General Banking of IFIC Bank


General Banking Department usually performs a lot of important banking activities. General banking department is that department which is mostly exposed to the maximum number of bank customers. It is the introductory department of the bank to its customers. All business concerns earn a profit through selling either a product or a service. A bank does not produce any tangible product to sell but does offer a variety of financial services to its customers. The North Brook Hall Road Branch of IFIC Bank Limited has all the required sections of general banking and these sections are run by manpower with high quality banking knowledge. Hence, a touch of rich customer service is prevailing in the branch.


Origin of the report

This report originates to fulfill the requirement of studying BBA Program of Northern University Bangladesh. This program has been designed to facilitate the students with basic theoretical and practical knowledge in the job activities in the context of Bangladesh as well as worldwide.

Since the BBA program is an integrated, practical and theoretical method of learning, this program are required to have practical exposure in any kind of business organization last term of this program. This report has been prepared on practical orientation.


Objectives of the report


The objectives of the report are as follows


Ø  To know the general description of the branch banking

Ø  An exposure of practices of different banking activities in IFIC Bank Ltd.

Ø  Relevant rules, regulations, theories and practices for banking.

Ø  To gather knowledge about general banking  activities

Ø  To identify the documentation & guideline for the potential customer.

Ø  To have some practical exposure that will be helpful in the practical life.


Scope of the study

I have prepared my report of IFIC Bank Ltd on North Brook Hall Road Branch. To prepare this report I mainly focused on the General Banking activities of the North Brook Hall Road Branch. Necessary data and information are collected mainly from the account opening, bills receive and collections issuing of DD, PO, TT as well as problems in banking process.



The methodology of this report is very different from conventional report. I have emphasized on the practical observation through this report is prepared based on primary and secondary data.

While preparing the report, I have taken information from the following sources:

 The primary sources

  1. Observation of banking activities
  2. Conversation with the respective executives & officers of the Bank.
  3. Practical work exposures from the different desks of the IFIC Bank, North Brook Hall Road Branch.

 The secondary sources

  1. Daily diary (containing my activities of practical orientation in IFIC Bank Ltd) maintained by me.

  2. Periodicals published by Bangladesh Bank.
  3. Website of IFIC Bank Ltd.
  4. Annual report of the Bank.
  5. Personal investigation with bankers.


The Limitations of the report

This study is subject to the following limitations –

Ø  First of all the time limitation, it is not possible to gather all the information about the banking activities in 3 months internship period

Ø  Difficulty in gaining accesses to financial sector.

Ø  Non-availability of the most recent statistical data.

Ø  As an internee it was not possible for me to collect all the necessary secret information.

Ø  I had to complete this report within a very short span of time (three month) that was not sufficient for investigation.

Ø  Besides this, it was very difficult to carry out the whole analysis on the basis of limited scope of study.

Ø  Also some employees in the bank are very reluctant to give the information about the banking activities frankly.

Historical Background of IFIC Bank Limited

International Finance Investment and Commerce Bank Limited (IFIC Bank) is a banking company incorporated in the People’s Republic of Bangladesh with limited, International finance Investment and Commerce (IFIC) bank limited started banking operation on June 24, 1983.

It was set up at the instance of the Government in 1976 as a joint venture between the Government of the Bangladesh and sponsors in the private sector with the objective of working as a finance company within the country and setting up joint venture banks/financial Institutions abroad. The government held 40% shareholder & 60% were held by the sponsors & general public. In 1983 when the Government allowed banks in the public sector, IFIC was converted into a full-fledge commercial bank. The Government of the People’s Republic of Bangladesh now holds 35% of the share capital of the bank. Leading industrialists of the country having vast experience in the field of trade and commerce own 34% of the share capital and the rest held by the general public.

At the very beginning the 67 percent share are owned by private entrepreneur and 33 percent are owned by Govt. at the end of 2008 the authorized capital was 1,600 million and the paid up capital was 1,341 million only. Annual report as on 2008 the ownership of non Govt. sector is included.

Missions of IFIC Bank Limited

The mission of IFIC bank is to provide service to clients with the help of a skilled and dedicated workforce whose creative talents, innovative action and competitive edge make our position unique in giving quality service to all institutions and individuals that we care for.

IFIC bank is committed to the welfare and economic prosperity of the people and the community, for we derive from them our inspiration and drive for onward progress to prosperity. In an intensely competitive and complex financial and business environment, it particularly focus on growth and profitability of concerned.

 Products and Services of IFIC Bank

IFIC Bank Limited offers various products and services. The bank has highly qualified professional staffs that have the capacity to manage and meet all the requirements of the bank. Every account is assigned to an account manager who personally takes care of it and is available for discussion and inquiries, whether on writes, telephones or calls.

Deposit Product Loan Schemes:

Deposit Product

Loan schemes

  • Current Deposit Account (CD)
  • Saving Deposit (SB)
  • Short Term Deposit Account (STD)
  •  Fixed Deposit Receipt (FDR
  • Pension Saving Scheme (PSS)
  • Monthly Income Scheme (MIS)


  • Secured over draft (SOD) General
  • House Building Loan (Staff)
  • Term Loan (Industrial)
  • Consumer credit Scheme (CCS)
  • Easy Loan (Means secured personal loan to meet personal financial requirement)
  • Consumer Durable Loan
  • Education Loan
  • Thikana Or House Building Loan
  • Flexi Loan
  • Peshajeebi Loan
  •  Auto Loan



Capital structure of IFIC Bank Ltd.


Capital structure

Amount TK.


Initial Authorization capital

100 million


Authorized capital enhanced in 2008

1,600 million


Initial paid-up capital in 2008

1,341 million


The total equity of sponsors Directors& statutory reserves

45,729.47 million


Through (Issuance of IPO Officer)

3197 million

Table 1.1: Capital structure of IFIC Bank Ltd.

