AIS in NCC Bank

Chapter
Bismillahir Rahmanir Rahim
Internship Report On
Over all Banking Operation System of NCCBL Emphasis on Application of Accounting & Information System
An Internship report on Overall Banking operation System of NCCBL
NCCBL
Chapter
EXEC !I"E S ##AR$

Banking system of Bangla%esh has gone thro&gh three phases of %evelopment' Nationali(ation) *rivati(ation) an% Lastly +inan,ial Se,tor Reform) National Cre%it -Commer,e Bank Limite% .NCCBL/ starte% its 0o&rney in the finan,ial se,tor of the ,o&ntry as an investment ,ompany 1a,k in 12345 !he ,ompany operate% &p to 1222 6ith 17 1ran,hes an% thereafter 6ith the permission of the Central Bank ,onverte% in to a f&ll fle%ge% s,he%&le% private ,ommer,ial 1ank in #ay) 1228 6ith pai% &p ,apital !k5 825 99 ,ore to serve the nation from a 1roa%er platform5 !he 6hole 6orking pro,ess of NCCBL is %ivi%e% into 8 se,tions' .i/ :eneral Banking se,tion) .ii/ Cre%it Se,tion) .iii/ +oreign E;,hange Se,tion !his report has 1een presente% 1ase% on o1servation from NCCBL) #irp&r Bran,h) 6hi,h is a Non A&thori(e% <ealer .NON A</ Bran,h5 So in the report Resear,her have trie% to ,on,entrate on loan an% a%van,es) lo,al LC an% other part of the general 1anking5 NCCBL has offi,e a&tomation like online 1anking .Only for three 1ran,hes/) o6n Soft6are #ICROBAN=ER5 !ho&gh foreign remittan,e is one of the ma0or parts of Bank>s in,ome 1&t their loan an% a%van,e an% other loan s,hemes play a vital role in s&,,ess of NCCBL5 NCCBL has offere% to their ,lients %eposit s,heme) loan s,heme) an% remittan,e servi,e5 In %eposit s,heme they have offere% +<R) SSS an% S+<S5 In %eposit s,heme they have al6ays try to offer ,ompetitive interest to the ,lients5 In loan s,heme they have spe,ial loan s,heme an% general loan an% a%van,e5 In spe,ial loan s,heme 1ank have offere% ,ons&mer s,heme) lease finan,ing an% mi,ro ,re%it finan,ing) Spe,ial ho&sing loan5 In general loan an% a%van,e NCCBL has offere% general loan se,tor) e;port) e;port an% import5 :eneral se,tor ,ontains ,onventional ,ash ,re%it) Se,&re% over %raft an% reg&lar servi,es5 In e;port an% import they have offere% LI#) L!R) Lo,al <o,&mentary Bill for *&r,hase .L<B*/) +oreign <o,&mentary Bill +or *&r,hase .+<B*5 /5 NCCBL also offere% #ONE$:RA# servi,e to their ,lients5 NCCBL is only mem1er of #ONE$ :RA# fa,ility in Bangla%esh5 +rom 1228 to 2994 it>s 1een t6elve long years of 0o&rney for NCCBL5 !hey have ma%e their strong initiatives in 1anking se,tor5 !hey ,an one of the 1est private 1anks In Bangla%esh) if they 6ill mat,h the e;pe,tation of their ,lients) thro&gh their 1est 1anking servi,e5
An Internship report on Overall Banking operation System of NCCBL NCCBL
Chapter
CON!EN!S
NCCBL
Chapter
NCCBL
Chapter
Intro uction
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Intro uction Statement of the %ro&lem O&(ectives of the Stu y Scope of the Stu y +uration of the Stu y Limitations of the Stu y
NCCBL
Chapter "#" IN-RO+.C-ION
Bank as the finan,ial servi,es in%&stry is approa,hing f&ll histori,al ,y,le5 Originally the 1anking system operate% as f&ll servi,e in%&stry) performing %ire,tly or in%ire,tly all finan,ial servi,es5 Banks are %ire,t agents to ,reate opport&nities for %evelopment in a ,o&ntry an% also provi%e large s,ale of employment opport&nities5 Banks mo1ili(e savings an% make it a%van,es to investors an% 1y this pro,ess make profit5 As they %eal 6ith p&1li, money) their form of 1&siness is %ifferent from others5 Banks m&st ref&n% p&1li,s money 6hen they %eman% - @&alityf&l servi,es either it makes or not5 So) overall operation system of 1ank sho&l% 1e eval&ate% ,aref&lly5 Banking se,tor is e;pan%ing its han% in %ifferent finan,ial events every %ay5 At the same time the 1anking system is 1e,oming faster) easier an% the 1anking area is 1e,oming 6i%er5 As the %eman% for 1etter servi,e in,reases %ay 1y %ay) they are ,oming 6ith %ifferent innovative i%eas - pro%&,ts5 In or%er to s&rvive in the ,ompetitive fiel% of the 1anking se,tor) all 1anking organi(ations are looking for 1etter servi,e opport&nities to provi%e their fello6 ,lients5 As a res&lt) it has 1e,ome essential for every person to have some i%ea on the 1ank an% 1anking system5 !he eval&ation of 1anking system is a ,omple; pro,ess involving intera,tions 1et6een the environment) internal operations) an% e;ternal a,tivities5 !he &ltimate o10e,tive of management is to ma;imi(e the val&e of 1ank>s e@&ity shares 1y attaining the optimal mi; of ret&rns an% risks5 In this respe,t 1ank management nee%s to %evelop a ,omprehensive plan in or%er to i%entify o10e,tives) goals) 1&%gets an% strategies that 6ill 1e ,onsistent 6ith the ma;imi(ation of share val&es5 !he primary metho% of eval&ating internal system is 1y analy(ing general 1anking system) loans an% a%van,es system) foreign e;,hange system5 E;ternal system is 1est meas&re% 1y eval&ating the 1anks market share) reg&latory ,omplian,e an% p&1li, ,onfi%en,e5 Be,a&se of in,reasing innovation an% %ereg&lation in the finan,ial servi,es in%&stry) internal an% e;ternal ,ompetitiveness is 1e,ome m&,h more important than in the past5
Chapter
In resear,her>s thesis paper) resear,her has sele,te% one private ,ommer,ial 1ank to eval&ate the 1anking system in o&r 1anking in%&stry5 !his is NCC Bank L!<5 !his 1ank has a great impa,t in o&r e,onomy5 NCC Bank L!< has 1een operating their servi,es from 1234 as a leasing ,ompany an% from 1228 as a Bank in o&r ,o&ntry thro&gh its 17 1ran,hes5 !o eval&ate 1anking system of NCCBL) it 6ill 1e helpf&l to have an insight into the generali(e% ,hara,teristi,s feat&res of this 1ank5 "#$ S-A-E/EN- O0 -1E %ROBLE/ All kin%s of Bank are generally s&ppose% to 1e esta1lishe% to earn profit an% help e,onomi, an% finan,ial a,tivities in a ,o&ntry5 In s&,h a ,onte;t) the main 1&siness of 1anking is to provi%e ,re%it to the 1orro6ers an% take %eposit from ,&stomers5 Besi%e 1anks are %ire,t agents to ,reate opport&nities for %evelopment in a ,o&ntry an% also provi%e large s,ale of employment opport&nities5 Banks are the most important f&n,tionary of finan,ial system of a ,o&ntry an% NCC Bank L!< is one of them5 It plays a %ynami, role in the e,onomi, %evelopment of a nation thro&gh of saving an% allo,ation of ,re%it to in%&stries se,tors5 It %iverts an% employs the f&n%s in s&,h aven&es 6hi,h are aime% to %evelop a ,o&ntry>s e,onomy an% a%%s to national 6ealth5 Capital str&,t&re %e,ision is the se,on% ma0or area in finan,ial management5 !he finan,ing %e,ision involves the ,hoi,e of an appropriate mi; of %ifferent so&r,es of Bank>s f&n% are the :overnment) Bangla%esh Bank) Commer,ial Banks) lo,alB overseas +inan,ial Instit&tions an% S&ppliers 5 !he main o10e,tive of NCC Bank L!< is to a,,elerate the set &p of ne6 pro0e,ts an% 1alan,ing) mo%erni(ation) repla,ement) an% e;pansion of e;isting &nits an% finan,ing in profita1le ,on,ern5 !here have ho6ever) 1een large %&es over of loans - interest5 In,ase of 1ank generally it is meas&re% in terms of general 1anking system) loans - a%van,es system) foreign e;,hange system5 Every firm m&st in the long r&n) 1e profita1le if it is to servi,e5 Overall System is ne,essary of investors) len%ers are to ,ontin&e s&pport the 1&siness5
NCCBL
Chapter
"#' OB2EC-I3ES O0 -1E S-.+4 a5# %rimary O&(ective6 Besi%e the primary o10e,tive there are some other o10e,tives) 6hi,h are e@&ally importantC !he prime o10e,tive of the st&%y is to e;amine the 1anking system - performan,e of NCC Bank L!<5 Do6ever) the spe,ifi, o10e,tives are the follo6ingsC !o get real life e;perien,e from the organi(ation) 6hi,h 6ill help in the f&t&re 0o1 fiel%5 !o get an overall i%ea a1o&t the #er,antile Bank Lt%5 !o revie6 the ,ons&mer 1anking servi,es an% operating system of NCC Bank L!<5 !o meas&re the performan,e of NCC Bank L!<5 %&ring 2999'299?5 !o eval&ate the fa,tors affe,ting performan,e of the 1ank5 !o s&ggest the 1etter 6ays of enhan,ing the performan,e of the 1ank5 "#)SCO%E O0 -1E S-.+4 !he title overall 1anking operation system of NCC Bank L!< %enotes the s,ope of the st&%y5 !his report is stri,tly ,onfine% NCCBL>s operation in Bangla%esh5 !he report is 1ase% on the o1servation an% st&%ies %&ring resear,her>s internship perio% at #irp&r Bran,h5 !he st&%y ,overs the 1ank>s f&n,tional areas s&,h as general 1anking) loans - a%van,es) foreign e;,hange system of NCCBL5 !his 6ill in%i,ate as to e;tent to 6hi,h the servi,ing ,apa,ity of the ,&stomers an% so,io' e,onomi, %evelopment of the ,o&ntry 1y proper &tili(ation of ,apital5 !his st&%y ,on%&,t in hea% offi,e - 1ran,h from 6hi,h vario&s types of relevant %ata is ,olle,te% that 6ill fo,&s the 6hole ,&lt&re of the 1ank5 !he analysis of %ata ,overs 2999'299? fis,al year5 #oreover the pro1lems in the operational system) an% overall i%ea a1o&t NCC Bank Lt%5 et, are also ,overe% in the st&%y5
NCCBL
Chapter
"#* +.RA-ION O0 -1E S-.+4 !his st&%y ,overs from 29 Novem1er to 12 Ean&ary 29945 B&t the %ata are sele,te% from 2999 to 299? fis,al year for resear,h 6ork 1e,a&se of ins&ffi,ient information a1o&t 29945 "#, /E-1O+OLO74 O0 -1E S-.+4 !he st&%y is 1ase% on finan,ial an% non'finan,ial %ata an% opinions of ,on,erne% e;e,&tives 6orking at #irp&r 1ran,h - hea% offi,e of NCCBL5 !here are vario&s metho%s of ,on%&,ting s&,h st&%ies5 !hese are li1rary metho%) intervie6 metho%) o1servation metho% et,5 !6o approa,hes have 1een mainly &se% in this report5 a/ Conceptual ApproachC A theoreti,al se,tion is given in this report .i5e5 the organi(ation part/ to give an insight to the vario&s information ,on,erning the operational f&n,tion5 It is given in relevan,e 6ith the organi(ation in ,onte;t i5e5 NCCBL5 A 1a,kgro&n% of NCCBL is given to fa,ilitate the &n%erstan%ing of this report5 Every single portion is %is,&sse% in or%er to &n%erstan% the empiri,al se,tion5 1/ Empirical Approach: !his refers to the information that has 1een %ire,tly ,olle,te% an% interprete% from the s&rvey on NCCBL5 !he report is prepare% 1y intervie6ing the offi,ials of NCCBL5 !he reports of NCCBL an% %o,&ments are also 1een st&%ie% to %o the report5 "#,#" SO.RCES O0 +A-A In preparing this report) 1oth primary an% se,on%ary so&r,es of information have 1een &se%5 8A5 %rimary Sources of +ata Fhen %ata are ,olle,te% thro&gh %ire,t sear,hing in the fiel% then it is ,alle% primary so&r,e of %ata5 <ata 6ere ,olle,te% from primary so&r,es &sing the follo6ing te,hni@&esC a5# O&servation /etho : O1servation metho% may 1e %efine% as the systemati, 6at,hing of fa,ts an% events o,,&rring in the fiel% of st&%y5 !he resear,her has o1serve% all the a,tivities of general 1anking servi,es5 !hro&gh this metho%) he has ,olle,te% some %ata a1o&t general 1anking servi,es5 &5# Intervie9 metho 6 Intervie6 is a fa,e'to'fa,e sit&ation 6here one person .the intervie6er/) asks a person 1eing intervie6e% .the respon%ent/) @&estions to o1tain
Chapter
19
ans6er pertinent to resear,h pro1lems5 !o get the real information an% %ata a1o&t general 1anking servi,es) resear,her aske% some respon%ents an% ,lients %ire,tly5 %rimary Sources are6 Asking the respe,tive offi,ersG <ire,t ,omm&ni,ation 6ith the ,lientsG E;pos&re on %ifferent %esk of the 1ankG +ile st&%y5 8B5 Secon ary Sources of +ata !he se,on%ary %ata are ,olle,te% from Internet) %ifferent arti,le p&1lishe% in the 0o&rnals an% maga(ines5 Secon ary sources are6 Relevant 1ooks) Ne6spaper) Eo&rnals et,5 Ann&al Reports of #er,antile Bank Lt%5 G *erio%i,als p&1lishe% 1y the Bangla%esh BankG <ifferent seminar papers on performan,e eval&ation of servi,e oriente% 1&sinessG <ifferent p&1li,ations regar%ing 1anking f&n,tions5 "#,#$ ANAL4SIS O0 +A-A !he st&%y ,overs the sele,te% perio% of five years i5e5 2999'299?5 !otal %eposit) %ifferent a%van,e) remittan,e) foreign e;,hange et,5 6ere sele,te% to meas&re their gro6th - position5 In this st&%y the main analyti,al tool is overall operation system5 !he ne,essary %ata are taken an% analy(e% in a systemati, manner5 !he follo6ing analysis has 1een %one to a,hieve the o10e,tives of overall operation system st&%yC :eneral 1anking system of the 1ank in last five years is analy(e% thro&gh the %eposit) lo,al remittan,e et, - their gro6th5 Loans an% A%van,es are analy(e% 1asing the position of %ifferent types of loans5 +oreign e;,hange system eval&ate% thro&gh the LI#) L!R) - foreign remittan,e et,5
NCCBL
Chapter
11
"#: RE3IE; O0 RELA-E+ LI-ERA-.RE !he analysis of the performan,e of 1anking in%&stry is of ,r&,ial importan,e5 <ifferent metho%ologies ,an 1e &n%er taken to given a insight into the performan,e of 1anks5 !he st&%ies relate% to the eval&ation of the performan,e of 1anks are limite%5 In this ,hapter an attempte% has 1een ma%e to fo,&s on %ifferent st&%ies in the 1anking se,tor5 Bhattachar(ee an Shaha 8"<=<5 eval&ate% the performan,e of *CBs in Bangla%esh5 !he referen,e perio% of the st&%y is 12A8'123A5 *erforman,e of the *CBs has 1een meas&re% on the 1asis of so,ial profita1ility meas&res vi( general 1anking 1&siness in,l&%ing net profit) so,ial profita1ility meas&res5 In this st&%y they reveal that almost all the performan,e meas&res sho6e% &p6ar% tren%s5 !here 6ere ho6ever inter'1ank an% intra'1ank variations in performan,e meas&res5 Da% all the 1anks 1een s&,,essf&l in attaining the level of performan,e of the 1ank having highest level of performan,e this ,ol% have m&,h favora1le impa,t on 1oth %eposit mo1ili(ation an% profita1ility5 It is 1elieve% that strengthening the system of inter 1ank ,ooperation in respe,t of e;,hange of information on a,hievement levels may 1ring f&rther favora1le effe,t performan,e5 Cho9 hury An9ar an /asum .1223/ eval&ate% the performan,e of foreign 1anks vis'H'vis other private ,ommer,ial 1anks operating Bangla%esh5 !he government of Bangla%esh has allo6e% a goo% n&m1er of foreign 1anks to operate in Bangla%esh5 !he :ovt5 has re,ently taken a spe,ial program for long term in%&strial finan,ing involving the foreign 1anks5 !his is for the first time in Bangla%esh that spe,ial f&n% is going to 1e operate% 1anks other than spe,iali(e% 1anks an% nationali(e% ,ommer,ial 1anks5 !his st&%y fin%s that almost all the performan,e meas&res sho6 goo% performan,e on the part of foreign 1anks5 !hese fin%ings s&ggest that the :overnment %e,ision to involve foreign 1anks in a greater 6ay is right one an% it 6ill have a positive impa,t on the e,onomy of the ,o&ntry5 Bayes 8"<=*56 eval&ation Bangla%esh Banking :ro6th) Str&,t&re an% performan,e5 In this st&%y he fin%s that 1efore li1eration) ,ommer,ial 1anks 6ere in the private se,tor 6ith the o10e,tives of meeting the nee%s of a private enterprise e,onomy5 After li1eration the 1anks 6ere pla,e% &n%er so,ial o6nership an% ,ontrol to f&lfill 1oth ,ommer,ial an% so,ial o10e,tives5 *CBs em1arke% &pon e;pan%ing 1ran,hes in 1oth r&ral &r1an areas mo1ili(ing the &p tappe% saving of
NCCBL
Chapter
12
the r&ral an% semi'&r1an areas an% provi%ing ,re%it to priority se,tors5 !here 6as an improvement in the gro6th of 1ank %eposits after li1eration) 1ank %eposits gre6 at a ,ompo&n% rate of 29I %&ring 12A8'12325 !he a%van,e %eposit ratio 6as &nfavora1le for r&ral areas %&ring the initial years after li1eration) implying a transfer of reso&r,es from r&ral to &r1an areas5 !he sit&ation ho6ever has 1een improving over the years5 Net profit to 1an%s altho&gh varie% 1et6een years) 1&t remaine% positive in all the years5 Cho huri an Chou hry 8"<<*5 eval&ate% of performan,e of private ,ommer,ial 1anks vis'H'vis 1anking se,tor5 !he res&lts of %enationali(ation an% privati(ation in the 1anking se,tor of Bangla%esh so far %o not in%i,ate ,lear',&t improvement in the effi,ien,y of the 1anking system5 !he effi,ien,y of the three %enationali(e% 1anks %eteriorate% in all respe,ts %&ring last 19 years5 !he performan,e of *CBs tho&gh at present 1etter only in operating aspe,ts ,ompare% to NCBs 1&t lagging in allo,ative aspe,ts in terns of p&tting less emphasis in the so,ially more %esira1le se,tors5 !he privati(ation an% %enationali(ation pro,ess is also in%&,ing NCBs to gra%&ally 6ith%ra6 from so,ially %esira1le se,tors in or%er to improve their profita1ility5 Bahar 8"<<'5 analy(e% on the 1ehavior of 1ank %eposits in Bangla%esh some empiri,al fin%ing5 In his st&%y he attempte% to analy(e the gro6th of 1ank %eposits an% their %eterminate in Bangla%esh %&ring 12A?'12225 Bank %eposits are positively infl&en,e% 1y gro6th in in,ome) real rate of interest on %eposits an% negatively to the e;pe,te% rate of inflation5 !he a&thor tries to e;plain .i/ the gro6th of 1ank %eposits in Bangla%esh in the light of some rates an% ratio .ii/ the prin,ipal %eterminates of 1ank %eposits an% .iii/ estimates an% e;plains the alternative e@&ations for 1ank %eposits for r&ral an% &r1an 1ank 1ran,hes5 . in an >ua ir 8"<<=5 eval&ate% the ,omparative st&%y of performan,e of nationali(ation an% %enationali(ation of ,ommer,ial 1anks in Bangla%esh5 Fith the ,hange of e,onomi, poli,y of :overnment an% also the ,hange of :overnment of Bangla%esh in 12A4 JSo,ialism> one of the state prin,iples 6as repla,e% 1y JSo,ial Felfare> an% private se,tor on,e again gaine% moment&m5 As a res&lt the ttara Bank an% *&1ali 1ank 6ere %enationali(e% in 1238 an% in 1237 respe,tively an%
Chapter
18
signifi,ant n&m1ers of private ,ommer,ial 1anks 6ere also esta1lishe%5 In the vie6 of the fa,t this paper %eals 6ith ,omparative progress of attra 1ank lt% an% p&1ali 1ank5 <&ring the perio% after nationali(ation an% %enationali(ation5 It is evi%ent form the st&%y that the sample 1anks sho6 1etter performan,e %&ring the perio% after %enationali(ation in terms of e@&ity position %eposit mo1ili(ation) loan an% a%van,es an% investment of f&n% 1oth in nominal an% real ,ompare% to the perio% after nationali(ation in respe,t of profita1ility) li@&i%ity an% 1ran,h e;pansion ,ompare% to the perio% after %enationali(ation5 Saha? Rahman an Baner(ee 8"<<*5 eval&ate% the ,ost effi,ien,y in 1anks5 !he profita1ility of 1oth NCBs an% *CBs has %e,line% %&ring the last fe6 years5 In this ,onte;t a st&%y of ,ost effi,ien,y in Banks ass&mes greater signifi,an,e5 !o f&lfill this %eman% the a&thors sho6e% the relationship 1et6een ,osts an% some f&n,tional in%i,ators vi( %eposit) f&n%s a,tivities) total in,ome et,) of vario&s 1anks an% the fa,tors infl&en,ing the in,reaseB%e,rease there of in or%er to %etermine the level of ,ost effi,ien,y e;iting amongst 1anks5 !he a&thor fo&n% that *CBs 6ere more ,ost effi,ient as ,ompare% to NCBs on an average in respe,t of pro%&,tivity an% manpo6er &tili(ation5 B&t the lo6er level of ,ost effi,ien,y in ,ase of NCBs might 1e %&e to the vario&s %ire,te% ,re%it programs an% so,ial 1anking impose% on them5 !he a&thors ,ommente% that ,ost management pra,ti,es presently 1eing follo6e% 6ere yet to em1ra,e am appropriate ,ost ,ontrol me,hanism 6hi,h 6o&l% fa,ilitate a great %eal of ,ost effi,ien,y in 1anks5 Shah khan .2999/ eval&ate% the effi,ien,y of some ,ommer,ial 1anks in Bangla%esh5 !his st&%y ,onsi%ere% t6enty ,ommer,ial 1anks sele,te% form three gro&psC nationali(e%) private .%omesti,/ an% foreign 1anks5 !he prin,ipal ,omponent analysis a spe,ial ,ase of fa,tor analysis is a%opte% to meas&re the effi,ien,y of these 1anks 1ase% on seven pro%&,tivity in%i,ators5 !he analysis reveals that o&t of 29 1anks) only A of them are effi,ient ones) 7 are foreign 1anks an% only one is a %omesti, private 1ank5 None of the nationali(e% ,ommer,ial 1anks is fo&n% to 1e effi,ien,y5 !h&s the st&%y s&pports the general notion that foreign 1anks are effi,ient 6hile nationali(e% ones are not5 !he revie6s of the previo&s st&%ies s&ggest that the 1anking system of Bangla%esh 1as 1een fa,ing some pro1lems5 !hey have i%entifie% many potential areas of
NCCBL
Chapter
1?
%evelopment for the 1anking system of Bangla%esh if the e;isting pro1lems are a%%ress5 Cookson) 0 .1232/ in his seminar paper K*ro%&,tivity in !he Banking In%&stries In Bangla%eshL mentione% that K!he o&tp&t of a 1ank is to %ivi%e% into three ,omponents i5 e5 %eposit servi,e) loan servi,e an% other finan,ial servi,es for 6hi,h a fee is ,harge%5 L A,,or%ing to him pro%&,tivity is o1taine% 1y %ivi%ing this o&tp&t 1y the total employee5 De also fo&n% that) pro%&,tivity in private 1anking is m&,h higher than in the NCBs5 !his is partly %&e to the very high n&m1er of NCB employees an% partly %&e to the lo6er o&tp&ts in loan servi,es .from high 1a% %e1t ,osts/ an% the lo6er earnings of fee in,ome5 Bahar? /# 1# 8"<=<5 in his seminar paper name% KAn Eval&ation of 1anks in Bangla%eshC An E;ploratory Approa,hL mentione% that pro%&,tivity sho&l% 1e 0&%ge% from @&antitative as 6ell as @&alitative aspe,ts of performan,e of %ifferent 1anks from the follo6ing vie6 pointsC a/ 1/ ,/ %/ e/ So,ial 1anking :ro6th *rofita1ility *ro%&,tivity C&stomer>s servi,e
"#= LI/I-A-IONS O0 -1E S-.+46
<espite all o&t ,o'or%ination from the 1ank offi,ials) resear,her fa,e% some limitation5 !he nota1le some of these are as &n%erC Learning all the 1anking f&n,tions 6ithin 0&st 29 %ays 6as really to&gh5 Another limitation of this report is Bank>s poli,y of not %is,losing some %ata an% information for o1vio&s reason) 6hi,h ,o&l% 1e very m&,h &sef&l5 !he Bank a&thority 6as very 1&sy) so they ,o&l% not give me eno&gh time for %is,&ssion a1o&t vario&s pro1lems5 In ,ase of performan,e analysis se,on%ary %ata are &se%5 Only five years a,,o&nting %ata are ,onsi%ere% for finan,ial analysis !his st&%y ,ompletely %epen%e% on offi,ial re,or%s an% ann&al reports5
Chapter
14
!o prepare an analyti,al report nee% finan,ial assistan,e5 !he finan,ial assistan,e provi%e% 1y the %epartment is ins&ffi,ient5 In perspe,tive of la,k s&ffi,ient money) vario&s types of analysis %i% not 1e,ome possi1le5 Another pro1lem is that ,omm&ni,ation gap5 !he %epartment sho&l% 1e ,on%&,te% 6ith the ,ompany at least one month ago Resear,her>s internship 6as at #irp&r Bran,h5 B&t for 1etter interpretation resear,her ha% to ,olle,t some information from the hea% offi,e5 !his is resear,her>s first e;perien,e on 0o1) so there may arise some fa&lts tho&gh I have trie% my level 1est5
NCCBL
Chapter
17
