Accounting information system of National

Bank Limited

Md. Romel midhra

Id# 2001081129
Batch 11th
February 2010

IBAIS UNIVERSITY,DHAKA,BANGLADESH

Internship
Accounting information system of National
Bank Limited
 SUBMITTED BY:

Md. Romel midhra

Id# 2001081129
Batch 11th
Cell No:-01674-407958
E mail: romell_2007@yahoo.com

IBAIS UNIVERSITY DHAKA, BANGLADESH

SUBMITTED TO:
Coordinator, BBA Program

Supervisor:

Dr. Md. Abdul kaium masud

Department of Business Administration
IBAIS UNIVERSITY,DHAKA,BANGLADESH
Acknowledgement

The internship program about conferred on me, help me a lot to understand

the overall situation of National Bank Limited.

I do hereby express my deepest thanks and appreciation to Dr. Md. Abdul

kaium masud my honorable supervisor, for giving me his valuable time and
sincere guidance during the study period, which has inspired me in preparing this
report.
Table of Contents

1 Introduction....................................................................................................................
1.1 Origin of Report..........................................................................................................
1.1.1 Methodology of Study.....................................................................................
1.1.2 Sources of Data...............................................................................................
1.2 Objective of the Study.................................................................................................
1.3 Rational of the Study..................................................................................................
1.4 Scope of the study.......................................................................................................
1.5 Limitations of Study...................................................................................................
2 An overview of National Bank Ltd.................................................................................

Computerized Accounting Information System

2.1 Banking System..........................................................................................................
2.1.1 Structure..........................................................................................................
2.2 Traditional Heritage of NBL.......................................................................................
2.3 Mission of NBL..........................................................................................................
2.4 VISION.......................................................................................................................
2.5 Strategy & Strengths...................................................................................................
2.6 Core Values.................................................................................................................
2.7 Core indicator.............................................................................................................
2.8 Goals and Objective....................................................................................................
2.9 Management and Organization structure.....................................................................
2.9.1 Board of Directors...........................................................................................
2.9.2 Management....................................................................................................
2.10 Division of NBL.....................................................................................................
2.11 Services Offered......................................................................................................
2.11.1 Trade and Business Financing.........................................................................
2.11.2 Import financing..............................................................................................
2.11.3 Export financing..............................................................................................
2.11.4 Supply of working capital...............................................................................
2.11.5 Advances against Work Orders & Supply Bills...............................................
2.11.6 Foreign Remittance.........................................................................................
2.11.7 Syndicated Loans............................................................................................
2.11.8 Rural Development Program:..........................................................................
2.11.9 Credit Card Program.......................................................................................
 2.11.10 Consumer Credit scheme.............................................................................
2.11.11 Western Union Financial Services International..........................................
2.11.12 E-Cash/ATM Card.......................................................................................
2.11.13 Merchant banking operations......................................................................
3 An Appraisal of National Bank Ltd.................................................................................
3.1 Financial performance.................................................................................................
3.1.1 Funding...........................................................................................................
3.1.2 Capital.............................................................................................................
3.1.3 Foreign Trade..................................................................................................
3.1.4 Investment.......................................................................................................
3.1.5 Liquidity..........................................................................................................
3.1.6 Remittance......................................................................................................
3.1.7 Operating and Net Profit.................................................................................
3.1.8 Asset...............................................................................................................
3.2 All Annual Reports.....................................................................................................
4 About General Banking of NBL.....................................................................................
4.1 Receiving/ Collecting Deposits...................................................................................
4.1.1 Current Deposits account (CD A/C)................................................................
4.1.2 Saving account................................................................................................
4.1.3 Time deposits account.....................................................................................
4.1.4 Fixed Deposits (FD)........................................................................................
4.1.5 Interest rate on FDR........................................................................................
4.1.6 Short-Term-Deposit (STD)..............................................................................
4.1.7 Special Deposit Scheme..................................................................................
4.1.8 Monthly Savings Scheme................................................................................
4.2 Issuance of Cheque Book & deposit book...................................................................
4.3 Issuance of DD, TT & PO...........................................................................................
4.3.1 Issuance of DD (Demand Draft)......................................................................
4.3.2 Issuance of TT (Telegraphic Transfer).............................................................
4.3.3 Issuance of PO (Pay Order).............................................................................
4.4 Bills.............................................................................................................................
4.4.1 LBC Cheques..................................................................................................
4.4.2 OBC Cheques..................................................................................................
4.4.3 IBC (Inward Bills Collection).........................................................................
5 Product & Services of National Bank.............................................................................
5.1 Products & Services....................................................................................................
 5.1.1 Consumer Credit Scheme................................................................................
5.1.2 Special Deposit Scheme..................................................................................
5.1.3 Monthly Savings Scheme................................................................................
5.1.4 Credit Card......................................................................................................
5.1.5 NBL ATM Service...........................................................................................
5.1.6 NBL POWER CARD......................................................................................
5.1.7 Western Union Money Transfer......................................................................
6 Comments.......................................................................................................................
7 Recommendation............................................................................................................
8 Conclusion......................................................................................................................
 1 Introduction

Managing the function of each department efficiently and a proper flexible

payment procedure is enough for a bank & financial institution success. A prudent
bank management should always try to make an appropriate balance between the
payments & receive .The payments & receive flexibility with in a short time give
the customer satisfaction, which leads the more clients in the bank. The transaction
will be automatically high and increase the commission and profit of the Bank. A
bank financial institution might be fault with inappropriate function of department
and payment procedure for the purpose of maximizing its potential return. In such
a situation, the banking financial institutions might find itself in serious financial
distress, instead of improving its financial health. Consequently, not only the
depositors but also the donor agency or general shareholders will be deprived of
getting back their money from the bank. The deterioration of loan quality also
affects the intermediaries’ efficiency of the financial institution and thus economic
growth process of the country. This is the reason for an appropriate function of
each department on the bank and payment procedures are being regulated in all
banks and financial institutions.
1.1 Origin of Report
The purpose of this report is to focus practical Experiences of my day-to-
day work as a part of my internship period on National Bank Limited, Elephant
Road, Branch. Dhaka.

1.1.1 Methodology of Study

1.1.1.1 Data Collection

The major emphasis is given on discover of idea and insight of

organization keeping this study. This is a preliminary phase and is absolutely
essential in order a proper definition of a problem. We have come across so many
hard work and effort to get the primary and secondary data. Data collection of the
study is divided into two divisions:

 Primary data collection

 Secondary data collection

1.1.1.2 Primary data collection

Primary data are that information which is collected for the specific
purpose of hand. Primary data was collected from the following sources:

 Observation
 Projection Techniques

 Depth Interviews

 Interaction with the Customers and Bank Officers

1.1.1.3 Secondary data collection

Secondary data was that information that already exists somewhere having
been collected for another propose collect of secondary data. The following are
some of the sources we have usual.

 Websites
  Different articles

 Annual Report

 Prospectus

 Others bank Document

1.1.2 Sources of Data

 Doing practical work in different desks

 Study of old files and documents

 Personal investigation.

 Bank Officers and Customers

 Collection of data from different statements and abstracts.

 Internet, Brochures, annual report etc.

1.2 Objective of the Study

The main objective of this report is to fulfill partial requirements of B.B.A
program. In order to be able to obtain the B.B.A program from “IBAIS
UNIVERSITY DHAKA,BANGLADESH. The objectives of the study are to have
some practical knowledge about the function of each department of National bank
Limited. The study objective is to evaluate the function of department and
payment procedure performance system. Thus I have tried to find out some means,
which may help to improve bank performance.

