American International University-Bangladesh (AIUB) INTERNSHIP AFFILIATION REPORT ON General Banking Activities of National Bank Limited An Internship Report

Presented to the Faculty of Business Administration in Partial Fulfillment of the Requirements for the Degree of Bachelor of Business Administration (BBA) Supervised By: Mohammad Faridul Alam Assistant Professor Faculty of Business Administration American International University-Bangladesh (AIUB) Kamal Ataturk Avenue, Banani Dhaka-1213, Bangladesh. Submitted By: Turin Afroz Id No 08-11229-2 Major: Accounting & Finance American International University-Bangladesh (AIUB) Kamal Ataturk Avenue, Banani Dhaka-1213, Bangladesh. Date of Submission: 19/04/2012

INTERNSHIP REPORT ON General Banking Activities of National Bank Limited

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Letter of Transmittal

R.Tareque Moudud Director Office of Placement and Alumni (OPA) American International University-Bangladesh (AIUB) Kamal Ataturk Avenue, Banani Dhaka-1213, Bangladesh Subject: Submission of Internship Report Dear Sir Here is the report paper on the topic of General Banking Activities of National Bank Limited I have completed this report as part of my internship program. This report has been compiled as per your requirements and those set by the host organization. It gives me immense pleasure to tell you that working on this internship report has given me a wide range of exposure. This report is based on the knowledge, experiences and the skills that I have acquired during my period of internship in Sign Vision Ltd. I am thus submitting this report with the hope that it lives up to your satisfaction. However I would be glad if you enlighten me with your thoughts and views regarding the report. In addition, if you wish to enquire about any of the aspects of the report, I would be glad to answer your queries. Sincerely, ___________________ Turin Afroz ID: 08-11229-2

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Letter of Endorsements

The internship report entitled General Banking Activities of National Bank Limited has been submitted to the Office of Placement & Alumni, in partial fulfillment of the requirements for the degree of Bachelor of Business Administration, Major in Accounting & Finance, Department of Business Administration on 19 April 2012 by Turin Afroz, Id No 0811229-2, The report has been accepted and may be presented to the internship defense committee for evaluation. (Any opinions, suggestions made in this report are entirely that of the author of the report. The university does not condone nor reject any of these opinions or suggestions).

-----------------------------------------------Mohammad Faridul Alam Assistant Professor Faculty of Business Administration American International University-Bangladesh (AIUB) Kamal Ataturk Avenue, Banani Dhaka-1213, Bangladesh

Acknowledgment
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First of all, I would like to thank almighty Allah for his grace in accomplishing my internship report on time.

I would like to express my gratitude to my academic supervisor Professor Mohammad Faridul Alam from the core of my heart for his kind support, guidance, constructive, supervision, instructions and advice and for motivating me to do this report.

I am also thankful to all emlpoyees of National Bank New Eskaton Branch for giving me the opportunity to conduct the internship in National Bank Ltd. Bangladesh. I would like to thank to Senior Vice President Kazi Shamsul Alam, Vice President Mohammad Shahidul Alam, Senior Executive Hosne Ara Rita for supervising me and providing various key information and giving me the path to write a fruitful report. I am also grateful to the employees of all departments for their cordial acceptance. They have been very helpful in showing me the work process and provided relevant information for my report whenever I approached. It was a great opportunity to do internship in such an organization. The experience I have gathered will be a privilege for my future career planning.

Executive summary
Banking sector is one of the constant financial institutions of a country. Due to globalization and technological changes, they give effective real time service to their customers. A country is financially rich when it has modern financial institutions of its own. These institutions play a vital
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role in the field of financial stability of a country. National Bank Limited pursues decentralized management policies and gives adequate work freedom to the employees. This results in less pressure for the worker and acts as a motivational tool for them, which gives them, increased encouragement and inspiration to move up the ladder of success. Overall I have experienced a very friendly and supporting environment at National Bank Limited which gave me the pleasure and satisfaction to be a part of them for a while. The overall approach of the report is a descriptive one as it goes into the depth of service quality of National Bank Ltd. Here both primary and secondary information were used. Interview was the basic techniques comply to collect primary data from any people within the organization. Information about the varieties of activities within the correspondent banking department was collected trough interviewed. Among the secondary sources to collect data regarding the companys performance over the past six years are publications, Annual reports of Banks Ltd. Different circulars and papers of National Banks Ltd, Term papers of NBL training manuals, Guidelines for Foreign Exchange Transactions, General Banking Operation manual, Banking Lecture sheet within the organization helped me to gather data about the organization. Different Problems, suggestions, recommendations have come at the end of the report. The Problem findings during the three-month long internship period and suggestion are given from observation, comparative analysis, strategic point of view etc. To increase the efficacy in customer service National Bank Ltd should try to develop the process of providing services. National Bank Ltd has passed a long way science it is providing services. Already it has earning a strong positioned in the field of customer services. To continue the hold position and be perfect in this sector it will have to keep more and more attention to the customer retention and development. So the result of the study should be taken as indicative rather than conclusive.

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Table of Contents
Letter of Transmittal. Letter of Endorsement... Acknowledgement.. Executive Summery Chapter 1: Intrduction to the Report. 1.1 Rationale of the Study. 1.2 Objectives of the Report. 1.3 Background of the Organization.

