CHAPTER #1

INTRODUCTION

1
 1.1 Introduction

A Bank is usually defined as an institution, which deals in money. Today, however, the
functions of a bank have increased so much that it is considered a very vital agent of
development in a country like ours. Because of their positive involvement in trade, industry,
business finance and a host of other allied services, banks today form a very important part of
an economy. This is still true about the Nationalized Commercial Banks (NCBs) and PCBs in
Bangladesh, which form the most vital part of banking in the country. It is worth noting here
the main functions of a commercial bank are as follows:

1. A commercial bank collects and manages deposits. It provides cheque facility and
interests for its customer deposits, which may be either demand or time deposits of
different maturity. Thus, a commercial bank serves as a safe custody for people's money
as well as a medium of investment.
2. A commercial bank extends credit to a great variety of borrowers through loans as well as
by purchasing securities. In fact, most are either fully or partly financed by commercial
banks.
3. In addition to the above, commercial banks provide a variety of other services to their
customers e.g. remittance facilities, credit information about customers, financial advice
and collection of debts and dues etc.

4. Besides banks 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 behalf of their clients or
corporate pension funds individual firms providing retirement benefits for their
employees.

2
In view of above as well as many other services they provide, commercial banks are often

called department stores of finances. In Bangladesh too, this definition is equally applicable

because of the ever expanding role, a commercial bank plays today in the national economy

from financing the economic activities of the rural poor and unemployed youth as well as

negotiating abroad for financing the nation's foreign trade and industry.

3
 1.2 Rationale of the Study

The study was conducted on the General Banking activities of ONE Bank Limited,
Dhanmondi Branch. Dhanmondi Branch of ONE Bank Limited is considered to be one
of their prior concerned branches, as there are many business and financial institutions
located in the adjacent areas near Dhanmondi. Therefore, the activities carried out by the
personnel of the General Banking departments needs to be well acquainted with the customer
oriented services. So, being an undergraduate student of Business Administration, it was
challenging experience for me to concentrate on customer services being provided by ONE
Bank Limited. Apart from the educational knowledge, the study put extra weight regarding
the practical field and real life activities followed in the bank. Moreover, the study carried out
also added value to the technical mechanisms and operations of the OBL. Along with my
experience, the bank will be able to identify their flow of operations and can identify in
which functional departments, the bank needs to put extra concentration so that the operations
can be conducted smoothly to provide desired services to its customers.

4
 1.3 Objective of the Report

1.5.1 Objective
The broad objective of the study is to conduct the activity of the General banking department
of ONE Bank Limited, Dhanmondi Branch over the years of its operation in the
Commercial Banking sector in Bangladesh.

The specific objectives of this study are as follows:

To relate theoretical knowledge with practical experience regarding operation of

different functional units of the Dhanmondi Branch of One Bank Ltd

To know about the pattern of the clients who are taking the services from the bank.

To study the Influence of Marketing Strategies in the operations of ONE Bank Limited,
Dhanmondi Branch

To know about the present condition and future prospect of Credit and Loan
Administration department

To analyze the possible Strengths and Weaknesses for ONE Bank Limited.

5
 1.4 Methodology
1.6.2.1 Primary Data:
The primary information was gathered through interviews, observation and group discussion.
The primary data are collected from all the departments of ONE Bank Limited, Dhanmondi
Branch by interviewing personnel of the respective departments. The heads of the
departments or senior executives have been interviewed. However, the analysis and the
explanation are the authors’ own.

1.6.2.2 Secondary Data

The secondary information was gathered from Annual Reports, Periodic Publication of the
Bank, Bangladesh Accounting Standards, General Banking Manuals, Financial Statements of
the banks, websites, Bangladesh Banking Companies Act 1991 etc. The data of the study are
based on a review of existing brochures, documents and database of ONE Bank Limited.

1.5 Limitations

6
In every research work there exist some limitations that the researcher faces while conducting
different activities. In the process of the research work, I came across certain limitations that
hamper the actual findings and analysis of my research work. Some of the constraints that I
have faced while conducting the report work are as follows:

 The personnel of the bank are usually busy with their daily activities and routine tasks;
therefore interacting with them during their office hours was difficult sometimes. Although
most of the officers were very helpful and friendly but as because they have been busy with
their works, they could not give much time to light up my knowledge about the Bank’s
activities.

 The study conducted can be hampered, as the total evaluation cannot be covered in a short
period of 3 months. The actual scenario relating to the performance of the various
departments of the bank can just be highlighted and some issues might have been overlooked.

 The banking policies and manuals of OBL are of confidential in nature and thus it is
difficult to collect the necessary literature and documents within this short time.

None the less, I tried my level best to make this report a good one and despite of many
limitations in my approach, I expect that the reader of this report will have a broader view
and idea about the different services and the performance rendered by the different
departments of ONE Bank Limited, Dhanmomdi Branch.

7
 CHAPTER #2

Profile of the
Organization

8
 2.1 Background of the Organization

ONE Bank Limited was incorporated in May 1999 as a public limited Company under the
Companies Act. 1994, as a commercial bank in the private sector. The Bank is pledge-bound
to serve the customers and the community with utmost dedication. The prime focus is on
efficiency, transparency, precision and motivation with the spirit and conviction to excel as
ONE Bank Limited in both value and image.
The name 'ONE Bank' is derived from the insight and long nourished feelings of the
promoters to reach out to the people of all walks of life and progress together towards
prosperity in a spirit of oneness.
ONE Bank Limited is a private sector commercial bank dedicated in the business line of
taking deposits from public through its various saving schemes and lending the fund in
various sectors at a higher margin. However, due attention is given in respect of risk
undertaking, risk hedging and if not appropriately hedged, reflection of the same in
pricing. In the financing side, the bank's major concentration is in trade finance covering
about 20.88% of total financing as on YE2010 which is mainly a short-term investment. The
banks financing concentrates on both, working capital finance and long-term finance. OBL
has major concentration of financing in medium and large industries. Since the short-term
finance carries low risk compared to long-term finance; the financing strategy of OBL will
assist the bank to keep the risk at minimal.

While financing the industrial sector, the major concentration of the bank appeared to be
in the textile and RMG sector; both the above sectors cover 30.89% of the total
portfolio. OBL is also involved in cement construction and transport sector financing. In
the investment portfolio, OBL have substantial investment in quoted and non-quoted shares
of different organizations including some very prospective financial institutions. The
bank has shown its acumen in reducing its exposure from ship scrapping sector, steel re-
rolling where the bank had investment earlier. With the increase in exposure to RMG, the
bank has increased its non-funded business income substantially. With an age of only 8
years, the OBL has taken initiative to launch

9
IT based banking products like ATM facilities, E-banking etc that are praiseworthy. At
present OBL is operating 50 branches across Bangladesh.

2.2 Corporate Mission and Vision Statements & Corporate

Slogan of ONE Bank Limited

2.2.1 Vision Statement

To establish ONE Bank limited as a Role Model in the Banking Sector of Bangladesh.

To meet the needs of the Customers, provide fulfillment for the People and create
Shareholder Value.

2.2.2 Mission Statement

Constantly seek to better serve the valued Customers.

Be pro-active in fulfilling the Social Responsibilities for the company.

Review all business lines regularly and develop the Best Practices in the industry.

Working environment to be supportive of teamwork, enabling the employees to

perform to the very best of their abilities.