Financial Highlights

Sl No. Particulars

Taka in million

2008 2007 2006 2005
01 Paid up capital 1341.43 670.72 406.39 40.64
02 Total Capital 3793.04 3045.09 2028.39 175.44
03 Capital Surplus 733.30 644.64 172.33 21.73
04 Total  Assets 45729.47 39914.15 36080.48 3020.11
05 Total  Deposits 36092.17 29900.05 28620.91 2250.52
06 Total Loan & Advances 33018.39 28361.46 25490.66 2169.49
07 Total Contingent Liabilities & Commitment 20536.26 19422.59 16521.41 1310.18
08 Credit Deposit Ratio 91.48% 94.85% 89.06% 96.40%
09 Percentage of Classified Loan Against  Total loan & Advances 5.92% 8.11% 5.64% 9.66%
10 Profit After Tax & Provision 657.31 964.93 253.83 8.23
11 Amount of classified Loan during the year 1953.07 2299.90 1437.39 209.47
12 Provision kept Against Classified Loans 651.85 984.02 970.77 119.51
13 Provision Surplus/Deficit 30.20 1.59 678.03 23.27
14 Cost of Fund 6.12% 6.58% 6.35% 6.12%
15 Interest Earning Assets 39806.29 35520.23 30940.57 2565.64
16 Non- Interest Earning Assets 5931.20 4393.92 5139.91 454.47
17 Return of Investment (ROI) 13.59% 13.56% 9.11% 6.83%
18 Return of Assets (ROA) 1.44% 2.42% 0.70% 0.27%
19 Income from Investment 691.44 569.53 301.93 20.28
20 Earning per Share 49.00 143.87 62.46 20.24
21 Income per Share 411.98 774.77 149.56 36.80
22 Price Per Ratio (Times) 24.26 16.13 15.23 28.30

Table 1.2: Financial Highlights

Corporate Information

Name of the company


International Finance Investment and Commerce Bank Limited (IFIC) Howladar Yunus & Co.Chartered Accountants
Legal FormIFIC Bank Limited was incorporated in Bangladesh and registered with the Registrar of Joint Stock Companies and Firms as a public Company limited by shares. Legal AdvisorsMr.Ahsanul Karim
Tax ConsultantsAdil & Associates
Company Registration Number4967,Date October 08,1976 Credit Rating AgencyCredit Rating Information and Service Ltd.
Authorized CapitalTK.1600 million Name of the ChairmanMohammad Lutfar Rahman
Paid up CapitalTK.1,341million Name of Managing DirectorMosharraf Hossain
Listing StatusListed with Dhaka Stock Exchange Ltd.(DSE) and Chittagong Stock Exchange Ltd.(CSE in 1986 and 1995 respectively. Name of CFOMohammad Abdulllah
Name of Company SecretaryA.K.M.Mozharul Hoque
Market CategoryA Category No. of Employees2,110
Tax payer Identification number (Tin)210-200-0537,LTU,Dhaka No.of Branches74
VAT Registration Number –    9021077014 No.of SME Service Center -2
Registered OfficeBSB Bhaban (17th ,18th & 19th floor)8 Rajuk Avenue,Dhaka –1000

E-mail:[email protected],
No.of Shareholders31,915
Investor Relatiobs
BSB Bhban(10th floor)
8 Rajuk Avenue,Dhaka – 1000
hotline number : 9563020

Management Hierarchy


Organ gram of Head Office, IFIC Bank Limited


Governing Body
                                              Vice Chairman



















Sl no

Name of officer


 1.Mr. Mohammad Lutfar RahmanChairman Managing Director  Shanghai Ceramics Ltd.  Diaper Limited  Latif securities Ltd  Dhaka 2.Mr. Abu Tahir Mohammad Golam MarufDirector Executive Director  Shanghai Ceramics Ltd  Dhaka 3.Mr. Murshed Murad ibrahimDirector Managing Director  BLP Warm Fashion Ltd.  Crystal Fisheries Ltd 4.Mr. Aminur RahamanDirector Managing Director  IMS health Bangladesh Limited 5.

Mr. Md. Yasin AliDirectorChairman  Representing M/S Regent Textile Mills Ltd.  ANZ propities Ltd. Southern Medical College & Hospital. 6.Mr. Didarul Alam Director proprietor  M/s.DINS (BD)  M/s.S. Rahman International 7.Mr. Chowdhury Nafeez Sarafat.Director8.Mr. Gulzar Alam ChowdhuryDirector Managing Director  Representing M/s Tamishna Dyeing Inds.Ltd. 9.Mr. Tanim Noman sattarIndependent Director10.Mr. Mohammad Ali Khan,ndcGovt. nominated Director11.Mr. Syed Monjurul IslamGovt. nominated Director12.Mr. Mahmudul Huq BhuiyanGovt. nominated Director13.Mr..Arastoo khanGovt. nominated Director14.Mr. Mosharraf HossainManaging Director

Introduction of the IFIC Bank Ltd NB Hall Road Br.

IFIC Bank Limited of North Brook Hall Road Branch is one of the profitable Branch of IFIC Bank located at 58/60 North Brook Hall Road, Dhaka-1100.Shamsur Rahman plaza (1st floor), It started its journey 17th December  2003.

NB Hall Road Branch

Credit Risk Management (CRM)

General Banking

Loans & Advance Banking

Foreign Exchange


Grade-wise manpower position of IFIC Bank Ltd. NB Holl Road Brancs.

00 Grade Number of Employees Remarks/Total
01 AVP



02 SSO



03 SO



04 OG -1



05 PO



05 OG -2














Table 1.5: Grade-wise manpower

Training Program

There are effective training program for new comers of the IFIC Bank. Training aims to improve current skills and behavior. Employee training designed to achieve a relatively permanent change in an individual that will improve the ability to perform on the job. Training program is beneficial for both organization and employees because

q  It increase job satisfaction and morale among employees

q  It increases capability to adopt new environment, technologies and products.

q  It also reduce employees turnover.

q  It increases employee motivation.


Online Branch Banking:

This bank has set up a wide area network (WAN) across the country to provide online branch banking facility to its valued clients. Under this scheme, clients of any branch shall be able to do banking transaction at other branches of the bank. Under this system a client will be able to do following type of transactions:

  • Cash withdrawal from his / her account at any branch of the bank
  • Cash deposit in his / her account at any branch of the bank irrespective of the location.
  • Cash deposit in other’s account at any branch of the bank irrespective of the location.
  • Transfer of money from his / her account with any branch of the bank. 