Title of the Report: General Banking Activities of National Bank Limited

Chapter 1: Introduction to the Report

Chapter 1: Introduction to the Report 1.1 Rationale of the Study Theoretical knowledge never equips with all the skills he/she requires in the practical field, and therefore practical real world experience is required. Internships provide an opportunity for students to link theory with practice and further serve as a temporary labor pool for those agencies that have committed to participate in the internship program. The department fulfills its mission of preparing students for significant professional and managerial positions in the public sector. This

program and final report will enable the student to compare theoretical ideas taught in the classrooms in the complex business environment. There could be a great opportunity in terms of job prospects as this program provides the experience in actual public environments just before entering the job market. In the context of Bangladesh, the business, more particularly, the commercial banks are dominating in the business world. Professional behaviour is really an important skill in these business areas and this internship program will harness to achieve that skill. Both globally and locally, at present banking business is facing more and more competition due to more globalization and technical advancement where Bangladesh is not the exception. Due to rapid shifting of banking business, there has been acute importance of proper professionalism for continuing this business while keeping pace with fast advancement and to survive in the global competition. Apart from only lending and borrowing money, there have been loads of activities accomplished by banks and those activities require skill, knowledge and pure professionalism. BBA equips a graduate with required theoretical knowledge, where, to gain up-to-date skill, practical experience internship in banking business completes the roadmap for a student to his/her for continuing the journey in the rapid changing business and gaining the required professionalism. In this internship program, I was not just only observing how people were working, rather I was a part of team of National Bank Ltd with all my responsibilities from my very first day. There have been lot of meaningful projects and targets set by the bank management and I had the time and space to make them count. This has given me the opportunity to learn job responsibility and accountability. Additionally, being involved with the teams, leading and following members, meeting talented and real professional people, developing innovative ideas were really crucial for me and added many great values in my CV and all the skills are really transferable while I will be seeking employment in the related areas of banking business. 1.2 Objectives of the Report Mainly the objective of this report is to review and analyze the general banking activities of National Bank (the branch of Dilkusha). This will cover the various services of the banks for their

clients, benefits, their operation and management of their different activities and also some recommendations for developments if require after reviewing. Beside the main objective, this report aims to apply my theoretical knowledge in the practical field which is achieved in my academic level from my course and to fulfill the partial requirement of the BBA program form the department of accounting and finance. Additionally, this program will have a target of knowing about the general and advance banking activities of National Bank, bridging between theory and practical banking day-to-day activities and evaluating their operation and management. It will also cover some common inefficiency of their banking system and lastly will put some recommendations/suggestions for further development while solving the problems. 1.3 Background of the Organization National Bank Limited 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. 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 networks 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 businessmen, entrepreneurs and general public is much more to NBL. At present N.B.L. have 145 branches under their branch network. NBL was also the first among domestic banks to introduce international Master Card in Bangladesh. In the meantime, NBL has also introduced the Visa Card and Power Card. The Bank has in its use the latest information technology services of SWIFT and REUTERS. NBL has been continuing its small credit programmes for disbursement of collateral free agricultural loans among the poor farmers of Barindra area in Rajshahi district for improving their livelihood. The then President of the People's Republic of Bangladesh Justice Ahsanuddin Chowdhury inaugurated the bank formally on March 28, 1983 but the first branch at 48, Dilkusha Commercial

Area, Dhaka started commercial operation on March 23, 1983. The 2nd Branch was opened on 11th May 1983 at Khatungonj, Chittagong. New Eskaton branch of NBL was established in 2001 and the branch has achieved the confidence immediately after its establishment by providing superior quality service with sincerity. The branch is located at the central point of New Eskaton of Dhaka city. I have experienced a very friendly and supporting environment at NBL which gave me the pleasure and satisfaction to be a part of them for a while. NBL at a Glance: Date of incorporation Commencement of operation Nature of Business Slogan Target customers Authorized capital Paid up capital Deposits, accumulated (2009) General Investment (2009) Investments (Shares, Bonds) : : : : : : : : : : 23rd March, 1983 28th March, 1983 Financial Banking System Performance With The Potential Corporate customers & salaried person TK. 7450 million TK. 2847 million TK. 66685.25 million TK. 13069.85 million TK. 13069.85 million

1.3.1 Vision of NBL 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. 1.3.2 Mission of NBL

NBLs 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, NBL are also putting highest priority in ensuring transparency, account ablility, 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 upgradation and diversification of NBLs clientele services in line with national and international requirements is the desired goal we want to reach. 1.3.3 Goals and Objectives of NBL NBL is always ready to maintain in the highest quality of services by upgrading banking technology prudence management banking and by applying high standard of business ethics through its established commitment and heritage. To build up a deep-rooted and harmonies banker-customer relationship by dispensing prompted improved services to the clients. To make best use of hard-earned investment of our valued shareholders. Simultaneously, play our due part in developing a vibrant capital market by ensuring more effective participation of the Bank in the share market. To make best use of latest technologies for giving the clients a taste of modern banking so as to encourage them to continue and feel proud of banking with NBL. To respond to the need of the time by participating in syndicated large loans financing, thereby expanding the area of investment of the Bank. To gain confidence of all quarters involved in the economic development of the country through pursuance of a policy of continuous adjustment and coordination of the Banks external trade programmers with the dynamism inherent in the international trade and payments system. 1.3.4 Business Strategies of NBL To manage and operate the bank in the most efficient manner to enhance financial performance and to control cost of fund. To strive for customer satisfaction through quality control and delivery of timely services. To identify customer credit and other banking needs and monitor their perception towards our performance in meeting those and update requirement. To review and update policies procedures and practices to enhance the ability to extend better services to customer.

