Internship Report On Southeast Bank LTD - A Study On Customer Satisfaction of SEBL
Internship Report On Southeast Bank LTD - A Study On Customer Satisfaction of SEBL
Internship Report On Southeast Bank LTD - A Study On Customer Satisfaction of SEBL
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INTRODUCTION
Southeast Bank Limited is a scheduled commercial bank in the private sector established
under the Bank Companies Act 1991 and incorporated in Bangladesh as a public limited
company to carry out banking business in Bangladesh.
The Bank started commercial banking operations on May 25, 1995. During this short
span of time, the Bank has been successful in positioning itself as a progressive and
dynamic financial institution in the country. The bank had been widely acclaimed by the
business community for its forward - looking business outlook and innovative financial
solutions. Thus within this very short period of time it has been able to create an image
and earn significant reputation in the country's banking sector as a Bank with Vision.
The bank has 41 branches, with no overseas branch as on 15 August, 2008. Out of the
above 41 branches, 5 branches are designated Islamic branch complying with the rules of
Islamic Shariah. Southeast Bank Limited offers services for all commercial banking
needs of the customers, which includes deposit banking, loans and advances, export
import financing, inland and international remittance facility, etc.
The aim of this project paper is to provide a preamble to the various Deposit Products
offered by Southeast Bank Limited as well as a through analysis of this.
This report paper is arranged as follows: Part II provides a general introduction of the
term Bank and its short history. The background of Southeast Bank Limited, corporate
commitments and performance of the Bank over the years has also been provided in this
part.
Part III covers all types of Deposit Products offered by Southeast Bank Limited. Some of
the related products and services (such as ATM card, process of cheque issuing, Locker
service) have also been discussed in this part.
In Part IV, an analysis of the deposit growth of the whole Bank as well as Laldighir Par
Branch has been provided with graphical presentation.
Practical case encountered by me during my internship tenure has been provided in Part
V.
A comprehensive SWOT analysis of Laldighir Par Branch of Southeast Bank Limited, has
been presented in Part VI.
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And finally, some recommendations has been provided in Part VII to improve and
enhance the banking service of the concerned Branch.
BROAD OBJECTIVES
Internship program is done for the purpose of gathering practical experience about the
corporate world. After successful compilation of the internship program everybody has
to submit a report on the basis of his working experience. The main objectives of the
report are
To understand the problems and barriers they are facing in the way of doing
banking functions.
To get the general idea about overall operation of Southeast Bank Limited.
To identify the core competencies, which differentiate Southeast Bank from other
financial institutions.
SPECIFIC OBJECTIVES
To find out different products and marketing strategies which Southeast Bank is
using to attract and satisfy customers.
To analyze the current position of Southeast Bank Limited and its Laldighir Par
Branch in different banking sector.
To find out the expected level of the customers satisfaction and the services
should be offered.
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SCOPE
The study is about Southeast Bank Limited and it has 38 branches all over the
Bangladesh. So the overall scope of the report should be around 38 braches of Southeast
Bank. But my scope was limited because I am appointed by the authority in Laldighir
Par Branch of that particular bank. So I had the opportunity to work in that branch only.
METHODOLOGY
The report has been prepared based on data collected from both primary and secondary
sources. The primary source consists mainly of personal observation during the
attachment period, practical work experience in different desk of the bank, face-to-face
conversation with the respective clients.
Secondary information came mainly from websites, annual report of the Southeast Bank
Limited, various book articles regarding general banking, various brochures published
by Southeast Bank Limited.
Time was a major constraint in preparing the report. The duration was only
twelve weeks. It was too limited to cover all the banking services area.
As I was working for Southeast Bank Limited, I could not interview employees
from its competitors, as it would have been the case normally, and thus had to
rely solely on information available to the public.
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The Negotiable Instruments Act, 1881 defines "Banker is a person transacting the
business of accepting for the purpose of lending and investment of deposits of
money from the public repayable on demand or otherwise withdraw able by
cheque, draft order or otherwise."
In the words of R.R. Paul, a bank is an institution which deals with money and
credit. It accepts deposits from the public, makes the funds available to those
who need them, and helps in the remittance of money from one place to another.
Commercial bank is the term used for a normal bank to distinguish it from an
investment bank.
Generally, the term Commercial Bank refers to that category of banks that raises
funds by collecting deposits from businesses and consumers via checkable deposits,
savings deposits, and time (or term) deposits. It makes loans to businesses and
consumers. It also buys corporate bonds and government bonds. Its primary liabilities
are deposits and primary assets are loans and bonds.
Some important among various function of commercial bank are:
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(1) Accepting Deposit
(2) Advances of Loans
(3) Credit Creation
(4) Agency Functions
(5) General Utility Function.
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moneychangers were already called bankers. They used to receive their customers
valuables and funds for safe custody and issue receipts acknowledging the same. These
notes, in course of time, became payable to bearer on demand and hence enjoyed
considerable circulation.
In the South Asian region, early banking system was introduced by the Afghan traders
popularly known as Kabuliwallas. Muslim businessmen from Kabul, Afghanistan came
to India and started money lending business in exchange of interest sometime in 1312
A.D.
In India, as early as the Vedic period, banking, in the crudest form, existed. The books of
Manu contain references regarding deposits, pledges, policy of loans and rates of
interest.
Like every other institutions and businesses, growing internationalization and
opportunity in financial services has entirely changed the competitive landscape, as now
many banks have demonstrated a preference for the universal banking model so
prevalent in Europe. Universal banks are free to engage in all forms of financial services,
make investments in client companies, and function as much as possible as a one-stop
supplier of both retail and wholesale financial services.
This growth and opportunity also led to an unexpected outcome: entrance into the
market of other financial intermediaries: nonbanks. Large corporate players were
beginning to find their way into the financial service community, offering competition to
established banks.
The banking system in Bangladesh started functioning with 1,130 branches of 12 banks
inherited from Pakistan. Bangladesh Bank, the central bank of the country, was set up on
16 December 1971 by the Bangladesh Bank Order 1972. The government accepted the
assets and liabilities of the Deputy Governor's office of the State Bank of Pakistan in
Dhaka and declared the Bangladesh Bank as a fully effective and permanent central
bank.