Portrait of Deposits of IFIC NB Hall Road Br.

Type of account No. of account Amount in Tk.
CD 225 90,5,10
SB 530 95,500
STD 45 5,575
FDR 65 80,215
PSS 76 32,618
MIS 45 54500



Table 1.6: Portrait of Deposits


Daily work plan

The bank works Five days a week from 9.00am to 5.00pm. There are formal break for launch and prayer time. Generally the daily meeting held after the work time. No transaction is held after 3.00pm with customers. The work time and the policies regarding attendance are very much rigid.



Communication within the branch is often described as formal or informal. Formal communication refers to communication that follows the official chain of command or is part of the communication required to do one’s job. For example, when a manager asks an employee to complete a task, he or she is communicating formally. Any communication that takes places within prescribed organizational work arrangements would be classified as formal.

Informal communication is organizational communication that is not defined by the organization’s structural hierarchy. When employees talk with each other in the launch room, as they pass time here and there, that’s informal communication. Informal communication system fulfills two purposes in organizations:

It permit the employees to satisfy their need for social interaction, and it can improve the organization performance by creating alternative, and frequently faster and more efficient, channels of communication.


General Banking

During my practical orientation I was placed in IFIC Bank Limited at North Brook Hall Road Branch. I have completed General Banking and some exposure in Advance in this branch. General Banking is the starting point and main function of all the banking operations it is the department which provides day-to-day service to the customers. It is associated with financial transactions to facilitate customer service. However, there are other departments like – clearing, financial control and accounts, computer to give both of them back office support and to maintain regular and immaculate records.


Functions of General Banking

This department maintains following functions.

  • Accounts opening section.
  • Cash section
  • Remittance section.
  • Clearing section.
  • Accounts section.
  • Establishment.

Accounts Opening Section

This section opens different types of account for their valued customers. Selection of customer is very important for the bank because bank’s success and failure largely depends on their customers. If customers are bad they creates fraud and forgery by their account with bank and, this destroys the goodwill of the bank. So, this section takes extreme caution in selecting its valued customer.

Types of Accounts


Accounts can be classified into two types:

Operative Account                                                  Non-Operative Accounts

                                                                                               FDR Al C

Current Deposit Account


Savings Deposit Account



Current Account (CD)


Current account is convenient for the business persons who needs frequent transaction. In case of Current Account no interest is given to the account holder. There are current accounts for individual, joint current account, proprietorship current account, partnership current account, and limited company current account. It is a running and active account, which may be operated upon any number of times during a working day. There is no restriction on the number and the amount of withdrawals from a current account.

Documentation: Proprietorship

  • Attested photocopy of Trade License
  • Two copies of passport size photographs of account holder.
  • National ID Card photocopy

Documentation: Partnership

  • Attested photocopy of Trade License
  • Two copies of passport size photographs of account holder
  • National ID Card photocopy
  • Attested photocopy of Partnership deed.

Documentation: Private Limited Company

q  Attested photocopy of Trade License

q  Two copies of passport size photographs of directors With

q  National Id card photocopy

q  Certified copies of Memorandum and Articles of Associations

q  Certificate of Incorporation and copy of TIN certificate.

q  List of directors as per return of Joint Stock Company with signature

q  Resolution for opening account with the bank.


Documentation: Public Limited Company

q  Attested photocopy of Trade License

q  Two copies of passport size photographs of directors with

q  national Id card photocopy

q  Certified copies of Memorandum and Articles of Associations

q  Certificate of Incorporation

q  Certificate of Commencement of business and copy of TIN certificate.

q  List of directors as per return of Joint Stock Company with signature

q  Resolution for opening account with the bank.

Operational Nature of Accounts

Current Deposit Accounts (CD account)

  • A current account may be opened by any individual, firm, company, club, associates, etc. Bank: may, however, refuse without assigning any reasons to open current account to any body.
  •  Minimum balance of Tk. 2000 while open.
  •  No current account will be opened with Cheques.
  •  Fund in the current deposit account shall be payable on demand.
  •  Minimum balance to be maintained of Tk. 2000.
  •  If minimum balance falls then incidental charges of Tk. 150 will be realized half is early.
  •  No interest is payable on the balance of CD.
  •  In case of closing of current account Tk. 150 is to be realized against incidental charges.

Closing of Current Account

A customer’s account with a banker may be closed for the following circumstances:

(a)    The customer may inform the banker in writing of his/her intension to close the account

(b) The banker may itself ask the customer to close the account when the banker find that the account is not been operated for a long time.

Formalities (When customer informs)

  • Application to Branch in charge for closing
  • Making the account balance nil
  • Signing the revenue stamp by the client
  • Payment of closing charge.
  • Surrender of the unused Cheque leaves by the bank
  • Closing of  the account by the bank

Formalities (When bank informs)

  • Bank communicates with the client if the account is not operated for six months and in case of non response account becomes a dormant account.
  • In case non operation for two years then the account becomes “inoperative” account.
  • If the current account paying in “Inoperative Current Account for more than one years then the account becomes an Unclaimed Deposit” account.
  • For withdrawal at any amount from that account, permission from head office or controlling office is required.

Saving Deposit Account (SB)

Saving Accounts are especially for the middle-income groups who are generating limited income and have the tendency to save to meet their future need and intend to earn an income from their savings. It aims at encouraging savings of non-trading person(s), institution’s society, clubs etc. by depositing small amount of money in the bank. 5.5% interest is paid to the accountholder. Both the elements of time and demand deposit are present in this account.

For opening a savings account these documentations are required:


q  Two copies of passport size photographs

q  National Id card photocopy

q  Introductory reference.

q  One choppy Photograph of Nominee  with

q  National Id card photocopy

Closing Formalities of Savings Account

Formalities for savings account opening and closing are same as current account.

Restriction on Withdrawals and Deposit

  • The number of withdrawals over a period of time is limited. Two withdrawals per week are permitted. But more than that no interest will be paid on rest amount for that month.
  • The total amount of one or more withdrawals on any date should not exceed Tk.20000.00


Short-Term-Deposit (STD)

Minimum balance is required in this account is Tk. 25,000 and interest is given to the depositors at the rate of 4%. It is also a time deposit account. The formalities for opening of this account are same to those required for current account. The only difference is that 21(Twenty one) days notice is to be given for withdrawal of any sum of money from Account.


