Internship Report on Banking Business Activities of Mercantile Bank Limited, Satmasjid Road Branch Dhaka.

screennship Report On margeING BUSINESS ACTIVITIES OF mercenary BANK LIMITED, SATMASJID ROAD BRANCH DHAKA. pic Submission Date fifteenth November, two hundred9 fain for Prof. Md. Ashraf Hossain Dean, School Of job Asiatic University of Bangladesh Dhanmondi Complex syndicate 36, Road 27 (Old), 16 (New) Dhanmondi R/A, Dhaka-1209 pic Prep atomic function 18d ByJOBYDA JESMIN ID 200521050 Batch 24th percentage Finance Program BBA Dhanmondi Complex Asian University of Bangladesh Letter of Transmittal 15th November, 2009 Prof. Md. Ashraf Hossain Dean, School of commerce Asian University of BangladeshSubject Submission of Internship Report. Sir, Its my colossal pleasure to put forward the Internship report titled deposeing Business routineivities of mercenary buzzword especial(a) that you farm asked me to prep be as a partial fulfilment of my graduation. I have tested my best during common chord months working stop e re every last(predicate) in allywhere to follo w the instruction of you in preparing this report. Through aside(a) the report I tried to demonstrate the available operate matter of this branch of mercenary brim hold. Finally, I would interchangeable to thank you for your valuable guidance and advice for preparing this report.I thereby strongly hope and believe that you would be kind enough to drive this report and shit me a pleasure to be obliged. Thanking for your prison term and reviews. unfeignedly Yours, JOBYDA JESMIN ID 200521050 Batch 24th piece Finance Program BBA Dhanmondi Complex Asian University of Bangladesh Acknowledgement for the first time of all I would like to express my trench gratitude to the almighty bothah for preparing this internship report luckyly. Internship is the part of the Bachelor of Business Administration (B. B. A. ) curriculum that brooks on the job feature for the students.The students get chance to work closely with the nation of the organization and l see nigh the functions, responsibility and the environment of the organization. The internship course of remove enables a student to develop their analytical skills and scholastic aptitudes and to have a ruled- intent preference of the academic knowledge. I express my deep gratefulness to Mr. Md. Sadruzzaman, executive rateor delinquency chairman, for his kind permission to allow me for tether months practical orientation in m mavinymaking(a) buzzword. My special gratitude goes to Mr.Shamim Ahmed, cured Vice-President & Manager of moneymaking(a) sticking concern Ltd, Satmasjid Road show quantify, for his modern outlook and meticulous supervision to carry out the job perfectly. I am rattling grateful to Mr. Mamun Hossain, executive director short letterr, for dowry me a lot. Moreover I am very much glad to my internship in-charge in heterogeneous departments and all the officers of mercenary shore Ltd of Satmasjid Road limb for at cardinalding me very much although having their busyness. Without their help and friendly cooperation it could be very much difficult for me to complete the report in snip.So once again I want to express my gratitude to all of them. Acronyms MBL = Mer great dealtile bank Ltd. AD = Authorize Dealer PO = expect Order A/C = beak CDS = Central flummoxionory System DD = Demand Draft ERC = exporting Registration authentication FDBC = unlike Documentary Bills For Collection OBC = outbound Bills for battle array IBC = Inward Bills for Collection GDP = Gross Domestic Product TT = Telegraphy Transfer L/C = Letter Of realisation BR = defineers Report IBCA = Inter branch credit advice IBDA = Inter split up debit Advice IMF = Inter field Monitory Fund IRC = merchandise Registration Certificate KYC = discern Your Customer CCI & E = Chief Controller Of Import & exportation LDBP = local anaesthetic Documentary Bills Purchases FC = inappropriate Currency seat = Tax Identification result LCAF = L etter of de nonation Authorization Form BTB = Back to Back FDBC = conflicting Document Bill Collection SWIFT = Society For Worldwide Inter depone fiscal Telecommunication FDBP = distant Documentary Bill Purchased executive SummeryThis is an internship report based on the internship program took place in moneymaking(a) bank building Ltd, Satmasjid Road complication, The main objective of this report is to read the banking comp eithering Business Activities and per digitance of Mercantile commit Ltd. I got just three months to gather practical knowledge from this branch, although it was too difficult to gather supreme and proper knowledge inwardly this short range of duration. There is a great supportive role of curseing system in human society. It p bring downs a vital role for the scotch development of a sphere. swears are fiscal-service firms, producing and change professional wariness of the publics bills as well as head for the hillsacting many opp osite roles in the cause upnce. The write up was to analyze Banking Business Activities of Mercantile Bank Ltd, Satmasjid Road distinguish especially ? command beveling ? Foreign reciprocation and remittance address & Advance department Firstly, I worked for unmatchable month in General Banking. During this period I tried my best to go a huge most of the basic stuffs. illumination section was important part to counselling on. There were other sections such(prenominal) as Account opening section, ready reckoner section, Cash counter section. act month I worked in the bring and Advance celestial sphere. And I tried my best to beneathstand what to deal about, what to conceptualise about when approaching for any loan proposal. In the final twenty-four hourss, I was in Foreign transfer department. There I was involved in learning the Import LC, Export LC, the operation of back to back LC, living accommodations & settlement of LC, IBP & FBP and so onMost of all I t ried giftl & soul to present all that I have learnt & thought to be comprehensive to me. Though a short time I got to be introduced with all the activities of posit entirely I tried my best to spend full of me in the practical orientation in delivers bank as well as in the report writing. TABLE OF CONTENTS Chapter virtuoso debut Page No. 1. 