CHAPTER 1: Introduction

Its simple enough to say that Bank is financial organization that deals with money. But it is the
precise most definition about bank. In modern age it is impossible to think a country without
bank. Banks play diversified role in an economy. Banking plays very significant contribution
towards socio-economic development of a country. This sector is considered to be like the life
blood the economy as well. As one of the most important components of the financial system it
forms the core of the money market and plays very pivotal role in mobilizing resources for
productive investments in a country which in turn contributes to economic development. The
efficiency of the sector is very important for overall development of the country. The most
important task that is done by a bank is building of capital. That is the key factor of the
development of an economy. An Industrialized nations build their industrial sector with the help
of banking sector. The growth of the economy also depends on the performance of the banking
sector. Banks secure money of the society. Government takes various monetary policies. These
policies are implemented with the help of banking sector. It is impossible to do foreign trade
without the help of bank. Banks provide services that help the business sector a lot to carry on
the business.
This report has been prepared in the light of practical as well as theoretical knowledge.
Also it is prepared under the guidance and supervision of the core teacher. During the internship
program I have got a good idea about the bank and that is depicted in the report.
1.1 Origin of the Report
The BBA (Bachelors of Business Administration) internship program is required course for the
students who are graduating from Jagannath University. It is a three credits hour course with the
duration of 12 weeks. Students who have completed all the required courses are eligible to for
this course. In this internship program, I was attached to do my internship by rotation to all
departments of Southeast Bank, Dhanmondi Branch, and Dhaka. The academic supervisor
assigned me on this project. The report is on General Banking Operations of Commercial
Bank: A study on Southeast Bank Limited Dhanmondi Branch.

Page 1 of 53

1.2 Background of the study:

In the program of BBA, courses were on business studies from theoretical aspects. There were
no sufficient scopes to learn practical knowledge about business and its environment, theory and
practices are inter-related and are equally important. Todays world all of the Commercial banks
have significantly expanded and changed of their financial services to the clients and
governments. That is why every professional has to possess clear concept regarding these
changes and he/she needs to conform to these changing environments. A professional is a
person who is skilled in the theoretical, scientific and practical aspect of an occupation and who
performs with a high degree of competence & integrity. This internship program assisted me to
develop professional attitude towards banking business & environment. Basically, this study
will help to construct a skillful tenure in banking sector. This report has been prepared in the
light of practical as well as theoretical knowledge that is shared by honorable management
executives of Southeast Bank Limited (Dhanmondi Branch).

1.3 Scope of the study:

Basically this report will cover Analysis of Foreign Exchange Banking Services related to
Export and Import procedure of Southeast Bank Limited along with a relevant stream of
discussion on the theory and policy issues relating to Foreign exchange division. I had a great
opportunity to get practical knowledge of all the banking activities practiced by the Southeast
Bank Limited.

Page 2 of 53

1.4 Objectives of the Study:

Broad Statement: The broad statement of this report is to achieve practical knowledge about the
Import and Export procedure of Foreign Exchange Department of the Southeast Bank Limited
(Dhanmondi Branch).

To present an overview of SEBL.

To understand the various products and services of SEBL.
To know the activities of SEBL in respect of export, import, and remittance.
To provide recommendation on the basis of findings.
1.5 Limitation of the Study

12 weeks are not enough to know about commercial banking operation through I have been
received maximum assistance from the every individual of the SEBL,Dhanmondi Branch.
Definitely, I could not produce an outstanding report for the time limitations. Due to the time
limit, the scope and dimension of the study has been curtailed.
The Term paper is likely to have following limitations:

Since the ideal size of data could not be taken, suggested operating process may not be useful

without appropriate modifications.

Due to shortage of time, the accuracy of information may not have been completely perfect.
The Operating Process is a theoretical suggestion. Only a practical application of this may

justify its effectiveness that could not be done due to time limitation.
Lack of comprehension of the respondents was the major problem that created many
confusions regarding verification of conceptual question.
Page 3 of 53

Confidentiality of data was another important barrier that was faced during the conduct of
this study. Every organization has their own secrecy that is not revealed to others. While
collecting data on SEBL, personnel did not disclose enough information for the sake of

confidentiality of the organization.

Rush hours and business was another reason that acts as an obstacle while gathering data.

1.6 Methodology of the Study:

This study is based on secondary sources and also from primary sources.
Primary Sources:

Direct conversation with the bank officers;

Exposure on different desk of the bank;
Observing various organizational procedures.
Conversation with the clients;

Secondary Sources:

Annual Report of Southeast Bank Limited;

Different publications regarding foreign exchange operation;
From Newspapers and Internet;
Files and documents of the branch;

Page 4 of 53

Chapter 2: Company Overview

2.1 Historical Background of SEBL:
Southeast Bank Limited (SEBL) is one of the private sector commercial banks that started its
operation on May 1995 in Dhaka Southeast Bank Limited has a long and relishing heritage.
Southeast bank limited is a service industry. It is a second generation Bank that was established
in 1995 as a Public Limited Company, with the vision to stand out as a pioneer banking
institution in Bangladesh. To contribute significantly in the national economy of Bangladesh is
an important vision of the Southeast Bank Limited.

Privatization of Banking is an outcome of the deliberate policy change by the government of

Bangladesh in late 70s. The emergence of Southeast Bank Ltd. was at the juncture of
liberalization of global economic activities, after the URUGUAY ROUND has been an important
event in the financial sector of Bangladesh. The company slogan A Bank with Vision" has been
exactly an essence of the legend of success in the Asian countries. The bank had been widely
acclaimed by the business community, from small entrepreneurs to large traders and industrial
conglomerates, including the top-rated corporate borrowers for its forward - looking business
outlook and innovative financial solutions. Presently, it has 114 branches. Recently Bank
envisaged opening more branches in important financial centers of the country. Southeast Bank
Limited has been licensed by the Government of Bangladesh as a Scheduled commercial bank in
the private sector in pursuance of the policy of liberalization of banking and financial services
and facilities in Bangladesh. In view of the above, the Bank within a period of 10 years of its
operation achieved a remarkable success and met up capital adequacy requirement of
Bangladesh Bank.
It has been growing fast as one of the leaders of the new generation banks in the private sector in
respect of business and profitability as it is evident from the financial statements (will be
described later) for the last 20 years. Southeast Bank Limited is focused on the established and
emerging markets of Bangladesh. In Dhaka, the first branch was launched in 1995 and the bank
has been growing ever since. The organizations aim is to be the leading bank in the country's
principal markets. The bank by concentrating on the activities in its area of specialization has
achieved good market reputation with efficient customer service. The Bank is committed to
providing continuous training to its staff to keep them up to date with modern practices in their
respective fields.

Page 5 of 53

2.2 SEBL Profile at a Glance:

COMPANY PROFILE
Name

Southeast Bank Limited.

Eunoos Trade Center 52-53, Dilkusha,

Head Office

C/A (Level-2, 3, 4 & 16) Dhaka - 1000,

Bangladesh.

Date of Incorporation
Principal Activity
Legal Status
Chairman
Vice Chairman
Managing Director
Company Secretary
Website
Authorized Capital
Paid Up Capital
Year of Initial Public
Offer
Market Lot

12th March 1995

Commercial Banking
Public Limited Company
Mr. AlamgirKabir, FCA
Ragib Ali
ShahidHossain
Muhammad Shahjahan
www.southeastbank.com.bd
Tk. 15,000.00 million
Tk. 9,169.50 million
1999
50 Shares

Page 6 of 53

2.3 Vision of SEBL:

To be a premier banking institution in Bangladesh and contribute significantly to the

national economy it is important for managers and executives in any organization to
agree upon the basic vision that the firm strives of achieve in the long term. A clear
vision provides the foundation for developing a comprehensive mission statement. It
has created a cadre of young professionals in banking profession which has helped
boosting productivity in the bank.

