General Midland

General Banking activities of Midland Bank Limited
Md. Sagedur Rahman

Hajee Mohammad Danesh Science and Technology University
Abstract
General Banking provides the foundation of banker-customer relationship. This is an era

of keen competition among Banks. It is the most important and preliminary work of a
bank. The regular service given to customers such as Depositing or drawing money, selling
of instruments to them for remittance purpose, collection of instruments, providing other
ancillary services to keep customer section busy. Personnel’s of this section should posses
the required behavior for regular satisfaction of the customers. This report focuses three
months working experience at Aganagar Branch of Midland Bank Ltd. As a part of
satisfying their objectives through their customer Midland Bank Ltd. Offers the following
accounts: Current Deposits, Savings Bank Deposits, Fixed Deposits, Short Term Deposits,
and Monthly Term Deposits, Any other deposits as may be approved or advised by Head
office. The branches of the bank operate as independent accounting unit. The system of
transaction of the bank is essentially double entry system of book keeping. The golden
principle of debiting or crediting is the same as those of double entry system. In the bank,
instead of recording transaction in a journal initially, these are directly recorded and posted
in the ledger (computer) separating the debits and credits by slips or voucher system.
Midland Bank limited has provided its Banking service with a top leadership and
management position. After doing this intern report I have found that most of the
customers of Midland Bank Limited have positive satisfaction towards its service quality.
Thus, it is expected that the service quality of Midland Bank Limited will be increased day
by day and it will achieve more popularity among the people in future.
Keyword: MLB, Profit, Banking Service and Customer Satisfaction.
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1.1. Introduction
From very first emergence and inception of modern civilization, Bank plays a pivotal role
in case of overall financial and socioeconomic development of any modern country. The
economic development of our country mainly depend upon the efficiency of the banking
results is so far as, whether the bankers have been able to read the economic situation
properly and are successful in selecting the promising industrial sectors seeking import
and export assistance to grow. With the rapid changes of time mans are readily depend on
banking services in case of handling cash, transferring cash, and also financing in various
industrial and business projects. So it is very much needed to develop the general banking
practices in order to provide better day-to-day banking services to the valued customers.
Because a service oriented industry a bank should believe that customers is all and the
king.
Banking is a business which runs on the confidence and the trust of people that enables the
bank to mobilize funds from various sources. The profitability of a bank always depends
on the efficient management of fund and exploring the genuine avenues in which its
resources are invested to produce the maximum income. The purpose of the study is to
discover the impact of Corporate Social Responsibility (CSR) expenditure on the
profitability of Jamuna Bank Ltd (JBL) which indicates the fundamental picture of the
overall banking industry of Bangladesh. JBL is one of the non-government commercial
banks in Bangladesh, for this study purpose CSR expenditure is taken as the independent
variable and profit after tax (PAT) as the dependent variable. Required data are collected
from the annual reports of JBL and Bangladesh Bank CSR review for the year 2007 to
2012 and analyzed using Ordinary least squares (OLS) model and tested the hypothesis
through the student’s t test. The results show that there is no significant impact of CSR on
PAT and therefore recommends the bank to critically evaluate its existing policy on
performing CSR activities to increase profitability (Rahman et al., 2014).
The government of our country and the central bank i.e., the Bangladesh Bank has decided
to extend considerable help in every respect of general banking to concerned people. Like
other nationalized and non-nationalized commercial banks the Midland Bank limited
serves the nation by providing various modern banking services and products. So as an
Internee I thought of having special knowledge on this field of increased importance.
1.2. Background of the study
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Internship is a prerequisite for completing the practical side to fulfill the MBA program.
Theoretical sessions alone cannot make a business student efficient and perfect in handling
the real life business situation. Only a lot of knowledge will be little important unless it is
applicable in practical life. So we need proper application of our knowledge to get some
benefit from our theoretical knowledge to make it more fruitful. When we engage
ourselves in such fields to make proper use of our theoretical knowledge in our practical
life situation, only then we come to know about the benefit of the theoretical knowledge.
1.3. Objective of the report
The objectives of the report is to make us known the practical situation of commercial
banks of Bangladesh in overall activities and prepare me to face the complex situation of
banking in this country .The primary objective of this report is to commonly with the
requirement of MBL. However the objectives of this study are something broader.
Objectives of the study are summarized in the following manner.
General objectives:
The general objective is to Know “General banking procedure of Midland Bank Ltd”.
Specific objectives:
 To apply theoretical knowledge in the practical field.
 To develop our skill on the banking sector
 To know the customer service of banking sector.
 To observed the practice of modern technology in banking sector.
 Practical knowledge about transaction.
 To assess the strength and weakness
1. 4. Methodology of the Report
At the time of my internship period, I tried to collect both primary and secondary data.
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Some primary data are collected by taking interview and by discussion with the executives
and officer of MBL. Here primary data are collected through spending three month in the
MBL during the working hour. Here I observed the total banking process of Midland Bank.
I used journals, brochures, manuals and several books on finance and Banking to prepare
this report. It simplifies the decision-making process as it ignores cost data that is irrelevant
or will not have an impact on the specific decision being made. This study adopts an
observation of quantitative methodology with primary and secondary data in view of the
nature of the analysis. Relevant costing is often used in short-term decision making and a
number of specific practical examples are illustrated in this study. This study has been
designed to achieve the objective of assessing the level of perceptions of four areas such
as (i)making & buying, (ii) dropping or retaining a segment, (iii) constrained resources and
(iv) special orders in using relevant costing in Ready-made Garments Industry (RMG) of
Bangladesh (Rahman and Islam, 2014).
1) Primary Sources
 Direct interviews with relevant personnel.
 Experts opinion
 Official records of MBL
2) Secondary Sources
 Relevant paper and publications
 Annual reports of MBL.
 Relevant books and references.
1. 5. Limitation of the Report
The study is constrained with some limitations. Some of these limitations are given below:
The main constraint of the study is time limitations. Many of the aspects could not be
discussed in the present report.
 The employees of Midland Bank Limited remain so much busy with their own
work that it is quiet tough provide time for making the concept clear in a particular
area.
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 Every organization has their own secrecy that is not revealed to others. So I cannot
disclose much information for the sake of the confidentiality of the organization.
 I am not experienced enough to complete the study because I am a person of new

hand on such study.
 Since the non-probability sampling process has been employed in doing the
research and it has been conducted for academic purpose, so it may not represent
the overall scenario of service quality of the Bank
2.1 Organizational Overview
Midland Bank Limited (MBL) is a Banking Company registered under the Companies
Act, 1994 of Bangladesh with its Head Office currently at N.B Tower, 40/7, North Avenue,
Gulshan Dhaka-1212, and Bangladesh. The Bank started its operation from 20 March 2013
with corporate slogan”Bank for inclusive groth”.
MBL undertakes all type of banking transactions to support the development of trade and
commerce in the country. MBL’s services are also available for the entrepreneurs to set up
new ventures and BMRE for industrial units. The Bank gives special emphasis on Export,
Import, Trade Finance, SME Finance, Retail Credit and Finance to Women Entrepreneurs.
At present the Bank has real-time Online banking branches (of both Urban and Rural areas)
network throughout the country having smart IT-backbone. Besides traditional delivery
points, the bank has ATMs of its own, sharing with other partner banks and consortium
throughout the country.
The operation hour of the Bank is 10:00 A.M. To 6:00 P.M. from Sunday to Thursday with
transaction hour from 10:00 A.M. to 4:00 P.M. The Bank remains closed on Friday,
Saturday and government holidays.
To provide clientele services in respect of International Trade it has established wide

correspondent banking relationship with local and foreign banks covering major trade and
financial center at home and abroad.
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2.2 Organization Structure
The Management structure of Midland Bank Limited is given below with the chart:-
MANAGEMENT STRUCTURE OF MIDLAND BANK LIMITED:
Midland Bank Limited

Corporate Organogram
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2.3. MBL (Vision, Mission, Objectives and Strategies)
Vision
Midland bank seek to be the first choice of our customers as a distinct financial service
provider, trusted, respected and valued by all stakeholders within the region and beyond
pursuing an endless voyage towards excellence in every respect.
Mission
The Bank is committed for satisfying diverse needs of its customers through an array of
products at a competitive price by using appropriate technology and providing timely
service so that a sustainable growth, reasonable return and contribution to the development
of the country can be ensured with a motivated and professional work-force.
Objectives
MBL always strive -
 To continuously provide quality banking service with enhanced customer focus

and innovate a wide variety of need based products with widely popular solutions.
 To achieve supremacy in customer service through state-of-the-art delivery

channels and user-friendly tools and technology.
 To sharpen leadership with the standard of a learning organization well supported

by the finest team of banking expert and professionals.
 To maintain a healthy and diversified financial profile for inclusive economic

growth.
 To be a responsible social enterprise by effectively blending commercial pursuits

with social banking.
 To be the benchmark for the regulators in terms of compliance, corporate

governess and ethics.
 To build long-term shareholder value with consistent growth momentum.
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Strategies Goals
 To manage and corporate the Bank in the most efficient manner to enhance
financial performance and control cost of fund.
 To strive for General banking activities through quality control and delivery of
timely services.
 To identify customers’ credit and other banking needs and monitor their perception
towards our performance in meeting those requirements.
 To review and update policies, procedures and practices to enhance the ability to
extend better services to customers.
 To train and develop all employees and provide them adequate resources so that
customers ‘can be reasonably addressed.
 To promote organizational effectiveness by openly communicating company

plans, policies, practices and procedures to employees in a timely fashion.
 To cultivate a working environment that fosters positive motivation for improved

performance.
 To diversify portfolio both in the retail and wholesale market.
 To increase direct contact with customers in order to cultivate a closer relationship

between the bank and its customers.
Branches of Midland Bank Limited
Code Name of Branch