Fixed Deposit Receipt (FDR)

These are the deposits, which are made with the bank for a fixed period specified in advance. It is purely a time deposit account. The bank does not maintain cash reserves against these deposits and therefore the bank offers higher rates of interest on such deposits. Interest is paid at rate determined by the length of the period for, with the deposit is made. Obviously, the longer is the period of deposit, the higher is the rate of interest. At present the rate of interest for Fixed Deposit Receipt (FDR) in the IFIC Bank Limited is presented in the Table

1.7.Revision of Rate of Interest on Deposits:


Deposit Scheme

Rate of Interest

Exiting Rates

Revised Rates

(With effect from June 1, 2009)

Current Account (CD)



Savings Deposit Account (SB)



Short –Term Deposit (STD)

Below Tk. 1 Crore-          4.00%


Tk. 1 Crore & above-        4.25%


Tk. 5.00 Crore & above-   4.75%


Initial public offering(IPO)



Bank to Bank



Fixed Deposit 


1 (One) Month



3 (Three) Months



6 (Six) Months


8.5 0%

1 (One) Year




As per decision of the Asset liability committee (ALC) of the bank, the rates of interest on deposits have been revised with effect 01,08,2009 as under:

Opening of Fixed Deposit Account

The depositor has to fill up an application form wherein he/her mentions the amount of deposit, the period for which deposit is to be made and the name(s) in which the fixed deposit receipt is to be issued. In case of a deposit in joint names, the banker also takes the instructions regarding payment of money on maturity of deposit i.e. whether payable jointly or payable to survivor etc. the banker also takes the specimen signatures of the depositor(s). A Fixed Deposit Receipt is than given to the depositor acknowledging receipt of the sum of money mentioned therein. It also contains the rate of interest and the date on which the deposit will fall due for payment. In this account no transaction are allowed and no Cheque book is issued. Customers are given Fixed Deposit Receipt only.

Payment of interest

It is usually paid on the maturity of the fixed deposit. IFIC Bank Ltd, calculate the interest at each maturity date and provision is made on that “Miscellaneous creditor expenditure payable account” is debited for the accrued interest.

Encashment of FDR


In case of the premature FDR IFIC Bank Ltd, is not bound to accept the surrender of the deposit before its maturity date. In order to deter such a tendency the interest on such a fixed deposit is made a certain percentage les than the agreed rate. Normally savings bank deposit is allowed.

Renewal of FDR


In IFIC Bank Ltd, the instrument is automatically renewed within 7 (Seven) days after the date of maturity if the customer does not come to encash the FDR. If the customers don’t want to renew automatically then they need to specify this option when they open that particular FDR.


Pension Savings Scheme (PSS)


This is a scheme to make the customer introduced to the banking system under this schemes the customers are to pay a certain of money at monthly interval up to a period of 3 to 5 years and after the period they will get the returns along with the full interest earned during the period and the principal amount. Most of the clients under this scheme are middle class and lower middle class people

  • Generally opened by small sever.
  • Minimum Amount Tk 500 and maximum Tk 50000
  • Interest rate 8.50%
  • Maturity 3 to 5 years.
 Liquidation of PSS
  • In case of premature encashment if the period is below 1 year then no interest will be provide.
  • If above 1-year interest will be given.

Main Features of 3 (Three), 5 (Five ) Years pension saving scheme (PSS)

Payment after maturity

3 Years Term 5 Years Term


Installment TK.

Amount payable After Maturity

(Intt.Rate 9.50% p.a.00%


installment TK.

Amount payable After Maturity (Intt.Rate 9.50%)









































Table 1.8 : pension saving scheme

Monthly Income Scheme (MIS)


This is another attractive scheme offered by this bank under this scheme the depositors an to deposit a fixed amount to the bank and for their fixed amount they are entitled to earn monthly payment from the bank. This is an attractive scheme for the retired person. This is also a kind of FDR, but here the interest is given monthly to the customers the deposit will be 50,000, 10,00,000, respectively.

The rate of interest is 8.4 %

  • Maturity is 03 years.
  • Liquidation of MIS
  • Tk.200 charge for premature encashment as out access duty.
  • Closing before 6 months no benefit will be providing.
  • Pre cashment between 6 months to 1-year interest are provide according to savings rate. – Pre encashment between 1 to 3 years savings interest are provide 1.00 + saving rate

Monthly Income Scheme (MIS)

Deposit Amount


MIS for senior citizens


3 Yrs









Table 1.9: Monthly Income Scheme

Kinds of Account Holders


Branch may open accounts of the following categories of depositors:

1.Individuals: Individuals are adult persons of 18 years age or more who are competent    to enter into contracts.

2.Joint accounts: More than one adult jointly or adult with minor’s may constitute joint accounts.

3. Sole Proprietorship concern: A business trading concern owned by a single adult person is sole proprietorship concern.

4. Partnership firms: A business concern owned and managed by more than one person which may be registered or not registered is a partnership firm.

5. Private limited :  A body corporate formed and registered under companies Act 1994,

with limited members.

6. Public limited : A body corporate formed & registered under companies Act 1994 with limited liability of the shareholders and with no upper ceiling of shareholding both certificate of incorporation and certificate of commencement has given by registrar.

7. Trusts: Trusts are created by trust deed in accordance with the law.

8.Liquidators: Liquidators are appointed by court of law for companies going into liquidation.

9. Executor: Executors are appointed by a deceased himself before his death by

“with” to settle the accounts of the person after his death.

10. Club/Associations/Societies: There are organizations created & registered or not

registered under societies registration act.

11.Co-operatives : There are corporate bodies registered under society’s registration Act or companies Act or the co-operative societies Act.

12. Non-Govt. Organization: NGOs are voluntary organizations created & registered and society’s registration Act or co-operative societies Act.

13. Non-Trading concern: These are organization registered under societies registration Act or companies Act or co-operative societies Act.