NCCBL
Chapter
1A
Conceptual 0rame9ork of the Stu y
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
$#" $#$ $#' $#) $#*
Bank Banking Information System Accounting System -erms & Concept use in -his Stu y
NCCBL
Chapter
13
$#" BAN@ :enerally 1y the 6or% KBankL 6e ,an easily &n%erstan% that the finan,ial instit&tion %eals 6ith money5 B&t there are %ifferent types of 1anks likeG Central Banks) Commer,ial Banks) Savings Banks) Investment Banks) In%&strial Banks) Co'operative Banks et,5 B&t 6hen 6e &se the term KBankL 6itho&t any prefi;) or restri,tion) it refers to the MCommer,ial 1anksM5 Commer,ial 1anks are the primary ,ontri1&tors to the e,onomy of a ,o&ntry5 So 6e ,an say Commer,ial 1anks are a profit'making instit&tion that ,olle,ts the %eposits from the s&rpl&s &nit of the so,iety an% then len% the %eposits ,olle,te% to the %efi,it &nit of the so,iety5 So the people of the so,iety an% the government are very m&,h %epen%ent on the ,ommer,ial 1anks as the finan,ial interme%iary5 As 1anks are profit' earning ,on,ernG they ,olle,t %eposit at the lo6est possi1le ,ost an% provi%e loans an% a%van,es at higher ,ost5 !he %ifferen,es 1et6een t6o are the profit for them5 $#$ BAN@IN7 Simply the a,tivities of 1ank refer 1anking5 It in,l&%es a,,o&nt opening) re,eive %epositG <<) !! iss&e - re,eiveG loan %is1&rsement - ,olle,tion et,5 All a,tivities of 1ank together ,alle% 1anking5 $#' IN0OR/A-ION S4S-E/ !he information systems in,l&%e all a,tivities having to %o 6ith the systemati, flo6 of information 6ithin an organi(ation5 It th&s e;,l&%es only nonsystemi, information s&,h as ,orrespon%en,e on matters not en,ompasse% 6ithin the reg&lar information str&,t&re5 !he fiel% relates to information in organi(ations) 6hi,h in,l&%e 1oth 1&siness an% other gro&ps of people 6ho ,ome together in or%er to a,hieve an o10e,tive5 $#) ACCO.N-IN7 S4S-E/ A,,o&nting is the pro,ess &se% to meas&re an% report to vario&s &sers relevant finan,ial information regar%ing the e,onomi, a,tivities of an organi(ation or &nit5 !his information is primarily finan,ial in nat&re) that is) it is state% in money terms5 $#* -ER/S & CONCE%- .SE+ IN -1IS S-.+4 Banks6 Banks are ,onsi%ere% as servi,e pro%&,ing in%&stry an% stan%ar% norms for in%&strial enterprises are &se% in some ,ases to ,ompare ratios5 Current assets6 C&rrent assets in,l&%e ,ash in han% an% 6ith 1ank) investment an% other assets5 Current lia&ilities6
Chapter
12
C&rrent lia1ilities in,l&%e %eposits an% other a,,o&nts .other than fi;e% %eposits an% %eposit pension s,heme/ 1ills paya1le an% other lia1ilities5 -otal income6 !otal in,ome is ,onsi%ere% as total in,ome after provision for 1a% an% %o&1tf&l %e1ts5 EAuity6 E@&ity in,l&%es pai% &p ,apital @&asi'e@&ity) reserve f&n% an% other reserves5 Ba e&tsC Ba% %e1ts are ,onsi%ere% as fi;e% e;penses 1eing it is generally treate% as a%ministrative e;penses 6hi,h are fi;e% in f&t&re5 Borro9er6 In this st&%y a 1orro6er is a person 6ho en0oys ,re%it fa,ilities from the 1ank in or%er to start or organi(e an enterprise espe,ially one involving finan,ial risk5 %le ge6 In a ple%ge the ,ost&mer %elivers the possession of the se,&rities to the 1anker an% the 1anker hol%s the possession of se,&rities &ntil the %e1t is %is,harge%5 A,,or%ing to1se,tion 1A2 of ,ontra,t A,t 13A2) K*le%ge is a 1ailment of goo%s as se,&rity for payment of a %e1t or performan,e of a promise5L n%er se,tion 1?3 of this A,t) 1ailment is the %elivery of a goo%s 1y one person to another for some p&rpose) &n%er a ,ontra,t that the goo% shall) 6hen the p&rpose is a,,omplishe%) 1e ret&rne% or other 6ise %ispose% of) a,,or%ing to the %ire,tion of the person %elivering themL !he person 6ho %elivers the goo%s as se,&rity is ,alle% is ,alle% the Kple%gorL an% the person to 6hom the goo%s are so %elivere% is ,alle% the K*le%geeL5 !he o6nership remains 6ith the ple%gor5 Customer6 In this st&%y ,&stomer means KA person 6ho has some sort of an a,,o&nt either %eposit or ,&rrent a,,o&nt or some similar relation 6ith a 1ank an% from this it follo6s that any person or ,orporation may 1e,ome a ,&stomer 1y opening %eposit or ,&rrent a,,o&nt or 1y a,,epting an on,e on ,&rrent or loan a,,o&nt or even 1y a,,epting a %eposit re,eipt in a,kno6le%gement of money left 6ith the 1anker5 Banker6 In this st&%y 1anker means as it is %efine% 1y English Bill Of E;,hange A,t 1332 i5e5 KBanker in,he% a 1o%y of person 6hether in,orporate% or not 6ho ,arry on the 1&siness of 1ankingL5
Chapter
29
Letter of Cre it6 !he ,ontra,t 1et6een the importer an% the e;porter is given a legal shape 1y the 1anker .a&thori(e% %ealer/ 6ho &n%ertakes to make the payment for the imports on 1ehalf of the importer5 !he 1anker &n%ertakes the responsi1ility thro&gh Kletter of ,re%itL Fhi,h) for this p&rpose is a letter of ,ommitment iss&e% 1y the importers 1anker to his foreign Correspon%ent 1anker or 1ran,h) if any) in the e;porter>s ,o&ntry &n%ertaking to horror 1ills of e;,hange %ra6n 1y the name% e;porter in a,,or%an,e 6ith an% &pon f&lfillment of the terms stip&late% in the letter5 +rom the importer>s si%e it is an import letter of ,re%it .o&t 6ar%/ an% from the e;porters si%e it is an e;port letter of ,re%it .in6ar%/) its opening 1eing al6ays arrange% 1y the import5 Sprea 6 !he %ifferen,e 1et6een total interestBprofit earne% an% total interestBprofit pai%5 It plays a ma0or role in %etermining the profita1ility of a 1ank5 Bur en6 !he %ifferent 1et6een non'interest Bprofit e;pense an% non'interestBprofit in,ome is %efine% as the B&r%en5 Average6 An average is single val&e 6hi,h is ,onsi%ere% as the most representative or typi,al val&e for a given set of %ata5 Ratio6 Ratio is a fra,tion 6hose n&m1er is the ante,e%ent an% %enominator the ,onse@&ent5 It may also 1e %efine% as the relationship or proportion that one amo&nt 1ears to another) the first n&m1er 1eing n&merator an% the later %enominator5 Capital structure6 Capital str&,t&re refers to the permanent finan,ing of the ,ompany represente% 1y o6ne% ,apita an% loanB%e1t ,apital5 7ross profit6 :ross profit is the res&lt of the relationship 1et6een pri,es sales vol&me an% ,osts5 Consumers Cre it Scheme6 Cons&mer Cre%it is a relatively ne6 fiel% of ,ollateral'free finan,e of the Bank5 *eople 6ith limite% in,ome ,an avail ,re%it to 1&y ho&sehol% goo%s in,l&%ing ,ar ,omp&ter an% other ,ons&mer %&ra1les5
NCCBL
Chapter
21
Small Loan Scheme6 !his s,heme has 1een evolve% espe,ially for small shopkeepers 6ho nee% ,re%it fa,ility for their 1&siness an% ,annot provi%e tangi1le se,&rities5 !he present ma;im&m range of loan is !k5 2599 la,ks5 Lease 0inance6 !his has 1een %esigne% to assist an% en,o&rage the gen&ine an% ,apa1le entreprene&rs an% professionals for a,@&iring ,apital ma,hinery) me%i,al e@&ipment) ,omp&ters an% other items 6hi,h may help them to 1e e,onomi,ally self'reliant5 !erms an% ,on%itions of this ,re%it have 1een ma%e easier than 1efore in or%er to help the potential entreprene&rs to a,@&ire e@&ipment of pro%&,tion an% servi,es an% repay the lia1ility gra%&ally from earnings on the 1asis of K*ay as yo& earnL5 1ire %urchase6 !o p&r,hase some things) the Bank gives loan to ,lient at 14I interest5 !he ,lient has to pay the prin,iple an% interest as a installment 1asis for a fi;e% perio%5 Se,&rity is nee%e% here5 !he goo%s m&st have ins&ran,e 1y Ins&ran,e Company5 %A+6 !he 1ank pays the money to the foreign ,ompany against +oreign LBC on 1ehaves of his ,lient5 !he ,lient pays this amo&nt an% interest later to 1ank5 +octorBs Cre it Scheme6 <o,tor>s Cre%it s,heme is %esigne% to provi%e finan,ing to %o,tors) ,lini,s an% hospitals on easy terms5 ;orking capital6 Forking ,apital refers to the net 6orking ,apital i5e5 .,&rrent assets N ,&rrent lia1ilities/5 0oreign ECchange6 +oreign E;,hange means foreign ,&rren,y an% it in,l&%es any instr&ment %ra6n) a,,epte%) ma%e or iss&e% &n%er ,la&se .18/) Arti,le 17 of the Bangla%esh Bank Or%er) 12A25 All %eposits) ,re%its an% 1alan,es paya1le in any foreign ,&rren,y an% %raft) travelers ,he,k) letter of ,re%it an% 1ill of e;,hange e;presse% or %ra6n in Bangla%eshi ,&rren,y 1&t paya1le in any foreign ,&rren,ies5 Net ;orth6 Net 6orth is the 6ealth of the sharehol%ers at 1ook val&e5 It is the %ifferen,e 1et6een total assets an% total lia1ilities5
Chapter
22
NCCBL
Chapter
28
Company %rofile
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851 852 858 85? 854 857 85A
Ba,kgro&n% of NCCBL NCC Bank Lt% at a :lan,e "ision of NCCBL #ission of NCCBL Offi,e A&tomation of NCCBL !arget C&stomer Organogram of NCCBL
NCCBL
Chapter
2?
'#" Backgroun Of National Cre it & Commerce Bank Lt 8NCCBL5 National Credit and Commerce bank Limited 1ears a &ni@&e history of its o6n5 !he organi(ation starte% its 0o&rney in the finan,ial se,tor of the ,o&ntry as an investment ,ompany 1a,k in 12345 !he aim of the ,ompany 6as to mo1ili(e reso&r,es from 6ithin an% invest them in s&,h 6ay so as to %evelop ,o&ntry>s In%&strial an% !ra%e Se,tor an% playing a ,atalyst role in the formation of ,apital market as 6ell5 Its mem1ership 6ith the 1o&rse helpe% the ,ompany to a great e;tent in this regar%5 !he ,ompany operate% &p to 1222 6ith 17 1ran,hes an% thereafter 6ith the permission of the Central Bank ,onverte% in to a f&ll'fle%ge% s,he%&le% private ,ommer,ial 1ank in #ay "<<' 6ith pai% &p ,apital -k# '<# DD ,ore to serve the nation from a 1roa%er platform5 <&ring last 12 years of its operation NCCBL has a,@&ire% ,ommen%a1le rep&tation 1y provi%ing sin,ere personali(e% servi,e to its ,&stomers in a te,hnology'1ase% environment5 !he Bank has set &p a ne6 stan%ar% in finan,ing in the In%&strial) !ra%e an% +oreign E;,hange 1&siness5 Its vario&s %eposit an% ,re%it pro%&,ts have also attra,te% the ,lients'1oth ,orporate an% in%ivi%&als 6ho feel ,omfort in %oing 1&siness 6ith the Bank5 !he initial a&thori(e% ,apital of the Bank 6as !k5 :*#DD ,ore an%) pai%'&p ,apital !k5 "<#*D) ,ore at the time of ,onversion) 6hi,h is no6 raise%) to !k5 '<#DD ,ore5 !he present a&thori(e% ,apital is !k5 $*D#DD ,ore an% pai% &p ,apital is !k5 ,D#:= ,ore5 !he sponsors of the ne6 1ank ,onsiste% of 27 .!6enty si;/ #em1ers) 6ho ,omprise% the first Boar% of <ire,tors5 !he share pri,e of the 1ank is ,&rrently 1eing @&ote% at 1oth <haka an% Chittagong Bo&rses at an average pri,e of !k5 829B' against per val&e of !k5 199B'5 NCC Bank 1ase% &pon its ,ommen%a1le 1&siness performan,e for the year en%e% 299?) has mean6hile %e,lare% sto,k %ivi%en% at the rate of 89I5 !he Bank 6hi,h starte% 6ith 17 1ran,hes in 1228) has at present )" .forty one/ 1ran,hes an% 98 .three/ Booths lo,ate% in prime ,ommer,ial areas of <haka) Chittagong) Sylhet) +eni) =h&lna) Eessore an% Rangp&r <istri,t Dea%@&arters) o&t of 6hi,h as many as ": .seventeen/ are A&thori(e% <ealer Bran,hes) f&lly e@&ippe% for %ealing in %ire,t foreign e;,hange 1&sinesses5
NCCBL
Chapter
24
NCC Bank is no6 positione% to 1est s&it the finan,ial nee%s of its ,&stomers an% make them partners of progress5 '#$ NCC BAN@ A- A 7LANCE .!k5 in millions/
Particulars Authorized Capital Paid up Capital Reserve fund & other Reserves !uit" #und &eposits 'oans & Advan(es )nvest*ent )*port +usiness ,port +usiness -peratin. )n(o*e -peratin. ,penses -peratin. Profit Profit /efore 0a, Profit after 0a, 1ndistri/uted Profit 0otal Assets 2e,(ludin. (ontra3 #i,ed Assets 4u*/er of +ran(hes 4u*/er of *plo"ees arnin. per 5hare &ividend Cash 263 &ividend +onus 263 Return on !uit" 2R- 36 Return on Assets 2R-A36 Capital Ade!ua(" Ratio 4on Perfor*in. 'oans as per(enta.e of 0otal Advan(es 8olu*e of 4on7Perfor*in. 'oans A*ount of Provisions a.ainst Classified 'oans A*ount of provisions a.ainst 1n(lassified 'oans Advan(e9 &eposit Ratio 263 2004 750.00 607.81 761.18 1$68.%% 1606%.2$ 15211.15 4$85.2$ 1$274.08 5771.65 228$.$7 1562.88 720.4% 445.50 285.16 14.28 2146%.02 2%7.22 $6 %25 46.%1 7 $0 20.8$ 1.$$ %.05 7.87 1188.40 650.06 1$8.%0 0.%5:1
'#' 3ISSION !o 1e in thee forefront of national %evelopment 1y provi%ing all the ,&stomers inspirational strength) %epen%a1le s&pport an% the most ,omprehensive range of
NCCBL
Chapter
27
1&siness sol&tions) thro&gh o&r team of professionals 6ho 6ork passionately to 1e o&tstan%ing in everything 6e %o5 '#) /ISSION Fe shall 1e at the forefront of national e,onomi, %evelopment 1yGAnti,ipating 1&siness sol&tions re@&ire% 1y all o&r ,&stomers every6here an% innovatively s&pplying them 1eyon% e;pe,tation5 Setting in%&stry 1en,hmarks of 6orl% ,lass stan%ar% in %elivering ,&stomer val&e thro&gh o&r ,omprehensive pro%&,t range) ,&stomer servi,e an% all o&r a,tivities5 B&il%ing an e;,iting team'1ase% 6orking environment that 6ill attra,t) %evelop an% retain employees of e;,eptional a1ility 6ho help ,ele1rate the s&,,ess of o&r 1&siness) of o&r ,&stomers an% of national %evelopment5 #aintaining the highest ethi,al stan%ar%s an% a ,omm&nity responsi1ility 6orthy of a lea%ing ,orporate ,iti(en5 Contin&o&sly improving pro%&,tivity an% profita1ility) an% there1y enhan,ing sharehol%er val&e5 '#* O00ICE A.-O/A-ION !e,hnology) Comp&ter) Internet these thins 1rings a ne6 generation of 1anking servi,e to the ,&stomer5 Eight to ten years ago ,&stomers ,annot think a1o&t that they ,an 6ith%ra6 or %eposit money from their a,,o&nt at least 6ithin one ho&r5 B&t no6 it takes only at 1east five min&tes for 6ith%ra6 their money5 !his is the simple e;ample 6hat te,hnology 1rings to 1anking se,tor5 In 1efore 1akers ha% to maintain h&ge le%ger 1ook for their %aily or any sorts of 1anking re,or%5 B&t no6 they ,an %o it 1y one ,li,k an% 1y strike of fe6 1&ttons5 Online 1anking is no6 getting more an% more ne,essary part 1anking se,tor5 NCC Bank Lt% has also reali(e% the ,&rrent fa,t an% they also try to serve online 1anking servi,e to their val&e% ,&stomer5 !ho&gh they %o not la&n,h online 1anking servi,e e;tensively 1&t 6ithin this year an% ne;t year they are trying to intro%&,e online 1anking servi,e at least primarily for the 1ran,hes of <haka an% some other key areas5 No6 they have only three 1ran,hes &n%er online 1anking servi,e5 #irp&r Bran,h) <hanmon%y Bran,h an% ttara Bran,h are no6 serving online 1anking servi,e5 !hese three 1ran,hes have Fi%e Area Net6ork .FAN/ among themselves5 So ,&stomers ,an get online Banking servi,e only from these three 1ran,hes5 NCC Bank has o6n soft6are5 !hey ha% Soft6are name% A+NANE$DD)) 1&t no6 they are 6orking 6ith /ICROBAN@ER) 6hi,h they p&r,hase from In%ia5 !hey have 6e1 page .6665 n,,1ank'1%5 org/5 C&stomer ,an get %etail information from the 6e1 page5 NCCBL also has ,re%it ,ar% an% A!# ma,hine5
NCCBL
Chapter
2A
'#, -AR7E- C.S-O/ERS <&e to the pre%e,essor ,ompany>s involvement investment finan,ing se,tor of the ,o&ntry the 1ank inherite% its top ,orporate ,&stomers5 #oreover the 1ank is involve% in import tra%e finan,ing5 B&lk importers of ,ons&mer %&ra1le) foo% grains in%&strial ra6 materials are its ,&stomers5 !he 1ank has finan,e% in te;tile an% apparels se,tors5 !he 1ank has a tren% of ,hoosing ,&stomers from %iversifie% gro&ps5 !he 1ank has first ,lass ,&stomers in the ,onstr&,tion se,tors involve% in high'rise 1&il%ing) heavy ,onstr&,tion an% roa%s an% high 6ay ,onstr&,tion5 '#= OR7ANO7RA/ O0 NCCB #anaging <ire,tor .#</ <ep&ty #anaging <ire,tor .<#</ Senior E;e,&tive "i,e *resi%ent .SE"*/ E;e,&tive "i,e *resi%ent .E"*/ Senior "i,e *resi%ent .S"*/ "i,e *resi%ent ."*/ Senior Asst5 "i,e *resi%ent .SA"*/ Asst5 "i,e *resi%ent .A"*/ Senior *rin,ipal Offi,er .S*O/ *rin,ipal Offi,er .*O/ Senior Offi,er .SO/ Offi,er .:ra%e One/ E&nior Offi,er .EO/ Asst5 Offi,er .AO/
NCCBL
Chapter
23
NCCBL
Chapter
22
7eneral Banking System of NCCBL
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
)#" )#$ )#' )#) )#* )#,
+eposit Local Remittance Clearing A-/ &Cre it Car Services Locker Services Cash /anagement
NCCBL
Chapter
89
)#" +E%OSI<eposit is the main part of 1ank>s f&n%5 It is almost impossi1le to think a1o&t 1anking 6itho&t %eposit5 So) 1anks try to ma;imi(e its %eposit) try to se,&re it an% try to maintain an easy flo6 of %eposit5 #oney market an% ,apital market transa,tions make %eposit ,olle,tion pro,ess %iffi,&lt for 1anks5 Noti,e that fe6 years 1efore ,&rrent %eposit 6as higher than term %eposit5 B&t at present %epositors like to keep their f&n% as term %eposit5 !hese %eposits have an impa,t on the 1anks len%ing an% investment poli,y5 So) 1anks try to in,rease their %eposit 1y offering attra,tive pa,kage to the %epositors5 <epositors have their o6n ,hoi,e that is ,hanging 6ith time5 Fith this ,hange 1anks innovate ne6 %eposit ,olle,tion poli,y5 !hese a,tivities of 1anks relate% 6ith %eposit are kno6n as %eposit management5 )#"#" OB2EC-I3E O0 BAN@ +E%OSIBanks mainly ,olle,t %eposits for in,rease their f&n%5 Other than it %eposits have also some other o10e,tives5 !hese are Colle,tion of 1ank f&n%5 Ens&re pro%&,tive investment of the savings of the ,lient5 E;ten%ing the s,ope of loan5 +&lfillment the e;,ess nee% for money5 So,io parti,ipation maintaining so,ial responsi1ility5 )#"#$ +E%OSI- %ROCESSIN76 <eposit start from a,,o&nt opening an% en% 6ith transa,tion in a,,o&nt5 Noti,e that every a,tivities of the a,,o&nt hol%er have an impa,t on the 1ooks of a,,o&nt of the 1ank5 !he steps of %eposit pro,essing are given 1elo6C Ne6 a,,o&nt se,tion gives s&ggestion to the ,&stomers a1o&t the s&ita1le a,,o&nts that the 1ank have for their ,lient5 A,,eptan,e of ne,essary appli,ation) photograph an% %o,&ments5 Che,king %epartment s,r&tiny the %o,&ments that ,&stomer s&1mitte% 6ith appli,ation5 After s,r&tiny 1ank manager give permission to open a ne6 a,,o&nt5 !hen ,&stomers have to %eposit some money as primary %eposit5
Chapter
81
In ,omp&teri(e% 1anking system ne6 a,,o&nt is initiate% an% a,,o&nt hol%er>s profile entere% into %ata1ase5 <elivere% ,he,k1ook an% %eposit re,eipt to the a,,o&nt hol%er5 In man&al 1anking system a le%ger folio is spe,ifie% for 1ook keeping of the ne6 a,,o&nt5 After a spe,ifi, perio% a,,o&nt statement sent to the a,,o&nt hol%er5 Banks revie6 the a,,o&nt an% verify the ,orre,tness of the 1alan,e of the a,,o&nt5 Banks also try to infl&en,e the potential %epositors to open a,,o&nt 6ith them5 )#"#' LE3EL O0 +E%OSI- O0 -1E BAN@6 In ,ommer,ial 1anking amo&nt of %eposit %epen%s on the 1ank>s nat&re of len%ing an% 1orro6ing5 +rom the ,olle,te% %eposit 1anks keep some parts of its %eposit as stat&tory reserve for maintain their li@&i%ity position5 After that they %etermine the loan a1le f&n%5 By in,reasing or %e,reasing the level of stat&tory reserve) open market operation) 1ank rate an% %is,o&nt rate government ,an ,hangeBinfl&en,e the amo&nt of loan a1le %eposit5 A 1ank may 1e an effi,ient one 1&t it ,annot ,olle,t %eposit as m&,h as they 6ant5 <eposit level of the ,ompetitor 1anks %epen%s on the government monetary poli,y) ta; poli,y) interest rate poli,y) an% n&m1ers of performing 1anks) strength an% 6eakness of ,ompetitor 1anks) @&ality an% effi,ien,y of 6orking for,e5 !he reasons on 6hi,h the level of %eposits %epen%s are given 1ello6C Competitive interest rate *hysi,al feat&res of the 1ank offi,e se of mo%ern an% ele,troni, te,hnology Skille% 1ank e;e,&tives Innovating ne6 servi,es In,l&sion of so,ially respe,tive person in the 1oar% of %ire,tors Attra,tive loan an% investment s,heme poli,y S&ita1le lo,ation for the offi,e A%vantage of early start E,onomi, ,on%ition
Chapter
82
)#"#) +E%OSI- INS.RANCE !here are risk involve in all 1&siness5 Banking 1&siness is not o&t of risk fa,tor5 In 1anking 1&siness 1anker take ins&ran,e ,overage on the %eposit that they have taken from the %epositors5 It ens&res the ret&rn of the %epositor>s money in ,ase of 1ank fail&re5 !his pro,ess of ins&ring the %eposit of the 1anks is kno6n as %eposit ins&ran,e5 Some ins&ran,e ,ompany have spe,ial s,heme for %eposit ins&ran,e5 +or this p&rpose ins&ran,e ,ompanies ,harge premi&m for the servi,es that they have provi%e%5 !his premi&m %epen%s on the risk fa,tors that involve% 6ith the %eposits5 )#"#, -4%ES O0 +E%OSI- O0 NCCBL a/ S&n%ry <eposit 1/ C&rrent <eposit .C</ ,/ Savings <eposit .SB/ %/ Short !erm <eposit .S!</ e/ Spe,ial Savings S,heme .SSS/ f/ Spe,ial +i;e% <eposit S,heme .S+<S/ g/ +i;e% <eposit .+<R/Bearer Certifi,ate of <eposit .BC</ )#"#*# +E%OSI- /IF O0 NCCBL 8$DDDE$DD)56 <eposit mi; means the proportion of the %ifferent types of %eposit in the 1ank>s total %eposit5 !his %eposit mi; helps 1anks to take their operational %e,isions5 <eposit mi; of the NCCBL for the year 2999'299? sho6n as 1ello6C
Deposit Mix - 2000
5undr" &eposit Current &eposit
76
116 116
5hort 0er* &eposit 5avin.s &eposit
86 4%6 46 16 %6
5pe(ial 5avin.s 5(ehe*e 5pe(ial #i,ed &eposit 5(ehe*e #i,ed &eposit +earer Certifi(ate of &eposit
0igureE"
NCCBL
Chapter
5undr" &eposit
88
Deposit Mix- 2001
Current &eposit
5hort 0er* &eposit
76
86
116 66 76 26 66
5av in.s &eposit
5pe(ial 5av in.s 5(he*e 5pe(ial #i,ed &eposit 5(he*e #i,ed &eposit
5$6
+earer Certif i(ate of &eposit
0igureE$
5undr" &eposit Current &eposit 5hort 0er* &eposit
Deposit Mix- 2002
46
86
86 56 86 26 76
5av in.s &eposit 5pe(ial 5av in.s 5(he*e 5pe(ial #i,ed &eposit 5(he*e #i,ed &eposit +earer Certif i(ate of &eposit
586
0igureE'
Deposit mix - 2003
5undr" &eposit Current &eposit 5hort 0er* &eposit
16
86
76
56 106 46
5av in.s &eposit 5pe(ial 5av in.s 5(he*e 5pe(ial #i,ed &eposit 5(he*e #i,ed &eposit +earer Certif i(ate of &eposit
546
116
0igureE)
Chapter
5undr" &eposit
8?
Deposit Mix - 2004
Current &eposit
0.%66 5.56 10.0$6 4.576 11.626 5.016 7.876
5hort 0er* &eposit 5av in.s &eposit
5pe(ial 5av in.s 5(he*e 5pe(ial #i,ed &eposit 5(he*e #i,ed &eposit
54.4$6
+earer Certif i(ate of &eposit
0igureE* )#"#: SEC-ORAL +E%OSIa5 Sun ry +eposit6 It is a non'interest 1earing %eposit5 Any sort of non'interest 1earing %eposit is goo% for the instit&tions5 !ho&gh it is a lia1ility) 1&t 1ank %oesn>t pay any interest against this %eposit5 So) the s&n%ry %eposit of any 1ank>s in,rease that 6ill 1e a goo% part for the ,on,ern 1ank5 !he s&n%ry %eposit of NCCBL for the year 2999'299? .*er,entage of total %eposit/ 2999 11I 2991 3I 2992 3I 2998 3I 299? 45 4I
!a1le N 1C Ann&al Report2999'299?