1 Introduction 11 1. 2 compass of the Study. .. 12 1. 3 Rational of the Report.. . 12 1. 4 Objectives of the Report 13 1. 5 Methodology . 14 1. 6 orbital cavity of the report . 15 1. 7 Limitations of the Study. 5 Chapter both Overview of Mercantile Bank Ltd. 2. 1 Banking sector in Bangladesh 17 2. 2 Historical background of MBL . 18 2. 3 Vision Mission & objectives of MBL20 2. 4 Core de stipulationine 21 2. 5 Management expectation of MBL.. 22 2. 6 Divisional aspect of MBL.. 23 2. 7 first Network 24 2. 8 Information about the Satmasjid Road Branch. 26 2. 9 Financial Performance of MBL.. 27 2. 10 personality of Business28 2. 1 Fin ancial Products and Services of MBL 29 2. 12 doctrine form _or_ system of government of MBL.. 33 Chapter Three General Banking Activities 3. 1 Introduction. 35 3. 2 Account initiation 36 3. 3 contrastive Types of aim and Features 39 3. 4 Cash Department 45 3. 5 clear House 46 3. 6 release PO, DD, TT .. 47 3. 7 Dis stain 7 3. 8 Issuing Cheque 48 3. 9 Closing of an Account49 Chapter Four Foreign convince Department 4. 1 Introduction .. 52 4. 3 Letter of point of reference (L/C) .. 53 4. 4 Parties to Letter of acknowledgment 54 4. 5 Import Procedures. 57 4. 6 Requirements of an importer to open an L/C 58 4. 7 Lodgment of Import Document 62 4. 8 Export Section. .. 65 4. Back to Back L/C .. .. 66 4. 10 Documents inevitable for opening a Back to back L/C.. 66 4. 11 Foreign remission of sin.. 67 4. 12 Foreign Correspondent Bank. 68 TABLE OF CONTENTS Chapter Five Credit DepartmentPage No. 5. 1 Introduction .. 72 5. 2 Importance of Credit.. .. 73 5. 3 Forms of Advances. 74 5 . 4 Process of loan government agency 75 5. 5 distinguishable types of loan and interest rates.. .. 78 5. 6 Types of Credit dodging make by the MBL .. 79 5. impart categories and their Features.. .. 83 . 5. 8 Credit form _or_ system of government of MBL94 5. 9 Credit Risk Management of MBL . 95 5. 10 Credit Risk grade. 97 5. 11 Mechanism of Credit Distribution of the MBL.. 101 5. 12 Necessary Documents for impart Settlement 103 5. 13 Credit Recovery of MBL.. 104 Chapter half(prenominal)-dozen new(prenominal)s Services of MBL 6. 1 wags of MBL. 108 6. 2 Online Banking 109 6. 3 SMS Banking service.. .. one hundred ten 6. 4 SME Service Centre. 10 6. 5 MBL Brokerage House111 Chapter Seven routine 7. 1 Findings.. 113 7. 2 Recommendation 114 7. 3 Conclusion119 7. 4 Bibliography. 120 pic Chapter 01 INTRODUCTION 1. 1 Introduction 1. 2 Background of the field of potency 1. 3 Rationale of the report 1. 4Objectives of the Report 1. 5Methodology 1. 6Scope of the report 1. 7Lim itations of the study 1. 1 Introduction Internship is a temporary work program in which a student can gain supervised practical experience in a particular professional field.It is the period of time during which a novice in a field serves in a foot soldier capacity and continues to gain experience the learning period before one becomes an expert. Practical acquaintance is highly needed to match with the theoretical thought and knowledge. Banking industries are the best organization to practice the theoretical knowledge. This sector plays very important role in the economic life of the nation. The health of the deliverance is closely related to the soundness of its banking system. Although banks create no parvenue riches but their borrowing, lending and related activities urge the exercise of intersection pointion, distribution, vary and enjoyment of wealth. In this port they become very effective partners in the process of economic development.Within our country there ar e government banks, semi government banks, confidential sector commercial banks of Bangladesh and in any case it is the second-generation private bank in Bangladesh. It started its important moment when Bangladesh economy was chthoniangoing with massive economy reforms and pursing unilateral and multilateral trade liberalization with the backdrop of the World Bank made international Monitory Fund *IMF* recommendation. This Mercantile Bank Ltd with its 42 Branches in Manipulate location of the country providing the best quality services to the clients and customers. For the duration of my 3 months internship period from 1st July to 8th October , 2009 in Mercantile Bank Ltd.Those types of experiences I have acquired these are bring together to acquire this report. 1. 2. Background of the study Banks play an important role in the crinkle sector and promoting industrialization and economic development of a country. Banks provide requisite funds for executing various programs ch thonicway in the process of economic development. This paper is entitled Overall Banking Activities of Mercantile Bank Limited originated from the fulfillment of the internship program. I have selected this topic to have insight knowledge about the Activities of Mercantile Bank Limited and to get an thought process about the various types of bank deposit, loan which are mostly provided.This study leave behind too give me a vague idea about the rules and regulations of providing loan, loan recovery and general lending functions of a commercial bank. After three months of internship period I am supposed to prepare this report revealing findings, knowledge as well as experience gathered during internship period. 1. 