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AN INTRODUCTION
BANGLADESH
TO THE
IN
Banks and financial institutions play an important role in financial intermediation and
thereby contribute to the overall growth in the economy. At present the financial system
in Bangladesh consists of the central bank, commercial bank and other non-bank
financial institutions. Commercial banks can be divided into following groups.
Nationalized Banks
Specialized Banks
Private Commercial Banks
Traditional Private Commercial Bank
Islamic Private Commercial Bank.
Foreign Banks
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Central
Central Bank
Bank
(Bangladesh
(Bangladesh Bank)
Bank)
Bank)
Bank)
Commercial
Commercial
Banks
Banks
Private
Private
Banks
Banks
Nationalized
Nationalized
Banks
Banks
Traditional
Traditional
Banks
Banks
Specialized
Specialized Banks
Banks
&
& Credit
Credit Agencies
Agencies
Bangladesh
Bangladesh Krishi
Krishi
Bank
Bank (BKB)
(BKB)
Foreign
Foreign
Banks
Banks
Rajshahi
Rajshahi Krishi
Krishi
Unnayan
Unnayan Bank
Bank
(RAKUB)
(RAKUB)
Islamic
Islamic
Banks
Banks
Karmasangsthan
Karmasangsthan
Bank
Bank
Grameen
Grameen
Bank
Bank
Ansar-VDP
Ansar-VDP
Unnayan
Unnayan Bank
Bank
Bank
Bank of
of Small
Small
Ind.
Ind. &
& Com.
Com.
Bangladesh
Bangladesh Silpa
Silpa
Bank
Bank (BSB)
(BSB)
Bangladesh
Bangladesh Silpa
Silpa
Rin
Rin Sangstha
Sangstha
(BASIC)
(BASIC)
(BSRS)
(BSRS)
Co-operative
Co-operative
Banks
Banks
Bangladesh
Bangladesh
Samabaya
Samabaya
Bank
Bank Ltd.
Ltd.
Central
Central
Co-operative
Co-operative
Bank
Bank
Primary
Primary
Co-operative
Co-operative
Society
Society
Southeast
Southeast Bank
Bank Limited
Limited
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with modern practices in their respective fields of work. The Bank also tries to fulfill its
share in community responsibilities. By such measures the Bank intends to grow and
increase shareholders' earning per share. Southeast Bank Limited pledges to maximize
customer satisfaction through services and build a trusting relationship with customers,
which has stood the test of time for the last ten years.
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.
THE VISION
To be a premier banking institution in Bangladesh and contribute significantly to the
national economy.
High quality financial services with the help of the latest technology.
Fast and accurate customer service.
Balanced growth strategy.
High standard business ethics.
Steady return on shareholders equity.
Innovative banking at a competitive price.
Attract and retain quality human resource.
Firm commitment to the society and the growth of national economy.
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COMMITMENTS TO CLIENTS
Southeast Bank is a Customer focused modern banking institution thriving fast in both
earning and ability to stand out as a leading banking institution in Bangladesh. The bank
delivers unparalleled financial services with the touch of their heart to Retail, Small and
Medium Scale Enterprises (SME), Corporate, Institutional and Governmental clients
through the outlets of branches across the Country. Their business initiatives center on
the emerging needs of the clients. The client commitments are the following:
Provide service with high degree of professionalism and use of most modern
banking technology.
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Ensure Safety and Security of customers valuables in trust with the bank.
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ENTRY LEVEL
Management Trainee
Management Trainee
Officer
Junior Officer
Assistant Officer
Computer Trainee
Computer Operator
Cashier Trainee
Cashier
ENTRY LEVEL
Probationary
Officer
Number of Branches
38 as on 31/12/2007
Number of Employees
1116 as on 31/12/2007
Global Correspondents
598 as on 31/12/2007
Listing of Shares
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Authorised Capital
3,500.00
Paid-up Capital
2,281.76
Reserve Fund
4,186.60
Deposit
55,474.05
48,164.60
Investments
8,462.86
Operating Profit
2,916.20
* Initial public offering of shares of Tk. 150.00 million was completed in 1999
Chairman of the Bank
Serving Period
Serving Period
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M/S Tilla Ghar Holdings Limited represented by Mr. 29th September, 2004 till
Abdul Hye
date
President & Managing Director of the Bank
Serving Period
Company Secretary
Serving Period
Authorized Capital:
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Paid-up Capital:
Total Capital:
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Return on Equity:
17
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Branch Expansion:
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Year
No of
Branch
1998
12
2001
13
2002
19
2003
23
2004
27
2005
31
2006
31
2007
38
1998
447
1999
480
2000
528
2001
575
2002
595
2003
701
2004
835
2005
913
2006
998
2007
1116
2001
280
2002
295
2003
350
2004
463
2005
507
2006
536
2007
598
2001
280
2002
295
2003
350
2004
463
2005
507
2006
536
2007
598
Year
No of
Foreign
correspondents
2000
12
No. of Employees:
Year
No of
Employees
1999
12
1998
238
1999
253
2000
269
Year
No of
Correspondent
Banks
1998
238
1999
253
2000
269
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GENERAL
BANKING
CREDIT
FOREIGN
EXCHANGE
Officer (In-Charge)
Junior Officer
Satyabrata Das
Executive Officer(InCharge)
Suranjit Bhushan Roy
Senior Officer
Junior Officer
Officer
Syed Yasir Hussain
Junior Officer
Subandu Battacharge
Trainee Officer
COMPUTER
SECTION
Md. Atiqur Rahman
Guard
Guard
Guard
CASUAL SUBORDINATES
Guard
CASH
DEPARTMET
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PRINCIPAL OFFICER
Custodian of security stationary, handling of the test key, authorized signature book,
second cancellation of cheque, custodian of 2 nd set key of strong room & locker. He also
participates in marketing & business development.