Cash Section

Cash department is the most vital and sensitive organ of a branch as it deals with all kinds of cash transactions. This department starts the day with cash in vault. Each day some cash i.e. opening cash balance are transferred to the cash officers from the cash vault. Net figure of this cash receipts and payments are added to the opening cash balance. The figure is called closing balance. This closing balance is then added to the vault. And this is the final cash balance figure for the bank at the end of any particular day.

 Functions of cash department

q  Cash payment

q  Cheque cancellation process

q  Cash receipt

 Cash payment

  • Cash payment is made only against cheque.
  • This is the unique functions of the backing system which is known as “payment on demand”
  • It makes payment only against its printed valid cheque.

Cheque cancellation process

Receiving cheque by the employee in the cash counter and verification of the following by the cash officer in the computer section:

  • Date of the cheque. (it is presented within 6 month from issue date)
  • Issued from this branch.
  • An amount in figure and in word does not differ.
  • Cheque is not torn or mutilated. Then gives pay cash seal and sends to the payment counter and payment office makes payment.

 Cash receipt

  • Another important function of this department is receipt of cash. Depositors deposit money in the account through this section by deposit slip.
  • It receives deposit from depositors in from of cash.
  • So it is the “mobilization unit” of the banking system.
  • It collects money only its receipts from.
  • It receives cash for issuing pay order TT, DD.

 Books maintained by this section

q  Vault register: It keeps accounts of cash balance in vault at the bank.

q  Cash receipt register: Cash receipt in whole of the day is recorded here.

q   Cash payment register: Cash payments are made in a day are entries here.

q  Rough vault register: Cash collection for final entry in vault registers done here, as any error and correction is not acceptable.

q  Cash balance book: Balance here is compared with vault register. If no deference is found, indicate no error and omission.

Local Remittance

Sending money from one place to another place for the customer is another important service of the bank. This service is an important part of transaction system. In this service system, people, especially businessman can transfer funds from one place to another place easily. There are three kinds of technique for remitting money from one place to another these are ­

  • Demand draft (DD)
  • Pay order (PO)
  • Telegraphic Transfer (TT)

 Demand Draft (DD)

DD is an order of issuing branch on another branch of the same bank to pay specified sum of money to payee on demand. It is generally issued when customer wants to remit money in any place i.e. outside or the clearing house area of issuing branch. Payee can be the purchaser himself or another mentioned in the DD. It is safe technique of transferring money from one place to another. 

 Payment process of the paying bank:

q  Test confirmation if the DD value is more then Tk. 25,000.00

q  Confirm that the DD is not forged one.

q  Confirm with sent advice.

q  Make payment

Commission and charges of DD:

Postal charge Tk. 15.00 + commission 0.10% + 15% Vat on commission.

How DD Works:


If DD comes to the Bank on which it is drawn, the Bank honors it.

An IBCA along with photocopy of DD is sent to the paying Bank (An advice to paying Banker)

DD is handed to the customer where paying Bank is mentioned and payment will be made from another Bank

Applicant fills up the relevant form with a credit voucher (income A/C) for the Bank

The applicant should have A/C with IFIC

Cancellation of DD

Step – I :            Application is writing to the manager of the account maintaining branch.

Step – 2 :         Verification of specimen signature.

Step – 3 :         Journal posting for incoming:

-Bills payable DD payable              Dr.

– IFIC General AIC                         Cr

Journal posting for outgoing:

-IFIC general A/C                             Dr.

-Party A/C                                         Cr.

Step – 4:      Send a letter to paying bank

 Pay Order (P.O)

Pay order gives the right to claim from the issuing bank A payment is an instrument from one branch to another branch of the bank to pay a specific sum of money. Unlike cheque there is no possibility of dishonoring because before issuing pay order the bank takes money in advance. There are three reasons behind use of P.O:

  • Remitting Purpose
  • Advice to Pay
  • Payment against bill submitted to the bank.


Pay Order consists of three parties:

  • Beneficiary
  • Applicant
  •  Counter Part.

Commission and charges of P.O:

Amount of P.O Commission on Remittance 15% VAT on Commission
Up to TK. 100,000 25 4
100,001 to 500,000 50 8
Above 500,000 100 25

Table 1.10: Commission and charges of P.O

Payment Process of Paying Bank: Payment is made through clearing

Pay Order:

A PO issued by the bank is crossed one it is not paid over the counter. On the contrary the amount is transferred to the payees’ account. To transfer the amount the payee must duly stamp the PO.

The payee deposits it to his Collecting Banker

Payment is given and is registered in incoming payment of P.O Book.

Collecting Bank sends the P.O. to the issuing Bank through clearing house arrangement

The Pay Order is passed and cancelled in the deposit section.

 Cancellation of P. 0

Step-1: Application writes to the manager of the account maintaining branch.

Step-2: Verification of specimen signature.

Encasement of P.O:

To encashment of that P.O. the payee of the instrument deposits the P.O. to his bank. The bank sends the pay order to the issuing bank through clearing. Then the P. O. is passed through the deposit section and the P. O. is send back to the clearing house again and later the amount of P.O. credited to payee’s account.

Flow Chart of P.O.-How It Works


Purchaser has an account

with IFIC and fill up the relevant from with a credit voucher

He purchased the P.O. in favor of a person or company


The beneficiary deposits the PO in his account with IFIC or another Bank

Collecting Banker sends an IBDA

If any A/C with                                                               IFIC Bank

(the collecting Banker)

The collecting Banker presents the PO to paying Banker through clearing house

Payee’s account is credited with collecting Banker

Payee’s account credited with collecting Banker


Telegraphic Transfer (TT)

Issuing branch requests to another branch to pay specified sum of money to a specific person on demand by telegraph or telex or telephone. Transfer of fund by TT is the rapid and Convenient but expensive method.

TT (Issue):

¨         Customer fills up the TT form and pays the amount along with commission in cash or by cheque.

¨         The respected officer issues a cost memo after receiving the TT form with payment seal, then sign it and at last give it to the customer.

¨         Next a TT confirmation slip is issued and its entry is given in the TT issue register.

¨         A test number is also put on the face of the slip. Two authorized officer signs this slip.

¨         The respective officer transfers the message to the drawee branch mentioning the amount, name of the payee, name of the issuing branch, date, test number and his her power of attorney (P.A.) number.