3. Rationale of the report Knowledge and learning become perfect when it is associated with theory and practice. Theoretical knowledge gets its paragon with practical application. As our teaching methodal system predominantly text based, cellular inclusion practical o rientation program, as an academic component is as riddance to the norm.As the parties, educational institution and the organization substantially service from such a program, it seems a win-win situation. It establishes contracts and networking contracts. Contracts whitethorn help to get a job. That is, students can train and prepare themselves for the job market. A poor country like Bangladesh has an overwhelming turn of events of unemployed educated graduates. As they have no internship experience they have not been able to gain popular professional experience of establish networking system, which is important in getting a job. Recognizing the importance of practical experience, an opportunity is offered by Asian University of Bangladesh for ts potential fear graduates to get three months practical experience, which is known is as Internship Program. For the emulation of this internship program, the author of the study was placed in a bank namely, Mercantile Bank Limited. Internship Program brings a student closer to the real life situation and thereby helps to launch a career with near prior experience. 1. 4. Objectives of the Report ? Broad Objective The study was conducted to make a review and analysis of the activities of MBL which include General banking, Credit Department and Foreign Exchange Sector. This paper attempts to discuss boilersuit activities of MBL prescribed so faraway by Bangladesh Bank with a view to ensuring financial soundness of the banking sector.The purpose was also to make recommendations for improving the quality and soundness of those processes for consideration of the bank management. ? Specific Objectives The specific objectives of this study are as follows To present an over view of MBL. To know about the area of general Banking. To analysis the lend procedures maintained by MBL. To observe tether lending activities of MBL. To evaluate Lending setance of MBL. To know Foreign Exchange operations of MBL. To recommend suggestions for the successful Banking Operations of MBL. 1. 5. Methodology For teaming up the entropy & information collected through primitive & secondary cums, I have used both qualitative & quantitative method.During my study I followed well-nigh methodology to find out the fact & feature of the Bank which are wedded as follows (A) eye socket of study My project is the overall activities of MBL with reference to Saatmasjid Road Branch, Dhaka. In enunciate to carry out the research work, I focused on winning the interviews of the Personnel involved in the different departments, Manager and Senior take Employees, Business Clients and Account Holders and Particular departmental heads. (B) Sources of selective information/information I have collected my information/data from the following sources, which helped me to make this report. The source has divided by two parts. Such as, 01.Primary source 02. unoriginal source Primary sources Many of the data and informat ion were collected from my practical experience and queries from the executives and from related instruments while doing my internship at MBL. Secondary sources Secondary data are collected basically from observation & collection from Journals, Brochures, Annual Reports, Paper, Magazines, Publications, Books and others form of publications as well as websites. Different statistical tools like mean, frequence distribution, tabular and graphical presentation are used to analyze data. 1. 6. Scope of the report In this report I tried to describe overall banking performance.This report is a descriptive study which tries to focus on the theories and practices of banking activities in the context of the financial institutions in Bangladesh. It impart not focus on the comparable practices of other banks. The study has covered a curtail idea on MBL, operational scenario of three departments of Mercantile Bank Limited, Saatmasjid Road Branch. Mentioning that, operations of three departments are closely related to each departments activity as well. This lead eventually refer that how the bank help the customers securing their cash and assets, getting credit facility, re suffering loan measuring stick and banks regulatory compliance ,lending policy etc. Overall banking system for fabrication experience, my scheduled time was divided in various departments, such as Department Days General Banking 25 Clearing 15 investiture & Credit 25 Foreign Exchange Division 25 1. 7. Limitations of the study In conducting the study, some problems were created which whitethorn be termed as terminal points of the study. They are as follows The study does not cover critical analysis and implementations of comparative study in an intensive manner. During my internship program up to exit information was not published. Relevant papers and documents were not available sufficiently. The time of this study was very inadequate to obtain depth knowledge in every department. The bank officials though helpful in every respect do not have much time to explain the internal procedures. Another limitation of this report is Banks policy of not dis windup some data and information for obvious reason, which could be very much useful. This study altogether depended on official records and yearbook reports. Sufficient record, publications, facts and figures were not available, these constraints narrowed the compass of accurate analysis. This report is restricted only to Mercantile Bank Ltd. pic Chapter 02 Overview of Mercantile Bank Ltd. 2. 1. Banking sector in Bangladesh 2. 2.Historical Background of MBL 2. 3. Vision, Mission and objectives of the bank 2. 4. Core treasures 2. 5. Management aspect of MBL 2. 6. Divisional aspect of MBL 2. 7. Branch Network 2. 8 Information about the Satmasjid Road Branch. 2. 9Financial Performance of MBL 2. 10Nature of Business 2. 11. Financial products and services of MBL 2. 12 Credit Policy of MBL 2. 1. Banking sector in Bang ladesh Banking system occupies an important place in an economy. A banking institution is indispensable in modern society. It plays a liberalization of political economy policies in Bangladesh. Certainly banks can be identified by the functions they perform in the economy.Banks act as financial intermediary by transferring funds from savers to borrowers and in containing for goods and services. In 1971, Bangladesh, was East Pakistan, emerged as an independent country. In immediately nationalized the entire Banks expanding 3 Foreign Banks, sextuplet fieldize Banks were thereof formed. In 1983 a new policy was implemented allowing private sector participation in the industrialization. As a part of this process, two national commercial Banks were against denationalization and a number of Private Commercial Banks were allowed to operate. Among these Pubali Bank and Uttara Bank were the scratch to be decentralized. Particulars Number of Banks Nationalized commercial Bank 04 Privat ized commercial Bank 30 Specialize Bank 05 Foreign Bank 10 Co- Operative Bank 01 Grameen Bank 01 Total = 51 sidestep 1 Schedule Banks in Bangladesh. 