2.2.3 Corporate Slogan

…WE MAKE THINGS HAPPEN

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 2.3 Board of Directors:

The Board of Directors consists of the following Directors:

1) Mr. Zahur Ullah (Chairman)

2) Ms. Farzana Chowdhury (Vice Chairperson)
3) Mr. Asoke Das Gupta (Director)
4) Mr. A.S.M. Shahidullah Khan (Director)
5) Mr. Mohammad Idris (Director)
6) Mr. Kazi Rukunuddin Ahmed (Director)
7) Mr. Khandkar Sirajuddin Ahmed (Director)
8) Mr. Shawket Jaman (Director)
8) Dr. Khaled Hasan (Independent Director)
9) Mr. Salahuddin Ahmed (Depositor Director)
10) Mr. Farman R. Chowdhury (Managing Director)

11
 2.4 Management Hierarchy of ONE Bank Limited

CHAIRMAN BOARD OF DIRECTORS

Managing Director (MD)

Deputy Managing Director (DMD)

Senior Executive Vice President (SEVP)

Executive Vice President (EVP)

Senior Vice President (SVP)

Vice President (VP)

Senior Assistant Vice President (SAVP)

First Assistant Vice President (FAVP)

Assistant Vice President (AVP)

Senior Principal Officer (SPO)

12
Principal Officer (PO)

Senior Officer (SO)

Officer

Junior Officer (JO)

Assistant Officer (AO)

13
2.5 Location Map of the Branches of
ONE Bank Limited in Bangladesh

14
 2.6 Financial Highlights of ONE Bank Limited for the
Last Five Years

Taka in Million

SI Particulars 2005 2006 2007 2008 2009

No
1 Authorized Capital 1,200 1,200 1,200 4150 4150
2 Paid up Capital 807 888 1039 1299 1558
3 Statutory Reserve 262 381 527 688 914
4 Capital 1307 1650 2107 2658 3573
5 Total Deposits 18030 20253 24484 27961 39365
6 Total Loans & Advances 13,851 15,681 19709 23287 32533
7 Investment 2,165 3,321 3587 3715 6789
8 Import Business Handled 17,435 21,601 25133 27844 34442
9 Export Business Handled 11,916 16,360 19413 25214 25561
10 Guarantee Business Handled 1,367 947 949 1454 5075
11 Total Income 2,007 2.886 3587 4293 5824
12 Total Expenditure 1,520 2,211 2658 3186 4145
13 Net Interest Income 315 398 638 676 1035
14 Operating Profit 626 674 929 1108 1679
15 Operating Expenses 310 452 598 708 950
16 Profit after tax and provisions 302 347 405 422 727
17 Total Assets 20,105 23,143 27475 31744 45163
18 Number of Correspondents 268 270 280 285 300
19 Number of Employees 386 580 781 859 1039
20 Number of Branches 18 23 30 32 39
21 Loan Deposit Ratio 76.82% 77.43% 80.50% 83.58% 82.64%
22 Capital Adequacy Ratio 9.47% 10.03% 10.25% 11.02% 10.90%
23 Tier-1 (Capital) 8.44% 8.69% 8.91% 9.33% 9.08%
24 Return on Assets 2.87% 3.12% 3.67% 3.74% 4.37%
25 Earnings per Share 37.46 39.06 31.18 27.08 46.63
26 Dividend
Cash 15% 10% - - -

15
 Bonus Share 10% 17% 25% 20% 32%
27 Net Asset Value (Book Value/ 159.34 171.03 176.39 178.24 196.89
Shareholders’ Equity per Share

Source: ONE Bank Limited Annual Report 2009

16
CHAPTER #3
TOPIC ANALYSIS &
DESCRIPTION

17
3.1 Background of OBL, Dhanmondi Branch
Dhanmondi branch of OBL starts its journey on October 10, 2004. Dhanmondi is a
Commercial as well as residential area and for this reason; future potential of bank in this
area is very high. But, approximately every bank has a branch in this area and starts to
operate as profitable branch. Now it is one the most profit potential branch of OBL.

3.1.1 Key information of the Branch

Branch Manager Md. Fazle Rahman

Chowdhury
Date of Branch opening October 10, 2004
Total manpower strength 28 Persons

3.1.2 Comparative position of the Branch for last three years:

Taka in Crore
Particulars 2007 2008 2009

Deposit 93 90 147
Total Loans and advances 49 45 136
Non performing Loans & Advances - - -
Import 3.40 13.18 144

Export - 1.61 5.24

Operating profit 1.38 1.35 5.01
Manpower Strength 24 25 24

18
3.1.3 Performance analysis [Up to December 2010]

  (In Crore Tk.)

Particulars Target Achieved %

Deposit 162 147.13 91

Total Loans and advances 185 114.40 62

Total Import 62.15 35.37 57

Total Export 2.08 0.19 09

Operating profit 6.10 4.48 73

3.1.4 Deposit Mix Taka in Crore

Up to last Audit Up to Current Audit
Nature of Accounts 10.11.2009 21.11.2010
Unit Amount Unit Amount
FDR 808 117.93 854 115.27
CD 368 02.28 376 04.12
STD 31 03.43 34 01.72
SB 1399 08.03 1435 09.99
DPS 1045 07.95 1050 09.60
School Banking 46 0.03 76 00.05

Department oF One Bank Limited

19
 GENERAL
BANKING

LOAN
ADMINIS FOREIGN
EXCHANGE
TRATION

CREDIT

The Departments of ONE Bank Limited, Dhanmondi Branch

3.2 General Banking Activity

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The General Banking Department of One Bank Ltd, Dhanmondi Branch consists of the
following sections:
 Account opening section
 Cash section
 Clearing section
 Accounts section

3.2.1 Account Opening Section

It is said that, there is no banker customer relationship if there is no A/C of a person in that
bank. By opening an A/C banker and customer create a contractual relationship. However,
selection of customer for opening an account is very crucial for a Bank.

3.1.2.1 Account Opening Procedure in a Flow Chart

Applicant fills up the He/She is required For individual

relevant information in to fill up the introduction is
the prescribed specimen signature needed by an
application form card account holder

After depositing the cash

one chque book & a pay- The authorized officer
in-slip book is issued. scrutinizes the
introduction and examines
the documents submitted.

Issuance of deposit slip and

ACCOUNT IS OPENED. the deposit must be made in
cash. No cheque or draft is
acceptable to the Bank.

Before opening of a current or savings account, the following formalities must be

completed

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1) Application on the prescribed form;
2) The customer information must be filled up with the form;
3) Introduction: The following persons can introduce an A/C opener:
i. An existing current/savings account holder of that branch;
ii. An officer of that branch (not below the rank of an Assistant Officer.);
iii. A respectable person of the society or locality who is well known to the
Manager/2nd man of the branch concerned;
4) Furnishing photographs;
5) Banker will supply a set of printed forms required for opening the account, which will
normally include:
i. Specimen Signature Cards (SSC);
ii. Deposit Slip Book
iii. Check Book Requisition slips;
6) Customer should carefully read and fill of the application form;
7) Putting specimen signatures in the specimen card.
8) Any special instructions with regard to operation of the account should be noted on
the relevant signature card boldly duly authenticated by the A/C holder should be
obtained;
9) The required Account Number for the new Account from the Account Opening
Register should be obtained;
10) Obtain the signature and A/C number of the Introducer on the advice and getting the
signature properly verified by an Authorized official of the Bank;
11) The Deposit slip properly filled in and signed by the customer;
12) Then the new A/C number should be written at the appropriate place of the Deposit
slip and mark new Account on both the copies of the deposit slip and request the
customer to deposit the money at the cash counter;
13) Place the signature cards, Advice of new account, a copy of Deposit slip, photographs
and other necessary papers/documents etc. in a file;

22
 14) Obtain approval of the Authorized officer for opening the new account on all relevant
papers while giving approval for opening an account the Authorized official should be
satisfied about the Introducer;
15) The Authorized officer on the advice of new A/c and on the specimen signature cards
should also attest the signature of the new A/C holder;
16) After approval of the opening of the A/C, get the Cheek book requisition slip signed
by the customer;
17) Deliver the checkbook to the customer after properly marking the Account number,
name and place of the branch on each leaf of the checkbook;

On completion of account opening open a file for the new a/c holder and file all relevant
papers forms etc. Signature cards, copies of Advice, Deposit slip Debit ticket etc. is
distributed to concerned departments;

Documents required for all types of Accounts & Customers:

 Advise of New Account (in duplicate)
 Specimen signature cards (in duplicate)
 Account Opening Agreement Form
 Photographs of Account Holders (in duplicate)
 Nationality certificate/Photocopy of valid passport/Voter ID card
 Deposit Slips Book
 Cheque book Requisition slips
 Letter of mandate authorizing another person/s to operate the A/C on behalf of the
Account holder, where necessary.
 Nominee form duly filled in
 Transaction profile duly filled in

23
Additional documents are to be obtained for opening some special accounts

 Proprietorship Firm
 Name of authorized persons, designation, specimen signature card.
 Trade licence.
 Tax Receipt ( For export/ import )
 Declaration of Proprietorship
 Mandate if operation by third party is to be allowed.