Sundry Deposit % of Total Deposit
%6 126 06 $6 66
2000
2001
2002 Year
200$
2004
0igureE, :ra%&ally the s&n%ry %eposit of NCCBL %e,reases5 So) 6e ,an say in ,ase of interest it 6as not favora1le for NCCBL5 Be,a&se) those amo&nt of %eposit 6as
NCCBL
Chapter
84
non'interest 1earing5 So) it 6o&l% 1e higher the 1ank ,o&l% invest those amo&nt) 1&t there 6ere no ,ost of f&n%5 In other 6or%) this %e,lining graph sho6s the 1ank>s servi,e goo% 6ill5 +or e;ample 6e ,an mention s&n%ry ,re%itors5 Over the year s&n%ry %eposit is %e,rease% that means s&n%ry ,re%itors also %e,rease%5 !his %e,reasing s&n%ry ,re%itor in%i,ates) NCCBL pai% to their ,re%itors timely5 So) in ,ase of goo% 6ill this tren% of s&n%ry %eposit is goo% for the NCCBL5 &5 Current +eposit6 It is also a non'interest 1earing %eposit5 If non'interest 1earing %eposit is higher 1etter for 1ank5 Bankers en,o&rage the ,lients to open ,B% a,,o&nt) 1e,a&se of its non'interest 1earing ,hara,teristi,s5 Last five .4/ years ,&rrent %eposit of NCCBL .*er,entage of total %eposit/ 2999 11I 2991 11I 2992 2998 299? 3I AI 195 98I !a1le'2C Ann&al report 2999'299?
urrent Deposit % of Total Deposit
%6 126 06 $6 66
2000
2001
2002 Year
200$
2004
+ig&re'A In the year 2999 an% 2991 NCCBL>s ,&rrent %eposit 6as 11I 1&t in thee year 2992 an% 2998 this ,&rrent %eposit %e,rease%) 1e,a&se of more ,ompetition in the market5 Again in the year 299? they 6ere a1le to in,rease their ,&rrent %eposit at 195 98I 1y &sing their goo% 6ill) %e%i,ation an% servi,e to the giant 1&siness people5 It is also in%i,ates that) !he NCCBL gain the faith of 1&siness people5 ,/ Short -erm +eposit 8S-+5C A,,or%ing to ,hara,teristi,s) short'term %eposit is similar to ,&rrent %eposit e;,ept interest5 !ho&gh it is CB< a,,o&nt 1&t 1earing some interest5 C&rrently this interest rate is 45 49I5
Chapter
87
Short !erm <eposit of NCCBL for 2999'299? .*er,entage of total %eposit/ 2999 3I 2991 7I 2992 2998 4I 4I !a1le N 8C Ann&al Report 2999'299? 299? ?5 4AI
S!ort Term Deposit % of Total Deposit

%6 126 06 $6 66
2000
2001
2002 Year
200$
2004
+ig&re'3 If Short'term %eposit is less) 1etter for 1ank5 So) this %e,lining graph is goo% NCCBL5 %/ Savings +epositC Savings <eposit is an interest 1earing %eposit5 Digher the savings %eposit) greater the faith to the ,on,ern 1ank of the ,lients5 Fhen a ,lient feel se,&re% a1o&t their money only then they keep their money5 Savings <eposit of NCCBL for 2999'299? .*er,entage of total %eposit/ 2999 2I 2991 AI 2992 2998 299? 3I 19I 115 72I !a1le N ?C Ann&al Report'2999'299?
As 6e see the graph of savings %eposit s of NCCBL N it is move% &p'6ar%s year to year) e;,ept 29995 In the year 2999 it 6as 2I of total NCCBL>s %eposit) 1&t fallen it %o6n in 2991 at AI5
NCCBL
Chapter
8A
Sa"in#s Deposit % of Total Deposit

06 $6 66 %6 126
2000
2001
2002 Year
200$
2004
+ig&re'2 !hen after this %eposit ,&rve rising &p'6ar%s &p to 299?5 It in%i,ates' in%ivi%&al ,lient or ho&se hol% feel se,&re% keeping their money 6ith NCCBL5 I mention in%ivi%&al ,lient 1e,a&se) most of the 1&siness ,lient like to operate their 1&siness 1y CB< a,,o&nt) 1&t in%ivi%&al or ho&sehol% prefer to ,ontin&e their transa,tion 1y savings a,,o&nt5 Interest rate is another fa,tor of %eposit5 *resent interest rate of savings %eposit is O 7I of NCCBL5 e/ Special Savings Scheme 8SSS56 Spe,ial Savings <eposit is an interest 1earing %eposit5 !he %&ration of the s,heme is 4 years or 19 years5 A %epositor may open one or more a,,o&nts of %ifferent installments in the same Bran,h5 !he monthly installments of !k5 499B' to !k5 19999B' may 1e %eposite% every month %&ring the entire perio% of the s,heme !he %epositors 6ill 1e pai% a spe,ifie% amo&nt as per the follo6ing ta1leC #onthly Installment .!aka/ 499B' 1999B' 1499B' 2999B' 2499B' 8999B' 8499B' ?999B' ?499B' 4999B' 19999B' Amo&nt to 1e pai% on ,ompletion of 4 $ears .!k5/ 19 $ears .!k5/ 8318?B' 19939?B' A7273B' 291793B' 11??92B' 892?12B' 142489B' ?98217B' 1297A9B' 49?929B' 22339?B' 79?32?B' 277283B' A94723B' 8949A2B' 397?82B' 8?8297B' 29A287B' 8318?9B' 19939?9B' A72739B' 2917939B' !a1le'4 Last five years Spe,ial Savings <eposit of NCCBL .*er,entage of total %eposit/ 2992 2998 299?
NCCBL
2999
2991
Chapter
83
1I
2I
2I ?I !a1le N 7C Ann&al Report2999'299?
45 91I
As 6e see the gro6th of spe,ial savings %eposit of NCCBL) it is &p6ar%s5 In the year 2999 it 6as 0&st 1I an% in 2991 - 2992 it 6as 2I respe,tively5 B&t in the year 2998 it gro6n 2I than previo&s year5 It 6as a goo% move for NCCBL5 Digher the spe,ial savings %eposit 1etter for the 1ank to invest this money in %ifferent se,tor5 Be,a&se of) %&ration of this SSS) 6hi,h is 4 or 19 years5
Special Sa"in#s Deposit % of Total Deposit

%6 126 06 $6 66
2000
2001
2002 Year
200$
2004
+ig&re'19 f/ 0iCe +epositC It is a ma0or part of total %eposit an% term %eposit also5 !ho&gh it is an interest 1earing %eposit) 1ankers en,o&rage the ,lients .1oth ho&se hol% 1&siness/ to %eposit their money &n%er this s,heme5 In the fi;e% %eposit s,heme ma0or fa,tor is interest rate5 If interest rates in,rease) %eposit 6ill 1e in,rease% of the 1ank5 It is a normal ,o&rse5 One thing sho&l% 1e mentione%' 6hen in,rease the interest of any 1ankP If any 1ank feels f&n% shortage only then they are 6illing to pay higher interest rate5 *resent sit&ation is N NCCBL>s interest rate on fi;e% %eposit O 195 49I for one year) 195 24I for si; .7/ months) 19I for three .8/ months an% 25 4I for one .1/ months5 Some other 1anks are giving more interest than NCCBL) like O 11I for one year an% so on5 Fhat %oes it meanP Fe ,an get one point easily from this statement that some other 1ank>s f&n% shortage is more than NCCBL5 !hat>s 6hy they are ,onsi%ering higher interest against fi;e% %eposit5 Fe kno6 that lo6er the interest rate lo6er the ,ost of f&n%5 !his lo6er ,ost of f&n% is an important o10e,tive of the management5
Chapter
82
Altho&gh interest rate of fi;e% %eposit is not as m&,h as higher) NCCBL>s fi;e% %eposit is in,rease% for last five years5 +i;e% <eposit of NCCBL for 2999'299? .*er,entage of total %eposit/ 2999 ?2I 2991 48I 2992 2998 299? 43I 4?I 4?5 ?8I !a1le N AC Ann&al Report 2999'299?
$ixed Deposit Sc!eme % of Total Deposit
256 $56 456 556
2000
2001
2002 Year
200$
2004
+ig&re'11 In ,ase of fi;e% %eposit) ,lients ,onsi%er t6o .2/ things' one is interest rate an% another is ,ertainty of their money5 !hat means finan,ial strength an% sta1ility of the ,on,ern 1ank5 NCCBL>s interest rate is not e@&al or higher than their ,ompetitors) 1&t their fi;e% %eposit ,&rve is moving &p6ar%s5 It is a great a,hievement for NCCBL5 g5 Special 0iCe +eposit Scheme6 It is similar to fi;e% %eposit5 B&t only one %issimilarity is N ,lient ,an %ra6 their interest amo&nt monthly 1asis5 +i;e% in,ome gro&p of ,lient like to %eposit their money &n%er this s,heme5
NCCBL
Chapter
?9
Spe,ial +i;e% <eposit of NCCBL for last five years .2999'299?/ .*er,entage of total %eposit/ 2999 ?I 2991 7I 2992 2998 AI 11I !a1le N 3C Ann&al Report 2999'299? 299? A5 3AI
Special $ixed Deposit Sc!eme % of Total Deposit

06 $6 66 %6126156
2000
2001
2002 Year
200$
2004
+ig&re'12 h/ Bearer Certificate of +epositC It is an instr&ment of %eposit) 6here %epositors name an% a%%ress is not mentione%G only a re,eipt n&m1er is there5 E&st t6o or three years ago :overnment of Bangla%esh r&le% on this type of %eposit5 !hey are %is,o&raging a1o&t 1earer ,ertifi,ate of %eposit5 As a res&lt 1earer ,ertifi,ate of %eposit of every 1ank is %e,lining5 Some amo&nt of 1earer ,ertifi,ate of %eposit is keeping 1y the 1anks) 6hi,h are not yet mat&re%5 NCCBL>s 1earer ,ertifi,ate of %eposit for the year 2999'299? .*er,entage of total %eposit/ 2999 AI 2991 AI 2992 2998 ?I 1I !a1le N 2C Ann&al Report 2999'299? 299? 95 27I
!his per,entage in%i,ates that NCCBL a1i%e 1y the r&les an% reg&lations of Central Bank an% :overnment of Bangla%esh also5
NCCBL
Chapter
?1
%earer ertificate of Deposit % of Total Deposit