2. 2. Historical Background of MBL Mercantile Bank Limited emerged as a new commercial bank to provide high-octane banking services and to contribute socio-economic development of the country. The Bank commenced its operation on June 2, 1999. The Bank provides a broad range of financial services to its customers and embodied clients. The visiting card of managers consists of eminent personalities from the dry land of commerce and industries of the country.Mercantile Bank Ltd (MBL) was incorporated in Bangladesh as a Public Company, Limited by shares under the Companies Act 1994 as on May 20, 1999 and subsequently obtained Banking Operation License from Bangladesh Bank under the Bank Companies Act 1991 and commenced commercial operation on 02 June 1999 to provide efficient banking services and to contribute socio-economic development of the country. The bank has 42 branches and 3 SME service center. It has listed in the Stock Exchanges at Dhaka and Chittagong in 2003 and 2004 respectively. The bump of MBL is committed to make it a little more different and a bit special qualitatively. This bank has new vision to fulfill and a new goal to achieve. The bank has been manned with talented and experienced personnel office equipped with most modern technology so as to make it most efficient to meet the call for of 21st century. The Head Office of the Bank situated at 61, Dilkusha commercial Area, Dhaka.The Board of Directors consists of eminent personalities from the realm of commerce and industries of the country. The Authorized corking of the Bank is Tk. 3000 zillion and the Paid -up Capital is Tk. 1798. 68 million. The Bank provides a broad range of financial services to its customers and corporate clients It has a boastful asset position comprising of Tk. 55928. 72 million in December 2008. pic 2. 3. Vision, Mission and objectives of the bank Vision Would make finest corporate citizen Mission Will become most caring, focused for equitable evolution based on diversified deployment of resources, and nevertheless would remain healthy and gainfully profitable Bank. Objectives of Mercantile BankThe objective of MBL is not only to earn profit but also to keep the social loyalty and to escort its co-operation to the persons of all level, to the backupman, industrialist specially whom are engages in establishing large scale constancy by consortium and the agro based export oriented strong suit and humbled scale industries by self inspiration. Strategic Objective ? To achieve scotch Value Added (EVA) each year. ? To be market leader in product innovation. ? To be one of the top three financial institutions in Bangladesh in terms of cost efficiency. ? To be one of the top five financial institutions in Bangladesh in terms of market share in all significant market segments t hat the bank serve. Financial Objective To achieve a deport on share toters equity of 20% or more, on average. 2. 4. Core values For the Customers providing with the caring services by gentlemans gentleman innovation in the development of new banking products and services. For the dowry toters maximizing wealth of the bank. For The Employees respecting charge dignity of individual employees devoting their energies for the progress of the bank. For the Community strengthening the corporate values and taking environment and social risks and reward into account. INVESTORS INFORMATION Investor can be informed about any information from Dhaka Stock Exchange Website and Banks website www. dsebd. org www. mblbd. com 2. 5.Management aspect of MBL The Board of Directors being at the highest level of organizational structure plays an important role on the policy formulation. The Board of Directors is not directly concern with day-to-day operation of Bank. They had delegated their ches t to the Managing Director and CEO to look after the day-to-day affairs of the Bank. The Bank is running by an excellent management team under the direct supervision of a competent Board of Directors. The Board of Directors comprises fundamental thirteen members, which is within the maximum limit as imposed by BPRD circular-12, date April 26,2003of Bangladesh Bank, headed by the Chairman.Md. Abdul Jalil, is the present Chairman of the Board. The Managing Director (MD) and CEO head management team. Mr. Dewan Mujibur Rahman is the present Managing Director and CEO of MBL. The management hierarchy of Mercantile Bank Limited is given below Board of Directors Managing Director Additional Managing Director Deputy Managing Director Senior Executive Vice President Executive Vice President Senior Vice President Vice President First Vice President Asst. Vice President First Asst. Vice President Senior Principal Officer Principal Officer Senior Officer Officer J unior Officer Assistant Officer inscribe The management hierarchy of MBL 2. 6. Divisional aspect of MBL There are total fourteen divisions in the Head Office of MBL. List of various divisions of MBL is given below Audit and Inspection division Central Accounts Division Credit Division Marketing, Development Banking Division General Services Division tender Resources Division International Division Information Technology Division seek Division Treasury Market Division Board Secretariat& Share Dept. Cost Control Dept. Law & Recovery Dept. Card Cell soma Divisions of MBL 2. 