Internship Report on General Banking of IFIC Bank


The principal reason of banks chartered by the government and the central bank is to make loans to their customers. Banks are expected to support their communities with an adequate supply of credit for all legitimate business and consumer financial needs and to price that credit reasonably in line with competitively determined interest rates. Indeed, making loans is the principal economic function of banks to fund consumption and investment spending by businesses, individuals, and units of government. How well a bank performs its function has a great deal to do with the economic health of fits region, because banking performance support the growth of new businesses and jobs within the banks trade territory and promote economic vitality. Moreover, bank loans often seem to convey positive information to the marketplace about a borrower’s credit quality, enabling a borrower to obtain more and perhaps somewhat cheaper funds from other sources.

The internship report is a partial requirement for the Bachelor of Business Administration. As a part of internship program, I was placed at Narayanganj Branch of IFIC Bank Limited. During the three month internship I have learned a lot about commercial banking operation of the organization.

This report not only explores IFIC Bank’s activities as one of the leading non-government companies, but also highlights the role of IFIC Bank in the financial sector of Bangladesh.

This report contains information about all commercial activities that the bank is dealings with. I have discussed with banking activities general Banking.

General banking operation includes all the general activities performed by the bank. The part one covers the following tropic in a systematic manner. Then I have discussed about the types of account holder and different type of account such as-Saving Account, Current Account, and Fixed Deposit Rate (FDR), Pension Saving Scheme (PSS) etc.

The activities performed in cash department and the basic matter to be look after. Remittance collection and bill payment procedure section covers the pay order, TT, and DD, clearing of cheque, IDBC, IDBR. I have discussed about the account section where the maintenance of transfer book, cash vouchers, and different types of register book.

Chapter 1



Bank is a commercial or state institution that provides financial services, including issuing money in various forms, receiving deposits of money, lending money and processing transactions. A commercial bank accepts deposits from customers and in turn makes loans based on those deposits. Some banks (called Banks of issue) issue banknotes as legal tender. Many banks offer ancillary financial services to make additional profit; for example, most banks also rent safe deposit boxes in their branches.

Currently in most jurisdictions commercial banks are regulated and require permission to operate. Operational authority is granted by bank regulatory authorities who provide rights to conduct the most fundamental banking services such as accepting deposits and making loans. A commercial bank is usually defined as an institution that both accepts deposits and makes loans; there are also financial institutions that provide selected banking services without meeting the legal definition of a bank. Banks have influenced economies and politics for centuries. The primary purpose of a bank was to provide loans to trading companies. Banks provide funds to allow businesses to purchase inventory, and collected those funds back with interest when the goods were sold. For centuries, the banking industry only dealt with businesses, not consumers. Commercial lending today is a very intense activity, with banks carefully analyzing the financial condition of its business clients to determine the level of risk in each loan transaction. Banking services have expanded to include services directed at individuals and risks in these much smaller transactions are pooled.

A bank generates a profit from the differential between what level of interest it pays for deposits and other sources of funds, and what level of interest it charges in its lending activities. This difference is referred to as the spread between the cost of funds and the loan interest rate.

Historically, profitability from lending activities has been cyclic and dependent on the needs and strengths of loan customers. In recent history, investors have demanded a more stable revenue stream and banks have therefore placed more emphasis on transaction fees, primarily loan fees but also including service charges on array of deposit activities and ancillary services (international banking, foreign exchange, insurance, investments, wire transfers, etc.). However, lending activities still provide the bulk of a commercial bank’s income.

Any institution offering deposit (a sum of money paid by a buyer as part of the sale price of something in order to reserve it) subject to withdrawal on demand and making portfolios (diversify the fund to reduce the risk) of loan is known as bank. The bank is the life blood of modern economy. Modern banks play an important part in promoting economic developing of a country. Banks provide necessary funds for executing various programs underway in the process of economic development.

A Commercial institution licensed as a taker of deposits. Banks are concerned mainly with making and receiving payments on behalf of their customers, accepting deposits, and making short-term loans to private individuals, companies, and other organizations. In the UK, the banking system comprises the Bank of England (the central bank), the commercial banks, merchant banks, branches of foreign and Commonwealth banks, the National Savings Banks, and the National Girobank. The first (1990) building society to become a bank in the UK was the Abbey National, after its public flotation; many other building societies have now followed this precedent. In other countries banks are also usually supervised by a government-controlled central bank.

The Internship

We the students of Bachelor of Business Administration (BBA) study the subject’s related to business. The school of business at home and abroad to familiarize each student as they move comfortably in the business environment but only the theoretical study in the class room is not enough rather a practical experience and the only means of practical experience is internship program.

In the business environment at home and abroad there is lots of financial institution. Business firms and industries that provide this facility towards us. If we could not get this facility of internship then a wide gaps will take place between our study and experience, I think this is a valuable for us.

We the students of business do this usually for three months. In our country there are many banks particularly the esteemed private sector banks, and elite business firms provide this. In this respect I have done my internship at IFIC Bank Ltd. the one of the most renowned private bank in Bangladesh. I am thankful to for this.

Origin of the Report

The internship program is required for the student of BBA. It is a program with duration of three months. Students who have completed all the required courses are eligible for this program. In the internship program I was attached to the IFIC Bank Limited, Narayanganj Branch for three months. During this period I have learned how the organization works.

Objectives of the study

The primary objective of this report is to use the theoretical concepts in analyzing real life of Practical Orientation in Banking activities, which is a partial requirement of the BBA program. But the objective behind this study is something broader. The broad objectives of this report are summarized in the following, manner:

To meet the terms with the entire branch banking procedures

To formulate a viaduct between the theories and practical procedures of banking day to day operations

To be aware of the terms that has been taught in the SUB

To scrutinize the performance of the branch as well as IFIC Bank Ltd. as a whole

To gain practical experiences and view the application of theoretical knowledge in the real life

Scope of the Report

This report helps me to understand the clear real-time experience about the total management of IFIC Bank Ltd. It helps me to understand, how the bank manage its total process? It also helps me to understand how they deal with the customer.


This report has been prepared on the basis of experience gathered during the period of internship from (May 06, 2010 to August 06, 2010). For preparing this report, I have undergone group discussion, collected data and sent some questionnaires to the selected Officers and interviewed with some of them. I also studied different circulars and files of the bank.

I hope these criteria will be enough to find out different picture of financial performance of the selected bank (IFIC Bank).

Sources of Data

The nature of the report is analytical in nature. Collecting primary and secondary data regarding practical orientation in banking activities. I have found the strengths and weakness and based on those I have made some recommendations. I have collected primary and secondary data for my research paper. So this report is based on both primary and secondary data.

 Primary data is collected from:

Open ended and close ended questions

Personal experience gained by visiting, different desks

Personal investigation with bankers

Face to face communication with employees of the IFIC Bank Ltd.

I have collected secondary data for my research paper from:

Annual reports of IFIC

Data collected from internal report

Previous performance matters booklet

Bank records

Journals of the Bank

Different books, training papers, manuals etc. related to the topic

Official Website of the Bank

Structure of This Report

In the very beginning of this report a brief description of IFIC Bank has been furnished. Then in the subsequent chapters, elaboration of the two departments of the branch, say general banking, and Loans & Advance has been presented. At last few pages of the main report, some problems in banking which are observed while doing work in the branch are detected along with some recommendations to overcome these problems. At the end of this report appendices and bibliography are added.

Limitations of the Study

I had to face some limitations at the time of preparing this report. The present study was not out of limitations. But as an intern it was a great opportunity for me to know the banking activities of Bangladesh especially IFIC Bank. Some constraints are as follows:

One of the major limitations is the shortage of internship period. Since three month is not enough to know everything of a Bank, so this report does not contain all the area of IFIC Bank Ltd.

Because of the limitations of various sources of information the report doesn’t contain many important information and data. All scheduled commercial bank regulated by the instruction do central bank. Most of the instructions are confidential to the commercial bank. So, I was incapable to provide valuable information.

The main constraints of the study are inadequate access to information, which has hampered the scope of analysis required for the study.

Due to time limitation; many of the aspects could not be discussed in the present.

Chapter 2



IFIC Bank Ltd. is one of those banks that plays important role in the economy of Bangladesh. There are Eighty three branches of IFIC Bank in our country. The activities of the branches are more or less same but there are some differences as per the size of the branches. As I was placed to Narayanganj Branch of IFIC Bank as an intern, my focus of the report will be basically on the functions of Narayanganj branch only. The format of the report is being followed as per the guideline given by the Stamford University authority.