2.4 Mission of SEBL:

Southeast Bank Limited aims to become one of the leading banks in Bangladesh by
prudence, flair and providing quality of operations in their banking sector. The bank
has some mission to achieve the organizational goals. Some of them are as follows as:

High quality financial services with state of the art technology

Fast customer service
Sustainable growth strategy
High Ethical standards in business
Steady return on shareholders equity
Innovative banking at a competitive price
Attraction and retention of quality human resource
Commitment to Corporate Social Responsibility.

Page 7 of 53

2.5 Objectives of Southeast Bank Limited:

Given below the objectives of SEBL:

To introduce fully automated systems through integration of information

technology.
To ensure an adequate rate of return on investment.
To keep risk position at an acceptable range (including any off balance sheet
risk).
To maintain adequate control systems and transparency in procedures.
To develop and retain a quality work-force through an effective human
Resources Management System
To earn and maintain CAMEL Rating 'Strong'.
To ensure optimum utilization of all available resources.
To pursue an effective system of management by ensuring compliance to
ethical norms, transparency and accountability at all levels.
To be the market leader both in terms of deposits and good loans among
private commercial banks.
Main objective is to have a higher profitability than that of the weighted
average of other banks.

Page 8 of 53

2.6 Hierarchy of SEBL:

C
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Page 9 of 53

Page 10 of 53

2.7 Organizational Structure of SEBL, Dhanmondi Branch:

SeSe nn iioo rr AsVicseisPrta netsiVid ecnet Pre sid en t

Assista n t Vice
Se
n
i
o
r
Pr
i
n
c
i
p
a
l
Pr((ExBOirpnacecnuricaphtaviloMaen Man a gnearg)er)
PrSeOfenfsicioderer n(tS (PO)A VP)
PrOfofibcaetrio(nPaO)ry
OfJOfu nffiiccoeerr
AsOfTrafsitnc.Oerf Cash
cOfTre rafiinc eer
fOficfeirc er
Ast.O f ic e r
Page 11 of 53

2.8 Products & Services of SEBL:

Bank is a service-oriented industry and deals with various financial products and
services for financial gains. Southeast Bank Limited is a full service Bank with adverse
array of comprehensive range of carefully tailored financial services and customer
friendly uncompleted banking products geared for the needs of all customers segments.
Financial products and services products that Southeast Bank Limited offers to its
customers are mainly classified as under:
2.8.1 Deposit Products:
Deposit products are those products that are collected from the customers to generate
funds of the bank. The following deposit products are launched by Southeast Bank
Limited:

Conventional banking:

Savings Bank (SB) Account

Current Deposit (CD) Account
Special Notice Deposit (SND) Account
Fixed Deposit Receipt (FDR) Account
Double Benefit Scheme (DBS) Account
Millionaire Deposit Scheme (MDS) Account
Pension saving Scheme
Education saving Scheme
Monthly Savings Scheme (MSS) Account
Monthly Income Scheme
Multimillionaire Gold Deposit Scheme
Page 12 of 53

Islamic Banking:
Mudaraba Savings Bank (SB) Account
Al - Wadiah Current (CD) Account
Mudaraba Special Notice Deposit (MSND) Account
Mudaraba Term Deposit Receipt (MTDR) Account
Mudaraba Double Benefit Scheme (MDBS) Account
Mudaraba Monthly Savings Scheme (MMSS) Account
Mudaraba Hajj SanchayProkalpa
Mudaraba Millionaire Deposit Scheme (MMDS) Account

Page 13 of 53

2.8.2 Loan & Advances Products:

Southeast Bank Limited is offering the following loan and advance product to the client for
financing different purpose that fulfill the requirements of the bank and have good return to the
investment as well as satisfy the client. The loan and advance products are:

Working Capital Finance

Overdraft (OD)
Project Finance
Syndicated Loan Packing Credit
Loan Against Export Bill
Loan Against Trust Receipt
Import Financing
Export Financing
2.8.3 Remittance Products:

Southeast Bank Limited offers the following remittance products:

Pay Order (PO)
Demand Draft (DD)
Foreign Remittance

Page 14 of 53

2.8.4 International Business Products:

International Business Products that is offered by Southeast Bank Limited are as under:
Letter of Credit (L/C)
Back to Back Letter of Credit (BTB L/C)
Buying & Selling of Foreign Exchange
Foreign Demand Draft (FDD)
Foreign Telegraphic Transfer (FTT)

2.9 Services of Southeast Bank Ltd:

Southeast Bank Ltd. Offered many services for their customer and following these are:

SME Banking
Dual Currency VISA Credit Card
Virtual Card
Remittance Business
Western Union
SWIFT Services
Locker Services
ATM Services
Internet Banking Services
Page 15 of 53

 Bill Payment Services

E-Statement Services

2.10 Achievement of Southeast Bank Ltd:

Southeast Bank perfectly published its every annual report with disclosure and Financial
Statement complying the adopted Accounting Standard. In recognition, ICBA has honored
Southeast Bank with Recognition Award of Merit for the best published accounts for the year
2006 and 2007.
2.11 Credit Rating of Southeast Bank Ltd:

Year

Long Term

Short Term

2014
2013

AA
AA-

ST-2
ST-2

Table no.1Credit Rating of Southeast Bank Limited

Credit Rating Information and Services Limited (CRISL) has upgraded the rating of SEBL
with AA (pronounced as double A) in Long Term and reaffirms ST-2 rating in Short
Term based on financials up to December 31, 2014 and other qualitative and quantitative
information. SEBLs Long Term Rating has been upgraded to AA which focused higher
safety and higher credit quality. In Long Term here risk are modest and may vary slightly
from time to time because of economic conditions. This level of rating indicates a banking
entity with high quality, offer higher safety and have high credit quality. The Short Term
rating ST-2 indicates high certainty of timely repayment. Liquidity factors are strong and
supported by good fundamental protection factors. Risk factors are very small. SEBL thanks
to its all valued stakeholders for making it happen.

Page 16 of 53

2.12 Profit, Deposit and Advance position of SEBL, Dhanmondi Branch:

Taka In Crore
Particular
s

Actual as on June
2014

Profit
Deposit
Advance

Achieved up to July
2015

Growth
34.92
12.75
%
548.58 4.11%
294.42 -6.68%

9.45
526.9
315.5

Table no.2Profit, Deposit and Advance position of SEBL, Dhanmondi Branch

2.13Financial Performance of SEBL As a whole:
Progress at a glance (2010-2014):
In Million Taka
Particulars
Authorized Capital
Paid up Capital
Reserve Fund
/Others
Deposit
Advance
Investment
Import Business
Export Business
Guarantee
Business
Remittance
Business
Total Income
Total Expenditure
Operating Profit
Net Profit after Tax
and Provision

