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Text of Internship

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Bank Asia

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Bank Asia


Prepared for: Dr. Sanjib Kumer Shaha Professor Department of Marketing University of Rajshahi Bangladesh

Prepared by: MD. EMRAN KABIR EMBA, 4th batch Roll-10153011UNIVERSITY OF RAJSHAHI


March 23, 2012

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Letter of submissionMarch 23, 2012 Dr. Sanjib Kumer Shaha Professor Department of Marketing University of Rajshahi Bangladesh

Subje ct

: Submission of Internship report on Marketing Style & Evaluation of Bank Asia limited.

Dear Sir, I would like to submit the report on Marketing Style & Evaluation of Bank Asia limited that you assigned me as partial fulfillment of my EMBA degree requirement. In preparing the report I collected and analyzed all the pertinent information. I have tried my best to analyze the information as comprehensively as possible and if you need any further information, kindly call me at your cnvenience.

Sincerely yours,

MD. EMRAN KABIR EMBA, 4th batchPage 3 of 78

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TABLE OF CONTENTSPage No. Chapter 1 (INTRODUCTION) Origin of the Study Objective of the study Methodology of the Study Limitations of the Study Company background Chapter 2 (DEPARTMENTS OF THE BRANCH) Customer service & Clearing Cash Accounts Foreign Trade Credit 4-11 12-15 16-17 18-26 27-46 1 1 1 1 2-3

Chapter 3(CONCLUSION) 47

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It was difficult to prepare a report within this short period. A good number of personnel from the branch helped in various ways by providing their valuable time, information and idea to me. At the very beginning, I obviously express my heartiest thanks and appreciation to Mr. Md. Mozaffor Hossain, Manager & Senior Vice President of the branch. Finally, I convey my sincere thanks to my parents, brother, friends , colleagues and relatives who inspired me in completing the report in different ways.

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Executive Summary

Financial sector in Bangladesh comprises of mainly banking sector, insurance companies, stock market, non-bank financial institutions and micro financing institutions. Out of these, banking sector dominates the financial system, accounting for more than 95% of its total assets. Banking system of Bangladesh has gone through three phases of development --Nationalization, Privatization and Financial Sector Reform. Like in many other emerging market economies, commercial banks in the Bangladesh economy are to face an increasing competition for their business in the coming days. Their business will no longer remain easy as they had earlier. In the beginning of 1990s, seven more private commercial banks were permitted, of which of course, two were reconstituted in new names after their collapse. These banks have become known in our economy as the second-generation banks. In a third wave, a dozen more banks are permitted by the Bangladesh Bank and a number of new foreign banks entered into our economy. These banks have become known in our economy as the third-generation banks. Now, we can say, our commercial banking business, which is an important segment of the financial sector, consists of two dozen private commercial banks, fourteen foreign banks, four NCBs. The other segment of the financial sector is represented by about two dozen insurance companies, six non-banking financial institutions, few leasing companies and twenty newly permitted merchant banks. Bank Asia Limited is one of the few banks permitted by the Bangladesh bank in the late 90s; the other banks permitted earlier are Mercantile Bank Limited, Standard Bank Limited, One Bank Limited, EXIM Bank Limited, Premier Bank Limited, Mutual Trust Bank Limited, First Security Bank Limited, The Trust Bank Limited, Jamuna Bank Limited, BRAC Bank Limited and Shahjalal Islami Bank Limited. These banks are known as the third generation banks and fortunate to

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Bank Asiaremain immune from the bad loan culture. However, the performance of these banks are not the same, the Bank Asia Limited remained as one of the top performers among them.

Chapter 1:


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1.1ORIGIN OF THE STUDY:This report has been prepared after three months Internship program in Bank Asia , Bogra Branch. I worked under the supervision of Mr. Md. Mozaffor Hossain SVP & Manager, for his assistance and guidance in completing this report on Bank Asia Ltd. I am going to describe the various day to day activities that I have observed in the various departments of the branch.