The Bank in a Sketch

International Finance Investment and Commerce Bank Limited (IFIC Bank) is a banking company incorporated in the People’s Republic of Bangladesh with limited liability. It was set up at the instance of the Government in 1976 as a joint venture between the Government of 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 49 per cent shares and the rest 51 per cent were held by the sponsors and general public. In 1983 when the Government allowed banks in the private sector, IFIC was converted into a full-fledged commercial bank.

Bank’s Mission

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

We are committed to the welfare and economic prosperity of the people and the community, for we drive from them our inspiration and drive for onward progress to prosperity.

We want to be the leader among banks in Bangladesh and make our indelible mark as an active partner in regional banking operating beyond the national boundary.

In an intensely competitive and complex financial and business environment, we particularly focus on growth and profitability of all concerned.

Ownership Structure

Previously IFIC Bank Ltd was Government owned bank. Now the government of the Peoples Republic of Bangladesh holds 34.34 % of shares of the bank. Leading industrialists of the country own 34% of the shares and the rest of the 31.66 % is held by the general public. The founder of IFIC Bank Ltd was Jahurul Islam of Islam Group of Industries. He was the first Chairman and A.S. F. Rahman was first Vice Chairman. Board of Directors of the Bank is a unique combination of both private and Government sector experience. Currently it consists of 13 Director. Of them eight represent the sponsors and general public and four officials in the rank and status of Additional Secretary/Joint Secretary represent the Government.

         Current Board of Directors is:

   Mr. Mohammad Lutfar Rahman                                  Chairman

Mr. Abu Tahir Mohammad Golam Maruf                     Director

Mr. Murshed Murad Ibrahim                                           Director

Mr. Aminur Rahman                                                          Director

Mr. Md.Yasin Ali                                                                Director

Mr. Syed Anisul Huq                                                          Director

Mr. Mohammad Nayem Sayed                                         Director

Mr. S.M Faruqi Hasan                                                        Director

Mr.Tanim Noman Sattar                                       Independent Director

Mr. Mohammad Ali Khan                                     Director

Mr. Syed Monjurul Islam                                                  Director

Mr.Mahmudul Huq Khan                                                 Director

Mr. Arastoo Khan                                                                Director

Mr. Mosharraf Hossain                                                        Managing Director

Composition of the Board

Unlike other banks in the private sector, Board of Directors of the bank is a unique combination of both private and Govt. sector experience. Currently it consists of 23 Directors. Of them five represent the sponsors and general public and four senior officials in the rank and status of joint Secretary/ Additional Secretary represent the Govt. Managing Director is the ex-officio Director of the Board.

Objectives of the Bank

The objectives of the bank are to promote joint participation of Government and private sponsors to establish joint venture banks, financial companies, branches and affiliates abroad to satisfy their customers.

It conveys its objective via their motto: “You’re Satisfaction First.”

      To establish, maintain, carry on, transact, undertake and conduct all types of banking, financial, investment and trust-business in Bangladesh and abroad.

      To form, establish and organize any bank, company, institution or organization, singly and/or in joint-collaboration for partnership with any individual, company, financial institution, bank, organization, or any Government and/or Government agency for- the purpose of carrying on banking, financial, investment and trust business and/or any other business as provided hereafter.

      To carry on any business relating to Wage Earner’s Scheme as may be allowed by Bangladesh Bank from time to time including maintaining of Foreign Currency Accounts and any other matter related thereto.

      To contract or negotiate all kinds of loan, and or assistance, private or public, from any source, local or foreign, and to take all such steps as may be required to complete such deals.

      To form, promote, organize, assist, participate or aid in forming, promoting or organizing any company, bank, syndicate, consortium, and institute or any holding or subsidiary company in Bangladesh or abroad for the purpose of undertaking any banking, financial, investment or trust business.

      To take part in the formation, management, supervision or control of the business or operations of any company or undertaking and for that purpose to render technical, managerial and administrative services and act as administrator, manager and secretary.

      To purchase, or otherwise acquire, undertake, the whole or any part of or any interest in the business, goodwill, property, contract, agreement, right, private assets and liabilities of any other company, bank, corporation, partnership, body person or persons carrying on, or having ceased to carry on, any business which the company is authorized to carry on, upon such terms and may be deemed expedient.

      To encourage, sponsor and facilitate participation of private capital in financial, industrial or commercial investments, shares and securities and in particular by providing finance in the form of long, medium or short term loans or share participation by way of subscription to the promoter shares or underwriting support or bridge finance loans and/or by any manner.


IFIC Bank Limited mainly follows top down approach to take necessary decisions for the company. Basically they follow the centralize strategy where the Head Office of the Bank control and monitor all the activities of its branches. In case of marketing strategy they basically depend on ‘word of mouth’ as they are already well reputed for its long-term service in the banking industry.

Capital and Reserves

IFIC bank has been consistently maintaining the ‘Capital Adequacy Ratio’, as prescribed by Bangladesh Bank. This has been made possible by a policy of building up both capital and reserves. It started with an Authorized and Paid up capital of Tk.100 crore and Tk.63.20 crore respectively in 1983. Authorized and paid up capital increased to Tk.500 crore and Tk.134.66 crore respectively in 31.12.2010.

Strength & Performance

 With the active support and guidance from the Government, Central Bank, clients and patrons, the Bank has been maintaining sound financial strength and showing a steady and impressive business performance. IFIC Bank is one of the few mentionable banks which maintains Capital Adequacy ratio and has more than required provision as per Bangladesh Bank criteria.

Starting with a modest deposit of only Tk.863.40 million in 1983, the Bank had closed its business with a deposit of Tk.35000.08 million as of 31st December, 2008. Total credit stood at Tk.30000.66 million as on 31.12.2008 against Tk.21, 694.90 million last year. Bank has posted an operating profit (un-audited) of Tk.366940986 during the year ended 31st December, 2008.

Credit Policy & Portfolio

Credit policy of the Bank works within the framework of three main objectives, namely, maintenance and improvement of quality of assets, recovery on time and building-up of an efficient customer oriented credit delivery system.

The portfolio includes working capital financing, project financing, import-export financing and domestic trade financing etc. The Bank continued to extend working capital facilities to customers to ensure smooth and uninterrupted operation of their business. At the same time, it expanded project financing portfolio to meet the growing demands of the economy for long term financing in a depressed capital market.

Project Loans are extended for setting up of new projects and BMRE of the existing Projects as well. Due emphasis was given to financing export oriented and export linked industries without loosing sight of the need for long term loans by other domestic market based industries and ventures. The Bank has financed 34 projects during the year 2009 amounting to Tk.2529.45 million. In long term portfolio, the bank has been diversifying from textile and RMG industries to steel industries, CNG filling stations, Power Sector, Pharmaceuticals Sector, Telecom industries, Chemical project etc. The Bank also participates in syndicate financing. During the year 2009 the Bank sanctioned syndicated term loan of Tk.1175.09 million and successfully arranged a syndicated term loan facility of Tk.565.04 million as the Lead Arranger.

IFIC Bank Limited has also started lease financing in August 2004 operating under CRM Division. Lease financing has been proved to various concerns in different sectors especially:

CNG conversion and refueling plant

Capital machinery/industrial plant

Medical equipment

Generator, lift, escalator for commercial buildings

Agricultural equipment like tractors/power tillers/trailers

Automobiles like bus, luxury bus, minibus, truck, car, pickup, water transport etc.

Components for IT education centers

As of December 31, 2008, loans amounting to Tk.786.96 million have been sanctioned under lease finance scheme.

In terms of Bangladesh Bank Circular, the Board of Directors in its 633rd Emergency meeting held on 17th December, 2009 approved Prudential Regulations on Small Enterprise Financing and Consumer Financing. Accordingly, the schemes were made operative on 2nd March, 2008.

In order to cope with the ever changing market situation, both the schemes introduced various products. In consumer financing, products like, Consumer Durables Loans, Parua, Thikana, Flexi Loan, Peshajeebi Loan, Auto Loan, Festival Loan etc. have been launched to cater to the needs of the people of different segments of the society. The bank has received a spectacular response from the customers in the sector. Total outstanding of consumer loan stands at Tk.5280.80 million as 30.12.2009 which indicates full support and confidence of the clientele.

In Small Enterprise Financing collateral free loan under the name and style “Retailers’ Loan” has been introduced to finance small traders who have no collaterals to offer. Another product titled “Possession Right Loan” offered to the proprietor of the business concerns, only against Possession Right Deed is also very popular. Besides, there are other products designed to fulfill the needs of the small businessmen. Total outstanding of Small Enterprise loan stands at Tk.7412.28 million as on 30.12.2009

The bank is in the process of launching Credit Card to expand the retail portfolio. As approved by the Visa Asia-Pacific. Board of Directors, IFIC Bank has got Principal Membership of Visa and Plus program. Now IFIC Bank is allowed to issue Visa Cards and can set-up electronic and acceptance machine and ATMs in various merchant locations wherein both the IFIC Bank Visa Cards and other Banks’ Visa Cards can be used. The forma operation of Credit Card has already been started.