 Partnership Firm
 Account must be opened in the name of the firm.
 The firm should describe the names and addresses of all partners.
 Partnership deed is required which duly attested by Notary Public
 Trade licence from city corporation is needed.
 Tax receipt ( For import/ export )
 Photocopy of Registration Certificate duly attested by Notary Public in case of a
Registered Firm.
 Letter of Partnership duly signed by all the partners, in case of non-Registered Firm.
 Resolution signed by all the partners to open the A/C.
 Mandate as to operation of the A/C.

 Clubs/Societies/Trustee/Associations/Non-trading Institutions etc

 Certified copy of Resolution for opening and operation of account
 Certified copy of Bye-laws & Regulations/ Constitution.
 Copy of Government approval (if registered).
 In case of death, A/C should be stopped until the club nominates another person.
 Trust deed is needed-for trustee.

24
3.2.1.2 Issuing Chequebook to the Customers

Requisition slip filled Banker issues new

properly along with the Banker Verifies the cheque book if every
cheque book number. Slip thing in the right from

Enter the new cheque book number

in the register book against the
specific customer’s name

Issue of Fresh Cheque Book

Fresh checkbook is issued to the account holder only against requisition on the prescribed
requisition slip attached with the checkbook issued earlier, after proper verification of the
signature of the account holder personally or to his duly authorized representative against
proper acknowledgment.

Procedure of issuance of a Fresh Cheque Book

 A customer who opened a new A/C initially deposits minimum required money in
the account.
 The account opening form is sent for issuance of a Cheque book
 Respected user first draws a Cheque book
 Officer then sealed it with branch name.
 In-charge officer enters the number of the Cheque Book in Cheque Issue Register.

25
  Officer also enters the customer’s name and the account number in the same Register.
 Account number is then writing down on the face of the Cheque book and on every
leaf of the Cheque book including Requisition Slip.

 The officer who has the signing authority signs in the leaf where the next requisition
slip exists in the Cheque book.
 The name of the customer is also written down on the face of the Cheque book and on
the Requisition slip.
 The word “Issued on” along with the date of issuance is written down on the
requisition slip.
 Number of Cheque book and date of issuance is also written on the application form.
 Next, the customer is asked to sign in the Cheque book issue register.
 Then the respected user signs on the face of the requisition slip put his initial in the
register and hand over the Cheque to the customer.

3.2.1.3 Issue of Duplicate Cheque Book

Duplicate Cheque Book instead of lost one should be issued only when an A/C holder
personally approaches the Bank with an application Letter of Indemnity in the prescribed
Performa agreeing to indemnify the Bank for the lost Cheque Book. Fresh Cheque Book in
lieu of lost one should be 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 should be
recorded in ledger card and signature card as usual. Series number of lost Cheque Book
should be recorded in the stop payment register and caution should be exercised to guard
against fraudulent payment.

26
3.2.1.5 Issue of New Cheque Book (FOR OLD ACCOUNT)
All the procedure for issuing a new Cheque book for old account is same as the procedure of
new account. Only difference is those customers have to submit the requisition slip of the old
Cheque book with date, signature and his/her address. Computer posting is then given to the
requisition slip to know the position of account and to know how many leaf/leaves still not
used. The number of new Cheque book is entered on the back of the old requisition slip and
is signed by the officer.

Procedure of issuance of a New Cheque Book

If the Cheque is handed over to any other person then the account holder the bank addressing
the account holder with details of the Cheque book issues an acknowledgement slip. This
acknowledgement slip must be signed by the account holder and returned to the bank.
Otherwise the bank will not honor any Cheque from this Cheque book.
At the end of the day all the requisition slips and application forms are sent to the computer
section to give entry for these new Cheques.

3.2.1.5 Transfer of an Account

 The customer submits an application mentioning the name of the branch to which he
wants the account to be transferred.
 His signature cards, advice of new account and all relevant documents are sent to that
branch through registered post.
 The balance standing at credit in customer’s account is sent to the other branch
through Inter Branch Credit Advice (IBCA).
 No exchange should be charged on such transfer.
 Attention is also given in this connection.

27
3.2.1.6 Closing of an Account
Upon the request of a customer, an account can be closed. After receiving an application
from the customer to close an Account, some procedures are followed by a banker. The
customer should be asked to draw the final Cheque for the amount standing to the credit of
his A/C less the amount of closing and other incidental charges and surrender the unused
Cheque leaves. The A/C should be debited for the account closing charges etc. and an
authorized officer of the Bank should destroy unused Cheque leaves. In case of joint A/C, the
application for closing the A/C should be signed by all the joint holders.

A banker can also close the account of his customer or stop the operation of the account
under following circumstances:

 Death of customer  Specific Charge for fraud /forgery

 Customer’s insanity and insolvency  Order of the court

28
3.2.2 Types of Accounts
A deposit account is an account that allows money to be deposited and withdrawn by the
account holder. It can be a current account, savings account, or other type of bank account.
These transactions are recorded on the bank's books, and the resulting balance is recorded as
a liability for the bank, and represent the amount owed by the bank to the customer. Banks
charge a fee for this service, and also may pay the customer interest on the funds deposited
based on the type of account. Basically the following types of deposit accounts are opened in
the OBL, Dhanmondi Branch. They are as follows:
 Savings account
 Current account
 Short term deposit account
 Resident Foreign Currency Deposit (RFCD) account
 Non-Resident Foreign Currency Deposit (NFCD) account

3.2.2.1 Savings Account

A savings account authorizes the bank to invest the funds deposited by the customers. A
healthy interest rate is offered for the balance maintained and OBL's rate is very competitive
in the industry. Unlimited withdrawals and deposits can be made using OBL branches, ATM,
or using cheques.

Rates: Taka
6.00% ( below 1 crore )
6.00% ( below 25 crore )
7.05% ( below 50 crore )
7.55% ( below 100 crore )
8.65% ( above 100 crore )
 

29
Fee:

Tk.15000 or below : No Fee

Tk.5001 to Tk. 25,000 : Tk. 100.00 / Half Yearly
Tk.25,001 and above : Tk. 250.00 / Half Yearly
VAT applicable

Benefits:
Personalized Checkbook
Pay Bills or Credit Card from customer’s account
ATM Access
Transfer of Funds: Fund transfer branch to branch. Instruction letter for fund
transfer is mandatory.
Foreign Remittance: ONEBBDDH

3.2.2.2 Current Account

Current account is an interest-free deposit account maintained by a business or individuals.
Cash deposits or withdrawals can be made using cheques, ATM Machines, or simply with the
assistance of a teller at any OBL branch of customer’s choice

Fee:
Tk.250.00+VAT 15% (Half Yearly June & December).

Benefits:

Personalized Checkbook
Pay Bills or Credit Card from your account
ATM Access

30
 Transfer of Funds: Fund transfer branch to branch. Instruction letter for fund
transfer is mandatory.
Foreign Remittance: ONEBBDDH
Statement– Available at OBL Branches

3.2.2.3 Short Term Deposit (STD) Account

Short term deposit account is known as STD account. STD account is opened for short period
of time. This account is suitable for those who want liquidity and also some return
simultaneously. Clubs, societies, trusts, individuals and corporations normally open STD
account. Money can be withdrawn by cheques from this account. Transaction can be carried
out without limitations. For STD account banks generally offers low interest rate. At One
Bank Ltd. in a STD Account, deposits are being held for 7 days to 89 days, which is
withdrawn by giving prior notice. In STD deposit account, interest is payable to the customer.