7. Branch Network MBL is one of the 3rd generation commercial Bank in private sector of Bangladesh. The Bank within stipulation lay down by the Bank Company Act 1991 and directives as original from Bangladesh Bank from time to time provide all types of commercial Banking services. It has 42 branches all over the country and also enlisted the Dhaka and Chittagong stock exchang e as publicly quoted company for its general class of share. Banks put forward Name of Region/Zone No. f Branches Dhaka 19 mercenary BANK LIMITED Gazipur 02 Chittagong 06 Sylhet 02 Moulvibazar 01 Comilla 01 Noakhali 01 Bogra 01 Rajshahi 01 Rangpur 01 Barisal 01 Khulna 01 Naogaon 02 Coxsbazar 01 Feni 01 Shariatpur 01 Total Branches 42 Table Branches of MBL pic 2. 8 Information about the Satmasjid Road Branch Address of Branch Satmasjid Road Branch House 735(old), 82/A (New) Road 8/A (New), Satmasjid Road Dhanmondi, Dhaka-1205 e-mailemailprotected com Phone 9139183, PABX 8112463-4, 9141148 Fax +88029139183 SWIFT MBLB BD DH Opening Date 1st November, 2004 as 22nd Branch of MBL. Number of Employees 22 Name of Manager Shamim Ahmed, Vice President & Head of Branch. Mercantile Bank has purchased the land and building of this Branch Last month where it operates. 2. 9 pecuniary PERFORMANCE OF MERCANTILE BANK LIMITED (BDT in million) MERCANTI LE BANK LIMITED AT A GLANCE Particulars 2005 2006 2007 2008 Authorized Capital 1,200. 00 3,000. 00 3,000. 00 3,000. 00 paying-up Capital 999. 27 1,199. 12 1,498. 90 1,798. 68 Total Assets 28,890. 48 37,159. 65 44,940. 54 55,928. 72 locates 25,087. 43 33,332. 65 39,348. 00 49,538. 36 lend & Advances 21,857. 05 26,842. 14 31,877. 86 41,993. 5 Import 33,271. 90 42,442. 80 40,380. 10 56,528. 80 Export 24,108. 57 34,592. 10 32,670. 10 43,108. 50 Remittance 679. 10 2,989. 10 3,510. 40 4,722. 90 Profit after tax revenue 386. 83 494. 22 540. 50 615. 88 No. Of Branches 28 35 41 42 No.Of Employees 663 879 945 1115 No. Of Foreign Correspondents 266 306 584 586 2. 10. Nature of Business The Bank engaged in all types of commercial Banking services within the stipulations laid down by Bank Companies Act 1991 and directives as authoritative from Bangladesh Bank from time to time. All types of Commercial Banking Services are provided by the Bank within the stipulations laid down b y Bank Companies Act. 1991 and directives as received from Bangladesh Bank from time to time.Commercial Banking is the core activity of Mercantile Bank Limited. The bank serves all type customers ranging from individuals to corporate bodies, both private and public. Mainly MBL collects deposit from the tidy sum at inflict rate and invests the equal to the people again at higher rate. And difference between pull down rate of deposit and higher rate of investment is the earnings of the Bank. MBL generally invests in industrial sector like short term, Middle term as well as long term for import of detonating device machineries, establish new industry and working capital tendings with this Bank plays a significant role in Bangladesh economy. The functions of commercial banks are now wide and varied. However the unctions of commercial banks may broadly be classified into the following three categories 1. General Banking 2. Credit and investment 3. Foreign Trade (Import, Export & R emittance) 2. 11. Financial products and services of MBL The bank has launched a number of financial products and services since its inception. Among them the followings have attained wide acceptance among the people ? Various stay put purposes ? Double clear puff stratagem (DBDS) ? Family sustentation situate (FMD) ? Mashik Sanchaya Prokalpa (MSK) Or periodical savings outline (MSS) ? Quarterly bring in accommodate fascinate ? 1. 5 Times attain Deposit Scheme ? Advance get ahead Deposit Scheme (ABDS) OrAgrim Munafa Amanat Prokolpo (AMAP). Deposit Schemes Monthly Saving Scheme The prime objective of this dodging is to incite the people to develop their habit of saving. Under this evasion, one can save a strict amount of return every month and get a lucrative amount of return after five, eight or ten years. Family Maintenance Deposit Scheme Under this scheme, one can deposit a certain amount of money for five years and in return he/she leave behind receive benefi ts on monthly basis. Benefit start right from the first month of opening an account under the scheme and continue up to five years. On maturity the principal amount testament be gainful back. Double Benefit Deposit SchemeUnder this scheme, one can deposit a certain amount of money for a six year period. After six years, the deposit amount will be doubled. Quarterly Benefit Deposit Scheme Under the Quarterly Benefit Deposit Scheme, one can deposit for a period of three years and in return depositor will receive benefits on quarterly basis. Benefit starts right from the first quarter of opening an account under the scheme and continues up to three years. On maturity the principal amount will be stipendiary back. 1. 5 Time Benefit Deposit Scheme Under the 1. 5 Times Benefit Deposit Scheme, one can deposit a certain amount of money for 42 months or three and half years. On maturity, the depositor will receive 1. 5 time of the deposited amount.Advance Benefit Deposit Scheme Under this Scheme, one can deposit a certain amount of money for two years. The depositor will receive the benefit on yearly basis. The benefit amount of first year will be received in advance at the time of deposit. On maturity, the depositor will get back the principal amount with the benefit amount of second year. ? Various Credit Schemes ? Consumers Credit Scheme (CCS) ? Car bring Scheme ? Doctors Credit Scheme ? Rural Development Scheme ? call for Financing ? Personal Loan ? lowly Loan Loan Products Consumer Credit Scheme Consumers Credit Scheme is one of the popular areas of collateral-free finance of the Bank. peck with limited income can avail of credit facility to buy family line goods including computer and other consumer durables. Small Loan Scheme This scheme has been designed especially for the businessmen who need credit facility for their business and cant provide tangible securities. Lease Finance This scheme has been designed to assist and encourage the genuine and capab le entrepreneurs and