Organization Structure & Responsibilities

Hierarchy of the Management of IFIC Bank Ltd

Distribution of Branches

The bank covers by its activities all the important trading and commercial centers of the country. As on June 01, 2010 it had 82 branches and five SME services centers within Bangladesh. All the branches are equipped with computers in addition to modern facilities, logistics and professionally competent manpower.

Domestic Branches of the Bank

The branches of the Bank cover all tile important trading and commercial centers in Bangladesh. At present it has 82 branches within Bangladesh. All the branches are equipped with computers in addition to modern facilities, logistics and professionally competent manpower. Steps are underway to open new branches in important locations in the country during June 2010.

Information Technology Structure

Present information technology structure of IFIC Bank

  1. Computer System
  2. Computerized Services
  3. Future Computerization
  1. A.  Computer System
  • Computerized Branches: 82 out of 82(i.e. 100%) Branches are computerized throughout the country.
  • Local Area Network: All Branches (i.e. Motijheel, Federation, Dhanmondi, Gulshan, Moulvi Bazar, Narayanganj & Agrabad) are operating in Local Area Network environment.
  • Banking Software: Currently 64 LAN Branches are using BexiBank 4000+ and rests of the Branches are not online system.
  • Operating System: Most of our Branches, which are using BexiBank 4000+, are operating their Computer System in DOS (Disk Operating System). Branches, which are operating in LAN environment, are using Windows 2000, Winxp or Novell NetWare operating system.
  • Central Backup System: Presently Information Technology & Computer Division of Head Office is maintaining an Office Central Backup System for all the Computerized Branches and Division of Head Office of our Bank.
  1. B.  Computerized Services
  • Tele Banking (Computerized Phone Banking): Our Banking has implemented Computerized Phone Banking technology in 82 Branches (i.e. Motijheel, Federation, Dhanmondi & Gulshan).
  • SWIFT Network: Presently our International Division of Head Office is operating their Foreign Trade related transaction through SWIFT Network.
  •  Electronic Mail: 82 Branches has (i.e. Motijheel, Federation, Gulshan, Dhanmondi, Narayanganj & Agrabad) are using Email facility for international and internal correspondence. In future all AD Branches will be brought under Email facility.
  • Home Banking: Our Bank is currently engaged in implementing this new service for Bank’s high net-worth selected business clients.
  1. C.  Future Computerization Expansion Plan
  • Inter Branch Connectivity: Our major plan in the IT sector is to ensure Inter Branch Connectivity of selected major Branches (i.e. Motijheel, Federation, Dhanmondi, Gulshan, Moulvi Bazar, Narayanganj & Agrabad) under Wide Area Nerwork (WAN) facility to offer our customers “Any Branch Banking” facility.
  • Visa Card: Visa Card already established.
  • Metropolitan Area Nerwork/Head Office Computerization: Network implementation among Divisions (i.e. Special Project Division, Credit Division etc.) of Head Office is in under consideration.

D. At present now, all the branches are uses MISYS software system. This software                   system bring from the USA.

Management Structure

The thirteen members of the Board of Directors are responsible for the strategic planning and overall policy guidelines of the Bank. Further, there is an Executive Committee of the Board to dispose of urgent business proposals.

Besides, there is an Audit Committee in the Board to oversee compliance of major regulatory and operational issues.

The CEO and Managing Director, Deputy Managing Director and Head of Divisions are responsible for achieving business goals and overseeing the day to day operation.

The CEO and Managing Director is assisted by a Senior Management Group consisting of Deputy Managing Director and Head of Divisions who supervise operation of various Divisions centrally and co-ordinates operation of branches.

Key issues are managed by a Management Committee headed by the CEO and Managing Director. This facilitates rapid decisions.

There is an Asset Liability Committee comprising member of the Senior Executives headed by CEO and Managing Director to look into all operational functions and Risk Management of the Bank.

Risk Management

In view of the global recognition towards need of an effective risk management and control systems in financial sector, IFIC Bank being cognizant of the importance of the subject, has prepared and implemented the following policy guidelines on Risk Management:

• Credit Risk Management
• Asset Liability Management
• Foreign Exchange Risk Management
• Internal Control & Compliance
• Prevention of Money Laundering

Human Resource Development & Research

Human Resources Development is focused on recruitment and in-house training for both on the job and off the job Bank staff members through the Bank’s Academy. IFIC Bank Academy – the oldest institution in the private sector – was conceived of as an in-house training center to take care of the training needs of the Bank internally.

The Academy has a good collection of books, journals and magazines. The books are mainly on subjects like Banking, Economics, Accounting, Management and Marketing etc. As on December 31, 2009 the library had 6,861 books/titles. The books are issued to the employees usually for one month.

Main training activities consist of in-depth foundation programmers for entry level Management Trainees. Specialized training programmers in the areas like general banking, advance, foreign exchange, marketing and accounts etc. are also organized by the Academy depending on need.

Frequently outreach programmers are organized to meet demand for new and specialized skills.

During its 26 years of existence, Academy not only conducted courses, workshops and seminars as required by the Bank, but it also organized training programmers for the Bank of Maldives, Nepal Bangladesh Bank Limited and Oman International Exchange LLC. In addition, Academy has also the credit of organizing system of Bank of Maldives.

In addition to conducting courses internally, The Academy also selects candidates for nomination to various courses conducted by distinguished training organizations in the country including Bangladesh Bank Training Academy and Bangladesh Institute of Bank Management.

The Academy also re-designs its courses, programs etc, regularly to med the requirement of new skills arising out of various directives, guidelines of the Central Bank and significant changes in the banking sector from time to time

Products & Service

Auto Loan

Rolls Royce, Ferrari or a Cadillac that’s for one born with good luck. For the one’s who dream to make their own luck? Come to IFIC for your desired Car. We will make it come true whether it’s a Maruti or a Mercedes.

Getting the Loan: / How can you get the Loan?
If you are an adult employed person and have an account with us then you can easily apply for the AUTO LOAN.

Loan Size: / How much Loan can you get?
Maximum Tk.20 lac *.

Loan Period: / What is the period to repay your Loan?
12-60 months.
Debt Equity Ratio: 70:30

Interest rate: 15.50% p.a
Quick Processing Immediately.
Least Formalities.
*Conditions apply

Consumer Loan

Life is complex as it is. IFIC makes your life-style easy and comfortable with the Consumer Durable Loan. So avail the easy facility offer.

Getting the Loan: / How can you get the Loan?
If you are an adult and employed person and have an account with IFIC, then you are eligible to apply for the loan.

Loan Size: / How much Loan you can get?
Maximum Tk.1 Lac.

Loan Period: / What is the period to repay your Loan?
12-36 months.
Debt Equity Ratio: 80:20

Interest rate: 16.50% p.a


Quick Processing Immediately.
Least Formalities.

*Conditions apply.

Easy Lone

No limits for personal needs, needs are endless. Our EASY LOAN is to serve your personal financial needs. Just walk-in to any of IFIC’s branch and avail your EASY LOAN.

Getting the Loan: / How

can you get the Loan?

If you are an adult person and have an account with us then you can easily apply for the EASY LOAN.

Loan Size: / How much Loan can you get?
Maximum 95% of the face value of FDR.
Maximum 100% * of the MIS amount.
Maximum 100% of the principal amount of PSS.

Loan Period: / What is the period to repay your Loan?
12-36 months.

Debt Equity Ratio: 70:30

Interest rate: 16.50% p.a

Quick Processing Immediately.
Least Formalities.

*Conditions apply

Easy Loan


Porua Loan

A good education is the foundation for a successful life. IFIC is offering the opportunity to students to pursue higher education opportunity with the loan facility.

Getting the Loan: / How can you get the Loan?
If you are an adult employed person and have an account with IFIC, then you are eligible to apply for the loan.
Loan Size: / How much Loan you can get?
Maximum Tk.8 Lac* (With collateral security)

And Maximum TK. 3Lac (without collateral security)

Loan Period: / What is the period to repay your Loan?
12-48 months
Quick Processing Immediately.
Least Formalities.
*Conditions apply


Flexi Loan

The demands and uncertainties of life getting you down. Here is the answer. Come avail yourself IFIC’s Flexi Loan, to turn the uncertainties of life to a certainty you can control.