As one of the main objectives of internship is to gather experience, I have

tried to put some of the experiences that I have learnt from my internship in this
report.

The objectives of the study can be pointed out as follows:-

 To present an overview of National Bank Ltd.

  Accounting information system of National Bank.

 To apprise financial performance of National Bank Ltd.

 To examine the performance indicator of each department.

 To develop self-knowledge and skill in the professional field and

finding the way to further research in future

1.3 Rational of the Study

Bangladesh is one of the underdeveloped countries in the world. It is so,
because of several reasons. The economy of Bangladesh in more or less a mixed
economy. For this reason various measures have been taken since the post
liberation war period.

In an economy like this, banking sector can play an important role to

improve the overall socio-economic condition of the country. The banks by
playing the role of an intermediary can mobilize the excess fund of surplus sectors
to provide necessary finance, to those sectors, which are needed to promote for the
sound development of an economy.

The process of economic development of Bangladesh has been seriously

constrained by the continuing crisis of banking service with affordable price. This
paper attempts to discuss this vital issue is designed to provide theoretical and
empirical insights to this problem.

A number of studies have been made to evaluate the performance of

National Bank Ltd, in the field of function of department and payment procedure.
The reason behind doing this to manage the bank service daily efficiently and
customer can withdraw the cash easily within short time from the bank.

1.4 Scope of the study

We know from the early study that, the National Bank Ltd is a prominent
commercial bank in Bangladesh. National Bank Ltd provides various product &
services in various sector. Each of branches is providing services on department
basis .Such as Accounts, Deposit, Advance, Card, Remittance, Foreign exchange,
Clearing and CIBTA department.

To prepare the internship report I encountered some limitations. The

limitations are as follows:-

 The main barrier in collecting information is lack of secondary data.

There no specific records to identify the performance of the bank. The
records are maintained by a sector basis.
 Some Bank officers were reluctant to divulge information about their
own respective functions.

 Limitation of time was a major constraint in making a complete study,

due to time limitation. The duration was only twelve weeks. It was too
limited to cover all the banking area. Many aspects could not be
discussed in the present study.

 There were some confidential files where I did not get access.
 2 An overview of National Bank Ltd

2.1 Banking System

Financial sector in Bangladesh comprises of mainly banking sector,
insurance companies, stock market, non-bank financial institutions and micro
financing institutions. Out of these, banking sector dominates the financial system,
accounting for more than 95% of its total assets. Banks at early stages of history of
Bangladesh were nationalized and there was mismatch between assets and
liabilities.

The banking system at independence consisted of two branch offices of the

former State Bank of Pakistan and seventeen large commercial banks, two of
which were controlled by Bangladeshi interests and three by foreigners other than
West Pakistanis. There were fourteen smaller commercial banks.

Virtually all banking services were concentrated in urban areas. The newly
independent government immediately designated the Dhaka branch of the State
Bank of Pakistan as the central bank and renamed it the Bangladesh Bank. The
bank was responsible for regulating currency, controlling credit and monetary
policy, and administering exchange control and the official foreign exchange
reserves. The Bangladesh government initially nationalized the entire domestic
banking system and proceeded to reorganize and rename the various banks.
Foreign-owned banks were permitted to continue doing business in Bangladesh.
The insurance business was also nationalized and became a source of potential
investment funds. Cooperative credit systems and postal savings offices handled
service to small individual and rural accounts. The new banking system succeeded
in establishing reasonably efficient procedures for managing credit and foreign
exchange. The primary function of the credit system throughout the 1970s was to
finance trade and the public sector, which together absorbed 75 percent of total
advances.
 There was a major policy shift in early 1980s when private sectors banks
were allowed in the country. In addition to the existing 19 public sector and
foreign banks, 10 new private banks opened their business during early 1980s.
Thereafter, another 7 and 13 banks started commercial banking in the country
during mid-1990s and early 2000s respectively.

2.1.1 Structure
Currently, the banking sector comprises of 4 nationalized commercial
banks (NCBs), 5 government-owned specialized banks (SBs) dealing with
development finance in specialized sectors, 30 private commercial banks (PCBs)
and 10 foreign commercial banks (FCBs). The structure of the banking sector as of
December 2008 is shown in the following Table.

Table 1 Schedule banks in Bangladesh

Type of Bank Number of Banks Number of Branches

Nationalized commercial banks (NCBs) 4 3,608
Development financial institutions
8 1,298
(DFIs)
Private commercial banks (PCBs) 29 1,331
Foreign commercial banks (FCBs) 10 34
Source: Bangladesh Bank

The structure of the banking system has changed substantially over the last
few years. NCBs’ role has gone down. Their share in total assets went down from
54 percent in 1998 to 40 percent in 2008. On the other hand, PCBs’ share went up
from 27 percent in 1998 to 43 percent in 2008. The change reflects adoption and
implementation of new policies for the banking sector.

Arguably, Bangladesh has too many financial intermediaries in relation to

the size of its economy (2002 GDP: USD 46b): there are 30 private banks besides
four nationalized commercial banks, five government-owned specialized banks, 12
foreign banks and 28 non-bank financial institutions. The large number of private
banks is mainly because the central bank liberally issued licenses to entrepreneurs
in the 1980s and 1990s (stopped since 2002) for setting up banks; even some ‘less
credible’ entrepreneurs were able to obtain such licenses, and the banks promoted
by them eventually got into all sorts of problems. Further, due to the narrow and
skewed nature of the Bangladesh economy (development is concentrated in and
around Dhaka and Chittagong – the two main cities, while a large part of the
country is undeveloped), most banks compete in a limited geographical area and
with a relatively limited set of ‘good’ borrowers.

The sector embarked upon a Financial Sector Reform Program in the

1990s, which primarily aimed at entrusting additional powers to the central bank
by strengthening efficacy of its instruments. Interest rates were liberalized;
introducing new bills activated open market operation. Attempts were made to
improve governance in the financial sector. The pace of reform slowed down
during the second half of 1990s, but picked up speed from the early part of the
current decade.

2.2 Traditional Heritage of NBL

National Bank Limited has its prosperous past, glorious present,
prospective future and under processing projects and activities. Established as the
first private sector Bank fully owned by Bangladeshi entrepreneurs, NBL has been
flourishing as the largest private sector Bank with the passage of time after facing
many stress and strain. The member of the board of directors is creative
businessman and leading industrialist of the country. To keep pace with time and
in harmony with national and international economic activities and for rendering
all modern services, NBL, as a financial institution automated all its branches with
computer network in accordance with the competitive commercial demand of
time. Moreover, considering its forth-coming future the infrastructure of the Bank
has been rearranging. The expectation of all class businessman, entrepreneurs and
general public is much more to NBL. At present NBL have 145 branches under
our branch network. In addition, our effective and diversified approach to seize the
market opportunities is going on as continuous process to accommodate new
customers by developing and expanding rural, SME financing and offshore
banking facilities. We have opened 10 branches and 5 SME/Agri branches during
2010.
Keeping the target in mind NBL has taken preparation to open new branches by
the year 2010.

2.3 Mission of NBL

Our mission is to continue our support for expansion of activities at home
and abroad by adding new dimensions to our banking services which have been
ongoing in an unabated manner. Alongside, we are also putting highest priority in
ensuring transparency, account ability, improved clientele service, as well as our
commitment to serve the society through which we want to get closer to the people
of all strata. Winning an everlasting seat in the hearts of the people as a caring
companion in uplifting the national economic standard through continuous up
gradation and diversification of our clientele services in line with national and
international requirements is the desired goal we want to reach.