 To train and develop all employs and provide them adequate resources so that customer needs can responsibility addressed. To promote organizational effectiveness by openly communicating company plans, policies, practices and procedures to all employers in a timely fashion To cultivate a working environment that fosters positive motivation for improved performance To diversify portfolio both in the retail and whole sale market. To increase direct contact with customer in order o cultivate a closer relationship. 1.3.5 Core Values of NBL National Banks core values consist of six elements. These values bind people together with an emphasis that people are essential to everything being done in the bank. They believe that, they create new value by forming teams of specialist in various fields and providing optimal services to their customer.

Figure 01: Core value of 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 are judged in terms of their performance. Continuous Self Improvement: Continuous learning, self- challenges 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 the portfolio. Team Work: Interaction, open communication, and maintaining a positive attitude reflect NBLs commitment to a supportive environment based on teamwork.

1.3.6 Business Goal To patronize, sponsor and encouraged games and sports, entertainment and other socio-economic activities alongside providing the best services to the client. 1.3.7 Growth and Development of NBL The NBL carries out all traditional functions, which a commercial bank performs such as mobilization of the deposit, investment of funds, financing export and import business, trade and commerce and industry. The banking sector in the country faced different problems thought the year. Even through the board and management never stopped its effort to maximize wealth, which is reflected by 143.97percent profit growth in 2007, highest ever in the last 15 years. The bank earned the 676.45 core revenue in 2007 as interest, income from investment and commission & exchange earning, which who Tk. 530:69 crore in the provision year. As a result the total operating profit rode to Tk. 221.51 crore in 2007 from Tk.114.68 crore in the previous year.

1.3.8 Form of Organization: 1.3.8.1 Board of directors In NBL, the board of directors has been conceived as the sources of all power headed by its Chairman. It is a legislative body of the bank .Board can delegate its power and authority to professional but cannot delegate, relinquish or avoid their responsibilities. Board of Directors of NBL:Mr. Zainul Haque Sikder Ms. Parveen Haque Sikder Alhaj Khalilur Rahman Mr. Moazzam Hossain : Prof. Mahbub Ahmed Mr. Zakaria Taher Mr. Ron Haque Sikder : Mr. Rick Haque Sikder Mr. Mabroor Hossain Mr. A K M Enamul Hoque Mr. Salim Rahman Lt. Col.(Rtd) Md. Azizul Ashraf Capt. Abu Sayeed Monir Mr. Md Abdur Rahman Sarker : Chairman : Director : Director Director : Director : Director Director : Director : Director : Director : Director : Director : Director : Managing Director

1.3.8.2 Management Hierarchy of N.B.L. :

Chapter 2:

Activities Undertaken

Chapter 2: Activities Undertaken 2.1 Work Related Activities General Banking Financial institution/ intermediary that mediates or stands between ultimate borrowers and ultimate lenders is knows as banking financial institution. Banks perform this function in two ways- taking

deposits from various areas in different forms and lending that accumulated amount of money to the potential investors in other different forms. General Banking is the starting point of all the banking operating. General Banking department aids in taking deposits and simultaneously provides some ancillaries services. It provides those customers who come frequently and those customers who come one time in banking for enjoying ancillary services. In some general banking activities, there is no relation between banker and customers who will take only one service form bank. On the other hand, there are some customers with who bank are doing its business frequently. It is the department, which provides day-to-day services to the customers. Every day it receives deposits from the customers and meets their demand for cash by honoring cheques. It opens new accounts, demit funds, issue bank drafts and pay orders etc. since bank in confined to provide the service everyday general banking is also known as retail banking. The various jobs undertaken by a bank could be represented in the following way:

In the case of the NBL Eskaton branch, I found the following section of general banking activities of NBL. at New Eskaton branch.

Account Opening Dispatch Cash Department Accounts Department Loan and Advances Department

Clearing Department Bills for Collection Deposit Remittance

All the employees of New Eskaton branch helped me to complete my job and I tried to describe my knowledge, which I gathered from my internship period. 2.1.1 Account Opening Section Account opening procedure of NBL is very good. They collected all the necessary documents whenever they open an account. Only five to ten minutes are required to open an account if all the documents are correct. This branch has lots of deposit compare with other bank in New Eskaton area. Peoples are willingly comes to open an account in this branch. They dont need to force or convince to their client to open an account in their branch. A bank has to maintain different types of accounts for different purposes. NBL offers the general deposit products in the form of various accounts. There are some negative sides also of their account opening activities. Sometimes peoples are highly dissatisfied whenever they found that lots of information they have to provide. There are different types of accounts offered by NBL for its targets groups. These are shown as below.