¨         The confirmation slip is send by post.

Commission and Charges of TT:

  • Telephone or Telex charge TK.30.
  • Commission of Principal amount.
  • 15% VAT on commission.

Entry for TT

a)         On Issuing of TT :

1.   Cash / Respective A/C (issuer) ————- Dr.

IFIC BANK General A/C ——————- Cr.

(Principal amount)

Income A/C-postage ————————– Cr.

Income A/C-Commission on TT ————-Cr.

2.   IFIC BANK General A/C ———————-Dr.

Bills Payable A/C-TT Payable —————-Cr.

Vat charge payable                 —————– Cr.

b)         On Payment of TT

Bills Payable A/C – TT Payable —————-Dr.

Party A/C ——————————————-Cr.

Test Arrangement of TT & DD

Test is the security code by decoding which any branch can be sure that the TT or DD is not forged one. Only the authorized officers know the test code. Each bank maintains secret code for this. That is the test arrangement is the combination of different secret codes

Clearing Section

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

 Types of cheque for clearing

There are four types of cheque for clearing:

1) Inward clearing cheque.

2) Outward clearing cheque.

3) Inward bills for collection.

4) Outward bills for collection.

Inward clearing cheque

It refers the instruments drawn on IFIC 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 IFIC bank is called OBC. Accounting treatment of this process:

IFIC general (Sender’s Branch)          Dr.

Depositor’s A/C                                  Cr. Inward bills for collection (lBC)

There are two types of clearing; firstly cheque collects from the other branch of IFIC banke These Cheques are settled by sending to the debiting depositors account and crediting sender’s 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 IFIC bank are called Outward Clearing Cheque. These types of cheque are directly sent to the respective branch and request them to send IBCA.

4.21 Accounts section

This is obviously an independent and unique department, which works as the composition of all the departments of the branch. This section is fully computerized. So the conventional large ledger and journal books are not kept like the some nationalized bank. It receives the vouchers from all departments and prepares the subsidiaries and maintains accounts.


Establishment section

This section deals with employees salary, many types of internal expenses such as purchases of stationary, equipment, machinery, payment of labor cost and convence. In case of leave of absence employee collects prescribed from this section.

Locker facilities

Locker facility is available in this branch. Generally people keep their valuable ornaments in the locker. Lockers are three sizes one is small and other is middle and big. If any body want to open a locker he/she has to pay rent Tk. 1800 for big size, Tk. 2500 for large and Tk. 1200 for small size annually. Any individual can open a locker.






Authorized Capital




Paid-up Capital




Reserve Fund




Equity Fund




Table 1.11: capital

Figure 1.3 Capitals

Here capital denotes the Authorized Capital, Paid-up Capital, Reserve Fund and Equity Fund (Capital and Reserve). In 2007 Authorized Capital, Paid-up Capital, Reserve Fund and Equity Fund (Capital and Reserve) were 1600, 670.72, 1105.11 and 1775.83 million respectively. In 2008 authorized capital was same. On the other hand paid up capital increased almost 100 percent whereas reserved fund decreased to17.11 percent and equity fund increased to 48.42 percent. That denotes a positive move.


Deposit and Advances

















Table 1.12: Deposit and Advances


Figure 1.4 : Deposit and Advances

Here Deposit and Load/Advance are shown simultaneously as they denotes the main source of cash inflow and out flow and both are consider as a main source of earning. IFIC bank had a Deposit of tk. 36092.17 million in 2008 Which is much higher than 29900.05 million earned in 2007 i.e; 20.71 % increase in Deposit and the total amount of Advances is 33018.39 million in 2008, which is much higher than 28361.46 million earned in 2007 i.e. 16.42 % increase in Advances.

Operating Profit and net Profit After Tax

Operating Profit and net Profit After Tax


Operating Profit

Net Profit after Tax










Table 1.13: Operating Profit and net Profit After Tax


Figure 1.5 :Operating Profit and Net Profit after Tax

IFIC bank ltd. had an operating profit & net profit after tax of Tk. 3189.60 million and 657.31 in 2008 respectively. Which is much lower than 3300 million of operating profit and 964.93 of profit after tax earned in 2007 i.e.; 3.35 % decrease in Operating Profit and 31.88 % decrease in net Profit after tax is noted. So there is reduction in Operating Profit as well as Net Profit after Tax.

Investment Portfolio



Tk. In Million









Table:1.14: Investment                                                        Figure:1.6: Investment

The investment portfolio of the bank made up of Treasury bill, prize bond, zero coupon bonds, shares of financial institution or other companies. Total investment of IFIC bank was 5229.88 in 2008 which was much higher than 2359 million in 2007 and 3545.2 million in 2006 i.e.; 121.70 % growth from 2007 to 2008. Over the year investment grew proportionately.

Total Assets

Year TK. in Million
2008 45,729.47
2007 39,914.15
2006 36,080.48


5.5 Total Assets





Table 1.15: Total Assets                                       Figure 1.7:  Total Assets

Total assets of IFIC bank were 45729.47 million in 2008 whereas total assets in 2007 were 39,914.15 and 36080.48 million in 2006. This indicates that total assets increased in 2007 to 2008 and the increasing rate was 14.57 %.

Return on Assets:

Return on Assets (ROA)

Year TK. in Million
2008 1.44%
2007 2.42%
2006 0.70%


Table 1.16: Return on Assets                              Figure 1.8: Returns on Assets

Return on Total Assets in 2008 was lower than 2007 which were 1.44% and 2.42% respectively. In 2006 it was 0.70% which indicates that IFIC bank could not utilize its total assets properly. The formula that is used to calculate ROA is given below:

ROA = Earnings available for common stockholders/ Total assets


Income from Investment

Income from Investment

Year TK. in Million
2008 691.44
2007 569.53
2006 301.93


Table 1.17: Income from Investment                          Figure 1.9: Incomes from Investment

In 2008 total Income from Investment was 691.44 million and in 2007 it was 569.53 million and in 2006 it was 301.93 million. It can be said that Income from Investment in 2008 was higher than Income from Investment in 2007. In percentage the increasing rate was 21.41 percent and the increasing amount was 121.91 million.