126 06 46 86
2000
2001
2002 Year
200$
2004
+ig&re N 18 )#"#= +E%OSI- 7RO;-16 !he 1ank mo1ili(e% a total %eposit for 2999'299? .!k5 In million/ 1944A5A2) 123?35A1) 17972584) 14148529 an% 17972528 6hi,h is in,rease% of 295A1I) 215A9I) 24591I respe,tively over the pre,e%ing year an% %e,rease% '4574I for 2998 over previo&s year .2992/) again in,rease% 759?I over previo&s year .2998/5
Deposit (2000-2004)
18000.00 15000.00 T&' in Million 16062.$5 1515$.%0 1606%.2$ 2004 12000.00 10557.72 12848.71 2001 %000.00 6000.00 $000.00 0.00 2000 2002 Year 200$
+ig&re N 1?
Deposit *ro+t!
$0.006 25.006 20.006 15.006 10.006 5.006 0.006 75.006 710.006
% of *ro+t!
2000
2001
2002 Year
200$
2004
+ig&re'14
Chapter
?2
Several %eposit s,hemes .Spe,ial Savings S,heme) Spe,ial +i;e% <eposit S,heme/ intro%&,e% 1y the NCCBL) helpe% in mo1ili(ation of gro6th in %eposits of the 1ank5 )#"#< 0IFE+ +E%OSI- RA-ES 80+R5 NCC Bank is a *rogressive Commer,ial Bank in *rivate Se,tor5 It ,reates ne6 opport&nities for its ,lients5 It gives ,&stomi(e% servi,es an% maintains harmonio&s 1anker',lient relationship5 It ,ontri1&tes to6ar%s formation of national ,apital) gro6th of savings - investment in tra%e) ,ommer,e - in%&strial se,tors5 NCCB offers follo6ing attra,tive rates of profit to its <epositors on !erm - Savings <epositsC a5# -erm eposits Nat&re of <eposits +i;e% <eposit 1 month +i;e% <eposit B Bearer Certifi,ates for 8 months +i;e% <eposit B Bearer Certifi,ates for 7 months +i;e% <eposit B Bearer Certifi,ates for 1 year +i;e% <eposit B Bearer Certifi,ates for 2 years +i;e% <eposit B Bearer !a1le'19 Rate of Interest 2I 19I 195 24I 195 49I 19524I ' 11524I 195A4I ' 11549
&5# Saving an short term +epositsC Savings %eposit 75 99I Short term <eposit 45 99I In a%%ition to a1ove) higher rate of profit is offere% on 1&lk %eposits5 Fith a vie6 to ens&ring risk free an% profita1le investment of limite% in,ome of ma0ority of o&r people - there1y provi%ing ma;im&m 1enefits5 )#"#"D S%ECIAL SA3IN7S SC1E/E 8SSS5 Like J<eposit *ension S,heme>) this s,heme in,l&%es the follo6ing feat&res for the ,onvenien,e of the ,lients5 !he monthly installments of !k5 499B' to !k5 2499B' may 1e %eposite% every month %&ring the entire perio% of the s,heme5 !he %&ration of the s,heme is 4 years or 19 years5 !he %epositors 6ill 1e pai% a spe,ifie% as per the follo6ing ta1leC #onthly Installment .!aka/ Amo&nt to 1e pai% on ,ompletion of 4 $ears .!k5/ 19 $ears .!k5/
NCCBL
Chapter
?8
499B' 1999B' 1499B' 2999B' 2499B' 8999B' 8499B' ?999B' ?499B' 4999B' 19999B'
8318?B' A7273B' 11??92B' 142489B' 1297A9B' 22339?B' 277283B' 8949A2B' 8?8297B' 8318?9B' A72739B' !ABLE'11
19939?B' 291793B' 892?12B' ?98217B' 49?929B' 79?32?B' A94723B' 397?82B' 29A287B' 19939?9B' 2917939B'
A %epositor may open one or more a,,o&nts of %ifferent installments in the same Bran,h5 Loan may 1e e;ten%e% &p to 39I of the %eposite% amo&nt )#"#"" S%ECIAL 0IFE+ +E%OSI- SC1E/E 8S0+S5 Any amo&nt of !k5 1)99)999B' or its m&ltiple may 1e %eposite% &n%er this s,heme5 <&ration of the S,heme is 8.three/ years5 #onthly interest 6ill 1e given to the %epositor against the %eposite% amo&nt a,,or%ing to the follo6ing s,he%&le5
Amo&nt <eposit .!k5/ #onthly profit .!k5/
49)999B' 1)99)999B' 2)99)999B' 8)99)999B' ?)99)999B' 4)99)999B' 7)99)999B' A)99)999B' 3)99)999B' 2)99)999B' 19)99)999B' !ABLE' 12
499B' 1)999B' 2)999B' 8)999B' ?)999B' 4)999B' 7)999B' A)999B' 3)999B' 2)999B' 19)999B'
)#$ LOCAL RE/I--ANCE Remittan,e means transmission of money from 9ne pla,e to another5 !here are %ifferent mo%&les of remittan,e5 !hey are as follo6sC a5 --6 -elegraphic -ransfer
NCCBL
Chapter
??
!! is the @&i,kest metho% of transferring f&n% from one pla,e to another5 !he remitting 1ran,h sen%s a telegraphi, B telephoni, B +a; message to the 1ran,h at the other en% to pay a ,ertain s&m of money to a name% payee5 Dere the remitter 1ears the a%%itional ,harge of tele; B telephone - 14I vat of !! ,harge5 Charge for !! is 95 19 I of the prin,ipal amo&nt an% the a%%itional ,harge for tele;5 !he telephone ,harge is tk5 895 &5 ++6 +eman +raft It is an instr&ment ,ontaining an &n,on%itional or%er of one 1ank to pay a ,ertain amo&nt of money to the name% person or or%er the amo&nt therein on %eman%5 << is very m&,h pop&lar instr&ment for remitting money from one ,orner of money to another5 Commission for << is 95 19 I of the prin,ipal amo&nt5 !he remitter also have to pay 14I of ,ommission - postage ,harge tk5 895 c5 %O6 %ay Or er It is pro,ess of money transfer from payer to payee 6ithin a ,ertain ,learing area thro&gh 1anking ,hannel5 A person ,an p&r,hase payment or%er in %ifferent mo%els s&,h as *ay Or%er 1y ,ash) *ay Or%er 1y ,he,k5 Commission for *O is tk5 19 for &p to the prin,ipal amo&nt of tk5 199999)tk5 29 &p to the prin,ipal amo&nt of tk5 499999 - tk5 49 for more than tk5 4999995 )#' CLEARIN7 Clearing stan%s for m&t&al settlement of ,laims ma%e in among mem1er 1anks at an agree% time an% pla,e in respe,t of instr&ments %ra6n of ea,h other5 Clearing Do&se is an arrangement &n%er 6hi,h mem1er 1anks agree to meet) thro&gh their respe,tives at the appointe% time an% pla,e to %eliver instr&ments %ra6n on the other an% in e;,hange to re,eive instr&ments %ra6n of themselves5 !he nit amo&nt paya1le or re,eiva1le as the ,ase may 1e is settle% thro&gh an a,,o&nt kept 6ith the ,ontrolling 1ank .Bangla%esh Bank B Sonali Bank/5 )#'#" -ypes of clearing !here are t6o types of ,learing5 !hese are 15 O&t6ar% Clearing - 25 In6ar% Clearing5
NCCBL
Chapter
?4
a5# Out9ar Clearing Fhen a parti,&lar 1ran,h re,eives instr&ments %ra6n on the other 1ank 6ithin the ,learing (one an% sen%s those instr&ments for ,olle,tion thro&gh the ,learing arrangement is ,onsi%ere% as O&t6ar% Clearing +or the parti,&lar 1ran,h5 !his 1ran,h is kno6n as ,olle,ting 1ran,h5 &5# In9ar Clearing# Fhen a parti,&lar 1ran,h re,eives instr&ments 6hi,h on them selves an% sent 1y other mem1er 1ank for ,olle,tions are treate% as in6ar% ,learing5 Clearing %epartment also involve% in Lo,al Bills for Colle,tion .LBC/ an% O&t6ar% Bills for Colle,tion .OBC/5 Fhen NCCBL transfers f&n% 6ithin <haka ,ity that means in lo,al area then they sen% LBC an% in for6ar% responses get In6ar% Bills for Colle,tion .IBC/5 Fhen NCCBL is responsi1le for transferring f&n% then they involve in O&t6ar% Bills for Colle,tion .OBC/ an% OBC is sent thro&gh <eman% <raft.<</) !elegraphi, !ransfer.!!/5 OBC an% LBC are sent against of ,ommission an% ,ommission varies for %ifferent amo&nt5 )#'#$ %roce ure of Clearing6 0lo9 SeAuence !he pro,e%&re of ,learing are given 1ello6 se@&en,ely5 a5 %roce ure of Out9ar Clearing6 0lo9 SeAuence 0irst -ireC Colle,ting Bran,h 15 !he instr&ment is %eposite% %&ly entere% in the pay in slip or vo&,her5 25 !he instr&ment is ,he,ke% for any apparent %is,repan,y an% is ,ompare% 6ith the parti,&lar note% in the pay in slip5 85 In ,ase an or%er instr&ment is 1eing %eposite% in se,on% payee>s a,,o&nt g&arantee is o1taine% from the se,on% payee an% is atta,he% to the pay in slip5 ?5 In,ase the payee>s name on the spe,ially ,rosse% instr&ment %iffers slightly that of the %epositor) the instr&ment may 1e a,,epte% 1&t only from ,&stomers 6ell kno6n to the 1ank an% after o1taining an in%emnity 6hi,h is atta,he% to the pay in slip5 45 <&ly signe% an% ret&rn of ,o&nterfoil to the ,&stomer5 75 !he parti,&lars of the instr&ment an% vo&,her are entere% in the O&t6ar% Clearing RegisterB Comp&ter5 A5 *repare vo&,herC "o&,her to 1e passe% on the follo6ing 6orking %ay5
Chapter
?7
S&spense ABC Clearing a%0&ste% All pay in slipsB vo&,her
<r5 Cr
35 Sorting of instr&ments 1ank'1ran,h 6ise an% a,,or%ingly prepares s&1' main s,he%&les5 25 *repare Do&se page 6ith a,,or%ing to main s,he%&le5 195 !allie% ho&se page 6ith O&t 6ar% Clearing Register5 115 !he ho&se page 6ith instr&ment sent to prin,ipal B Lo,al Offi,e B #ain 1ran,h 125 In the follo6ing 6orking %ay prepare% vo&,her .SL No5 A/ is to 1e passe%) if any ret&rn an% &npai% instr&ment is re,eive% from prin,ipal 1ran,h) in a%%ition to a1ove vo&,her the follo6ing vo&,her 6ill 1e passe%5 *arty ABC S&spense ABC Clearing a%0&stment <r5 Cr
185 Fhen a%vi,e is re,eive% from prin,ipal B lo,al offi,e) the follo6ing vo&,her is to 1e passe%5 Dea% Offi,e *arty ABC S&spense ABC Clearing a%0&stment <r5 Cr
Secon -ireC *rin,ipal Bran,h B Lo,al Offi,e B #ain Bran,h5 Instr&ment re,eive% 1y this offi,e same as previo&s se,tion Sl No5 1 to A5 Lo%gment 1y this Bran,h 15 Re,eive% ho&se pages 6ith instr&ments from the 1ran,hes5 25 Re,or%e% the amo&nt in a register from ho&se page5 85 !he instr&ments 6ith s,he%&les are rearrange% 1ank'1ran,h 6ise an% prepare main s,he%&les for ea,h 1ank5 ?5 *repare ho&se page5 45 !he instr&ments 6ith s,he%&les) ho&se page an% the ho&se 1ook are sent to the ,learingho&se thro&gh 1ank representative5 -hir -ire6 Clearing Do&se .Bangla%esh Bank B Sonali Bank/ !he instr&ments are %elivere% to the respe,tive 1anks5
NCCBL
Chapter
?A
&5 %roce ure of In9ar Clearing6 0lo9 SeAuence 0irst -ire6 Clearing Do&se .Bangla%esh Bank B Sonali Bank/ 15 !he instr&ments are %ra6n on 1ank 6hi,h on themselves are re,eive% from other 1anks in the ,learingho&se5 25 !he amo&nt an% n&m1er of instr&ments re,eive% are entere% in the ho&se 1ook from the main s,he%&le of respe,tive 1anks5 85 !he amo&nt of instr&ments %elivere%) re,eive% an% the %ifferen,es are 6ritten on a fig&re slip provi%e% in the ,learingho&se5 Secon -ire6 *rin,ipal Bran,h B Lo,al Offi,e B #ain Bran,h5 15 !he instr&ments 6ith s,he%&les are arrange% 1ran,h 6ise5 25 !he amo&nt of ea,h s,he%&le re,eive% is entere% in the ho&se pages of the respe,tive 1ran,hes5 85 !he respe,tive ho&se pages are totale% an% ,he,k the amo&nt 6ith total amo&nts of instr&ment re,eive% from all 1anks5 ?5 !he instr&ments are sent to respe,tive 1ran,hes 6ith the slip sho6ing total amo&nt an% n&m1er of instr&ments5 45 !he instr&ments sent to the 1ran,hes ,on,erne% for ,learan,e an% a%vi,e are ,olle,te% from them for honore% ,he,ks5 -hir -ireC *aying Bran,h 15 *arti,&lars of the instr&ments are ,ompare% 6ith the s,he%&le5 25 !he instr&ments are sent to the respe,tive %epartments for honoring them5 85 +or the total val&e of honore% ,he,ks pass the follo6ing vo&,hersC *arty ABC Dea% offi,e ABC <r5 Cr
?5 <ishonore% ,he,ks .if any/ 6ith reason memo an% ,re%it a%vi,e sent to prin,ipal 1ran,h5 )#'#' SA/E +A4 CLEARIN7 !he Bangla%esh Bank starte% same %ay ,learing of ,he,ks amo&nting to tk5 +ive la, an% a1ove to help the ,o&ntry>s 1&siness ,omm&nity spee% &p its a,tivities5 !he system allo6s 1ank ,lients to en,ash ,he,ks an% other instr&ments for tk five la,
Chapter
?3
an% a1ove 6ithin the %ay of s&1mission5 *resently) s&,h 6ith%ra6al takes at least t6o %ays) as it re@&ires ,learan,e from the ,entral 1ank5 Initially) 292 1ran,hes of 49 nationali(e%) private an% foreign 1anks in <haka) 6ho are the mem1ers of the Bangla%esh Bank ,learing ho&se) intro%&,e% the system5 +rom S&n%ay thro&gh Fe%nes%ay) the same %ay ,learing 6ill start at 11 am an% ,lose at 12 noon 6hile ret&rn ,learing 6ill start at 2 pm5 On !h&rs%ay) it 6ill start at 19 am an% ,lose at 11 am5 !he ret&rn ,learing 6ill start at 12noon5 !he 1anks have sele,te% their respe,tive 1ran,hes sit&ate% 6ithin fo&r kilometer of the ,entral 1ank hea% offi,e for intro%&,ing same %ay ,learing )#'#) Reasons for return of the check 15 *ayee>s En%orsement re@&ire% 25 Bank>s En%orsement re@&ire% 85 Bank>s ,onfirmation on *ayee>s En%orsement re@&ire% ?5 <ra6er>s Signat&re %iffers 45 .a/ Che,k *ost <ate% .1/ State %ate% Che,k 75 Amo&nt in For%s an% fig&res %iffers A5 Alteration re@&ires %ra6er>s f&ll signat&re 35 Che,k #&tilate% 25 *ayment stoppe% 1y the <ra6er 195 Effe,ts not ,leare%) may 1e presente% again on 115 Ins&ffi,ient +&n% 125 Not Arrange% for 185 E;,ee%s Arrangement 1?5 Crosse% Che,k sho&l% 1e presente% thro&gh Banker 145 Clearing Do&se Stamp re@&ire% 175 Refer to <ra6er 1A5 Che,k to 1e signe% in the presen,e of an% atteste% 1y an offi,er of the Bank 135 *ayee>s I%entifi,ation re@&ire% 125 Bank>s <is,harge Irreg&lar Not %ra6n on &s5 )#) CAS1 /ANA7E/EN!he NCC Bank Limite% has a heavy e@&ippe% ,ash se,tion5 Cash is re,eive% an% %is1&rse% in this se,tion5 !he ,ash se,tion ,onsists of a one hea% teller) five tellers5
NCCBL
Chapter
?2
A5 Receiving cash Any person 6ants to %eposit money fills &p the %eposit slip or pay in ship an% gives the form along 6ith the money to the teller5 !he teller ,he,ks the ABC n&m1er) amo&nt of taka 1oth in 6or%s an% in fig&re5 !hen the teller gives the entry to the re,eiving ,ash1ook an% also 6rites the %enomination of ,&rren,y at the 1ook of %eposit slip5 !hen the teller sen%s the %eposit slip 6ith ,o&nterfoil ,re%it vo&,her an% ,ash1ook for re,he,king the parti,&lars an% for a se,on% signat&re to the hea% teller5 After this se,on% signat&re a stamp K,ash Re,eive%L is given over the ,re%it vo&,her5 At the en% of the %ay total of s,roll 1ook are entere% in the ,ash1ook an% total of the ,re%it vo&,hers are fo&n% o&t an% ,he,ke% 6ith the previo&s entries5 !he pro,ess is same for ,ash re,eive% the %ate of the ne;t %ay5 B +is&ursing Cash !he NCCBL) #irp&r 1ran,h re,eive% vario&s finan,ial instr&ments for en,ashment5 !he ,ommon instr&ment han%le% 1y the 1ran,h is Che,k) %eman% %raft) pay or%ers) mail transfer re,eipt) telegraphi, transfer re,eipt an% %e1it ,ash vo&,hers et,5 !his instr&ment is ha,ke% for apartment tenor5 If the instr&ment is all right) it is .Che,k/ sent for posting 1y ,omp&ter5 After posting) signat&re is verifie% 1y the Dea%5 !hen the ,he,k is sen%ing for ,an,ellation5 After ,he,king the ABC n&m1er) payee instr&,tion an% %ate the ,an,ellation) offi,er ,an,els the ,he,k5 !here after the payment is %one5 !he pro,ess is same for other finan,ial instr&ment along 6ith the ,learing step5 Bearer ,he,k is pai% in ,ash an% ,ross ,he,k is 1alan,e% to the ABC5 +e&it Car &Cre it Car NCC Bank is e;ten%ing A!# fa,ility thro&gh E'Cash share% A!# Net6ork5 Car%hol%ers ,an 6ith%ra6 ,ash thro&gh the 13 lo,ations of <haka an% Sylhet 2? ho&rs a %ay 874 %ays of the year5 #ore lo,ations are to 1e a%%e% soon5 Car%hol%ers ,an also pay their !elephone 1ill .B!!B/) #o1ile phone .:rameen phone/ an% more &tility 1ill payment fa,ilities are in pipeline5 NCC Bank is mem1er of 6orl% reno6ne% #asterCar% an% "isa International5 #asterCar% an% "isa Car% of NCC Bank for 1oth lo,al an% international &se are in market5
Chapter
49
NCCBL
Chapter
41
Loans &A vances System of NCCBL
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
7eneral loan Small Loan Scheme SpecialiGe Loans of NCCBL
NCCBL
Chapter
42
*#" LOAN AN+ A+3ANCES6 #aking a%van,es is the primary f&n,tion of a 1ank5 A ma0or portion of its f&n%s is &se% for this p&rpose an% this is also the ma0or so&r,es of 1ank>s in,ome5 Loans are the right to re,eive payment or an o1ligation to make payment on %eman% or at some f&t&re time on a,,o&nt of the imme%iate transfer of goo%s .se,&rities/5 Loans are the largest asset item) 6hi,h generally a,,o&nt for half to almost three' @&arters of the total val&e of all 1anks assets5 *#$ -4%ES O0 LOANS AN+ A+3ANCES A 1ank>s loan a,,o&nt typi,ally is 1roken %o6n into several gro&ps of similar type loans5 !he Loan an% A%van,es ma%e 1y the ,ommer,ial 1anks ,an 1roa%ly 1e ,lassifie% into three .8/ ,ategories5 A5 Continuous Loan6 !hese are those a%van,es 6hi,h %o not have any set s,he%&le for %ra6ing or %is1&rsement 1&t &s&ally have a terminal %ate of f&ll a%0&stment or repayment5 E;ampleC Cash Cre%it .CC/) Over <raft .O</ NCCBL allo6s ,re%its to in%ivi%&als Bfirms B,ompanies to help their 1&siness in the follo6ing ,ategoriesC B5 -erm Loan6 !hese are loans 6hi,h have a spe,ifi, term for repayment as spe,ifie% in the loan agreement5 E;ampleC Loan .:eneral/) !ransport Loan) *ro0e,t Loan) Lease +inan,ing) Do&se B&il%ing Loan an% Other Loan et,5 C5 +eman Loan6 !he loan 6hi,h 1e,ome paya1le after serving %eman% noti,e 1y the 1ank ,on,erne% are terme% as <eman% Loan5 E;ampleC LI#) L!R) *A<) Loan against *a,king Cre%it) Loan against Investment et,5 *#' 3ARIO.S LOANS O0 NCCBL AN+ -1EIR %OSI-ION *#'#" Cash Cre it 8CC56 A Cash Cre%it .CC/ is an arrangement 1y 6hi,h the ,&stomer is allo6e% to 1orro6 money &p to a limit5 !his is a permanent arrangement an% the ,&stomer nee% not %ra6 the san,tione% amo&nt at on,e) 1&t %ra6 the amo&nt as an% 6hen re@&ire%5 !hey ,an p&t 1a,k any s&rpl&s amo&nt) 6hi,h they may fin% 6ith them5 !h&s Cash Cre%it .CC/ is an a,tive an% r&nning a,,o&nt) 6hi,h %eposits an% 6ith %ra6ls may
NCCBL
Chapter
48
1e affe,te% fre@&ently5 Interest is ,harge% only for the amo&nt 6ith%ra6n an% not for the 6hole amo&nt ,harge%5 If the ,&stomer %oes not &se the ,ash ,re%it .CC/ limit to the f&ll e;tent) a ,ommitment ,harge is ma%e 1y the 1ank5 !his ,harge is impose% on the &n&tili(e% portion of Cash Cre%it .CC/ only5 Cash Cre%it .CC/ provi%es an elasti, form of 1orro6ing sin,e the limit fl&,t&ates a,,or%ing to the nee%s of the 1&siness5 Cash Cre%its .CC/ are the most favorite mo%e of 1orro6ing 1y large ,ommer,ial an% in%&strial ,on,erns in o&r ,o&ntry5 Cash Cre%it .CC/ arrangements are &s&ally ma%e against the se,&rity of ,ommo%ities hypothe,ate% or ple%ge% 6ith the 1ank5 a5 Cash Cre it 81ypothecation56 !his type of ,re%it is allo6e% to the tra%ers an% in%&strial 1orro6ers for promoting tra%e an% ,ommer,e an% in%&stries5 In ,ase of hypothe,ation the possession of goo%s is not given to the 1ank5 !he goo%s remain at the %isposal an% in the go %o6ns of the 1orro6er5 !his is given a,,ess to goo%s 6henever it so %esires5 !he 1orro6er f&rnishes perio%i,al ret&rn of sto,k 6ith the 1ank &5 Cash Cre it 8%le ge56 Allo6e% for promoting tra%e) ,ommer,e an% in%&stries of the ,o&ntry against ple%ge of sto,k in tra%e &n%er Bank>s ,ontrol5 In ,ase of the ple%ge) the goo%s are pla,e% in ,&sto%y of the 1ank 6ith its name on the go %o6n 6here they are store%5 !he 1orro6er has no right to %eal 6ith them5 Cash Cre%it .CC/ of NCCBL for last five years .2999'299?/ Amo&nt in #illion !k5 2999 1482 2991 1219 2992 2998 22?8 2?9A -a&le H ")C Annual Report $DDDE$DD) 299? 2778
NCCBL
Chapter
as! redit (
$000 2500 ,mount in million Ta&a 2000 266$ 1500 15$2 1000 500 0 2000 2001 2002 Year 200$ 2004 1%10 224$
4?
)
0igure H ": Over the year NCCBL>s ,ash ,re%it in,rease%5 Reason 1ehin% this is N they provi%e% @&ality servi,es to their ,&stomers an% other thing is' 1&siness people &n%erstoo% the &sef&lness of this type of a%van,es5 Interest rate of ,ash ,re%it of NCCBL is O1?54I5 *#'#$ Over raft 8O+56 Over%raft .O</ is an arrangement 1et6een a 1anker an% its ,&stomer 1y 6hi,h the latter is allo6e% to 6ith%ra6 over his ,re%it 1alan,e in the ,&rrent a,,o&nt &p to an agree% limit5 !his is only a temporary a,,ommo%ation &s&ally grante% against se,&rities5 !he 1orro6er is permitte% to %ra6 an% repay any n&m1er of times) provi%e% the total amo&nt over%ra6n %oes not e;,ee% the agree% limit5 !he interest is ,harge% only for the amo&nt %ra6n an% not for the 6hole amo&nt san,tione%5 A ,ash ,re%it is %iffers from an over%raft in one respe,t5 A ,ash ,re%it is &se% for long term 1y 1&sinessmen in %oing reg&lar 1&siness 6hereas over%raft is ma%e o,,asionally an% for short %&ration5 !here are t6o kin%s of over%raft5 i/ Se,&re% over%raft ii/ nse,&re% over%raft a5 Secure over raft6 Se,&re% over%rafts are loans 6hi,h have ,ollateral atta,he% to them in the form of a lien5 A lien is a monetary ,laim against a property to 1e f&lfille% 1efore repeat o6nership ,an take pla,e5 Se,&re% over%raft %ivi%e% into t6o forms5 !here areC ' a/ Se,&re% over%raft finan,ial o1ligation .SO<'+O/) 1/ Se,&re% over%raft general .SO< :eneral/5
2407
Chapter
44
15 SO+ 80O56 Allo6e% against finan,ial o1ligation .Like' +<R) SSS et,5/ for promotion of e,onomi, an% 1&siness a,tivities5 25 SO+ 87eneral56 :enerally allo6e% to the tra%ers for 1&siness promotion an% e,onomi, a,tivities5 In ,ase of SO< .:eneral/) 1ank keep the lan% as ,ollateral5 &5 .nsecure over raft6 Banks) sometimes) grant &nse,&re% over%raft for small amo&nt to ,&stomers having ,&rrent a,,o&nt 6ith them5 S&,h ,&stomers may 1e government employees 6ith fi;e% in,ome or tra%ers5 nse,&re% over%rafts are permitte% only 6here relia1le so&r,e of f&n%s are availa1le to a 1orro6er for repayment5 Over%raft of NCCBL for the year 2999'299? Amo&nt in #illion !k5 2999 1778 2991 2992 2998 299? 1221 124A 1218 292A !a1le N 14C Over raft 8O+5C So&r,eC Ann&al Report 299?' 2999
-"erdraft (-D)
2500 ,mount in million Ta&a 2000 1500 1%57 166$ 1000 500 0 2000 2001 2002 Year 200$ 2004 1%1$ 20%7
+ig&re N 12C Over raft 8O+5 !his %iagram in%i,ates that NCCBL>s ,&stomers> ,ooperation 6as satisfa,tory level5 !hat>s 6hy it>s in,rease% over the last five years5 *#'#' Special 1ousing Loan Scheme 8S1LS5 Do&sing is one of the prime nee%s of mankin%5 Every1o%y has a %esire to have a %6elling ho&se of his o6n5 In the past man ha% to %epen% on his personal re,o&rses) Basset to ,onstr&,t a ho&se5 B&t in the present %ays) the s,enario is
12%1
NCCBL
Chapter
47
%ifferent5 #&,h ,ompany has ,ome for6ar% to finan,e in the ho&sing se,tor5 *eople ,an no6 easily finan,e from these organi(ation5 !he ho&sing se,tor ,an a,t as a Jlea% J se,tor in the e,onomy ,ontri1&ting to all ro&n% e,onomi, %evelopment in the ,o&ntry5 !his aspe,t an% potential of the ho&sing se,tor is 6ell re,ogni(e% 1y the government an% as 6ell as private se,tor as an opport&nity5 Dome1&yers in the ,o&ntry are still primarily %e1t averse an% opt for e;ternal f&n%ing only as a last resort5 E,onomi, %evelopment in Bangla%esh has 1ro&ght in,rease% &r1ani(ation) 6hi,h has also affe,te% the profile of ho&sing %eman% at the ma,ro level5 r1an pop&lation is e;pe,te% to in,rease f&rther 6ith a rise in the &r1ani(ation levels an% in pop&lation5 !his implies that %eman% for ho&sing 6o&l% in,rease at a faster pa,e in &r1an area in the short to me%i&m term as the preferen,e for %e1t as an a,,epta1le means of f&n%ing 1e,omes more pop&lar 6ith people5 By sighting this 1&siness tren% NCC Bank Lt% has intro%&,e KSpe,ial Do&sing Loan S,hemeL5 So far the market s,enario there are other ,ompetitors in the market5 !here are spe,ial ho&sing finan,e provi%ersC Like stating O6ne% DB+C .Do&sing +inan,e Corporation/) <elta Bra, Do&sing .<BD/) National Do&sing +inan,e .ND+IL/) I<LC an% there are 1anks5 Loans allo6e% to the Bank Employees for p&r,hase B,onstr&,tion of ho&se shall 1e hea%e% Staff Loan .1BLES-A00/5 Interest rate of this loan is at 1ank rate 1&t minim&m O AI simple5 Operation 0lo9 of -he S1LS *reliminary ,onversation 1et6een offi,er an% ,lient Re,eiving %o,&ments O1taining opinion5 O1taining reports from 1ank an% referee5 *reparation of proposal5 *roposal ,he,king5 Iss&ing san,tion letter Re,eiving san,tion letter5 #ortgage of approve% property5 <is1&rsement monitoring5 Re,overy monitoring5 %urpose Of the Loan
NCCBL
Chapter
4A
*&r,hase of ho&se an% apartment5 Do&se Constr&,tion5 E;tension 6ork of the Do&se5 Eligi&ility to avail the loan Servi,e hol%erB*rofessionalB 1&sinesspersons having s&ffi,ient so&r,es of in,ome to repay the loan are eligi1le for the loan5 Bank ,onsi%ers the ,lient>s in,ome) @&alifi,ation) asset an% loan e;pos&re) val&e of se,&rity) savings history e5 t5 ,5 Amount of the Loan !he limit of the loan amo&nt is from!k4995 999BQ to 49)99)999BQ5 Bran,h has no a&thority to san,tion any amo&nt of loan5 Dea% offi,e gives the f&ll san,tion5 !he loan ratio is A9C 895 Rate of interest & Other Charges Interest rate' 18I *5 A5 s&10e,t to ,hange 6ith market sit&ation5 *enal Interest' O1I per month 6ill 1e ,harge% on %efa&lte% amo&nt .#inim&m !k199BQ/5 <o,&mentation ,harge' O 1I of loan amo&nt to 1e reali(e% on a,,eptan,e of the amo&nt5 3ali ity !his s,heme allo6s getting the long'term loan) 4 years to 14 years) 6hi,h is ,onvenient to the ,lient5 /o e of +is&ursement One ,an avail %is1&rsement in one or more installments %epen%ing on stat&s of the e@&ity an% progress of ,onstr&,tion5 <is1&rsement 6ill 1e ma%e &pon o1taining satisfa,tory legal opinion an% te,hni,al report on the pro0e,t5 Bank makes a %is1&rsement s,he%&le5 A,,or%ing to that s,he%&le %is1&rsement 6ill o,,&r5 After ,ompleting spe,ifi, part 1ank go for inspe,tion then %is1&rse the amo&nt5 /o e of Repayment By monthly e@&al installment5 +or p&r,hase of flatBho&se the ,lient may en0oy ma;im&m 7 months gra,e perio% from the %ate of availing of the loan5 Repayment 6ill start from the Ath month of availing the loan an% the entire loan 6ill 1e a%0&ste% 6ithin the vali%ity perio%5 +or ,onstr&,tion of the 1&il%ing the ,lient may en0oy ma;im&m 12 months gra,e perio% from the %ate of availing the loan5 Repayment 6ill start from the 18th month of the loan an% the entire loan 6ill 1e a%0&ste% 6ithin the vali%ity perio%5
NCCBL
Chapter
43
Security E@&ita1le mortgage of the propose% flatBDo&se5 +or p&r,hasing apartment or ho&se ,onstr&,tion .Fhere in%ivi%&al gives the property to %eveloper/) in that ,ase tripartite agreement among 1ank) 1orro6er an% %eveloper5 *o6er of attorney to the 1ank that) if 1orro6er ,annot repay the loan) o6nership of the property transfer to 1ank 6itho&t ,o&rt or%er5 *ost %ate% ,he,k ,overing the loan amo&nt of the 1orro6er>s ,&rrent a,,o&nt maintaine% 6ith the finan,ing 1ran,h to 1e %eposite% in a%van,e5 Necessary +ocuments 0or S1LS #emoran%&m of %eposit of title %ee%5 !ripartiteB+o&r partite agreement5 <5 *5 Note5 Letter of arrangement5 Letter of %is1&rsement5 Letter of g&arantee5 Letter of a&thority to %e1it a,,o&nt of the 1orro6er 6ith in,i%ental an% other ,harges5 Loan agreement5 Letter of &n%ertaking5 Letter of ,ontin&ity5 Irrevo,a1le *o6er of attorney Do&se B&il%ing Loan of NCCBL for 2999'299? Amo&nt in #illion !k5 2999 29? 2991 229 2992 2998 283 8A4 -a&le H "<6 Annual Report $DDDE$DD) 299? ?22
.ouse %uildin# /oan

