convenient
way.
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2.14 Philosophy of the Bank:
At present the bank has as many as 440 branches across the country and it is committed to
become equal service providers compatible with the norms commercial schedule bank. It
renders all types of personal, commercial and corporate banking services to its customers
within the purview of the bank companies Act, 1913 and in line with the directives and
policy guidelines lay down by Bangladesh Bank it works not only with commercial
mentality but also helps the people who are deprived from basic right and under
developed.
2.16 Deposits:
Deposits service include saving bank account, current account, fixed deposit account, short
term deposit account, pension account and foreign currency account. Saving and current
accounts are very common for all commercial banks. Fixed deposit account is naturally
targeted to idle money of elderly people. Pubali Bank limited provides handsome interest
to the account holders in return. Short term account is another version of fixed deposit
account. People who like to keep the money for a shorter period and earn some interest are
addressed hear with a better than savings account but less than fixed deposit interest.
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2.17 Loans:
Pubali bank offers a good number of admirable schemes in this field of banking. Micro
credit is one of them. Micro credit is a burning issue of them. Micro credit is a burning
issue of the time. Mass people still beyond poverty level are addressed in this scheme. A
lot of NGOs are engaged in the field. At the largest private bank of the country PBL can’t
aside. It’s now well involved in this sector. In a third world county like ours, SME sector is
one of the most promising sectors of economic activities. Thousands of SME entrepreneurs
are working hard for survival and at the same time creating employment for others. So it
deserves proper nourishment and PBL is currently doing that. Even in the global recession
Bangladesh is advancing forward with industrialization. Young and energetic
entrepreneurs are coming forwards with innovative ideas. They need fund to execute their
projects. PBL is always besides the really deserving candidates. Installation of an industry
is not enough for industrialization. A new industry needs a big amount as its working
capital. PBL arranges working capital for promising industries. Pubali bank serves
expatriate Bangladeshis through its remittance service. Hard earned foreign exchange of
these people is collected through legal channel and thus the country is benefitted. Pubali
Bank Limited performs all other banking activities in this sector for its client. In addition it
provides consumer loan and House Building loan for deserving people.
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2.18 Online Branch Banking:
The bank has set up a wide area network across the country which is named as Pubali
integrated Banking system to provide online branch Banking facilities to its valued clients.
Under this scheme, clients of any branch shall be able to do banking transaction with other
branches of the bank. Under this system a client will be able to do following types of
transactions:
Cash withdrawal from his/her account at any branches of the bank.
Cash deposit in his/her account at any branches of the bank irrespective of the
location.
Cash deposit in others account at any branch of the bank irrespective of the
location.
Transfer of money from his/her account with any branch of the bank.
Transfer of account from one to other branch.
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2.21 Corporate Social Responsibility:
Pubali Bank’s response to corporate social responsibility is embodied by the concept of
responsible banking, which is imbibed in the way we do business and drive the objectives
of the bank to be the best financial institutions in the Bangladesh. We recognize our
obligation to the society, so we are committed to always making informed. Reasonable and
ethical decision in the manner we carry out our business, how we treat our employees, and
how we relate to our customers. Our CSR initiatives over the years have focused on health
care, sports, education and youth development, the arts, philanthropy and activities.
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For the natural calamity and national tragedy PBL always extends its hand to help
Provide financial support.
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2.24 Retail Product of Pubali Bank Limited:
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CHAPTER-THREE
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3.1 Definition of ‘Deposit’:
According to the definition contained in section 86 of the Banking Act No. 30 of 1988 as
Amended by The Banking (Amendment) Act No. 2 of 2005, ‘’ deposit’’ includes a sum of
money accepted from any person as a business on terms under which it will be repaid with
or without interest or a premium, and either on demand or at a future time or in
circumstances agreed to by or on behalf of the person making the payment and the person
accepted it, provided that the person accepting the money is a person who in the usual
courses of business, lends money or makes available the use of the benefit of the money so
accepted to third parties and, also includes the acceptance of a sum of money in any
manner or from any person for a fixed period of time for investment in a business venture
of a bank on the basis that the profits or losses of the venture will be shared with the
person from whom such money is accepted in a manner determined at the time the money
is accepted.