1.2 METHODOLOGY OF THE STUDY:The information, required to prepare the report, has been collected from primary as well as secondary sources. Primary Sources: Primary information regarding the Bank Asia Limited has been obtained through face to face conversation with some of the officials of the branch, personal observation by visiting different desks during internship period, official Records ofBank Asia Limited.

Secondary Sources: Annual reports, banks records, leaflets, corporate newsletters, branch manuals, banks website, various publications of the bank are the sources for collecting the Secondary information.

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1.3 LIMITATIONS OF THE STUDY:Although it is difficult for me to get co-operation from all employees of Bank Asia Ltd, in some departments such as, customer service and cash, they were extremely busy. So they were not able to give more time as there should be. Total duration of job rotation program was not sufficient to give me complete understanding of the function of the various departments I was rotated through.

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Chapter 2:

Company Information

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Bank Asia Limited is one of the third generation private commercial banks (PCBs), incorporated in Bangladesh on 28 September 1999 as a public limited company under the Companies Act 1994, and governed by the Bank Companies Act 1991. The Bank went for public issue of its shares on 23 September 2003 and its shares are listed with Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited. At present the Bank has 36 branches and 18 ATM booths. Bank Asia Limited acquired the business of Bank of Nova Scotia (incorporated in Canada), Dhaka, in the year 2001 and at the beginning of the year 2002, the Bank also acquired the Bangladesh operations of Muslim Commercial Bank Limited (MCBL), a bank incorporated in Pakistan, having two branches at Dhaka and Chittagong. In taking over the Bangladesh operations, all assets and certain specific liabilities of MCBL were taken over by Bank Asia Limited at book values. The registered office of the Bank is located at Tea Board Building (1st floor), 111-113, Motijheel C/A, Dhaka-1000. The principal activities of the Bank are to provide all kinds of commercial banking services to its customers through its branches in Bangladesh. The Bank obtained the Islamic Banking unit permission vide letter no. BRPD (P-3)745(53)/2008-4804 dated 17 December 2008. The Bank commenced operation of this unit from 24 December 2008 and its office is located at House-79A, Road07, Sector-4, Uttara Model Town, Uttara. The Islamic banking unit is governed under the rules and regulations of Bangladesh Bank. During this short span of time the Bank had been successful to position itself as a progressive and dynamic financial institution in the country. The Bank had been widelyPage 11 of 78

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acclaimed by the business community, from small entrepreneur to large traders and industrial conglomerates, including the top rated corporate borrowers for forwardlooking business outlook and innovative financing solutions. Thus within this very short period of time it has been able to create an image for itself and has earned significant reputation in the countrys banking sector. The Company Philosophy For a Better Tomorrow has been preciously the essence of the legend of banks success.


Corporate information:

Letter of Intent received : 24/02/1999 First meeting of the Promoters held : 15/04/1999 Certificate of Incorporation received 28/09/1999 Certificate of Commencement of Business 28/09/1999 First meeting of the Board of Directors held 01/10/1999 Banking License Received 06/10/1999 First Branch license received : 31/10/1999 Inauguration of Bank : 27/11/1999 Date of Publication of Prospectus : 29/06/2003 Date of IPO Subscription : 23/09/2003, Number of Promoters : Number of Directors :

: : : :

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Number of Branches



The Mission of Bank Asia is noted below:

To assist in bringing high quality service to our customers and to participate in the growth and expansion of our national economy. To set high standards of integrity and bring total satisfaction to our clients, shareholders and employees. To become the most sought after bank in the country, rendering technology driven innovative services by our dedicated team of professionals

2.4 Vision of bank Asia limited is noted below: Bank Asias vision is to have a poverty free Bangladesh in course of a generation in the new millennium, reflecting the national dream. Our vision is to build a society where human dignity and human rights receive the highest consideration along with reduction of poverty.