Earning per Share

Year TK. in Million
2008 49.00
2007 71.93
2006 62.46


Earning per Share


Earning per Share in 2008 was 49 million and in 2007 it was 71.93 and in 2006 it was 62.46 million. There was a clear indication of decreasing earning per share from 2007 to 2008. Decreasing amount of earning per share was 22.93 million and the percentage was 31.88 percent.

The formula of EPS:EPS = Earning available for common stockholders/ Number of shares of common stock outstanding.


Return on Investment(ROI)

Year TK.In Million
2008 13.59%
2007 13.56%
2006 9.11%


Return on Investment


Return on Investment of IFIC bank was almost same in 2008 and 2007 and the amount was 13.59% and 13.56% respectively.  In 2006 it was lowest and the amount was 9.11%.

Price Earning Ratio

Price Earning Ratio (Time)

Year TK. in Million
2008 24.26
2007 16.13
2006 15.23


Table 1.20 :Price Earning Ratio                               Figure 1.12: Price Earning Ratio

The Price Earning Ratio of IFIC bank in 2008 was 24.26 million which was higher than the Price earning ration of 16.13 in 2007 and 15.23 in 2006. The percentage of increase was 50.40 percent from 2007 to 2008. This indicates that investor confidence has increased during that period. It is calculated by the following way:

Price Earning Ratio: Market price per share of common stock/ Earnings per share

Things that I have learned

I worked at IFIC Bank for three month and gathered lots of experience and practical knowledge, which I couldn’t have gathered if I hadn’t worked here.

1 Account Opening: At first I worked in Accounts opening section and I have learned how to open the account which was very interesting to me, because I had to deal with different types of people.

2 Clearing: then I worked in clearing section, here I have learned how to receive Cheque and keep the record.

3 Remittance: Remittance which are mainly demand draft, Telex Transfer, and Pay order, here I have learned how to issue demand draft, pay order.

4. Timeliness: I found here everybody follow strict timeout. Every employee enter the bank at right time, and also leave the bank at due time. Nobody can leave the bank before 5.30. Every work performs in time.

5. Discipline: Every work has done under discipline process. Employees are well mannered. Account opening forms, deposit account form, are checked carefully. Every voucher is checked carefully, it moves table to table in a disciplined way.

6. Customer Relation: every employee behaves very well with customer. Environment is friendly for the customer and employees are also friendly with customer. Every employee can deliver the product as fast as they can. Thus, they can maintain good relation with customer.

My Expectation:

My expectations are fulfilled working in this bank. Now to some extent I know how to implement the theories into real life. Like customer relation, deposit collection, and mobilization, loan financing, etc. Three month internship is very short time to learn. This time is not enough to gather any kinds of experience. But my supervisor helps me a lot.

Internship relate to major field of study

I have come to experience the reality of studying BBA beside books. During my study I have to work and make several proposals which I found only books. But it was a great experience to work at my own hand.

SWOT Analysis of IFIC Bank Ltd.NBHR.Branch:

I have done my internship program at North Brook Hall Road Branch of IFIC Bank. As every organization has its strength, weakness, opportunity & threats like this if we think North Brook Hall Road Branch individually as a particular organization it also has its own strength, weakness, opportunity, threats. At the period of working in this branch I have find out the SWOT analysis of North Brook Hall Road Branch, which is as follows:


  • Quality services through modern sophisticated automated system.
  • In case of service offered by all private banks in our country, IFIC Bank Ltd, has maintained high quality.
  • Found that a good image about the Bank has been created among the customers through careful and quality services.
  • Since the govt. has imposed some new rules regarding private banking operation, IFIC Bank Ltd. easily cope up the given rules.
  • Regarding contribution towards country’s GDP they have contributed a handsome amount per year.
  • Experienced and competing workforce who have expertise knowledge about the bank
  • Some loyal customers who always bring in new customers.
  • Management consists of knowledgeable and authoritative personnel.
  • Reputation of the management
  • Interaction of the employees with the top management.
  • The corporate culture of IFIC Bank Limited is very much interactive. The environment within the organization is very helpful, positive and informal. There is no barrier between superior and subordinate for their free interaction. As the environment is very informal and friendly, it encourages employees to put their best effort and show their best performance.


q  The prime weakness I found lack of motivation of workers originating from management’s mal-practices, partiality, inter personnel clash, unsatisfied grievances etc.

q  Absence of teamwork because of subtle interpersonal clash.

q  Bad employee-management relation in some cases.

q  The bank doesn’t have any long-term strategies of whether it wants to focus on retail banking or become a corporate bank.

q  Sometimes the process of information transferring to the management is lengthy.

q  On the counter service is sometimes unsatisfactory because of not having enough employees for the counter sector.

q  There is also shortage of employees in this branch. As it is comparatively busy branch the employees always work in pressure. There are only 15 employees in the branch. Where 10 more employees are extremely needed here to meet the need and satisfied the clients.

q  There is not any parking area to park the car of the clients.


  • North Brook Hall Road Branch is comparatively busy place. It is a business area; many new sopping malls, supper shops are growing up here day by day and they need the banking facilities every day for their daily transaction. This is a great opportunity for North Brook Hall Road Branch, if it can provide good service to the customer
  • The providing online service to the  customer of North Brook Hall Road Branch,
  • Another opportunity is the establishment of new banks is very vital point. Any body or organization cannot easily establish a commercial collecting paid-up capital and govt. Moreover in our country there are no closing rules for commercial banks, As a result of which as an existing commercial bank IFIC Bank limited have a great opportunity and potential for its favorable business opportunity.
  • Opportunity to serve quality service through the usage of updated technology


  • Introduction of certain harder banking rules and regulation.
  • Other commercial banks are offering higher salary that may create problem for IFIC Bank Ltd to retain their experienced managers and executives.