2.1.1.1 Saving account (SB)

NBL offers customers a hassle free and low charges savings account through the branches all over Bangladesh. Savings account is that account whose interest rate is higher then current account and saving account holder can withdraw two times in a week. Savings account can be open by individual, joint name or club, society, association etc. Rules for opening saving account: Account opening money at least 5000 taka If deposit holder wants to close his account then he should pay 100 taka as cancellation charge Savings account interest rate is 6 % Depositor cant withdraw money more than two times in a week In the case of savings account Cheque book is 10 leaves Benefits of saving account: Interest rate of 6.00% on average monthly balance Minimum balance Tk.1000 Maintenance charge yearly Tk. 460 No hidden costs Standing Instruction Arrangement are available for operating account Requirements for opening individual saving account: An introducer who maintaining an account in the bank 2 copies of recent pass port size photo of the account holder Valid photocopy of Voter ID Card Pass port number (if any) TIN number (if any) Name of nominee Nominee's Photograph Two signatures on the specimen signature card

Requirements for opening joint saving account: An introducer who maintaining an account in the bank Two copies pass port size photo (both parties) Valid photocopy of Voter ID Card The amount can be received by any person signature or two persons signature jointly 2.1.1.2 Current account (CD) NBL offers customers current deposit facility for day-to-day business transaction without any restriction Current account is that types account where depositor can withdraw his deposited money at any time there is no restriction. Current account can be divided into following such as:Individual current account Proprietorship current account Partnership current account Current account for Limited Companies In the below given the requirements which are need for opening current account: Requirement for individual current account: Two copies passport size photo An introducer, who have an account in NBL, New Eskaton Branch. Ward commissioner or chairman certificate or national ID card. Mention sources of earnings. Requirement for proprietor current account: Trade license TIN number An introducer, who have an account in NBL, New Eskaton branch Seal of the applicant required

 Ward commissioner or chairman certificate or National ID card. Requirement for current partnership account: Partnership agreement Trade license An introducer, who have an account in NBL, New Eskaton branch Ward commissioner or chairman certificate or national ID card. Requirement for Current account for limited companies: Memorandum and articles of association of the company Power of attorney Resolution of the board of directors. Following documents which is certified by the chairman of the company: List of directors Certificate of commencement of business Certificate if incorporation.

2.1.1.3 Monthly Saving Scheme (MSS) NBL offers monthly savings scheme for it's retail customers. Monthly saving scheme (MSS) is specially offer for limited income group peoples, students. This MSS account help to accumulate in hand sum amount at the end of maturity date of MSS. Sl no 01 02 03 Amount to be paid on completion of Term Monthly Installments 3(Three) years 5(Five) years 8(Eight) years (Taka) @9.00% @9.25% @9.50% 500/20,627/37,896/70,849/1,000/41,255/75,791/1,41,691/2,000/82,510/1,51,583/2,83,394/-

04 05 06 07

3,000/1,23,765/2,27,374/4,000/1,65,020/3,03,166/5,000/2,06,274/3,78,957/10,000/4,12,549/7,57,914/Table 07: Benefits of MSS on different monthly installments

4,25,091/5,66,788/7,08,485/14,16,970/-

2.1.1.4 Fixed Term 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. 2.1.1.5 Short Term Deposit (STD) Short term deposit account interest is calculated at daises and its interest rate is 7.00 %. Requirement for opening short term deposit: Two copies of pass port size photo. TIN number An introducer who has an account in NBL, New Eskaton branch. Trade license. Ward commissioner or chairman certificate.

2.1.2 Dispatch The main function of dispatch division is dispatching all types of documents such as OBC, LBC, and different types of letter, different advice. Beside dispatch division receives letter and documents, which are may be coming from head office, all other branches of NBL, other banks, negotiation and opening bank (in case of Import and Export) in the name of NBL, New Eskaton branch. The officer engaged in the dispatch division maintain two types of mail, which is Inward mail

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Outward mail

Cash Department Cash receiving Cash payment

In cash department two types of activates has done which as follows:-

When depositor wants to withdraw his money then he present or order cheque for withdrawing cash from cash counter. At first deposit holder present his cheque on the computer desk. Then the authorized officer checks that cheque and amount has been balance in his account. When every things right then the amount has been debited from the depositor account on which the cheque has been drawn. If there is any doubt in the signature which has been appeared on the specimen signature card has verified. When everything ok then payment seal put on the cheque. Then bearer has signed on the back side of the cheque and authorized officer made payment. The authorized officer must have to maintain cash payment register. The components of cash payment register book are following: Cheque number Account number Payment amount Authorized signature Payment date

2.1.4

Accounts Department

Accounts division is the most important for all banks. In accounts division maintain all types of accounting procedures of New Eskaton branch and support the branch to take different types of initiatives by providing various data and information. Functions of Accounts division:-

 Prepare daily statement of affairs Give posting of voucher in computer. Maintain transfer book Prepare supplementary Prepare daily, weekly, monthly, and quarterly, half yearly and annual statement Reconciliation of CIBTA Prepare advice Prepare incomes and expenditures statement All administrative work When accounts officer receive any types of voucher then he has to identify whether it are Clearing Cash
Transfer