2.4 VISION
Ensuring highest standard of clientele services through best application of
latest information technology, making due contribution to the national economy
and establishing ourselves firmly at home and abroad as a front ranking bank of
the country have been our cherished vision.

2.5 Strategy & Strengths

National Bank’s is to become a leading provider of integrated financial
services for small and medium-sized enterprises (SMEs), institutional investor’s
high net-worth individuals in Bangladesh. The Bank intends to achieve this central
goal by taking the following measures:

Figure 1 SWOT analysis of NBL

Strategic Director and the Challenges of the Bank

Although the immediate outlook for the local operating environment is

expected to be turbulent, the Bank intends to continue its growth momentum
through the initiatives and strategic priorities set out in the Corporate Plan. The
Bank is well positioned to mitigate the risks posed by the potential volatility of
microeconomic conditions in the country. The Corporate Plan and the Budget is a
mid term plans, yet to being prepared annually covering a period of five years on a
rolling basis. This year the Bank prepared the plan for the period covering the year
2009-2010. The strategic direction of the Bank is critically reviewed by the
Management as well as by the Board at the time of preparing and approving the
Corporate Plan and the Budget. In keeping with the mission at statement of the
Bank, the strategic direction has been clearly identified and laid down in the
Corporate Plan. It detailed out SWOT analysis of the Corporate Banking, Personal
Banking, Treasury, Information Technology, Human Resources Management and
Bangladesh Operations of the Bank. Besides, it spells out Goals and Objectives of
these main segments along with detailed action plans with specific time frames to
achieve them. The Corporate Plan and the Budget incorporates highly ambitious
targets for the planned period. Undoubtedly, the Corporate Plan and the budget has
immensely contributed in guiding the organization to its present level. Further, it
has contributed to building up the target driven culture the organization and
leading to record superlative performance and to maintain the pre eminent position
in the banking industry.
2.6 Core Values
NBL’s Core Values consists of 6 key elements. These values bind our
people together with an emphasis that our people are essential to everything being
done in the Bank.

Figure 2 Core value NBL

Integrity

 NBL protects and safeguards all customer information.

 NBL treats everyone in an equitable and consistent manner.

 NBL creates an environment, which earns and maintains customer

trust.

Open Communication

 NBL builds customer relationships based on integrity and respect.

 NBL offers a full line of products and excellent service.

  NBL is committed to the prosperity of the customers and
shareholders.

Performance Driven

 In NBL, customers and employees and judged in terms of their

performance.

Continuous Self Improvement

 Continuous learning, self-challenge and strive make ways for self

improvement of workforce at NBL.

Quality

 NBL offers hassle free better service timely.

 NBL builds-up quality assets in portfolio.

Teamwork

 Interaction, open communication and maintain a positive attitude

reflect NBL’s commitment to a supportive environment based on
teamwork.

2.7 Core indicator

2.8 Goals and Objective
NBL is always ready to maintain the highest quality of services by
upgrading banking technology prudence in manager by applying high standard of
business ethics through its establish commitment and heritage. Objective of a
private institution like NBL. Is to maximize profit through optimum utilization of
resources by providing best customers services. Other objectives are as follows:

 NBL is committed to ensure its contribution to National Bank by

increasing its profitability through professional and disciplined growth
strategy for its customer and by creating corporate banking area.
 The objective of NBL is not only to earn profit but also to keep the
social commitment and to ensure its co-operation to the person of all
level of the businessman, industrialist specially who are established
 large scale industry by consortium and the agro-based export oriented
medium and small scale industries by self inspiration.

 NBL as the first and largest private bank in committed to continue its
vendor by rapidly increasing the investment of honorable shareholders
into assets.

 NBL believes in build up strong based capitalization of the country.

 NBL is committed to continue its activities in the new horizon of

business with a view to developing service oriented industry and culture
of morality and its maintenance in banking.

 NBL has been working from its very beginning to ensure the best use of
its creativity, well-disciplined, well management and perfect growth.

 NBL is plying a vital role in Socio-economic development of

Bangladesh by way of linkage with rest of developing world wide
network in domestic and international operations.

2.9 Management and Organization structure

2.9.1 Board of Directors

The share holders as investors are in the position of proprietors, but the
actual Direction of National Bank Ltd is in the hand of their elected representative.

The board of is comprised of 21 members. Among them, it is elected

directly by the share holders by the period of two years. The Managing Director of
the Bank is also the member of the Board of Directors by the virtue of his office.
The Board of Directors is headed by and elected Chairman.

The Board of Director is a bridge between shareholders and the executive

body. Its activities concerned with policy formatting, strategic planning, board
control over executive function etc.
 There are three committees of the Board of Director. Finance committees
of the Board of Directors. Finance committee look after various credit proposals
submitted for approve and look after matter related financial issue. There is an
administrative committee, acts for supervision and review of overall executive
function of the bank. This committee also looks promotion to senior executive as
well as appointment of the Managing Director and deputy Managing Directors.
There is also a technical committee which function are analyzing and approving
various technical aspects of the Bank emphasizing for particular sector for
business branch expansion organization subtraction computerization etc. The
meeting of the board is held at least one in every three months. The quorum of the
meeting is one third of the total number of Directors. There is a board secretariat
and share division for smoothing the activities of board of directors. There is a
secretariat (Now in a status of senior Vice President) that generally initiates
meeting of the board organization committee and keep the records and informs the
decision of the board organization committee.

Table 2 Board of Directors-2010

Moazzam Hossain Chairman

Mr. Zainul Haque Sikder Director
Parveen Haque Sikder Director
M G Murtaza Director
Prof Mahabub Ahamed Director
Zakaria Taher Director
AM Nurul Islam Director
A B Tajul Islam Director
Lt.Col.(Rtd)Md. Azizul Ashraf Psc Director
AKM Enamul Haque Director
Capt. Abu Sayeed Monir Director
Salim Rahaman Director
S M Shameem Iqbal Director
Abdur Rahaman Sarker Managing Director

Table 3 Executive Committee-2010

Prof Mahabub Ahamed Chairman
Mr. Zainul Haque Sikder Member
Parveen Haque Sikder Member
Zakaria Taher Member
A B Tazul Islam Member
Lt.Col.(Rtd)Md. Azizul Ashraf Psc Member
AKM Enamul Haque Member
Capt. Abu Sayeed Monir Member
S M Shameem Iqbal Member
Managing Director Ex. Officio Member

Table 4 Audit Committee

M G Mortaza Chairman
A M Nurul Islam Member
Salim Rahaman Member

Table 5 Management Committee

Mr. Md. Abdur Rahman Sarker Chairman Managing Director

Mr. Mohsin-Ul-Karim Member Deputy Managing Director
Mr. Azizur Rahman Member Deputy Managing Director
Mr. Masqur Ahmed Member Deputy Managing Director
Mr. Syed Mohammad Bariqullah Member Senior Executive Vice President
Mr. Shamsul Huda Khan Member Senior Executive Vice President
Mr. A K M Shafiqur Rahman Member Senior Executive Vice President
Mr. Syed Muazzam Hussein Member Executive Vice President
Mr. Nazib Uddin Bhuiyan Member Executive Vice President
Mr. Md. Mahbub Hussain Member Executive Vice President
Mr. Md. Jahangir Alam Chowdhury Member Executive Vice President
Mr. A R M Quamrul Hasan Member Senior Vice President
Mr. Mohammad Hossain Member Senior Vice President
Mr. Md. Azim Uddin Member Senior Vice President
Mr. Sk Abdul Majid Member Senior Vice President
Mr. Md. Nazrul Islam Member Vice President
Mr. Kazi Kamal Uddin Ahmed Member Vice President
Mr. Muhammad Shamim Reza Member Vice President