0001 Dilkusha Corporate
0002 Gulshan
0003 Banani (Principal)
0004 Agrabad
0005 CDA Avenue
0006 Dhanmondi
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Code Name of Branch
0007 Chowdhuryhat
0008 Sylhet
0009 Narayanganj
0010 Narsingdi
0011 Uttara
0012 Hemayetpur
0013 Kamarpara
0014 Mirzapur
0015 Valuka
0016 Zirabo
0017 Khulna
0018 Dalalbazar
0019 Mokamtola
0020 Bogra
0021 Panchar
0022 Panchrukhi
0023 Aganagar
0024 Sompara Bazar
2.4. Corporate Slogan
“Bank for inclusive growth”
2.5. Corporate Culture of MBL
Employees of MBL share certain common values, which help to create a MBL culture,
 The client comes first.
 Search for professional excellence.
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 Openness of new ideas and new methods to encourage creativity.
 Flexibility and promote response.
 A sense of professional ethics.
2.6 Values
2.7. Service & Product of MBL
The Bank has an array of tailor made financial products and services. Such, products are
Monthly Savings Schemes, Consumer Credit Scheme, Lease Finance, and Personal Loan
for Women, and Shop Finance Scheme etc. MBL also introduced Q-cash ATM cards for
its valued customers giving 24 hours banking services through Debit Cards. MBL offers
the following services to its valued customer-
(a) Deposit Schemes
(b) Remittance and Collection
(c) Import and Export handling and finance
(d) Loan syndication
(e) Project finance
(f) Investment Banking
(g) Lease Finance
(h) Hire Purchase
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(i) Personal Loan for Woman
(j) 24-hours Banking: Q-Cash ATM facility
(k) Corporate Banking
(l) Consumer Credit Scheme
(m) International Banking.
2.8. Corporate Banking
Midland Bank Ltd. offers a complete range of advisory, financing and operational services
to its corporate client groups combining trade, treasury, investment and transactional
banking activities in one package. The corporate Banking specialists will render high class
service for speedy approvals and efficient processing to satisfy customer needs.
Corporate Banking business envelops a broad range of businesses and industries. You
can leverage on the know-how in the following sectors mainly -
 Agro processing industry
 Industry (Import Substitute / Export oriented)
 Textile Spinning, Dyeing / Printing
 Export Oriented Garments, Sweater.
 Food & Allied
 Paper & Paper Products
 Engineering, Steel Mills
 Chemical and chemical products etc.
 Telecommunications.
 Information Technology
 Real Estate & Construction ·
 Wholesale trade
 Transport · Hotels, Restaurants ·
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 Non Bank Financial Institutions
 Loan Syndication ·
 Project Finance · Investment Banking
 Lease Finance · Hire Purchase · International Banking
Other highly customized services of MBL
Q-Cash Round The Clock Banking
Midland Bank Q-Cash ATM Card enables you to withdraw cash and do a variety of
banking transactions 24 hours a day. Q-Cash ATMs are conveniently located covering
major shopping centers, business and residential areas in Mirpur and Islampur. ATMs and
other cities will soon start be introduced. The network will expand to cover the whole
country within a short span of time.
With Midland Bank Q-Cash ATM card customer can:
 Cash withdrawal Round The Clock from any Q-Cash logo marked ATM
booths.
 POS transaction (shopping malls, restaurants, jewelries’ etc.).
 Enjoy overdraft facilities on the card (if approved)
 Utility Bill Payment facilities
 Cash transaction facilities for selective branches nationwide
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 In line with the issuance of Q-cash products MBL is starting to introduce VISA
card.
Online Banking
Midland Bank Limited has introduced real-time any branch banking on December 31,
2010. Now, customers can withdraw and deposit money from any of its 24 branches
located at Dhaka, Chittagong, Sylhet, Bogra, Narsingdi, Narayanganj, Khulna,Mokamtola,
The valued customers can also enjoy 24 hours banking service through ATM card from
any of Q-cash ATMs located at Dhaka, Chittagong, Khulna, Sylhet and Bogra.
All the existing customers of Midland Bank Limited will enjoy this service by default.
Key features:
 Centralized Database
 Platform Independent
 Real time any branch banking
 Internet Banking Interface
 ATM Interface
 Corporate MIS facility
Delivery Channels:
 Branch Network
 ATM Network
 POS (Point of Sales) Network
 Internet Banking Network
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1. Retail Banking
A commercial bank consists of a few departments, which perform diverse operations,

General Banking Division, Foreign Exchange and Credit Division. General Banking is
important one. General Banking is the heart of total banking system. Through this section
bank has to receive and disburse money, to develop banker customer relationship by
opening different types of account and providing promote services to the customers. This
department collects money from the depositor and uses these deposits to earn profit. Last
but not least, General Banking department is considered to be the core function of bank
which operates the day to day transactions. The foreign exchange division deals with the
inflow and outflow of foreign currencies in the bank. Again, the credit section deals with
the loan and others facilities. The department is very rush and the employee here are too
upgrade too their duty. They pass entry of every transaction within the day. It opens new
accounts, remit funds, issue bank draft and pay order, etc. Since Bank is confined to
provide these services every day, general banking is known as ‘Retail Banking’.
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2.9. SWOT Analysis
SWOT analysis of Midland Bank Limited: In the following statements the SWOT
analysis is given below:-
Strengths
 MBL is newly commercial bank in banking sector but they builds strong
reputation in short time. They provide extra ordinary service to their customer
for gaining the customer value to their product.
 Strong network throughout the country and provide quality of service to every
level of customer.
 MBL has been founded by a group of prominent entrepreneurs of the country.
 Midland Bank ltd has an interactive corporate culture. The working

environment is very friendly, interactive and informal. And there are no hidden
barriers or boundaries while communicate between the superior and the
employees. This corporate culture provides as a great motivation factor among
the employees.
 Midland Bank ltd has the reputation of being the provider of good quality
service to its, potential customers.
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Weakness
 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.
 Higher service charge in some areas of banking operation than that of

nationalized banks discourages customers from opening or maintaining
accounts with this bank.
 There is a very little practice for increasing motivation in the workers by the
management.
 Small market share.
 They have a limited branch network over the country.
 In terms of promotional sector, Midland Bank ltd has to more emphasize on

that. They have to follow aggressive marketing campaign.
 Some of the job in Midland Bank ltd has no growth or advancement path. So
lack of motivation exists in persons filling those positions. This is a weakness
of Midland Bank Ltd that it is having a group of unsatisfied employees.
Opportunities
 MBL can pursue diversification strategy in expanding its current line of

business. The management can consider options for starting merchant banking
or diversity in to leasing and insurance. By expanding business portfolio, MBL
can shrink business risk.
 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 pregnable
market.
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Threats
 Default culture is very much familiar in our country. For a bank, it is very
harmful. As MBL is new, it has not faced it seriously yet. However as the bank
grows older it might become a big problem.
 The Central Bank exercises strict control over all banking activities in local
banks like MBL. Sometimes the restriction impose barrier in the normal
operations and policies of the bank.
 Rival bank easily copy the product offering of MBL. Therefore the bank is in
continuous of product innovation to gain temporary advantage over its
Competitors.
 Finally it can be said that, top management officials have experience skill and
proficiency on Banking. MBL has got impressive decoration, for that it creates
the attention of the potential customers. Lovely environment boosts up
capability of the employees. Besides these MBL has adequate capital, high
interest rate for DPS and Savings account for its goodwill. For this reason right
people are also not in right place for reference appointment. Another
weaknesses low interest rate of FDR, for to a company in near future, such as
withdraw of tax, incentives, export, exemption and more credit facilities etc.
MBL can also adopt diversification strategy in expanding the business line into
leasing and insurance company. It analyzes the threats, which may face the
company such as international law, withdraw of most favorable nation (MFN)
and GSP facilities etc. Some contemporary, multinational and upcoming Banks
are competitors of MBL. These Bank poses threat for MBL. So MBL Should
takes necessary steps to compete with them in the current market.
Learning Part
3.1 Deposits
Types of Deposit Accounts:
The branches may accept deposits from the public in the following accounts:
a. Current Deposits
b. Savings Bank Deposits
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c. Fixed Deposits (Term Deposit)
d. Short Term Deposits
e. Monthly Term Deposits
f. Any other deposits as may be approved/ advised by Head Office.
3.2 Procedures for Opening Accounts

Opening account with a bank is the way of creating a banker customer relationship. In
other words, it is a contract between banker and customer. With this contract, bankers enter
into certain obligations and responsibilities.
Proper introduction serves as a precaution against fraud and forgeries and safeguard
against inadvertent overdraft to bank. Obtaining proper introduction may absolve the
banker from the charges of negligence for conversion. So, while opening a new account,
emphasis would be given without exception to introductory reference and inquiry. The
following instruction to be followed while opening account: -
 Introduction of Account to be obtained from a respectable client acceptable to