Clearing: When accounts officer receive clearing voucher then he send it to the clearing division. Cash: When accounts officer receive cash voucher then payment made by clients. Transfer: When accounts officer receive transfer voucher that means this amount should be transfer one account head to another account head. In this case accounts officer register it in register book before computer posting. Before register this voucher in register book officer put a serial number that is register in register book. In transfer register book contains debit and credit side, particulars and amount. End of banking hour accounts officer calculate the transferred amount and debit balance and credit balance should be equal and he make sure that the debit balance and credit balance of transfer, clearing and cash position should be same figure. Every day accounts division prepared daily statement affairs and send them to every department. 2.1.5 Loans and Advances Department

Loan: An arrangement in which a lender gives money or property to a borrower and the borrower agrees to return the property or repay the money, usually along with interest, at some future point(s) in time. Usually, there is a predetermined time for repaying a loan, and generally the lender has to bear the risk that the borrower may not repay a loan (though modern capital markets have developed many ways of managing this risk).

2.1.5.1 Home Loan NBL offers home loan facility for purchasing flats or construction of house. Grace period is available up to 9 months for flat purchase or 12 months for construction Competitive interest rate No application or processing fee Eligibility: Any Bangladeshi citizen or NRB, who is capable of repayment, can apply for this loan. 2.1.5.2 SME Loan NBL offers financial support to small businessmen/enterprise with new products named "Festival Small Business Loan" and "NBL Small Business Loan" has been introduced in the Bank. Eligibility: Any genuine and small businessmen/ entrepreneurs/enterprise having honesty, sincerity, and integrity. The products of National Bank with their financing items under LOS loan are given below:

Household Durable Loan: Motor Cycle, , Personal Computer, Photocopier, Fax

machine, Small PABX system, Television, Mobile Phone set, Refrigerator, Audio-video equipment, Other home electric appliances, Furniture and any other household items.

Car Loan:

Car, Jeep, Station Jeep, Pick up, Van, Cover Van, Bus, Truck,

Ambulance and any other vehicle for own use.

Doctors Loan: For the Doctors only. Advance Against Salary: Any qualified person Education Loan: For Study purpose only. Travel Loan: For traveling purpose. Wedding loan: For wedding only. CNG Conversion Loan: To convert into CNG. Any Purpose Loan: For emergency need. Hospitalization loan: For treatment in hospital.

2.1.6 Clearing division The scheduled banks clear the cheques drawn upon one another through the clearing house. This is an arrangement by the central bank where every day the representative of the member banks gather

to clear the cheques. The place where they meet and settle their dues is called the clearing house. The clearing house sits for two times a working day. The members submit the claimable cheques in the representative desks of the banks and vice versa. Consequently the debit and credit entries are given. At the end debit summation and the credit summation are calculated. Then the banks clear the balances through the cheque of the Bangladesh bank. The dishonored cheques are sorted and returned with the memo. NBL, New Eskaton branch receive cheque, demand draft, pay order from their clients for clearing. It has been seen that when the instrument of other banks have deposited in the NBL, New Eskaton branch. Clearing are Two Types; 1. Outward Clearing & 2. Inward Clearing Outward Clearing: Cheques that are drawn on other bank & deposited by customer to a bank for onward collection within the clearing zone is the outward clearing for that bank. Inward Clearing : Receiving of cheques by a bank that are drawn on themselves &sent for collection by other bank is the inward clearing for that bank. As such, what is Outward Clearing for the Collecting Bank & Inward Clearing for the Paying Bank Clearing House: Clearing house is a place where member- banks meet to hand over cheques.

Central Clearing in Flow Chart

Bangladesh Bank Dhaka Bank Ltd. (Clearing House) Local Branch Exchanging of Cheques

National bank Ltd. Local Brach

Dhaka Bank Ltd. Dhanmondi Branch

National bank Ltd. Motijheel Branch Figure: Clearing Activities of NBL through BB

2.1.7 Bills for Collection: A bill drawn & payable in Bangladesh is inland Bill.. A bill not so drawn or made payable is a foreign bill. Cheque, Pay Order, Demand Draft, Pay slip & SDR are the usual forms of inland bill (a). Local Bills for Collection (LBC): These are the bills to be collected from the same banks other branches within that clearing zone. (b) Outward Bills for Collection (OBC): OBC means collection of bills from own out stationed branch or other bank. Same procedure shall be for OBC as is done in case of LBC in addition. (c) Inward Bills for Collection (IBC): The bill may also be sent to the 2nd collecting branch for onward collection through clearing. 2.1.8 Deposit Deposit is the Heart of Bank. Banks are based on collection of Deposit. Deposits are the foundation upon which banks thrive & grow. Bans become the owner of the deposit money. In NBL New Eskaton Branch Various Types of Deposits are:

Current Account Savings Account Fixed Deposit NBL Monthly Savings Scheme (NMS) Monthly Income Scheme (MIS) Double Benefit Scheme (DBS)

