Internship Report on Janata Bank

Janata Bank Limited is the 2nd largest state owned commercial bank in Bangladesh. Immediately after the emergence of Bangladesh in 1971, the erstwhile United Bank Limited and Union Bank Limited were named as Janata Bank. It was established under the Bangladesh Bank order 1972. During the privatization process it was incorporated as a public Limited Company on 21, May 07 vide certificate of incorporation No-C66933(4425)07. The Bank has taken the over the business of Janata Bank at a purchase consideration of Tk. 2593.90 million as a going concern through a vendor agreement signed between the Ministry of Finance of the Peoples’ Republic of Bangladesh and the Board of Directors on behalf of Janata Bank Limited on 15th November 2007. Janata Bank Limited operates through 851 branches including 4 overseas branches at United Arab Emirates and a subsidiary company named Janata Exchange Company Srl in Italy. It is linked 1202 foreign correspondents all over the world.

* Janata Bank Limited operates through 886 branches including 4 overseas branches at United Arab Emirates. It is linked with 1202 foreign correspondents all over the world. * The Bank employees more than 15(fifteen) thousand persons. * The mission of the bank is to actively participate in the socio- economic development of the nation by operating a commercially sound banking organization, providing credit to viable borrowers, efficiently delivered and competitively priced, simultaneously protecting depositors funds and providing a satisfactory return on equity to the owners. * The Board of Directors is composed of 13 (Thirteen) members headed by a Chairman. The Directors are representatives from both public and private sectors. * The Bank is headed by the Chief Executive Officer & Managing Director, who is a reputed banker. * The corporate head office is located at Dhaka with 10 (ten) Divisions comprizing of 38 (thirty eight) Departments

Mission:
To be recognized as the leading commercial bank in the Bangladesh market providing retail and corporate banking services and as a trusted and respected partner in the social and economic development program of our nation. Vision:

To become effective largest commercial bank in Bangladesh to support socio-economic development of the country and to be a leading bank in South-Asia.

Nature of business
The Bank provides all kinds of commercial banking services to its customers including accepting deposits, extending loans & advances, discounting & purchasing bills, remittance, money transfer, foreign exchange transaction, guarantee,commitments etc. The principal activities of its subsidiary Janata Exchange Company Srl. Italy (JEC) is to carry on the remittance of hard-earned foreign currency to Bangladesh. Another subsidiary company Janata Capital and Investment Limited, Dhaka is to act as issue manager, share underwriter and portfolio manager. The Bank has opened an NRB branch at Motijheel, Dhaka to render exclusive service to non resident Bangladeshis.

Subsidiaries of the Bank
Janata Bank Limited has two 100% owned subsidiaries named Janata Exchange Company Srl. Italy and Janata Capital and Investment Limited, Dhaka, Bangladesh. Janata Capital and Investment Limited, Dhaka

The consolidated financial statements of the Group and the financial statements of the Bank as at and for the year ended 31 December 2011 have been prepared under the historical cost convention and in accordance with Bangladesh Financial Reporting Standards (BFRSs), the ‘First Schedule’ (section no. 38) of the Bank Companies Act 1991, as amended by the BRPD Circular no. 14 dated 25 June 2003, other Bangladesh Bank Circulars, the Companies Act 1994, the Securities and Exchange Rules 1987 and other laws and rules applicable in Bangladesh. In case the requirement of provisions and circulars issued by Bangladesh Bank differ with those of other regulatory authorities and accounting standards, the provisions and circulars issued by Bangladesh Bank shall prevail. Janata Capital and Investment Limited Dhaka incorporated on 13 April 2010 vide incorporation certificate no. C-83898/10 issued by the Registrar of Joint Stock Companies and Firms (RJSC) with 100% ownership of Janata Bank Limited having Tk. 5,000 million authorised capital and its paid-up capital is Tk. 2,000 million. The company starts its operations from 26 September 2010 and its main functions are issue management, underwriting and portfolio management.

Janata Exchange Company Srl, Italy

Janata Exchange Company Srl. Italy was incorporated on 18 January 2002 vide Ministry of Finance letter dated 3 January 2001 and letter dated 27 June 2001 with 100% ownership of Janata Bank Limited having authorised capital of ITL 1.00 Billion and its paid-up capital is 600,000 EURO.

Apart from Rome Branch, JEC, Italy has another Branch in Milan, Italy, which was established vide MOF’s approval

Sources of fund: Bank collects its fund in four ways and this are-
* Deposit
* Loan
* Bills payable
* Equity and others

Uses of funds: Bank uses its fund in the following way-
* Cash and Bank balance
* Loans and advances
* Investment and called-up loan
* Fixed assets and others
From the above facts and figure an inference is reached that Janata bank limited didn’t perform well as it should be. Because being a first generation it should establish precedence to its follower by which they may be encouraged to follow.

Services of the Organization

Besides normal banking operation, Janata Bank Limited offers special services to a large number of clients/agencies throughout the country. Under the network of utility service, customers of different govt. organizations, corporate bodies, local bodies, educational institutions, students, etc are continuously getting benefits from the Bank. Janata Bank Limited’s utility services are: Bills Collection:

* Gas bills of Titas, Bakhrabad and Jalalabad Gas Transmission and Distribution Companies. * Electricity bills of Dhaka Electricity Supply Authority, Dhaka Electricity Company, Bangladesh Power Development Board and Rural Electrification Board. * Telephone bills of Telegraph and Telephone Board.

* Water/Sewerage bills of Water and Sewerage Authority.
* Municipal holding tax of City Corporation/ Municipalities.
* A pilot scheme is underway to provide personalized services to our clients. Payments made on behalf of Govt.
* Non- Govt. teacher’s salaries
* Girl Students scholarship/stipend & Primary Student Stipend.
* Army pension
* Widows, divorcees and destitute Women Allowances
* Old-age Allowances
* Food procurement Bills
As per decision of the govt. 46 (Forty Six) branches of our bank (40 branches in Dhaka city, 1(one) branch in N.gonj city and 5(five) branches in Chittagong city) are involved to receive the all utility bills in a same station from January’04.

Management Aspect
Like every other business organization, the top management makes all the major decisions of Janata Bank. The board of directors being at the highest level of organizational structure plays an important role in policy formulation, but it is not directly concerned with the day-day operations of the bank. They have delegated this duty to the management committee. The board mainly establishes the objectives and policies of the bank.

One chairman, eleven directors, one CEO & MD and one company secretary are consist of Board of Directors of Janata Bank Limited.

Mid and lower level employees get the direction and instruction from the Board of Directors about the duties and tasks they have to perform. The chief executive provides the guideline to the managers and employees, but delegates responsibility for determining how tasks and goals are to be accomplished.

Future Plans of the Organization
1. To involve in export activities in a large scale by maintaining good communication with various parties. 2. To collect new members in FY2012 to start export related new business. 3. At least 2 new AD branch will open in FY2012.

4. More facilities will provide to the exporters on the basis of export priority. 5. New Credit Product will start in a large scale by name of BMRE Loan for export project to expand factory, import machineries, purchase transport among exiting parties. 6. To take the competitive position charge, decrease commission and other facilities will continue. 7. To increase export business monitoring system has made stronger in head office and respective branches. 8. To increase export business has appointed sufficient manpower, providing special services and related different training program of officers has been will be started.