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Board of directorsCHAIRMAN Mr. A Rouf Chowdhury VICE CHAIRMAN Mr. Md. Safwan Chowdhury Mr. Mohammad Lakiotullah



Aminul Islam S.M. Khorshed Alam OFFICER Mohammed Roshangir Humaira Azam


A.H.J. Rahman Nasirul Hossain OFFICER Syed Nazimuddin

Swapan Dasgupta Diagram: Organizational Hierarchy DIRECTORS A.K.M. Shahnawaj Mr. Anisur Rahman Sinha Mohammad Borhanuddin Mr. A M Nurul Islam Md. Sazzad Hossain Mr. Romo Rouf Chowdhury Maruf Mohammed Ahsan Ms. Rumee A Hossain SENIOR VICE PRESIDENT Mr. Moshiur Rahman Md. Ashrafuddin Ahmed Mr. Faisal Samad Md. Mozaffor Hossain Mr. Md. Irfan Syed Md. Abu Bakar Lasker Lt. Col. (Retd.) Fariduddin Ahmed Mohd. Shahabullah A.H.J. Rahman Ms. Sohana Rouf Chowdhury A.K.M. Shaiful Islam Chowdhury S.M. Iqbal Hossain Mr. Shah Md. Nurul Alam Syed Iltefath Hossain Mr. Nafis Khandaker Raja Miah


PRESIDENT & MANAGING DIRECTOR Mr. Mehmood Hussain COMPANY SECRETARY Mr. Aminul Islam Boards Audit Committee Mr. Romo Rouf Chowdhury

VICE PR ESIDENTNiaz Ahmed Chowdhury Md. Zahid Hossain Md. Zia Arfin Md. Azharul Islam Md. Afzal Haque Sufi Tofael Hossain

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Chapter 3:Page 15 of 78

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Department of the branch

3.1 Overview of the activities of the branch: At the very first day, as an intern of Bank Asia Ltd, Bogra branch I was assigned for Job Rotation Program. The program helped me to understand the overall activity of each and every departments of the Bank at a glance.

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From the program, I come to know that a bank divides its operation among some departments and deploys its workforce to the department to cope with the customers unique demand. To provide the customer instant and prompt service, a bank divides its operation among following departments: 1. 2. 3. 4. 5. 6. 7. 8. Accounts department Customer service department Cash or teller area Foreign exchange department Credit department Consumer credit department/ recovery unit SME(short and medium enterprise) Reception desk

The activities performed by some crucial departments are elaborated below:


Accounts department

Accounts Department is at the central position of any Banking operation that controls and monitors all the transaction in the form of check and balance. This is the desk of a banking system that works in background to make sure that all the operations are being performed correctly. This is basically back end activities and performed at the end of every transaction. Any deviation in proper recording may hamper public confidence and the bank has to suffer a lot otherwise. Improper recording of transactions will lead to the mismatch in the debit side and the credit side. To avoid these mishaps, the banks provide the separate department - Accounts department, whose function is to check the mistakes in passing vouchers or wrong entries or fraud or forgery. 3.2.1 CHART OF ACCOUNTS: Generally a chart of accounts is maintained in any transaction record. There are five major head of Chart of accounts: Asset Liability

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Bank Asia Capital Income Expense

All the transaction regarding loans and advances goes under liability head and any sorts of transaction of deposits goes to asset head. These are usually party accounts. Actually any effect of asset is reflected in income, which can be interest income, or noninterest income. On the other hand any effect of liabilities goes under expense account. Any transaction related to income and expense within a branch is posted under General Ledger account and any inter branch transaction posted under Bank Asia General Account As per the function of Accounts department we can divide the whole work under two categories: Daily job Periodical job

System Open Page 18 of 78

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Daily Works in Progress

Activities Start in Other Department

Voucher Posting Vouchers from Various Department Remove Posting Related Barriers Expense Control Expenditures of Other Department

Day Close

Figure: Daily Function of Bank Asia Ltd.s Accounts department


Day Beginning & Ending:

Day Beginning and Ending are software operations that are used to differentiate among transactions of different days and record them accordingly. At the very beginning of a day, the accounts department begins the day. At this stage, all the transactions that are entered into the system in the previous day are processed. If all the accounts are found correct, then the previous day is ended and the new day is begun. Similarly that day is closed in the next day morning and a new day is begun.


Statement Preparation:

Accounts department prepares statement on daily, weekly, mo...

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