 Millionaire Deposit Scheme (MDS) Special Notice Deposit (SND) School Banking Serious Savers Account (SSA) Super Savers Term Deposit Account (SSTDA)
In National Bank New Eskaton Branch, they follow A to Z Software which perform Better service to the customer in Deposit Department. 2.1.9 Remittance

Remittance is one of the main components of Banking. The remittance section is plays a very vital role in case of banks customer service section. Remittance means transfer of money from one place to another. It is one of the safest ways to transfer money from one place to another. NBL has 91 brunches so they have strong network through whole country and they can easily reemit money most of the districts with in the country. For transferring money NBL. offer different instruments such as: Pay slips (Ps) Telegraphic transfer (TT) Pay order (PO) Demand draft (DD)

2.2 Organization Wide- Other Departments Divisions of NBL: 2.2.1 Finance & Administration Division (FAD) This division can be called the central account division because all the account related activities are done here. All the branches send their monthly statement to the head office. In this division, annual closing statements is used, which prepares monthly position of the bank in cumulative basis. The in charges of the branches are requested to ensure completion of annual closing of accounts and preparation of all statements and returns accurately as per following detailed programmed. It may

be mentioned here that from the annual closing statement, to prepare balance sheet, profit and loss account, cash flow statement, statement of change in equity and liquidity statements according to bank companies act. 2.2.2 Credit card Division The bank sets distribution any for implementation purpose of its credit card service. This division controls all activities dealing with operation of credit card. The bank has implemented its credit card on March 20, 1997. 2.2.3 Tax Department This new and special department is formed for the purpose of monitoring all activities related to tax of Government. They always takes steps as a way that will be easy to follow for their branches according to the rules and regulations of taxation. For this reason this department always keeps proper communication and relation with Bangladesh Bank and National Board of Revenue (NBR). 2.2.4 Offshore Banking 2.2.4.1 Foreign Exchange Foreign Exchange is the means and methods by which rights to wealth in a countrys currency. In banks when we talk of Foreign Exchange, we refer to the general mechanism by which a bank converts currency of one country into that of another. Foreign Exchange Department (FED) is the international department Bangladesh Bank issues license to scheduled banks to deal with Foreign Exchange 2.2.4.2 SWIFT (Society for World Wide & Financial Telecommunication) For the benefit of their client, NBL gives opportunity by providing Traveler Cheque to those who want go abroad. For that they work as an agent of American Express Bank and sell travel cheque of AMEX to their clients. NBL has become the member of SWIFT. The activates of SWIFT have been started from last December 2000. Now the transfer of ExportImport documents and such other messages become very easier and shorter.

2.2.4.3 Foreign Remittance

In National Bank New Eskaton Branch there are following types of foreign remittance. This are-

NBL Quick Pay Western Union Money Transfer Samba Quick Express Global Instant Pay DIIT etc.

2.3 Other Related Activities: 2.3.1 Corporate Social Responsibilities of NBL : It is important that citizens of a society enjoy the full benefits that society offers. A society, in turn, flourishes when its citizen can contribute their fullest potential. The well-being of individuals is jeopardized when normal developmental processes are interrupted by personal crisis, poverty, unemployment, poor health and inadequate education.

Chapter 3:

Constraints/challenges and proposed course of action for the improvement

Chapter 03: Constraints/challenges and recommendations for improvement Every research work has to face some limitations while conducting various research activities in various extents. There was no exception in the case of me while I was pursuing my internship program. I had to come across many challenges to acquire the exact outcome from my activities. Basically the challenges I faced could be categorized in two types.
a. Problems identified in the organization.

b. Problems due to lack of adequate and appropriate academic preparation.

3.1 Problems identified in the organization:

There were some constraints or limitation inside the organization and they could be categorized as, i. Limitations faced by me, and, ii. Limitations of the organization 3.1.1 Limitations faced by me: While working in the National Bank, sometimes this place seemed to me as very challenging place to work for me. I experienced the reality of current challenge of the present job market which moves on more intensely due to the increasing competition. This part of the report will emphasis on the factors of challenges faced in the organization. National Bank is a big organization in general term and there are lots to be considered to study their general banking activities thoroughly. However, picking all the aspects of their overall activities and covering everything precisely was a real challenge for this report.

Regular interaction with the officials was the pre-condition of getting various information about banking activities. As the bank officials were busy in their own role, it was difficult to discuss with them about various important things.

A company should obey its policy and therefore, National Bank has to maintain the secure and restricted internal environment for the safety of the company. Getting access to the people is a matter of maintaining great precaution for their safety, and hence, there will be many restrictions for a student or intern for getting to them as an outsider. On the top of this it, keeping the banks various information or data secured is one of the most important issues. Therefore, there was no certainty of gaining all the important information required for this report. Even, some important was totally restricted due to the suspicion of security breach. Hence, getting access to limited people and limited information were some significant factors of challenges.

A study on like this topic may take significant amount of time where this internship had to be accomplished within limited three months of time as required by the university. The university requires ample amount of work within such a short time and this was a great challenge for me and providing with all required information was impossible in some extents.