Getting the Loan: / How can you get the Loan?
If you are an adult Bangladeshi employed by the Govt/Autonomous body/ Bank/ MNC/ NGO or any other kind of employed person with at least monthly Tk. 10,000 salary then you are eligible for the Flexi Loan.

a. Marriage expense for sons and daughters.
b. Holiday expenses for self and family members.
c. Emergency medical needs.
d. CNG conversion for car.
e. Home renovation / any other purpose

Loan Size: / How much Loan can you get?
Maximum Tk.3 lac*.

Loan Period: / What is the period to repay your Loan?
12-36 months.

Quick Processing Immediately.
Least Formalities.

*Conditions apply

Thikana Loan

A man’s home is just not his castle, it’s more than an asset, and it’s an investment for his future generation. IFIC’s Thikana Loan helping you find you’re ADDRESS. Your life’s Satisfaction First.

Getting the Loan: / How can you get the Loan?
If you are an adult employed person and have an account with IFIC, then you are eligible to apply for the loan.

Loan Size: / How much Loan you can get?
Maximum Tk. 75 Lac.

Loan Period: / What is the period to repay your Loan?
Maximum 15 years.
Debt Equity Ratio: 70:30

Interest rate: 15.0% p.a

Quick Processing Immediately.
Least Formalities.

* Conditions apply

Possession Loan

For those people running a successful business from rented premises, IFIC BANK is there to finance you for POSSESSION LOAN. So your business can have its own Permanent Address.

Getting the Loan: / How can you get the Loan?
If you are a Bangladeshi entrepreneur with only 2 years of successful business record & having a valid trade license and also have an account with IFIC, then you are eligible to apply for this loan.

Loan Size: / How much Loan you can get?
Maximum Tk. 5 Lac.

Loan Period: / What is the period to repay your Loan?
Maximum 65 years on the date of maturity of the loan.

Quick Processing Immediately.
Least Formalities.

*Conditions apply.

Peshajibi Loan

Whether you are a Doctor/ Engineer/ IT professional/ Management Consultant or any other professional come find out about IFIC’s advancement Peshajeebi Loan that lays the foundation for your career elevation. IFIC works for your professional Satisfaction.

Getting the Loan: / How can you get the Loan?
If you are an adult employed person and have an account with us then you can easily apply for the PESHAJEEBI LOAN.

Loan Size: / How much Loan can you get?
Maximum Tk.5 lac*.

Loan Period: / What is the period to repay your Loan?
12-36 months.

Quick Processing Immediately.
Least Formalities.

*Conditions apply

Retail Loan

To the small entrepreneurs who know their trade yet feel frustrated by the lack of money to get a bigger share in the marketplace. IFIC BANK understands their problem and believes that financial support at the right time can take them to (their desired) right place.

Getting the Loan: / How can you get the Loan?
If you are a Bangladeshi entrepreneur with min of 2 years of successful business record, have a valid trade license and have an account with IFIC, then you are eligible to apply for this loan.

Loan Size: / How much Loan you can get?
Maximum Tk.1 Lac.

Loan Period: / What is the period to repay your Loan?
Maximum 2 years.

Quick Processing Immediately.
Least Formalities.

*Conditions apply.

Pension Savings Scheme

Empower yourself for a secure and prosperous future with IFIC PSS. Partnership for a prosperous and secure future.
Under this Scheme you can open a deposit scheme for Tk.500, Tk.1000, Tk.2000 and Tk.5000 and 50000 per month for 3 or 5 years whichever suits you.
You can make the deposit within 10th of each month (In case of holiday the next working day).
You can get Loan up to 80% of the deposited amount
You can receive the entire deposit amount with interest at one go or receive a pension on a monthly basis at a desirable amount of your monthly installments.
For your clarity a Table of Deposit Scheme and after Maturity Payable Amount is given below:

Monthly Installment     3 Years Scheme           5 Years Scheme

Tk.500                        Tk.20781                 Tk.36266

Tk.1000                 Tk.41502                 Tk.72532

Tk.2000                 Tk.83125                 Tk.145064

Tk.3000                 Tk.124687                Tk.362661

Tk.5000                 Tk.207812                Tk.381340

Tk.50000                Tk.2078118               Tk.3813399

Extra Benefits:

If you fail to deposit monthly installments continuously for 3 consecutive months your account will become automatically inoperative. But, it can be revalidated on the 4th month on receiving all outstanding installments along with a written application. You will be given two (2) opportunities during the 3 years scheme and three (3) opportunities during the 5 years scheme to avail this option.
You can pay installments by transferring from your CD/SB account maintained with the concerned branch.
Installments may also be paid in advance.
You can close the account at any time by a written application*.
Monthly installments to PSS will qualify as investments in yearly Income Tax return.

Rules and Regulations:
The applicant has to be +18 years of age.
On failure of 4th consecutive monthly installment the account will be fully closed automatically.
* If the applicant want to close the account before maturity the following rules will be followed:
a) have to pay Tk.200 as service charge
b) If the account is closed within one year, only principal amount will be paid.
c) If the account is closed after one year, only principal amount along with interest at saving rate/PSS rate (whichever is lower) prevailing on the date of closure of the account will be paid.


As per decision of the management, the rates of interest on deposits are being revised with effect from 01.03.2007
Types of DepositDeposit Rates
Savings Bank Deposit (SB)

 5.5%Short Term Deposit (STD):
Less Than Tk. 1.00 crore
Tk. 1.00 crore and above but less than Tk. 5.00 crore
Tk. 5.00 crore and above but less than Tk. 10.00 crore
Above Tk. 10.00 crore
Bank to Bank


All this products and services are implemented properly with the help of many departments. The functions of those departments are:

General banking Division

A wide range of products and services different type of deposits such as SB, CD, FDR etc are offered by this department. Local private banks is biggest threat a they offer higher interest rate and better services.

General Credit Division

A wide range of products and services, such as different type of loans are offered by this department. It faces continuous challenge from the local private banks, which mainly specializes in the consumer banking. As a result, it has to develop new products and services to ease the competition on a continuous basis. The approval is mainly based on the risk analysis of the corporate clients done by the Corporate Banking division.

Finance and Accounts Division

This department performs the following activities:

Sources of finance

Administration, audit and back office operation.

Salary & Provident Fund

Taking care of taxation and financial control of the Bank.

Decision making related to administrative activities

Recovery Division

Recovery of stuck-up loans is a major concern for the bank. This division helps general credit and project finance divisions to recover the loans and take legal action against those creditors. Some time there is some usual recovery. Recovery from written off loans goes to income account of the bank.

Project Finance Division

IFIC Bank’s corporate clients mainly comprise the top local and multinational companies operating in Bangladesh. The main objective of this department is to build and maintain positive relationships with their clients. As a result, each and every company is assigned a Relationship Manager, who maintains regular contacts with clients. Moreover, this department offers the following facilities to its clients:

Project Finance.

Syndicated Loans.

Bonds and Guarantees, etc.

Treasury Division

The foreign exchange and money market operation of the IFIC Bank is broad.  Exotic currencies happen to be one of its specials areas of strength. A 24 hour-service is provided to customers in Bangladesh through the Bank’s network of dealing centers placed in the principal of the world. The Bank’s treasury specializes in offering solutions to who wish to manage interest rate and currency exposures that result from trade, investment and financing activities of other dynamic economies of the region.

Internal Control & Compliance

Banking involves high risk, the presence of effective internal control system, corporate governance, transparency and accountability is vital to ensure smooth operation of the bank. The internal control is the process affected to provide reasonable assurance for the achievement of the objectives of the bank, the reliability of financial reporting and compliance with applicable laws, regulation and internal policies.

Audit & Inspection Division

This division helps the bank accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes. It also assists development of the process for smooth operation of various department and branches, detect major deficiencies in the branches, review the activities and organizational structure of the internal audit function.

Foreign Trade Division

All the overseas branches are under the control of this division, the regularly communicate with those branches and solve problem of those branches.

Marketing Division

It basically handles all promotional campaign, branding both consumer and corporate products and services for IFIC bank.

 Law Division

In Bangladesh local banking laws regulate and rules set by the Ministry of Finance and Bangladesh Bank is handling by this division. Law division has to take care of are:

Any kind of legal issues

Compliance advisory service

Personal Division

It works with the administrative issues and supervise internal work environment. It also encourages its staff to conform to an internal culture of ethical behavior and sensitivities to the culture and religion of the country.