450 ,mount in million Ta&a 400 $50 $00 200 100 50 0 2000 2001 2002 Year 200$ 2004 204 220 2$8 150 $75 42% 250
0igure H $"
NCCBL
Chapter
42
*#'#) Lease 0inancing An entreprene&r) &n%er this s,heme) may avail of the lease fa,ilities to pro,&re in%&strial ma,hinery .6itho&t having to p&r,hase it 1y %o6n payment/ 6ith easy repayment s,he%&le5 !he ,lients also get spe,ial re1ate in their in,ome'ta; payment &n%er the s,heme5 Lease finan,ing is one of the most ,onvenient long term so&r,es of a,@&iring ,apital ma,hinery an% e@&ipment5 It is a very pop&lar s,heme 6here1y a ,lient is given the opport&nity to have an e;,l&sive right to &se an asset) &s&ally for an agree% perio% of time) against payment of rent5 Of late) the lease finan,e has 1e,ome very pop&lar in almost all the ,o&ntries of the 6orl%5 An o1vio&s a%vantage of the lease is to &se an asset 6itho&t having to 1&y it5 !he lessee is o1ligate% to make lease payments &ntil the e;piration of the lease agreement) 6hi,h ,orrespon%s to the &sef&l life of the assets5 In a ,apital s,ar,e e,onomy like o&rs) Lease +inan,ing is s&ita1le for firms to a,@&ire Capital #a,hinery) E@&ipments) #e%i,al Instr&ments) an% A&tomo1iles et,5 An% there1y employ their o6n reso&r,es more a%vantageo&sly in some other investments5 Lease finan,ing also helps a firm to reap signifi,ant e,onomi, 1enefit thro&gh ta; saving an% 1y re%&,ing the risk of the e@&ipments 1e,oming o1solete %&e to the te,hnologi,al a%van,ement5 Lease +inan,ing of NCCBL for 2999'299? Amo&nt in #illion !k5 2999 A1 2991 24 2992 2998 198 32 -a&le H "'C Annual Report $DDDE$DD?
/ease $inancin#
125 ,mount in million Ta&a 100 75 50 25 0 2000 2001 2002 Year 200$ 2004 71 %5 10$
299? 39
82
0igure H ",
80
Chapter
79
NCC Bank Lt%5 has intro%&,e% the lease finan,e 6ith the follo6ing o10e,tivesC !o assist the gen&ine an% ,apa1le entreprene&rs for a,@&iring Capital #a,hinery an% E@&ipments to &n%ertake enterprises 6itho&t e@&ity !o en,o&rage the ne6 an% e%&,ate% yo&ng entreprene&rs to &n%ertake pro%&,tive vent&re an% %emonstrate their ,reativity an% there1y parti,ipate in the national %evelopment5 !o parti,ipate in the in%&strial %evelopment of the ,o&ntry5 Lease finan,e is &tili(e% mostly in 6estern ,o&ntry5 !he largest leasing in%&stry>s ,o&ntry is SA) 6here one thir% .1B8/ of total 1&siness investment &se% 1y lease finan,e5 In the year 1237 investment of lease finan,e 6as 29 1illion S <ollar in SA5 B&t in o&r ,o&ntry) lease finan,e 6as not that m&,h pop&lar ten .19/ years ago5 Last 4'7 years) 1&siness people &n%erstoo% the &sef&lness of lease finan,e5 B&t) investment on this lease finan,e of NCCBL is not in,rease% that m&sh5 !hey sho&l% give more attention to this prospe,tive area of investment) from 6here they ,an earn a han%some amo&nt of interest 1&t it is more se,&re%5 Be,a&se of the o6nership of lease items 1elongs to the 1ank5 *#'#* %ro(ect Loan NCC 1ank Lt% has their pro0e,t loan s,heme5 !ho&gh they %o not invest in pro0e,t loan e;tensively 1&t no6 they are planning on pro0e,t loan5 Be,a&se pro0e,t loan is h&ge investment an% it ,ompletely %epen%s on s&,,ess of the pro0e,t for that reason 1ank al6ays keeps eye some ma0or fa,tor 1efore invest on pro0e,t loan5 Before invest on pro0e,t loan Bank al6ays 6ho is the people involves in the pro0e,t5 Se,&rity stan%ar% of the 1orro6er5 !hen 1ank look for the feasi1ility report of the pro0e,t5 Borro6er has to ,ompletely sho6 the feasi1ility report to the hea% offi,e5 In the feasi1ility report 1orro6er has to sho6 the 6hat the mission of the pro0e,t) 6ho are the target ,&stomer) ,omparative analysis of the pro0e,t 6ith other same pro0e,t) ho6 the pro0e,t meets the %eman% of the target ,&stomer) for 6hi,h p&rpose the loan is asking for) %etail information of the pro0e,t operation) %etail pri,e list of the e@&ipment) appro;imate repayment planning 1y the 1orro6er5 Bran,hes %o not have any a&thority to san,tion any amo&nt of loan for pro0e,t loan5 Bran,h ,an only asses the pro0e,t feasi1ility) eval&ate the ,lient ,he,k the ne,essary papers an% ,olle,t it from the ,lient5 After getting all the ne,essary papers 1ran,h makes a proposal for the loan an% sen% it to the hea% offi,e5 Dea% offi,e then re'eval&ate the proposal 6ith ne,essary papers5 !hen hea% offi,e again inspe,ts the pro0e,t5 After getting all the eval&ation hea% offi,e then sen% the
Chapter
71
san,tion letter to the 1ran,h5 Loan amo&nt then %is1&rse from the 1ran,h5 Bran,h has to %o the reg&lar monitoring &ntil the 6hole loan amo&nt is repai%5 +etail information of pro(ect Loan Name an% a%%ress of the ,lient *arti,&lars of the %ire,tors .<ire,tors per,entage of the share in the pro0e,t/ <etail of the approve% fa,ility Nat&re of the fa,ility' !erm loan Amo&nt of san,tione% loan *&rpose of the loan N for 6hi,h spe,ifi, reason ,lient 6ants the loan e5 ;'for p&r,hasing ma,hinery5 Rate of interest'17I par Ann&m) at @&arterly rest) s&10e,t to ,hange from time to time :ra,e perio%' after %is1&rsement installment 6ill not ,o&nt from the follo6ing month5 After ,ompleting the pro0e,t installment perio% 6ill 1e ,o&nt from that month in 6hi,h month the pro0e,t is ,omplete an% start its operation5 "ali%ity of the loan'means ho6 long it 6ill take to repay the loan5 #o%e of a%0&stment' &s&ally for pro0e,t loan installment ,o&nt @&arterly) 1e,a&se of 1&lk of installment5 A,,or%ing to the loan amo&nt 1ank ,al,&lates ho6 many installments nee%e% for the repayment of the loan amo&nt an% ho6 many years takes for the repayment) in,l&%ing the gra,e perio%5 Se,&rity of the fa,ility' *rimary se,&rity' for this sort of se,&rity 1ank takes the hypothe,ation of e;isting fa,ility against 6hi,h the loan is taken5 Se,on%ary Se,&rity' +or this se,&rity 1ank takes lan% or fi;e% assets as ,ollateral5 *ersonal g&arantee of the %ire,tors of the ,ompany 0ointly an% severally +irst ,harge on the ,ompany>s asset - 1ook %e1ts to 1e ,reate% 6ith the registere% of 0oint sto,k ,ompanies Registere% irrevo,a1le general Rpo6er of attorney to 1e o1taine% from the mortgagor B1orro6er to sell the mortgage% properties) intervention of the ,o&rt s&al ,harge %o,&ments as per 1ank>s ,re%it norms Necessary +ocuments for the %ro(ect Loan !a; I%entifi,ation N&m1er .!IN/5 Certifi,ate5 CIB .C&stomer Information Bea&ro/ response form5 *arty>s appli,ation5 Cre%it proposal an% approval form5 List of ,ollateral se,&rities5 +easi1ility report5 !ra%e li,ense5 #emoran%&m - Arti,les of the asso,iation5 Resol&tion5 Net 6orth ,al,&lation of 1&siness - in%ivi%&al5 Legal
Chapter
72
opinion5 "al&ation assessment5 S&otation5 <ee% of lease agreement5 CIB in@&iry form 1) 2 an% 8 !his is also an important instr&ment of term loan5 !his S,heme ,overs the follo6ing areas ' *lasti, In%&stry) #e%i,al servi,e provi%er et,5 !he spe,ial ,hara,teristi, is N this type of loan innovates only for a parti,&lar pro0e,t) as I mention a1ove5 +e6 years ago it 6as not so m&,h pop&lar5 B&t no6 a %ay it is playing in an important role) 6ho 6ants set &p those pro0e,ts 6hi,h 6ill 1e a1le to serve the so,iety si%e 1y si%e to the nation5 Interest rate of pro0e,t loan of NCC Bank is O 1?I5 *ro0e,t Loan of NCCBL for 2999'299? Amo&nt in #illion !k5 2999 14A 2991 1?8 2992 2998 81? 113 -a&le H $D6 Annual Report $DDDE$DD) 299? 1A2
Pro0ect /oan
$50 ,mount in million Ta&a $00 250 200 150 157 14$ 100 50 0 2000 2001 2002 Year 200$ 2004 $14
0igureE$$ *#'#, -ransport Loan Scheme NCC Bank Lt% 6as an investment ,ompany 1efore the ,onversion in a 1ank5 So they have goo% i%ea a1o&t lease finan,ing5 !ransport loan is fallen &n%er the lease finan,ing) tho&gh it is ,alle% transport loan 1&t it is a,t&ally fallen &n%er leasing term an% ,on%ition5 NCC Bank Lt% %oes not have any ,ar loan s,heme for in%ivi%&al ,lients) they ha% this s,heme 1&t the s,heme is ,ompletely stoppe% for the time 1eing5
118
17%
Chapter
78
*ro,ess of transport loan is more or less similar to pro0e,t loan5 Borro6er has to apply for the loan in pres,ri1e% 1ank appli,ation form5 In the appli,ation form 1orro6er m&st mention 6hi,h vehi,le he 6ants to 1&y an% 6hat>s the @&antity5 Borro6er also has to provi%e %etail pri,e list of the vehi,le) ins&ran,e paper for ea,h vehi,le) possi1le repayment planning of the loanG list of ,ollateral) list of hypothe,ation of se,&rities an% other ne,essary papers %epen%s on ,lients an% n&m1er of vehi,les5 After getting all ne,essary papers an% fiel% inspe,tion 1ran,h makes a proposal for the loan an% sen% it to the hea% offi,e5 Dea% offi,es then again ,he,ks the ne,essary papers an% %o the fiel% inspe,tion5 After inspe,tion if Dea% Offi,e thinks that for san,tion of the loan they nee% more papers an% se,&rities) 1orro6er has to provi%e those papers5 Bran,hes &s&ally %o not have any a&thority to san,tion any amo&nt of loan amo&nt 1ran,h only %is1&rse the amo&nt an% %o the reg&lar monitoring 6hether the vehi,le is p&r,hase%) is they @&otation mat,h 6ith the real one) vehi,le is in the ro&te an% more importantly 1orro6er is repaying the installment reg&larly5 +etail Information Of -ransport Loan Name an% a%%ress of the 1orro6er -Company Nat&re of limit'Loan .!ransport/ *&rpose of the loan'!o pro,&re vehi,le for in%&strial or lo,al transport5 Nat&re of 1&siness of the 1orro6er'!ransport 1&siness5 Amo&nt of the limit' the loan amo&nt #argin' 49I ,ash against ea,h vehi,le <e1t'E@&ity ration'49C 49.Bank ,ash49I an% *arty ,ash 49I/ "ali%ity'No of months .Cal,&late% 1y the 1y the 1ank ho6 many months it 6ill take to repay the loan against ea,h vehi,le/ from the %ate of %is1&rsement against ea,h vehi,le5 Rate of interst'17I per ann&m) at @&arterly rest) s&10e,t to ,hange a,,or%ing to market sit&ation5 #o%e of %is1&rsement'!he loan to 1e prefera1ly %is1&rse% after getting of vehi,le5 If a%van,e payment is ,onsi%ere% as sine'@&a'non the payment to 1e ma%e %ire,t to respe,tive seller thro&gh payment or%er after reali(ing party>s f&ll e@&ity 6ith instr&,tion to %eliver the vehi,le to the 1ank>s representative5 All other ,osts ins&ran,e premi&m) ro&te permit et,5 to 1e 1orne 1y the 1orro6er5 Sale re,eipt to 1e iss&e% in the name of Bank a,,o&nt party5 #o%e of repayment'from %aily 1&s fare pro,ee%s - minim&m of ,ertain amo&nt of money against ea,h vehi,le - 1alan,e if any l&mp s&mp amo&nt 6ithin vali%ity5
NCCBL
Chapter
7?
Repayment starts from the se,on% months from the %ate of %is1&rsement of loan against ea,h vehi,le5 Se,&rity' A5 s&ally 1ank prefer ple%ge of +<R .Or any other finan,ial o1ligation that the party has in the 1ank/ against ea,h vehi,le .#inim&m !k 15 99 la,/ an% also a%%itional +<R for ,ertain amo&nt of money5 Dypothe,ation of vehi,les %&ly registere% in the name of the 1ank .1 st party/ an% the 1orro6er &n%er s&pervision of 1ank offi,ial %&ly ,omplying all the formalities of registration 6ith motor vehi,le %epartment 6ith ,omprehensive ins&ran,e ,over in the name of 1ank an% 1orro6er at 1orro6er>s ,ost5 If the ,lient %efa&lt s payment of t6o ,onse,&tive installments) the loan 6ill 1e re,alle% 6ith &p to %ate interest imme%iately %&ly notifying5 !he 1ank offi,ial 6ill inspe,t the vehi,le at every month interval to see that the vehi,les are on ro&te5 !he vehi,le &n%er this limit m&st 1ear the 6or% prominently on it>s 1o%y as I -his 3ehicle Is un er -he Cre it Limit Of NCC Bank Lt 8/irpur Branch5I E;,ess over limit is stri,tly prohi1ite% even after a,,r&al of @&arterly interest5 Balan,e ,onfirmation m&st 1e o1taine% reg&larly on the 89 th E&ne an% 89th <e,em1er of ea,h ,alen%ar year5 Before %is1&rsement 1orro6er has to sign in the san,tion letter of the hea% offi,e to %e,lare that he is a,,epting the term an% ,on%ition5 Bank has right to ,an,el) alter) amen% the terms an% ,on%ition5 !he 1orro6er m&st avail the loan t6o months from the %ate of ,omm&ni,ation for san,tionG other6ise the loan 6ill 1e ,an,elle%5 Necessary +ocuments 0or -ransport Loan CIB .C&stomer Information Bear&e/ response form) *arty>s appli,ation) CIB in@&iry form 1) 2 an% 85 <5 *5 Note5 Letter of %is1&rsement) Letter of arrangement5 Letter of a&thority) Letter of hypothe,ation) Letter of lien5 !ransport Loan of NCCBL for 2999'299? Amo&nt in #illion !k5 2999 AA 2991 78 2992 2998 ?2 ?? -a&le H $"6 Annual Report $DDDE$DD) 299? ?7
NCCBL
Chapter
74
Transport /oan
100 ,mount in million Ta&a 80 60 40 20 0 2000 2001 2002 Year 200$ 2004 77
6$
4%
0igureE$' *#'#: Other Loans Last t6o years ago NCC Bank intro%&,e% some other loan namely KCons&mer +inan,e S,heme) Small B&siness Loan) Do&se Renovation Loan) *ersonal Loan) Agri,&lt&re Loan) +estival LoanL et,5 !hese loan s,hemes alrea%y 6ell a,,epte% 1y the ho&sehol% in%ivi%&als an% entreprene&rs of small 1&siness5 As a res&lt investment on other loan in,rease% at alarming rate5 In the year 2999'2998 it 6as !k5 in million 1A4) 1?9) 72) 223 respe,tively5 B&t in the year 299? it 6as !k5 in million 27875 A,,or%ing to gro6th of this other loan) 6e ,an say) NCCBL>s a&thority took an e;,ellent %e,ision5 Other Loan of NCCBL for the year 2999'299? Amo&nt in #illion !k5 2999 1A4 2991 1?9 2998 299? 223 2787 So&r,eC Ann&al Report 299?'2999 !a1le N 23 Other Loan 2992 72
44
46
NCCBL
Chapter
77
-t!er /oan
$000 ,mount in million Ta&a 2500 2000 1500 175 228 1000 500 0 2000 2001 2002 Year 200$ 2004 26$6 2000 2001 2002 200$ 2004
140
+ig&re N 82C Other Loan Consumer 0inance Scheme !he S,heme aims at improving the stan%ar% of living of the fi;e% in,ome gro&p5 n%er the s,heme the ,lients may se,&re loan fa,ilities at easy installments to pro,&re ho&sehol% amenities *#'#:#" Small Business Loan Scheme 8SBLS5 NCC Bank Lt% has intro%&,e% this loan for small 1&sinessman an% for entreprene&r5 !his loan a,t&ally is given fore smooth r&nning of the 1&siness not for starting a ne6 1&siness5 Borro6er m&st have to a savings 1ank a,,o&nt an% a ,&rrent 1ank a,,o&nt to sho6 that he has goo% transa,tion 6ith the 1ank5 Any small 1&sinessman 6ho has his o6n shop ,an apply for the loan5 B&sinessman 6ho %oes not have o6n shop they ,an take loan 1&t in that ,ase lan%lor% m&st 1e one of the g&arantor an% 1orro6er has to sho6 that he has an agreement 6ith the lan%lor% in terms of rental of the shop5 Borro6er has to apply to 1ank 6ith 1ank>s pres,ri1e% appli,ation form 6ith ne,essary papers5 Bank then inspe,ts the shop against 6hi,h the 1orro6er has applie% for the loan5 After the inspe,tion 1ran,h makes a proposal an% sen% it to the hea% offi,e for the san,tion5 !he limit of small 1&siness loan is !k199) 999BQ to 499)999BQ5 Bran,h ,an highest approve &p to !k 199)999BQ) after 199)999BQ 1ran,h has to take san,tion from the hea% offi,e5 +etail Information Of Small Business Loan 15 Name an% a%%ress of the shop - o6ner 25 Amo&nt of loan
62
NCCBL
Chapter
7A
85 *&rpose of the loan' for smooth operation of the shop) enlarging of the e;isting 1&siness et,5 ?5 Rate of interest' i5 17I per ann&m at @&arterly rest s&10e,t to ,hange ii5 *enal interest at the rate of 1I per month 6ill 1e ,harge% on %efa&lte% amo&nt .#inim&m !k199BQ/ 45 Other Charges' i5 Servi,eBpro,essing ,harge O1I of the amo&nt of san,tione% to 1e re,overe% at the time of %is1&rsement ii5 Risk f&n% O1I minim&m !=499BQ only shall 1e reali(e% on,e at the time of %is1&rsement5 75 *erio% of time' after ,al,&lating the monthly installment) ho6 many years it 6ill take to repay the 6hole loan amo&nt5 A5 #o%e of repayment' By e@&al monthly installment ,al,&late% 1y the 1ank) starting from the se,on% month of availing of the loan5 #onthly installment has to 1e %eposite% 1y the tenth %ay of the follo6ing month5 If any three installments are not pai%) penalG interest 6ill 1e ,harge% on %efa&lte% amo&nt5 35 #onthly sto,k report %&lly fille% 1y the 1orro6er an% signe% 1y an offi,er of the 1ran,h after physi,al verifi,ation to 1e o1taine%5 25 !he 1orro6er 6ill allo6 the 1ank offi,ial to inspe,t the shopB1&siness at any time5 195 !he 1orro6er 6ill neither sell nor transfer the o6nership of the 1&siness Bshop &ntil 1ank>s %&es are f&lly pai% an% 6itho&t prior 6ritten permissionBNOC from the 1ank 115 Se,&rity' i5 Dypothe,ation of sto,k all goo%s) pro%&,t) ma,hinery of the shop5 ii5 Simple %eposit of original title %ee% of the o6nership of the shop iii5 Bank takes post'%ate% ,he,k of installment amo&nt from the 1orro6er5 N&m1er of installmentQN&m1er of ,he,k5 iv5 *ersonal g&arantee .On 1ank>s pres,ri1e% g&arantee form 6ith a%hesive stamp of !=149BQ/5 Spo&se 6ill 1e the g&arantor if the 1orro6er is a marrie% person5
NCCBL
Chapter
73
Necessary +ocuments 0or Small Business Loan Letter of arrangement5 Letter of %is1&rsement5 <5 *5 Note 5 Letter of hypothe,ation 5 Letter of revival5 "ali% tra%e li,ense 5 :&arantee 1on% on !=149BQ a%hesive stamp as per 1ank>s pres,ri1e% format from t6o g&arantors a,,epta1le to the 1ank5 <e,laration on non'0&%i,ial stamp that 1orro6er ,annot transfer the o6ner ship of the shop &ntil 1ank>s %&es are f&lly pai%5 An% if the 1orro6er ,annot repay the loan 1ank 6ill take physi,al possession of the shop an% %ispose the off the shop in a s&ita1le manner5 n%ertaking to pay monthly installment reg&larly5 *#'#:#$ %ersonal Loan Scheme 8%LS5 *ersonal loan s,heme is one of the most s&,,essf&l pro%&,ts no6 %ays in private 1anking se,tor) 1e,a&se the amo&nt is not so 1ig like pro0e,t or transport loan5 NCC Bank Lt% also has personal loan s,heme5 Salarie% person from any 0o1 ,an apply for the loan5 !his loan is a,t&ally appli,a1le for personal p&rpose like 1&ying home applian,e) e;pen%it&re for marriage ,eremony5 !reatment) st&%y these sort of personal p&rpose5 Only ,riteria for apply this loan is 1orro6er m&st 1e salarie% person) m&st have a savings 1ank a,,o&nt) an% he or she have to have a provi%ent f&n%5 *ro,ess for this loan is very simple after applying 1ran,h makes an inspe,tion then makes a proposal an% sen% it to the hea% offi,e for san,tion5 Range of this loan is !k 19)999BQ to 199)999BQ5 Bran,h ,an highly approve &p to !k 24999BQ5 After the limit of !k24) 999BQ 1ran,h has to take san,tion from the hea% offi,e5 +etail Information Of %ersonal loan Scheme 15 Name an% a%%ress of the 1orro6er 25 Amo&nt of loan 85 *&rpose of the loan' marriage) st&%y) treatment or 1&ying home applian,e5 ?5 Rate of interestC 17I per ann&m at @&arterly rest s&10e,t to ,hange5 45 *enal interest at the rate of 1I per month 6ill 1e ,harge% on %efa&lte% amo&nt .#inim&m !k 199BQ/ 75 Servi,eB*ro,essing ,harge O1I of the loan san,tione% to 1e re,overe% at the time of %is1&rsement5 A5 Risk f&n% O1I of minim&m !k 499BQ shall 1e reali(e% on,e at the time of %is1&rsement5 35 #o%e of %is1&rsementC the loan amo&nt 6ill 1e ,re%ite% to the 1orro6er>s saving a,,o&nt maintaine% 6ith 1ran,h 1y %e1iting his loan a,,o&nt5
Chapter
72
25 #o%e of repayment6 By monthly e@&al installment to 1e %eposite% from the follo6ing month of availing of loan5 #onthly installment ha to 1e %eposite% 1y 19th %ay of the follo6ing month5 If any three installments are not pai% penal interest 6ill 1e ,harge%5 195 "ali%ityC #inim&m Si; months an% ma;im&m three years5 115 Se,&rityC No of post %ate% ,he,k of the installment amo&nt5 i5 *ersonal g&arantee of g&arantor .Bank>s pres,ri1e% g&arantee form 6ith a%hesive stamp of !k 149BQ/ ii5 *ersonal g&arantee of spo&se of the 1orro6er iii5 Letter of a&thority to mark lien on the provi%ent f&n% an% grat&ity of the 1orro6er iv5 Letter of ,onfirmation from the salary %is1&rsing ,ommittee5 Necessary +ocuments 0or %ersonal Loan Scheme Salary ,ertifi,ate) provi%ent f&n% m&st 1e lien5 Salary ,ertifi,ate of the g&arantor5 <5 *5 Note5 Letter of arrangement5 Letter of %is1&rsement5 Letter of g&arantee5 Letter of a&thority to %e1it a,,o&nt of the 1orro6er 6ith in,i%ental an% other ,harges5 Letter of revival5 *#'#:#' 1ome Renovation Loan Scheme 81RLS5 Dome renovation loan is one of the innovative pro%&,ts of NNC Bank Lt%5 !his loan only for those 1orro6er 6ho 0&st ,omplete the ,onstr&,tion of the f&ll 1&il%ing 1&t still there are some 6ork left like plaster of the 1&il%ing) fitting of the 8r% floor of the 1&il%ing) or someone 0&st 6ant to renovate his home 1&t he nee%s a small amo&nt of loan they ,an apply for the loan5 *ro,essing is as simple as small or personal loan5 Borro6er has to apply for the loan in a 1ank>s pres,ri1e% form 6ith photograph of the 1&il%ing5 Bran,h then go for the fiel% inspe,tion to ,he,k 6hether the loan is a,t&ally nee%e%5 After ,ompleting the fiel% inspe,tion 1ran,h makes a proposal for the san,tion of hea% offi,e5 Dea% offi,e 0&st ,he,ks the papers an% sen% the san,tion to the 1ran,h5 Loan amo&nt 6ill 1e %is1&rse% from the 1ran,h5 !he range of the loan is from !k199) 999BQ to 499)999BQ5 Bran,h ,an only approve &p to !k 199)999BQ) a1ove the 1ran,h limit 1ran,h has to get san,tion from the hea% offi,e5
NCCBL
Chapter
A9
+etail Information Of 1RLS 15 Name an% a%%ress of the appli,ant5 25 Amo&nt of loan' !k199) 999BQ to 499)999BQ 85 *&rpose of the loan'Repairing) renovation of the home5 ?5 Rate of interest' i5 17I per ann&m at @&arterly rest s&10e,t to ,hange5 ii5 *enal interest at the rate of 1I per month 6ill 1e ,harge% on %efa&lte% amo&nt .#inim&m !k 199BQ/5 iii5 Servi,eB*ro,essing ,harge O1I of the loan san,tione% to 1e re,overe% at the time of %is1&rsement5 iv5 Risk f&n% O1I of minim&m !k 499BQ shall 1e reali(e% on,e at the time of %is1&rsement5 45 #o%e of %is1&rsement' the loan amo&nt 6ill 1e %ivi%e% in to small part an% the %is1&rsement of the amo&nt 6ill 1e o,,&rring a,,or%ing to that %is1&rse s,he%&le5 Se,on% installment 6ill 1e release% after 1eing f&lly satisfie% that the first installment has 1een properly &tili(e%5 75 #o%e of repayment'By monthly e@&al installment5 Repayment of the installment 6ill 1e start after the gra,e perio%5 #onthly installment has to 1e %eposite% 1y the 19th %ay of ea,h follo6ing month5 If any three installments are not pai%) penal interest 6ill 1e ,harge%5 A5 Se,&rity' i5 E@&ita1le mortgage 1y 6ay of simple %eposit of original title %ee% 6ith ,hain of %o,&ments of the 1orro6er>s property o6ne% 1y appli,ant or 6ife5 Borro6er has to give the f&ll s,he%&le of the property 6ith %etail s,he%&le of the lan% an% 1&il%ing5 ii5 *ost %ate% ,he,k ,overing the loan amo&nt of the 1orro6er>s ,&rrent a,,o&nt maintaine% 6ith the finan,ing 1ran,h to 1e %eposite% in a%van,e5 iii5 *ersonal g&arantee of g&arantor .Bank>s pres,ri1e% g&arantee form 6ith a%hesive stamp of !k 149BQ/ iv5 *ersonal g&arantee of spo&se of the 1orro6er5 v5 Letter of &n%ertaking to pay monthly installment reg&larly5 35 !he repairing Brenovation 6ork m&st 1e %one 6ithin the premise as per estimate s&1mitte% 1y the party 6ith the appli,ation 25 Borro6er has to repay the loan tho&gh he ,annot ,omplete the 6ork for nat&ral ,alamity or san,tione% amo&nt ,annot ,over the 6ork5
NCCBL
Chapter
A1
195 Borro6er ,an not sell) transfer or gift &ntil 1ank>s %&es are f&lly pai% an% he 6ill allo6 the 1ank>s offi,ial to visit the site anytime5 Necessary +ocuments 0or 1RLS E@&ita1le mortgage 1y 6ay of simple %eposit of original title %ee% 6ith ,hain of %o,&ments of the 1orro6er>s property o6ne% 1y appli,ant or 6ife5 Borro6er has to give the f&ll s,he%&le of the property 6ith %etail s,he%&le of the lan% an% 1&il%ing5 <5 *5 Note5 Letter of arrangement5 Letter of %is1&rsement5 Letter of g&arantee5 Letter of a&thority to %e1it a,,o&nt of the 1orro6er 6ith in,i%ental an% other ,harges5 Letter of revival5 *#'#:#) 0estival Small Business Loan Scheme 80SBLS5 !his is one of the innovative pro%&,ts of NCC Bank Lt%5 !he main t6o fa,tor of this loan is this loan f&lly appli,a1le for festival p&rpose an% only for small 1&sinessman5 !he re@&irement of loan is not very high 1&t 6hi,h have 1enefi,ial effe,ts for the small 1&sinessman 6ho re@&ires e;tra finan,e to sto,k the goo%s to ,ope 6ith market %eman% espe,ially %&ring the festival time .Ei%'&l'+itr) Ei%'&l' A(ha) <&rga *&(a/ to r&n their 1&siness smoothly5 !he %is1&rsementBtransa,tion pro,e%&re for festival small 1&siness loan shall 1e is re',y,ling or%er an% %is1&rsement shall 1e stoppe% 14 %ays 1efore the festival %ay an% the %is1&rsement shall start 1efore 1 month of festival5 %roce ure 0or Application Appli,ation in pres,ri1e% form %&lly fille% in an% 1y the appli,ant5 !6o passport si(e photographs %&lly atteste% 1y an offi,er of the 1ran,h5 !hree %imension photographs of the shop to 1e sent 6ith the appli,ation5 Re,ommen%ation 1y the relate% 1&siness asso,iation or so,iety or malik samityB similar 1o%y5 %urpose !o help the gen&ine 1&sinessman having entreprene&rship @&ality an% honesty to meet the e;tra finan,e re@&ire% %&ring the festival5 !o ena1le the small 1&siness ,omm&nity to %o 1&siness 6ith 1ank finan,e an% in,reases their in,ome5 !o ,ontri1&te to6ar%s %evelopment of so,io'e,onomi, ,on%ition of the ,o&ntry5 <iversify 1ank>s len%ing keeping pa,e 6ith the re@&irement of time5 Eligi&ility of the Clients Any gen&ine small 1&siness man having 4 years of e;perien,e 6ith small ,apital 1&t entreprene&rship @&ality 6ith honesty) integrity an% sin,erity5 Small 1&siness 6it no ,ollateral or any other se,&rity to offer against the loan5 !he prospe,tive 1orro6er m&st have a ,&rrent a,,o&nt or 6ill open a ,&rrent a,,o&nt 6ith the
NCCBL
Chapter
A2
1ran,h of the 1ank from 6here he 6ants to avail the loan5 <oing 1&siness) 6hi,h is profita1le in nat&re5 Bank reserves the right to a,,ept or e0e,t any appli,ation 6itho&t assigning any reason5 +iscretionary %o9er #a;im&m amo&nt of loan &n%er this s,heme 6ill 1e !k195 99 la, for any small 1&sinessmen for meeting the e;tra finan,e re@&ire% %&ring the festival5 San,tioning po6er has 1een %elegate% to /anaging +irector6 EA1ove !k 499)999BQ to 19)99)999BQ Branch /anager6 E p to !k 499)999BQ Interest & other ChargesE Interest' O 17I *er Ann&m5 At @&arterly rest) s&10e,t to ,hange5 Appli,ation +ees' !k 499BQ +is&ursement perio <is1&rsement of the loan sho&l% 1e starte% 1efore 8 months of festival an% to 1e restri,te% keeping at least 14 %ays time ahea% of the festival5 Repayment %erio !he loan to 1e repai% 6ithin 8 months of %is1&rsement from the sale pro,ee%s5 !he money 6ill 1e %eposite% in the loan a,,o&nt from the %aily sale pro,ee%s) 6hi,h 6ill 1e starte% imme%iately after %is1&rsement5 !he loan shall 1e a%0&ste% in,l&%ing interest 6ithin 14 %ays after the festival pr earlier5 Security *ersonal g&arantee in 1ank>s pres,ri1e% format to 1e o1taine% from t6o respe,ta1le person of so,iety a,,epta1le to the 1ank5 Dypothe,ation of the sto,k in tra%e5 *ost %ate% ,he,k ,overing the loan amo&nt of the 1orro6er>s ,&rrent a,,o&nt maintaine% 6ith the finan,ing 1ran,h to 1e %eposite% in a%van,e5 An &n%ertaking 1y the 1orro6er in Bank>s pres,ri1e% formant to repay the loan in time5 Necessary +ocuments 0or 0SBLS <5 *5 Note5 Letter of arrangement5 Letter of %is1&rsement5 Letter of g&arantee5 Letter of a&thority to %e1it a,,o&nt of the 1orro6er 6ith in,i%ental an% other ,harges p to %ate tra%e li,ense5 Letter of hypothe,ation5 Simple %eposit of possession %ee% Bagreement or o6nership %ee% of the shop or any other se,&rity a,,epta1le to the 1ank5 Simple %eposit of lease %ee% of agreement 6ith personal g&arantee of the lan%lor% in ,ase of rente% premises5
NCCBL
Chapter
A8
*#'#:#* 0estival %ersonal Loan Scheme 80%LS5 In o&r ,o&ntry or in the s&1',ontinent ,&lt&re religio&s festival is one of the 1iggest o,,asions for the 6hole year5 No matter 6hat the finan,ial sit&ation everyone 0&st 6ants to involve in those o,,asion5 So this is a 1ig o,,asion for 1&sinessmen for their 1&siness p&rpose an% also in%ivi%&al for the festival5 Salarie% person of o&r ,o&ntry ,annot f&lfill %eman% from their fi;e% in,ome at the time of festival .Like Ei%'&l'+itr) Ei%'&l'A(ha) <&rga *&(a/5 <&ring the festival they re@&ire to meet &p their e;penses5 In or%er to ,ater to s&,h emergent nee%s of the servi,e hol%ers) NCC Bank Lt% has intro%&,e% this ne6 s,heme5 %roce ure Of Application Appli,ation n 1ank>s stan%ar% formant %&ly fille% in an% signe% 1y the appli,ant5 !6o re,ent passport si(e photographs %&ly atteste% 1y an offi,er of the 1ank5 Employer>s ,ertifi,ate stating the net salary .after all %e%&,tion/ of the appli,ant5 %urpose !o met emergen,y finan,ial e;penses of the servi,e hol%ers at the time of festival i5 e5 Ei%'&l'+itr) Ei%'&l'A(ha) <&rga *&(a/ Eligi&ility Criteria of the applicant Any permanent salarie% offi,erB employee age% 1et6een 29 to 49 years an% 6orking in any of the follo6ing offi,er to get loan &n%er the s,hemeC :overnment) Semi':overnment A&tonomo&s organi(ation Corporate 1o%ies Ins&ran,e ,ompanies !ea,hers of &niversity) ,ollege an% s,hool #&ltinational Companies5 +iscretionary %o9er #a;im&m !k 14999BQ5 Bran,h manager ,an approve &p to highest limit of the loan5 %erio Of Loan #inim&m 7 months) 1&t not e;,ee%ing ma;im&m 14 months5 Interest & Other Charges Interest' O17 I *5 A5 at @&arterly rest) s&10e,t to ,hange *enal interest'O 1I per month on the %efa&lte% amo&nt of installment 1&t not less than !k 199BQ Appli,ation +ees' !k 199BQ Repayment %erio #inim&m 7 months an% ma;im&m 14 months5 *rin,ipal amo&nt an% interest thereon is re,overa1le in e@&al monthly installment o&t of the salary of the 1orro6er from the follo6ing month of availing of the loan5 !he monthly
Chapter
A?
installment shall 1e fi;e% a,,or%ing to the ten&re of the loan limit) 6hi,h is varia1le on ,ase'to',ase 1asis5 Security Letter of a&thority to mark lien on the appli,ant>s provi%ent f&n%) grat&ity5 *ost %ate% ,he,k ,overing the loan amo&nt of the 1orro6er>s ,&rrent a,,o&nt maintaine% 6ith the finan,ing 1ran,h to 1e %eposite% in a%van,e5 :&arantee 1on% on 1ank>s pres,ri1e% format on !k149BQnon'0&%i,ial stamp5 :&arantee on 1ank>s stan%ar% format from the spo&se of the 1orro6er5 Necessary +ocuments 0or 0%LS <5 *5 Note5 Letter of arrangement5 Letter of %is1&rsement *ost %ate% ,he,k ,overing the loan amo&nt of the 1orro6er>s ,&rrent a,,o&nt maintaine% 6ith the finan,ing 1ran,h to 1e %eposite% in a%van,e5 Letter of ,onfirmation from the salary %is1&rsing a&thority5 An &n%ertaking to repay monthly installment reg&larly in 1ank>s pres,ri1e% form5 *#) NonEperforming loan6 Loans are %esignate% as non'performing 6hen they are pla,e% on non'a,,r&al stat&s or 6hen the terms are s&1stantially altere% in a restr&,t&ring5 Non'a,,r&al means that 1anks %e%&,t all interest on the loans that 6as re,or%e% 1&t not a,t&ally ,olle,te%5 Banks have tra%itionally stoppe% a,@&iring interest 6hen %e1t payments 6ere more than 29 %ays past %&e5 Do6ever) the interpretation of 6hen loans @&alifie% as past %&e varies 6i%ely5 #any 1anks %i% not pla,e loans on non a,,r&al if they 6ere 1ro&ght &n%er 29 %ays past %&e 1y the en% of the reporting perio%5 !his permitte% 1orro6ers to make late partial payments an% the 1anks to report all interest as a,,r&e%) even it 6as not ,olle,te%5 On o,,asion) 1anks 6o&l% len% the 1orro6er the f&n%s that 6ere &se% to make the late payment5 !he impa,t of this pra,ti,e on finan,ial statements is t6ofol%5 +irst) non' performing loans are &n%erstan% on the 1alan,e sheet) so that ,re%it risk is a,t&ally higher than it appears5 Se,on%) interest a,,r&e% 1&t not ,olle,te% in,rease net interest in,ome) th&s overstating NI#) ROA) an% ROE5 "ol&me of non'performing loan of NCCBL for the year 2999'299? .!aka in #illion/ 2999 3745 11 2991 2992 2998 197A5 97 128?5 1? 12485 84 -a&le H $$ Annual Reports $DDDE$DD) 299? 11335 ?9
NCCBL
Chapter
A4
1olume of 2onpe rformin# /oan