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110 Monthly Profit Based Deposit (MFD) 14
111 Monthly Profit Based Small Deposit (MPSD) 179
112 Digun Sanchay Prokalpo (DSP) 123
110 Target Based Small Deposit(TBSD) 69
901 Current Deposit Account (CDA) 2035
109 Pubali Sekka Sanchay Prokolpo 25
902 Cash Credit Account (CCA) 107
Rules for Current Deposit Account Opening: There are certain rules & regulation to
open a current deposit account. These are as follows.
1) A minimum initial deposit of Tk.5000/- shall be required for opening a Current
Deposit Account.
2) Withdrawal of money by the customer from the account shall be allowed only
through the leaves of the cheque book issued by the Bank.
3) Signature of customer on the cheque book leaf for withdrawal of money shall have
to be tallied with the specimen signature recorded with the bank.
4) Payment, in no way, shall be allowed against advance/ post-dated and torn cheque.
5) The statement of account as furnished by the Bank shall be presumed as correct, if
no objection to the same is raised by the customer within a week of receipt of the
statement.
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6) Bank shall accept order of the customer for stop payment of a cheque and exercise
utmost care for meticulous compliance of the said order. But bank shall not be
made liable/responsible, if the said order remains unnoticed inadvertently.
7) Bank may, at the instruction of the customer, collect proceeds or money of the
cheque etc. for credit into the account but the same shall be accomplished at the
risk and responsibility of the customer. Bank shall always take efforts for early
collection but shall not be responsible for any delay or loss, if caused in the process
of collection. Cheque/instrument will require to be crossed by the customer before
depositing the same in the account. No withdrawal will be allowed against any
proceeds not yet collected.
8) Bank shall take maximum care and remain alert to record exactly all the
transactions of both credit and debit in the ledger with no faults. However in case
of any mistake/lapse Bank shall reserve the right to rectify the same and recover
the money from the customer without any reference/notice to the customer. Bank
shall not be made liable for any loss/inconveniences caused to the customer due to
such error/mistake/lapses.
9) Bank shall charge incidental expenses and recover the same from the account once
after every 6 (six) months for maintenance of the account. In case of closure of any
account within six months from the date of opening of the same, Bank shall deduct
TK.50/- from account prior to its closure.
10) Any change/ alteration of address/ constitution of the customer must be intimated
to the bank forthwith. In the matters relating to mailing and remittances, Bank shall
consider the post office and other courier agencies as representatives of the
customer and the Bank shall not be responsible for any delay or not delivery of
mails or remittances served through such agent.
11) Receipt against any cheque/money/instrument/book securities duly signed by the
authorized official of the bank shall be considered as legal one.
12) Bank shall reserve the right to close down any account, if the operation of the same
appears to be unsatisfactory. Moreover, Bank may close any account on other
genuine grounds without assigning reason thereof.
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Individual, joint:
Following papers/ documents are to be required for opening an account in the individual/
joint name:
1) 2 (Two) copy passport size photographs duly attested by the introducer.
2) Passport/ identify card/ Employer’s certificate/ union perished/ word
commissioners certificate.
3) Introducer’s signature.
4) Nominee and his/her photographs and national identity card or birth registration
card photocopy.
5) Signature of the nominee.
Proprietorship:
Following papers / document are to be required for opening an account in the
proprietorship name:
1. Introducer who maintaining an A/C with this Branch or any other branches
of Pubali Bank limited which is included in online banking.
2. 2 (Two) copy passport size photographs duly attested by the introducer.
3. Valid passport /identify card (For Defence Personnel) / union perished/
word commissioners certificate in each name.
4. Initial deposit minimum 500/- for opening a new account.
5. Declaration of proprietorship
6. Trade licences from municipality/ Union perished
7. TIN & VAT certificate.
8. Mandate if operation by 3rd party is to be allowed.
9. Account agreement form.
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5. Photocopy of partnership deed registered with registrar of firm duly attested by
notary public
6. Trade license from municipality
7. TIN & VAT certificate.
8. Photocopy of registration certificate duly attested by Notary Public in case of
registered firm
9. Account agreement form
10. Letter of partnership duly signed by all the partners, in case of non-registered firm
11. Resolution signed by all the partners to open the A/C
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Types of saving deposit account
Individual
Joint
Club
Society
Others
2) No one shall be allowed to open more than one savings Bank account in the same
name into a particular branch.
3) Every savings Bank Account shall have a separate account number. Withdrawal of
cash shall be allowed only through the leaves of the cheque book supplied by the
Bank.