The sponsor directors paid 50% of the paid up capital while Bangladesh
Government and members of general public paid 5% and 45% of the paid up
capital respectively.
 The board establishes the objective and policies of the bank. The boars has
the authority to declare dividend, to approve organization amend balance sheet etc.
The position of the chairman of the board carries with it a great deal of dignity and
respects in banking circles. The chairman
In Charge/ is responsible for keeping the board in
manager (SVP)
formed on the progress of the bank2 and in turn implements the policy established.
nd
Officer (AVP)

Clearing2.9.2 Management
Cash In Charge Acc Opening Foreign Loan & Deposit in Acct Section
(PO) Remittance
Asst. Officer (JO) Exchange Advance Charge (POPO) (SO)
The managing director (MD)
Foreign of the NBL is the Chief Executive of the
Payment (Asst Exchange Remittance Loan &
Deposit (JO)
O) bank. His duty is numerous. He is responsible
(PO) for administrating
Advance (PO) the business
Asst Officer
Foreign
affaires of the bank. He is also concerned
Receive (Asst Exchange withRemittance
planning and
Loanits
& implementation.
Deposit (SO)
O) (PO) Advance (PO)
The managing director also represents
Officer the bank to the meeting & response to the

various inquiry of the board of directors. The managing director maybe appointed
Receive (JO)

on contractual basis for certain period or maybe promoted from among the deputy
Payment (JO)
managing director for certain period. Under the leadership of the managing
director, there are three (03) managing Deputy Managing Director (DMDs) sixteen
(16) divisions are found in NBL, each division is lead by either an executive Vice
President (EVP) or Senior Vice President (SVP) or Vice President (VP).

Figure 3 Organgram of NBL, Elephant Road Branch

 Figure 4 Hierarchy of NBL

CHAIRMAN
MD
AMD
DMD
SEVP
EVP
SVP
VP
Senior Assistant VP
Assistant VP
SPO
Principal Officer
Senior Officer
Officer
Provisional Officer

2.10 Division of NBL

 Audit & Inspection Division.

 ATM Card Division

 Board Secretariat

 Budget & Monitoring Division.

 Credit Division-1.

 Credit Division.-2.

 Credit Card Division.

  Classified Loan Recovery Division.

 Financial Administration Division.

 General Banking Division.

 Human Resources Division.

 International Division.

 Information System & Technology Division.

 Law & Recovery Division.

 Marketing Division.

 Merchant Banking Division.

 Public Relations Division.

 Protocol Division.

 Reconciliation Division.

 System & Operations Division.

2.11 Services Offered

NBL is well known in the market for offering a whole package of financial
services that is a mixture of both conventional and innovative products. For
example the bank was the pioneer bank to allow back-to back L/C facility without
any margin to the entrepreneurs of garment industry during the eighties, thereby
helping the industry thrive to its present position.

NBL is the first bank to introduce international Master Card in Bangladesh,

which has facilitated the users to get benefit of different facilities both home and
abroad. NBL is the first among private sector banks, which has set up an
uncommon precedence of extending fully supervised collateral free agricultural
credit in the Barind area of Rajshahi district to help small farmers to grow.

NBL’s financial services and product offerings can be broadly categorized

in the following manner.

2.11.1 Trade and Business Financing

Its principal areas of financing are trade & business, export-import, setting
up mills & factories, garment, knitwear, supply of working capital, shrimp culture,
real estate, rural development program, etc.

It finances trade through the following ways:

 Loan and advance

 Cash credit (Loan)

 Cash credit (Hyphothecation)

 Overdraft

 Secured Overdraft (SOD)

2.11.2 Import financing

 Letter of Credit

 Payments against Documents (PAD)

 Loan against Imported Merchandise (LIM)

 Loan against Trust Receipt (LTR)

2.11.3 Export financing

2.11.3.1 Pre-shipment finance

 Packing Credit
 Advance under ‘Red Clause Letter of Credit’
 Back-to-Back Credit
  Export cash credit

2.11.3.2 Post shipment finance

 Negotiation of documents under L/Cs

 Purchase of foreign bill under D.P and D.A Bills
 Advance against foreign bills under collection
 Discounting / Refinancing of Acceptances and L/C

2.11.4 Supply of working capital

This is basically the funding provided for financing of a particular working

capital need, which can either be short-term loan or overdrafts. Some common
forms of working capital finance are financing of inventory or raw material
purchase, receivable financing for both export and domestic etc.

2.11.5 Advances against Work Orders & Supply Bills

Credit facilities are also allowed to contracting firms to support proper

execution of work/supply, orders relating to overall development including
infrastructure of the country received by them from the government and different
important organization.

2.11.6 Foreign Remittance

Since the very beginning, the Bank exerted much emphasis on overseas
operation and handled a sizeable quantum of homebound foreign remittance. The
Bank established extensive drawing arrangement network with Banks and
Exchange Companies located in important countries of the world. Expatriates
Bangladeshi wage earners residing in those countries can now easily remit their
hard-earned money to the country with confidence, safety and speed.

2.11.7 Syndicated Loans

This is where the bank with other banks provides provide credit on
common terms on document
 2.11.8 Rural Development Program:
Under its rural program, NBL, with joint collaboration of the Barendra
Bahumukhi Unnayan Katripakkha, has been providing improved technology,
irrigation facility, agricultural equipments, Potato growers etc. through
disbursement of small credit to the farmers of four districts (Rajshahi
chapainawabganj,Naogoan, Thakurgaon through (BMDA) which change in socio
economic condition of the farmers as well as ecological improvement of those
area. The bank financed an amount of Tk 154.4 million to 41821 borrowers in
has been disbursed among farmers under this program up to 31 December 2007.
NBL disbursed TK.325.3million in 2008 to 61862 borrowers indicating an
increasing 111percent over the period demonstrating banks firm commitment to
support this sector. Among small and medium entrepreneurs respectively under the
Agro based Industries and extension of agricultural technology and Loan Portfolio
Guarantee Scheme (LPGS) for setting up of small and medium scale industries in
rural areas with financial assistance of the USAID.

2.11.9 Credit Card Program

Master Card and Visa Card are two most popular and globally used brands
of credit card. NBL has set a n enviable precedence by being the first among
domestic banks and financial institutions to issue internationally usable master
card from 1997.

All necessary goods and services can be purchased from our selected out
lets by using master card or visa card issued from any part of the world. As a result
of this, a new avenue for earning foreign exchange has been created in the country.

Meanwhile, NBL has completed all formalities for issuance of Visa Card.

2.11.10 Consumer Credit scheme

2.11.10.1 Monthly deposit scheme

The product was introduced to give more profit to small depositors. Under
this scheme an account holder deposits TK 500 or TK 1000 monthly for a period
of 5 to 10 years. And on 5 years maturity an account holder who deposited TK 500
gets TK 39,182 in single installment and in case of an account holder who

As the interest rate is very attractive and monthly installments are easy to
pay this scheme is getting popularity to the people. Till December 31, 2008 .