1500 1200 Ta&a in Million %00 12$4.14 865.11 600 $00 0 2000 2001 2002 Year 200$ 2004 1067.06
125$.$5
0igureE$) +rom the a1ove fig&re 6e ,an see that NCCBL>s non'performing loan amo&nt in,rease% %ay 1y %ay5 B&t it %oesn>t sho6 the real pi,t&re5 Be,a&se) the total loan an% a%van,es in,rease% then non'performing loan also in,rease% over the pre,e%ing year5 So) no6 6e sho&l% ,on,entrate on the per,entage of non' performing loan against total loan an% a%van,es5 Ratio of Non'*erforming Loan an% !otal Loan an% A%van,es != In million 2999 195 37I 2991 2992 2998 25 32I 25 82I 25 A4I -a&le H $' Annual Reports $DDDE$DD) 299? A5 31I
% of Toatal ,d"ances
12.006 10.006 8.006 6.006 4.006 2.006 0.006
2on-Performin# /oans as % of Total ,d"ances
2000
2001 2002 Year
200$
2004
0igure H $*
1188.4
NCCBL
Chapter
A7
!ho&gh the amo&nt of non'performing loan 6as healthier over the last five .4/ years) 1&t if 6e follo6 the graph 6e ,an see that it %e,line% year to year5 !hat means in the year 2999' 299? amo&nt of non'performing loan 6as !k5 374511) 197A597) 128?51?) 1248584 an% 11335 ?9 million respe,tively) 1&t it 6as 19537I) 2532I) 2582I) 25A4I an% A531I respe,tively of total loan an% a%van,es5 Amo&nt of non'performing loan in,rease% 1&t per,entage of non'performing loan %e,rease%5 It in%i,ates) NCCBL>s personnel re,overe% those loans effi,iently5 !hat>s 6hy this non'performing loan ratio represents a %e,lining graph) 6hi,h is the &ltimate goal of every finan,ial instit&tion5
NCCBL
Chapter
AA
NCCBL
Chapter
A3
0oreign ECchange System of NCCBL

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
,#" ,#$ ,#' ,#)
0oreign Currency +eposit Accounts ECport Import 0oreign Remittance
NCCBL
Chapter
A2
,#" 0OREI7N EFC1AN7E International tra%e ,onstit&tes the main stream of 1&siness a,tivities of NCCBL5 NCCBL offers a f&ll range of tra%e finan,e an% servi,es namely) iss&e) a%vi,e an% ,onformation of <o,&mentary ,re%itG offering an% arranging for6ar% e;,hange rate) pre'shipment an% post'shipment finan,e) negotiation an% p&r,hase of e;port 1ills) %is,o&nting 1ill of e;,hange) ,olle,tion of 1ills) in6ar% an% o&t6ar% remittan,es et,5 NCCBL is also a mem1er of SFI+! - #ONE$:RA#5 Resear,her 6orke% here first of his internship program5 +rom 29B11B2994 to 12B91B29975 Resear,her have learne% the a,tivities of foreign e;,hange %epartment an% help them to perform their %aily affairs5 Resear,her have o1serve% the follo6ings main !asks of the <epartmentC Import B&siness E;port B&siness +oreign Remittan,es Import Import is the pro,ess of p&r,hasing goo%s from overseas5 Import of goo%s into Bangla%esh is reg&late% 1y the ministry of ,ommer,e in terms of the import an% e;port.,ontrol/ a,t 12495 In,ase of Import) the importers are aske% 1y their e;porters to open a Letter of Cre%it5 So that their payment against goo%s is ens&re%5 Letter of Cre it 8 LJC 5 Letter of ,re%it .LBC/ is a payment g&arantee to the seller 1y the 1&yer>s 1ank5 It is in fa,t) a,,re%it ,ontra,t 6here1y the 1&yer>s 1ank is ,ommitte% .on 1ehalf of the 1&yer/ to pla,e an agree% amo&nt of money at the seller>s %isposal &n%er some agree% ,on%itions5 If the ,on%itions of the ,re%it %o not re@&ire for presentation of spe,ifie% %o,&ments) it is ,alle% Clean Cre%it5 On the ,ontrary) if the presentation of spe,ifie% %o,&ments is o1ligatory) the ,re%it is ,alle% a <o,&mentary Cre%it5 -ypes of LJC NCCBL %eals 6ith t6o types of LBC5 !hese areC a/ Sight LBC 1/ <eferre% LBC5
NCCBL
Chapter
39
%arties to Letter of Cre it !he follo6ing parties are involve% to a letter of ,re%it5 A5# O1ligatory parties a/5 Appli,ant !he person or 1o%y .,&stomer of the 1ank/ 6ho re@&ests the 1ank . opening 1ank/ to iss&e letter of ,re%it5 1/5 Opening Bank B Iss&ing Bank !he 1ank that opens B iss&es letter of ,re%it on 1ehalf of the appli,ant Bimporter5 ,/5 A%vising Bank B Notifying Bank !he 1ank thro&gh 6hi,h the LBC is a%vise% to the 1enefi,iary .e;porter/5 %/5 E;porterB SellerB Benefi,iary Benefi,iary of the LBC is the party in 6hose favor the letter of ,re%it is iss&e%5 s&ally they are the seller or e;porter5
B5# Optional *arties .in,ase of nee%/
a/5 Confirming Bank !he 1ank) 6hi,h &n%er instr&,tion in the letter of ,re%it a%%s their irrevo,a1le &n%ertaking to that of the iss&ing 1ank5 It is %one at the re@&est of the iss&ing 1ank having arrangement 6ith them5 !he ,onfirmation ,onstit&tes a %efinite &n%ertaking on the part of ,onfirming 1ank in a%%ition to that of iss&ing 1ank5 1/5 Negotiating Bank !he 1ank that negotiates %o,&ment an% pays the amo&nt to the 1enefi,iary 6hen presente% ,omplying ,re%it terms5 If the negotiation of the %o,&ments is not restri,te% to a parti,&lar 1ank in the LBC normally negotiating 1ank is the 1anker of the 1enefi,iary5 ,/5 *aying Bank B Reim1&rsing !he 1ank nominate% in the ,re%it 1y the iss&ing 1ank to make payment against stip&late% %o,&ments) ,omplying 6ith the ,re%it terms5 Normally iss&ing 1ank maintains a,,o&nt 6ith the reim1&rsing 1ank5 Necessity of LJC In Importer ,an p&r,hase the goo%s %ire,tly &p to the limit ST 4999 from the e;porter 6itho&t opening a LBC thro&gh Bank <raft5 +or releasing the goo%s from the ,&stom a&thority 1y the importer) 1ank 6ill ,ertify5
Chapter
31
Necessary +ocuments An a,,o&nt 6ith NCCBL ,orrespon%ing 1ran,h5 Import Registration Certifi,ate .IRC/5 !a; *aying I%entifi,ation N&m1er .!IN/5 *roforma Invoi,e B In%ent5 #em1ership Certifi,ate5 LCA .Letter of Cre%it Appli,ation/ from %&ly atteste%5 One set of I#* form5 Ins&ran,e ,over note 6ith money re,eipt5 Others .if re@&ire%/ Accounting %roce ure incase of LJC Opening C&stomer ABC LBC #argin ABC Commission ABC on LBC "A! SFI+! Charge +oreign Co&rier Charge Stamp Se,&rities an% *rinting <r Cr Cr Cr Cr Cr Cr Cr
Import 0inancing !he Bank allo6s ,re%its to the importers in the follo6ing formsC Loan against Importe /erchan ise 8LI/56 Allo6e% to retire %o,&ments an% ,lear the ,onsignment form the ,&stoms A&thority taking the goo%s &n%er Bank>s Control5 s&ally) importer fails to retire the %o,&ments in spite of repeate% remin%ers of the 1anker or the 1ank has to ,lear the goo%s importe% &n%er the letter of ,re%it at the re@&est of the importer .1orro6er/5 In 1oth the ,ases) 6hether the importer fails to retire the %o,&ments or re@&est for ,learan,e of goo%s) the o&tstan%ing &n%er *A< or BBE is transferre% to KLoan against Importe% #er,han%ise .LI#/L a,,o&nt an% the over%&e interest from the %ate of a,,ompanying Bills of E;,hange or negotiating %ate to the %ate of transfer to LI# a,,o&nt is ,harge%5 At the time of opening of letter of ,re%it the 1anks o1tain from the importer an arrangement on stampe% paper 6hi,h provi%es for finan,ing an%) if ne,essary) ,learan,e an% storage of goo%s 1y %e1iting importer>s a,,o&nt at their risk an% responsi1ilities5 After ,learan,e) ,onsignments are taken %elivery 1y the importer on f&ll payment of 1ank>s lia1ility5 Normally part %elivery is not allo6e% 6hile on LI# a,,o&nt5 Fhen the importer in part %esires the %elivery) the LI# is ,onverte% into ,ash ,re%it a,,o&nt retaining proper margin an% e;e,&ting ,harge %o,&ments) the %elivery is affe,te% thereafter on o1taining pro rata payment5 Loan against Importe% #er,han%ise .LI#/ of NCCBL .2999'299?/
NCCBL
Chapter
32
2999 289
Amo&nt in #illion !k5 2991 2992 2998 299? 1182 1?24 321 498 !a1le N 14C Ann&al Report 2999'299?
Normally any sort of loan - a%van,e in,rease%) 1&t here in LI# is not in,rease%5 !hese fig&res in%i,ate NCCBL is not en,o&raging the import finan,ing5 Fe kno6 that) interest in,ome is the ma0or part of 1ank>s in,ome an% the ma0or part of interest in,ome ,ome from the import or e;port finan,ing5 So) the NCCBL sho&l% ,on,entrate on this part of a%van,e5 !he rate of interest on LI# O 1?54I5
/oan a#ainst 3mported Merc!andise (/3M)

