Chapter Two

ORGANIGATIONAL PROFILE HISTORY OF JANATA BANK

2.1  HISTORY OF JANATA BANK LTD:

Janata Bank Limited (JBL) is the second largest commercial bank in terms of net worth with 872 branches and fully owned by Government of Bangladesh. The mission of the bank is to actively participate in the socio-economic development of the nation by operating a commercially sound banking organization.

Immediately after the independence of Bangladesh in 1971, the Erstwhile United Bank Limited and Union Bank Limited were nationalized and renamed as Janata Bank. Janata Bank is a state owned commercial bank which was incorporated as a Public Limited Company on 21 May 2007 as per Companies Act 1994 and took over the business of the then Janata Bank with all of its assets, liabilities, right, power, privilege and obligation on a going concern basis through a vendor agreement signed between the People’s Republic of Bangladesh and Janata Bank Limited on 15 November 2007 with a retrospective effect from 1 July 2007. All of its operational activities are governed by the Bank Companies Act 1991.

The Bank provides all kinds of commercial banking services to its customers including accepting deposits, extending loan & advances, discounting & purchasing bills, remittance, money transfer, foreign exchange transaction, guarantee, commitments etc. The principal activities of its subsidiary are to carry on the remittance of hard-earned foreign currency to Bangladesh. Janata Bank Ltd. has a plan to switch over to a multi-disciplinary financial institution by conducting Merchant Banking business and Islamic Banking operation. The Bank is not depending only on interest earnings; rather it strives hard to go for fee-based income from non‑fund activities of the bank. This type of business include capital market operations like underwriting, portfolio management, mutual fund management, investors' account as well as commission based business like Letter Of Guarantee, Inland remittance, Foreign remittance etc. These businesses usually do not involve Bank's fund, but on the contrary, offer immense opportunity and scope to expand bank services to the members of public at large.

2.2  OVERVIEW OF THE JANATABANK :

Janata Bank ltd is a state owned commercial Bank, which operates its activities through 872 branches. At present   more than 13(Thirteen) thousand employs work in this bank. It creates large number of job opportunities for the educated unemployed person, which helps to eradicate many unexpected situation and contribute to develop our countries economic position. Janata Bank also performs their activities in abroad. It operates 4 branches at United Arab Emirates and It is also linked with 1202 foreign correspondents all over the world. Janata bank Board of Directors is consisting of 13 members. Chairman is considering as the head of this department and that bank is headed by the Chief Executive Officer & Managing Director, who is a reputed banker.

Janata Bank Limited, one of the state owned commercial banks in Bangladesh, has an-

1. Authorized capital of Tk. 20000 million (approx. US$ 289.85 million),

2. Paid up capital             : Tk. 5000.00 million.

3. Reserve                        : Tk.8202.00 million.

 4. Retained surplus         : Tk. 2737.00 million.

5. Total asset                   : Tk. 282423.00 million as on 30^th November 2009.

2.3  MISSION OF JBL:

The mission of the bank is to actively participate in the:

Ø      Socio- economic development of the nation by operating a commercially sound banking organization.

Ø       Providing credit to viable borrowers.

Ø      Efficiently delivered and competitively priced.

Ø      Simultaneously protecting depositor’s funds and providing a satisfactory return on equity to the owners.

VISSION OF JBL:

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

 MOTTO OF JBL:

The bank will be a confluence of the following three interests: Of the bank: Profit maximization and sustained growth. Of the customer: Maximum benefit and satisfaction. Of the society: Maximization of welfare.

2.4  STRATEGIC OBJECTIVE OF JBL:

v     To achieve positive Economic Value Added (EVA) each year,

v     To be market leader in product innovation,

v      To be one of the top three Financial Institution in Bangladesh in terms of cost efficiency.

2.5 CORE VALUE:

For the customers

Providing with caring services by being  innovative in the development of new banking products and services.

For the employees

Respecting  worth and dignity of individual employees devoting their energies for the progress of the Bank.