2014
15,000.00
9,169.50

2013
10,000.00
8,732.86

2012
10,000.00
8,732.86

2011
10,000.00
8,317.01

2010
10,000.00
6,930.84

18,292.59
189,472.5
4
147,070.8
1
56,378.59
155,691.0
0
112,137.6
0

13,074.71
177,519.4
6
134,863.8
2
57,589.06
131,644.8
2

10,864.68
152,901.2
4
126,968.9
7
37,656.56
111,537.5
0

10,683.05
127,178.2
2
107,288.5
6
29,846.60

10,265.96

99,509.01

103,726.70

95,220.40

84,464.20

75,982.06

58,158.06

13,603.30

17,226.41

21,506.65

25,673.90

22,781.19

48,740.50
27,667.10
19,337.34
8,289.76

39,299.10
26,918.30
20,218.11
6,700.20

41,455.40
23,134.18
17,638.99
5,495.19

49,544.10
19,931.91
13,846.24
6,085.66

28,082.25
16,100.81
9,331.55
6,769.26

3,836.94

3,378.82

1,648.72

1,912.19

2,763.93

107,253.19
93,981.20
18,869.07

Page 17 of 53

Fixed Assets
Total Assets

7,913.00

7,795.65

7,677.51

7,373.11

4,463.64

236,608.4 220,930.8 189,921.5 158,078.5

0
5
8
9 131,784.27
Table no.3Financial performance of Southeast Bank Limited

CHAPTER 3: General Banking Activities of SEBL

GENERAL BANKING ACTIVITIES:
To make profit in business you need to sell product or service. A bank does not produce any
tangible product to sell but does offer a variety of financial services to customers. General
banking is the starting point of all the banking operations. It is the department which provides
day-to-day services to the customers. Every day it receives deposits from the customers and
meets theirs demand for cash by honoring cheque. It opens new accounts, remit funds, issue bank
draft & pay orders etc. Since bank is confined to provide the service every day. General banking
is known as Retail banking.

Figure 3: General Banking Activities

Page 18 of 53

FUNCTION OF THIS GENERAL BANKING DEPARTMENT:

General banking department has four functions such as front desk or account, cash section,
clearing section, account section in Southeast Bank. Those various sections do various works by
which general banking activities.

3.1 ACCOUNT OPENING SECTION:

When a person is willing to make saving on bank or others need to then they open an account. To
establish a banker and customer relationship account opening is first step. Opening of an account
binds the Banker and customer into contractual relationship. But selection of customer for
opening an account is very important because there are many fraud people who deal with illegal
thing through bank .So the Bank takes in its selection of customers very carefully.
The Following Works Are Done By This Section:Accepting Deposits:
If a customer want to open an account, at first banker has to accept deposit. The relationship
between a banker and customer begins with the opening of an account by the former in name of
letter. Initially all accounts are opened with a deposit of money by the customer and hence these
accounts are called deposit account. Banker solicits deposits from the number of public
belonging to different lifestyle, engaged in numerous economic activities and having different
financial status. There are two officers performing various functions in this department. The
deposits those are two accepted by SEBL may be classified into:
a) demand deposit
b) Time deposits.
Demand Deposits:
The amount in accounts are payable on demand so it is called demand deposit account. SEBL
accepts demand deposits through the opening of, 1. Current account
2. Savings account
Page 19 of 53

A) Current Account:
Both individual and business open this type of account. Frequently transaction are (deposit as
well withdrawal) allowed in this type of a account. A current a/c holder can draw check on his
account, any amount and any number of times in a day as the balance in this account permits.
Criteria of current account followed by SEBL:
1. Generally opened by businessman, government and semi-government organization; with
2.
3.
4.
5.

proper introduction
No interest is provided for deposited amount
Overdraft is allowed in this account
Minimum opening balance is TK 5000.
A minimum balance of TK. 500/- has to be maintained

B) Savings Account:
Individuals for savings purposes open this type of account. Current interest rate of these accounts
is 06% per annum. Interest on SB account is calculated and accrued monthly and Credited to the
account half yearly. Interest calculation is made for each month based on the lowest balance at
credit of an account in that month. A depositor can withdraw from his SB account not more than
twice a week up to an amount not exceeding 25% of the balance in the account. If anyone
withdraws money more than twice he/she will not get the interest for that month.
Criteria of savings account followed by SEBL:
1.
2.
3.
4.
5.

An appropriate introduction is required for opening the A/C;

Frequent withdrawal is not encouraged;
A depositor may withdraw money from his/her account twice in a week;
Minimum amount of TK.5000 is required as initial deposit;
Depositor may withdraw his/her deposited money up to 25% of the Balance in his/her

account without notice. The bank may realize service charge in its discretion.
6. Depositor will get interest on the amount deposited in his/her account.

Page 20 of 53

TIME DEPOSITS:
A deposit which is payable at a fixed date or after a period of notice is a time deposit. In SEBL
Dhanmondi Branch accepts time deposits through Fixed Deposit Receipt (FDR), Short Term
Deposit (STD), and Schemes etc. While accepting these deposits, a contract is done between the
bank and the customer. When the banker opens an account in the name of a customer, there
raises a contract between the two. This contract will be a valid one only when both the parties are
competent to enter into contracts. An account opening initiates the fundamental relationship and
since the banker has to deal with different kinds of persons with different manner.
After accepting deposit banker in Southeast Bank Limited at Dhanmondi Branch, person or
organization has to fill up account opening form. Account opening form consist of
1.
2.
3.
4.
5.

Signature card
Personal information sheet
KYC
Term and Conditions page
SBS

But these could vary depending on type of account. Clients have to provide the following
information:o
o
o
o
o
o
o
o
o
o
o
o
o
o

Name of applicant(s),
Present address,
Permanent address,
Passport number(if any),
Tax Identification Number (if any)
Date of birth,
Nationality,
Occupation,
Nominees name and signature (s),
Special introducer ,
Initial deposit
Specimen signature of the applicant(s),
Introducers information etc.
Source of Fund

If the transaction profile does not match with KYC, bank should report to Bangladesh Bank.
Then signature of that person or organization who are opening account is needed attested by
Page 21 of 53

introducer signature of that person or it and specimen signature card. The individual who is
going to be customer need properly introduced by following:

An existing customer,
Officials of the bank who are not the rank of Assistant officer,
A respectable person who is well known to the Manager or authorized officer.

The authorized officers analyze the introduction and examine the documents that have submitted
such copy of National Id/copy of passport/ copy of driving license of that person who open
account, copy of nominee(s) National ID, photograph of that person and photograph of
nominee(s).then concern authority will allocate a number for a new account. Then customer
deposits the initial deposit by filling up deposit slips. Initials deposit to open a current account
in SEBL is TK.10000 or saving account is tk.500.after depositing the cash one cheque book and
pay-in-slip book is issued. The account is considered to be opened in SEBL at Dhanmondi Road
Branch. Dhanmondi Road Branch maintains account in computer through Bank Ultimus
Software. After depositing the initial deposit, Dhanmondi Branch records it in the computer by
giving new account number. Then it issues a cheque book requisition slip by the customer. That
distributes all relevant paper to relevant department.
Fixed Deposit Receipt (FDR):
Fixed Deposit Receipt offers the customers the opportunity to invest a fixed amount for a fixed
period at a fixed rate of interest. The customers have the option to re invest their funds both
principal amount and interest amount on maturity or principal amount and the interest amount
being paid into their SB or CD accounts. Money can grow with attractive interest rate with
flexible tenure.
1.
2.
3.
4.

Automatic renewal facility at maturity.

Loan facility against FDR to meet urgent financial needs.
The customer may avail loan facilities against FDR as security.
Premature closure facility at savings rate.

FDR Account can be opened both for Individual and Corporate bodies. Only Resident
Bangladeshi National is allowed to open Personal FDR Account. Age bar for opening of Personal
FDR Account: 18 years or above person can be opened this FDR account. Minor account can be

Page 22 of 53

opened under the supervision of his / her / their guardian. FDR can be issued for senior citizen
with attractive rate.