1500 ,mount in million Ta&a 1200 %00 %$0 600 $00 0 2000 2001 2002 Year 200$ 2004 11$2
1425
8%1
0igureE "= Loan against -rust Receipt 8L-R56 Allo6e% to the importer to retire %o,&ments an% release the ,onsignment from the ,&stoms a&thority against tr&st) re,eipt keeping the go%s &n%er importer>s ,ontrol5 n%er this arrangement) ,re%it is allo6e% to the importer to retire %o,&ments an% release the ,onsignment from the ,&stoms a&thority against tr&st) re,eipt keeping the goo%s &n%er importer>s ,ontrol5 !he rate of interest of NCCBL on L!R O 1?54I5
50$
NCCBL
Chapter
38
Loan against tr&st re,eipt .L!R/ of NCC Bank for the year 2999'299? is N Amo&nt in #illion !k5 2999 2991 2992 2998 299? A22 1114 1348 1297 1333 !a1le N 17C Ann&al Report 2999'299? NCCBL>s L!R in,rease% year to year5 In the year 2999 it 6as A22 million 1&t in the year 299? it 6as 1333 million5 In o&r ,o&ntry most of the goo%s are importe%5 !hat means) 6e spen% a large amo&nt of money in import finan,ing5 So) NCCBL sho&l% 1e taken ne,essary step to ,ontin&e this gro6th of L!R5
/oan a#ainst Trust 4eceipt (/T4)

2000 ,mount in million Ta&a 1600 1200 1%06 800 400 0 2000 2001 2002 Year 200$ 2004 72% 185$ 1888
0igureE"< ECport +oreign E;,hange reg&lation A,t) 12?A no1o%y ,an e;port 1y post an% other6ise than 1y post any goo%s either %ire,tly or in%ire,tly to any pla,e o&tsi%e Bangla%esh) &nless a %e,laration is f&rnishe% 1y the e;porter to the ,olle,tor of ,&stomer or to s&,h other person as the Bangla%esh Bank .BB/ may spe,ify in this 1ehalf that foreign e;,hange representing the f&ll e;port val&e of the goo%s has 1een or 6ill 1e %ispose% of in a manner an% 6ithin a perio% spe,ifie% 1y Bangla%esh Bank E;port se,tion %eals 6ith t6o types of that areC a/5 Ba,k'to'Ba,k LBC) 1/5 E;port LBC5
1115
NCCBL
Chapter
3?
BackEtoEBack LJC Ba,k to Ba,k LBC is a se,on%ary LBC.Ne6 Import LBC/ opene% 1y the seller>s 1ank 1ase% on the original LBC .#aster LBC/ to p&r,hase the ra6 materials an% a,,essories for man&fa,t&ring of the e;port pro%&,t.s/ re@&ire% 1y the seller5 n%er the Ba,k to Ba,k ,on,ept) the seller as the 1enefi,iary of the master LBC offer it as se,&rity to the a%vising 1ank for the iss&an,e of the se,on% LBC5 !he 1enefi,iary of the Ba,k'to'Ba,k LBC may 1e lo,ate% insi%e or o&t si%e the original 1enefi,iary>s ,o&ntry5 In,ase of a Ba,k'to'Ba,k LBC) the 1ank takes no ,ash se,&rity .margin/5 Bank liens the #aster LBC an% the %ra6n 1ill is a san,eB !ime 1ill5 Necessary +ocuments for Opening a BackEtoEBack LJC #aster LBC) "ali% Import Registration Certifi,ate .IRC/ an% E;port Registration Certifi,ate .ERC/) LBC appli,ation an% LCA+ <&ly fille% in an% signe%5 *roforma Invoi,e or In%ent5 Ins&ran,e Cover Note 6ith money re,eipt5 I#* +orm %&ly signe%5 Accounting %roce ure of BackEtoEBack LJC At the time of arrival %o,&ment) the follo6ing vo&,her are passe%C C&stomer>s ABC <r Commission on a,,eptan,e Cr
At the time of payment ma%e) 6hen f&n% is at han%) the follo6ing entries are givenC S&n%ry <eposit #argin on a,,eptan,e <r C&stomer>s Cr If the party is pai% in foreign ,&rren,y) B5 C5 rate is applie% in this regar%5 International <epartment takes the !5 ! - O5 < rate5 If the payment is ma%e to I< in lo,al ,&rren,y in national rate) I< follo6s !5 ! Clean Rate5 Fhen the party is 1e pai%) O< Sight rate is follo6e%5 Fhen f&n% is not availa1le) the follo6ing "o&,hers are to 1e passe%C OA* .O6n a,,eptan,e *&r,hase/ C&stomer>s ABC <r Cr
NCCBL
Chapter
34
ECporter LJC !he other type of LBC fa,ility offere% 1y NCCBL is e;port LBC5 Bangla%esh e;ports a large @&antity of goo%s an% servi,es to foreign ho&sehol%s5 Rea%yma%e te;tile garments .1oth knitting 6ove/) E&te) E&te ma%e pro%&,t) +ro(en shrimps) !ea are the main goo%s that the Bangla%eshi e;porters e;port to foreign ,o&ntries5 :arments se,tor is the largest se,tors that the lion share of the ,o&ntry>s e;port5 Bangla%esh e;ports a1o&t ?9I of its rea%yma%e garments pro%&,t to SA5 #ost of the e;porters 6ho e;port thro&gh NCCBL are rea%yma%e garment e;porters5 !hey open LBC in 1ran,h to e;port their goo%s) 6hi,h they open against the import LBC opene% 1y their foreign importers5 Necessary +ocuments for Opening a ECport LJC E;port Registration Certifi,ate .ERC/) Bill of E;,hange) Bill of La%ingB Air6ay BillB !r&,k Re,eipt) Commer,ial Invoi,e) Certifi,ate of Origin) #ate Certifi,ate) *a,king List) Ins&ran,e Coverage) Benefi,iary Certifi,ate 6here the e;porter tells a1o&t the goo%s he 6ants to e;port At last the e;porters s&1mits all these %o,&ments along 6ith a letter of In%emnity to the 1ran,h for negotiation5 An offi,er s,r&tini(es all the %o,&ments5 If the %o,&ments are ,lean one) the 1ran,h p&r,hases the %o,&ments on the 1asis of 1anker',&stomer relationship5 !his is kno6n as +oreign <o,&mentary Bill p&r,hase .+<B*/ Accounting %roce ure for 0+B% After p&r,hasing the %o,&ments) the follo6ing entries are givenC Before reali(ation of pro,ee%s +<B* ABC C&stomer>s ABC A%0&stment after reali(ation of pro,ee%s Dea% Offi,e ABC +<B* ABC <r Cr <r Cr
Local ocumentary Bills 0or %urchase 8L+B%5 Fhen e;port is %one in lo,al then importer opens a LBC in his 1ank .asso,iating 1ank/5 Importers import s&pplying A,,essories from his s&pplier .e;porter/ an% it is %one in %eferre% payment5 Importer pays the payment 1y giving LBC to e;porter5 B&t e;porter nee%s ,ash payment as early so e;porter takes ,ash payment from his
Chapter
37
a%vising 1ank against the LBC5 !he a%vising 1ank finan,es the e;porter 29I of the LBC val&e an% takes 19I of the val&e of LBC as interest O 14I5 Accounting %roce ure for L+B% A,,o&nting entries are ma%e for p&r,hasing of lo,al Bill are given 1ello6 L<B* ABC *arty ABC Commission Interest ABC <r Cr Cr Cr
ECC & %C NCCBL allo6s ,re%its to the e;porters to help performing their e;ports &n%er the follo6ing ,ategoriesC ECCC Allo6e% to provi%e 6ith 6orking ,apital for pro%&,tion of items of e;port *C6 Allo6e% to the e;porter for pa,king the goo%s 1efore shipment 0oreign Currency +eposit Accounts A# %rivate 0C Account 8i5 Fitho&t prior approve% of the Bangla%esh Bank open foreign ,&rren,y a,,o&nts may 1e opene% 6ith &s in the names ofC 8a5 Bangla%esh Nationals resi%ing a1roa% 8&5 +oreign nationals resi%ing a1roa% or in Bangla%esh or in Bangla%esh an% also foreign firms registere% a1roa% an% operating in Bangla%esh or a1oar% 8c5 +oreign missions an% their e;patriate employees +oreign e;,hange earne% thro&gh 1&siness %one or servi,es ren%ere% in Bangla%esh ,annot 1e p&t into these a,,o&nts5 8ii5 On the a1ove foreign ,&rren,y a,,o&nts maintaine% 6ith &s &n%er this a&thority 6e ,an pay interest or s&,h a,,o&nts provi%e% the a,,o&nts are maintaine% in the form of term %eposits for a minim&m perio% of 29 %ays5 Rates of interest paya1le on s&,h a,,o&nts sho&l% normally 1e ,ompara1le 6ith the rates availa1le on similar a,,o&nts maintaine% a1roa%5 Bangla%esh nationals 6orking an% earning a1roa% inten%ing self'employe% Bangla%eshi migrants pro,ee%ing a1roa% on employment may open foreign ,&rren,y a,,o&nts even 6itho&t initial %eposits5 !hey may open foreign ,&rren,y
NCCBL
Chapter
3A
a,,o&nts 6ith &s even 6itho&t initial %eposits5 !hey may operate the a,,o&nts themselves or nominate other persons in Bangla%esh for this p&rpose5 !he a,,o&nt ,an 1e opene% either in *o&n% Starling S <ollar) <e&ts,he #ark or Eapanese $en or the option of the prospe,tive a,,o&nt hol%er an% maintaine% as long as the a,,o&nt hol%er %esires5 +&n%s lying to the ,re%it of +C a,,o&nts of Bangla%esh nationals ,an 1e &tili(e% for import of goo%s an% ,ommo%ities as per instr&,tions iss&e% 1y the CCI - E an% Bangla%esh Bank +oreign ,&rren,y a,,o&nts in the names of the <iplomati, Bon%e% Fareho&se .%&ty free shops/ li,ense% 1y the C&stom A&thorities may 1e opene% 1y &s 6itho&t prior approval of the Bangla%esh Bank or follo6ing ,on%itionsC a/ Converti1le foreign ,&rren,y .traveler>s Che,ks) <rafts) Che,ks or ,re%it ,ar% settlements/ re,eive% only on a,,o&nt of sale of mer,han%ise may 1e ,re%ite% to these a,,o&nts5 .1/ +oreign e;,hange may 1e remitte% a1roa% only for the p&rpose of import of mer,han%ise 1y 1on%e% 6areho&ses .,/ #onthly statement of p&r,hase) sale an% foreign e;,hange transa,tion relate% thereto along 6ith Bank ,ertifi,ate ,on,erning en,ashment in !aka shall 1e s&1mitte% to the Bangla%esh Bank in pres,ri1e% form +oreign ,&rren,y a,,o&nts in the name of lo,al an% 0oint vent&re ,ontra,ting firms employe% to e;e,&te pro0e,ts 1y foreign %onorBinternational %onor agen,ies may also 1e opene% 1y &s as per terms of the approve% ,ontra,t 6itho&t prior permission of the Bangla%esh Bank5 Only foreign e;,hange re,eive% from the %onorsB%onor agen,ies to meet e;penses in foreign of the pro0e,t ,an 1e ,re%ite% to these a,,o&nts5 All e;penses in foreign e;,hange as per relevant ,ontra,t may 1e met from these a,,o&nts5 !hese a,,o&nts sho&l% 1e ,lose% as soon as the transa,tions relating to the pro0e,t are ,on,l&%e%5 +oreign nationals resi%ing in Bangla%esh are allo6e% to maintain an% operate their foreign ,&rren,y a,,o&nts a1roa%5 +oreign ,&rren,y a,,o&nts may 1e opene% in the names of resi%ent Bangla%esh nationals 6orking 6ith the foreignBinternational organi(ations operating in Bangla%esh provi%e% salary is pai% in foreign ,&rren,y5
NCCBL
Chapter
33
B5 R0C+ *ersons or%inarily resi%ent in Bangla%esh may open an% maintain 6ith &s Resi%ent +or,ing C&rren,y <eposit .R+C</ a,,o&nts 6ith for,ing e;,hange 1ro&ght in at the time of their ret&rn from travel a1roa%5 Any amo&nt 1ro&ght in 6ith %e,laration to C&stom a&thorities in form +#E an% &p to &s T 4999 1ro&ght in 6itho&t any %e,laration) ,an 1e ,re%ite% to s&,h a,,o&nts5 Do6ever) pro,ee%s of e;port of goo%s or servi,es in Bangla%esh or ,ommission arising from 1&siness %eals in Bangla%esh shall not 1e ,re%ite% to s&,h a,,o&nts5 Balan,es in these a,,o&nts shall 1e freely transfera1le a1roa%5 +&n% from these a,,o&nts may also 1e iss&e% to a,,o&nt hol%ers for the p&rpose of their foreign travels in the &s&al manner .i5 e5 6ith en%orsement in *assport an% !i,ket &p to S< 899B' in the form of Cash ,&rren,y notes an% the remaine% in the form of !C/5 !hese a,,o&nts may 1e opener in &s <ollar) *o&n%) Staling) <# or Eapanese $en an% may 1e maintaine% as long as the a,,o&nt hol%ers %esire5 Interest in foreign e;,hange shall 1e paya1le on 1alan,es in s&,h a,,o&nts5 if the %eposits are for a term of not less than one month an% the 1alan,e is not less than S< 1999B' or T 499B' or its e@&ivalent5 !he rate of interest shall 1e 95 24 present less than the rate at 6hi,h interest is pai% on 1alan,e of 1a,k in their foreign ,&rren,y ,learing a,,o&nts maintaine% 6ith the Bangla%esh Bank5 C5 N0C+ N+C< a,,o&nt ,an 1e opene% for a term of 1 month) 8month) 7month an% 12 month in S<) :B*) :erman #ark) Eapanese $en or E RO C&rren,y 6ith any of o&r A< 1ran,hes5 !he minim&m amo&nt of %eposit sho&l% 1e S< 19995 99 or :B* 499599 or e@&ivalent amo&nt in other ,&rren,y5 N+C< a,,o&nt ,an 1e operate% or rene6al 1asis &p to an &nlimite% perio%5 !he a,,o&nt hol%er ,an operate s&,h a,,o&nt as long as he Bshe %esires after the final ret&rn from a1roa%5 A non'resi%ent Bangla%esh national ,an also open an N+C< a,,o&nt 1y %eposit of foreign ,&rren,y earne% in foreign ,o&ntry 6ithin 7 months from the %ate of hisBher final ret&rn from a1roa%5 Interest 6ill 1e a,,r&e% on the 1alan,es of foreign ,&rren,y %eposit in N+C< a,,o&nt at the e@&ivalent rate of interest appli,a1le on E RO ,&rren,y %eposits5 Interest so earne% on the N+C< 1alan,es 6ill 1e ta;'free5
NCCBL
Chapter
32
Balan,e of N+C< a,,o&nt in foreign ,&rren,y ,an 1e remitte% to any ,o&ntry freely5 !his 1alan,e is also Converti1le in B< !aka at the prevailing e;,hange rate5 +5 ;age Earners Bon Non'resi%ent Bangla%esh nationals ,an remit their s&rpl&s earnings in foreign ,&rren,y to their home ,o&ntry for investment in the 4 years term Fage Earners <evelopment Bon% in B< !aka5 S&,h Bon%s ,an 1e p&r,hase% in %enomination of !k5 1)999BQ) !k5 4)999BQ) !k19)999BQ) !k5 24)999BQ) !k5 49)999BQ) an% !k5 1)99)999BQ5 !hese Bon%s are rene6a1le an% attra,tive rate of interest is allo6e% on this investment in B< !aka) present rate of interest is 12I p5 a5 .65e5f5 23'11'2999/ an% rate of interest to 1e &tili(e% in Bangla%esh5 +or premat&re en,ashment of the Bon%s re%&,e% rate of interest is applie%5 <eath risk ins&ran,e 1enefit is allo6e% on the Bon%s of val&e !k5 24)999BQ an% a1ove5 *rin,ipal amo&nt of the investment &n%er this s,heme ,an 1e frilly repatriate% in +C in foreign ,o&ntry5 Interest earner on the Fage Earners <evelopment Bon% is !a; +ree in Bangla%esh5 E5 NI-A NonEresi ent Bangla%esh Nationals ,an open NI!A a,,o&nt 6ith any of o&r A< 1ran,hes for investment of their s&rpl&s earnings in foreign ,&rren,y in the ,apital market of Bangla%esh 1y p&r,hasing shares an% se,&rities5 Shares an% se,&rities form Bangla%esh market ,an 1e p&r,hase thro&gh sto,k E;,hange 1y &sing the 1alan,es of NI!A a,,o&nts5 <ivi%en% earner on the shares - se,&rities an% its sale pro,ee%s ,an 1e %eposite% to NI!A a,,o&nt5 Entire 1alan,e of the NI!A a,,o&nt ,an 1e freely repatriate% at any time in +C to foreign ,o&ntries at the e;isting e;,hange rates5 *rofit B%ivi%en% earne% on NI!A a,,o&nt is in,ome ta; free5 NI!A a,,o&nt ,an 1e operates thro&gh a nominee5 !he ,on,ern Bank maintaining the a,,o&nt ,an also a,t as nominee5
NCCBL
Chapter
29
05 >uota Account i5/ #er,han%ise e;porters are entitle% to a foreign e;,hange retention @&ota of ?9I of repatriate% +5O5B5 val&e of their e;ports5 Do6ever) for e;ports of goo%s having high import ,ontent .lo6'%omesti, val&e a%%e%/ like *OL pro0e,ts in,l&%ing naphtha) f&rna,e oil an% 1it&men) rea%yma%e garments ma%e of importe% fa1ri,s) ele,troni, goo%s et,5 the retention @&ota is A54I of the repatriate% val&e5 ii/ +oreign e;,hange o&t of the retention @&ota may 1e maintaine% in +C a,,o&nts 6ith &s in S <ollar) *o&n% Sterling) <# or Eapanese $en &pon reali(ation of the e;port pro0e,ts5 Bangla%esh in these a,,o&nts may 1e &se% 1y the e;porters for 1onafi%e f&ssiness p&rposes) s&,h as 1&siness visits a1roa%) parti,ipation in e;port fairs an% Seminars) esta1lishment an% maintenan,e of offi,es a1roa%) import of ra6 materials) ma,hineries an% Spares et,5 6itho&t prior approval of Bangla%esh Bank5 iii/ +oreign e;,hange o&t of e;pertise>s retention @&ota may also 1e kept as interest 1earing rene6a1le term %eposit 6ith the in S <ollar) *o&n% Sterling) <# or Eapanese $en) 6ith minim&m amo&nts of s&,h term %eposits may 1e %etermine% in a,,or%an,e 6ith normal 1anking pra,ti,e B normal 1anking ,onsi%eration5 Interest or s&,h %eposits may 1e allo6e% at rates ,ompara1le to the prevailing E RO %eposit rates for the relevant ,&rren,y5 Retention @&ota for servi,e E;portersC Servi,e e;porters may retain 4I of their repatriate% in,ome in foreign ,&rren,y a,,o&nts or as rene6a1le time %eposits in the same manner as rene6a1le time %eposits in the same manner as mentione% a1o&t5 +&n%s ,an 1e %ra6n from these a,,o&nts to meet e;penses for 1ona fi%e 1&siness travel a1roa%5 International Cre%it Car%s may 1e iss&e% to the e;porters against foreign e;,hange retention @&ota5 0OREI7N RE//I-ANCE NCC Bank Lt% is the mem1ers of #oney :ram an% SFI+! net6orks5 sing the servi,es of these glo1al net6ork) non resi%ent Bangla%esh nationals ,an sen% money from a1roa% to their home ,o&ntry 6ithin a fe6 min&tes 6itho&t any risk) Besi%es #oney :ram) NCCBL hase also arrangement 6ith foreign money e;,hange ,ompanies like 5 S5 E5 E;,hange Co5 Re%ha'al'Ansari Co5 et,5 thro&gh
Chapter
21
6hi,h Bangla%eshi e;patriates ,an remit these money to their relatives in home ,o&ntry very easily an% safely &sing SFI+! net6ork5 Remittan,e of NCC Bank Limite% for last five .4/ years .2999'299?/ .Amo&nt in #illion/ 2999 242 2991 2A4 2992 2998 23A 2A2 -a&le H ":6 Annual Report $DDDE$DD)
4emittance (2000-2004)
$75 $00 T&' in Million 225 25% 275 27% 150 75 0 2000 2001 2002 Year 200$ 2004 287 $48
299? 8?3
0igureE$D /oney7ram #oney :ram is represente% in over 114 ,o&ntries an% is availa1le at more then 24)999 lo,ations 6orl%6i%e5 In the SA alone #oney :ram is availa1le at more than 14)999 lo,ations5 Besi%es in the = #oney :ram is availa1le thro&gh 1A99 *ostal Bran,hes an% 499 !homas Cook travel shops making it the =>s largest money transfer net6ork5 +inally &sing the #oney :ram Servi,e ,o&l% not 1e simpler5 All one has to %o is to visit a ,onveniently sit&ate% #oney :ram agent any6here in the 6orl% an% han% over the money they 6ant to sen% their relatives or frien%s along 6ith the one'off transa,ting fee5 Sen%er ,ompletes a KSen%L form an% gets a Re,eipt5 #oney :ram Agent gives a Ref5 No5 Fhi,h has to 1e passe% to the Re,eiver5 Re,ipient the goes to NCC Bank Bran,h in Bangla%esh5 +ills o&t a KRe,eiveL form an% sho6 proper i%entifi,ation5 NCC Bank makers an in@&iry on the #oney :ram ,omp&ter net6ork to o1tain a&thori(ation to pay Re,ipient an% Re,ipient re,eives the f&n%5
Chapter
22
#oney :ram is one of the fastest 6ays to transfer money5 C&stomers &sing #oney :ram ,an sen% or re,eive money &s&ally 6ithin 19 min&tes from any6here in the 6orl%5 At NCC Bank 6e provi%e the Re,ipients imme%iate attention a% %&e ,are5 Fe have ma%e it a point to pay the Re,ipient 6ithin min&tes5 !he Re,ipients nee% not re@&ire having a 1ank a,,o&nt5 Fe %o not levy any e;tra ,harge5 Fe give a 1etter e;,hange rate to the Re,ipient5 !he Re,ipient ,an approa,h any for the NCC Bank 1ran,hes at his ,onvenien,e for payment5 Society 0or ;orl 9i e Inter &ank 0inancial -elecommunication 8S;I0-5 NCC Bank is a mem1er of the so,iety of inter 1ank finan,ial tele,omm&ni,ation s5 ,5 r5 l !hro&gh this fast) se,&re) glo1al ,omm&ni,ation NCC 1ank has gaine% 2? ho&rs ,onne,tivity 6ith A999 finan,ial instit&tion in 299 ,o&ntries for transmission of LBCs) :&arantees) f&ns transfers) payment e5 t5 ,5 SFI+! is a 1ank o6ne% non' profit ,o'operative 1ase% in Belgi&m servi,ing the finan,ial ,omm&nity 6orl%6i%e5 It ens&res se,&re messaging having a glo1al rea,h of 7)?24 Banks an% +inan,ial Instit&tions in 1A3 ,o&ntries) 2? ho&rs a %ay5 SFI+! glo1al net6ork ,arries an average ? million message %aily an% estimate% average val&e of payment messages is S< 2 trillion5 SFI+! is a highly se,&re% messaging net6ork ena1les Banks to sen% an% re,eive +&n% !ransfer) LBC relate% an% other free format messages to an% from any 1anks a,tive in the net6ork5 Daving SFI+! fa,ility) Bank 6ill 1e a1le to serve its ,&stomers more profita1le 1y provi%ing LBC) *ayment an% other messages effi,iently an% 6ith &tmost se,&rity5 Espe,ially it 6ill 1e of great help for o&r ,lients %ealing 6ith Imports) E;ports an% Remittan,es et,5
NCCBL
Chapter
28
NCCBL
Chapter
2?
Accounting & Information System of NCCBL
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
:#" :#$ :#' :#) :#* :#, :#: :#=
Banking -ransaction -ransfers Office Accounts & Le ger Accounting -reatment of +ifferent Areas +aily Activities Report as a Information System Statement of Affairs Sche ule Bank Statistics Notes of the 0inancial Statement of every year
NCCBL
Chapter
24
A,,o&nting to the Companies A,t5 1221 all the s,he%&le% 1anks nee% to prepare an in,ome statement for the finan,ial year en%e% an% Balan,e sheet for stating the affairs of 1&siness5 Any 1ank registere% in Bangla%esh has to f&rnish the ann&al report at the en% of the year5 All the finan,ial Statement s&,h as) In,ome Statement) Cash flo6 statement) Balan,e Sheet et,5 has to prepare in the ann&al report5 Ea,h Bran,h has to ,omplete SBS'1) SBS'2an% SBS'8 statements5 SBS'1 is prepare% for monthly an%s SBS'2 an% SBS'8 are prepare% for @&arterly5 !hese statements sho6 the assets an% lia1ility sit&ation of every 1ran,h5 !he main Bran,h ,olle,ts an% a,,&m&lates the information an% sent them to the statisti,s %epartment5 !he 1ank maintains its a,,o&nts on %o&1le entry 1ook keeping system 6hi,h investigates that every 1&siness transa,tion has a t6o'fol% aspe,t) one re,eive the 1enefit an% other gives the 1enefit5 !his in,l&%es that for every %e1it there is a ,orrespon%en,e ,re%it5 :#" Banking -ransaction !he 1anking transa,tion is %one in three 6ays5 !hey are as follo6sC a/ Cash transa,tion 1/ Clearing ,/ !ransfer5 a/ Cash !ransa,tion Fhen the transa,tion is ma%e 1y ,ash they are ,alle% ,ash transa,tion5 Cash is an asset of the 1ank5 !hat is 6hy 6hen the 1ank re,eives ,ash it is %e1ite% an% ,orrespon%ing ,re%it is ma%e either 1y ,reating lia1ility or a reven&e et,5 1/ Clearing A ,&stomer of the 1ank may re,eive ,he,ks from others or iss&e a ,he,k to a person 6ho may pla,e the ,he,k in his a,,o&nt 6ith other 1ank5 In this ,ase the ,&stomers a,,o&nt is ,re%ite% or %e1ite% respe,tively an% a ,orrespon%ing a%vi,e is iss&e% to the ,learingho&se to ,lear the ,he,ks5 ,/ !ransfer !he transfer of an amo&nt from one a,,o&nt to another %ose not effe,t the ,ash 1alan,e &ntil ,ash is 6ith%ra6n 1y the transferor>s a,,o&nt is %e1ite% as he re,eives money from the 1anker an% the transferee>s a,,o&nt is ,re%ite% as he gives the money to the 1anker to lie in his a,,o&nt5 :#$ Office Accounts an Le ger !he in%ivi%&al a,,o&nts of the ,&stomer are maintaine% 1y the 1ank in ,omp&ter 6ith the &se of soft6are5 !he %aily %eposit an% 6ith%ra6als are given inp&t in the respe,tive a,,o&nting sho6ing the net amo&nt re,eiva1le or paya1le 1y the a,,o&nt hol%er5
NCCBL
Chapter
27
!he 1ran,h han%les m&ltifario&s transa,tion every%ay5 !hese transa,tions are ,lassifie% &n%er %ifferent hea%s s&,h as assets) lia1ilities) in,ome an% e;pen%it&re5 All a,,o&nts are mentione% in the general le%ger in ,omp&ter5 Certain registers are maintaine% to %o the a,,o&nting man&ally5 :#' Some Accounting -reatments Cash +eposit Cash ABC *arty AB, Cash ;ith ra9als *arty ABC Cash ABC 0or --6 +or e;ample a !! is re,eive% from Agra1a% 1ran,h5 IB!A Agra1a% Bran,h Bills *aya1le !! paya1le Bills *aya1le !! *aya1le *arty ABC 0or ++6 Fhen a << re,eive% 6itho&t a%vi,e S&spense ABC << Bills *aya1le << *aya1le Bills *aya1le << *aya1le IB!A DBO << IB!A DBO << S&spense ABC << Fhen only a%vi,e re,eive 6itho&t << !he a%vi,e Bills *aya1le << *aya1le 0or Clearing6 O&t6ar% Clearing Fhen any o&t6ar% ,he,k re,eive% S&spense ABC Clearing a%0&stment IB!A <r Cr
NCCBL
<r Cr
<r Cr
<r Cr <r Cr
<r Cr <r Cr <r Cr
<r Cr
Chapter
2A
Fhen any o&t6ar% ,he,k passe% or %ishonore% IB!A <ishonore% ,he,k S&spense ABC Clearing a%0&stment S&spense ABC Clearing a%0&stment *arty ABC In6ar% ClearingC Fhen any in6ar% ,he,k re,eive% *arty ABC S&spense ABC Clearing a%0&stment Fhen the ,he,ks are passe% or %ishonor S&spense ABC Clearing a%0&stment IB!A <ishonore% ,he,ks +or O&t6ar% 1ills for ,olle,tion IB!A *arty ABC 0or loan is&ursement interest charge & repayment *arty loan ABC <r *arty C< or S< ABC *arty loan ABC Interest *arty C< or S< ABC *arty loan ABC 0rom LJC opening register *arty ABC S&n%ry %eposit ABC #argin ABC In,ome ABC Commission ABC "at *aya1le ABC In,ome ABC *ostage AB, In,ome ABC SFI+! or *ostage #is,ellaneo&s In,ome ABC <r Cr <r Cr <r Cr Cr Cr Cr Cr Cr <r Cr <r Cr Cr <r Cr <r <r Cr <r Cr
Cr
!he margin re@&irement %epen%s on the type of goo%s to 1e reporte%5 C&stomer>s lia1ility ABC LBC foreign ABC <r Bankers lia1ility ABC LBC foreign ABC Cr
NCCBL
Chapter
23
Fhen %o,&ments are re,eive% the party m&st a,,ept it 6ithin three %ays5 Bankers lia1ility ABC LBC foreign ABC <r Bankers lia1ility ABC LBC foreign ABC Cr :#) +aily Activities Report Every 1ran,h has to prepare a %aily a,tivities report for every %ay5 !he <aily a,tivities sho6s the %aily transa,tion profile) <aily ,&rrent 1alan,e of in%ivi%&al a,,o&nt an% in%ivi%&al hea% 6ise posting5 :#* Statement of Affairs
!he statement of affairs is the statement of 1alan,e of general le%ger A,,o&nts5 !his statement sho6s the %aily asset an% lia1ility position of the 1ank5 Every 1ank has to f&rnish this statement to the hea% offi,e to inform their asset an% lia1ility position5 !he statement in,l&%es the general le%ger ,o%e) general le%ger %es,ription) %etail 1alan,e an% gro&p 1alan,e5 !he 1alan,e of the %ifferent a,,o&nts m&st agree 6ith the 1alan,es in the registers kept man&ally5
:#, Sche ule Bank Statistics 8SBSE"? $&'5 Statement As per re@&irement of Bangla%esh Bank ea,h An% every 1ran,h nee%s to provi%e statement of assets an% lia1ilities in pres,ri1e% format5 !hese formats are in printe% an% every 1ran,h m&st ,omply 6ith these formats5 SBS'1 is the monthly statement of assets an% lia1ilities5 !his statement provi%es information regar%ing se,tor 6ise %eposits ,olle,tion - loans an% a%van,es san,tion5 SBS'2-8 are @&arterly statement of %eposits an% a%van,es5 Ea,h an% every 1ank provi%es stan%ing of %eposit an% a%van,es in every three months to Bangla%esh Bank5 In SBS'2 the 1ran,h s&pplies information regar%ing @&arterly %eposits) foreign ,&rren,y %eposits) 6age earners %eposits et,5 In SBS'8 provi%es %ata a1o&t se,tor 6ise a%van,e san,tione% 1y the 1ran,h %&ring the last @&arter5 :#: Notes of 0inancial Statements of Every 4ear a/ Basi, of A,,o&nting !he finan,ial statements of the 1ank is prepare% a,,or%ing to the Bank ,ompanies A,t51221 an% Bangla%esh A,,o&nting Stan%ar%s on a going ,on,ern 1asis &n%er histori,al ,ost ,onvention5 1/ Consoli%ation
NCCBL
Chapter
22
All the finan,ial statements is prepare% 1y he re,or%s of the statement of affairs) in,ome an% e;pen%it&re statement of the 1ran,h5 ,/ Investment Investment in treas&ry 1ills is sho6n at fa,e val&e) *ri(e 1on% at ,ost pri,e an% shares at ,ost or market pri,e 6hi,h ever is lo6er5 Interest on Investment in :overnment an% other tr&st se,&rities) %e1ent&res an% 1on%s et,5 is a,,o&nte% for as in,ome on a,,r&al 1asis5 Interest is ,al,&late% on %aily pro%&,t 1asis5 %/ Loans an% A%van,es Normally loans an% a%van,es are state% at gross val&e5 *rovision for loan an% a%van,es is ma%e on 1asis of perio% en% revie6 1y the management an% of instr&,tions ,ontaine% in Bangla%esh Bank5 e/ +i;e% asset an% <epre,iation s&ally +i;e% assets are state% at ,ost less a,,&m&late% %epre,iation5 <epre,iation is ,harge% at the ann&al rates pres,ri1e% 1y Bangla%esh Bank as note% 1ello6C +&rnit&re - +i;t&reC19I'29I) #a,hinery an% E@&ipment'29I - "ehi,les' 29I5 <epre,iation at appli,a1le rates is ,harge% on a%%itions to fi;e% assets as 6ell as on sale of any item on the 1asis of n&m1er of %ay in &se of the ,on,erne% asset5 f/ Cash +lo6 Statement Cash flo6 statement is prepare% prin,ipally in a,,or%an,e 6ith ISA5 Cash flo6 statement an% the ,ash flo6 form the opening a,tivities have 1een presente% &n%er %ire,t metho% as pres,ri1e% 1y the se,&rities an% e;,hange r&les 123A5 g/ Off Balan,e Sheet Item s&ally &n%er general 1anking transa,tions lia1ilities against a,,eptan,e) en%orsement an% other o1ligations an% 1ill against 6hi,h a,,eptan,e is given an% ,laim e;its there against is sho6n as off 1alan,e sheet item5 h/ +oreign C&rren,y !ransa,tions !ransa,tions in foreign ,&rren,ies are ,onverte% into e@&ivalent taka ,&rren,y &sing the r&ling e;,hange rates on the %ates of s&,h transa,tion5 Assets an% lia1ilities as at year'en% in foreign ,&rren,ies are translate% into taka ,&rren,y at the prevailing selling an% 1&ying rates of the ,on,erne% foreign ,&rren,ies of that %ay5 !he %ifferen,e arising from the ,onversion is ,harge%B ,re%ite% to the profit an% loss a,,o&nt5
Chapter
199
NCCBL
Chapter
191
Con,l&sion - Re,ommen%ation
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
=#" =#$ =#'
S;O- Analysis Recommen ation Conclusion
NCCBL
Chapter
192
=#" S;O- Analysis of NCCBL SFO! analysis is an important matter to kno6 the present stat&s of Strength) Feakness) Opport&nities an% !hreats of NCCBL5 !he analysis also helps the ,ompany management to take relevant meas&re to make &p its 6eakness an% to fa,e the e;ternal threats of the ,ompetitors5 !he term SFO! in,l&%es the follo6ingC S' Strengths F' Feakness O' Opport&nity !' !hreats No6 6e shall %is,&ss the strengths) 6eakness) opport&nities an% !hreats in the follo6ing paragraphs5 c5 Strengths NCCBL en0oy the follo6ing StrengthsC !he 1anking servi,e is easily a,,essi1le an% feasi1le5 Banks are the only me%ia thro&gh 6hi,h international tra%e an% ,ommer,e emanate an% entire ,re%it transa,tion) 1oth national an% in%&stry5 *ai% &p ,apital of the 1ank is tk5 79A531 millions in 299? as against tk5 442544 millions of pre,e%ing year5 !he reserve f&n% of the 1ank in,rease% to tk5 ?24522 millions in 299? as against tk5 887512 millions of previo&s year) in,rease 1eing 27I5 <eposit of the 1ank at the en% of the year 299? 6as tk517972528millions registering an in,rease of 2I over previo&s year>s fig&re5 !he a%van,es gro6th of the 1ank is in,reasing rapi%ly5 !he 1ank is a mem1er of A!# net6ork along 6ith other ten 1anks 6hi,h ena1le% the 1ank to e;ten% mo%ern 1anking fa,ility to the ,&stomer5 !he 1ank has 1een please% to re,ommen% 14I 1on&s share for the sharehol%er5 !he 1ank has alrea%y o1taine% prin,ipal mem1ership of #aster ,ar% an% visa ,re%it ,ar% an% #oney:ram 6hi,h 6ill 1e intro%&,e% in its pro%&,t line shortly5 5 ;eakness La,k of ,learly %efine% marketing o10e,tives5
Chapter
198
*oor @&alify of strategi, management %e,ision'making5 La,k of promotional o10e,tives an% strategies5 La,k of implementing I! te,hnology5 La,k of eno&gh skill manpo6er5 +&n% is getting ,ostlier an% getting a,,ess to the f&n% is also 1e,oming more %iffi,&lt5 N&m1er of 1ran,hes are very limite%5 A&thori(e% ,apital of this 1ank remains &n,hange% in the year 299?s5 A1sen,e of attra,tive rem&neration pa,kage an% motivation for the employees5 !he soft6are #ICRO'BAN=ER is not 6ell prote,te%5 S&,h as it sho6s the %e1it 1alan,e in,ase of ,&rrent or savings %eposit a,,o&nt5 It never gives noti,e of ins&ffi,ient f&n% 6hen more f&n%s are %e1ite% in ,&rrent or savings a,,o&nt5 Also the same pro1lem in,ase of any ,ontra treatment5 e5 Opportunities In %eveloping ,o&ntries like Bangla%esh) 1anking servi,e 6o&l% 1e the only so&r,es of finan,ing5 !hey ,an %iversify their portfolio 1y intro%&,ing ne6 se,tors like leasing) intro%&,ing A!# ,ar%) one point servi,e) tele 1anking) ,re%it ,ar%s et,5 !he 1anking se,tor of Bangla%esh is gro6ing very fast5 !he 1anking ,an also start mi,ro',re%it 1&siness for in%ivi%&als an% small 1&siness like :rameen Bank5 In the near f&t&re all of the 1ran,hes of NCCBL are going to 1e online% 6hi,h is goo% ne6s for the 1ank for 1right f&t&re5 f5 -hreats !he most of the threats for the ,ompany are ,oming from the ,ompetitors5 Company has a ,han,e to lose its market share to the ,ompetitors if it %ose not take ne,essary a,tions5 Opening of the re,ently permitte% ne6 1anks) 6itho&t implementation of the nee%e% reforms) ,o&l% lea% to &nethi,al ,ompetition an% ho&se tra%ing in the ,o&ntry>s tro&1le% 1anking se,tor5
NCCBL
Chapter
19?
!he si(e of the market an% the present state of e,onomi, a,tivity %i% not provi%e a%e@&ate s,ope for 1&siness for a large n&m1er of 1anks 6ith poor management an% 1a,k%ate% operating system5
!he ,&stomer servi,e of the 1ank is not too goo% like other 1anks5 In the +oreign 1anks) there are ,&stomer servi,e %epartment5 B&t in this 1ank there is no ,&stomer servi,e %epartment5 Online 1anks are provi%ing more threats on the 1anks 6hi,h are not yet online% like this 1ank5 In general 1anking %epartment they follo6 the tra%itional 1anking system5 !he entire 1anking pro,e%&re is not f&lly ,omp&teri(e%5 =#$ Recommen ation As per earnest o1servation some s&ggestions for the improvement of the sit&ation are given 1ello6C !o attra,t more ,lients NCCBL has to ,reate a ne6 marketing strategy) Fhi,h 6ill in,rease the total e;port import 1&siness5 Effe,tive an% effi,ient initiatives are ne,essary to re,over the %efa&lts loans5 Attra,tive in,entive pa,kage for the e;porter 6ill help to in,rease the E;port an% a,,or%ingly it 6ill %iminish the 1alan,e of payment gap of NCCBL5 Long term training very m&,h re@&ire% for the 1ank offi,ials Comp&teri(e% 1anking system an% latest ,omm&ni,ation %evi,e are the most important elements for this ,ent&ry5 So) for the so&n% an% sta1le 1anking operation) NCCBL has to alternative 1&t the mo%erni(ation5 +oreign e;,hange operations of other 1anks are more %ynami, an% less time ,ons&ming5 NCCBL sho&l% take some initiative to ,omplete 6ith those 1anks5 Bank ,an provi%e foreign market report) 6hi,h 6ill ena1le the e;porter to eval&ate the %eman% for their pro%&,ts in foreign ,o&ntries5 !he 1ank has to intro%&,e online 1anking as soon as possi1le5 Be,a&se its very %iffi,&lt to ,ompete 6ith other 1anks 6itho&t online 1anking servi,e5 N&m1er of 1ran,hes is very limite% of this 1ank5 !hey have to in,rease the n&m1er of 1ran,hes at vario&s key points of the ,o&ntry5 =#$ Conclusion !he Overall Banking operation System of NCCBL is average satisfa,tory5 !his is %&e to lo6 te,hnologi,al mo%ern 1anking system) &nskille% offi,ials) la,k of promotional a,tivities) minim&m motivational a,tivities than other ,ompetitor 1anks) la,k of pop&lar s,hemes5 On the other han% the 1ank has e;,ellent gro6th of %eposit an% a%van,es5 !he in%&strial) transport) an% lease finan,ing is also very little in this 1ank5
Chapter
194
After all the 1ank alrea%y e;ten%ing the A!# ,ar% - Cre%it ,ar% fa,ilities 6hi,h are most pop&lar at present age5
NCCBL
Chapter
197
Appen%i; 1C S&estionnaire Appen%i; 2C Conse,&tive 4 years *rofit - Loss A,,o&nt of NCCBL Appen%i; 8C Conse,&tive 4 years Balan,e Sheet of NCCBL Appen%i; ?C Conse,&tive 4 years *erforman,e of NCCBL at :lan,es Appen%i; 4C A,ronyms &se% in this report Bi&liography
NCCBL
Chapter
19A
Appen iC One6 >uestionnaire
15
Fhat is the name of the organi(ationP
25 Fhen is it esta1lishe%P 85 Fhat is the mo%e of investmentP ?5 Do6 many 1ran,hes are availa1leP 45 Fhat is the position of ,apital str&,t&reP 75 Fhat is the organogram of NCCBLP A5 Fhat types of %eposit are availa1leP 35 Fhat types of loan s,heme are availa1leP 25 Fhat is the interest rate of %ifferent %eposit s,hemeP 195 Fhat is the interest rate of %ifferent loan s,hemeP 115 Fhat is the position of %ifferent %eposit s,heme in %ifferent yearsP 125 Fhat is the position of %ifferent loan s,heme in %ifferent yearsP 185 Fhat is the position of remittan,e in %ifferent yearsP 1?5 Fhat is the pro,e%&re of %ifferent loans %is1&rsementP 145 Fhat is the pro,e%&re of opening %ifferent %eposit a,,o&ntP 175 Fhat is the pro,e%&re of opening LBC5 L<B*P
NCCBL
Chapter
193
NCCBL
Chapter
192
NCCBL
Chapter
119
NCCBL
Chapter
111
Appen iC 0iveC Acronyms use in this report