For the community

Strengthening  the corporate values and taking environment and social risks and reward into account.

2.6    HIERARCHY OF POSITION:

The JBL has its Divisional Office, Local Office, Regional office and 83 branches in Dhaka, and other regional office and other branches are held in another district in country. While the full range of services is available at the headquarters, other branches offer specific services appropriate for the location. The organizational structure of the Janata Bank operation is depicted in the following figure:

2.7   PRODUCTS AND SERVICES OF JBL:

Janata Bank Limited offers all the major banking facilities and services to its customers. The Bank with it's network spreading throughout the country has a unique feature it provides deposit facilities to its client and also give loan and advance services. Bank give interest to its client deposit and collect interest from loan and advance.

GENERAL BANKING OF JBL:

All the general services is very important for any bank. Besides general banking operation, Janata Bank Limited offers special services to a large number of clients/agencies throughout the country. General Banking consists of the following products:

Deposit Products of JBL:

JBL has the scope to explore the market niche through various types of JBL instruments. JBL offers wide range of products and services for its customer. All the deposit products of JBL under given below:-

Ø      Janata Bank deposit scheme (JBDS):

Janata Bank deposit scheme is the most happing deposit of Janata bank. This deposit is earning huge profit bank as well as customers. The rate of interest of deposit is 8.5% and from this customers are getting huge profit. Janata Bank deposit can be started from TK. 500/= Janata Bank deposit can be open for 4years, 5years, 6years, 8years and 10years. There is huge number of Janata Bank deposit customer in Janata bank limited.

Ø      Current deposit (CD) :

Current deposit account is a attractive product of Janata bank. The current deposit can be started from TK. 1,000/=. The rate of interest of current deposit is 0%. There is no restriction on the amount or may be operated upon any number of times during banking hour. Current deposit usually opens for business purpose.

Ø      Short term deposit (STD):

Short term deposit is short period schemes. Short term deposit can be opened for 1 year. Huge of customers are involved in this deposit. Short term deposit can be started from TK. 500/=. The rate of interest of Current deposit is 3.50%. If the installment of deposit is not paid within 2 months then the deposit will be closed.

Ø      Fixed deposit rate (FDR): Fixed deposit account shall be opened a fixed amount for a fixed period, which is specific at the time of making deposit, varying from 3 months to 3 years & payable at a fixed date of maturity.

Ø      Savings Deposit from Foreign (SDF): Savings deposit from foreign is very necessary deposit for bank. From this deposit banks can be earned a lots of money. A lots of money comes of this deposit from foreign. The rate of interest of foreign deposit is 6.00%.

Ø      Savings pension scheme (SPS): Savings pension deposit is very attractive deposit for retirement persons. When a job holder retires from his job he can be open this deposit. This deposit can be started from any amount. The rate of interest of Savings pension scheme is 12% for 10years or 10% for 5years. This deposit is very helpful for a retire person.

Ø      Medical deposit scheme (MDS): Customers have shown a great deal of interest in Medical deposit scheme. Most of the customer do this deposit cover their future medical expenses. Medical deposit can be started from TK. 5,000/=. The rate of interest of medical deposit is 8%. Huge of customers are benefited from this deposit.

Ø      Education deposit scheme (EDS): Education deposit scheme is very discusses deposit. The purpose of this deposit is to cover the future education expenses of the customer. Education deposit should be started from TK. 2,000/=. The rate of interest of medical deposit is 8.7%.

The requirements of Janata bank for all deposits are same. By the money of deposit the bank making a lots of profit by giving loans in different sectors, by this Janata bank has a good income and expansion. So, that can be said the deposits of JBL have a key role to prosper its bank.

2.9  Remittance service:

2.10  Personalized service:

Janata Bank Limited with its wide ranging branch network and skilled personnel provides prompt and personalized services like issuing:
    a. Demand    Draft
    b. Telegraphic Transfer
    c. Mail Transfer
    d. Pay Order
    e. Security Deposit Receipt etc.