Fixed Deposit for

Interest Rate

1 (one) month
3 (three) months
6 (six) months

6.00%
8.75%
8.50%

1year

8.50%

Activities &Papers Necessary for Opening an Account

(A) Joint Account:
If the account is a joint account, then the joint account holder should submit a declaration and
operational instructions of the account along with their signature.
(B) Partnership firm:
The following documents have to be submitted for preparing an account of a partnership
firm:
The following documents have to be submitted for preparing an account of a partnership firm:
a. Partnership deed.
b. If the partnership firm is a registered one, then one copy of registration forms.
c. If not, then a copy of certificate from the notary public.
(C) Limited Company:
For the opening of an account of a limited company, following documents have to be submitted:

A copy of resolution of the company that the company decided to open an account in

the Southeast Bank.

Certified true copy of the Memorandum & Articles of Association of the Company.
Certificate of Incorporation of the company for inspection and return along with a duly
certified Photocopy for Banks records.

Page 23 of 53

Certificate from the Registrar of Joint Stock Companies that the company is entitled to
commence business (in case of Public Ltd. Co. For inspection and return) along with a

duly certified Photocopy for Banks records.

Latest copy of balance sheet.
Extract of Resolution of the Board/General Meeting of the company for opening the
account and authorization for its operation duly certified by the Chairman/Managing
Director of the company. List of Directors with address (a latest certified copy of FormXII).

(D) Club/Society:
Following documents have to be obtained in case of the account of the club or society:

Up to date list of office bearers.

Certified copy of Resolution for opening and operation of account.
Certified copy of Bye-Law and Regulations/Constitution.
Copy of Government Approval (if registered).

(E) Co-operative Society:

Following documents have to be obtained in case of the account of Co-operative Society:

Copy of Bye-Law duly certified by the Co-operative Officer.

Up to date list of office bearers.
Resolution of the Executive Committee as regard of the account.
Certified copy of Certificate of Registration issued by the registrar, Co-operative
societies.

(F)Trustee Board:
Following documents have to be obtained in case of the account of trustee board:
i)
ii)

Prior approval of the Head Office of SBL.

Certified copy of Deed of Trust, up to date list of members of the Trustee Board and
certified copy of the Resolution of Trustee Board to open and operate the account.

(G) Minors Account:

Following documents have to be obtained in case of the account of minor:
i) Putting the word MINOR after the title of the account.
ii) Recording of the special instruction of operation of the account.

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The AOF is to be filled in and signed by either the parents or the legal guardian appointed by the
court of law and not by the minor.
Short Term Deposit (STD) Account:
In Short Term Deposit account, the deposit should be kept for at least seven days to get interest.
The interest offered for STD is less than that of savings deposit. In SEBL, SMR various big
companies, organizations, Government Departments keep money in STD accounts. Frequent
withdrawal is discouraged and requires prior notice. STD Account opening procedure is similar
to that of the saving account
Interest rate for STD account----------6.00% per annum
In SEBL, SMR usually customers give an instruction to the Bank that their current account will
be debited whenever its deposited amount crosses a certain limit and this amount will be
transferred to the STD account.
Southeast Bank Dhanmondi Branch has some other Special Schemes which is given below:Double Benefit Scheme (DBS):
Amount to be deposited: TK. 10,000 or Multiple.
Duration: 7 years (double)
TERMS AND CONDITIONS:
1. A Person of 18 years of age and above having a sound mind can open the account
2. A person can open more than one DBS account at any branch of the Bank of the Bank
3.
4.
5.
6.

and in such case separate form should be filled.

A passport size photograph of each account holder is required to open the account
DBS account can be opened at any working day of the month
DBS account can be opened in joint names or in the name of institution
DBS account can be opened in the name of a minor. In that case, Banks existing
account opening formalities for opening accounts for minor will be followed.

Monthly Savings Scheme (MSS):

Duration:2 years, 3 (three) Years & 5 (Five) Years

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Amount of Monthly Installment: TK.500 or Multiple amount up to TK.25, 000 (Twenty five
Thousand).
TERMS AND CONDITIONS:
1. A Person of 18 years of age and above having a sound mind can open the account
2. A Person can open more than one MMSS account at any branch of the Bank and in
such case separate form should be filled
3. A passport size Photograph is required to open the account
4. MMSS account can be opened at any working day of the month.
5. Account opened within first 10th of any month will be treated as account of that
particular month. If the account is opened after 10th of any month in that case 1st
installment will be due and realized from the next month.
6. MMSS account cannot be opened in the name of any minor, in joint names, or I n the
name of institution.
7. An account can be transferred from one Branch to another Branch of the Bank by a
written application of the account holder. In such case a fee of TK. 500 is payable as
banks service charge
8. Installments can be deposited in advance.

Page 26 of 53

Monthly

Approximate Matured Amount (Taka)

Installmen
t

500

Payment after 2

Payment after 3

years

years

13305

21013

Payment after 5 years

38975

Monthly

1000

26610

42026

77950

Saving

1500

39915

63039

233850

Scheme

2000

53220

84052

155900

3000

79530

126078

233850

5000

133050

210130

389750

10000

266100

420260

779500

25000

665250

1050650

1948750

(MSS)

Table 2: Numerical Presentation of Monthly Saving Scheme

Monthly Income Scheme (MIS)
Duration of the Account: 3 (three) Years & 5 (five) years Amount to be Deposited: TK.10, 000 or
its multiple (Deposited amount will be returned on maturity).
TERMS AND CONDITIONS:
1. A Person of 18 years of age and above having a sound mind can open the account
2. A person/institution can open more than one MMIS account at any branch of the Bank
and in such case separate form should be filled.
3. The applicant must open /have a CD Savings Deposit account within the branch in which
monthly income will be credited automatically.
4. MMIS account cannot be opened in the name of any minor but it can be opened in joint
names, or in name of any institution

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5. . An account can be transferred from one Branch to another Branch of the Bank by a
written application of the account holder. In such case a fee of TK. 500 is payable as
banks service charge
Pension Savings Scheme (PSS):
Duration: 4, 6 and 8 Years Terms
Amount of Monthly Installment: 500 or multiple up to TK.25, 000 (i.e. Tk.500 or 1000or 1500)
TERMS AND CONDITIONS:
1. A Person of 18 years of age and above having a sound mind can open the account
2. A person can open more than one MPSS account for different amount at any branch of
the Bank and in such case separate form should be filled in.
3. A passport size photograph of the account holder and each nominee (attested by the
account holder) are required to open the account
4. . The account can be opened at any working day of the month.
5. Account opened within 10th of any month will be treated as account opened on the
particular month. If the accounts opened after 10th of any month in that case 1st
installment will be due from the following month and will be realized in the following
month.
6. MPSS account can be opened in the name of minor .In that case minors legal guardian
can operate the account
7. Account cannot be opened in joint names, or in the name of any institution.
Issuing Cheque Book to the Customers:
When a customers account is opened, a fresh cheque is issued to the account holder only after
against requisition on the prescribed requisition slip attached with the cheque book issued earlier,
after proper verification of the signature of the account holder personally or to duly authorized
representative against proper acknowledgement. The following procedure is occurred in issuing
cheque book:

Requisition slip filled properly along with cheque book number

Banker verified the cheque

Banker Issues a new cheque book in everything in the right

Page 28 of 53

Enter new cheque book number in register against Specific customer name

A customer who opened a new account initially deposit minimum required money in the account.
Then account opening form for is sent for issuance of a cheque book. Respective officer first
draw a cheque book. At present one officer. Officer then sealed it with branch name .in-charge
officer enters the number of cheque book in cheque issue register. Officer also enters the
customers name and account number in same register. Account number is then writing down
on face of the cheque book and on every leaf of book including requisition. Customer who opens
new account initially deposits minimum required money in the name of customer is write down
on face of cheque and on requisition slip. The word Issued on along with the date of issuance
is written down on requisition slip. . Then number of cheque book and date of issuance is also
written on application form. Next, customer is asked to sign in cheque book register. Then
respective officer signed on face of requisition slip. Put this initially in the register and hand over
the cheques book to customer.
Issue of Duplicate cheques book:
Duplicate cheques book instead of lost one should be issued only when an A/C holder personally
approaches the Bank with an application Letter of Indemnity in the prescribed Performa agreeing
to indemnify the Bank for the lost cheque book. Fresh check Book in lieu of lost one should be
issued after verification of the signature of the Account holder from the Specimen signature card
and on realization of required Excise duty only with prior approval of manager of the branch.
cheques series number of the new cheques book should be recorded in ledger card and signature
card as usual. Series number of lost cheques book should be recorded in the stop payment
register and caution should be exercised to guard against fraudulent payment.

Issue of New cheques book (FOR OLD ACCOUNT):

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All the procedure for issuing a new cheques book for old account is same as the procedure of
new account. Only difference is that customer have to submit the requisition slip of the old
cheques book with date, signature and his/her address. Computer posting is then given to the
requisition slip to know the position of account and to know how many leaf/leaves still not used.
The number of new cheques book is entered on the back of the old requisition slip and is signed
by the officer.
Procedure of issuance of a new cheques book:
If the cheques are handed over to any other person then the account holder the bank addressing
the account holder with details of the cheques book issues an acknowledgement slip. This
acknowledgement slip must be signed by the account holder and returned to the bank. Otherwise
the bank will not honour any cheques from this cheques book. At the end of the day all the
requisition slips and application forms are sent to the computer section to give entry to these new
cheques.
Dishonor of Cheque:
If the cheque is dishonored, SEBL sends a memorandum (cheque return memo) to the customer
stating the reason in the following way:

Refer to drawer.
Not arranged for.
Effects not cleared May be present again.
Exceeds arrangements.
Full cover not received.
Payment stopped by drawer.
Drawers signature differs/ required.
Alterations in date/figures/words require drawers full signature.
Cheque is posts dated/out of date/mutilated.
Amount in words and figures differs.
Crossed cheque must be present through a bank.
Clearing stamps required/requires cancellation.
Addition to the discharge of Bank should be authenticating.
Cheque crossed Account Payee Only

Transfer of an account:
Page 30 of 53

a. The customer submits an application mentioning the name of the branch to which he
wants the account to be transferred.
b. His signature cards, advice of new account and all relevant documents are sent to that
branch through registered post.
c. The balance standing at credit in customers account is sent to the other branch
through Inter Branch Credit Advice (IBCA).
d. No exchange should be charged on such transfer.
e. Attention is also given in this connection
CLOSING THE ACCOUNT:
Upon the request of a customer, Southeast Bank Limited (SEBL) closes an account of that
customer. After receiving an application from the customer to close an Account, the following
procedure is followed by banker of SEBL. Then banker of front desk of SEBL ask customer to
draw the final cheque for the amount standing to the credit of his account less the amount of
closing and other incidental charges and surrender the unused cheque leaves. The account is
debited for amount closing charge (230 taka) etc. An authorized officer of Southeast bank
Limited destroy unused cheque leave. In case of the joint account, the application for closing the
account should be signed by all join holders.
A banker can also close the account of his customer or stop the operation of the account under
following considerable circumstances:
a.
b.
c.
d.
e.

Death of customer. Customers insanity and insolvency.

Order of the court(Garnishee order)
Specific charge for fraud forgery.
Stop payment of cheque.
A banker can stop payment of cheque of his customer under following considerable

f.
g.
h.
i.
j.
k.

circumstances
Firstly the account holder will apply to stop the payment of his cheque
There is a register for this purpose. It is kept by the authorized officer.
The officer will see the condition of account and verify everything
In the ledger book, the officer will marked with red ink and the cheque will not be paid.
Collecting Banks discharge irregular/required.
If the cheque is dishonored due to insufficiency of funds SEBL inform the a/c holder
immediately.

4.2 CASH SECTION:

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Cash section is very important for bank because here the cash transaction is made. Cash sections
demonstrate liquidity strength of a bank. There various systems are maintained by a cash officer
in Southeast Bank, Dhanmondi Branch. There are four employees in cash section southeast Bank
Limited at Dhanmondi Branch. Those various systems:1. Vault
2. Cash Payment
3. Cash Receive
4.
Vault: The cash department is the riskiest department of any bank. This is the section tight
security is required to avoid any accident. There is limit to amount of cash that each counter
carries. Carrying of excess cash is avoided for safety reason. If there is any surplus in cash then
the excess amount is sent to the Bangladesh Bank. Or if there is any shortage of cash in the cash
section then the shortage amount is borrowed from Bangladesh Bank or Head office of SEBL or
other bank.

Cash Receipt: When client deposited in the bank, the bank officer follow the following common
precaution.
1.
2.
3.
4.
5.
6.

Check and count the received cash

Make sure that the amount in word and numbers in the deposit slip are same.
Check account title and account number
Both deposit slip is in order
Depositors signature is in slip
Write the domination of the currency at the back of the pay in slip or the credit

voucher in the receiving cash officer book

7. At least send the pay in slip.
8. Deposit slip must be signed by respective officer
9. Carbon copy of the deposit slip must handover to the client with proper seal and
signature
Cash Payment: Cheques, demand drafts, pay order, pay slip and debit cash vouchers etc are
received from various departments for payment of cash to the customers or payee in Southeast
Bank Limited. Period payment of cash it is the officers duty to make sure that the cheque or the

Page 32 of 53

instrument has been genuinely passed. The following common precaution is thoroughly practiced
before honoring a cheque
1.
2.
3.
4.
5.
6.
7.

Branch name in the cheque

The date in the cheque are asked to present after the date are given
Taka in word and figure of cheque is same
Balance in the account is available
The specimen card signature and signature should match
Signature of recipient is obtained on the reverse of cheque.

In case, where a prior arrangement has been made with the bank, a client may overdraw.
Books maintained by cash department: Book at the southeast bank means register. Southeast
Bank Limited maintained some register .Those registers are vault register, cash receives register,
cash payment register, cash position register. In vault register maintain amount of cash available
at Dhanmondi Branch in SEBL .Then keeps record of all incoming cash in cash receive register.
Whether in cash Payment register keep record of all out going cash. Then finally keeps record of
balance that is available notes and coins in cash position register.
Other Registers:
1. Money Remittance Register
2. Prize Bond Register
3. Stamp in hand Register
Automatic Machine in cash section:
Cash section of southeast bank has two automatic machines. one is money counting machine
another one is money detector machine .with the help of money counting machine officer can
easily count the money and find out the fake money by money detector machine .

4.3 CLEARING SECTION:

This section receives all kinds of cheque in favor of the client for clearing on the part of their
banking services. After receiving cheque it is necessary to endorse it and cross it specially.

Page 33 of 53

There are four types of cheque for clearing:

1)
2)
3)
4)

Inward clearing cheque.

Outward clearing cheque.
Inward bills for collection.
Outward bills for collection.