Rates:
4.00% ( below 1 crore )
5.50% ( below 25 crore )
7.00% ( below 50 crore )
7.50% ( below 100 crore )
8.60% ( above 100 crore )
Fee:
TK 250.00+VAT 15% (Half Yearly June & December)
Benefits:
Personalized Checkbook
Pay Bills or Credit Card from customer’s account
ATM Access
Transfer of Funds: Fund transfer branch to branch. Instruction letter for fund
transfer is mandatory.
Foreign Remittance: ONEBBDDH

31
3.2.2.4 Fixed Deposit Account
A fixed deposit is a term deposit account. In this account a certain amount of money is
deposited for a certain period of time and upon completion of the period the account holder
receives the predetermined amount of money at a predetermined rate of interest. If the
account holder fails to complete the period of deposit holding with the bank then the account
holder receives interest as per savings account rate of the bank. The period varies generally
from 3 months to 1 year or above. The bank issues a receipt favoring the account holder at
the time of account opening, which is popularly known as fixed deposit receipt or FDR. FDR
contains amount of money deposited, name of the account holder, rate of interest, maturity
date etc. The FDR is not negotiable and non transferable.

If a customer believes in long-term investments and wishes to earn higher interests on his
savings, then OBL has the perfect Fixed Deposit product for him. The rate he earns is very
competitive, and with various added features, he maximizes the output of his investments.  

Rates:
13.00% ( below 1 crore )
13.50% ( above 1 crore )

  Fee:
Tax 15% & VAT (depends on FDR amount)

  FDR Types:
FDR (3 Months & above but less than 6 months)
FDR (6 Months & above but less than 1 year)
FDR (1 year & above)

32
Procedure of Opening Fixed Deposit Account
Before opening a Fixed Deposit Account a customer has to fill up an application form, which
contains the followings:
 Amount in figures
 Beneficiary’s Name and Address
 Period
 Rate of Interest
 Date of Issue
 Date of Maturity
 How the account will be operated (singly or jointly)
 Signature(s)
 F.D.R. No.
 Special instructions (if any)

After fulfilling the above information and depositing the amount, FDR account is opened and
a FDR receipt is issued and it is recorded in the FDR Register, which contains the following
information:
 FDR Account No.
 FDR (Fixed Deposit Receipt) no.
 Name of the FDR holder with address
 Maturity period
 Maturity date
 Interest rate

Loss of FDR
In case of a lost FDR, the customer is asked to record a GD (General Diary) in the nearest
Police Station. After that, the customer has to furnish an Indemnity Bond to OBL. A
duplicate FDR is then issued to the customer by the bank.

33
Renewal of FDR
The FDR becomes automatically renewed for like periods and amounts, unless this is
withdrawn by the depositor or, the bank notifies the depositor in writing at least 15 days in
advance of the original or, any renewed maturity date (s) of its desire to terminate the account
or change any term and condition of the account.

Matured Encashment
After maturity, a purchaser can apply for payment of FDR. He/she can take either entire
amount i.e. principal amount plus interest or only the interest. If the purchaser wishes to draw
only the interest earned, this interest can be paid in cash or transfer to customers account. If
the purchaser wants entire amount, he/she should submit the instrument to the bank. The
payment process in brief is given below:
 Instrument received with two signatures on back side.
 Signature verification from FDR application form.
 Calculation of total amount to be credited to customer after subtracting income tax
and excise duty.
 Payment is made by transfer to account of customer or cash. For cash payment, a
debit voucher is issued for payment of interest credited.
 Entry in FDR issuing register and made customer account nil.
 Mark paid on application form and FDR issuing register.

3.2.3 Payment Order (PO)

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Payment order issued by a branch of the banks is, not a mode of remittance. It is a security
instrument not a mode used for remitting fund. The customer has to apply in the Bank's
prescribed form for issuance of a Pay Order (PO) and make payment for the PO in cash or
cheque against his account with the Bank covering the PO amount and necessary charges.
Bank will issue the PO and hand over the same to the purchaser. PO is drawn on the issuing
Branch and can only be paid by the issuing Branch. A Pay Order is always crossed 'account payee 1
and it is not transferable. The PO is required to be presented to the issuing Branch for payment
either through clearing or for credit to the beneficiary's account, for special case pay order can
also be paid in cash with proper identification A Payment Order never bounces and It has no
time limit for its validity. The PO application form is stored as a record and at the same time
a PO issuing register is maintained. If cash makes the payment, then the application form is
stored by Cash Department and when the payment is made through cheque or debiting
customer’s account, then the application form is stored by Remittance Department. Banks
provide remittance facility to transfer funds by charging a commission. Commissions charged
for remittance vary from bank to bank. But VAT charged by the government is same for all
the banks. Usually, VAT is 15 percent of the commission charged by a particular bank. The
commissions charged by One Bank Ltd. for issuing Pay Order up to any amount is Tk 20/-
flat. and 15% VAT.

Issuance of PO
 Application in prescribed form
 Receiving cash deposit, cheque or debiting customer’s account
 Writing PO without alteration
 Check and signed by two authorized officer.
 Handover to customer with acknowledgement
 Entry into PO issuing register
 Preserve the application form.
During issuance, two authorized officer signs the PO. After their signature, they use a P.A.
number for preventing fraud and forgery.

35
Payment of PO
Usually it is payable at the issuing branch itself. Due to their online service, any other branch
of One Bank Ltd. all over Bangladesh can pay PO purchased from any branch. For
purchasing PO, a customer has no need to have an account. But for encashment, it is
necessary to have an account in the bank. Because PO is only payable to payee i.e. the
instrument is “Account payee.”

Stop Payment of PO
 Application with reason
 Signature verification
 Ensure PO amount not transferred to the payee
 Obtain indemnity bond
 Issuance of duplicate PO
 Note in register and application form
 Message to the branches.
 Preservation of application and indemnity bond

Cancellation and Refund of PO

If the payment of this order has not been completed and refund is requested. will endeavors to
notify the appropriate office, branch, correspondent or agent to cancel the transaction. The
cancellation process in brief is as below:
 Application with instrument
 Signature verification
 Ensure PO amount not transferred to the payee
 Confirmation about duplicate issue
 Obtain cancellation charge
 Note in PO register and application form
 Cancellation of instrument.
The charge for cancellation of PO is Tk. 100/- (flat)

Issuance of Duplicate PO

36
In order to issue duplicate Pay Order the following procedures should be followed.
 Application with reason
 Verify the signature with the original application form.
 Ensure PO amount not paid.
 Obtain indemnity bond
 Issuance of duplicate PO
 Note in register and application form
 Message to the branches.
 Preservation of application and indemnity bond.
The charge of issuing duplicate instrument in lieu of lost instrument (PO) the charge is –Tk
100/- plus actual charge relating to stamp paper for indemnity.

3.2.4 Demand Draft (DD)

The demand draft is a written order by one branch of a bank upon another branch of the same
bank to pay a certain sum of money to or to the order of a specified person. This is an order
instrument in which the issuing branch gives instruction to the payee/ drawee branch to pay
certain amount of money to the order of certain person /firm/organization

 A draft is always an order and never a 'bearer' instrument.

 It is a negotiable instrument like a Cheque i.e. it can be endorsed, collected, and
delivered to the endorsee.
 D. D. may be issued to any person and it can also be issued in favor of a firm,
company or local authority on written request duly signed by the purchaser.

37
Issue of a Demand Draft
 The purchaser is asked to complete the press-ribbed form, which is treated as an
application as well as credit voucher.
 If against cash- the application is given to the customer to deposit the cash with the
cashier.
 Voucher (Application form) passed duly signed & sealed is delivered to remittance
department for preparation of DD. The application for remittance is to be signed by
the drawer of Cheque.

Care in Writing a Demand Draft

(a) DD leaves are consumed serially
(b) Written correctly in a neat hand writing
(c) Payees name
(d) Issuing branch name
(e) Date, Serial number (branch wise, beside the printing number putting an oblique
(f) Amount in words and figures
(f) Name of Drawee Branch
(g) Test for Tk. Amount & above
(h) Signed by two PA holders & handover with cost memo to the purchaser
(i) Preparation of IBCA and dispatch.