The banking procedures of Southeast Bank Limited (Laldighir Par Branch) are
conducted under some departments. The functions of these departments are discussed
briefly in the following:
Account Opening Section: The main task of this section is to open different accounts,
issuing cheque books, maintenance of A/C opening register, preparation of different bill
statements and clearing cheques received for collection.
Credit Department: All kinds of credit related works and credit card processing are
accomplished in this section. There are many duties under this Dept. those are:
Accounts Section: Preparation of daily statement of affairs, extract, transfer scrolling &
supplementary, voucher preparation, monthly salary preparation, SBS 1,2,3 preparation,
ATM card maintenance, condensed statement etc. related to IT department and
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maintaining the balance of Bangladesh Bank Account. In addition, this section is also
responsible for:
Preparation of business correspondence letters,
CL-CIB computer entry,
Condensed statement preparation,
Daily affairs,
Thursday position,
Credit acceptance letter preparation, MOSCF etc.
Remittance & Bills section: Issue & payment of pay order (PO), Demand Draft (DD),
Telegraphic Transfer (TT), issuance of duplicate DD and PO, issuance of IBDA & IBCA
for online banking. Different types of Bills like Inward bills for collection (IBC), Outward
bills for collection (OBC) are handled here. Clearing Inward & Outward are enlisted in
this dept.
Cash Department: Opening of cash, maintenance of receipt & payment register, cash
remittance procedure between link & feeding branch, closing of cash, evening cash etc.
Bangladesh banks instruction thereof payment of defective notes, forged notes, vault
limit, selling-buying of prize bond & record keeping.
Dispatch section: Inward & out ward mails, recording in registers, maintenance of
postage accounts, Telegram, courier, register etc. Advance charges, refund & passing of
entries at month end. Acknowledgement of duplicate, ordinary post, registered post,
hand delivery by special messenger, use of proper envelope, required postal stamp, Test
Key confidentiality for telegraphic communication etc.
Fixed Deposit Section: Opening of FDR accounts for joint, single. Interest provision,
payment on maturity, premature encashment, handling of deceases accounts, issuance of
duplicate FDR. Indemnity-custody of indemnity bond-FDR block, specimen card,
maintenance of FD registers, renewal of FDR, balancing & closing of FDR accounts.
IT & Computer Section: One experienced junior officer is responsible for the
functioning of the IT department. He is responsible for some important works such as,
Daily voucher posting,
IT statement printing,
Updating programmed and software, maintaining computers.
Without this department it is impossible to keep continuous communication with other
branches. If the customers have an account in different branches of Southeast Bank, thy
can know their available balances from the IT department. He is also involved in
marketing & development.
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Clearing Section: Outward & Inward cheques handling, keeping register, and issuance
of IBCA to other branches available in Sylhet.
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Trusts are created by trust deed in accordance with the law. Trustees are given control of
an estate, usually of the deceased for the benefit of certain persons who are called
beneficiaries.
h) Liquidators
Liquidators we appointed by court of law for companies going into liquidation.
i) Administrators
Administrators are appointed by a deceased himself before his/her death by WILL to
settle his accounts after his death. Administrators are appointed by the court of law in
the absence of the deceaseds WILL.
j) Clubs/Associations/Societies
These organizations may be created and registered under Societies Registration Act.
They may not be registered organizations. Some of them may be registered under
Companies Act.
k) Co-operatives
These are corporate bodies registered under Societies, Registration Act or Companies Act
or the Co-operative Societies Act.
l) Non-Government Organizations
Non-Government Organizations (NGOs) are voluntary organizations created &
registered under Societies, Registration Act or Co-operative Societies Act.
m) Non-trading Concerns
These are organizations registered under Societies Registration Act or Companies Act or
Co- operative Societies Act.
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d.
e.
f.
g.
h.
CURRENT ACCOUNT
This is a business account. Usually this A/C is operated by the name of a business entity.
These types of accounts are for those depositors who want to withdraw their deposit any
time in the working days. There is no restriction in maintaining deposit. The purpose of
the A/C is to meet the monetary dealings of a business. In current account no interest is
given.
Features of Current Account
A Current Account can be opened with a minimum initial deposit of Tk. 5,000.
A Current Account holder can draw cheques on their accounts for any amount
and any number of times in a day.
The Bank reserves the right to refuse or close any account without assigning any
reason thereof.
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The customer shall have to submit the following documents to the bank at the time of
opening of the Current Account of Individual/Joint, Proprietorship, Partnership,
Company Account, Societies, Clubs, and Associations etc.
Current Accounts for individual
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Partnership Account
A partnership account can be opened only when an application in writing is submitted
by one or more partner. For a partnership account the following requirement must be
considered:
1. Partnership A/C cannot be opened in the name of an individual partner.
2. A banker should get a written request from the entire partner.
3. Banker should go through the partnership deed and carefully study the objects,
capital, borrowing power etc.
4. The mandate regarding the name of the person who is authorized to operate the
A/C be obtained.
5. When a partner retires from the business, notice of the retirement should be
given to the banker.
6. In case of partner death, if the A/C shows a debit balance the banker
immediately close the A/C.
7. Copy of Partnership Deed of the Firm (Registered / at least Notarized)
8. Firm Registration Certificate (if registered)
9. List of Partners with their addresses.
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Company Account
While opening A/Cs of companys banker should obtain & examine the following
documents.
1. Certified copy of the Memorandum and Association of the Company.
2. Certificate of Incorporation.
3. Certificate of commencement of business (for public limited company).
4. Up to date List & Address of all Directors.
5. Boards Resolution to open the account & name of the persons who operate the
A/C.
6. Extract of the Resolution of the Board Meeting of the Company for opening the
account and authorization of its operation duly certified by the Chairman /
Managing Director of the company.
7. List of names and specimen of signatures of those persons authorized to operate
the account, duly certified by the Chairman/Managing Director.
8. Organogram of the company.
9. Transaction profile.
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10. KYC form.
Association Account
The following documents are necessary in opening an Association Account:
1. Certified copy of the constitution / By-Laws / Trust Deed / Memorandum and
Articles of Association.