  • There are Shortage of employees. They are always in pressure. Due to shortage of employees, customers can’t get quick service .
  • .IFIC Bank provides fully computerized services to its customer. Hopefully it will adjust with the development of technology for providing better services.
  • When a joint stock company comes to open an account if the company happens to be an existing one, the banker should demand copies of the balance sheet and profit & loss account, which will reflect the financial growth of the company and its soundness, But in practice companies and the bankers as well don’t even bother.
  • Few officers of the bank are competent. Even though many of them simply know the working procedure of what they are doing but don’t know the philosophy behind doing those and some are inefficient to serve the customer.
  • Project loan requires testing of feasibility of project and judging the marketability of the product. It requires infusion of knowledge of both the fields-marketing and banking. But the bank has hardly any person with this kind of ability.
  • Officers of the desk, where workload is very high, hardly get the chance to go out for development purpose and always feel that their duties for the organization would not be evaluated unless they can show a good amount of deposit collection against their name.
  • To provide cheque book it takes minimum ten days. The days should be reduced.


Form the learning and experience point of view I can say that I really enjoyed my internship period in IFIC Bank Ltd. at North Brook Hall Road Br. from the very first day. I am confident that this 3 three months internship program will definitely help me to realize my further carrier in the job market.

Performance analysis of a bank is not so sufficient to measure and express perfectly within this short time of my internship period. But it is a great opportunity for me to get used to with the operational environment of commercial banking of IFIC Bank. I have tried by soul to incorporate the necessary relevant information in my report.

Top management of IFIC should conduct a comprehensive study or survey on the branches’ performance, its management’s performance and the employees’ performance and their motivation as well. Few loyal committed customer bases, lack of modern and effective technology or facilities, not enough skilled employee in some sector, considering all of these very important factors. IFIC Bank should always try to improve their service level in every term.

The marketing department should think freshly about their marketing objectives and practices. Rapid changes can quickly make yesterday’s wining strategies out of date. As a developing private bank in Bangladesh, IFIC Bank shouldn’t allow their client to get dissatisfied with their service. They have their competitors who actively striving to take the advantages in every side.

During the course of my practical orientation I have tried to learn the practical banking to relate it with my theoretical knowledge, what I have gathered and going to acquire from various courses.


In order to get competitive advantage and to deliver quality service, top management should try to modify the services.

The synergy of dedicated manpower, technology, and market opportunity can lead the organization to achieve the goal, a bank must establish and adhere to adequate of loan provision and reserve.

IFIC Bank should train up their branch personnel about all sort of information regarding SWIFT and its service.

Due to lack of proper knowledge about the operation procedures and services provided to the customers by SWIFT, certain customers are facing problem, as they have to wait for certain time to get service. and sometimes personnel are not being able to operate SWIFT without any confusion. They are not fully independent of handling SWIFT. Official training is the solution to this problem.

IFIC Bank continuously strive and try to introduce new products and services as access card, with future improved quality services.

For customer’s convenience in Foreign Exchange Department of IFIC Bank Ltd. should provide more personnel to deliver faster services to their honorable customer.

It seems to me that day-by-day customers operation is increasing; individual employee has to handle different types of job. But that is pocking a back for an employee. As a result it might be happen any big mistake by the employee and service is also timed consuming and customer has to suffer for this situation. May be it would be the reason for employee’s de-motivation as well as the customer’s dissatisfaction.

IFIC Bank Ltd. should focus on their promotional activities.

They should also focus on the marketing aspects to let customers know about their products and offerings and more promotion should be given to attract new customer.

IFIC Bank Ltd. must develop electronic banking system to moderate the service. Technological advantage of a bank ensuring its competitive edge in the market place can only be achieved by efficient manpower. It is market share to reduce its operating cost and to generate new revenue. Electronic banking system also allows increased access to the financial system by its customers.


•    My daily – Daily Notebook, written during the orientation program.

•     IFIC BANK LTD., Working Manual for different department.

•    Annual report 2008 ,2007 IFIC BANK LTD.”

•    Special Project Report- Published by IFIC Bank



  • From the web page of IFIC Bank Ltd .On May 21, 2009 (10:45 pm to 1:00 pm). May 30, 2009 (11:45 pm to 1:00 pm) June 12, 2009 (12:00 pm to 1:3 0 pm).June 26, 2009 (8:30 pm to 10:00 pm).. July 24 2009 (11:00 pm to 1:00 pm). July 31, 2009 (12:00 pm to 1:30 pm). (11:00 pm to 1:00 pm (12:00 pm to 1:30 pm).August 07, 2009 (ll:00pm to!2:30 pm)August 08, 2009 (11:00 pm to 1:00 pm)
  • www,


Balance Sheet
As at December 31, 2008





In hand (including foreign currencies)



With Bangladesh Bank And its Agents Bank
(including foreign currencies)





Balance with other banks and financial institutions:
In Bangladesh



Outside Bangladesh





Money at call and short notice


Government securities






Outside Bangladesh





Loans and advances:
Loans, cash credits, overdrafts, etc.



Bills discounted and purchased 2,806,559,910




Fixed assets



Other assets



Non-banking assets

Total assets



Borrowing and other banks, financial institutions agents
In Bangladesh 203,530,016 1,105,237,195
Outside Bangladesh

Deposits and other accounts:
Current deposits and other accounts



Bills payable



Savings Banking deposits



Term deposits





Other liabilities



Total liabilities



   Capital/shareholder’s equity:  Paid up capital



Statutory reserve



Other reserves



Surplus in profit and Loss Account



   Total shareholders’ equity



   Total liabilities and shareholders’ equity



Profit and Loss Account

For the year ended December 31, 2008




Interest and Discount Income



Interest paid on deposits, borrowings, etc.



Net interest income



Income from investment



Commission, exchange and brokerage



Other operating income



Capital gain



Total operating income



Salaries and allowances



Rent, taxes, insurance, lighting, etc.



Legal expenses



Postage, stamp, telegram and telephone



Audit Fee



Stationary, printing, advertisement, etc.



Charges on loan loss



Managing director’s salary



Directors’ meeting fees



Other expenses



Total operating expense



Profit before provisions



Provisions for adv,other assets &off balance sheet items



Profit before tax



Current tax

Deferred tax         642,581,879

17,418,121                   504,731,725

(4,731,725)Provision for Taxation:



   Profit after tax for the year



   Retained earnings brought forward from previous year:





Appropriations  Stautory reserve263,462,140292,985,589Retained earnings561,094,024837,961,156Earnings per share (EPS)49.0071.93