professionals for acquiring capital machineries, medical equipments, computers, vehicle and other items. Flexibility and easier terms and conditions of this scheme have attracted the potential entrepreneurs to acquire equipments of fruit and services and repay gradually from earnings on the basis of Pay as you earn.Doctors Credit Scheme Doctors Credit Scheme is designed to facilitate support to fresh medical graduates and established physicians to acquire medical equipments and set up clinics and hospitals. Rural Development Scheme Rural Development Scheme targeted for the rural people of the country to make them self-employed through financing various income-generating projects. This scheme is operated on group basis. Woman Entrepreneurs Development Scheme Women Entrepreneurs Development Scheme has been introduced to encourage women in doing business. Under this scheme, the Bank monetary resource the small and cottage industry projects sponsored by women. SM E Loan SchemeSmall and Medium Enterprise (SME) Loan Scheme has been introduced to provide financial assistance to new or experienced entrepreneurs to invest in small and medium scale industries with a comparatively low rate of interest as the same is assisted by the Bangladesh Bank with refinancing facilities. Personal Loan Scheme Personal Loan Scheme has been introduced to extend credit facilities to cater the needs of low and middle-income group for any purpose. Government and semi-government officials, employees of autonomous bodies, banks and other financial organizations, international companies, reputed private organizations and teachers of recognized public and private schools, colleges and universities are desirable for this loan. Car Loan Scheme Car Loan Scheme has been introduced to enable middle-income people to purchase Cars/SUVs/Jeeps.Government and semi-government officials, employees of autonomous bodies, banks and other financial organizations, multinational compan ies, reputed private organizations, teachers of recognized public and private universities and businessmen are eligible for this loan. Home Loan Scheme To meet the growing need of trapping for middle and lower-middle income people, MBL has introduced Home Loan Scheme. We also support the Bangladesh Banks Home Loan Refinance Scheme. The Scheme boosts up the growth of housing sector. Such loan shall be available for purchase or construction of new apartments for self-residing purpose. afield Employment Loan Scheme Overseas Employment Loan Scheme is designed to facilitate the Bangladeshi youths seeking employment aboard but who are unable to meet the expenses to reach the workplace from their own sources.The last objectives of the scheme is to promote skilled / semi-skilled manpower to different countries across the world as well as to provide support to Government Policy considering priority of this sector. By availing loan under this scheme, the active youths of middle and lower m iddle class can get overseas employment by avoiding borrowing from the illustrious class or village mohajon at a very high cost or selling their paternal properties. The scheme helps fetching foreign currency for the country as well as fulfill the Banks commitment to encourage micro-lending for poverty alleviation, improve the quality of life and thereby contribute to socio-economic development of the country. ? Foreign Exchange Services ? Export Finance ? Import Finance ? Inward Remittance ? Issue L/C ? Shipping Guarantee 2. 12. Credit Policy of MBLMBL credit policy contains the views of total macro-economic development of the county as a whole by way of providing financial support to the Trade, Commerce and Industry. Throughout its credit operation Mercantile Bank Limited goes to very possible corners of the society. They are financing large and medium scale business house and industry. At the same time they also takes care entrepreneurs through its operation of lease financing an d some micro credit, Small Loan scheme etc. As a part of its Credit Policy MBL through its credit operation maintains commitment for social welfare. The bank is coming up with a scheme where the under privileged children will be given financial support for education and self-employment.From operational aspects it is observed that as a matter of policy. i. Mercantile Bank Limited put emphasis on the customer i. e. the Man and the Business not on the Security in selecting borrowers. ii. It takes of diversity in credit portfolio. iii. It takes care maintaining proper Mix of short, medium and ling term finance in its credit portfolio familiarly they do not go for long term Finance for a period not exceeding 5 years. iv. Charging of interest is flexible depending on insisting of the proposal and the customer pic Chapter 03 General Banking Activities 3. 1 Introduction 3. 2 Account Opening 3. 3 Different Types of Scheme and Features 3. Cash Department 3. 5 Clearing House 3. 6 Issuing PO, DD, TT 3. 7 Dispatch 3. 8 Issuing suss out 3. 9 Closing of an Account 3. 1 Introduction All business concerns earn a profit through selling either a product or service. A bank does not produce any tangible product to sell but does offer a manakin of financial services to customers. General banking is the starting point of all the banking operations. It is the department, which provides day-to- day services to the customers. Everyday it receives deposits from the customers and meets their demand for cash by honoring cheque. It opens new accounts, remit funds, issue bank draft and pay orders etc.Since bank is confined to provide the service everyday, general banking is also known as retail banking. This section provides the following services Primary Information Account Opening Cheque Issuing Pay order Issuing Issuing Telegraphic Transfer (TT) Issuing Demand Draft (DD) Dispatch patch Clearing Cash department PRIMARY INFORMATION Customer gets primary information about the b anks services from this section. Then they are sent the other section under their demanding services. 3. 