The deposit base of the bank registered a growth of 25.51 percent in the
reporting year over the last year and stood at Tk 60,195.20 million.

2.11.10.2 Special Deposit Scheme

Investing money in this scheme is very profitable. The scheme has since
been updated. A depositor can now open account under this scheme for 5 years
with TK .50, 000/- up to TK.5.00 million in individual case in multiple of TK
50,000. The depositor will get interest at the rate of 12 percent annum which is
payable on monthly basis.

2.11.11 Western Union Financial Services International

NBL opened up the way to introduce western union Financial Services
International in Bangladesh through agency agreement in 1993.
Providing facilities for remitting foreign currency to the country is an important
job of NBL. Western Union is a very popular name in the global banking for
facilitating fast electronic fund transfer. For availing best possible service to its
clients NBL has signed up the western union. This institution has an experience of
150 years and sending remittance fast and with efficiency using modern
technology from 160 countries and presently have agent over 3,20,000 . NBL is
working as the lone representative of this institution in Bangladesh. As NBL
branches are directly connected with the central processing computer of western
union, it takes a few minutes for anyone in the country to get money from abroad.

2.11.12 E-Cash/ATM Card

NBL has introduced E- Cash and ATM card to improve client service. In
the first phase ATM machine have been installed I 324 points in Dhaka city
through integrated network. ATM will not only provide drawing facility but also
give opportunity to the clients to pay utility bills etc. use of ATM has made the
lifestyle of our clients much more easier and comfortable. The notable
characteristics of ATM are:

 Payments facility for 24 hours a day

 Arrangement for payment of bills

 Instant inquiry

 Multiple location facility at Dhaka, Chittagong and Sylhet

 Facility for payment for installments under the monthly saving scheme,
etc

2.11.13 Merchant banking operations

NBL has been participating in capital market since long to generate more
income. Besides investment in secondary market, Bank invested Tk.13.05 crore in
primary portfolio during 2009. It helped the capital market remain vibrant. The
purchase price of total quoted shares held by the bank on 31.12.2010 was Tk.
99.23 crore, market price of which was Tk. 229.55 crore on that day.

The bank earned Tk. 42.30 crore from share trading and received Tk. 4.21
crore as cash dividend during the year 2010. The bank also earned Tk. 25.07 lac
from its market intermediary activities i.e. Banker to the issue, Underwriter, etc.

NBL purchased a membership of the Dhaka Stock Exchange Limited

(member No. 203) and got registration as NBL Capital Services and became a
corporate member of DSE.

In Bangladesh context the works that come under purview of the merchant
banking are

 Issue management
 Issue banker
  Portfolio management

 Underwriting

 Mutual fund

The merchant banking division will continue its endeavor for a greater role
in expanding various services like issue of mutual fund in private sector,
expansion of micro credit, introduction of discretionary and non-discretionary
custodian service, launching of division accounts of loss and profit, certificate
deposit scheme, factoring credit syndication, project syndication, pre-investment
study, corporate counseling and other different areas.
 3 An Appraisal of National Bank Ltd

3.1 Financial performance

3.1.1 Funding

3.2 All Annual Reports

Capital Management of the Bank is to maintain an adequate capital base to support the
projected business and regulatory requirement. NBL always maintains a prudent balance
between Tier-I and Tier-2 capital. Total capital as on December 31, 2010 was Tk. 19,190.79
million and capital adequacy ratio was 12.29 %. Maintenance of adequate capital enhanced
the Bank's single borrower's exposure limit up to a high level to cope with the corporate
customers demand.

The deposit base of the bank registered a growth of 33.37 percent in the reporting year over
the last year and stood at Tk.102,471.83 million. Expansion of branch network, competitive
interest rate and deposit products contributed to the growth. The customers of the bank
were individuals, corporations, financial institutions, government and autonomous bodies
etc.

In harmony with earlier years' trend, National Bank Limited was intensely active in
international trade during the year 2010. The Bank put forth every possible attempt to
expand its external business by establishing LC, undertaking export bill negotiations,
realization of export proceeds, foreign remittance etc.

The Bank opened a total 24,775 LCs amounting to USD 1,390.03 million for facilitating import
trade in 2010. The main commodities were capital machinery, raw cotton, scrap vessels, rice,
wheat, edible oil, petroleum products, yarn, fabrics, garment accessories and other
consumer items.

The Bank has been nurturing the export business enthusiastically since its inception. In 2010
it handled 22,135 export documents valuing USD 691.79 million with a growth of 24 percent
over the last year's volume of USD 559.78 million. Export finances were extended mainly to
readymade garments, knitwear, frozen food and fish, tanned leather, handicraft, tea,jute
goods etc.
Efficient Board and management, strong capital base, wide branch network, support from
other stakeholders helped NBL in revenue earnings and profit maximization. During the
period NBL earned an operating profit of Tk. 8,940.60 million in 2010 which was Tk 3,397.50
million in 2009 registering a growth of 163.15 percent. Net Profit after tax grew by 231.34
percent to Tk. 6,860.34 million in 2010 after making provision for loan loss and taxation.

National Bank Limited formulated befitting credit risk management criteria and strategies for
creation of balanced lending mix in it's portfolio both for short and long term with the
bottom line objective to ensure risk adjusted rate of return in it's credit transactions. Loan
and advances in the year 2010 registered an increase by 41.26% to BDT 92,003.56 million
from BDT 65,129.29 million in 2009. During the year 2010, the credit expansion mainly was
in bilateral project finance, syndicate finance, export, import and trade finance as well as
SME and Agri finance. The bank as a matter of policy prioritizes to make lending in the thrust
sectors of the economy so as to make distinctive value addition in overall economic uplift of
the country.
National Bank Limited exerted highest emphasis on overseas operation and handling a
sizeable quantum of homebound foreign remittance since beginning. By this time, it has
earned a reputation as the leader in providing such remittances not only among the
customers but also among the regulators. In 1985 the Bank established exchange house with
equity ownership and management in Oman. Subsequently many arrangements have been
made with different exchange houses and also by establishing subsidiaries abroad for
expanding the Bank's overseas network in places with high concentration of Bangladeshi
expatriates.

National Bank Limited in 1993 introduced Western Union Money Transfer, a global leader in
money transfer services in Bangladesh remained lone agent till 2002. It was a breakthrough
in getting prompt payment of foreign remittances by the beneficiaries which encouraged
remitters to use legal channel. As a contributor of national economy, NBL is relentlessly
working to ease the flow of inward foreign remittance. The bank introduced different
products and technology including Online Banking, EFT and other automated devices for
uninterrupted speedy payments. Furthermore, NBL entered into a deal with ASA, a leading
NGO having 3,000 outlets throughout the country and also with Social Islamic Bank Limited
(SIBL) to provide inward remittance products on behalf of NBL. In 2010, foreign remittance
brought through NBL was USD 708.67 million with an increase of USD 62.70 million over the
previous year showing a growth of 9.70%.
 4 About General Banking of NBL
General Banking is most important part of banking services. Every bank
should have to provide that services. General Banking helps to do other activities
of the Bank smoothly. General Banking Division consists of the following fields
of activities:

 Receiving payment

 Payment to the clients

 Collecting deposits

 Account Opening

 Issuance OF

 Cheque Book & deposit book

 Demand Draft

 Telephone Transfer

 Payment Order

 Pay Slip

 Bills

 Out ward

 Inward

4.1 Receiving/ Collecting Deposits

Our Branch is collecting two types of deposits, such as:

 Demand deposits

 Time Deposits.