Recommendation for Improvement: Although there are various problems or limitations faced by me during my internship inside the organization, there could be some dedicated research divisions to collaborate with the researchers whether they could be from the bank inside or students or any researchers from outside. This will facilitate getting access to some concern people or department for information solely for the research and co-operate the interns, students or any researchers. The short span of time for such a big research is not always enough therefore the University could consider the time duration for the internship program. 3.1.2 Limitations observed in the organization The banking system seemed to me as very traditional and modernization was hardly observed. Despite the good banking service, sometimes customer service was not up to the level to some extents. Lack of research, survey and feedback system with the customers is big factor in the bank.

As part of modern banking, their ATM booth service is not to the expected level yet. It has been seen that they use very short version of check books. Compared to other competitors their products and service was not that competitive and for this they might face liquidity in future due to withdraw of their significant amount of money.

Employees satisfaction is one of the most crucial factors in an organization. However, it has been observed that the salary was not to satisfactory level after interviewing some staffs.

Recommendations for improvement: National Bank should focus on inclusion of modern banking technology including more ATM machines. In the branch I worked with should introduce POS machine so that customers do not need check always to withdraw money. Customer service is fundamental and to keep the customers with them the service and product should be competitive and attractive. They should also include survey, research and feedback system for the customers for further improvement. Fairness for all the employees is mandatory for going ahead and this bank should ensure the correct salary and reward for all class of employees.

3.2 Problems due to lack of adequate and appropriate academic preparation: The main objective of an internship program is to make the bridge between the theoretical knowledge and implication of it in the practical professional life. There are number of courses have been undertaken during my BBA program in AIUB and I have chosen accounting and finance as major because of great importance of this field in the current professional life. Nevertheless, all the courses I have undertaken might not match precisely in the practical field and I have come across a numbers of relevance and mismatches during pursuing my internship program. 3.2.1 Mismatches with my academic preparation: In many cases, I have experienced mismatch with my academic courses while I was doing internship program. This is because the university does not always provide the practical knowledge and I found a few courses those focus on banking activities solely. In my BBA course I had to gain knowledge in various broader aspects including finance, accounting, budgeting, capital management, taxation, auditing where very few of them deeply focuses on banking activities. Also,

the university always emphasis on the theoretical knowledge and I had not much scopes for gaining much practical knowledge on banking activities. Some Recommendations: To equip a student with more practical knowledge, a university could provide with some practical knowledge with some precise and specific courses or training which will be more effective for the student for his/her professional life. 3.2.2 Relevance of the academic preparation or major to the present assignment and future job requirement of the organization: Despite many mismatches with my academic preparation, I found some courses those were really useful as I needed the theoretical knowledge of those course while I was doing the internship program on banking activities of the National Bank. From all the courses few could be mentioned and they are: i. Financial Markets and Institutions: This course was basically about various characteristics of financial institutions and market including banks. I found this course useful for the internship program, as I have acquired knowledge about how a financial institution i.e. bank plays vital role in the financial market through its day to day banking activities. ii. Bank Fund Management: This course provided me with the knowledge on the financial management of a bank to protect a bank from bank liquidity and failure. While I was doing my internship program, I had the chance to look into the activities of the National Bank and their financial management was a fundamental part of these activities. The knowledge I gained from the course assisted me evaluating their financial management system.

iii. Investment and Portfolio Management:

A bank always focuses on investment fund management to derive the maximum benefit from it. I gain not only the knowledge about investment management of a bank but I also studied on market settings, industry analysis, company analysis and technical analysis. It was useful in the sense that I had to analyze the overall banking activities of the National Bank and that included various analysis of this bank upon which their current and future strategies to be set.

Chapter 4: Lessoned Learned from the Internship Program

Chapter 04: Lessons learnt from the Internship Program:

The lesson about the organization I have learnt from the entire internship program was really important. I had the opportunity during the program to get a closure look at the various general banking activities along with all other financial activities of the National Bank New Eskaton branch. All I have learnt is about various departments of the bank, their management, general activities, operation and so on. Overall, the whole program helped me both understanding the banking activities and making the report smoothly required by the department. 4.1 Implications to organization/company: 4.1.1 Multi-dimensional Task Accomplishment: It is required that an intern will deal with various sectors and departments of an organization. The variety of task I have performed in the Branch was not of the same taste, however, I felt that I have achieved some more dimensions while I was studying on the various sectors of the organization. These multi-dimensional pieces of work could be valuable for my career ahead of me. 4.1.2 Adjustment with the work place and Socialization: Organizational socialization means the adjustment of the skill, academic knowledge and behaviour with the working environment in the working place. While I was performing my internship program within the bank, I was being treated as an employee like others in the organization. I got sufficient assistance from the working people in terms of acquiring enough idea about their working strategy. This enhanced my knowledge, skill and the power of implementing of my academic knowledge in a workplace. I believe this is much quite important and also the whole program made me ready for starting my professional career in the same environment.

4.1.3 Enhancement of Communication Skill: As a fully customer oriented organization, the National Bank operates great customer service where the communication skill is one of the fundamental factors. Treating every customer in banks customized unique way is a challenging thing as I observed while working with the staffs of the branch. I have achieved significant amount of knowledge about customer service and I have realized that great communication skill is the fundamental requirement of serving the customers with great service.