Human Resource Development Division

Human Resource Development is focused on recruitment and in house training for both on the job and off the job bank staff members through the Bank’s Academy. IFIC Bank Academy- the oldest institution in the private sector was conceived of as an in house training center to take care of the training needs of the Bank internally. One of our four major missions is to: “Provide service to our clients with the help of a skilled and dedicated workforce whose creative talents, innovative actions and competitive edge make our position unique in giving quality service to all institutions and individuals that we care for.”

Panning, Research & Statistics Division

They study the market through which they find out which product has demand in current market, plan for new product features and they collect statistical data for future use.

Computer & IT Division

Now all the branches were under similar automated platforms with upgraded software applications to offer all the critical banking features. IFIC Web site has been launched for the convenience of the customers, where all the activities and information are constantly being posted and undated. This gives all technical support to all branches and Head Office.

Milestones in the Development of IFIC Bank

1976 – Established as an Investment & Finance Company under arrangement of joint venture with the Govt. of Bangladesh.

1980 – Commenced operation in Foreign Exchange Business in a limited scale.

1982 – Obtained permission from the Govt. to operate as a commercial Bank.

1983 – Setup its first overseas joint venture (Bank of Maldives) on the Republic of Maldives.
– Commenced operation as a full-fledged commercial Bank in Bangladesh.

1985 – Set up a joint venture Exchange Company in the Sultanate of Oman.

1987 – Set up its first overseas branch in Pakistan at Karachi.

1993 – Set up its second overseas branch in Pakistan at Lahore.

1994 – Set up its first joint venture in Nepal for banking operation.

1999 – Set up its second joint venture in Nepal for lease financing.

2003 – Bank celebrated its 20th founding anniversary.
– Overseas Branches in Pakistan amalgamated with NDLC, to establish a joint venture Bank: NDLC-IFIC Bank Ltd. subsequently renamed as NIB Bank Ltd.

2005– Acquired MIEYS solution for real time on- line banking application.

Core Risk Management implemented.

2006                       – Corporate branding introduced.

–         Visa principal and plus (Issuer and require) program participant member obtained.

2008       –    Observing 25th Anniversary of Customer Satisfaction.

2009     –    64 Branches offering Real Time On-line banking faculty.

2010 –     All Branches of IFIC Bank is operating under state –of –art world class Real Time On-line banking Solution.

Chapter 3



Banking is nothing but collecting money from the surplus units and deploying it to the deficit units. In this regard Narayanganj Branch plays an incredibly crucial role, because we know that in this area most of the dwellers came from elite class and country’s major portion of the money is owned by them. In my orientation period, I have observed that IFIC Bank’s major portion of the deposits comes from Narayanganj Branch.

History of Narayanganj Branch

IFIC Bank limited, Narayanganj Branch was opened on 25 November 1983, 66/1 B.B Road, Narayanganj. It’s with an initial deposit of TK 211.08 Lac. 13 officials including 3 authorized officers are posted in the “A” grade branch. Staff strength of the branch is adequate as to the volume of their present business. In comparison with other bank’s branches in this area at Narayanganj mobilization of deposit, procurement of business, assets management of our Narayanganj branch are increasing gradually.

In the year 2009, all targets were achieved by the branch except its Advance target. However, all targets as on 30th June, 2009 were achieved by the branch. From the business position as on 13.04.08 (east date of inception), 30.08.09 (date of inception) revealed that credit portfolio of the branch has increasing trend. Total loan & advances of the branch is TK 650.06 Lac as on September 7, 2009 which is 67% of its total deposit indicating very high credit portfolio. The branch earns profit from loan & advances, interest on general account other commission business like commission on L/C, LG, TT, DD, PO etc. Most positive side of this branch is the work environment is very friendly and customers find a comfortable place for their transactions.

Functions of various departments in IFIC Bank, Narayanganj Branch

As given in the organ gram, Narayanganj Branch consists of 13 employees who directly or indirectly serve their customers in various ways. The major functions of the bank have been given before. Now they will be discussed thoroughly by highlighting all the functions of IFIC Bank, Narayanganj branch.

Chapter 4



General banking is the heart of banking activities. Total banking procedure start with this department. General banking department perform the core function of bank operation and it is known as “Retail Banking”. They take the deposits from the customer and meet their demand for cash honoring their checks. It opens new accounts, remit funds, issues bank draft and pay order. Account opening section, Remittance, Checks clearing, Cash, FDR, Accounts section are part of general banking.

Organ gram

General Banking is designed to serve the general people is saving money, smoothing transactions for commercial people and ensure security of the precious wealth of the clients lot of important activities. IFIC Bank has all the required sections of general banking activities come under General Banking section of IFIC Bank are as follows:

General Banking




SectionBills and














 Account Opening Section

This section opens accounts .Selections of customer is very important for the bank because banks success and failure largely depend on their customers. If customer is bad, they may create fraud and forgery by their customers. If customers are bad, they may create fraud and forgery by their account with bank and thus destroy goodwill of banks. So; this section takes extreme caution in selecting its customer base.

Accounts opening process

Step 1Receiving filled up application in bank’s prescribed form mentioning what type of account is desired to be opened.
Step 2
  1. The form is filled up by the applicant himself/herself
  2. Two copies of passport size photographs from individuals are taken; in case of firms photographs of all partners are taken.
  3. Applicants must submit required documents.
  4. Applicants must sign specimen signature sheet and give mandate.
  5. Introducer’s signature and accounts number-verified by legal officer.
Step 3Authorized officer accepts the application
Step 4Minimum balance is deposited – only cash is accepted
Step 5Account is opened and a cheque book and pay-in-ship book is given.




needed from the Account opener of the following types

Partnership Firm
  1. Partnership deed must be taken
  2. Mandate from the partners is essential-indicating who will operate the account.


Public limited company
  1. Certificate of incorporation
  2. Copy of Memorandum and articles of association
  3. Certificate of commitment
  4. Copy of Resolution of the Board of Directors.
Private limited companyCertificate of Commencement is not necessary
  1. Certificate of incorporation
  2. Copy of Memorandum and articles of association
  3. Copy of Resolution of the Board of Directors.

                 Types of Account maintained by this branch- comparative discussion

Types of Deposits

Types of Accounts


Demand Deposits

 Current Account(CD).Generally opened by businessmen

.No interest is provided for deposited amount.

.Minimum opening balance is TK.5000. If it falls below TK.1000 an incidental charge of TK 50 is charged.

 Savings Accounts(SB).Any one expect limited company can open.

.6% interest is provided to depositors.

.Minimum balance is Tk1000.

.twice withdrawal in a week is allowed, for more withdrawal depositors is not entitled any interest.Times Deposits Fixed Deposit Receipts(FDR).Can be opened by all

.12.5% interest is provide the deposit 1 year.

.In case of withdrawal before maturity the pervious maturity period is considered to pay interest-it is known as Break Down Payment.Short Term Deposit(STD).Generally opened by big business firm.

.Interest depends on the amount deposited.

Accounts are opened by the bank, when I was worked in this section


Types of A/C





Relationship with nominee

Age of nominee(year)



Don Chember


















New Chashara












B.B Road














































   14 SavingsKutubpurBusinessmanWife         26
   15SavingskatherpulHouse wifeSon         15
   16SavingsRamarbughService holderDaughter         16
   17SavingsMohammadpurBankerWife         21
  18Current GoalparaBusinessmanWife          23
  19SavingsTanbazarService holderSon          25

Comments: The number of savings Account is more than Current Account.

Target Customer of IFIC Bank Narayanganj Branch:

      Individual person      Public limited company
      Sole proprietorship firm      Government Organization
      Partnership firm      Semi Government Organization
      Private limited company      Bank employee

Types of Accounts

Deposit is life-blood of a commercial bank. Since commercial bank deals with other people’s money, without deposit there is no business for the commercial bank. Accepting deposit is one of the main functions of commercial bank. IFIC bank’s deposits can be broadly classified as follows:

Current Account

Current Account is most suitable for private, individuals, traders, merchants, importers and exporters, mill and factory owner etc. For opening of a current

Minimum deposit of TK. 2000.00 is required along with introductory reference. No interest is given the current account deposited money. One can enjoy maximum flexibility and convenience when s/he opens a current account with IFIC bank limited. This account offers:

Any number of transactions a day

Free check book

Statement of account at any desired frequency

Statement by fax on demand

Savings Account

The saving account is primarily for small-scale savers. The main objective of this account promotion is thrift. Hence, there is restriction on withdrawals are permitted only against prior,

Minimum amount of TK. 1000.00 is required as initial deposit.

Frequent withdrawal is not encouraged.

7 days is required for withdrawal of large amount

The rate of interest is 5.50 % against SB account.