4) A minimum initial deposit of TK.500/- Shall be required for opening saving Bank
Account.
5) Interest payable on daily/minimum balance shall be credited in June and December
every year.
6) The interest rate is 4.5%.
7) The bank will, as per govt. directives, realize all taxes/ surcharges/levies at fixed
rate annually or otherwise as decided by the govt.
8) Signature of the client on cheques from withdrawals of money must tally with the
specimen signature recorded with the Bank.
9) In case of closure of any account within 6 months from the date of opening of the
same, the bank shall deduct TK.230/- from the account as closing charge.
10) The bank reserves the absolute right to alter/amend these rules of saving bank
Accounts as well as rate of interest from time to time.
11) The bank reserves the right to close any account if the operation appears to be
unsatisfactory or on other genuine grounds without assigning any reason thereof.
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3.4.3 Short Term Deposit Account:
Short term deposit account is the net flow of current transaction including service and
interest payments.it as easy-to-use, convenient current account with instant access and
withdrawals to your money anywhere in Bangladesh.
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Table 3.4: Interest rate for fixed deposit account.
Make your money works for you, with one of your fixed deposit accounts. These accounts
are stable and secure and carry a government guarantee. You can invest for a one month,
three month, six month or one year or above term.
Table 3.5: Interest rate for Pubali Deposit and Pension scheme.
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Requirement for Account Opening:
1. An applicant can open PDPS accounts in his own name, in his or her spouse name
or in the name of his or her children operated by the guardian. The maximum
number of PDPS accounts from a single family cannot exceed five. Applicant’s
having a saving account with any of the branches of ‘’Pubali Bank’’ will be given
preference to a PDPS account.
2. The nature of the PDPS scheme would be 4/6/8years at the discretion of the
applicant.
3. Interest rate 4.5% to be credited quarterly and effective interest rate 8.00%.
4. The initial tenure as chosen by the applicant at the time of opening the account is
not amenable to change.
5. The first instalment may be deposited on any date of the month but subsequent
instalments shall have to be deposited by the 8thday of every month. Advance
payment of any number of instalments is acceptable.
9. In the event of failure to pay any monthly instalment, it will sole responsibility of
the PDPS account holder to settle the arrear instalments before or along with the
next due through a written instruction to the bank. In such case there will be a
penalty depend upon for per instalment to be paid with subsequent instalment.
10. No instalment will be payable if encashment would be occurred within one year. If
the premature encashment would be occurred after one year in that case he/she will
be entitled to get prevailing saving rate.
11. In case of premature closure of the account TK. 230.00/-( Two hundred thirty only)
will be charge as closing charge
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12. No cheque book will be issued to the client under this scheme
13. If there is any overdue/ classified loan in the name of the account holder with
‘’Pubali Bank’’ then ‘’ Pubali Bank’’ shall have the right to adjust the loan amount
from the deposit which has been deposited by the account holder
14. Loan may be allowed up to 80% of the deposited amount but not below TK. 1,
00,000/- against lien/pledge of the same amount.
15. In case of death of the applicant the relevant account will be closed,
Nominee/Nominees will receive the proceeds of the account (s). If the nominee is a
minor, the proceeds of the account will go to the legal guardian of the minor.
1. Interest rate 12.25% to be created which makes the principal double by 6 years
2. The name of the scheme is ‘’PUBALI DIGUN SANCHAY PROKALPO (PDSP)’’
and an account holder subscribing to this scheme will be called PDSP Account
holder.
3. An applicant can open PDSP account in his own name, in his/her spouse’s name or
in the name of his/her children operated by the guardian. The maximum no. of
PDPS accounts from a single family cannot exceed five.
4. An order instrument mentioning the amount payable after maturity shall be issued
favouring the depositor.
5. In case of discontinuation of the scheme, account will be settled as below:
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Different Duration Treatment Applied Rate of Interest
8. In case of lost instrument, duplicate instrument shall be issued as per rules of lost
instrument in FDR
9. Any account can be transferred from one branch to another branch, in that case,
TK.230/- Will be charge as account transfer fee.
10. The depositor should fill up to prescribed from designated for this purpose.
11. Interest on this scheme is subject to income Tax/Levi/Vat etc. as and when
imposed by the government.