bank.
 The introduction shall be obtained in writing in the respective column of Account
opening form.
 For opening savings bank account of individual either singly or jointly, passports
and identity cards may be accepted for introduction, but subsequently proper
introduction may be obtained.
 Introduction of Current Account by members of the staff may be allowed but shall
be discouraged as far as possible.
 Current Account shall preferably be introduced by another Current Account holder
acceptable to bank.
 Introduction of Account holder of other branch may be accepted with caution. In
that case the introducer’s signature must be verified by authorized officer of that
branch and authenticated by a forwarding letter.
 Photographs of account holder must be attested by the introducer.
 Letter of thanks be issued to introducer in Bank’s standard specimen.
3.2.1 Deposit Account
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 A Current Deposit Account may be opened by individual, firm, company and club,
association, body corporate etc.
 Funds in the Current Deposit Account is payable on demand.
 No interest is payable on balances of Current Deposit Accounts.
 Current Deposit Account may be opened with a minimum initial balance of
Tk.5,000/-
 Minimum balance to be maintained in the account is Tk.1,000/-
 Customer willing to open Current Deposit Account shall fill up the Account
Opening Form (AOF) applicable to him/ her and Specimen Signature Card (SS
Card). The customer will sign in the space provided under “Yours faithfully” and
on the specimen signature cards.
 In case of proprietorship and partnership firms the relevant account opening form
is to be filled in and signed by the proprietor/ partner in their individual capacity
in the space provided under “Yours faithfully” and on the specimen signature card
in their official capacity.
 In all other cases including companies etc. the persons opening the account shall
fill in the relevant Account Opening Form and sign the Form in the space provided
under “Yours faithfully” and in the specimen Signature Card in their official
capacity.
 Introduction of acceptable clients to be obtained as per guidelines.
 The Manager’s approval for opening account shall be obtained by the concerned
staff member.
 Signatures of the account holder shall be admitted by affixing the stamp “Signature
admitted” and signing by the authorized officer. The introducer’s signature shall
be verified by affixing the stamp “Signature verified” near the signature by
authorized officer.
 Blank space of the Specimen Signature Card should be closed by drawing parallel
lines.
 The particulars of the Account Opening Form shall be entered in the Account
Opened and Closed Register as per sequence provided by the computer system.
 The customer shall be provided with Deposit Slip in corporating the Account
Number and be advised to make the initial deposit in the account. The amount of
initial deposit shall be entered in the Account Opening Form.
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 Cheque Book shall be issued on request on completion of all formalities including
initial deposit. Cheque series to be entered in the Account Opening Form at the
bottom right and authenticated by authorized officer.
 After posting of all particulars of the account including cheque series, one
authorized officer shall check/ verify the same in the computer screen and record
it in the form with signature.
 Manager/ Authorized Officer shall apply sufficient intelligence and common sense
to ascertain genuineness of the account holder. No account shall be opened without
approval of the Manager.
 Clear instruction regarding operation of the account shall be noted on the Account
Opening Form and Specimen Signature Card especially in respect of death of
inability of the account holders, or the person operating the account. The account
holder shall confirm the instructions under specimen signature.
 An indemnity shall be obtained from the customer if he/ she signs in language other
than English/ Bengali.
 Illiterate persons shall be discouraged to open Current Account. If opened
withdrawal shall be allowed on personal appearance of the account holder.
 The account opening form shall be sent to the respective computer terminal for
posting and S.S. Card shall be retained serially in the S.S. Card Box under custody
of Cheque Passing Officer.
 One of the photographs of the Account Holder is to be pasted with AOF and
another one with S.S. Card. AOF to be retained in serial order in Pasting File.
 A letter of thanks to be sent to the account holder as well as to the introducer.
 All new accounts opened during the day shall be personally checked by the
Manager at the close of business of each day.
 Checking officer shall particularly see the introduction, initial deposit in cash or
cheque, nature of business of the account holder, Trade License, Partnership Deed/
Memorandum of Articles of Association, Resolution etc.
 Similar Accounts should be noted in the AOF and care should be taken while
making posting of transactions in such accounts.
 The Computer Program used by bank shall provide reference of clients. Branch
Manager must ensure that their computer system provides reference of client.
 Classified Deposit Ownership Program to be maintained in the Computer System
for facilitating periodical returns to Bangladesh Bank.
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 Bank shall provide monthly statement of account to clients as per computer system
of the branch.
 If minimum balance of the account falls below Tk.2,000/- once during the half-
year, incidental charge will be recovered as per Head Office Circular.
 Bank at its discretion may close any account with prior notice to the account holder.
3.2.2 Savings Bank Deposit Account
 Savings Bank Account may be opened in the name of adult individual who
are mentally sound and also jointly in the names of two or more persons
payable to either or both or all of them or to the survivor or survivors.
 Savings Bank Account may be opened in the name of a minor also.
 Saving Bank Account may be opened in the names of clubs, societies,
association and similar institutions and even by government and semi-
government offices.
 Account shall be opened with at-least a minimum initial deposit of Tk.1,000/-
.
 Interest at the rates fixed by Head Office from time to time is applied half-
yearly on the balances held on daily product basis.
 Not more than one account is allowed to be opened in the same name. But this
will not be applicable to parents willing to open more than one account in his/
her name in respect of each minor child.
 Savings Bank Account shall not be allowed to be overdrawn under any
circumstances.
 Account opening formalities like Current Account should be followed.
 Savings Bank Account should not be allowed to be operated like Current
Account
 Not more than 25% of the balance can be withdrawn without 7 days’ notice.
Withdrawals in the account shall be allowed twice in a week.
 No interest shall be paid to such accounts in the month for violation of the
above rules.
 Bank shall provide monthly-computerized statement of accounts to account
holders instead of passbook.
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 Bank may at its discretion close any account with prior notice for repeated
return of cheques due to insufficient balance.
 Bank may recover charges up to a maximum of Tk.100/- per instances of
cheque return.
3.2.3 Short Term Deposit Account (STD)
Deposits held in this account are payable on short notice. Normally corporate bodies, bank
and financial organizations invest their funds temporarily. Now-a-days, private individuals
having sound financial means also open this type of deposit accounts. The following rules
shall apply:
 Deposits held in STD Account are payable in 7 (Seven) days’ notice.

 Cheque books may be issued to account holders for withdrawal of funds.
 Repeated withdrawal without notice shall be discouraged.
 Interest is payable on balance held on daily product basis as per computer
program used by bank.
 For opening STD Account, AOF used for Current Deposit Account shall be
used.
 Other formalities are similar to Current Deposit Accounts.
3.2.4 Fixed Deposit Account.
The following documents duly completed shall be obtained from the customer at the time
of opening different types of accounts as applicable:
a. Individual/ joint.
 Account opening form as applicable duly filled in.
 Specimen Signature Card.
 Two photographs duly attested by introducer.
 Nominee Form (if nomination given by the account holder).
 Mandate or Authority Form (if a third person is authorized to operate the
account).
b. Proprietorship Firm
 Account Opening Form.
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 Copy of Trade License
 Two photographs duly attested by introducer.
 Proprietorship Rubber Stamp against all signatures of the proprietor.
c. Partnership Concern
 Copy of Trade License
 Partnerships Deed
 Two photographs of each partner duly attested by introducer.
 Partnership Rubber Stamp against all signatures of partners operating the
accounts.
 Partnership letter.
d. Private Limited Company.

 Copy of Trade License.
 Copy of Memorandum and Articles of Association duly attested by the
Managing Director/ Chairman of the Co.
 Certificate of Incorporation.
 List of Director as per return of Joint Stock Company with signature.
 Resolution of the Board for opening account with the bank.
 Photographs of each of the authorized signatories.
e. Public Limited Company
 Copy of Trade License.
 Photograph of Directors and account operators other than Director.
 Certified copy of Memorandum and Articles of Association.
 Certificate of commencement of business.
 List of Directors as per returns of Joint Stock Company with their signature.
 Resolution of the Board for opening account with the Bank.
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 Certification of incorporation.
f. Clubs/ Association/ Society etc. (Non-Trading Concerns)

 Account opening Form for current account or SB accounts.
 Certified copy of Bye laws/ constitution of the organization.
 List of the Executives of Managing Committee with their signature and present
and permanent address.
 Resolution of the Committee for opening account with the bank.
 2 Photographs of each operator of the account.
g. Corporation/ Autonomous Bodies/ Govt. Organization

 Account Opening Form as applicable.
 Copy of the Act or Ordinance Showing authority to open account.
 Letter from the authorized persons in absence of the Board.
h. Account Of Constituted Attorney

 Account Opening Form (As applicable)
 Specimen Signature Card
 Power of Attorney
A copy of Power of Attorney shall be taken and entered in the Power of Attorney Register
in serial order. The serial number is to be noted along with Banks name on the Power of
Attorney. Original may be returned and the copy to be attached with Account Opening
Form.
3.3 Instructions for Handling Account Holders
3.3.1 Individual Account
Most of the accounts of a branch are individual. As such they deserve regular attention of
the members of the staff of a branch. An individual account holder may nominate his near
and dear ones to inherit his deposit in case of his death. He/ she can also give mandate or
authority to operate his account in his short absence.
3.3.2 Joint Accounts
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1. At the time of opening accounts in the name of two or more persons, clear and
specific instructions shall be obtained regarding operation of the account and
payment of balance to the survivor(s) or surviving members in the event of death
of one or more joint account holders.
 The instructions as far as possible shall be obtained in the handwriting of the
parties concerned, under the signatures of all the joint account holders.
 Instructions in the Either or Survivorship form may be taken in the following
manner.
 If the account is opened in the name of two persons instruction may be: Either
or Survivor or singly or jointly.
 If the account is in the names of more then two persons instructions may be:
By either or Survivor singly or by any two or more of them or by all of them.
 Incase of death of any joint account holders, if the specific instructions are
either a or b, the balance will be payable to the survivor(s).
 In the absence of specific instructions in the “Either or Survivorship” form,
balance of the joint account will be payable to the survivors and the legal
representatives of the deceased joint account holders.
 In the event of any of the Joint Account holders becoming bankrupts, all
operation in the joint account shall be stopped until fresh instructions are given
by the remaining solvent account holders jointly under their signature and the
official assignee.
 In the event of death of any joint account holders, the survivor or survivors
shall be requested to close the old account and open a new account in the name
of surviving account holders.
 No overdraft shall be allowed in a joint account unless it is operated jointly by
all the parties of the account and charge documents in respect of advance are
also signed by all of them.
 Account payee cheque in the name of one of the account holders may be
deposited in their joint name account for collection.
3.3.3 Account of Proprietorship Concern

 While opening accounts in the names of proprietorship concern care should
be exercised that the person opening account is the proprietor of the firm.
Obtaining trade license issued by Municipal Authority/ Union Parishad can be
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a proof. On specific instruction the account may be operated by persons
authorized by the proprietor.
 In case of death of proprietor, all operations in the account shall be stopped.
Procedure laid down in Para (r) may be followed. On the death of the
proprietor authority given by him ceases and the authority holder can not be
allowed to operate the account.
3.3.4 Accounts of Partnership Firm.

 A partnership account shall be allowed to be opened and operated by any one
partner of the firm under his signature provided a partnership letter has been
signed by all the partners of the firm in their individual capacity.
 Partnership Deed or Partnership Letter should be thoroughly studied to know
the names and address of all the partners. Nature of business, names of
partners authorized to operate the account including authority to draw,
endorse, accept bills, mortgage and sell property belonging to firm. It should
also be ascertained about the position of the firm on retirement of any partner,
death or insolvency of any partner.
 In case of death of partner, if the deceased partner was operating the account
singly, the balance shall be paid to the heirs of the deceased and the surviving
partners as per orders of the Court agreement or arrived at between the
surviving partners and heirs of the deceased. In the later case, the recipient
shall execute indemnity bond as explained in para ® regarding deceased
account.
 If a partnership Deed is submitted the same should be accepted and recorded
with the bank.
 In case of death of a partner who was not operating the account the surviving
partners shall be advised to close the partnership account and open a new
account.
 An operating partner may give mandate to a third person to operate the account
in place of him.
3.3.5 Accounts of Joint Stock Companies
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 A Joint Stock Company is a separate legal entity. The shareholders may die
or become insolvent. The company shall continue to exist unless the number
of share holders falls below the minimum number of members.
 The minimum number of members is two and maximum is 50 excluding
employees and ex-employees. Private Limited Company cannot invite public
to subscribe to its shares and therefore, not required to issue a prospect us.
Right to transfer share is restricted. It can commence business as soon as it
receives certificate of incorporation. It need not obtain “Certificate of
Commencement of Business”.
Accounts of Clubs/ Societies/ Associations

 No overdraft shall be allowed in the accounts of clubs. Societies and
Associations without prior approval of Head Office.
 No cheque drawn on the accounts of Clubs and Societies shall be collected for
credit to private account of the office bearers of the societies and clubs.
 In case of transfer or death of any of the office bearer of the club/ society
operating the account, all operation shall be stopped until such time that a fresh
resolution is passed in future by The Executive/ Managing Committee
determining the method of its operation and delegation of powers to the new
office bears, and advised to the Bank.
3.4 Inter Branch Transfer of Account.