Payment of Demand Draft

After Receipt of IBCA: The IBCA received from issuing branch is responded by the drawee
branch and then this becomes voucher.
Dr. General A/ C- Drawer Br.
Cr. Bills Payable A/c-D.D. Payable.

Particulars of DD is entered in D.D. Payable Register under initial of an officer.

38
Commission

The commission of D.D issuance is 0.15% at the principal amount upto Tk 10 Lac with 15%
VAT and 0.10% at the principal amount of Tk 10 Lac and above with 15% VAT
The D.D cancellation charge is Tk.50/-

3.2.5 Telegraphic Transfer (TT)

It is an instruction duly tested sent by telex/fax/telegram/ telephone/ express mail etc. to the
drawee branch for paying a certain sum of money to a specified person. This mode of transfer
of fund may be effected at the written request an account holder of the branch and against
value received from him. It is preferable to obtain a confirmatory cheque from the customer.

Characteristic Telegraphic Transfer

 Issued by one branch to another branch and massage is tele-communicated
 Remittance / transfer of money is done through tested tele messages.
 Remittance is effected on the basis of tested message.
 Test key apparatus is required.

Issue of T. T
Obtain T.T. application form duty failed in and signed by the purchaser/applicant with full
account particulars of the beneficiary. Receive the amount in cash/transfer with prescribed
commission, postage, and telephone/telex charge. Prepare T.T. message inserting test number
(code number). Enter in T.T. issue register. Issue advice to the payee branch.
Dr.: Cash or Cheque
Cr.: Gen. A/C Paying Branch
Cr.: Income A/C - Commission on T. T.
Cr.: Telegram charges. (Cost Memo given to the purchaser)

39
T. T. message prepared in duplicate, checked and signed by the in charge and Manager,
tested and transmitted. IBCA prepared in duplicate. The original sent to paying branch as
confirmation of message.

Commission

The commission of TT issuance is 0.15% at the principal amount upto Tk 10 Lac with 15%
VAT and 0.10% at the principal amount of Tk 10 Lac and above with 15% VAT
The T.T cancellation charge is Tk.50/-

3.2.6 Money Transfer (MT)

In the prescribed format the purchaser / the drawer branch instruct the drawer branch to pay a
specified sum of money to the payee named in the IBCA preferably by crediting his account.

Issuance Procedure of M.T

 Application in writing in prescribed form
 Deposit of money including commission
 Entry in M.T. issue register serially
 M.T. advice in IBCA (in block letters) with Test.

Vouchers for Money Transfer

Dr. Cash / Party A/C
Cr. General A/C (Drawee Br)
Cr. income A/C Commission
Cr. Postage Charge.

40
Commission

The commission of MT issuance is 0.15% at the principal amount upto Tk 10 Lac with 15%
VAT and 0.10% at the principal amount of Tk 10 Lac and above with 15% VAT
The M.T cancellation charge is Tk.50/-

3.2.7 Traveler’s Cheques (TC)

Traveler’s Cheques are issued by the banks to the people going abroad the risk of loss or
inconvenience in carrying cash while traveling. The purchaser has to fill Travel &
Miscellaneous Form (TM) prescribed by Bangladesh Bank. Bangladesh Bank gives
particulars of the Passport, confirmed Ticket, Airline and the destination. While issuing TCs
the purchaser is required to sign the TC in the prescribed place in presence of the issuing
Teller and again countersign on same at another prescribed place at the time of encashment
before encashing / Paying banker abroad. The Paying cashier will tally both the signatures
and if they agree, he will make payment of the TC. TCs of reputed Companies/ Banks are
universally accepted for payment at all important financial centers and big cities of the world.
American Express Bank Limited’s Traveller’s Cheques are issued by the ONE Bank
Limited, Gulshan Branch.

The salient features of T.C. are:

i) The buyer of T.C. needs not to be a customer of OBL.
ii) The buyer has to deposit money with the branch of OBL equivalent to the amount of
the T.C. he wants to buy.
iii) Each T.C. is signed by the buyer at place marked “when countersigned below with
this signature”, before the OBL Officer.
iv) T.C. is issued in single name .It is not issued in joint names or names of clubs,
societies and companies.
v) There is no expiry period for the T.C.

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3.2.8 Sanchaya Patra
The account opening desk also issues Sanchay Patra. It is the instrument of Government of
Bangladesh. Bangladesh Bank issues Sanchaya Patra on behalf of government. All the
scheduled banks sell this instrument as an agent of Bangladesh Bank. Banks get commission
at the rate of 0.5 percent i.e. 0.5 taka per 100 taka. Banks maintain a register for commission
on sales and forward this claim to Central Bank within the announced date of Central Bank.
Then, Central Bank pays the commissions to the bank. Sanchaya Patra is free from charges
such as income tax and excise duty as it is an instrument of government.

3.2.9 Bills Collection

One Bank Ltd. collects the payment of cheques deposited by their customers. Usually, inter-
branch collection is made through online, but inter-bank collections are made through
Clearing House.

Process of collection
When a branch receives cheques for collection, they can collect it directly through the
“Clearing House” or through other branches. Each branch has a zone for collection. If the
cheques of different banks received from customers are within their clearing zone, they
collect it directly through their “Clearing Section.” But if the cheques are outside their zone,
they forward these cheques to another branch of that area with forwarding slip named for
collection. This is called Outward Bills Collection (OBC).
The process of forward cheques to other branches i.e. OBC is as below:
 Receiving cheques from cash section and entries are made to OBC register.
 Then, stamp OBC on cheques with OBC serial number.
 Crossing and Endorsement.
 Confirmation of endorsement by authorized signature.
 Making a forward slip narrating the number of cheques, total amount and account
number to which the amount is to be credited.
 Attach forwarding slip and cheques only and make a copy of them.

42
  Preserve copy of forwarding slip and cheques with customer’s depository slip.
 Send the cheques with forwarding slip to respective branch.

In the same way, when a branch receives cheques or bills for collection from other branches
of One Bank Ltd. then the branch in whose favor the bills are sent, collects bills for those
branches. This is called Inward Bills Collection (IBC).
The step-by-step collection process of IBC may be stated as below:
 Receiving the cheques for collection
 Making DAD (Deposit Awaiting Disposal) Entries.
 Making Bills Department Entries.
 Crossing and Endorsement
 Confirmation of endorsement by authorized signature.
 Send to the “Clearing Section.”
 Send a message to depositors whose cheques are dishonored.
 Making debit and credit vouchers for honored cheques and stored.
At One Bank Ltd. the charges for collection are as follows:
Collection of local cheques Where there is no Nil Postage Tk. 100/
Clearing House
Collection of outstation Charge – Tk. 200/- per cheques
cheques through own branches
Collection of outstation Collection Charge - Up to Tk. 99,999.99 @
cheques from locations where 0.15% Minimum Charge Tk.
there is no branch of OBL 100/-
-From Tk. 1 lac to Tk. 10
Lac @ 0.10@ Minimum
charge Tk. 300/-
- Above Tk. 10 Lac: 0.10%
Minimum Tk. 3000/-

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3.3 Cash Section
The cash section of ONE Bank Limited, Dhanmondi Branch deals with all types of
negotiable instruments, cash and other instruments and treated as a sensitive section of the
bank. It includes the vault, which is used as the store of cash, instruments. If the cash stock
goes beyond this limit, the excess cash is then transferred to Bangladesh Bank. Keys to the
room are kept under control of cash officer and branch in charge. The amount of opening
cash balance is entered into a register. After whole days’ transaction, the surplus money
remains in the cash counter is put back in the vault and known as the closing balance. Money
is received and paid in this section. (See Figure )

3.3.1 Cash Payment

 First, the client comes to the counter with the Cheque and gives it to the officer in
charge there. The officer checks whether there are two signatures on the back of the
Cheque and checks his balance in the computer. After that the officer will give it to
the cash in charge.
 Then the cash in charge verifies the signature from the signature card and permits the
officer in computer to debit the client’s account by giving posting. A posted seal with
teller number is given.
 Then the Cheque is given to the teller person and he after checking everything asks
the drawer to give another signature on the back of the Cheque.
 If the instrument is free of all kind of error the respected officer will ask the bearer to
sign on the back of it.