12. The Bank reserves the right to make change/ alteration/ amendment/ additions/
modification etc. to the account and to its related charges fees etc. at any time /
stage without assigning any reasons whatsoever.
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3.4.7 Monthly Profit Based Small Deposit (MPSD):
This is a new monthly profit based small deposit which is defined as swain. The benefit of
the scheme will be paid on monthly basis. As such this is called monthly profit based small
deposit (MPSD). There are some freedoms of the clients to keep their money in any time
and any figure of deposit whatever they want.
Target groups:
* The benefit of the persons who intend to meet the monthly budget of the
families from the income out of their deposit. It may be retired service
holders, housewife of businessman & other professional or student.
* Pubali Bank foundation or other associations, which award monthly
scholarship/ stipends to students etc.
1. Tk. 100 or multiple of 100 would be paid per month. Interest rate 9% would be
credited per month and effective interest rate 9.00% per annum.
2. Deposit of TK.100 (taka one Hundred) and multiples thereof, but maximum TK.
25, 00,000 (Taka twenty five lac) shall be accepted under the scheme.
3. The deposit shall be for a period of 03 (three) years. The principal amount is
refundable on maturity.
4. Profit shall be paid on monthly basis & net of taxes and other government charges
5. Payment of monthly profit shall start from the subsequent month after a clear
minimum gap of 30 days from date of deposit.
6. Normally, deposit will be enchased able before 03 (three) years. But if any
depositor intends to withdraw his deposit before maturity due to certain
unavoidable reasons ,he would be allowed to do so in the following manner:
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No benefit including interest shall be allowed for pre-mature
encashment within one year
If the accounts/deposits are closed/ enchased after one of its
opening, benefit shall be allowed on the deposit at the prevailing
savings deposit rate
7. In case of death of depositor, the A/C shall cease to be operative and the amount
deposited so far shall be paid to the nominees, to the legal heirs of deceased as per
rules in force
8. Separate application from specially designed for the purpose shall be obtained
dully filled in and signed by the depositor. In addition to this the depositor must
have separate savings Bank account with the branch wherein the benefit on the
amount so deposited shall be credited every month
9. The receipt will not be transferable
10. Advance against lien on such receipt can be allowed up to 80% of the deposit
bearing normal rate of interest prevalent at the time on overdraft/loan
11. In case the instrument is loss the procedure for issuance of a duplicate will be the
same as applicable in case of loss of MPSD
12. During the period of such overdraft/loan , the monthly benefit shall be credited to
the concerned overdraft/loan account
13. Income Tax, @TK.10% will be deducted on the income received from the deposit.
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3.4.8 Pubali Education Scheme (PES):
Student who are eligible to receive funds from Bank are encouraged to enrol in this
deposit.
5. To avail of the education allowance, the depositor is required to deposit the receipt
with the bank duly discharged by him/her with written instruction to pay the
amount
To the students nominated by him/her on monthly instalments basis as stipulated the
scheme.
6. Advance against lien on such receipt can be allowed up to 80%of the deposit.
7. In case of death of the depositors, the amount will be payable to the nominees or in
the absence of nomination, to the legal heirs of the depositor on production of
succession certificate.
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8. But if the nominee after the demise of the depositor intends to continue the scheme
to get the monthly educational allowance as admissible under the receipt should be
surrounded to the bank discharge by the nominee.
Table 3.6: Interest rate for new car, reconditioned car and microbus
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Loan period/tenor 1-3 years
Risk fund 1%
For microbus:
Loan limit: Tk.2.00-15.00 lac
Risk fund 1%
Risk fund 1%
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3.5.2 Consumer durable scheme loan:
Need are constantly changing phenomena in human life to improve the standard of living.
Sometimes your saving is not good enough to meet your requirements. At, the Pubali
Bank, we take care of your financial needs and you can trust on us as your financial
partner needed.
Eligibility
For consumer durable scheme loan:
Employees of:
Confirmed service holders, Businessman, Professionals
Supportive cash flow to repay the loan
Government/semi Government/ Autonomous bodies
Sector corporation
Non-government organizations
Multi-national companies
Banks/ financial institutions
Educational institutions
Maximum age limit of the borrower- 60 years; in exceptional case, MD can relax
the age limit up to any age depending on the merit of the case.