In case of transfer of Savings or Current account to another branch, a letter of request
should be obtained and action be taken after verification of the signature and taking proper
approval of the Manager. The request of the account holder desiring the transfer of the
account shall be taken an application.
 When the application is received Manager of the branch will check up the
same and if found in order will approve transfer of the account. The relative
specimen signature cards and account opening form shall then be taken out
from file for transfer by the concerned department.
 The following entries shall be passed by the branch transferring the account.
 Debit : Party’s account.
 Credit : MBL General Account {Transferee branch (IBCA to be issued)}.
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 The transferring branch should not recover any charges from the account
holder for transfer of the account.
 The forwarding letter as per the following specimen shall be signed by the
Manager.
 At the time of transferring the account the branch may retain photocopy of
AOF and SS Card together the application and preserve in Account transfer
file.
 Measures to be taken by the Transferred Branch.
a. The transferred branch send a letter of acknowledgement to the transferee branch
on receipt of the papers/ documents of the account.
b. A new account number shall be allocated and IBCA is responded in the following
manner.
Debit : MBL General Account (Transferee Branch).
Credit : New Account (Under advice to the holder).
3.5 Issuance of Cheque Books

General Service Division of Head Office will supply required Cheque Books to branches
against their requisition from time to time. On receipt of these cheque books/ other security
stationery, the branch shall record the stock in the Security Stationery Stock Register.
While recording the stock, the Prefix number shall invariably be mentioned.
 A few Cheque Books required for current consumption of the Deposit
Department shall be taken out from the main stock under control of an
authorized officer. The concerned issuing officer will keep these cheque books
in a box under lock and key and issue the same to the clients during the day.
The Cheque Books will be entered in the Cheque Book Issue Register and be
issued to clients against their acknowledgement in the register.
 Separate folios will be opened in the Cheque Book issue Register for CD/ SB/
STD account cheque books.
 The requisition slip shall be sent to the respective Computer Terminal for
posting in the respective account.
 All subsequent Cheque Books shall be issued against Cheque Requisition
Slips extracted from the previous cheque books issued to the customer,
However, the requisition slip pasted with subsequent cheque book on its first
page shall be destroyed.
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If any of the defect is noticed by posting officer, he/ she shall make remark on the
requisition slip and forward it to Cancellation Officer who will decide whether cheque
book should be issued to the customer.
3.6 Stop Payment Order and their Revocation.
 Instruction for stopping payment of any cheque shall be obtained from the
account holder in writing.
 If stop payment instructions are received over telephone or Telex a provisional
note in respect thereof shall be kept with cancellation officer, pending receipt
of written instructions from the account holder. Should the cheque be
presented in the meantime, the same should be returned with objection
“drawers confirmation required”.
 The date and time on which those instructions received shall be marked on the
letter and signed by an authorized officer.
 The signature of the account holder shall be verified on the letter and
accordingly the cancellation officer/ posting officer will be asked to insert the
cheque number and stop payment in the computer terminal.
 Meanwhile if the cheque is already paid the account holder shall be informed
immediately.
 An acknowledgement Memo in Bank’s printed format may be issued to the
account holder as to the actions regarding stop payment.
 The stop payment letters received from the party shall be filed in the “stop
payment file”.
3.7 Payment of Instrument, Dishonor of Instrument
Scrutiny of cheques/ voucher

Before posting in the computer system, the cheque/ vouchers are to be checked by the
concerned officer with reference to the following:
3.7.1 Cash Cheques
 The cheque is drawn on the bank and branch where it is presented for payment.
 The cheque is an open cheque i.e. uncrossed.
 In case it is an order cheque (Payable in cash) the payee is identified to
satisfaction.
 It is not post-dated, undated or stale.
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 The words and figures tally.
 The cheque is duly signed by the drawers.
 Cuttings and alteration have been authenticated under full signature of the
drawer.
3.7.2 Cash Debit Voucher.
In case of cash debit voucher, the following points should be checked:
 It is signed by the authorized officer alongwith the Manager.

 It is signed by the payee on the reverse and payee’s signature is verified.
 It bears the Stamp “Pay Cash”.
3.7.3 Clearing Cheques

In case of clearing cheque, it is checked that: -
 Collecting Bank’s Clearing Stamp bearing correct date is affixed on the face
of the cheque and the cheque is presented in the 1st or 2nd clearing as stamped.
 The collecting bank’s discharge is correct.
 Other points similar to those as explained above are followed.
3.7.4 Transfer Delivery

The following points to be checked:-
 The Transfer Delivery Stamp is affixed on the face of the cheque and bears
correct date.
 The collecting bank’s discharge is correct.
 Other points similar to those explained above are followed.
3.7.5 Cash Transfer

It shall be checked that: -
 The Cash Transfer Stamp is affixed on the face of the cheque.

 Branch discharge is correct.
 Branch crossing seal is applied.
 Other points similar to explain above are followed.
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3.7.6 Voucher
It shall be checked that: -
 It is correctly written and dated.
 Two attorney holders sign it jointly.
 Amount in words and figures tallies.
 Appropriate head of account is given together with computer number.
3.8 Payment of FDR & Short Notice Deposits.

3.8.1 Fixed Deposit Receipts (FDR)
In computerized system of accounting the branches get daily print report of FDR maturity
together with interest payable and related deductions. The following steps shall be taken
by the branches to make payment of FDR on maturity.
 FDR duly discharged by the holder(s) on the back of it to be obtained.
 The signature(s) shall be verified by authorized officer.
3.8.2 Short Term Deposit.

Deposits under this category is withdraw able at a minimum of 7 (seven) days’ notice.
Withdrawal from the account shall be allowed on the following manner:-
 If cheque book is issued, withdrawal by cheque shall be allowed against 7
(seven) days’ notice.
 If no cheque book against the account is issued with drawl may be allowed as
per written instruction of the client either by pay order/Demand Draft or
through transfer to his /her current account with the branch.
If any account is operated like Current Account, the customer shall be advised to open a
Current Account instead of short term Account.
Minimum balance requirement as fixed by Head Office from time to time shall be in force.
3.9 Closing of Accounts
For different reasons, the account holder(s) may request for closure of his/ their account
with the bank. On receipt of such letter of request for closure of account, the Manager
should ascertain the reasons to satisfy himself that the constituent is not severing his
relations for grievance from the bank which may possibly be redressed. If for genuine
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reason the account holder(s) approach for closure of his/their account, the following steps
shall be taken:
 The application shall be received together with unused cheque leaves.
 The signature of the account holder shall be verified
 The number of unutilized cheque leaves shall be noted on the letter.
 The Manager shall approve closure of the account and ascertain liability
position (if any) and closing charges at prescribed rate to be recovered.
 The account holder may be requested to withdraw the balance on deduction
of the charges. Other wise the balance payable may be paid by way of pay Slip
/ Pay Order in favour of the account holder
 After closure of the account, "Account Closed" Stamp shall be affixed on the
account opening form, S.S. Card and in the Account Opened and Closed
Register with date under signature of an authorized officer.
3.10 Interest Application

Computerized branches need not require to calculate interest manually. The computer
system will guide officials as per program incorporated. Branches need to pass vouchers
only where needed to balance the figures. Interest rates however will be decided by Head
Office from time to time.
3.11 Balance Inquiries & Statements
3.11.1 Balance Inquiries
 The account holder may enquire about his/her balance in the account. The
client may be advised to fill and sign the Balance Requisition Slip (BRS) or
to produce the Letter of Authority (LOA) duly signed by the account holder.
 The signature of the account holder shall be verified on the BRS or LOA
before disclosing the balance.
 If a slip is required to be sent by mail or hand, it shall be sent in a closed
envelope addressed to the account holder.
3.11.2 Balance Certificate

In the event of a balance certificate required by an account holder, he/she may be provided
with such certificate as per computer print report recorded by the branch against his/her
written request. Certificate may be delivered as per instruction of the account holder.
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3.11.3 Balance Confirmation
 In a computerized system of accounts, the computer program will provide
print report of balance confirmation of Accounts along with a sub-joined part.
It will contain the full address of the account holder. The balance confirmation
shall be dispatched to account holder in a window envelope. Follow-up should
be made to get back the sub-joined part duly signed by the account holder.
 On receipt of the confirmation from the party regarding his/her balance duly
signed, it shall be preserved in a file after verification of signature.
 Balance confirmation for debit balances in case of over-draft, cash Credit
and/or loan accounts shall be dealt with separately. The sub-joined part to be
received from clients duly signed by them and preserved in their document
file after verification of signature.
Job Nature
4.1. Internship Experience
I was assigned at the Aganagar Branch, Keraniganaj, Dhaka of Midland bank to complete
my internship program. That is a great opportunity for being a part of this bank. During
my 3 month internship program I enjoyed the work at the bank but most importantly I
learned how to work under the pressure and also earn a great practical experience about
the banking sector. I spent 40 hours per week at work on internship program. I tried to
participate directly or indirectly in the daily operational activities of the branch.
4.2. Job Responsibility
The Midland bank Limited, branches are three different divisions. Those are General
Banking, Foreign Exchange and credit division. For the beginning of the internship, the
manager of the branch told me about my working area. That was customer service
department of general banking division.
Customer Service Department of GB Division
The customer service department is the head of general banking division. It was also a
very important site of our branch. That why I had lot of duties in this department I was
trying to my best effort to do my duties. My duties of this department are:
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 Meeting customer’s inquiry.
 Opening new accounts.
 Issue pay-order.
 Issuing credit card.
 Give the information to customer of our product.
 Give service to our valued client.
 Dispatch.
 Cheek book issue, etc
4.3. Learning outcome:
Working at Midland Bank Limited was a great experience for me. From there I learn many
things throughout my internship periods. I think it will help me to do work in the banking
sector in my future. Basically, it’s a program by which a student can learn and know about
the real fact and scenario of a counties economy sector. As well as I also get this idea from
this program. I can easily understand the function of a bank how it is operating and
financing their work.
When I join their branch and they are introducing me with their officers and my supervisors
show me, perception of all overall activities of general banking. That is reason I worked
in first general banking department. They are following:
 Remittance (, Pay Order, TT, DD).
 Clearing Section (Inward Clearing. & Outward Clearing).
 Customer Service (Account opening, closing, Receive/Payment Cash/Cheque,