2. Certificate of Registration of the Association / Club / Charity / Trust / Society for
inspection and return.
3. List of members of the Governing Body / Executive Committee of the Association /
Club / Charity / Trust / Society with their addresses.
4. Extract of the Resolution of the Club / Charity / Trust / Society for opening the
account and authorization of its operation duly certified by the Chairman / Secretary
of the Association / Club / Charity / Trust / Society with their addresses.
5. Transaction profile.
6. KYC form.
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SAVINGS ACCOUNT
Saving accounts are intended especially for the group who has the propensity to save.
They have been compensated a fixed interest on their reserves.
There are two types of savings accounts in the bank- (a) Individual savings account (b)
Joint savings account.
Savings Account can be opened by the name of adult individual or jointly in the
names of two or more person.
Any Clubs, Associations and similar Institutions can open this account by the
names.
An account holder will get cheques book having a minimum balance in the
account.
A depositor can withdraw from his Savings Bank Account twice in a week.
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The account holders have to inform the Bank about every change of address
immediately for regularity of records.
The Bank reserves the right to alter or introduce new rules at any time.
The Bank will accept "Standing Instructions" from the account holder.
In case of a Foreign Citizen, photocopy of passport with valid visa, QA-22, work
permit etc. is required.
Nominee form and one copy of nominee (s) photograph (signature to be attested
by the account holder).
Two copies of recent photograph of the A/c holder and Mandate duly attested by
the Account Holder Copy of Passport/Nationality Certificate /Voter ID of the
persons operating the account.
Transaction Profile.
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KYC form.
For customer: below Tk. 5.00 crore is 6.00 % and Tk. 5.00 crore or above is 6.50 %.
In case of mother account (IPO), rate of interest is fixed upon approval from
Head Office on case to case basis (generally it is 7.50 % - 8.00 %.)
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the interest rate is high and at the same time if the volume of amount is large the interest
rate is also high and vice-versa.
Payment of FDR shall be made on demand after the expiry of the maturity period
on presentation of FDR duly discharged by the depositor(s).
If FDR is in joint names and request for adding additional name(s) comes from
one of the depositors, such change cannot be made without the consent of all
other depositors.
Duration
01.
1 (one) month
8.00%
8.00%
02.
2 (two) months
8.50%
9.00%
03.
3 (three) months
12.75%
13.00%
04.
6 (six) months
12.75%
13.00%
1 (one) year
13.00%
13.00%
05.
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Table: Rate of Interest for FDR with different Maturity & Amount
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Any person of 18 years age is welcome to open the Monthly Savings Scheme
account with the bank at any time of the month.
Features of MSS
Payment on Maturity:
Monthly Installment
(Tk. 500/- or multiple up
to 50,000/-)
5 Years
500/-
21,405/-
40,750/-
1,000/-
42,810/-
81,500/-
5,000/-
2,14,050/-
4,07,500/-
10,000/-
4,28,100/-
8,15,000/-
50,000/-
21,40,500/-
40,75,000/-
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Table: Monthly installment and total income on MSS
MSS can be opened any time of the month. But if the account is opened after 10 th
of any month in that case 1 st installment shall be due from the following month
and shall be realized in the following month.
The investor can avail a loan of maximum 80% against the lien of the MSS
amount deposited.
If the account is closed before maturity, the account will be settled as per the
following terms:
Relationship
Rate of Interest
No interest
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Southeast Bank offers monthly income scheme to its depositor with an attractive
benefits. Under this scheme a fixed amount is deposited for 3 or 5 years and a fixed
amount will be added with the deposited amount after the end of each month.
Eligibility:
Any person of 18 years age is welcome to open the Monthly Income Scheme
account with the bank at any time of the month.
Features of MIS
Deposited Amount
Tk.
100,000/multiple
or
its
3 Years
5 Years
Tk. 975/-
Tk. 1000/-
The applicant must open/have a CD/SB account with the branch in which
monthly income will be credited automatically.
The account holder can avail Loan/Overdraft facility of maximum 80% against
the lien on the balance of the MIS account.
An account holder may close the account at any time by a written application by
giving reasonable notice in writing to the branch concerned.
If the account is closed before maturity, the account will be settled as per the
following terms:
Relationship
Rate of Interest
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Principal
+
preivailing
Savings rate of interest
Eligibility
A person can open more than one PSS account in his/her name.
Features of PSS
Payment on maturity:
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Monthly
Installment
(Tk. 500/- or
multiple up to
25,000/-)
6 Years
8 Years
78,000/-
10 Years
500/-
30,500/-
52,000/-
1,11,500/-
1,000/-
61,000/-
5,000/-
3,05,000/-
10,000/-
6,10,000/-
25,000/-
The
investor
can withdraw the matured amount after the maturity or his/her selected tenor or
the investor can choose the option of receiving pension for the next 5 years.
Monthly pension for different installments after maturity will be as follows:
Monthly
Monthly Pension Amount for Next 5 Years
Installment
after Maturity
(Tk. 500/- or
6-yr On
8-yr On 10-yr
4-yr On
multiple up to On
Scheme
Scheme
Scheme
Scheme
25,000/-)
500/-
635/-
1,080/-
1,620/-
2,315/-
1,000/-
1,270/-
2,160/-
3,240/-
4,630/-
5,000/-
6,350/-
10,800/-
16,200/-
23,150/-
10,000/-
12,700/-
21,600/-
32,400/-
46,300/-
25,000/-
31,750
54,000/-
81,000/-
1,15,750/-
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Eligibility
DBS account can be opened in the name of a minor. In that case the minor shall
be followed by his/her nominee.
DBS account can be opened in joint names or in the name of any institution.
Features of DBS
The Scheme is covered by Insurance and the Insurance Premium shall be borne
by the respective branches.
If any depositor intends to withdraw his deposit before maturity he will not get
any interest for the pre-mature encashment within one year.
If the account is closed /encased after one year he will get normal saving rate of
interest.
The account holder can avail credit card facility of maximum 80% against the lien
of the deposited amount to meet emergency expenses.
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Under this scheme, an investor can save for his/her childrens education. Client can open
maximum three accounts for his nominated children.