NCCBL A+B A-/ BCC BCCI E%K 0B% 0+R 7+ 7OB 1JO IBC LJC LAN LI/ L-R N7O OBC %O SSC SSI S-+ S;I0SSS -IN ;AN NCBs ;ES /IS 3;0 CA+ National Cre%it an% Commer,e Bank Lt%5 Asian <evelopment Bank A&tomate% !eller #a,hine Bank of Cre%it an% Commer,e Bank of Cre%it an% Commer,e international E;port *ro,essing Uone +oreign Bills *&r,hase +i;e% <eposit Re,eipt :eneral <iary :overnment of Bangla%esh Dea% Offi,e In6ar% Bills for Colle,tion Letter of Cre%it Lo,al Area Net6ork Loan against Importe% #er,han%ise Loan against !r&st Re,eipt Non':overnment Organi(ation O&t6ar% Bills for Colle,tion *ay Or%er Spe,imen Signat&re Car% Small S,ale In%&stries Short !erm <eposit So,iety for 6orl% 6i%e Inter'1ank +inan,ial !ele,omm&ni,ation Spe,ial Savings S,heme !a; I%entifi,ation N&m1er Fi%e Area Net6ork Nationali(e% ,ommer,ial 1anks Fage Earner s,heme #anagement information System "ol&me or 6orking f&n% Central A,,o&nting <ivision
NCCBL
Chapter
112
Bi&liography
1 4 7
Ann&al Report of +inan,ial $ear 2999'299?) NCC Bank Limite% 6665n,,'1%5,om 66651angla%esh'1ank5org
NCCBL

AIS in NCC Bank

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Chapter

Bismillahir Rahmanir Rahim

An Internship report on Overall Banking operation System of NCCBL

EXEC !I"E S ##AR$

An Internship report on Overall Banking operation System of NCCBL

An Internship report on Overall Banking operation System of NCCBL

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An Internship report on Overall Banking operation System of NCCBL

Chapter "#" IN-RO+.C-ION

An Internship report on Overall Banking operation System of NCCBL

An Internship report on Overall Banking operation System of NCCBL

An Internship report on Overall Banking operation System of NCCBL

An Internship report on Overall Banking operation System of NCCBL

"#= LI/I-A-IONS O0 -1E S-.+46

An Internship report on Overall Banking operation System of NCCBL

An Internship report on Overall Banking operation System of NCCBL

Conceptual 0rame9ork of the Stu y

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An Internship report on Overall Banking operation System of NCCBL

An Internship report on Overall Banking operation System of NCCBL

An Internship report on Overall Banking operation System of NCCBL

851 852 858 85? 854 857 85A

An Internship report on Overall Banking operation System of NCCBL

An Internship report on Overall Banking operation System of NCCBL

An Internship report on Overall Banking operation System of NCCBL

An Internship report on Overall Banking operation System of NCCBL

7eneral Banking System of NCCBL

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An Internship report on Overall Banking operation System of NCCBL

5undr" &eposit Current &eposit

5hort 0er* &eposit 5avin.s &eposit

An Internship report on Overall Banking operation System of NCCBL

Deposit Mix- 2001

5hort 0er* &eposit

5av in.s &eposit

+earer Certif i(ate of &eposit

Deposit Mix- 2002

Deposit Mix - 2004

0.%66 5.56 10.0$6 4.576 11.626 5.016 7.876

5hort 0er* &eposit 5av in.s &eposit

+earer Certif i(ate of &eposit

!a1le N 1C Ann&al Report2999'299?

S!ort Term Deposit % of Total Deposit

An Internship report on Overall Banking operation System of NCCBL

Sa"in#s Deposit % of Total Deposit

An Internship report on Overall Banking operation System of NCCBL

2I ?I !a1le N 7C Ann&al Report2999'299?

Special Sa"in#s Deposit % of Total Deposit

$ixed Deposit Sc!eme % of Total Deposit

256 $56 456 556

An Internship report on Overall Banking operation System of NCCBL

Special $ixed Deposit Sc!eme % of Total Deposit

An Internship report on Overall Banking operation System of NCCBL

%earer ertificate of Deposit % of Total Deposit

An Internship report on Overall Banking operation System of NCCBL

An Internship report on Overall Banking operation System of NCCBL

S&spense ABC Clearing a%0&ste% All pay in slipsB vo&,her

An Internship report on Overall Banking operation System of NCCBL

An Internship report on Overall Banking operation System of NCCBL

Loans &A vances System of NCCBL

7eneral loan Small Loan Scheme SpecialiGe Loans of NCCBL

An Internship report on Overall Banking operation System of NCCBL

An Internship report on Overall Banking operation System of NCCBL

An Internship report on Overall Banking operation System of NCCBL