Risk fund 2%
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Down payment/Equity 35%
Eligibility:
For education loan:
Table 3.9: Interest Rate for Education Loan:
Loan limit: 0.5 lac-5.00 lac
Down payment/Equity 8%
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Processing fee ( 15% vat will be added) 1%
Cash received from Entry the amount with Entry the amount with
customer with a cash customer name and customer name and A/C
deposit slip A/C no in no in
Store the voucher for sorting after day close Teller makes the customer
to attach with daily supplementary which A/C Cr and cash A/C Dr with
generates daily putting posting number in
the Cr voucher
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3.6.3 Cash Payment System of PBL:
Store the voucher for sorting after day Entry the amount with A/C
close to attach with daily supplementary no and cheque no in the
which generates daily entry register
Cheque of PBL
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3.6.4 Processing of a cheque Deposit:
Compare the title of the account on the deposit slip with the endorsement on the
cheque
Figure in word and digit must be same
Name should be same and there should be no pen through the line
Make sure that the cheques are endorsed properly
Date must not before six month and advanced date
Bearer can withdraw money from A/C but signature of the A/C must give his/her
signature in proper place. Bear must give his/her signature in right place where it is
identified.
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3.6.6 Issuance of demand against cash:
a) The customer shall complete the form, which is treated as an application as well as
voucher. The application form shall be checked on the following points:
The place of payment shall be such where we have a branch of our work
Full name of the payee is mentioned
The payee does not appear to be fictitious
The amount in words and figures is the same
The application is signed by the purchaser
If the purchaser is not an account holder he gives his address on the
application form.
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3.7 Issuance and Payment of Pay Order:
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Purchaser deposits the money through the application form.
Bank official fills tip the columns of the instrument with the help of application
form.
Make necessary entry in the payment order register
After joint signatures in the instrument the payment order is handed over to the
purchaser and the purchaser puts his signature on the counter part of the instrument
as acknowledgment of receipts.
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The house page is prepared in duplicate, and total is balanced with that of the
register. The dishonoured instruments with schedules, house pages received from
branches and the house book are sent to the clearing house.
The dishonoured instruments are delivered to the respective banks.
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The main schedule for each bank is prepared and total amounts of the respective
sub main schedules are entered thereon.
The house page is prepared in duplicate, and the total is balanced with that of the
register.
The instrument with schedules, house pages received from branches are sent to the
clearing house.
The instruments are delivered to the respective banks.
Before sending the instruments in the clearing house representative branch will
make the following entries:
Debit: HO General Account
Credit: clearing house (for other branches clients)
Credit: representative clients A/C
After completion of second clearing house representative branch will follow entries:
Debit: (for other branches clients)
Debit: Representative clients A/C for (Dishonoured amount)
Credit: HO General Account (total returned received amount)
Credit: HO General Account (for issuance of Inter Branch Credit Advance (IBCA) for
other branches clients)
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3.9 Bills Collection Process of PBL:
Pubali bank limited collects their bill by the following two ways and these are:
A. By clearing process
B. By outward Bill for collection process (OBC)
By Clearing: Pubali Bank Limited, stadium Branch situated outside clearing house so they
mainly use the OBC process.
By outward Bill for collection (OBC): customer deposit cheque for collection.
Instruments within the range of clearing are collected through local clearing house but
when the instruments are out of clearing range, they are collected through OBC
mechanism.
Customer present cheque of Officer make crossing Entry the cheque in OBC
66one bank limited Dhaka in the corner of the registers
branch in PBL for collection cheque
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CHAPTER-FOUR
Deposit Analysis of
Pubali Bank Limited
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4.1 Total Deposits of Pubali Bank Limited
Interpretation:
The total deposit of the bank was Tk. 359419 million at 31st December 2019 as against
Tk. 308900 million at 31st December 2018. The present strategy is to increase the deposit
base through maintaining competitive profit rates and having low cost of funds to ensure a
better spread with an average return on investment.
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4.2 Total Deposit Blend of Mohila College Branch
(Amount in Millions)
Interpretation:
This graph represents the total deposit blend of Mohila College Branch, Sylhet for the last
5 years. Total deposit is the blend of demand deposit and time deposit. In the year 2015,
where the total deposit was 115.77 million, there the demand deposit amount was 124.54
million and the time deposit amount was 1025.44 million. In the year 2019, the total
deposit of Mohila College Branch, Sylhet increased by 1201.05 million and the demand
deposit amount is 220.51 million of total deposit, during the year the time deposit amount
is 998.57 million of total deposit.