Demand deposits:

These sorts of Deposits are payable without any notification. Our branch is
collecting the above deposits through the following way:
By opening of:

 Current account

 Saving account

4.1.1 Current Deposits account (CD A/C)

Current Deposits (CD A/C) is a running A/C where a customer can draw
money frequently/continuously. Funds of CD A/C shall be payable on demand.
Bank does not allow any interests on CD A/C. CD A/c is generally opened by
Business men, Public Institutions, Corporate Bodies & other organizations who
want to operate his A/c numerously & frequently.

National Bank Limited provides the following types of current account:

 Current account for individual (There must be a nominee)

 Joint current account (There must be a nominee)

 Proprietorship current account: It may be CD A/c (Current

Proprietor A/C)

To open a Proprietorship A/C:

 Proprietor of the firm must fill up the Current Proprietorship A/c

opening form

 An Introducer acceptable to Bank must introduce the A/c.

 Photographs of the Proprietor

 The specific Rubber-stamp of the Proprietorship firm

 Valid Trade License

For opening Partnership current A/C the Conditions are:

 It may be CD A/C

 It must be opened by the name of the Partnership Firm

 Partnership Deed must be submitted with the A/C opening form

 Specific Rubber Stamp of the Firm

  Photographs of the A/C operative persons

Limited Company current account: To open an A/C in the name of a

Company the following documents and papers must be submitted with the
A/C opening form:

 Memorandum & Articles of Association of the Company

 Certificate of Incorporation

 Resolution of the Board to open A/c with the Bank

 List of Directors with Signatures

 Photographs of the operative persons

Public Limited Company Current A/C:

To open an A/c in the name of a Public Limited Company, the following

documents and papers must be submitted along with the A/C opening form:

 Memorandum & Articles of Association of the Company

 Certificate of Incorporation

 Resolution of the Board to open A/c with the Bank

 List of Directors with Signatures

 Photographs of the operative persons

 Certificate of Commencement of Business.

4.1.2 Saving account

Saving Deposits (SB A/c) is a running A/c where a customer can not draw
money as frequently/continuously as like CD A/C. Account holder can write
maximum 4 cheque in a month. Funds of SB A/c shall be payable on demand.
Bank gives interests 6% on the amount above ten thousand for a period of one
month and above. SB A/C opened only by individual.

To open a saving account you have to do:

 1. You have to fill up an authorized form provided by the National
Bank ltd.

2. You have to fill up a KYC form.

3. You must have an introducer. The introducer can be SB A/C holder

or CD A/C holder on National Bank Ltd.

4. You have to bring two-passport size photograph of A/C holder and

one photograph of Nominee.

5. You have to bring inhabitant (Nagirantta) certificate from your ward

commissioner or chairman.

4.1.3 Time deposits account

Time deposits are payable at a fixed date or after notification. Our Branch
open/receives the following types of Time deposits:-

 Fixed deposits receipt (FDR),

 Short-term deposit (STD),

 MSS (Monthly Saving Scheme),

 SDS (Special Deposit Scheme)

 NMS (National bank monthly saving deposit)

 NDS (National deposit scheme)

4.1.4 Fixed Deposits (FD)

Fixed Deposits (FDR A/c) shall be opened for a longer period such as 3
(three) months to 3 (three) years or more. Generally who wants to invest his
money safely can open FDR A/c. The interest of FDR A/c is negotiable & it
depends on the volume of deposit and period. At present, our branch is allowing
interest from 8.75% to 11.50% in FD A/c. It may be noted that no introduction is
necessary to open FD A/c & the FDR is not negotiable instrument & cannot be
transferred by endorsement. Some special cases FDR can be open for one month
on the interest rate 7%.
 4.1.5 Interest rate on FDR
The interest rate of the deposited amount depends on duration and volume
of the amount. If duration is long the interest rate is high, and at the same time if
the volume of amount is large the interest rate is also high and vice-versa. Some
times the interest rate also depends Subject to prior permission from Head office
and relation on manager.

Table 6 Interest rate on FER

Category of Deposit Existing rate of interest Revised rate of interest

effective as per circular 1st August 2009
no.2711date 20.05.2009
Savings 5.00% 5.00%

Short term deposit

For financial 2.00%
institution and non
bank financial
institution
For institutional 5.50%
deposit other than
financial institute
and non banking
financial institute
other 4.00%
FDR for 1 months 5.50% 5.50%
and above but less
than 6months
FDR for 3 months & Below 25.00lac 8.75% Below 25.00 lac 7.75%
above but less than 6 25.00 lac & above 9.00% 25.00 lac & above 8.00%
month 1.00 Crore & above 9.50% 1.00 crore & above 8.25%
FDR for 6 months & Below 25.00 lac 8.75% Below 25.00 lac 8.00%
above but less than 1 25.00 lac & above 9.00% 25.00 lac & above 8.25%
(one) years 3.00 Crore & above 9.50% 3.00 crore & above 8.50%
FDR for 1 year & Below 25.00 lac 8.75% Below 25.00 lac 8.00%
above 25.00 lac & above 9.00% 25.00 lac & above 8.25%
3.00 crore & above 8.50% 3.00 crore & above 8.50%
 4.1.6 Short-Term-Deposit (STD)
National Bank Limited offers interest on customer's short term savings and
gives facility to withdraw money any time.

Benefits (Condition Apply)

 Minimum balance Tk. 2000.

 Minimum maintenance charge yearly Tk. 800.

 Standing Instruction Arrangement are available for operating account.

Account Opening

 2 copies of recent photograph of account holder.

 Nominee's Photograph.

 Valid photocopy of Voter ID Card.

4.1.7 Special Deposit Scheme

For most of the people on fixed income the opportunity to supplement their
monthly earning is a golden one. And NBL Special Deposit Scheme gives a
customer just that.

Under this scheme, customers can deposit money for a term of 5 years. The
deposited money is fully refundable at the expiry of the term. At the same time,
during the term period they can enjoy a monthly profit corresponding to their
deposited amount. As for instance, under this scheme a deposit of Tk, 55,000/-
gives a monthly income of Tk.500/-.

Table 7 Benefits of Special Deposit Scheme

Deposited Amount Monthly Benefit

Tk. 50,000/- Tk. 400/-
Tk. 1,00,000/- Tk. 800/-
Tk. 2,00,000/- Tk. 1,500/-
Tk. 3,00,000/- Tk. 2,000/-
 4.1.8 Monthly Savings Scheme
This scheme is specially designed for the benefit of the limited income
group members. This helps to accrue small monthly savings into a significant sum
at the end of the term. So, after the expiry of the term period the depositor will
have a sizeable amount to relish on.

A monthly deposit of Tk.500/- or Tk.1000/- for 5 or 10 years period earns

in the end Tk.40, 100/- or Tk.2, 24,500/- respectively.

4.1.8.1 NMS (National Bank monthly saving scheme):

This scheme is also designed for the benefit of the limited income group
members. This helps to accrue small monthly savings into a significant sum at the
end of the term. It is now alternative of MSS, it deposit interest is lower than the
MSS. After the expiry of the term period the depositor will have a sizeable amount
to relish on.