OBC/IBC, etc).
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The Project Part
5.1 Introduction
A commercial bank consists of a few departments, which perform diverse operations,

General Banking Division, Foreign Exchange and Credit Division. General Banking is
important one. General Banking is the heart of total banking system. Through this section
bank has to receive and disburse money, to develop banker customer relationship by
opening different types of account and providing promote services to the customers. This
department collects money from the depositor and uses these deposits to earn profit. Last
but not least, General Banking department is considered to be the core function of bank
which operates the day to day transactions. The foreign exchange division deals with the
inflow and outflow of foreign currencies in the bank. Again, the credit section deals with
the loan and others facilities. The department is very rush and the employee here are too
upgrade too their duty. They pass entry of every transaction within the day. It opens new
accounts, remit funds, issue bank draft and pay order, etc. Since Bank is confined to
provide these services every day, general banking is known as ‘Retail Banking’.
Sections of General Banking
During my practical orientation in Midland Bank Limited, it came to the observation that
general banking section is divided with four areas. These are:
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5.2 Deposit Section
5.2.1 Various types of account offered by Midland Bank:-
FIXED DEPOSIT ACCOUNT (FDR)

Fixed term deposit (FDR) application form has been used both for
application form and as a credit voucher for the bank. In case of FDR
specimen signature card used and client give three signatures on the
specimen card. In the case of FDR it is clearly mention that when this
amount will be withdrew account holder receive principle amount plus
interest. FDR account holder gets a FDR slip that is provided by the MBL
officer. FDR slip contains name of account holder, deposited amount, And
interest, and time of maturity. If depositor withdrew his money before
maturity date he does not get any interest. If account holder lost FDR slip
then indemnity bond is required to issue a duplicate FDR slip. FDR account
can be open by individually or joint name, In the case of FDR holder death,
his nominee will get the amount.
Duration Interest Rate
For 1 month, less than 3 month 5%
For 3 months 8.00%
From 6 months up to 1 year 8.00%
There are several types of deposit accounts. Each account has different characteristics and
every account has some specific purpose to serve. MBL offers the following key Personal
Banking Services. According to their uniqueness they are described as follows:
 Savings bank (SB) Account
 Current deposit Account
 Short-term deposit (STD) Account
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 School banking Account
 Fixed deposit (FDR) Account
 MDB SMS Account (Monthly scheme)
 Savings Account
It is most popular account segment of individual or more than two persons can open a
savings account on MBL. The officers and authorize persons are issuing chequebook,
deposit slips and statement of account to the holder of savings. The officer justifies the
information that is submitted by the account holder for opening of the account. The officers
of the bank process account-opening formalities.
 Current Deposit Account:
MBL is one of the newly established well-reputed fourth generation private commercial
bank in Bangladesh. It operates very diverse current account operation. They serve various
types of customers, like current account for private limited company, current account for
public limited company, current account for partnership business, etc.
 Foreign Currency Account
The MBL also operate Foreign Currency Account for Bangladeshi Wage Earners or for
Foreign Nationals/Company/Firms etc. to send their valued earned foreign currency into
the country.
 Short Term Deposit Account (STD)
MBL also offers Short Term Deposit to its valued customers. Short Term Deposit is a
deposit account where the payment of interest is paid on month basis. These items include
the deposits for a period ranging from 7 (seven) days to 89 (eighty-nine) days. These types
of liabilities are payable on special notice or after a specified period other than the fixed
deposits. Some of these types of deposits are of the nature of time deposits. The rate of
interest on STD account is 4.5% per annum. There are some rules and regulations that
must be maintained by the STD account holder. If the STD account holder wants to
withdraw the money from the account they have to inform the bank before, otherwise the
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account holder may not get the interest in full amount.
 Schemes
Schemes offered by Midland Bank Limited
1. Monthly Benefit Scheme
2. Double benefit Deposit Scheme
3. Monthly Saving Scheme
4. MDB family support Scheme
Schemes are the most important sources of enhancing banks deposit. Mainly bank is the
lender of money, which is deposited by various types of depositor. These schemes are
different in nature and types and also in interest rates. These deposits give the customers
to deposit the idle money in profit earning schemes and also provide the security. Midland
Bank limited as third profit earning to the depositors and generation modern and
technology based modern commercial bank offers various types of customer’s friendly
deposit schemes to its valued customers. These schemes are highly also unique in security.
 Monthly Benefit Scheme (MBS)
Midland Bank Limited has introduced Monthly Benefit Scheme (MBS) for the prudent
persons having ready cash and desiring to have fixed income on monthly basis out of it
without taking risk of loss and without encasing the principal amount. This scheme offers
highest return with zero risk. You can plan your monthly expenditure with the certain
monthly income under the scheme.
 Double benefit deposit Scheme
For people who have cash flow at this moment and want to get it doubled/tripled quickly
MBL has introduced Double/Triple Growth Deposit Scheme that offers you to make
double/triple your money within 6(six) years and 9.5 (nine and a half) years respectively
resulting a high rate of interest.
 Monthly Savings Scheme (MSS)
Savings is the best friend in bad days. Small savings can build up a prosperous future.
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Savings can meet up any emergencies. MBL has introduced Monthly Savings Scheme
(MSS) that allows it clients to save on a monthly basis and get a handsome return upon
maturity. The concerned customer can avail loan facility up to 80% of the deposited
amount.
 MDB family support Scheme
To earn monthly basis interest MDB family support Scheme is very popular to the
customer. Customer deposit their certain amount for 02 (two) years and collect the
earning interest on monthly basis. After compete two years it will auto renewal if
customer want.
5.2.2 Detail information related to a Bank Account:
Opening an account
Account opening is the first and preliminary work for a bank. Opening of an account binds
the Customer and Banker into a contractual relationship. It is the most important and
preliminary work for a bank. Account Opening is very important task for any kind of
banking activities.
Procedure of Opening of an Account:
Bank has to maintain some common principles and procedures for open all most all deposit
accounts. Major information is essential for identification of the account holders
individually so that banker can discharge his obligations to everyone correctly and to the
extent due. Following are the formalities a customer must maintain in case of opening of
an account:
 Minimum age of 18 years
 Application in the prescribed form
 Furnishing Photographs of the applicant and attested by the introducer (2 copies)
 Introduction by an account holder
 Recording of specimen signature in the specimen signature card
 Mention nominee in the prescribed form
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 Furnishing Photograph of the nominee (1 copy).
Figure: Account opening procedure
5.3 Cash Section
Receipt and Payment of cash:-
Among the services provided by the bank, cash receipt and payment is the most vital and
physical function. Generally customer comes to bank to withdraw the money from their
account and deposit his savings in their accounts.
Cash Deposit:-
Money deposited in cash by the constituents at the cash counter of the bank excluding that
of government transaction is known as Bank Receipt (Cash). Different types of forms are
used for cash deposits for different types of accounts.
Cash Payments:-
Banks payment includes all kinds of payments excluding those of treasury section.
Extreme precautions must be taken at all levels through, which instruments like cheque,
drafts, etc, are disposed of. All the instruments received at the general banking counter
will be preliminary checked by the dealing officer who will enter the instruments in the
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respective ledger.
The Cash officer will follow the following procedures at the time of payments of
checks/other instruments over the cash counter:-
 The client will submit the instruments in the computer department first. The
computer officer and cheque passing authorized officer will verify the
instrument and posted the instruments. Then it will be send to the cash counter.
 After getting the instrument the cash officer will verify the instruments and if
necessary the cash officer can tell the clients to sign in the backside of the
instruments.
 Cash officer will record the denomination of notes and coins on the backside of
the instruments.
 The officer will enter the check in the cash payments register where the
denomination of notes and coins will also be recorded.
 The cash officer will give the amount to the clients at the cash counter and told
the clients to count it immediately and if needed any quarry.
 All checks, drafts, debit vouchers etc. must be branded with “Cash Paid” stamp
with the current date.
 After payment the cash department for the purpose of clean cash book will send
the vouchers.
 The head of the cash department is responsible for all debit vouchers being
branded with the cash Paid date stamp immediately they are paid and the
manager must supervise him/her in this matter as any laxity is extremely
dangerous.
5.4 Account Section:
This is the most confidential department of a bank. Recording all kinds of transactions of
the branch, confirming their accuracy and preparing statements are the main job of this
department. Now a day under computerized banking system, the jobs of accounts
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department become very easy. Now the computer directly prepares the clean cash
statement on party ledger vouchers. The function of the accounts department can be
divided into two parts:
a) Daily function
b) Periodical functions
Daily functions:
The routine daily tasks of the accounts departments are as follows:
 Record the daily transactions in the cash book.
 Record the daily transactions in general and subsidiary ledger.
 Prepare the daily position of the branch comprising of deposit and cash.
 Prepare the daily statement of affairs showing all the assets and liability of the
branch as per ledger and subsidiary ledger separately.
 Pay all expenditure on behalf of the branch.
Periodical Tasks:
 The routine periodical tasked performed by the department are as follows:

 Prepare the monthly salary statements for the employees.
 Publish the basic data of the branch.
 Prepare the weekly position for the branch, which is sent to the Head Office to
maintain Cash Reserve Requirement.
 Deposit so as to take necessary steps to generate and mobilize deposit.
Midland bank instead of recording transactions in a journal initially, these are directly
recorded and posted in the ledger separating debit and credit by slip and voucher system.
Records of all the transactions of every department are kept here as well with other
respective branch.
5.5 Remittance Section:
The major function of commercial Banks is fund mobilization of fund. Other than this,
banks provide supplementary services to its clients. Clients need to remit money from one
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place to another for their business or other purposes. Banks fulfill this need of customers
by means of remittance service. Money can be remitted domestically or internationally,
which known as local remittance and foreign remittance.
There are three ways of transferring fund domestically. The modes of transferring funds
are:
Demand Draft (DD)
Demand draft is a written order of one branch upon another branch of the same bank, to
pay a certain some of money to or to the order of a specified person. Drafts are not issued
payable to bearer. In practice drafts are not to be drawn between branches within the same
city. Drafts drawn by one branch of bank on another payable to order where any draft that
is an order to pay money drawn by one on a bank upon another office to the same bank for
a sum of money payable to order on demand, purports to be endorsed by or on behalf of
the payee, the bank is discharged by payment in due course. From the above provisions as
to Crossing, Endorsement, Collection and Payment in due course are the same as for
checks.
Payment Order (PO)
The PO is used for making a remittance to the local creditors. The procedures for selling
a PO are as follows:
 Deposit money by the customer along with application form.
 Give necessary entry in the Bills Payable register where Payee’ name, address,
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date, PO no: amount is mentioned.
 Prepared the instrument.
 After scrutinized and approved the instrument by authority, it is delivered to

customer.
 Signature of customer is taken on the counterpart and register customer’s

signature part.
Commission charge
Amount In Taka Rate Of Commission In Taka
Up to 10,000 15/= + 2.50
10001= to 100000 25/= + 3.50
100001= to Above 100/= + 15.00
5.6 Clearing Section:
Clearing is one of the most magical parts of modern banking. Now days, the banking
activities is boundless. Most of the banks are linked with other banks due to interbank
transactions. Clearing is the only process by which these transactions are settled.
Clearing House is a centralized and computerized system for settling indebtedness

between its member banks. Clearing House enables the member banks to offset claims
against one another for checks and orders paid into banks other than those upon which
they were drawn of the clearing house, Bangladesh Bank, Dhaka.
Types of Clearing:
There are two types clearing
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 Outward Clearing:
When a particular branch receives instructions drawn on the bank within the clearing zone
and sends those instructions for collection through the clearing arrangement is considered
in outward clearing for that particular branch. This branch is known as collecting branch.
 Inward Clearing:
When a particular branch receives instructions, which are on themselves and sent by other
member banks for collection are treated as inward clearing of that branch.
 Nikash Software:
Nikash is the software developed for entering and processing of clearing and processing
of clearing house data. Programs are written under FoxPro database program. This
operation manual describes the 1st House menu, Receipt menu, Payment menu, Return
House menu, Clearing menu, Maintenance menu and Exit menu to prepare data diskette
for clearing house. All necessary code files are included in the software.
5.7 Dispatch Section:
Those documents that are enter in the branch or exit of the branch must go through this
section.
The main objective of this section is;
 Keeping record of the documents send to other branches or bank.

 Letters are sending to their respective destination.
 Send these documents safely and correctly.
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 Receives documents come through different medium, such as postal service,
courier service, via messenger etc.
Books Maintained
 Local Dispatch Khata (including Peon Book)

 Register Dispatch Khata (For Registered letter).
 Ordinary Register Khata (For Unregistered letter).
 Inward Register Books.
 Outward Register Books.
 Attendance register Book.
 Others register Book
ACCOUNTS
ACCOUNTING SYSTEM:
The branches of the bank operate as independent accounting unit. They submit
statement of affairs and other prescribed returns direct to Head Office where these are
consolidated in the form of a statement showing assets and liabilities of whole Bank as
at the close of month at the last working day of each month.
The system of transactions of the bank is essentially double entry system of book
keeping. But for quick and accurate recording as well as for arriving at daily financial
position specialized form of double entry system book keeping, named slip system under
self-balancing method is followed by the bank. The golden principle of debiting or
crediting is the same as those of double entry system. In the bank, instead of recording
transactions in a journal initially, these are directly recorded and posted in the ledger
(computer) separating the debits and credits by slips or voucher system.
Accounts Section performs the following tasks:-
1. Collection of clearing cheque from Client and send to the main branch to present
clearing house for collection without any charge.
2. Computer entry of clearing cheque and credit posting.
3. Voucher sorting and reconciliation with supplementary summary.
4. Voucher arrangement and preparation of voucher cover.
5. Preserve daily cash book position and trial balance.
6. To prepare salary sheet and record all the stationary cost.
7. To provide solvency certificates.
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8. If the supplementary summary and voucher are not same his/her duty to find out
the discrepancies. And other works demanded by the authority.
9. They also prepared SBS Sheet for the previous month and send it to the Head office
by instant of 10.
CREDIT FINANCING BEHAVIOR OF MBL

The main focus of Midland Bank Ltd. Credit Line/Program is financing business, trade
and industrial activities through an effective delivery system. Midland Bank Ltd. offers
credit to almost all sectors of commercial activities having productive purpose. Loan is
provided to the rural people for agricultural production and other off-farm activities.
 Loan pricing system is customer friendly.
 Prime customers enjoy prime rate in lending and other services.
 Quick appreciation, appraisal, decision and disbursement are ensured.
 Credit facilities are extended as per guidelines of Bangladesh Bank (Central Bank
of Bangladesh) and operational procedures of the Bank.
 Interest is calculated on daily product basis but charged and accounted for quarterly
on accrual basis. Interest on classified loans is kept in interest suspense account as
per Bangladesh Bank guidelines and such interest is not accounted for as income
until realized from borrowers. Interests are not charged on bad / loss loans as per
instructions of Bangladesh Bank. Advances are stated at gross value.
Here there is a table of Interest rate of provision on credit:
Particulars Rate
General Provision on unclassified loan and 1%

advances
Provision on Housing Finance, Loans for 2%

professionals and Small Enterprise
Provision on other consumer financing 5%
Provision on short term Agri. Credit & Micro 5%

Credit other than Bad Loss
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Provision on Special Mention Account Loan 5%
and Advance
Provision on substandard loan and advance 20%
Provision on doubtful loans and advances 50%
Provision on bad / loss loans and advances 100%
TABLE: INTEREST RATE OF PROVISION ON CREDIT
CONSIDERATION FACTORS FOR LOAN:

When MBL bank gives loan that time they should consider some factors, such as:
1. Safety: Safety is the most important for sanctioning loan. At the time of repayment
borrower may be unable to pay the loan amount. For that reason when bank
sanctioning loan they should take collateral security from the borrowers.
2. Security: Banker should be are in the selections of security for their loan. They
should properly evaluate the value of security it should not less then or equal of
loan amount.
3. Liquidity: When banker sanctioning any loan then they should ensure the liquidity
position of MBL.
4. Adequate yield: Banker should select those investment which interest rate is
higher then savings interest rate.
5. Diversity of risk: Bank should not invest one or two sectors. If it is happen then
their investment risk is higher then market risk. In this case bank should maintain
investment portfolio. So if one investment makes loss another can cover that loss.
DIFFERENT TYPES OF LOANS AND ADVANCE:

These loans can be generally of three types-
Term Loan:
These loans are provided to the party for a specific period of time. Term loans may be
classified into groups based on their tenure.
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 Short term: Having duration up to one year
 Mid term: Having duration between one to five years.
 Long term: Having duration more than five years.
In banking arena midterm loans are the most popular to both the parties’ bank and
investors. Generally it is less profitable for banks to go for long-term loan in most cases
because in case fund in locked for a greater period of time that reduces the effective rate
of return.
Continuous loan:
These type of loan very popular among customers and is mostly taking place in daily
operation. Here the loan facility runs continuously for a specific period of time and time
and the customer can avail the facility at any time with in that period provided that he/she
does not cress the limit provided in the agreement.
Demand Loans:
 IBP (In Land Bill Purchase)
Payment made through purchase of inland bills/ cheques to meet urgent requirement of
the customer falls under this type of credit facility. This temporary advance is adjustable
from the proceeds of bills, cheques purchased for collection. If falls under the category
commercial lending.
 FBP (Foreign Bill Purchase)
Payment made to a customer through purchase of foreign currency cheques/drafts falls
under. This head this temporary advance is adjustable from the proceeds of the
cheque/draft.
 LTR (Loan against trust receipts):
Advance allowed for retirement of shipping documents and release of goods imported
through L/C falls under this head. The goods are handed over to the importer under trust
with the arrangement that sale proceeds should be deposited to liquidate the advances
within a given period.
 PAD (Payment against Documents)
Payment made by the bank against lodgment of shipping documents of goods imported
through L/C falls under this head. It is an in term advance connected with import and is
generally liquidated against payments usually made by the party for retirement of the
documents for release of imported goods from the customs authority. It falls under the
commercial lending.
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PRODUCT OF CREDIT DEPARTMENT
 Overdraft:It is an arrangement between banks an customers by which the faculty
holder can draw money above a certain limit over his credit amount in his current
account. This facility in provided for one year and is renewable. The most popular
form for bank is the SOD which is the secured over draft. It is called secured
because; this faculty is provided against some security like FDR of the client,
Shares, savings certificates etc. any individual or corporation may be a client for
SOD
 Cash Credit:Under the arrangement cash amount as loan is paid to the client so
that client can purchase raw materials and other necessary accessories to produce
finished goods. Some security is kept for backing this cash credit. Generally, here
the primary security is the product for which loan is drawn by the client, Besides
some other near cash securities like saving certificates, FDR is also kept as
collateral for this purpose. though a new account needs to be created, still here limit
is activated on current account, Cash credit may be of two types: CC
Hypothecation; 2. CC Pledge
 Staff Loan: The bank provides advances to the staff are known as staff loan. Rate
of interest is the bank rate. The loan is adjusted from the employee salary.
 Secured over draft (SOD): These form loans are given for periods and are
normally granted against the security of tangible assets such as pledge/lien of FDR.
They are called secured overdraft or callaterised overdraft.
 Project Loan: Project loan is considered as long-term investment of the bank. If
the project is helpful to improve the economy and has a side market then the bank
thinks about giving project loan. To give this kind of loan the bank observes the
willingness of the customers, his capacity and his ability to run the project. Having
obtained this kind of information the bank makes a credit report about the
customer’s loan proposal. Interest rate on loan varies from project. Ratio of
investment of customer and bank varies from customer to customer and the
customer relationship with the bank.
 Packing Credit: A packing credit facility is a pre shipment advance granted to
customer to produce or buy goods for export to a foreign country against a letter of
credit, a banker’s letter of authority or a firm contract, already in hand and lodged
with the banker. The advances must be adjustment from proceeds of the relevant
exports with in 180 days.
 Personal Credit Scheme: People can buy their necessary household appliances
like computer, TV, Fridge, Air conditioners etc. It is a special credit scheme and
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the loan is allowed against personal guarantee and deposit of specified percentage
of equity by the customers. The loan is repayable by monthly installment within a
fixed period.
Bank Guarantee:
This is commitment by the bank to beneficiary on behalf of its customers to make
payments upon failure of the clients to make payment.
Types of Guarantee
The different type of guarantee are as follows:
 Tender of bid bond guarantee
 Performance guarantee
 Advance Payment Guarantee (APG)
 Security Guarantee
Tender of Bid Bond Guarantee:
The tender guarantee assures the tendered that tender shall uphold the conditions of his
tender during the period of the offer as binding and that he/she will also sign the contract
in the event of the order being granted.
Performance Guarantee:
A performance guarantee expires on completion of the delivery or performance.
Beneficiary finds that as a guarantee, the contract will be fulfilled in every respect and
can retain the guarantee as per provision for ling time. This can be counteracted by
including a clause stating that the supplier can claim under the guarantee, by presenting
an acceptance certificate signed by the buyer.
Advance Payment Guarantee (APG)
This type of guarantee is given against work order.
Security Guarantee:
This type of guarantee is given when security is required.
DOCUMENTATION:
Loan and credit facilities must be supported by proper documentation. Documentation
should be obtained prior disbursement of any loan.
The minimum requirements for documentation of loan or other facility are as under:
 Copies of the relative office note/sanction letter indicating that the transaction has
been approved by properly authorized officers of the bank.
 A copy of sanction advice addressed to the customer and his acceptance thereof.
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 All necessary documentation required meeting the terms and conditions of the
facility in the manner in which it was approved.
Apparently there are three parts of documentation namely-
 Obtaining instruments/documents-charge documents, standard documents and
other specified documents as specified by banks lawyer.
 Execution and registration.
Documents to be executed by the parties concerned competent to do so either in official
capacity or in personal capacity as the case may be. In some cases such documents are
required to be executed in presence of witness.
DISBURSEMENT:
Loan disbursement has to be made after completion documentation and observation of
the sanctioning terms against rising of equity by sponsors and lay down. Each phase of
loan disbursement to be supervised by bank official that the project and the phase of
implementation of the project to be effectively supervised and borrowers persuaded for
completion of project in time. There are main three important factors in the loan
disbursement, such as-
 Completion of Documentation.
 Verification of Stocks.
 All-important Documentation.
Credit Monitoring, Follow-up and Supervision:
Credit monitoring implies that the checking of the pattern of use of the disbursed fund
to ensure whether it is used for the right purpose on not. It includes a reporting system
and communication arrangement between the borrower and the lending institution and
with in department, appraisal, disbursement, recoveries, fallow-up etc.
MBL Officer Check on the Following Points-
 The borrower behavior of turnover.
 The information regarding the profitability, liquidity, cash flow situation and trend
in sales in maintaining various ratios.
The review and classification of credit facilities starts at credit department of the branch
with the branch manager and finally with head office credit division.
Monitoring:
The purpose of monitoring is to achieve efficient and effective project performance by
providing feedback to project management at all levels in improving operational plan
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and in taking timely corrective action in case of shortfalls and constraints if any, in
implementation of each project as a whole monitoring thus is a part of management
information system and hence an essential activity.
Follow-up
Close follow-up begins after selection of the borrower and sanction of loan. A good
advance may turn bad in the absence of proper and timely follow-up. Quite often banker
do not bother to follow up and monitor newly sanctioned loans and advances. Whereas,
their main function should begin after sanctioning of the loan.
FINANCIAL PERFORMANCE OF MBL