44
  If the signature matches with the one given previously then the teller will make
payment keeping the paying Cheque with him while writing the denomination on the
back of the Cheque.

 He will then put his/her initial beside the bearers’ signature. She/he will also sign it on
its face, will write down the amount by red pen and will put on a scroll number from
his/her scroll register.
 Then the Cheque will be sent to the cash counter. At the cash counter bearer will be
asked again to sign on the back of the instrument.
 The cash officer will then enter the scroll number in his/her register and will pay the
money to the bearer.
 At the end of the day these scroll numbers of the registers will be compared to ensure
the correctness of the entries.

3.3.2 Cash Receipt

 At first the depositor fills up the Deposit in Slip. There are two types of deposit in slip
in this branch. One for saving account and another for current account.
 After filling the required deposit in slip, depositor deposits the money.
 Officers at the cash counter receives the money, count it, enter the amount of money
in the scroll register kept at the counter, seal the deposit in slip and sign on it with
date.
 Then this slip is passed to another officer who enters the scroll number given by the
cash counter in his/her register along with the amount of the money, sign the slip and
keep the banks’ part of the slip. Other part is given to the depositor.
 All deposits of saving account are maintained by one officer and other accounts by
another officer

 At the end of the day entries of both of these registers are cross checked with the
register kept at the cash counter to see whether the transactions are correct or not.

Cash in Vault:

45
Cash in Vault is covered by burglary and housekeeping policy and also fire policy. The limit
is annually obtained according to the volume of cash require to be kept in the Vault and each
branch should keep their overnight cash holding within such insured limit. Surplus cash, if any,
should be transferred to the feeding branch or Local Office as the case may be. However, if
under any circumstances, the branch receives cash exceeding their overnight Vault Limit at a
time during business hour when it is not possible to transfer the surplus cash to the feeding
branch or Local Office it should bring it to the notice of Head Office and asked for additional
insurance coverage for the surplus cash, positively.

Cash in Counter:
Cash in Counter also covered by burglary and housekeeping policy and also fire policy limit
is determined on the basis of volume of Cash required to keep in the counter. The Tellers unit
should ensure to keep the cash in counter within that limit.

Cash in Transit:
Cash in Transit is generally covered by open policy with specific amount. Under such open
policy amount may exceeded the limit during the year but payment of premium is adjusted at
the end of the year. However, monthly declaration for cash covered is required to be given.
While carrying the Cash there remains a limit for single carriage, say single carriage limit is
Tk. 50.00 Lac. Cash should not be carried at a time more than Tk. 50.00 Lac, otherwise in case
of any mishap it will not be covered by the Insurance Policy.

Opening of Cash:
The Bank maintains 02 (Two) heads of accounts, such as:

46
 1. Teller Cash
2. Reserve Cash
Before opening the Branch Vault will be opened for taking away the required cash from the
Vault. The Head Teller will distribute the required cash to the Teller duly recorded and signed
in the reserve Cash Proof Sheet and Teller's Cash Proof Sheet simultaneously. Transfer of
Cash among the Teller's during transaction hour is made by incorporating the amount of cash
to the respective Cash Proof Sheet of each Teller duly signed by each other's Cash Proof Sheet.

Joint Custodian of Cash:

Vault should be in the joint custody of the Head Teller and Sub-Manager / Manager with
permission of Head Office. The Keys will always remain with the Joint Custodian.

Packaging & Bundling of Cash:

Every Teller unit should make necessary arrangement for packing of notes. Issue able and
Non Issue able notes should be segregated and packaged separately and properly. Bangladesh
Bank will not accept the cash unless it is packaged properly i.e. by segregating the notes into
Issue able and Non Issue able packages.

Transfer of excess Cash:

Here Transfers of excess cash means withdrawal from other branches / Local Offices. In this
city area where more than one branches are operating there is one feeding branch that lifts the
excess cash from the branches also give delivery of cash to meet their additional requirement, if
any.

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Mutilated Note:
Mutilated Note means a note of which a portion is missing or a note which is composed of
pieces, provided that the note presented is clear half a note in area and if the note is composed
of pieces a note of joint together, each piece is the opinion of Prescribed Officer, identifiable
as the part of the same note.

Altered Note:
Altered Note means a note in which an alternation has been made in the number signature or
value or any other respect.

Mismatched Note:
Mismatched Note means a note, not formed by joining a half note of one note a half note of
another note.

Obtained Note:
Obtained Note means a note, not being a mutilated or altered note, which has become or has
been rendered fully or partially undecipherable.

Closing of Cash:
 Each Teller is responsible for balancing the cash received and paid during the day.
 All transactions (Receipts & Payments) are to be recorded in each Teller's Proof Sheet
and they are to hand over the cash to Head Teller duly counted and checked.
 Head Teller will check cash physically and accept the cash.
 The Head teller is responsible to accept all the cash from the Teller's and transfer it to
the Reserve Cash. Head Teller checked with Local Cash In Hand with computer system
 After balancing with local Cash In Hand and Physical Cash In Hand.
 He should register the cash in the Vault register denomination wise duly signed by him
and the joint custodians and in the same process will open the Vault door after
keeping the main door closed.

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Standing Instruction
Banks render a useful service to their customers by complying with their standing
instructions. Standing instructions are the instructions given by a customer to his banker that
relates to certain financial dealings, (receipts, transfer of/ presents of money) and the
customers intend his banker to carry out the instructions on a regular basis. These instructions
are meant either for a specific period mentioned by the customer, or are to be carried out until
a notice to the contrary is given by the customers. These instructions relate to dealings that
are generally repetitive in nature. Some of these instructions are as follows:
 Payment of life insurance premium to LIC periodically.
 Payment of periodic membership fee/subscription to clubs, professional associations
etc.
 Payment of various bills of the customer.
 Transfer of specific amount from one account of the customer to another account.
 Collection of dividends on behalf of customers.
 Collection of pensions from Govt. Department
 Collection of interest on Government securities held in safe custody or otherwise.

Procedures of Standing Instruction

The procedure of standing instructions is stated below:
 On receipt of any letter containing instructions for effecting periodical payments or
remittances, verify the signature of the account holders on the letter.
 Record the instructions in the standing instructions Register.
 Note the instructions at the top of the relative ledger folio of the account.
 File the letter in the standing instructions letter file.
 Record the instructions in the computer (if any).
 Execute the instructions regularly on their due date.
 Due date dairy is to be maintained.
In respect of payments, however, the banker bears no responsibility, if the customer's account
doe’s not possess minimum amount required to carry out the instructions.

49
In carrying out such instructions the banker act as his customers agent and hence may held
liable for the loss sustained by him due to his negligence by way of non compliance or
delayed compliance of the standing instructions. At One Bank Ltd. the charges for standing
instructions (other than DPS or Loan installments) is Tk.100/- for compliance of each
instruction plus cost of instrument.

Safe Custody
Banks render a valuable service to its valued customers only by accepting their valuables like
share, securities, bonds, title deeds, etc. for safe custody. Articles of safe custody are not
subject to general lien.
The procedure generally followed by the banker in this regard is as follows:
 Along with a prescribed application form, the articles for safe custody may be handed
over to the banker openly. The banker in this respect knows articles. It should be
noted down that whether the share, securities etc. are fully paid or partly paid and
whether interest and dividend (if any) will be collected by the banker.
 Particulars and instructions are to be recorded in the safe custody register and ledger.
Separate page is used for each customer. All valuables must be kept in the fireproof
admiral inside the strong room by mentioning respective account number on the
packet or box of the valuables.
 To issue a receipt for the valuables deposited with the bank for safe custody the
banker deliver it to the customer after putting authorized signature. Office copy will
remain with the bank.
 At the time of the withdrawal of the valuables, the receipt issued by the bank should
be dully discharged by him acknowledging receipt of the valuables and surrendered to
the banker. In case of the receipt is lost, a letter of indemnity is to the obtained from
the customer and discharge of the customer is to be obtained on a duplicate receipt.