The deposit amount and sizeable amount are given below:-

Monthly Installment Return after 3 years Return after 5 years Return after 8 years
TK. 500/- TK 20,627 TK 37,896 TK 70,849
TK. 1,000/- TK.41,255 TK. 95,791 TK 1,41,697
TK 2,000 TK 82,510 TK 1,51,583 TK 2,83,394
TK 3,000 TK 1,23,765 TK 2,27,374 TK 4,25,091
TK 4,000 TK 1,65,020 TK 3,03,166 TK 5,66,788
TK 5,000 TK 2,06,274 TK 3,78,957 TK 7,08,485
TK 10,000 TK 4,12,549 TK 7,57,914 TK 1,41,6970

4.1.8.2 NDS (National deposit scheme)

A type of time deposit scheme, Like as FDR. This deposit scheme is for
some special customers. It term is fixed for three (3) years and interest also fixed
at 12%.

4.2 Issuance of Cheque Book & deposit book

To withdraw money from the bank you need a chequebook. The bank
issues three different type of chequebook. The chequebook is different of consist
of pages on the book.
 To withdraw money from the bank you need a chequebook. The bank
issues three different type of chequebook. The chequebook is different of consist
of pages on the book.

EXAMPLE-

A/C-34300323 SB A/C-10 pages

A/C- 33007531-CD A/C-20 pages

Public ltd A/C-50 pages

AT first to take chequebook you have to fill up the following Cheque

Requisition Form. And verify the signature from the deposit in charge. In the time
of receive the cheque book the A/C holder must be sign on the register book.

There are two type of deposit book

 Saving deposit book (yellow color)

 Current deposit book (Light green color)

4.3 Issuance of DD, TT & PO

This Bank offers DD, TT & PO for transferring the funds from one place to
another to our Customer. It is Called Inland Remittance. It is one kind of sources
of Income of the Branch. Bank can issue DD, TT & PO against cash or Cheque.
To issue the above we have to follow some rules & regulations.

4.3.1 Issuance of DD (Demand Draft)

DD is a written order from one branch to another branch of the same Bank.
It is not payable to bearer of the instrument. In practice, we can not issue DD
between Branches within the same city. We need to complete the following steps
for issuing a DD.
 4.3.2 Issuance of TT (Telegraphic Transfer)
TT is one kind of telegraphic/Telephonic message order to pay someone the
fund between two Branches of the same Bank. It is the quickest & easiest way to
transfer fund from one place to another place.

The charges for issuing of DD & TT of our Branch

DD/TT 0.10% of the total DD/TT Amount

Telex Charge TK. 40 fixed

VAT 15% of Commission amount

4.3.3 Issuance of PO (Pay Order)

PO is a written order, issued by branch of Bank to pay a certain amount to a

specific person or organization. Whose favor we issue PO is called Payee. Some
time PO is sold to individual on payment of value, and then the individual is called
the purchaser. A pay order has three parts such as:

 One part for preserve of Bank.

 One part for preserve of Customer.

 The largest part to whom it payment on behalf of customer.

As a customer you have to insure that two authorized officer signature

consist on the Pay order

Otherwise the pay order will return. A pay must have-

 Date
 Not over only amount

 Branch sill

Pay order charge

 Tk100-500000/- charge 58/-

TK 500000-above charge 116/-

4.4 Bills
Bank collects the bills through clearing in both inward and out ward.

4.4.1 LBC Cheques

LBC Stands for Local Bills Collection. LBC is a process of collection of

instrument, which is held between the two different Branches of the Same Bank in
the Same Clearing House. For example, if any A/c holder of our branch deposited
a cheque which is drawn on our Babu Bazar Branch. In this case we will collect
the proceeds through LBC.

4.4.2 OBC Cheques

OBC stands for Out Wards Bills Collection. Like LBC it is a process of
collection of instrument which is held between the two different Branches of the
Same Bank in the Different Clearing House/Different City. For example if any A/c
holder of our branch deposited a cheque which is drawn on our Agrabad Branch
Chittagong. In this case, we collect the proceeds through OBC.

Commission of OBC of our Branch

Below Tk. 1 Lac 0.15%

Above Tk. 1 Lac 0.10%

Postage Charge Tk. 10.00

4.4.3 IBC (Inward Bills Collection)

We collect the instrument on behalf of our a customer through LBC/OBC

which are drawn on other Branches of our Bank. Like this collection we also make
payment on behalf of our customer against LBC/OBC instrument, which are
received from other Branch but drawn on our Branch. For example if any A/c
holder of our Branch gives a cheque to his customer who maintains a/c with our
Babu Bazar Branch & deposited the Cheque in his A/c. Babu bazar Branch will
send the said Cheque to our Branch through LBC for collection. Receiving of this
kind of Instrument called IBC.

5
 6 Product & Services of National Bank
Products and services of National Bank Bangladesh given below:

1. Deposit product

 Current Deposit
 Short Term Deposit
 Fixed Term Deposit
 Monthly Deposit
 RFC Deposit
 NFC Deposit

2. Credit Product

 Lease Finance
 Home Loan
 SME Loan
 Consumer Credit
 Trade Finance

3. Cards

 Credit Card

 Power Card

6.1 Products & Services

1. Consumer Credit Scheme

2. Special Deposit Scheme

3. Monthly Savings Scheme

4. Credit Card

5. NBL ATM Service

6. Western Union Money Transfer

7. Saving Insurance Scheme

8. NBL Saving Scheme

 9. National Bank Home delivery Scheme

6.1.1 Consumer Credit Scheme

Buying home appliances? Get them through our Consumer Credit Scheme .
National Bank's Consumer Credit Scheme gives you a great opportunity to buy
household and office items on easy installments. This scheme gives you the
advantage of part payment to cope with the high price tags of many necessary
home and office appliances.

Television, Refrigerator, VCR, Personal Computer, Photo-Copier, Washing

Machine, Furniture, Microwave Oven, Car, and a number of other expensive items
are now within your buying range. With this scheme NBL makes better living
possible for people living on fixed income. Customers can buy those home and
office equipment's without over taxing their budget.

6.1.2 Special Deposit Scheme

Add to your monthly income, add to your solvency.

For most of the people on fixed income the opportunity to supplement their
monthly earning is a golden one. And NBL Special Deposit Scheme gives a
customer just that.

Under this scheme, customers can deposit money for a term of 5 years. The
deposited money is fully refundable at the expiry of the term. At the same time,
during the term period they can enjoy a monthly profit corresponding to their
deposited amount. As for instance, under this scheme a deposit of Tk,55,000/-
gives a monthly income of Tk.500/-.

Deposited Amount Monthly Benefit

Tk. 55,000/- Tk. 500/-

Tk. 1,10,000/- Tk. 1,000/-

Tk. 1,65,000/- Tk. 1,500/-

Tk. 2,20,000/- Tk. 2,000/-

 6.1.3 Monthly Savings Scheme
See your small savings grow with NBL.

This scheme is specially designed for the benefit of the limited income
group members. This helps to accrue small monthly savings into a significant sum
at the end of the term. So, after the expiry of the term period the depositor will
have a sizeable amount to relish on.

A monthly deposit of Tk.500/- or Tk.1000/- for 5 or 10 years period earns

in the end Tk.40,100/- or Tk.2,24,500/- respectively.

Monthly Installment Return after 5 years Return after 10 years

Tk. 500/- Tk. 40,100/- Tk. 1,12,500/-

Tk. 1,000/- Tk. 80,100/- Tk. 2,24,500/-

6.1.4 Credit Card

Safe, Instant and Universal Money in Home and Abroad.