Inward clearing cheque: It refers the instruments drawn on Southeast bank received by other
banks in the clearing house from the representative of other bank.
Outward bills for collection: When our branch sends Cheques to other branch of Southeast bank
is called OBC. Accounting treatment of this process:
Southeast general (Senders Branch) Dr.
Depositors A/C Cr.
Inward bills for collection (lBC):
There are two types of clearing; firstly cheque collects from the other branch of Southeast bank
These Cheques are settled by sending to the debiting depositors account and crediting senders
branch account. Secondly cheque collects from another bank outside the clearing house. These
cheque are settled debiting depositors account and sending DD or TT in favor of senders bank.
Outward Clearing Cheque (OCC):
Cheque drawn of another branch of Southeast bank is called Outward Clearing Cheque. These
types of cheque are directly sent to the respective branch and request them to send IBCA.

4.4 ACCOUNTS DEPARTMENT:

Account department is called the nerve center of the bank. In banking business, transaction is
done every day and these transactions are to be recorded properly and systematically as the
banks deal with the depositors money. Any deviation in proper recording may hamper public
confidence and the bank has to suffer a lot otherwise. Improper recording of transaction will lead
to mismatch in the debit and the credit side. to avoid the mishaps bank provide separate
Page 34 of 53

department whose function is to check mistakes in passing vouchers or wrong entries or fraud or
forgery. This department is called account department. This department of southeast bank limited
has to prepare some internal statement as well some statutory statements which to be submitted
to Bangladesh Bank. Account department of southeast bank limited prepare this statement and
has to submit some statement to head office which is consolidated by the head office.
DAILY TASK of Dhanmondi branch in SEBL:
1.
2.
3.
4.
5.

The routine daily tasks of the account department are as follows:

Record the transaction in the cashbook
Recording the transaction in general and subsidiary ledger
Preparing the daily position of branch comparing of deposit and cash
Preparing the daily statement of affairs showing all assets and liabilities of SMR

Branch in SEBL as general and subsidiary ledger respectively

6. Making payment of all expense of the Branch
7. Recording enter branch fund transfer and provide accounting treatment in this regard
8. Checking whether all vouchers are correctly passed to ensure the conformity with the
activity report. If making it correct by rectified by concern officer
9. Recording of the vouchers in voucher register
10. Packing of correct vouchers according to the debit voucher and credit voucher

PERIODIC TASK:
1. Preparing the monthly salary statement for the employees
2. Policing the basic data of the branch
3. Preparing weekly position for the branch which sent to the head office to maintain
Cash Reverse Requirement
4. Preparing monthly position for the branch which sent to the head office to maintain
Statutory Liquidity Requirement
5. Preparing weekly position for the branch comparing of back up of sector wise
deposit, credit etc
6. Preparing weekly position for the branch comparing of denomination win se
statement of cash till
7. Preparing the budget for the branch by fixing the target regarding profit and deposit
8. Preparing an extract which is summary of all the transaction of head office account
with the with branch to reconcile all transaction held all account of all the branche

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Chapter 4: Analysis of Data and Information

4.1 PERFORMANCE OBSERVATION OF SOUTHEAST BANK LIMITED
Some general observations of the performance of last Six years (2009-2013) of the bank are as
follows:
Growth in Different Businesses of SEBL:
The SOUTHEAST Bank has performed well in last Six years where there has been significant
growth in different segments of the Bank. The overall performance of the Bank is discussed
along with graphical presentation in the data analysis part of this report. Here growth for some of
the different business of SEBL is shown. (Figure in Million Taka)
Growth in Assets: Total assets of the bank (excluding contingent liabilities) have increased from
Tk. 1,12,677million in 2009 to Tk. 236,608.40million in 2014.
Year

2014

2013

2012

2011

2010

2009

Assets

236,608.4

2,20,930

1,91,276

1,58,078

1,31,784

1,12,677

0
Table 3: Growth in Assets
Growth in Deposit: Over the last Six years the deposit of the bank is increasing at a large rate.
In the last Six years data we can see that the bank has collected deposits in different savings
criteria.
Year
Deposit

2014
1,89,472.5

2013
1,77,519

2012
1,52,901

2011
1,27,178

2010
1,07,253

2009
96,669

4
Table 4: Growth in Deposit
Growth in Loans and Advances: Loans and advances have increased from Tk. 77,497million in
2009 than that of Tk. 147,070.81 million in 2014. Import, export trade finance and working
capital for industrial units were the major lending areas of the bank.

Page 36 of 53

Year

2014

2013

2012

2011

2010

2009

147,070.81

1,34,863

1,26,968

1,07,288

93,981

77,497

Loans and
Advances

Table 5: Growth in Loans and Advances

Growth in Net Profit: SEBL increased operating efficiency and increased revenue both are the
reason behind the growth in net profit.
Year
Net

2014
3,836.94

2013
3,378

2012
1,648

2011
1,912

2010
2,763

2009
1,870

Profit
Table 6: Growth in Net Profit
Return on Assets (ROA): Return on assets (ROA) is measured by the ratio of net income and
total assets. By the returning assets, if the banks net income increases the profitable ratios of the
bank increases. Also by measuring the ROA, it can be determined that what percentage of the
total asset is the net income i.e. how much return are they getting over the assets. SEBL is giving
continued emphasis on quality assets, which resulted in providing a sound asset base for the
bank.
Year
Return

2014
1.67%

2013
1.64%

2012
0.95%

2011
1.32%

2010
2.26%

2009
1.66%

on Assets
Table 7: Return on Assets (ROA)
Return on Equity (ROE): Return on Equity (ROE) represents earning after tax over equity. The
ROE (net income divided by equity capital) is the most important measurement of banking
returns as well as a companys returns because it is influenced by how well the bank has

Page 37 of 53

performed on all other categories and indicates whether a bank can compete for private sources
of capital in the economy. The higher the ROE, the better for the bank, as they are getting higher
amount of net income over the equity.
Year
Return

2014
16.51%

2013
16.20%

2012
8.42%

2011
10.47%

2010
19.41%

2009
16.51%

on
Equity
Table 8: Return on Equity (ROE)

Export: The export the SEBL is increased from 46724 million in 2009 to Tk112,137.60 million
in 2014. The following table shows the growth the export.
Year
Export

2014
112,137.6

2013
95,220

2012
84,464

2011
75,982

2010
58,158

2009
46,724

0
Table 9: Export
Import: The import of the SEBL is increased from Tk. 69583 million in 2009 to Tk155,691
million in 2014. The following table shows the growth the import.
Year
Import

2014
155,691

2013
1,31,644

2012
2011
1,11,537
99,509
Table 10: Import

2010
1,03,726

2009
69,583

4.2 FINANCIAL STATEMENT ANALYSIS

Financial statement Analysis involves a comparison of a firms performance with that of other
firms in the same line of business, which usually is identified by the firms industry
Classification. Generally speaking the analysis is used to determine the firms financial position
so as to identify its current strengths and weakness and to suggest action the firm might pursue to
take advantage of the strength and correct any weakness.
Tools of financial statement analysis

Page 38 of 53

1. Ratio Analysis.
2. Trend Analysis.
3. Index Analysis.
Users of financial statement analysis
Financial statement Analysis is not only important for the firms managers but also for the
films investors and creditors.
-

Internally financial manager use the information provide by financial analysis to help
financing and investment decisions to maximizes the firms value

Externally, stockholder and Creditors use financial statement analysis to evaluate the
attractiveness of the firm as an investment by examining its ability to meet its current
and expected future financial obligation.