This deposit product is aimed at attracting those valued clients who want to save for the
study of their children.
Eligibility
The applicant should be of minimum of 18 years of age, being of sound mind and
a Bangladeshi national.
Features of ESS
Monthly installment:
Tk. 500/for 5 years
Tk. 1000/for 10 years
Tenure: 5 years/10years
The monthly installment must be paid by the 10 th day of every month or else it
will be considered as a defaulted installment.
In case of delay, a fine of Tk. 2 per day of defaulted installment will be charged
and the fine must be paid along with the installment.
Payment on maturity:
Monthly
Installment
500/-
Tk. 40,000/-
Tk. 408,000/-
1,000/-
Tk. 80,000/-
Tk. 216,000/-
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Relationship
Rate of Interest
No interest
Withdrawal within 6 to 12
months
7.5 %
8.5 %
9%
The installment quantum and the tenure of the scheme, once started, cannot be
changed.
The account holder can pay a maximum of Tk. 1000/- as installment and the
scheme can be for a maximum period of 10 years.
Maturity (Years)
1 Years
2 Years
54,000.00
59,000.00
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3 Years
4 Years
5 Years
6 Years
7 Years
8 Years
65,000.00
72,000.00
79,000.00
89,000.00
99,000.00
1,10,000.00
The applicant should be of minimum of 18 years of age, being of sound mind and
a Bangladeshi national.
Features of ESS:
Monthly installment:
Tk. 500/for 5 years
Tk. 1000/for 10 years
Tenure: 5 years/10years
The monthly installment must be paid by the 10 th day of every month or else it
will be considered as a defaulted installment.
In case of delay, a fine of Tk. 2 per day of defaulted installment will be charged
and the fine must be paid along with the installment.
Payment on maturity:
Monthly
Installment
500/-
Tk. 40,000/-
Tk. 408,000/-
1,000/-
43
Tk. 80,000/-
Tk. 216,000/-
Page 44 of 69
Relationship
Rate of Interest
No interest
Withdrawal within 6 to 12
7.5 %
months
Withdrawal within 1 to 3 years
8.5 %
9%
The installment quantum and the tenure of the scheme, once started, cannot be
changed.
The account holder can pay a maximum of Tk. 1000/- as installment and the
scheme can be for a maximum period of 10 years.
Any Non-Resident Bangladeshi of 18 years or above age can open this account.
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To operate WEPSS account, the client must open a Non-Resident Taka Account
with the Banks nominated branch.
Features:
Matured Amount:
Monthly
Matured Amount (Tk.)
Installment
(Tk. 1000/- or
6 Years
multiple up 4 Years
to 25,000/-)
8 Years
10 Years
1,000/-
59,700/-
1,00,700/-
1,50,000/-
2,12,700/-
5,000/-
2,98,500/-
5,.03,500/-
7,50,000/-
10,63,500/-
10,000/-
5,97,000/-
10,07,000/-
15,00,000/-
21,27,000/-
15,000/-
8,95,500/-
15,10,500/-
22,50,000/-
31,90,500/-
20,000/-
11,94,000/-
20,14,000/-
30,00,000/-
42,54,000/-
25,000/-
14,92,500/-
25,17,500/-
37,50,000/-
53,17,500/-
Investors can withdraw the amount after maturity or they can avail the Pension
facility for the next 5 years. Pension at different maturity are given below:
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Monthly
Monthly Pension Amount for Next 5 Years after Maturity
Installment
(Tk. 500/- or
On 4-yr
On 10-yr
On 6-yr
On 8-yr
multiple up
Scheme
Scheme
Scheme
Scheme
to 25,000/-)
1,000/-
1,250/-
2,110/-
3,140/-
4,460/-
5,000/-
6,250/-
10,550/-
15,700/-
22,300/-
10,000/-
12,500/-
21,100/-
31,400/-
44,600/-
15,000/-
18,750/-
31,650/-
47,100/-
66,900/-
20,000/-
25,000/-
42,200/-
62,800/-
89,200/-
25,000/-
31,250/-
52,750/-
78,500/-
1,11,500/-
If the client comes back Bangladesh before the maturity of WEPSS account, the
account will be active as long as the installment amount can be collected from the
Non-Resident Taka Account.
Rate of Interest
No interest
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The leaves of the Cheque Book under issue shall be counted to ensure that all the
leaves and the blank Requisition Slip are intact.
The name and Account number shall be written properly on the Cheque Book
cover and its Requisition Slip.
The Account number shall be entered on all the leaves of the Cheque Book with
an initial of the issuing Officer.
The name and the A/C number of the customer shall be entered in the Cheque
Book issue requisition against the particular Cheque Book series.
Cheque Book shall be delivered to the customer at the counter against their
acknowledgment on the Requisition.
Cheque Book can be delivered to the bearer only upon obtaining a letter of
authority issued by the account holder.
After issuing the Cheque Book the Requisition Slip shall be sent to the system for
recording the Cheque Series.
Disbursement of Cheques:
a) Before posting the instruments in the system, the instruments shall be scrutinized
and checked by the Officer concerned thoroughly.
b) In case of Cash Cheques, the following aspects shall be ensured:
o
Account number and title of account on the Cheque match with the account
number and title of account given in the system.
Number of Cheque tallies with the Cheque series noted in the account.
Stop payment/ other instruction regarding operation of the A/C has been
checked.
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The Cheque is drawn on the Bank and Branch, where it is presented for payment
Collecting Bank's Clearing Stamp is affixed on the face of the Cheque and bears
correct date and is presented in the 1 st or 2nd clearing as stamped.
If crossed in favor of a Bank it has been presented through that Bank or its agent.
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o
h) Before posting in the system it shall be ensured that the balances of the previous day
have been checked and initialed by an Authorized Officer.
i)
It shall be ensured that no Vouchers or Cheque has remained un-posted at the close
of business.
Cancellation of Cheques:
1. The cancellation Officer shall accept only those Specimen Signature Cards for
custody, which bear the full signature of the Authorized Officer duly admitted. All
Specimen Signature Cards shall be admitted by the Authorized Officer on verifying
the Signature of the account holder from the Account Opening Forms.