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4.3 Total Deposit of Mohila College Branch, Sylhet
Table 4.3: Contribution to Total Deposit of PBL, Mohila College Branch, Sylhet
(Amount in Millions)
Year Deposit of Mohila College Branch
2015 1135.67
2016 1149.34
2017 1158.23
2018 1169.56
2019 1175.42
Figure 4.3: Contribution to Total Deposit of PBL, Mohila College Branch, Sylhet
Interpretation:
In this table, we can see the total deposit scenario of PBL also the total deposit condition
of PBL Mohila College Branch, Sylhet at a glance for the last 5 years. This table also
represents the contribution ratio of Mohila College Branch, Sylhet to the total deposit of
PBL. Through the above graphical presentation, we get the contribution ratio of Mohila
College Branch, Sylhet to the total deposit of PBL. Here we find in 2015 when the total
deposit of PBL was 140980.55 million then the contribution of Mohila College Branch,
Sylhet was 80% of total deposit. Major findings are here that the contribution ratio was
decreasing in the last 5 years.
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4.4 Trend Analysis of Deposit of Mohila College Branch, Sylhet
Interpretation:
Here the index analysis is performed according to the information of deposit of Mohila
College Branch, Sylhet from 2015 to 2019. The base year is 2015. From the above figure it
found that in 2019, PBL’s Deposit is much more flourishing rather than any other
preceding year which is 117% from the base year 2015. This indicates that this bank is an
increasing trend in the deposit. From the base year 2015, the deposits were increased in a
significant every year.
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4.5 Deposit Mix of PBL, Mohila College Branch, Sylhet
Interpretation:
The above chart is showing the percentage of the different type of deposit account. In
2019 the bank mobilized total deposit of 359419 million, where deposit under schemes
130.01, FDR 829.56, Savings Deposit 182.75, Current deposit 25.67 and Short Notice
deposit 7.44. Here we can see from the Deposit Mix table, FDR has the highest percentage
of the total which is 71%. The second highest percentage stands for a current deposit
which is 65%. Considering the demand for potential as well as existing customers, PBL
has launched several deposit products which are drawn huge public attention. Customer’s
needs are foremost. PBL always emphasize on launching new products and review
existing products in order to meet customer’s financial need.
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4.6 SWOT Analysis:
SWOT analysis is the detailed study of an organization’s exposure and potential in
perspective of its strength, weak-ness, opportunity and threat. This facilitates the
organization to make their existing line of performance and also foresee the future to
improve their performance in comparison to their competitors. As though this tool, an
organization can also study its current position, it can also be considered as an important
tool for making changes in the strategic management of the organization.
4.6.1 Strengths
I. Pubali Bank Limited of Bangladesh Limited has already established a favourable
reputation in the banking industry of the country. It is one of the leading private sector
commercial banks in Bangladesh. The bank has already shown a tremendous growth in
the profits and deposits sector.
II. Pubali Bank of Bangladesh Limited has provided its banking service with a top
leadership and management position. The top management officials have all worked in
reputed banks and their years of banking experience, skill, and expertise will continue
to contribute towards further expansion of the bank.
III. Pubali Bank of Bangladesh Limited has already achieved a high growth rate
accompanied by an impressive profit growth rate in 2001. The number of deposits and
the loans and advances are also increasing rapidly.
IV. Pubali Bank of Bangladesh Limited has the reputation of being the provider of good
quality services too its, potential customers.
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4.6.2 Weakness
I. The main important thing is that the bank has no clear mission statement and
strategic plan. The banks not have any long-term strategies of whether it wants to
focus on retail banking or become a corporate bank. The path of the future should be
determined now with a strong feasible strategic plan.
II. The bank failed to provide a strong quality-recruitment policy in the lower and some
mid level position. As a result the services of the bank seem to be Deus in the present
days.
III. The poor service quality has become a major problem for the bank. The quality of the
service at PBL Bank of Bangladesh Limited is higher than the Dhaka Bank, Prime
Bank or Dutch Bangle Bank etc. But the bank has to compete with the Multinational
Bank located here.
4.6.3 Opportunities
1.To expand their business portfolio. The management can consider options of starting
merchant banking or diversify into leasing and insurance sector.