50
Locker Facility
Banks provide locker facilities to the public at selected branches. The banks for this purpose
have strong rooms which are equipped with safe deposits lockers. There are different sizes of
lockers available in the selected branch of bank e.g. big, medium and small: The charges vary
for different sizes of locker. The charge is higher for big locker and lower for small one.

 Any person can take or hire a locker from the bank. However, bank insists him/her to
be a customer by opening on account.
 The person taking a locker on rent has to fill in a proper lease document which
contains the terms and conditions of hiring the locker.
 The bank maintains a locker register in which all transactions relating to each of the
rent out lockers are recorded on a separate page.
 Two keys are used for opening the lockers, of which one kept by the hirer in his
possession while the other i.e. the master key retained by the banker himself.
 The contents of the locker are not known to the bank.
 The master key should remain in the custody of the manager or any other authorized
officer during the days.
 Refundable caution fee is taken at the time of allowing locker facility.
 Duplicate key can be issued after paying duplicate key charges.
At One Bank Ltd. there are three types of lockers available. They are: Small, Medium and
Large and the charges are Tk. 1200/- for small Tk. 1800/- for medium and Tk. 2500/- for
large lockers. The security money is for locker of any size is Tk. 1000/ which is refundable.

51
3.4 Clearing section
Clearing is performed in the clearing section of the general banking department.Clearing is
the process by which an individual cheque/ instrument is exchanged between collecting and
paying Bank within the same station through Central Bank mechanism. In the stations where
there is no Branch of Bangladesh Bank, the clearing is done through Sonali Bank. The claim
on a particular Bank and that Bank’s claim on other Bank are settled through Clearing House
mechanism. Each member Bank has an account with Central Bank and either it owes or some
Bank owes to it shall be settled through that account. Clearing operation is centralized at
clearing Branch i.e. Branch maintaining account with Bangladesh Bank for clearing purpose.
Clearing House is an organization of banks constituted for the purpose of settling inter-bank
liabilities due to transfer of deposits by a customer of a particular Bank to that of another Bank.
Every scheduled Bank is a member of the Clearing House. Representatives of all the
scheduled banks assemble at the Clearing House on each, business day with Bank-wise list of
cheques, drafts etc, received from customers and drawn on different Banks under the jurisdiction
of the Clearing House. The Clearing House sits at the appointed hour on all working days under the
leadership/supervision of a House Super of the Central Bank or its agent as the case may be,
and works within the regulations framed thereof on the basis of prevailing banking practices.
At present the clearing house sits four times for settling payment of cheques, drafts, bills etc. The
clearing house sits at 9.30 a.m. for delivery and receipt of the instrument from each other.
Same Day Clearing House sits at 11.00 a.m. for quick settlement of payment of the
instruments of Tk.5.00 lac and above drawn on other local branches within the 5 k.m. area. First
return house for the same day clearing sits within the transaction hours i.e. by 3.00 p.m. and second
clearing return house sits for return of the instruments after 5.00 p.m. At present central bank
provides a NIKASH Program to settle the daily transactions against receipt of instruments
through deposit slips for collection of funds through the use of most modern electronic
terminals/computer situated at banks who are members, representatives or associates of the
clearing systems. The net dues receivable or payable arrived at after off- setting the total amount
of the instruments delivered, are adjusted through the respective bank's clearing account
maintained with the Central Bank or its agent.

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Functions and Procedures
On receipt of the cheques, drafts, bill of exchange etc. by the Cash Dep't. for clearing purpose,
the respective Teller/Cashier affix Seal/Stamp Special Crossing immediately on the top
portion of the instruments in the left hand comer on the face of the said instrument in order to
ensure the safe transmission of the money to the Payee's A/c. Then the Cash Department hands
over the cheques/instruments to the Clearing Department of the bank branch. The clearing
department affixes clearing seal/stamp with date on the face of the instruments. Then the
clearing cheques/instruments are given proper endorsement by putting recorded signature on the
back of the instruments through the authorized officials/representatives of the bank branch.

Clearing Process
Cheques for clearing can be classified into two classes. One is the “Same day cheques” and
other one is “Normal day cheques.”

Same Day Cheque

Cheques those are required to be cleared through the clearing house on the same day, at
which it is sent for clearing, are called the “Same day cheques.” Prerequisites of same day
cheques are-
 Face value of cheque should be above 5 lacs.
 Paying banks should be within Motijheel area (5km around the central bank).

Normal day Cheque

On the other hand, cheques those are required to be cleared through clearing house on the
next day at which it is sent for clearing are called the “Normal day cheques.” Normal day
cheques send to head office, next day they are send to clearing house. It takes one more day
for clearing than same day cheques. Clearing house arranged twice in a day – in morning and
after launch. In morning, 1st house starts at 9:30 a.m. and clears the normal day cheques. 2 nd
house starts at 11:30 a.m. and clears the same day cheques. After launch, the dishonored
cheques are returned to the collecting banks. This is called “Return House” that starts at 2:30
p.m.

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The steps are as below:
 Receiving the cheques for collection.
 Making computer (Clearing and Online deposit) Entries.
 Making a branch and bank wise summary and attach it with cheques of respective
banks.
 Send to the head office.
There is no charge for collection of local cheques through clearing house. For cheques
returned unpaid from clearing house the charge is as follows:
Outward clearing unpaid- Insufficient Funds- Tk. 100/- and for Inward Clearing unpaid-
Insufficient funds – Tk. 200/-

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3.5 Accounts Section
The accounts section of OBL, Dhanmondi branch is responsible for overall branch
accounting performance including daily balancing of GL account outstanding appeared in the
Daily Balance Sheets and other detailed ledger/ sub-head details etc. Apart from that the
accounts a section has to perform some other activities related to human resource
management and other activities that helps in the smooth operation of the branch. The
accounts section has to prepare different statements like daily position, additional information
for Thursday position, monthly statement, quarterly statement, half yearly and yearly
statement etc. The human resource activities performed by the accounts section involves
dealing and keeping record of the joining of new employee in the branch, release order, leave
permission, payment of salaries etc. The accounts section is also responsible for activities
those facilitate the smooth operation of the branch. Example of such activities includes
safekeeping of all the vouchers, requisition of stationeries, storage and distributes among the
departments, payment of bills by the Branch etc.
One of the important duties other than Branch maintenance is to prepare the statements on
regular basis and send them to Head Office and Bangladesh Bank. The list of statements,
categories and their submission date is given below: Among the other responsibilities of the
accounts section preparing and sending statements on time is very important. Everyday they
have to maintain and store five documents of previous day. They are: Daily Position –
General Ledger, Profit and Loss Statement, Reserve Cash proof Sheet, Transaction List and
Inter branch transaction list The name of the statements prepared by the account opening
department is stated below in a table. :

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Sl Name of Statement Category Submission Date
No
01 Daily Position – General Ledger – AD-1 Daily Daily
02 Additional Information for Thursday Position–AW-1 Weekly 1st day of each week
03 Consolidated Detailed Statement of Condition – Monthly 5th day of each month
Profit and Loss
04 Consolidated Condensed Statement of Condition Monthly 5th day of each month
05 Off-Balance Sheet Items Monthly 5th day of each month
06 Deposit held by Sector Corporation Monthly 5th day of each month
07 Supplementary Information on SBS-1 Return Monthly 3rd day of each month
08 SBS-1 Monthly 5th day of each month
09 Monthly Business Position Monthly 1st day of each month
10 Reconciliation Statement of Suspense Account Monthly 5th day of each month
11 Leave Statement Monthly 15th day of each month
12 Salary Statement Monthly 25th day of each month
13 Challan Statement Monthly 10th day of each month
14 SBS-2 Quarterly 15th day of following
quarter
15 Statement of Fixed Assets and Depreciation Quarterly 15th day of following
quarter
16 Half yearly and Yearly Statement As per Head Office
requirement

CHAPTER #4

Findings 56
 4.1 STRENGTHS

1. The top management of the ONE Bank Limited who are the key personnel involved
from the very beginning of the bank’s operation, has contributed heavily towards the
growth and development of the bank.