Through its Credit Card. National Bank Limited has not only initiated a
new scheme but also brought a new life style concept in Bangladesh. Now the
dangers and the worries of carrying cash money are memories of the past.

Credit Card comes in both local and international forms, giving the client
power to buy all over the World. Now enjoy the conveniences and advantages of
Credit Card as you step into the new millennium.

“Credential for Ease & Prestige”

Lower interest Rate

Lower Annual Fees

Reduced Late Payment charges

Reduction in Card Replacement Fee

No Excess Limit Charges

Minimum Payment 5%
 ATM Facilities

One Free Supplementary Card with Local Card

International Roaming Facility with Mobile Phone

6.1.5 NBL ATM Service

National Bank Limited has introduced ATM service to its Customers. The
card will enable to save our valued customers from any kind of predicament in
emergency situation and time consuming formalities. NBL ATM Card will give
our distinguished Clients the opportunity to withdraw cash at any time, even in
holidays, 24 hours a day, and 7 days a week.

NBL ATM card - your access to prompt cash

6.1.6 NBL POWER CARD

It is a Pre-paid Card.

Annual / Renewal Fee Tk. 200/- only.

May be issued and refilled from RFCD/FC Account.

Accepted at all VISA POS merchants.

Cash withdrawal at all ATM booths bearing VISA and Q-cash

logo(Except HSBC in Bangladesh).

Drawing of Cash : (i) from NBL ATMs - Free of charges (ii) From ATMs
under Q-cash network- Tk.10.00 per transaction (iii) From other ATM - Tk. 100.00
per transaction.

Cash Withdrawal Fee(aboard)-2.00% on the cash drawn amount or

US$2.00, whichever is higher.

Only 1% loading fee against both International and Local Power Card at
the time of Refilling.

Yearly Tk.100 for enrollment of SMS service

The pre paid card from National Bank

 Use! Recharge and stay free!

Always! Anywhere.

No Annual fee for the first year

Very nominal renewal fee.

Accepted at all VISA POS Merchants

Cash withdrawals at all ATM Booths bearing VISA and Q-Cash logo.

NO need of any account with any NBL Branch

Flexible limit

6.1.7 Western Union Money Transfer

Money transfer from anywhere in the World to Bangladesh in minutes.
Joining with the world's largest money transfer service "Western Union", NBL has
introduced Bangladesh to the faster track of money remittance. Now money
transfer between Bangladesh and any other part of the globe is safer and faster
than ever before.

This simple transfer system, being on line eliminates the complex process
and makes it easy and convenient for both the sender and the receiver. Through
NBL - Western Union Money Transfer Service, your money will reach its
destination within a few minutes.

For any Further information, please contact:

National Bank Limited
International Division
18, Dilkusha Commercial Area
Dhaka-1000
Bangladesh
Tel: 880-2-955 7045
Fax: 880-2-956 3953
Email: nblid@nationalbankbd.com
Web URL: http://www.westernunion.com/
 6.1.8 Saving Insurance Scheme
Worried about the future? NBL has just the scheme for you.

This is an uncertain World and the threatening silhouettes of future

catastrophes are always looming around. This NBL scheme gives your family
protection against the insecurities of the world. This scheme is the first of its kind
in Bangladesh. It combines the benefits of regular savings and insurance scheme,
so, you get the usual rate of interest on the deposited amount while you enjoy the
protection of a comprehensive insurance coverage. Under this scheme, the
beneficiary (ies) get equal the deposit in case of natural death of the account
holder whereas in the event of accidental death of the account holder the
beneficiary (ies) will receive twice the deposit. As for example, if a customer picks
up Easy Class (Tk.50, 000/-) he/she will get Tk.50,000/- for natural death and
Tk.1,00,000/- for accidental death apart from his/her deposited amount and
interest.

1 Comments
National Bank limited is a private commercial bank established in 1983. At
present it has 111 branches and I’ve worked in its uttara branch as part of my
internship program. Uttara is a residential area and large portions of this branch’s
customers are people residing in the area. These people are mainly deposit
holders. Business transaction is concentrated in two large real estate firms and a
few private universities of the area. A large number of student make up the
branch’ regular customers.

The branch consists of a branch manager, assistant manager and 21 other

officers of various level and two peons and three guards. Work is distributed to
every officer. Each officer is assigned his/her work. As part of job rotation system
every officer is transferred within different departments of the branch within a
year. All officers report to the assistant vice president or thes Senior vice
president. The manager looks after the overall management of the branch.
 The different departments of the branch are the accounts opening,
clearing, accounts, western union, deposit collection, foreign exchange, credit
management etc.

I’ve started my internship at the accounts opening department. Then I

moved on to the clearing department and credit department, foreign exchange,
cash department deposit western union, foreign remittance &card division.

The work in accounts opening & Cheque book issue section is simply
customer service. Only one officer is assigned with the job. Although this seems
enough during slack period, during rush hour there is clearly a need for another
employee in this department.

The clearing department consists of one principal officers. One officer

examines the cheque and makes the entries in the computer. The other officer
examines and verifies cheques, writes the vouchers, makes OBC and LBC entries,
writes other accounts information and etc.

The work distribution in this department is also rather uneven. One

officer seems to have a lot of time in his hand and other seems to be submerged
with work.

The credit department consists of two principal officers. The work consist
of issuing credit cards.

Acting as the primary bank contact with borrowers, maintaining thorough

knowledge of borrower’s business and industry through regular contact,
factory/warehouse inspections, etc.

It is the duty of officers in this department to proactively monitor the

financial performance and account conduct of borrowers, to be responsible for
the timely and accurate submission of Credit Applications for new proposals and
annual reviews, taking into account the credit assessment requirements and to
highlight any deterioration in borrower’s financial standing and amend the
borrower’s Risk Grade in a timely manner.
 The overall atmosphere in the branch is friendly. Employees are warm and
friendly to customers as well as to each.

Recommendation
It is very difficult to recommend a strong organization like National Bank
Limited, which is performing over 26 years. I a suggesting to improve in some
areas. So it can perform better in future.

 NBL always take conservative decision to implement new idea.

 NBL should give attention to man power assessment and provide the
actual number of officer that need to run the every Branch.

 NBL have to more conscious about the promotional activities. They

pursued advertisement campaign in order to build a strong image
among the people. They should carry out aggressive marketing
campaign to attract clients. They can give advertisements in newspaper
and magazine, television

 NBL can pursue a diversification strategy in expanding its current line

of business. The management can consider options of starting merchant
banking.

 NBL should move towards Online banking operations.

 They have more CSR (Corporate Social Responsible) oriented.

2 Conclusion
In 2008 NBL earned the highest profit since it started in January
1983 and achieved strong growth in terms of capital and business size despite
uneasy domestic economic condition and Global recession.

With a strong deposit balance and assets National Bank Ltd run a efficient
way not only in our but also in the abroad. National Bank Limited has been trying
to operate its business successfully since 1983. The bank has already developed
good image and goodwill among its clients by offering excellent services. As a
newly established Branch, NBL Elephant Road is serving at its locality with utmost
satisfaction of the customer. So, NBL Elephant Road Branch has to compete with
those banks as well as other Commercial Banks. Today, the whole Banking sector
is facing a tough competition and challenge. In this situation this Branch is in good
position than any other Bank of its locality and day-by-day is increasing its
activities & goodwill.

Finally I can say that among the entire private bank in Bangladesh,
National Bank limited always providing the efficient service with very affordable
price. It is expanding their business all over the world with their performance
rapidly.