2.The activity in the secondary financial market has direct impact on the primary
financial market. Banks operate in the primary financial market. In order to reduce
the business risk, Pubali Bank Limited has Investment in the secondary market
governs the national economic activity. Activity in the national economy controls the
business of the bank.
3.Opportunity in retail banking lies in the fact that the country’s increased population
is gradually learning to adopt consumer finance. The bulk of our population is middle
class. Different types of retail lending products have great appeal to this class. So, a
wide variety of retail lending products has a very large and easily predicable market.
4.A large number of private banks coming into the market in the recent time. In this
competitive environment Pubali Bank Limited must expand its product line to
enhance its sustainable competitive advantage.
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4.6.4 Threats
I. All sustain multinational banks and upcoming foreign, private banks possess
enormous threats to Pubali Bank Limited. If that happens the intensity of competition
will rise further and banks will have to develop strategies to compete against an on
slough of foreign the banks.
II. The default risks of all terms of loan have to be minimizing in order to sustain in the
financial market. Pubali Bank Limited has to remain vigilant about this problem so
that proactive strategies are taken to minimize this problem if not elimination.
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4.7 What I have Learned from my Internship tenure:
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CHAPTER-FIVE
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5.1 Findings of the study:
While working at Pubali bank in the Deposit Department, in my three month observations
I have find out some benefit & drawback of this section. Also I have attained to the newer
kinds of experience. After the collecting and analysing the data I have got some findings.
These findings are completely from my personal point of view. These are given below:
Based on my experience, it can be said that Pubali Bank Limited should reconsider
its services that better satisfy customer needs and requirements Bank should be
more tactful in dealing with the customers and launch new products that fully meet
customer expectations.
Pubali Bank Limited overall performance in mobilizing deposit is excellent.
The features of the deposit products are not much competitive in compare with the
other commercial bank.
The cases different branches perform in deferent extreme areas.
Pubali Bank Limited is also in a vulnerable position considering the geographical
diversification.
Pubali Bank Limited spread and increases the ATM Booth in all over the country.
Through deposit of Pubali Bank Limited is strong enough yet is has to increase its
deposit for the future challenge.
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5.2 Recommendation:
For improve their performance and remove the barriers The Pubali Bank has to do
something and these are as follows:
To attract more clients PBL should sought new marketing strategy, which will
increase the deposit as well as bank’s profitability.
Effective and efficient initiative is necessary to recover the default loans.
Computerized banking system and latest communication devices are the most
important elements for the coming year. So For a sound and stable banking
operation, PBL has no alternative but to modernize.
Deposit operation of other bank is more dynamic and less time consuming. Pubali
Bank Limited should be armed with modern facility to face the challenge.
Pubali Bank should provide attractive salary, car facility for employee motivation.
The bank should improve their network availability.
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5.3 Conclusion
Thus, financial institutions such as banks have a positive role in financing and investment
which is a multidimensional process involving the complexity of many interrelated and
independent factors of diversified nature. It is difficult to assess the contribution of each
factor independently. The key to successful banking lays in the ability of balance many
activities simultaneously. The bank must maintain a healthy growth rate, while at the same
time it must take action to minimize the risks it faces. The bank must also maintain enough
cash on hand to meet obligation. All of these are related to sound -performance of the
bank. Evaluating bank performance, examines the basic risk and return features of
commercial banks. The financial performance evaluation demonstrates the strengths of the
performance over time. The Pubali bank has a responsibility to ensure efficient and
effective banking operation in a sound manner. This study will look at the Pubali bank
limited. Deposit mobilization process and how the bank mobilizes deposit through their
different loan product.
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Bibliography
Annual Report of Pubali Bank Limited 2015-2019
Asian Development Bank, website: (www.adb.org)
Audited financial statements 2018/2019 of Pubali Bank Limited
“Bank Management & Financial Services” 8th Edition. McGraw-Hill Singapore. –
Peter S. Rose & Sylvia C. Hudgins (2005)
Bangladesh Bank, official site: (www.bangladesh-bank.org)
Brochures of products of Pubali Bank Limited.
George foster, financial statement Analysis, 2nd Edition.
Official website of Pubali Bank Limited.
www.merriam-webster.com
www.worldbank.org
www.investorwords.com
www.bangla2000.com
www.wikipedia.org
www.pubalibangla.com
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