2. All Specimen Signature Cards shall be arranged in a serial order of their account
number.
3. Before verifying a signature on a Cheque, the Cancellation Officer shall invariably
refer to the scanned Specimen signature of the drawer of the Cheque.
4. In case signature differs, Cheques shall .not be passed unless the drawer's
confirmation and current signature is obtained.
5. If parties have changed the style of their signatures, fresh signatures shall be
obtained on the Specimen Signature Cards approved by the Authorized Officer along
with a letter of request before passing the Cheque and the old Signature Cards
should be treated as canceled giving date and retained with the Specimen Signature
Cards.
6. Cancellation Officer shall not pass any Cheque unless the Cheque is posted in the
account and initialed by the system Officer.
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7. The cancellation shall be done by waiving a red line across the signature of the
drawer of the Cheque. The Cancellation Officer shall sign in full in red ink near the
drawer's signature.
8. In case of payment of Cheques is in cash, "Pay Cash" stamp shall lie affixed on the
Cheque, and signed by the Cancellation Officer.
9. The Specimen Signature Cards of all closed accounts shall be marked "Account
Closed" and kept separately under lock and key.
Account closed
Payee's endorsement required
Insufficient Fund
Amount in figure and word differs
Cheque out of date / post dated
Drawer's signature differs
Payment stopped by drawer
Crossed Cheque to be presented through a Bank
Cheque alteration / mutilation requires drawer's full signature
b) Cheque returned unpaid by the Bank for any reason shall be sent to the account
holder, with a Cheque Return Memo duly filled in and signed by an Authorized
Officer.
c) If the amount of Cheque presented for payment, exceeds the credit balance/drawing
power/Overdraft limit of the account holder, a search shall be made to various
Departments to know the position of any available credits to be released for the
account.
d) The particulars of the Cheque and the reasons for return shall be noted in the
"Cheque Return Register".
e) No Cheque shall be returned
HOB/MO/GB/Deposit In charge.
without
50
prior
permission
from
the
Page 51 of 69
ATM CARD
The acronym ATM is Automated Teller Machine. It is, in fact, a debit card. If any client
has satisfactory balance in his account then he can withdraw money from this appliance
any time, any day.
The process of this system is, the customer has to fill the application form and then it is
sent the Head Office. From head office a card is issued with a very confidential password
that even the banker does not know. For this Tk.500 is debited from the customers
account per year. The customer places in the card into the machine and provide the
password then he can do his activities. It is a 24 hours service system.
CREDIT CARD
Credit card is a card, which provides one kind of loan. Whenever the customer uses the
card he has to pay interest for that amount which he with drowned.
For this card the customer has to pay a service charge every year and to pay
interest on that amount which the customer withdrawal.
Features:
Types : Gold Card & Classic Card
Dual Card: SEBL VISA dual card offers the facility to access both a clients local
and international spending limit through a single plastic. Therefore, there is no
need to carry separate local and international credit cards.
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Cash Advance: Facility to draw cash up to 50% of the credit limit against the local
VISA Card. Clients can withdraw cash from all SEBL branches and ATMs having
VISA Logo.
Supplementary Cards: Client may apply for Supplementary Cards. While each
supplementary member will have his / her own independent usage, the
expenses will be charged to the clients (Principal Cardholder's) account.
Card Cheque: The client can draw cheque up to the available balance in his/her
card account.
Cardholders can settle their Grameen phone post paid bills giving Auto Debit
instruction to Southeast Bank Card Division.
Interest:
Any amount outstanding after the Payment Due Date will attract an interest
@2.50% per month calculated on a daily basis.
In case of cash advance, the interest @ 2.5% per month will be charged until cash
advance transaction is paid in full. Cash Advance Fee @2% or Tk. 100.00
whichever is higher for local card or @ 2% or USD. 3 whichever is higher for
International Card.
ON-LINE BANKING
Southeast Bank Limited is first bank in the country using satellite based most modern
VSAT technology for providing Real Time On-line any branch Banking service to its
customers. Any customer of this bank can avail the following facilities from its branches.
Cash withdrawal and cash deposit:
Any customer of the bank can draw or deposit money from/to his/her account from any
branch of this bank. The respective account will be debited or credited instantly.
Balance Inquiry:
Any customer can check his/her up-to date account balance from any of the branches of
this Bank.
Account Statement:
It is possible to get up-to date account statement on-line from any of the branches of this
bank.
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Surrender of Locker:
When the clients surrender the locker he/she must sign the final access slip. The
inside space of the locker should be examined in presence of the client and recorded
on the history card duly authenticated. The client should surrender the key and the
client will sign clauses on the contract card. Then the card will be stamped with a
Cancelled stamp duly authenticated and placed in the closed file with all other
relevant papers.
Locker Services
Yearly Charge
Small
Tk. 750/=
Medium
Tk. 1,250/=
Large
Tk. 2,000/=
Security Deposit
Tk.2,500/=(Refundable) for all types
of lockers.
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SMS BANKING
Because of the widespread implementation of E-Commerce, Southeast Bank Limited, in
recent years, has introduced SMS Banking facility.
Terms and Conditions of SMS Banking:
1. Registration form must be completed and submitted to the branch, where the
account(s) is maintained.
2. To reactivate the stopped SMS Banking Service or to know the existing PIN (i)
Client has to answer correctly against secret questions that he/she filled up
during registration or (ii) By filling up the Registration Amendment Form.
3. Stop Payment and Cheque Leaf Reactivation for Payment services will be
available during office hour only. Account Statement Request is limited for
previous 6 (six) months only.
4. Reply SMS charges are monthly payable with 15% VAT. If account holder does
not pay due SMS charges for consecutive 3 (three) months, SMS service will be
discontinued.
The various types of services available under SMS Banking facility are as follows:
1. Pull Services:
Account Balance Inquiry
Last 3 Transactions
Cheque Leaf Status
Interest Rate for different deposit products
Foreign Currency Exchange Rate
Branch Location/Telephone No.