The business of Banking consists of borrowing and lending. As in other businesses,
operations must be based on capital, but Banks employ comparatively little of their own
capital in relation to the total volume of their transactions. The purpose of capital and
reserve accounts is primarily to provide an ultimate cover against losses on loans and
investments. In Bangladesh, there are many types of Banks, which are formed as
commercial Banks. But above all, Midland Bank of Bangladesh Ltd. is a new kind of
private commercial Bank.
Result Summary:
Fig. in Million Taka
SL.No Particulars 2013 2014 2015 2016 2017 2018
1 Authorized 4000.00 1600.00 1600.00 1600.00 1600.00 -

Capital
2 Paid Up Capital 1225.71 1027.50 429.00 429.00 390.00 -
3 Reserve Funds 651.92 629.33 487.66 245.65 93.97 -
1651.58 1562.47 807.14 607.32 451.37 -

4 Tier I Capital
(Capital &
Shareholder’s
equity)
5 Tier Capital 221.14 139.36 109.32 67.33 32.60 -
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6 Deposit (Core 20924.02 17284.81 14454.13 10450.16 20429.50 -
& Bank)
7 Advances 16617.45 12796.63 11011.83 6722.80 3239.52 -
8 Investments 5390.03 2552.67 2037.84 1163.70 935.48 -
9 Import 22191.84 15457.66 12151.90 7923.90 3801.21 -

Business
10 Export 13990.33 11583.64 6521.80 4790.80 3068.51 -

Business
11 Total Income 3102.99 2749.90 1727.20 1397.27 846.73 -
12 Total 2278.79 2048.58 1307.26 1088.44 717.86 -

Expenditure
13 Operating 824.20 701.32 419.94 308.83 128.88 -

Profit
14 Profit Before 405.04 499.97 363.31 273.70 110.97 -

Tax
15 Profit After 89.11 253.40 199.82 155.95 61.14 -

Tax
16 Fixed Assets 174.40 137.36 106.46 97.99 66.60 -
17 Total Assets 26405.40 20157.02 16863.77 13491.52 9766.79 -

(Excluding
Contra)
18 Contingent 6409.26 6574.38 5445.68 2903.96 1772.76 -

Liabilities &
Commitments
19 No. of 35 29 23 19 15 -
Branches
20 No. of 861 631 525 447 314 -

Employees
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21 No. of 715 643 390 333 250 -
Correspondents
22 Income from 474.48 255.66 126.30 80.44 27.37 -

Investment
23 Earning per 8.04 31.94 46.58 36.35 14.25 -

Share Taka
(EPS)
24 Net Assets Per 135.14 145.68 188.14 141.57 115.74 -

Share Taka
(NAV)
Ratio Analysis
SL.NO PARTICULARS 2013 2014 2015 2016 2017 2018
PERFORMANCE RATIO %
1 Return on Assets (ROAA) 1.74 2.70 2.39 2.35 1.47 -
2 Return on Average Assets 0.38 1.37 1.32 1.34 0.81 -

(after tax)
3 return on Average Equity 5.54 21.39 28.25 29.46 14.53 -
4 Net Interest Margin (Average) 4.39 4.39 3.24 3.35 2.49 -
5 Net Interest Margin 3.88 4.06 2.93 2.87 1.93 -
6 Efficiency Ratio 37.96 38.64 38.40 39.74 42.24 -
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7 Return on Investment 8.80 10.02 6.20 6.91 2.93 4.68 -
8 Profit Margin 13.05 18.18 21.03 19.59 13.11 0.09 –
9 Return on Risk Weighted 2.69 4.35 4.03 4.68 3.57 0.02 –

Assets
10 Burden Coverage 63.59 74.43 72.57 65.66 56.95 32.28 -
11 ratio of Fees Income 10.34 11.96 11.00 9.57 8.41 6.63 –
12 Interest Yield 12.77 13.87 10.68 11.58 11.02 8.03 -
13 Marginal Cost of Fund 7.64 8.98 6.82 7.08 6.61 4.25 -
14 Burden Cost of Fund 8.13 9.67 7.22 7.63 7.04 6.89 -
15 Burden Yield on Advances 13.58 15.34 12.09 11.90 12.38 6.77 -
16 Profit on Lending 5.45 5.67 4.87 4.27 5.35 (0.13) -
17 Yield on Advances 13.15 14.81 12.72 13.04 14.77 12.85 -
18 Interest expenses to Total 77.87 78.44 79.97 81.29 82.58 78.62 -

Expenses
19 Salary Exp. To Total 47.36 43.38 43.33 48.46 50.11 52.58 -

Overhead Income
20 Salary Exp. To Fees Income 74.49 58.28 59.71 73.81 87.99 162.85 -
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21 Expense Coverage 78.96 90.27 86.52 75.50 64.68 38.36 -
22 Return on Paid up Capital 7.27 23.63 46.58 36.35 15.68 0.06 –
23 Productivity Ratio 29.68 32.74 31.37 29.19 30.06 20.48 -
24 Per Employee Deposit 24.30 28.81 27.53 23.38 21.06 12.85 -
25 Staff Per Branch 24.60 21.43 21.88 22.35 19.63 28.11 -
26 Capital to deposit (%) 8.95 9.85 6.34 6.46 7.32 12.47 -
ASSET QUALITY RATIO %
1 Non performing Loan to Total 5.06 5.03 0.46 0.04 0.02 –

Loan
2 Loan Loss Reserve to Total 4.45 2.50 1.13 1.01 1.02 -

Loan
3 Loan Loss Reserve to NPL 88.02 49.81 242.98 2404.24 5142.19 –
4 NPL Reserve to NPL 61.74 28.21 20.00 36.75 100.00 –
5 Loan to Deposit 79.42 74.03 76.18 64.33 48.98 -
CAPITAL
RATIO/REGULATORY
CAPITAL RATIO %
1 Total Risk -Based Capital 12.42 14.79 10.17 11.54 15.57 -

Ratio
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2 Tier 1 Risk- Based Capital 10.95 13.58 8.96 10.39 14.53 -
Ratio
3 Leverage Capital Ratio 10.98 9.76 15.18 15.91 14.19 -

(Capital)
4 Leverage Capital Ratio 12.45 10.63 17.23 17.67 15.22 -

(Equity)
5 Average equity to Average 6.91 6.40 4.66 4.55 5.59 -

Assets
At/ For years Ended December, 2017

SOURCES: ANNUAL REPORT ’07 OF MIDLAND BANK LIMITED
Highlights Of MBL
Amount in Taka (Except Ratio)
SL.No Particulars 2013 2014
1 Paid Up Capital 1,225,714,200 1,072,500,000
2 Total Capital 1,872,719,991 1,701,825,130
3 Capital Surplus/(deficit) 364,612,891 666,269,650
4 Total Assets (Excluding off 26,405,404,056 20,157,016,559

Balance Sheet)
5 Total Deposits 20,924,021,090 17,284,811,793
6 Total Loans and Advances 16,617,450,517 12,796,630,479
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7 Total contingent Liabilities & 6,409,260,234 6,574,379,439
Commitments
8 Advance deposit Ratio 79.42% 74.03%
9 % of Classified Loans against total 5.06% 5.03%

Loans
10 Profit after Taxation 89,110,861 253,400,897
11 Amount on Classified Loans 840,339,000 643,365,000
12 Provision Kept against Classified 518,852,491 181,466,000

