Internship Report on General Banking Procedures Of Bangladesh Commerce Bank Limited (BCBL) And Identify Areas of improvement

We are in new dynamic millennium of 21st century. It is very interesting to observe how organizations are involved to shape them for a new arena. Especially banks are directly in action to upgrade the economic position of countries every time. We all know that bank is a service-oriented organization. It renders banking services to the customers. No doubt customer services contribute vastly and rapidly to the development of business as well as the economy. With the clear mission to provide efficient banking services and to contribute socio- economic development of the country, Bangladesh Commerce Bank Limited emerged as a new commercial bank and inaugurated its operation on June 1999. The bank stood 35 branches all over the country up to 2011. There is government, private also three government bank such as Sonali Bank, Agrani Bank, Rupali Bank involved in creating Bangladesh Commerce Bank Limited. The sponsors of the bank have a long heritage of trade, commerce and industry. They are highly regarded for their entrepreneurial competence.

Bangladesh Commerce bank Limited to contribute social and economical development, creating employment opportunities, service to their valued customers, provide efficient computerized banking system, enhance foreign exchange operation , accept deposits on profit loss sharing basis, established a welfare orientated banking system.

Mainly operations of BCBL go under the following heads:
# General Banking
# Investment
# Foreign exchange
General banking is the starting point of all the banking operations. It is the department, which provides day-to-day services to the customers. It opens new accounts, remit funds, issue bank drafts and pay orders etc. Provide customer through quick and sincere services is the goal of the general banking department.
Bank investment is an important catalyst for bringing about economic development in a country BCBL plays an important role to move the economic wheel of the country. Providing different
sorts of credit and schemes like loan against imported merchandise , SME, Trust Receipt, Bank Guarantee, Industrial Loan, IT Loan, Consumer Credit Scheme, Executives Car Loan, House Finance is the main spring of the credit of the credit department.
As a service-oriented organization BCBL is serving it’s customer through its different department; Foreign exchange department plays significant roles through providing different services for the customer. Letters of credit is the key player in the foreign exchange business. With the globalization of economics, international trade has become quite competitive. Timely payment for exports and quicker delivery of goods is, therefore, a pre-requisite for successful international trade operations. To ensure this purpose BCBl transmit L/C through SWIFT (Society for Worldwide Inter bank Financial Telecommunication) to the advising bank.

Bangladesh Commerce Bank Limited is providing sort LC services like L/C opening, lodgment, BLC(bills under letter of credit), Back to back LC etc. Foreign exchange department also provide foreign remittance lie traveler’s cheque, money Gram foreign demand draft, endorsement of US dollar in passport.

Bangladesh Commerce Bank Limited is a well known Bank in our country. It has gained firm confidence in the minds of its clients within a short period of its operation. The success is primarily attributed to prompt and bold decision-making, efficient and cordial services, economic use of resources and introduction of new financial products and technologies .The continued endeavors of the Management and Staff of the Bank under prudent guidance and timely support of the Board of Directors have substantially contributed to success of the Bank.

Bangladesh Commerce Bank Limited was incorporated on June1, 1998 as a Public Limited Company with limited liability under the company act 1994, Banking Companies act 1991 and in accordance with the act no. 12 of 1997 and commercial operation on June 1999. The Bank formally started operation from September 16, 1999 with the slogan of “A People’s Bank with a Mission”.

During this short span of time the BCBL has been successful to position itself as a progressive and dynamic financial institution in the country. The BCBL has been widely acclaimed by the business community, from small entrepreneurs to large traders and industrial conglomerates, including the top rated corporate borrowers for forwarding-looking 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 country’s Banking Sector as a bank with vision. Presently it has 30 (Thirty) branches in operation up to31decmber 2011. Recently Small and Medium Enterprise (SME) Financing Scheme has been introduced to assist new and experienced entrepreneurs to invest in small and medium scale industries. During the year 2012 the BCBL has plan to open more branches in countries.

BCBL is fully committed to the delivery of superior shareholders’ value, initiative ranging from having more efficient capital structures & improving return on equity , pursuing a high dividend payout policy to the pursuit of excellence corporate governance have been undertaken with a view to enhancing superior shareholder value. With an unbroken profitability track record of 3 years since Bangladesh Commerce Bank started operation despite devastating flood & economic upheavals after 1/11 underpinning the investors’ confidence.

Bangladesh Commerce Bank Limited has been licensed by the Government of Bangladesh as a scheduled 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 BCBL has, within a period of 12 years in operation of its operation, achieved a remarkable success and always met up capital adequacy requirement set by Bangladesh Bank.

1.1: Origin of the Report
This is the report what I prepared based on my internship program. Department of Business, ASA University of Bangladesh, arranges internship program in attachment with different business organizations for its students after the competition of theoretical courses of program of Master of Business Administration. A group of intern must carry out a specific project, which is assigned by the concerned organization and approved by the internship and placement committee of department of business. ASA University of Bangladesh consequently a report based on the project is to be submitted to the committee.

In this particular report, the author is the interns of the previously mentioned program and the concerned organization is Bangladesh Commerce Bank Limited.

Hence I was placed in Bangladesh Commerce Bank Limited; Feni Branch from 02-06-2012 to continue in way of delegation, responsibility of carrying out the study has conferred upon the concerned interns.

1.2: Background of the Study
Banking in Bangladesh has passed through an era of unprecedented all round growth since the nationalization of commercial banks aftermath our independence. The branch network has widened and functional dimensions broadened. Loan activities in the banks now-a-days have assumed new dimensions and this requires up to date knowledge and skill on the part of the bank managers and those in the field of banking profession about the state of art of lending wisely. Extending credit always bears the risk of being defaulted. So policy of credit expansion and credit management style has inherent importance to the bankers. And the recent wary about the classified loan hints the importance of studying the credit management of the private commercial banks. Since the BCBL is enjoying the lowest rate of classified loan among the commercial banks operating in the country.

1.3: Objectives of the Study

This study is aimed at focusing on Commercial Banking operational system and performance analysis in Bangladesh. In addition to this a comparative observations would be made with other Commercial banking operation. The objectives are:
To familiar with the managerial skills.
To focus on products, services and financial condition of BCBL.
To expose strengths and weakness of BCBL in comparison with competitors.
To gather knowledge about function of different sections under general banking activities.