Ratio analysis of SEBL

Ratio analysis: Ratio analysis is a diagnostic tool that helps to identify problem areas and
opportunities within a company. The most frequently used ratios by financial analysts provide
insights into a firms
1. Liquidity
2. Degree of financial leverage or debt
3. Profitability
4. Efficiency
5. Value

Page 39 of 53

Importance of Financial Ratio

Ratio analysis is very important for every business, because by calculating ratio analysis we can
understand the business position, business strength and weakness. By knowing this information,
management can takes its necessary steps to organize their goal.
To analysis the financial statements of Southeast Bank Ltd. ratio analysis is used here:-

Bank Profitability Ratio:

Profitability refers to the ability of a firm to generate revenues in excess of expenses. When
making compression across firms it is useful to control for different in their resource base. There
are some basic formulas for profitability ratio:

Return on Assets (ROA):

Calculation:
Year
Net

2014
3,836

2013
3,378

2012
1,648

2011
1,912

2010
2,763

2009
1,870

Income
Assets
% of

236,608
1.67%

2,20,930
1.64%

1,91,276
0.95%

1,58,078
1.32%

1,31,784
2.26%

1,12,677
1.66%

Ratio

The above table shows the numerical presentation of return on assets from year 2009 to 2013.

Page 40 of 53

2.50%

2.26%

2.00%
1.67%

1.66%

1.64%

1.50%

1.32%
0.95%

1.00%
0.50%
0.00%

2014

2013

2012

2011

2010

2009

% of Ratio

Figure 4: Graphical Presentation of Return on Assets (ROA)

Decision: The above figure represents the Return on Assets (ROA) Ratio of Southeast Bank
Limited and we see that in the year 2010 Southeast Bank was in highest profitable position. In
2012 the Bank was in lowest profitable position.
Return on Equity (ROE):
Calculation:
Year
Net Income
Total

2014
3,836
27,462

2013
3,378
21807

2012
1,648
19597

2011
1,912
19000

2010
2,763
17196

2009
1,870
9927

16.51%

16.20%

8.42%

10.47%

19.41%

16.51%

Shareholders
Equity
% of Ratio

The above table shows thenumerical presentation of return on assets from year 2009 to 2014.

Page 41 of 53

19.41%

20.00%
18.00% 16.51%

16.51%

16.20%

16.00%
14.00%
10.47%

12.00%
10.00%

8.42%

8.00%
6.00%
4.00%
2.00%
0.00%
1

Figure 5: Graphical Presentation of Return on Equity (ROE)

Decision: The above figure represents the Return on Equity (ROE) Ratio of Southeast Bank
Limited & we see that in the year 2013 Southeast Bank was in most profitable position. In 2012
the Bank was in lowest profitable position.
BANK Efficiency Ratio
Efficiency is the measure to define the competence of the bank in investment management and
utilization of assets. Banks operating performance can be reviewed in terms of financial
performance and operating efficiency.
Assets-Quality indicators: Loans to Deposits Calculation
Year
Loans and

2014
147,070

2013
1,34,863

2012
1,26,968

2011
1,07,288

2010
93,981

2009
77,497

Advances
Deposit
% of Ratio

189,472
77.62%

1,77,519
75.97%

1,52,901
83.03%

1,27,178
84.36%

1,07,253
87.62%

96,669
80.16%

Page 42 of 53

The above table shows the numerical presentation of from year Loans to Deposits ratio 2009 to
2014.

Assets-Quality indicators
90.00%

87.62%

88.00%
86.00%
83.03%

84.00%

84.36%

82.00%
80.00%
78.00%

80.16%
77.62%
75.97%

76.00%
74.00%
72.00%
70.00%

Figure 6: Graphical Presentation of Loans to Deposits (LTD) Ratio

Decision: The above figure represents the Loans to Deposits (LTD) Ratio of Southeast Bank
Limited & we see that in the year 2013 Southeast Bank was in lowest deposit position. In 2010,
the Bank was in most deposit position.
Loan Ratio (LR):
Calculation:
Year
Loans and

2014
147,070

Advances
Assets
% of Ratio

236,608
62.16%

2013

2012

2011

2010

2009

1,34,863
2,20,930
61.04%

1,26,968
1,91,276
66.37%

1,07,288
1,58,078
67.87%

93,981
1,31,784
71.31%

77,497
1,12,677
68.77%

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74.00%
71.31%

72.00%
70.00%

68.77%

67.87%

68.00%

66.37%

66.00%
64.00%
62.00%

62.16%

61.04%

60.00%
58.00%
56.00%
54.00%
2014

2013

2012

2011

2010

2009

Figure 7: Graphical Presentation of loan ratio

The above table shows thenumerical presentation of Loan Ratio from year 2009 to 2013.

Decision: The above figure represents the Loan Ratio (LR) Ratio of Southeast Bank Limited &
we see that in the year 2010 Southeast Bank was in most loan position. In 2013 the Bank was
decrease loan position.

LIQUIDITY RATIOS

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Liquidity: The ability to instantly pay off the current liabilities of the bank. Thats means the
cash management of the organization policy and efficiency to sanctioning investment compared
to deposits during the specific year of period.

4.3 FINDING OF FINANCIAL RATIO ANALYSIS:

Financial ratio analysis of southeast bank represents the overall performance of their activities in
this part. I have tried focusing the ratio of bank profitability, bank efficiency, in favor of
liabilities and assets over the year. southeast bank how much efficient in their activities to gain
profit against total assets and liabilities, return on deposit and equity, operating and net profit
margin, quality to efficiently use assets, cash management, operating income, assets turnover etc.
calculated in this part. That focuses the management efficiency of southeast bank and
profitability and productivity. Ratio analysis helps to know the performance and capability of this
organization, is it profitable of loss for investors and shareholders.
Return on assets and return on equity are two ratios that measure the overall efficiency of the
firm in managing its total investment in assets and in generating return to shareholders. Return
on investment or return on assets indicates the amount of profit earned relative to the level of
investment in total assets. Return on equity measure the return to common shareholders. The
ratio is also calculated as return on common equity if firm have preferred stock outstanding.
Thats why return on assets ratio is 1.67% that is normal in banking sector but slightly increase
then previous year 0.30% so southeast bank have to increase this ratio. On the other hand return
on equity ratio is 16.51% that is acceptable and good but have to remember that it can be more
by increase efficiency.
The operating profit margin measures the percentage of each sales or deposit and purchase
remaining after all cost and expenses other than interest and taxes are deducted. Net operating
margin is better position in 2014 and also good position then last 5 years.
In risk ratio, deposits to assets ratio and Equity to deposits ratio is better than last year so it is
good sign of southeast Bank.
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4.4 SWOT analysis:

SWOT Analysis is the analysis of strength, opportunity and threat of any product or service. Of
these four important aspects the first two are related with the external environment of the
company and the last two i.e. opportunity and threat are related with the internal environment of
the company. Both manufacturing and service oriented business organizations start to possess
some weakness as time elapse. The weaknesses of an organization can be turned into
opportunities if recognized on time. Moreover, overlooking any threat may result in loosing
valuable business opportunities. For this reason, an assessment of every business organization is
required to judge the performance from the aspects of its Strength, Weaknesses, Opportunities
and Threat (SWOT).Here, a has been made to draw a SWOT analysis on South East BANK
LIMITED.