4.1.4 Familiarization with Corporate Culture: It is required that a workplace could have people from different cultural back ground within it. It was not the exception while I was working in NBL Eskaton Branch. Mixing with the culture of the organization and coping up with the people from different background really equipped me with knowledge of workplace diversity. I have also observed the customers from different cultures are being served by the bank and gained the skill of maintaining a unique culture regardless possessing different cultural backgrounds by the people. Additionally, the corporate culture of the NBL Eskaton Branch was really friendly and cooperative for me during my whole internship program.

4.1.5 Motivation of the employee within the organization: Besides doing my program, the bank provided me some compensational benefits and I felt more courage for performing my study. I found that this is an effective way adopted by an organization to motivate its people whether they could be interns or staff of itself.

4.2 Implications to Universitys Internship Program: This internship is a part of our BBA program. AIUB has given us this opportunity to have a practical job experience before getting into a permanent job as a full time employee. Definitely this

internship program will help us a lot in job sectors. Internship helps us to learn lots of things which will be very effective for the near future. From universitys internship program I have learned 1. How to give a companys portfolio in the report 2. How to present work experience in the report 3. Cooperative education experience 4. Concern for integrating experiences and external experiences 5. Way of communication. 4.3 Others: While doing this internship I have learned lots of new things, which was totally unknown for me. Besides learning from the organization and the university I have also learned some other things which are very essential for me. 1. Increased trust, confidence and professionalism 2. Improved subject area and discipline knowledge 3. Increasing sophistication 4. Developing skills and competencies 5. Symbolic capital and meaning, conceptual familiarity.

Chapter 5: Concluding Statement

Chapter 05: Concluding Statement 5.1 Summary The experience and learning I have gathered from my whole internship program with the National Bank Limited (Eskaton Branch) was really important for me and I enjoyed the whole thing from the first day of my internship program. This internship program assisted me a lot to realize my further career for the coming future. Rather than drawing a conclusion, I would like to say that this study was utterly indicative for me for my future career. During the long three months program, in fact most of the sections and departments have been observed by me and I had acquired plenty of understandings about those. I had a great scope to match my theoretical knowledge with practical banking knowledge. I have come to know that along with conventional banking service, the NBL also performs some specialized financial activities for the growth of countrys economy. The online banking will be launched shortly for making the banking easier for the customers. From my understanding about general banking activities, I can include several activities such as cheque clearing, cash receipt and payment, local remittance and so on. It has also been watched that the amount of deposit in the NBL Eskaton Branch is high as the area the branch is situated in is a rich area in the capital city. The credit proposal is dealt with the loan and advance department and the decision of disbursing the credit basing upon the proposal strength is given by those departments. Doctors scheme, house building loan and term finance for medium and small scale industries are also provided this bank as specialized finance service. From the experience of the whole internship program, the NBL Eskaton branch is a nice place to work with its nice and cooperative people within it. Additionally, understanding various sectors of the bank, it can be said that National Bank Ltd plays some vital roles for the countrys economy.

5.2: Recommendations for future strategic actions There are several recommendations have been realized from the whole internship program. Some of them mentioned below. The communication between the intern and the supervisor should be quite clear and on the regular basis so that the intern has the total understanding and control over the entire internship program. The university sometimes could take initiative for the students who often fail to get offer form the companies for internship. The university could make some reference lists with big companies and make them offer its students for internship. A fresh intern is not always that keen to achieve full control on the program. He/she might not need some extra knowledge about corporate culture and some other things about a work place and companies. In this regard the supervisor could be a big helping hand for the intern. The supervisor can give initial view about corporate environment for a smooth start of the program. The interns could get highly motivated by the supervisors while they will be performing the internship program in some particular companies. This motivation will drive the interns to get jobs from those companies. Also, the supervisors can arrange some group discussion to share the information about companies and make the interns fully understand.

References

Debnath, R.M. (2004). Business of Banking (1st ed.). Dhaka. Lotus Publishers, 984-32-1093-9 NBL Annual Report, 2008 NBL Annual Report, 2009 NBL Annual Report, 2010 NBL Monthly Statement & Daily Affairs National Bank Limited: www.nblbd.com Bangladesh Bank: www.bangladeshbank.org.bd

ISBN

Appendices
Abbreviation: A/C AD B/L BB BOE CCI & E CFR CIB CIF DD DP EPB EXP FC FDD FOB HS IBC IBCA IBDA IMP IRC L/C LCAF OBC PO PSI SWIFT TC TIN TR TT STD Account Authorized Dealer Bill of Lading Bangladesh Bank Bill of Exchange Chief Controller of Import & Export Cost & Freight Credit Information Bureau Cost Insurance & Freight Demand Draft Note Demand Promissory Note Export promotion Bureau Export Form Foreign Currency Foreign Demand Draft Free On board Code Harmonized System of Coding Inward Bills for Collection Inter Branch Credit Advice Inter Branch Debit Advice Import Form Import Registration Certificate Letter of Credit Letter of Credit Authorization Form Outward bills for Collection Payment Order Pre Shipment Inspection Society for Worldwide Inter Bank Financial Travelers Cheque Tax Identification Number Truck Receipt Telegraphic Transfer Short Term Deposit