Short-Term Deposit (STD) Account

In short term deposit account, the deposit should be kept for at least six month to get the interest. The STD account is a very important class of account in this bank. The minimum amount of balance has to be maintained with STD account is TK. 30000 Interest is given at a rate of 4% percent which is less than savings account. Normally various big companies, organizations, government departments keep money in STD account. For this type of account, frequent withdrawal is discouraged. Deposit should be kept for at least seven days to get interest. Prior notice is required for the withdrawal of money from STD account. The account holder must give seven days before the withdrawal that is why STD is also called ‘Seven days notice’ current account.

Interest rate





1Less than TK 1.00 crore4.00%4.00%
2TK 1.00 crore and avobe but less than TK 5.00 crore4.25%4.25%
3TK 5.00 crore and above5.00%4.75%
4Bank to Bnk0.50%0.50%
5Initial Public offering(IPO)5.00%4.75%

 Fixed Deposit Receipt (FDR)

This branch maintains a separate section for fixed deposit. FDR is an important factor for the bank and volume of FDR determines the investment base of the bank. FDR is found to be 60% of the total deposit of this branch. Basically this is the mobilization unit of the bank. It is obvious to give due importance.

Types of FDR maintained by this branch along with their respective interest rate

Fixed Deposit

Rate of  interests effect from 27/05/09







One year


 Liquidation of FDR

1. Only the amount holder himself and the authorized person can liquid the FDR after maturity.

2. In case of joint name, authentication from both is necessary.

3. In case of ‘Either of Survivorship’ clause – any one can liquid.

4. In case of Death, the survivor cannot encase the FDR even if there exist the either or survivor clause-succession certificate from the court is needed.

5. If demanded before the maturity the last expired duration is considered to pay interest.

FDR section provides another service on behalf of the government. These services this bank issues and encash the following govt securities.

 3month Bangladesh sanchay patra

This section of this branch is also fully computerized. No ledger, no other subsidiary books are maintained separately in this section. All entry is given directly in the computer and then necessary information is printed when required.

Transfer of an account to another Branch

Sometimes the customer wants to transfer his account to another branch due to various reasons. IFIC Bank, Narayanganj Branch, also gives this kind of facility to the customer. In this case, they will have to submit an application to the branch manager stating the reasons. The officer verifies the signature and finds out the balance of the account holder. The holder also submits the rest check leaves along with the application. Then the officer issues an Inter Branch Credit Advice (IBCA) to that branch and a debit voucher with the balance of deposit in that account. He also sends the account opening form and specimen signature card to that new branch. The new branch officer verifies the customer signature with account opening form supplied to him. The amount mentioned in the (IBCA) considered as the initial deposit of the new branch.

Closing Procedure of an account

For two reasons account can be closed –

By Banker: banker has the right to close the account if the customer does not maintain any transaction six years and the balance is become lower than the minimum balance.

By Customer: if the customer wants to close his account he will write an application to the manager and the manager then close the account.

Firstly, the concerned customer has to apply for closing his/her account. Then to close the account the cheque book is to be returned to the bank. After charging the account closing charge the Manager will close the account. Closing charges are as follows:

For below 6 months 100 tk.

For over 6 months 200 tk.

The rest amount of money laid in the respective account is paid to the customer by a payment order. In case of payment order certain commissions and vat are cut off from the account.

Cash Section

Cash department is the most vital and sensitive organ of the branch as it deals with all kinds of cash transactions. This department starts the day with cash in vault. Each day some cash that is 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

Cash Payment
  1. Cash payment is made only against check
  2. This is the unique function of the banking system which is

known as payment on demand

  1. It makes payment only against its printed valid check
Cash receipt
  1. It receives deposits from the depositors in form of cash
  2. So it is the mobilization unit of the banking system
  3. It collects money only its receipts form s

Cash payment or check cancellation process

Step 1Receiving Check by the employee in the cash counter
Step 2Verification of the followings by the cash Officer in the computer section
  1. Date of the check (it is presented within 6 month from issue date)
  2. Issued from this branch
  3. Amounts in figure and sentence written does not differ
  4. Signature of the drawer does not differ
  5. Check is not torn or mutilated

Step 3Gives pay cash seal and sends to the payment counterStep 4Payment officer makes payment

Books Maintained by this Section

Vault RegisterCash balance at the end of a day is recorded in this book which is kept in the vault.
Cash Receipt RegisterCash receipt in whole of the day is recorded here
Cash Payment RegisterCash payments are made in a day are entered here
Rough Vault RegisterCash calculation for final entry in vault register is done here, as error and correction here is not acceptable in vault book or balance book.
Cash Balance BookBalance here is compared with vault register.  If no difference is found, indicates no error.

Cheque Clearing and Remittance Department

This department receives cheque from its depositors for the purpose of collection by a deposit slip over the counter crediting their account. Clearing of cheque is done through the clearinghouse in Bangladesh bank. Everyday the first house starts at 9 a.m. and returns house at 5 p.m.

The main objective of clearing and remittance department is to provide an extra facility to the customer other than cash receipt and payment. We can divide this department into two parts. One is Clearing & Transfer Delivery section, and the other one is Local Remittance section. In IFIC Bank, Narayanganj Branch, there are three employees, working in this department. I am trying to present my findings in the following parts regarding these two sections.


According to the Article 37(2) of Bangladesh Bank Order 1972, the banks, which are the member of the clearinghouse, are called as Scheduled Banks. The scheduled banks clear the cheque drawn upon one another through the clearinghouse. This is an arrangement by the central bank where everyday the representative of the member banks gathers to clear the cheque. Banks for credit of the proceeds to the customer’s accounts accept cheque and other similar instruments. The bank receives many such instruments during the day from account holders. Many of these instruments are drawn payable at other banks. If they were to be presented at he drawer banks to collect the proceeds it would be necessary to employ many messengers for the purpose, Similarly there would be many cheque drawn on this the messengers of other banks would present bank and then at the counter. The whole process of collection and payment would involve considerable labor, delay, risk and expenditure. All the labor, risk, delay and expenditure are substantially reduced by the representative of all the banks meeting at a specified time, for exchanging the instruments and arriving at the net position regarding receipt or payment.

The place where the banks meet and settle their dues is called the Clearinghouse. The clearinghouse sits for two times a working day. The members submit the climbable cheque, in the respective desks of the banks and Vice versa. Consequently the debit credit entries are given. At the debit summation and the credit Summation are calculated. Then the banks clear the balance through the cheque of Bangladesh Bank. The dishonored cheque are sorted and returned with return memo named ‘Memorandum’.

Step 1The returns of the outward clearing/ transfer delivery are received by the branch in the same manner as the inward clearing/ transfer delivery (Return of Instruments).
Step 2Depositor’s account is debited with the amount of the instrument.
Step 3The instrument together with the Check Returning Memo in Bank’s form is sent to the depositor with covering memo immediately.
Step 4The instrument together with the Check Returning Memo is sent to the department concerned if lodged by them.
Step 5It the instrument is to be re-lodged, a credit voucher is prepared and attached with it and the instrument is presented again.
Step 6The instruments returned unpaid by the various departments are received in the Clearing Department attached with Memo in standard form and entered in the Register (Inward Clearing Transfer Delivery).
Step 7The returns of inward clearing/ transfer delivery are sent by the branch in the same manner as the outward clearing/ transfer delivery.
Step 8The credit voucher is not posted unless the relative instrument is paid (Internal Transfer).
Step 9If the instrument is returned, the entry is cancelled and initialed in the Transfer Book.
Step 10The instrument together with the Check Returned Memo is sent to the depositor covering memo through Dispatch Department.
Step 11If the amount of the advice received is less than the amount of the instrument received or the amount of the advice sent is more than the amount of the instrument delivered, the excess amount is sent to the Bank concerned by a Pay Order and the following entries are passed (Difference in Clearing):

Debit: Sundry Deposit A/C- Difference in clearing Credit: Bills Payable A/C- Pay Order issuedStep 12If the amount of the advice received is more than the amount of the instruments received or the amount of the advice sent is less than the amount of the instruments delivered, the following entry is passed and the entry is reversed when the Pay Order is received. Debit: Sundry Asset A/C- Clearing AdjustmentStep 13When an instrument is presented in special clearing on request of the customer, the instrument is stamped and suitably endorsed (Special Clearing).Step 14Such instruments should invariably be drawn on Bank with whom the main branch maintains account (Bangladesh Bank & Sonali Bank).Step15Branch sends the instrument duly entered in Outward Clearing Register and Sub-main Schedule to the branch representing the Clearing 1 louse (When representing branch maintains A/C).Step 16Branch representing the Clearing Mouse sends the instruments to the drawee Bank duly entered in Pay-in-Slip of the Bank for credit of the proceeds in the account maintained with them.Step 17On receipt of the information of credit of the proceeds from the drawee Bank, the branch representing Clearing House then sends an Inter Branch Credit Advice (IBCA) to the branch concerned.Step 18Where instruments drawn on Banks other than those, with whom the branch, representing Clearing House does not maintain account, Pay Order/ Bangladesh Bank Check issued by the drawee Bank in payment of the instrument are lodged in clearing.