2 ACCOUNT initiative There are different types of account as offered by MBL i. Savings Account ii. ongoing account iii. STD (Short term deposit) iv. FDR (Fixed deposit receipt) v. MSS (Monthly saving scheme) nest egg ACCOUNT This account is basically offered those customers who want to save money at any time. Customer can save his/ her money according to his/ her annunciation. The stripped-down amount of opening charge of savings account is TK. 1,000. But it should be mentioned that when customer want to close the tax is deducted from the interest and have to pay closing charge TK. 100. If want to transfer customer have to pay TK. 200 for transfer charge. Requirements Form must be properly alter up experience a introducer who introduce the account holder ii copies of notch size photograph of account holder 1 retroflex of qualifying size photograph of candidate H ave to fill up declaration form where must mention amount of each act and annual turnover Have to fill KYC (Know Your Customer) form, Have to submit National ID Card ( for all customer) Have to submit student ID Card (for student) Have to submit trade license (for business) Deed (for partnership) Have to submit TIN number Have to submit photocopy of passport. ? CURRENT ACCOUNT Current account mainly opened for the Companies and partnership firm. The amount of this accounts operation would be big. The requirements of opening this account are given below. Requirements For separate / control stick Account Two photographs of account holder. Identity (copy of passport, National ID card, Commissioner Certificate). Joint Declaration Form (For joint a/c only). Employees Certificate (in case of service holder). One photographs of nominee. For Limited Company Copy of binding trade license. Copy of certificate of incorporation. Certified Copy of Memorandum of Associations a nd Articles of Associations. Up to Date List of Directors. Board Resolution Regarding Opening and Operations of Bank Account With Mercantile Bank Limited Branch. (Resolution should be in symmetry with the provision of Articles of Association of the Company. Copy of Certificate of Commencement of Business- for Public Limited Company Only. For compact Firms Copy of valid trade license. Copy of Partnership Deed. Letter of Account Agreement (Partnership) Duly Signed by all The Partners in Their Personal Capacity. Letter of Partnership Duly Signed by All the Partners in Their Personal Capacity. Club / societies account Two photographs of each account holder. Board Resolution for Opening A/C punctually certified by President/ Secretary. List of Existing Managing Committee. Registration (if any). safety Stamp. Permission letter from Bureau of N. G. O. (In case of N. G. O. A/C). ? SHORT border DEPOSIT(STD) This account is basically offered those customers who want to save money/ make transaction of a big amount at any time. The businessmen are mainly the customer of this account who makes huge amount transaction in a month.Customer can save his/ her money according to his/ her declaration. The negligible amount of opening charge of savings account is TK. 100,000. But it should be mentioned that when customer want to close, the tax is deducted from the interest and have to pay closing charge TK. 100. If want to transfer customer have to pay TK. 200 for transfer charge. Requirements Form must be properly fill up up Have a introducer who introduce the account holder Two copies of passport size photograph of account holder One copy of passport size photograph of nominee Have to fill up declaration form where must mention amount of each transaction and annual turnover Have to fill KYC (Know Your Customer) form, Have to submit National ID Card ( for all customer) Have to submit student ID Card (for student) Have to submit trade license (for busi ness) Deed (for partnership) Have to submit TIN number Have to submit photocopy of passport 3. 3Different Types of Scheme and Features ? MASHIK SHANCHOY connive The money is fixed up to a certain months or year. Bank gives them interest against this money. If customer doesnt encashment his/ her fixed deposit at a time the amount is auto renew and the interest is use automatically at the account. arrive TK. 500 TK. 1000 TK. 1500 TK. 2500 TK. 000 long time 5 years 38250 76500 114750 191250 382500 8 years 71500 143000 214500 357500 715000 10 years 100000 200000 300000 500000 meg ? DOUBLE BENEFIT SCHEME Objectives ? Give maximum benefit. ? athletic supporter in meeting specific needs like education, marriage etc. Deposit becomes double in seven and half years. Mode Tenure of the deposit is 7. 5 years. Amount of DepositPeriod Amount Payable 1, 00,000 7. 5 Years 2, 00,000 other Features ? The Minimum amount of deposit is BDT 50,000. 00(Fifty thousand) or its multiples. ? All taxes/ responsibleness/ bill and /or any other surcharges briefly in force or that may be imposed by the Government of Bangladesh (GOB) from time to time will be deducted/ recovered from the deposit account under this scheme. ? In case of premature encashment interest will be paid on Saving A/C dictate. ? Loan may be minded(p) up to maximum 80% of the deposited amount but minimum tenet amount must be BDT 20,000. 00. Loan processing tippytoe be realized BDT 50. 00 only and usual stamp costs also be realized. For example sign amount is TK. 1000,000 The bank give interest TK. 100,000 against TK. 100,000 deposit Customer gets TK. 190,000 (200,000-100,emailprotected% tax = TK. 190,000) Requirements Form must be properly filled up, One copy of passport size photograph of account holder, One copy of passport size photograph of nominee, ? ADVANCED DEPOSIT SCHEME Objectives ? Get Extra benefit from Minimum Deposit. Mode Maintained for a period of 2 (Two) years. Minimum deposit a mount 1,00,000(One Lac) only. raise Rate Per BDT One Lac BDT 1 Lac (One Lac) , Tk. 9,500. 00 for first year Tk. ,09,250. 