Loans
13 Provisions Surplus/ deficit —– —–
14 Cost of Fund ( Deposit Cost and 12.26% 12.18%

overhead cost)
15 Interest Earning Assets 24,004,627,748 18,346,059,035
16 Non- Interest Earning Assets 2,400,776,308 1,810,957,510
17 Return of Assets (ROA) 0.34% 1.26%
18 Return of Investment (ROI) 8.80% 10.02%
19 Income from Investment 474,482,522 255,662,108
20 Earning Per Share (Taka) 7.27 23.63
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21 Net Income Per Share (Taka) 8.04 31.94
22 Price Earning Ratio (Times) 53.61 12.26
23 Net asset Value (Taka) 135.14 145.68
PROFIT:
In 2014, MBL posted an operating profit of Tk. 824.21 million as against Tk.701.32
million in 2013 with a growth of 17.52 percent over the preceding year. After having
made necessary provisions for loans and advances Tk. 419.16 million in accordance
with the instructions of Bangladesh Bank Net Income Before Tax (NIBT) stood at Tk.
405.04 million in the year under review against Tk. 499.97 million in the preceding year.
IMPORT & EXPORT HANDLING AND FINANCING:

IMPORT FINANCING:
Is the most important method of import -financing International trade take place between
sellers and buyers located in different countries. The parties to a trade transaction are not
always known to each other. Even if they are known to each other the seller may not have
full confidence in the carried worthiness of the buyer or the buyer may not like to pay
before he actually receives the goods. In letter of credit the bankers’ credit worthiness is
substituted for the credit worthiness of the importer.
The total import business handled by the Bank in 2007 was Tk.22191.84 million
compared to Tk.15457.66 million in the preceding year registering a rise of Tk.6734.18
million being 43.57 percent. A sizeable L/C’s were also opened by the Bank in the year
under review. The import items included industrial raw materials, machinery, consumer
goods, fabrics, accessories etc.
Under a bank- cards letter of credit, the issuing bank gives a written undertaking on behalf
of the buyer that the bank will honor the obligation of payment or expectance as the case
may be on presentation of stipulated documents. As the request of the importers bank
issue the letter of credit at a merging by the govt. instruction. Bail: does not generally
issue the letter of credit less then 50% margin. MBL follow the margin prescribed by the
government strictly.
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EXPORT FINANCING:
The Exporter needs finances at various stages, some at pre-shipment stage and the other
at the post shipment stage. The Bank handled export business worth Tk. 13,990.33
million in the year under report. In 2017 total export business handled by the Bank was
Tk.11583.64 million. Thus there was an increase of Tk.2409.69 million in export
business handled by the Bank, being 20.78 percent over the preceding year. The major
export item was ready made Garments.
LOANS & ADVANCES:

The Bank continued to reengineer process to raise its asset portfolio by implementing
new credit policy with diversified and well-structured asset portfolio and separation of
responsibilities and segmentation of divisions. The outstanding amount of loans and
advances as on 31st December 2017 stood at Tk. 16617.45 million with a record growth
of Tk. 3820.82 million (29.86 percent) over that of preceding year. The outstanding
amount at the same period of 31.12.2016 was Tk. 12796.63 million. In order to ensure
compliance with the regulatory requirements for avoiding risk of exposure to single
borrower, concentration on large loans, to bring in excellence in credit operation in
relation to risk management, yield, exposure, tenure, collaterals, security valuation etc.
MBL strived for further diversification of credit portfolios. Its credit Facilities were
concentrated on Trade Finance, Agriculture and related sector, project finance,
wholesale and retail trade transport sector, hospital and diagnostic centres and yndicate
financing for big projects, capacity additions to manufacturing sectors and structured for
developing infrastructure of the country. Initiatives are underway for helping small and
medium entrepreneurs in the ventures for which, in MBL developing SME credit
Products and strategies. MBL has also increased lending activities to small consumers
through Consumer Credit Scheme.
CAPITAL STRUCTURE:
Midland Bank Limited has a conviction of maintaining a strong capital base in carrying
on operation. It started it operation on March 20, 2013 with a paid-up capital of
Tk.390.00 million divided into 3.90 million ordinary shares of Tk.100 each. The
authorized capital of the Bank is Tk.1600 million divided into 16.00 million of Tk.100
each and stood at Tk. 4,000 million devided into 40 million ordinary shares of Tk.100
each. The Bank’s paid-up capital as at 20 March 2017 stood at Tk.1225.71 million Tk
429.00 was raised through initial public issue of 4.29 million ordinary shares of Tk 100
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each with a premiu- each while Tk.214.50 million was raised by issue of Bonus Shares
in the ratio of 1:4, i.e. one bonus share, on the holding of 8.58 million ordinary shares
as on 31.12.2005, for every 4 shares out of profits upto the Thus, as on 31st December
2007, the total shareholder’s equity and reserve stood at Tk.1872.72 million.
Findings, Recommendation and Conclusion

6.1 FINDINGS
While working at MBL Aganagar Branch, I have attained a newer kind of experience.
After collecting and analysis data I have got some problem of the MBL. These problems
completely from my personal viewpoint, which is given below:
 In the Midland Bank LTD they have ATM card and international credit card
facilities, but it should be enhance at Bangladesh.
 Employee is have to face it related problem at the time of their work.
 The authority should recruit more employees to serve the customers.
 Update products is available at the general banking area of the Midland Bank.
However new products competitive should be launched.
 From the clients view introducer is one of the problems to open an account. It is
general problem at all commercial banks of Bangladesh.
 They face troubles with those clients who have not any knowledge in banking
transactions and banking rules.
 As the deposit is heart of running the banking activities Midland Bank Deposit
growth not good. Because Midland Bank deposit is low competitive other than
commercial bank such as Dhaka Bank, Prime bank Mercantile Bank, HSBC
Bank, Bank Asia etc. in this region.
6.2 Recommendations:-
 Midland Bank Limited should focus on brand building and advertising.
 Some necessary steps are recommended bellow on the basis of collected data,
observation, expert staff’s opinion and my knowledge and judgments. For the
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probable solutions of the identified problems ensure better process to Midland
Bank in future
 The branch manager should ensure proper distribution of works responsibility

among personnel strictly and monitor the activities of the officer so that the
clients get efficient service.
 In the face of competitive and customer dominated scenario MBL must come up
with innovative products to meet up the demand of time. Such as study loan,
medical loan etc.
 Interpersonal relationship needs to be built among the employees and superiors.
 A philosophy of working for the customer instead of working for boss must be
introduced
 Job description should be clarified and proper training facilities should ensure to
improve the performance of bottom line management.
 The entire department should be well informed regarding their goals and
objectives. It is essential to execute company objective into individual target.
 Care should also be taken so that good borrowers are not discarded due to strict
adherence to the lending policy
 MBL Should expand its own credit Card and Automated Teller Machine (ATM)
because of present market demand of the customer and the educated customer
now wants technology based banking but customers are confused about services.
 Midland Bank should expand its branch networks.
 As the entire banking system is fully online on computerizes system customer

should be served with minimum service charge.
 It can be recommendation that if all the branch of The MBL a vivid account
manual for the account holder, it will be better for the bank.
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6.3 Conclusion
There are a number of Private Commercial Banks, Nationalized Commercial Banks and
foreign Banks operating their activities in Bangladesh. The Midland Bank Ltd. is one of
them. For the future planning and the successful operation for achieving its prime goal in
this current competitive environment this report can be helpful guideline.
From the practical point of view I can declare boldly that I really have enjoyed my
internship at Midland Bank Ltd from the first day. Moreover, internship program that is
mandatory for my MBA (Evening) program, although it is obviously helpful for my career
building.
In the last decade there has been a revolution in the communication media through the
introduction of internet and other forms of secure dial-up media. This had an immense
impact on all the sectors of the industry specially the banking sector. The number of banks
is increasing day by day because the demand of the customer for the banking service is
high .as a result there is a highly competitive situation in the banking sector and people
have many option incase of taking banking services .As a central bank of Bangladesh The
Bangladesh Bank always adopting measures for putting banking institution on right track
and also monitors the activities of these banks to prevent from doing illegal activities.
Reference
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Responsibility Initiatives. Corporate Reputation Review, 5, 71-74.
2. Bowen, H. R. (1953). Social Responsibilities of the Businessman. Harper &
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5. Carroll, Archie B. (1979). A Three-Dimensional Conceptual Model of Corporate
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We Really Need It? The Bangladesh accountant, 11, 90-100.
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concepts of corporate social responsibility. Sage Publications, London.
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Disclosures—A Theoretical Foundation. Accounting, Auditing &
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General Banking activities of Midland Bank Limited

Md. Sagedur Rahman

General Banking provides the foundation of banker-customer relationship. This is an era

Keyword: MLB, Profit, Banking Service and Customer Satisfaction.

1.2. Background of the study

1.3. Objective of the report

 To apply theoretical knowledge in the practical field.

 To develop our skill on the banking sector

 To know the customer service of banking sector.

 To observed the practice of modern technology in banking sector.

 Practical knowledge about transaction.

 To assess the strength and weakness

1. 4. Methodology of the Report

 Direct interviews with relevant personnel.

 Official records of MBL

 Relevant paper and publications

 Annual reports of MBL.

 Relevant books and references.

1. 5. Limitation of the Report

 I am not experienced enough to complete the study because I am a person of new

2.1 Organizational Overview

To provide clientele services in respect of International Trade it has established wide

MANAGEMENT STRUCTURE OF MIDLAND BANK LIMITED:

Midland Bank Limited

MBL always strive -

 To continuously provide quality banking service with enhanced customer focus

 To achieve supremacy in customer service through state-of-the-art delivery

 To sharpen leadership with the standard of a learning organization well supported

 To maintain a healthy and diversified financial profile for inclusive economic

 To be a responsible social enterprise by effectively blending commercial pursuits

 To be the benchmark for the regulators in terms of compliance, corporate

 To build long-term shareholder value with consistent growth momentum.

 To promote organizational effectiveness by openly communicating company

 To cultivate a working environment that fosters positive motivation for improved

 To diversify portfolio both in the retail and wholesale market.

 To increase direct contact with customers in order to cultivate a closer relationship

Branches of Midland Bank Limited

Code Name of Branch

2.4. Corporate Slogan

“Bank for inclusive growth”

2.5. Corporate Culture of MBL

 The client comes first.

 Search for professional excellence.

 Flexibility and promote response.

 A sense of professional ethics.

2.7. Service & Product of MBL

(a) Deposit Schemes

(b) Remittance and Collection

(c) Import and Export handling and finance

(d) Loan syndication

(e) Project finance

(f) Investment Banking

(g) Lease Finance

(h) Hire Purchase

(j) 24-hours Banking: Q-Cash ATM facility

(k) Corporate Banking

(l) Consumer Credit Scheme