Bank’s Locker service is also delivered from this department. In IFIC Bank, Narayanganj Branch, this department is maintained by two officers.                      

 Inward Clearing

Step 1The instruments drawn on IFIC Bank are received from other Banks in the Clearing House by the representing branch of the Bank.
Step 2The amount and number of instruments received are entered in the House Book from the main schedules of respective banks.
Step 3The amount of instruments delivered, received and difference is written in a slip provided in the Clearing House and the Slip is returned.
Step 4The instruments with schedule are arranged branch wise.
Step 5A copy of each schedule is detached.
Step 6The amount of each schedule received is entered in the House pages of the respective branches.
Step 7The respective House pages are totaled and the total of each is noted on a Slip and a grand total is taken out.
Step 8The grand total is agreed with the total of the House Book.
Step 9The instruments are sent to the respective branches with Slip showing total amount and number of instruments.
Step 10The instruments are sent to the branches concerned for clearance along with the IBDA with the total amount of the instruments.
Step 11The House pages along with the duplicate schedules are filed.
Step 12Particulars of the instruments are compared with the schedule and the Slip and the schedules are detached (Receipt of instruments in the Branches).
Step 13The instruments are sent to the respective departments and the schedules are filed.


Outward Clearing

Step 1The instruments drawn on other banks are received duly entered in the Pay-in-Slip or voucher.
Step 2The instruments are checked and compared with the particulars noted in the Pay-in-Slip and its counter folio.
Step 3In case an Order instrument is being deposited in second payee’s account, guarantee is obtained from the second payee on the reverse of the instruments.
Step 4In case the payee’s name on the specially crossed instrument differs slightly from that of the depositor, the instrument may be accepted but only from the customer’s well known to the Bank and after obtaining an Indemnity this is attached to the Pay-in-Slip.
Step 5Proper stamp(s) is/ are affixed on the instruments and on Pay-in-Slip and the counter folio.
Step 6The instrument is suitably endorsed/ discharged.
Step 7The instrument along with the Pay-in-Slip is sent to the In-charge for checking and signature.
Step 8The instrument and Pay-in-Slip are detached from the counter folio which is handed over to the customer.
Step 9The particulars of the instrument and the voucher are entered in the Outgoing Clearing Register.
Step 10Serial number Is given on each voucher.
Step 11The Register is balanced; the vouchers are separated from the instruments and released after lodgment to the respective departments against acknowledgement in the Register.
Step 12The instruments are arranged bank-branch-wise.
Step 13The Sub-Main-Schedules are prepared in triplicate, two copies of which are attached with the relative instruments.
Step 14The grand total of the schedules is taken and agreed with that of the Register.
Step15The House Page is prepared in duplicate.
Step 16The IFIC General A/C Clearing House representing branch is debited with the amount of the instruments and IBDA is sent to that branch and the party’s account is credited.
Step 17The instruments with the schedules are sent to the branch representing to the Clearing House.
Step 18The instrument is received in the manner similar to that explained in foregoing paras (Receipt of instruments by the Branch representing to the Clearing House).
Step 19The instruments with schedules are received from the branches (Lodgment by the branch representing to Clearing House).










Transfer Delivery

For payment of Bills presented to a particular branch of the Bank through another branch of the Bank, the procedures are the same as those applicable to Inward Clearing. The only exception is that there are no clearing house formalities. The concerned branches of the Bank directly deal with Inter-branch clearing.

Outward Transfer Delivery

For collecting of Bills by a particular branch of the Bank, drawn on another branch of the Bank the procedures are the same as those applicable to Outward Clearing. The only exception is that there are no clearing house formalities. The concerned branches of the Bank directly deal with Inter-branch clearing.


Remittance can be done by telegraph transfer, mail transfer, traveler’s cheque and drafts and cheque. There are two steps of remittance:

Local Remittance

Sending money from one place to another place for the customer is another important service of banks. And this service is an important part of country’s payment system. For this service, people, especially businessmen can transfer funds from one place to another place very quickly. There are five kinds of techniques for remitting money from one place to another place. These are:

1)        Money Transfer

2)     Pay Order

3)     Demand Draft

4)     Telephone Transfer

5)     Mail Transfer – Time consuming and not frequently used

 Money Transfer

IFIC Bank Ltd. earns a huge amount of money by selling several customer services. The IFIC Bank Ltd. offers the following services to its customer:

Demand Draft (DD)

DD is the most popular instrument of remitting fund. It is an order to pay money drawn by one branch of a bank upon another branch of the same bank for a particular sum of money which is payable to order and demand.

Issuing of a Demand Draft (DD):

The steps of issuing a DD to be followed:

  • The applicants have to fill up the relevant part of the prescribed application form duly signed & give it to the officer of the remittance department.
  • The officer fills up the commission & VAT (15% on commission) part meant for the bank’s use & requests the applicant to deposit the amount by cash I cheque to the cash. By that time the authorized officer get the ‘Test Number.’
  • The cash department completes their formalities & then return back the form to the remittance department.
  • After receiving the form the remittance department prepares the DD facing all the information along with the amount in two parts & also give entry in the DD issue register.
  • After signed the two part of DD by two authorized officer of the bank the main part is given to the client & after signed at the back of the counter part of the DD.
  • When the DD is given to the client, remittance department prepares the necessary advice.

Payment Order (PO)

A payment order is an instrument from one branch to another of the same bank to pay specified sum of money to the person named therein of his order. Unlike cheque, there is no possibility of dishonoring pay order because before issuing bank takes our money of the pay order in advance.

Amount of DD                 Commission (TK)

TK 0 to TK. 1000                                    10

TK. 1000 to TK. 100000                          25

TK 100000 to TK 500000                                    50

Above TK. 500000                                  100

Issuing of a Pay Order:

The steps of issuing a Pay Order to be followed by the client & the bank

  • The applicants have to fill up the relevant part of the prescribed application form duly signed & give it to the officer of the remittance department.
  • The officer fills up the commission & VAT (15% on commission) part meant for the bank’s use & requests the applicant to deposit the amount by cash I cheque to the cash.
  • The cash department completes their formalities & then returns back the form to the remittance department.
  • After receiving the form the remittance department prepares the Pay Order facing all the information along with the amount in three parts duly crossed “A/c payee” in the main part & also give entry in the Pay Order issue resister.
  • After signed the three parts of Pay Order by two authorized officer of the –bank two Ws are given to the client & after signed at the back of the counter part of the Pay Order.

Telegraphic Transfer (TT)

TT is the fastest means of money transfer between two branches of the same bank. The formalities of TT is as same as MT, there are taken some extra charge for telephone.

Telegraphic and Telephone transfer are almost the same, both are them are known as TT in short. IFIC bank helps people transfer their money from one district to another in the quickest possible time at the lowest service charge.

  Issuing of a TT:

The steps of issuing a TT to be followed by the client & the bank

i) The applicants have to fill up the relevant part of the prescribed application form duly signed & give it to the officer of the remittance department.

ii) The officer fills up the commission & VAT (15% of commission) part meant for the bank use & requests the applicant to deposit the amount by cash / cheque to the cash By that time the authorized officer get the’ Test Number &,also give entry in the TT issue register..

iii) The cash department completes their formalities & then returns back the form to the remittance department.

iv) After receiving the form prepare the message conveying form with all details & send the TT after informed the high officials.

v) The client is given one slip named as TT memo as the proof of the issuance of the TT

vi) When the TT message is sent, remittance department prepares the necessary advice.

Mail Transfer:

A mail transfer (MT) is the order to pay cash to a third party or for a credit to be passed to the account of the payee in the books of the agent. The order is to be made in writing and sent by mail. Mail transfers may be made by Airmail or Sea Mail, but in ordinary circumstances mail transfer are made by air unless a customer to the contrary makes a request.

Cancellation of DD/PO/TT             

STEP 1Application in written to the Manager of the account maintain branch.STEP 2Verification of the specimen signature.Step 3

Journal positingIncomingBills  payable DD payable A/C—DR

IFIC General  A/C—–CR

 OutgoingIFIC General  A/C—– DR D

Bills  payable DD payable A/C —–CR dddddddddddddddddA/C

Party A/C————–Step 4Step letter to the paying bank.