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Strengths

Weakness

Personal care
Lack of Advertisement
Relationship banking
Limited market share.
Smart Environment with modern thinking
Exposure to large loan
Eagerness to listen customers objections
Excessive dependency on term deposits
Regular Training process
Weak fund management
Reliability
High cost of fund.
Experienced top management
Islamic Branch funds are not ring fenced
Satisfactory capital base
charges for delivering statements
Internal facto
Low infection in loan exposure.
Prospective IT infrastructure

Opportunities

Threats

Regulatory environment favoring private

Increased
sectorcompetition
Development
in the market for quality ass
Credit card
Supply gap of foreign currency
Good relation with customers
Over all liquidity crises in money market
Strong Net work Infrastructure
Negative Attitude of clients
Locker Service
Rules and Regulation of Bangladesh bank

External facto

Positive

Negative

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CHAPTER 5: FINDINGS OF THE REPORT

FINDINGS
While working at Southeast Bank. Dhanmondi Branch I have attained to newer kind of
experience. After the collection and analysis of data I have got some findings. These findings
are completely from my personal point of view.
Those are given below:

Southeast Bank Limited has already established a favorable reputation in the banking
industry of the country. It is one of the leading private sector commercial banks in
Bangladesh. The bank has already shown a tremendous growth in the profits and
deposits sector.

The bank successfully stepped in to the Nineteen year of operations having enjoyed
the complete confidence of the depositors and achieving significant growth in the
entire areas of banking operations

The bank follow the online banking system to provide the customer better services; but
all the branches of Southeast bank do not following the online banking system

The Bank has a deposit base of Tk. 189,472 million 2014, which posted a growth of
6.73% then last year.

The consistent and increasing growth trend of the above mentioned performance
indicators has increased depositors confidence as well as good will/reputation of the
bank to a great extent and these have contributed to increase the shareholders value.

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The bank focused on building high-quality human resources with expertise and
professional skills adopting the Human Resources Re-engineering and Development
Plan with a view to creating an excellent clientele service environment for ultimate
achievement of sustained profit growth making no comprises with the quality asset
creation

The Banks Human resources Development strategy is to build up quality manpower

with conceptual/managerial Knowledge, skills through designing/arranging of
continuous in-house and outside training programs

The bank focuses on customer-friendly marketing approaches by offering various

efficient delivery of personalized banking services at the clients door steps and caters
to the ever-growing financing needs of clientele at a competitive price

The company philosophy to workout best solutions for customers and clients as a
business and customer friendly Bank

South East bank has an interactive corporate culture the working environment is very
friendly, interactive and informal. And there are no hidden barriers or boundaries while
communication between die superior and the subordinate. This corporate culture
provides as a great motivation factor to the employees.

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CHAPTER 6: RECOMMENDATION AND CONCLUSION

6.1 RECOMMENDATION
Improvement of customer service:
Southeast bank should make its service prompt so that people need not give more time in the
banking activities and fell easy to perform all respective activities. Moreover they have to come
up with new facilities and offer which will attract more client and help to ensure their premium
as well as loyal customer forever. Therefore they have to ensure1. The working process should be more faster with better computers and operating
systems
2. Trained, experienced, smart, knowledgeable as well as intellectual personnel to
provide fastest and the best services.
3. Individual attention can be given to customers in order to better understand the
customers needs and better satisfy them.
4. More ATM booth in different merchant location
5. More Gifts, Discounts as well as differentiated interest rates on several loan and
deposit schemes for the Premium Customers.
Ensure Proper Division of Labor and man power:
The human resource departments of southeast bank have to ensure proper division of labor in
desk for handling the rash of customer in an efficient way. Therefore based on importance and
work load they have to ensure proper division of labor. Moreover by increasing the numbers of
personnel try to maintain the premium banking objective. Mainly the number of human resources
is needed in Front Desk and in clearing section which really insufficient for giving services to
huge number of customers.
Ensure Proper compilations & Maintenance of Files:
Ensuring proper customer service is a continuous process in banking business. Which is vital for
it success. The service starts from the first day of customer interaction with banker. To know
customer, maintain interaction, conducting banking activities and for the security purposes the
file maintenance of individual client is most important. If one single paper is missing then it can
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create a big problem as well as hazard to both banker and their customer. Therefore both branch
management and all personnel should more conscious about the proper compilations as well as
decoration for keeping important files.
Ensure availability of Machineries:
Every department should ensure the availability and proper maintenance of necessary machines
like photocopy and printing machines.
Ensure employee satisfaction:
Management of the bank has to provide time to time recognition of their employee. Moreover
short probationary period and on time promotion motivated the employee to perform well in their
day to day activities. But the most important thing is the overall motivational activities should be
proceeding under fair judgment based on performance rather internal politics. In addition
through assurance of proper division of labor, incentive for over duty and mandatory leave help
to overcome huge working load and enjoy a sound as well as healthy life. Besides good
relationship amongst employee and sound working environment also help the employee to be
satisfied with their job.
Ensure proper promotional activities:
They must prepare an organized set of plan regarding the advertising and promotional activities
which should include billboards, internet advertising and sponsorship. The sales team and
officers should provide periodic training on interacting and dealing with different classes of
potential and existing customers.
Should use fastest software:
SEBL, should uses more first and modernize software for internal transaction or entry the
information to compete with foreign bank. So I think the new software can help to perform
internal work more easily and swiftly.

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Ensure internship desk and specific task:

This branch is renowned for the internship. So bank should provide the internship desk and some
specific task for gathering some real life experience which they can utilize in their future job.
Moreover small amount of remuneration should provide to internee for realize their importance
as well as motivate to perform the task properly.
6.2 CONCLUSION
Banking sector already emerged as an important vehicle for business. It has no doubt that as a
developing country we need to strengthen our banking sector. Now a days, banks are doing
almost same thing but in a different manner. But all of them intend to work for the welfare of the
nation. Southeast Bank Limited is not different from them.
During my internship I found out that, SEBL is a highly potential bank. This bank performs a lot
of important banking and non-banking activities for both private and government. SEBL focuses
on developing the socioeconomic condition of this country. Other banks are contributing more on
investing where SEBL allocates most of their funds in important project for the national
economic progression.
I observed them closely and I found enormous potential in this bank. This practical orientation
program, in first has been arranged for gaining knowledge of practical banking and to compare
this practical with theoretical knowledge. Comparing practical knowledge with theoretical
involves identification of weakness in the branch activities and making recommendations for
solving the weakness identified.
I gathered a brief knowledge about the current situation of the Banking sector in Bangladesh. As
we know 3 months is a short duration to understand a whole sector. Before internship I had idea
about banking but that was only bookish. Now after completing my internship period and
preparing term paper on it I got practical aspect of banking. It will definitely help me to see the
things from banking perspective also.
However, this experience helped to understand the job market as well. I knew that this internship
program will give me an opportunity to enhance myself, for that reason highest effort have been
given to achieve the objective of the program.
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References and Bibliography

Annual report of 2014

Prospectus of southeast Bank.

Different Brochures, Forms published by Southeast Bank Ltd.

International Financial Management, Jeff Madura, 9th edition
Kendrick, John. W, (1996) Productivity Trends in the United States, Princeton University

Press, Princeton, New York

Krinter, (1990 & 1991), Management, Houton Mifftin Co., Boston quoted in Haradhan

Sarkar, Productivity Commercial Banks:

Concepts and Related Issues, Bank Parikrama
Kumar Pradeep. Elements of financial management Kedar Nath Ram Nath & Co. 8th

edition.
Bank Management and Financial Services, Peter S Rose and Sylvia C Hudgins
Economic review, December 2010
Dhaka Stock Exchange, Website: www.Dse.com.bd
Bank Info Beta, Website: bankinfobd.com
Bank in Bangladesh, Website: bank.bangladeshinformation.info

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