2. The branches of OBL are situated in the important commercial areas of the country,
such as Motijheel, Gulshan, Imamgonj, Agrabad and other important areas, where the
banking service is mostly required.

3. Relationship with existing clients is very strong. OBL have developed professional
relationship with their clients and customer orientation is highly acclaimed.

4. Installation and use of highly sophisticated, automated system that enables the bank to
have on time communication with all branches reduces excessive paperwork and
saves time for valued customer transaction.

5. Customer can deposit and withdraw money from any branch of One Bank in any
place around Bangladesh

6. Strong network through out the country and provide quality of service to every level
of customer.

7. Form the very beginning OBL tries to furnish their work surroundings with modern
equipment and facilities. Online Banking is one of the main attractions, which gave
this bank a better position among private Banks.

8. The corporate culture of OBL is very much interactive compare to our other local
organizations. Management and owners (directors) share a very good relationship.

9. Co-operation with foreign banks is very effective. They have relationship with more
than 200 foreign banks. The foreign Banks also give preference to this Bank, which
helps to give smooth services to the exporter and importer through this bank.

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10. OBL provides Diversified Product Lines to its clients, which attracts the clients to
render the services offered by the bank.

11. The General banking service of OBL is very strict and for this reason it get huge
amount of customer

12. Government of Bangladesh has rendered its full support to the banking sector for a
sound financial status of the country, as it is becoming one of the vital sources of
employment in the country nowadays. Such government concern will facilitate and
support the long-term vision for ONE Bank Limited.

13. The online Banking and SWIFT facility will open more scope for OBL to reach the
clients not only in Bangladesh but also in the global arena. It will also facilitate wide
area network in between the Entrepreneurs and the Bank for smooth operations in
order to meet the desired need with least deviation.

14. OBL can recruit experienced, efficient and knowledgeable workforce as it offers
attractive salary packages and good working environment.

15. OBL can pursue diversification strategy in expanding its current line of business. The
management can consider more options for developing the retail banking sector or
diversity in to leasing and insurance. By expanding business portfolio, ONE Bank
Limited can shrink business risk.

16. The application of Management Information System is continuously developing and

development in future process can attract more potential customers
17. The major share of customers of ONE Bank Limited, Dhanmondi Branch is not
local. So it can take proper initiative to attract more local customers.

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 4.2 WEAKNESSES
1. Advertising and promotion is one of the weak points of ONE Bank Limited. There is
a marketing department but this department has very low exposure and does not have
any effective plan for aggressive marketing activities.
2. Higher service charge in some areas of banking operation than that of nationalized
banks discourages customers from opening or maintaining accounts with this bank.
3. Most of the time the management hire employees for high post from other banks
instead of promoting the Bank’s employees, which hampers the motivation of the
employees.
4. One Bank use backdated software that can not provide better service.
5. Dependency on term deposit. The bank has to depend a lot on the term deposit by the
clients rather than any other source.
6. Default culture is very much familiar in our country. For a bank, it is very harmful. As
ONE Bank Limited is comparatively new than other older banks; it has not faced it
seriously yet. However, as the bank grows older it might take difficulties in
recovering money from the clients.
7. Bangladesh Bank exercises strict control over all banking activities in local banks.
Sometimes the restriction imposed, can create barrier in the normal operations and
policies of the bank.
8. Rival bank can easily copy the product offering of OBL. Therefore the bank is in
continuous of product innovation to gain competitive advantage over its Competitors.
9. Due to the emergence of new commercial banks in recent years, there is a slight
decline in the overall market share for the banking industry.

59
CHAPTER #5
RECOMMENDATIONS
And
Conclusion

60
 5.1 RECOMMENDATIONS

ONE Bank Limited should engage in more promotional activities, it should go for
aggressive advertising and promotional activities to get a broad geographic coverage. ONE
Bank Limited, Corporate Head Quarter should make some plans for all the branches
located in different areas, so that the branches can get the maximum exposure from the
surrounding areas. Some recommendations for the general banking services of ONE Bank
Limited and the Dhanmondi Branch are as follows:

More outdoor promotions such as Billboards can be set up in the commercial areas as well

as the rural areas to make awareness among the clients. In the Dhanmondi area and the
surrounding area there are very few billboards and advertisements of ONE Bank Limited, so
the bank should increase the number of outdoor promotions. Advertisements in the national
daily newspapers can be given to make customers aware of the new service features
available.

More Personal Selling staffs and employees can be appointed to make more exposure of

the bank.

OBL should set up a permanent Retail Banking Department in the Dhanmondi Branch

as the number of customers taking the services of Retail Banking is increasing day by day.

OBL, Dhanmondi Branch should focus more on the Small and Medium Enterprises, as

this sector has the market potential to grow. Along with the Garments sector, the bank should
also encourage businessmen and entrepreneurs to take Loans and invest in different sectors
such as Jute Industry, Leather Industry, and Chemical Industry etc.

Expand the export business of ONE Bank Limited, Dhanmondi Branch for more export

financing to minimize the difference between export & import financing.

61
 ONE Bank Limited, Dhanmondi Branch should go for stronger customer relationship

strategy.
Information system should be more developed. OBL should increase the usage of Internet

for local and international correspondence. Computer division needs to be up dated and
extensive for the greater welfare of the branches. The use of modern communication software
can be used for faster transaction delivery to the clients. The Online Banking of ONE Bank
Limited is to be implemented properly.

An uninterrupted network system has to be ensured by the bank. It will save the officials

from much hassle and will save time.

Decision making process can be made more decentralized. Participative approach should

be adopted to gain prompt and effective result. Group discussion can be practiced in some
situations to make quick decision making.

A little more service quality up gradation may help the bank to hold on to old customers

and avail more new customers. For this purpose the Bank should open up Customer Service
Departments in the Dhanmondi Branch and Research and Development Division in the
Corporate Head Quarter to understand customer needs more accurately.

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 5.2 CONCLUSION

Since the banking service especially the private Banks are doing a good business, so it is
clear that the modern people are more concerned about securing their valuable assets and get
high-quality and timely services. For this reason lot of new commercial banks has been
established in last few years and these banks have made this banking sector very competitive.
So, now banks have to organize their operation and do their operations according to the need
of the market. Banking sectors no more depends on the traditional method of banking. In this
competitive world this sector has stretched its wings wide enough to cover any kind of
financial services anywhere in this world. The major task for banks, to survive in this
competitive environment is by managing its assets and liabilities in an efficient way.

The study was conducted on the proceedings of the activities carried out by ONE Bank
Limited, Dhanmondi Branch. Analyzing the general banking activity over the years of
operation is main objective of this study. As the study was concentrated towards the technical
aspects of operational efficiency, therefore, few limitations occurred while conducting the
study. In spite of having many challenges, adverse economic conditions and market patterns
during the years, the bank tried to maintain its growth trend through the indicators like
profitability, deposit mobilization, asset creation and network expansion. ONE Bank
Limited proved to be successful by offering quality and timely services to its customers.

On the basis of convincing reasons, ONE Bank Limited management believes that in the
coming years the Bank will try its level best to sustain its earning capacity and maintain a
steady growth. With the current performance of the Bank and with little improvement here
and there the management of the bank will certainly make it one of the best Private Banks in
Bangladesh in the near future.

63
 Bibliography

1) Kotler, Philip. (2003), “Marketing Management”, 11th Edition, Prentice Hall.

2) Bhuiya M. Abul Bashar (1996), “Bangladesh Laws On Bankins and Banking”, 2 nd
Edition, M. Haider Chowdhury
3) David, Fred R. (2005), “Strategic Management- Concepts & Cases”, 10th Edition, Prentice
Hall.
4) Annual Report of ONE Bank Limited, Year 2009.
5) Internal records and documents of ONE Bank Limited, Dhanmondi Branch.

Internet Sources

1) www.onebankbd.com
2) www.google.com

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