ATM Booth Location
SMS Registration information
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2. Request Services:
Fund Transfer
Mobile Bill Payment
Cheque Book Request
Account Statement Print Request
Account Statement Request by Courier
Account Statement Request by E-mail
3. Execution Services:
Stop Payment
Stopped Cheque Leaf Reactivation
PIN Change
4. Alert Services:
Debit Alert
Clearing Cheque Return Alert
Loan / Time / Scheme Deposit Maturity Alert
Service Name
Execution
Charge
Charge
per Other Charges
Reply SMS
Pull Services
3.00
201
Fund Transfer
50.00
3.00
202
25.00
3.00
203
3.00
204
Account
Statement
Print Request
Account
Statement
Request by Courier
Account
Statement
Request by E-mail
Execution Services
3.00
Charge
for
cheque book
5.00/ page
3.00
25.00
3.00
5.00/page
+
courier charge
-
3.00
205
206
C
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Alert Services
3.00
DEPOSIT GROWTH
The Banks deposit stood Tk. 55,474.05 million as on December, 2007 compared to Tk. 46,
056.18 million in 2006, thus, recording 20.45% growth. Competitive interest rates,
attractive deposit products, deposit mobilization efforts of the Bank and confidence
reposed by the customers in the Bank contributed to the notable growth in deposits.
DEPOSIT MIX
The Bank evolved a number of attractive Deposit Scheme to cater to the requirement of
small and medium savers. This improved not only the quantum of deposits but also
brought about qualitative changes in deposit structure. The deposit mix of the Bank as
on December 31, 2008 was as follows:
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deposits. We also know that in Sylhet, foreign remittances are always increasing. Rather
than investing in different sectors people hold money for security.
Types of Accounts
Current Account
Savings Account ( included Savings- Staff)
Short Term Deposits
Fixed Deposits Receipt
Pension Saving Scheme
Marriage Savings Schemes
Educational Savings Schemes
Monthly Savings Scheme
Double Benefit Scheme
Savers Ben. Dep. Scheme
Monthly Income Scheme
Total
Total
Accounts
2232
4323
47
818
549
4
7
177
80
1
1
8, 239
Total Amount
44488056.33
214982582.78
102079240.78
1074257564.68
11100830.33
329436.56
728200.83
5258178.48
21751775.36
665230.80
3600000.00
147,92,41,096.93
Table 7: Total numbers of accounts available in SEBL, LDP branch as on August 15, 2008
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Address:
Owner:
Mr. X
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Approved Limit of Transaction: Monthly total deposit Tk. 30,00,000/-, Monthly total
withdrawal Tk. 20,00,000/- and Highest single deposit Tk. 300,000/-, Highest single
withdrawal Tk. 250,000/Name & Address of Introducer: Mr. Y, who has a small stationary store at Z Road,
Sylhet. It is heard that, Mr. Y is planning to sell his current store and open an electronics
accessories store.
Other Information: The introducer informed that, Mr. X is the owner of a big Stone
Crushing business. The client came to the branch at the time of opening the account and
promised to submit other necessary documents later.
Description
Initial Deposit
Cash Withdrawal
Cash Deposit
Cash Deposit
Cash Deposit
Cash
Withdrawal
cheque)
Cash
Withdrawal
cheque)
TT Deposit (Jessore)
Cash Withdrawal
Cash
Withdrawal
cheque)
Cash Deposit
Cash Deposit
Cash Deposit
Cash
Withdrawal
cheque)
TT Deposit (Dhaka)
Cash Withdrawal
Cash Withdrawal
Debit
Credit
100,000/-
(cash 680,000/-
Balance
100,000/4,500/684,500/1,359,500/2,009,500/1,329,500/-
(cash 650,000/-
679,500/-
95,500/680,000/675,000/650,000/-
1,500,000/-
2,179,500/879,500/204,500/-
688,000/695,000/675,000/-
892,000/1,587,500/2,262,500/1,574,500/-
1,000,000/-
2,574,500/1,574,500/1,079,500/-
1,300,000/(cash 675,000/-
(cash 688,000/-
1,000,000/495,000/-
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January 18
January 19
January 21
January 22
January 23
January 23
January 24
January 25
Withdrawal (CLG)
Cash
Withdrawal
cheque)
Cash Deposit
Cash Deposit
Cash Deposit
Cash
Withdrawal
cheque)
Cash
Withdrawal
cheque)
Cash
Withdrawal
cheque)
600,500/(cash 475,000/-
479,000/4,000/480,000/475,000/650,000/-
(cash 680,000/-
484,000/959,000/1,609,000/929,000/-
(cash 700,000/-
229,000/-
(cash 228,5000/-
500/-
The client also applied to the branch to open a LC for importing 100 PC & some
electronic accessories.
Except the initial deposit, all other deposits and withdrawals are executed by
persons other than MR. X
Some times the Cash officer had to pay after banking hour.
The branch asked me to address the following questions:
1. Analyze Mr. Xs profile and identify whether there is any loop hole.
2. Analyze the stated transactions and identify if there is anything suspicious.
3. State your opinion regarding this account and what should be done?
Suspicious Facts
1. Mr. X promised to submit other necessary documents later. This can not happen.
When the client will be able to submit all compulsory documents, only then an
account can be opened.
2. Copy of an expired Trade License is not satisfactory for opening a Current
Account, every documents need to be up to date.
3. The introducer, Mr. Y, who is a small businessman, is going to open an
electronics accessories store. The question is, from where the additional huge
investment will come. Mr. X has applied for opening LC for importing PC &
electronic accessories. May be there is a connection between these two issues.
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4. According to the agreement, the Approved Limit of Deposit of Mr. X is Tk.
30,00,000/- which has been exceeded for the month of January, 2008 and it is
more than double than the Approved Limit.
5. The Approved Limit of Withdrawal is Tk. 20,00,000/- which was also exceeded
for the month of January, 2008.
6. Similarly, the Highest Single Monthly Deposit and Withdrawal Limit have not
been observed.