00 for second year. Other Features o All taxes/duty/levy and/or any other surcharges presently in force or that may be imposed by the government of Bangladesh from time to time in Deposit Accounts will also be applicable for the account for the account opened under this scheme and such taxes/duty/levy and/or any other surcharges shall be deducted/ recovered from the deposit account under this schemes. o Loan may be granted up to maximum 70% of deposit. ? Times Benefit Deposit Scheme Under the 1. 5 Times Benefit Deposit Scheme a deposit of minimum BDT 50,000. 00 (fifty thousand) or its multiples will be received for a period of 4. 2 years.On maturity, 1. 5 time of the deposited amount will be paid back to the account holder as per example given below Example Initial Deposit (BDT)50,000. 001, 00,000. 005, 00,000. 00 Return after 4. 2 years (BDT) 75,000. 00150000 . 00 750000. 00 Other Features ? All taxes/duty/levy and /or any other surcharges presently in force or that may be imposed by the Government of Bangladesh (GOB) from time to time will be deducted/ recovered from the deposit account under this scheme. ? In case of premature encashment interest will be paid on Saving A/C Rate. However, no interest shall be paid if premature encashment take place before expiry of 1 (one) year. In the event of death of the depositor before the maturity, the deposit account may be encased (premature) as per rule or may be continued up to maturity on written approach by the nominee(s). ? Loan may be granted up to maximum 80% of the deposited amount but minimum principle amount must be BDT 20,000. 00. ? Loan processing fee be realized BDT 50. 00 only and usual stamp costs also be realized. ? FAMILY MAINTENANCE SCHEME Objectives ? Help the retired persons for investing their retirement benefits. ? Create investment opportunities for Non-Resident Bangladesh i. ? Explore investment opportunities for school, college, university etc. ? Give investment opportunities for Trust Foundation etc. Mode Deposit a fixed amount of money for 05 (Five) years.Depositor will get a certain sum of money in each month equilibrize wheel to his/her deposit during the entire tenure. Benefits Tenure of deposit is 05 (Five) years. Minimum amount of required deposit is TK. 50,000. 00 or its multiple DepositMonthly Benefit (Amount in TK. ) 1, 00,000800 2, 00,0001, 600 3, 00,0002, 400 Other Features o The Minimum amount of deposit is BDT 50,000. 00 (Fifty thousand) or its multiples. o All taxes/duty/levy and /or any other surcharges persently in force or that may be imposed by the Government of Bangladesh (GOB) from time to time will be deducted/ recovered from the deposit account under this scheme. o In case of premature encashment interest will be paid on Saving A/C Rate. A saving account will be needed to be maintained to receive quarterly benefit payment. o Loan may be granted up to maximum 80% of the forced encashment value on the date of loan processing. During the period of continuation of loan, monthly benefits of FMD account will be credited only to loan account. o Loan processing fee be realized BDT 50. 00 only and stamp costs also be realized. ? QUARTERLY BENEFIT SCHEME The Quarterly Benefit Deposit Scheme will be maintained for a period of 3 (three) years and the minimum amount of deposit is BDT 50,000. 00 (fifty thousand) or its multiples. Interest will be paid on quarterly basis as per example given below. On maturity the principal amount will be paid back.Initial Deposit (BDT)TermQuarterly Benefit Payable (BDT) 50,000 3 Years 1,200 100,000 3 Years 2,400 200,000 3 Years 3,600 Other Features ? All taxes/duty/levy and /or any other surcharges presently in force or that may be imposed by the Government of Bangladesh (GOB) from time to time will be deducted/ recovered from the deposit account under this scheme. ? Loan may be gra nted up to maximum 80% of the forced encashment value on the date of loan processing. During the period of continuation of loan, quarterly benefits will be credited only to loan account. ? Loan processing fee be realized BDT 50. 00 only and usual stamp costs also be realized. FIXED DEPOSITThe money is fixed up to a certain months or year. Bank gives them interest against this money. If customer doesnt encashment his/ her fixed deposit at a time the amount is auto renewed and the interest is applied automatically at the account. Amount Months/ Year Interest TK. 10,000 1 month/ 2 months/ 3 months 8. 5% TK. 10,000 3 months 11. 50% o Form must be properly filled up One copy of passport size photograph of account holder o One copy of passport size photograph of nominee 3. 4 Cash Department Opening of Cash Beginning balance is used to start daily transaction & maintenance of Receipt and compensation Registers while receiving & paying different amount of cash. Previously issued cheque will be paid if issued 6 months before. Advance issued cheque cannot be made payment even one day before. Evening Banking Can only receive cash. No payment can be made omit some special cases. Issue Note Notes issued by the bank & veritable by the people, fresh notes. Non-issue Note Notes cannot be issued for public like torn, mutilated notes Soiled Notes etc. 3. 5 Clearing House Functions of Clearing Clearing stands for mutual settlement of claims made in among member banks at an retaind time and place in respect of instruments drawn on each other. Clearing house is an arrangement under which member banks agree to meet, through their representative, at the appointed time and place to deliver instruments drawn on them. The net amount payable or receivable as the case may be, is settled through an account kept with the dogmatic bank (Bangladesh Bank). pic Types of clearing Outward clearing Inward clearing Types of returns Outward return Inward return Clearing (Outward) pr ocess grade First tier Collection Branch Second tier Principal Branch/local office Third tier Clearing house (Bangladesh Bank) Clearing (Inward) process tierFirst tier Clearing house (Bangladesh Bank) Second tier Principal Branch/ Main Branch Third tier Paying Branch 3. 6 ISSUEING PO, DD, TT ? Pay Order This is one type of security. This can not be transferred. Anyone can draw a pay order. The pay order can be encashment from any bank. Amount Commission Vat 110,000 25 4 10,000 1,000,000 50 8 100,000