7. Cash payment (by the cash officer) after banking hour is illegal.
Action that needs to be taken
1. Notification to Mr. X should be sent regarding the above mentioned issues and
proper answer should be found out.
2. If Mr. X fails to respond satisfactorily, initiative should be taken to close the
account.
STRENGTHS
It is a high profit generating branch of SEBL in Sylhet region.
The branch and its employees have banking experience of over 13 years.
It is in a very appropriate place to attract large investors and businessmen.
It has an excellent reputation.
All modern banking facilities are available at LDP branch of SEBL.
Employees behaviors towards clients are very appealing.
All the employees are contented with the current level of remuneration.
Customer retention level is exceptionally high for this branch.
Working method of this branch is improving day by day.
Employees have a good personal relationship with customers.
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WEAKNESS
Number of employees is not adequate.
Some employees are not combatant enough to work long hours.
Some employees are only fulfilling the requirement of the job, and not interested in
the highest utilization of their capabilities.
Computer literacy of the employees is very much low.
Binding in rules and regulation.
Not much careful about safeguarding the documents.
Lack of communication between different levels of management.
To get some services, the clients need to deal with more than one employee.
Support services are not satisfactory, for example: Decoration of the branch.
There is no ATM booth at adjacent places (only one booth covering the whole Sylhet
city) and there is no 24 hours banking facilities.
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OPPORTUNITIES
Increase in the number of private commercial bank itself suggests a potential huge
market for banks in Sylhet.
As the number of foreign goers is increasing in Sylhet, SEBL, LDP Branch can collect
home bound remittance by its quick service.
As Sylhet is a potential Metropolitan City, there is a huge opportunity of industrial
advance.
THREATS
Numbers of private bank are increasing.
Private Banks are giving efficient modern services and continuously innovating new
product.
Current law and order situation is not positive for the investment part.
Pessimistic representation to the government and Bangladesh Bank.
Some Banks offering more attractive rate on deposits than Southeast Bank in some
cases.
Some foreign Banks are introducing many new, exceptional and prestigious products
and services to customers.
Many foreign banks are penetrating markets by various aggressive advertising and
promotional activities.
Number of potential competitors, both foreign and domestic, is increasing day by
day.
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RECOMMENDATIONS
SEBL, LDP Branch should increase management efficiency.
It should increase Consumer Banking activity as early as possible.
It should pursue aggressive promotional campaign to build a strong image & to
attract new clients.
The level of deposit balance of SEBL with other banks should be increased as it is
desirable that banks keep their cash and balance with other bank to such extent so
that it can minimize the chance of liquidity crunch.
It should develop more strategic planning as to compete with its rival banks.
It may introduce One-Stop service for its client.
It should recruit more employees.
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More co-ordination with local merchants is necessary to increase the distribution and
usage of ATM cards.
It needs to slightly modify their savings scheme to attain superior customer
satisfaction. In this case, they should consider maximizing customer profitability
alongside the banks.
As there is significant scope of improvement for employee knowledge of products,
the bank could device training session every few months. This would also allow
them to improve the employee to client relationship, in which they seem to be
vulnerable at the present state.
It also needs to improve the service quality. In this case, they can start with service
delivery which is a problem for them at the moment. To resolve this problem, they
can divide the service delivery process into several parts and identify the
bottlenecks. This will allow them to focus on the problem areas specifically and
provide solution that will eventually improve service quality.
Most of the customers find the Monthly Savings Scheme as by far the most attractive
comparing to the others. So, to make the other schemes as attractive as the Monthly
savings scheme it can add some of the feature of that scheme to the other schemes.
One very viable option that can be added would be the easy installment opportunity.
Expertise should be involved in the process of forecasting future prospect of the
banks.
Opportunities of financing in the new sectors like Agriculture, Real Estate, IT etc.
should be explored out.
Necessary training should be provided to upgrade the efficiency of the officers in
measuring risk and in selecting the profitable projects.
It should be more cautious on operating expenses and establishment expenses.
Bank executives should try to mobilize more deposit schemes through better
marketing and incentive measures.
The decision making process should be faster.
Internal tidiness and decorations should be improved.
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CONCLUSION
Since the banking service especially the private Banks are doing an outstanding
business, so it is clear that the modern people are more concerned about securing their
valuable assets and get high-quality and timely services. For this reason lots of new
commercial banks has been established in last few years and these banks have made this
banking sector very competitive. So, now banks have to organize their operation and do
their operations according to the need of the market. Banking sectors no more depends
on a traditional method of banking. In this competitive world this sector has trenched its
wings wide enough to cover any kind of financial services anywhere in this world. The
major task for banks, to survive in this competitive environment is by managing its
assets and liabilities in an efficient way.
The Southeast Banks philosophy - "A Bank with Vision" has been precisely an essence of
the legend of success in the Asian countries. The bank has proved to be successful by
offering quality and timely services to its customers. The employees of Southeast Bank
are very efficient, everyone knows their work very well and can perform efficiently to
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produce the best output. The bank has plans to open more branches to expand their
network.
They are also playing a significant role in the import and export of Bangladesh.
Especially Southeast Bank has more import business than its rivals.
This report concentrated on the Deposit Banking Products of the bank and identified
some valuable information that could make banking procedure more attractive and also
enhance the banks reputation among the customers.
Southeast Bank is the most promising private commercial bank in Bangladesh. Every
day Southeast Bank endeavor to increase their product and services although they
provide a wide range of product of services to their customers. Southeast Bank is
helping the economy of Bangladesh by remitting of funds both local and foreign.
With the current performance of the Bank and with little improvement here and there
will certainly make Southeast Bank the best Private Bank in Bangladesh in the near
future.
REFERENCE
1.
2.
3.
4.
5.
Dr. R.R. Paul, Money Banking and International Trade (3rd Edition)
6.
7.
Shekhar & Shekhar, Banking Theory and Practice. (18th Revised Edition)
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8.
9.
10.
11.
12.
13.
www.southeastbank-bangladesh.com
14.
http://www.thedailystar.net/
15.
http://www.thefinancialexpress-bd.info/
69