Foreign Remittance:

When a bank got this T.T, M.T, T.C and cheque from outside bank, which is not situated in the home country than it, will be called foreign remittance. Using these methods also has done it.

Types of foreign Remittance: Between bank and non‑banks customers.

  • Between banks in the same country
  • Between banks in the different country
  • Between banks’ and central banking the same country.

Between central bank of different country

Different Types of Bank Books

Scroll Book:

Cash receipt of cheques of customers is written in scroll book. Telegraphic Transfer (TT), Mail Transfer (MT), Demand Draft (DD), Pay Order, Special Receipt (SDR) is also written in this book.

Token Book:

Verifying the given cheque as follows:

Verify the date of the cheque (No money will be given to future date cheque)

Verify the amount and compare mathematical and written amount.

Then the cheque’s information is written in Token Book and gives a token (metal) to the customer.

Establishment Section

This section deals with employee’s salary, many types of expenses such as purchase of pen, paper, equipment, machinery and payment of labor cost and employee conveyance. In case of leave of absence employee collects prescribed form this section. This section of the bank is under the second man of this branch. All paper of this section is first signed by the second man of the branch and then branch manager is informed.

Accounts Section

This is obviously an independent and unique department, which works as the composition of all the departments of the branch, but it is under the In-Charge of the General Banking in this branch. This section in this branch is fully computerized. So the conventional large ledger and journal books are not kept like the nationalized banks. Only two personnel maintain the entire accounts

Section. It receives the vouchers from all departments and prepares the subsidiaries and maintains accounts. End of the day all data are stored in CD and at the month end they are send to Head Office.

Books maintained by this section

Daily PositionIt shows the daily position of the branch
Clean CashIt records all cash transaction of the day under different head to check the arithmetic accuracy of the transactions
ExtractExtract is prepared to reconcile inter branch transaction
General LedgerThere are different heads of the general ledger which are Prescribed by  the  head  office  and  the accounts are maintained through those heads
Statement of AffairsIt is the balance sheet of the concern under periodic accounting system. It shows the daily profit of the concern along with the asset and liability of the respective day

Accounts department prepares statement for Head Office Purpose and for submission to Bangladesh Bank as follows:

Weekly Position



Size wise, Range wise & Sector wise statement of deposit

Computer Department

IFIC Bank uses computers extensively all over the branches and head office. Computer system is assigned with the responsibility of maintaining accounts records. All the account SB, CD, STD, Loan accounts are maintained in computer. The statement of affairs and other daily and monthly statements are produced from this system. The security measure of the branch is also maintained by this computer system.

  Chapter 5



SWOT analysis is the detailed study of an organization’s exposure and potential in perspective of its strength, weakness, opportunity and threat. This method uses the organization to make their existing line of performance and also foresee the future to improve their performance in comparison to their competitors. By SOWT analysis, an organization can also study their current position, it can also be considered as an important tool for making changes in the strategic management of the organization.

SWOT Analysis of the IFIC Bank


IFIC bank has already established a favorable reputation in the banking industry of the country. It is one of the leading private sector commercial bank in Bangladesh. The bank has already shown a tremendous growth in the profits and deposits sector.

IFIC Bank Ltd. has a long-term reputation in the banking industry as it is one of the oldest players here. So, their enduring good will in the field works as a vital strength.

IFIC bank has an interactive corporate culture. The working environment is very friendly, interactive and communicate provides as a great motivation factor among the potential customer.

It has excellent Management.

It has high commitment of customer, qualified and experienced Human Resource.

It has sophisticated automated banking system in most of its branches which   foster the overall banking activity.


Lack of motivation among the workers.

Heavy dependency on Head Office in decision making sometimes slower the work process.

Lack of extrinsic and intrinsic reward & incentives for the employees from management sometimes result to job burn out.

High dependency on ‘word of mouth’ strategy instead of obtaining any marketing strategy.

Absence of teamwork between branches.


Other unexplored district where branches can be set up.

High awareness among all level of people to deposit money in the banks.

Increasing the demand of customer finance.

Investment potential of Bangladesh.

Relationship Management.


Some commercial/ Foreign Bank as well as private bank are increasing

Similar type of retail banking products, such as insurance company, stock exchange, financial institution etc.

Frequent changes in rules and regulations from Bangladesh Bank.

Customer awareness of pricing and service.


All the section of this branch is computerized, without checque collection sector. Hopefully the management decided to provide computer for departments, which will bolster services of the bank.

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 and 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 brother.

Encoding and decoding process of test number eat up the lion share of the time of the officer who works in that desk. But a simple computer program could do the same if the desk were computerized.

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.

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.

Like most of the private bank, IFIC Bank Ltd. also imposes a target deposit for collection upon its employees. Every employee has to go out for the purpose of deposit collection, which they call “development purpose”. It is an effective method no question about it, since many banks of our country relies on this method. But sometime affect negatively and cause job dissatisfaction. 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.

Chapter 6



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

 Rectify the Existing Problems

As there is no classified loan, branch should monitor the loans & advances closely to avoid classification in future.

Narayanganj Branch should extend with their all out effort to increase the credit portfolio and to procure more low cash deposit, increase non funded business so as to minimize dependency on interest earning from IFIC Bank general account and to improve overall business performance of the branch to maintain earning.

Narayanganj Branch should set up more CC camera in the branch to hold more control of manager in the branch. It can install CC camera in accounts department and clearing department as it is an important past of the branch and it is not always possible for the manager to visit all departments which has become important.

Narayanganj Branch can contact with the existing customers to make the dormant accounts operative.

When a joint stock company comes to open an account if it’s an existing one, the account opening officer should ask the copies of the Balance Sheet and Income Statement. These will reflect the financial growth of the company and its soundness but in practice bank do not do this. If they have all these that will help them to examine money laundering risk.

There are numbers of new private banks and some have already activated with their extended customer service pattern in a completely competitive market. Where as IFIC Narayanganj branch is far behind. They are not competitive in customer service because the officers do not behave in professional manner in fort of customer. Some time they are late in there service, which ultimately disturbs the respective customer.

Narayanganj branch personnel should train up 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 as there was one officer know about the procedure of SWIFT. He is not fully independent of handling SWIFT. Official training is the solution to this problem. For customer’s convenience in Foreign Exchange Department of IFIC Bank Ltd. should provide more personnel to deliver faster services to their honorable customer.

Now a day conventional banking concept is outmoded. Now banks are offering more ancillary services like credit card, online services and many others. IFIC Bank Ltd. should differentiate its services through adopting the modern facilities and implementing in the branch level.

To deliver quality service top management of this breach should try to mitigate the gap between customer’s expectation and employee’s perception and customer’s convenience should give priority.

Administrative cost of this branch is on the medium side, which has a major impact on profitability. Te manager should bring down the administrative cost and take all effective steps, strategy and action plan to reduce the cost at the desired level.

IFIC Bank should always monitor the performance of its competitors in the field of Foreign Trade.

Without proper knowledge in different laws, rules which set by Bangladesh Bank efficiency of employees cannot be optimize. Bank can arrange training program on these subjects and can test its employees which will improve their qualities.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 is 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 which can only be achieved by improved technology, efficient manpower and better services. If bank get more market share through all these than it will reduce operating cost and generate new revenue. The bank can offer to its customer better service if all of its departments are computerized and incorporated under local area network (LAN).

Without using modern technology no bank can even think of remaining in the business in near future. So the bank must decide right now how it can equip its branches with modern technology. Use of modern technology in one sense can increase cost but another sense it increase higher productivity and it attract big clients. It can introduce ATM service again in all branches which will bring speed in banking services.

Bank is providing both internal and external training for the officers but bank should be scrupulous about the training facilities so that officials can implicate this in their job. People are very choosy about environment now a day, so bank premises should be well decorated and IFIC Bank Ltd. should look into the matter very seriously as well. Side by side it will give customers better felling about the bank.


Some other important factors that should be focused on the development process:

  Time consumed at service level should be minimized at optimum level.

  Evaluate customer’s needs from their perspective and explain logically the shortcomings.

  Customer’s convenience should receive priority over other.

  Improve office atmosphere to give customers better feeling.

  Use of effective management information systems.

  Use appropriate techniques in evaluating customer need professionally.

  To deliver quality service top management should try to mitigate the gap between customer’s expectation and employee’s perception.


The bank can offer to its customer better service if all of its departments are computerized and incorporated under local area network (LAN).

At the entry position the bank should enroll more expertise people to augment quality services.

Now a days-conventional banking concept is outmoded. Now banks are offering more ancillary services like credit card, on line services and many others. IFIC Bank Ltd. should differentiate its services adopting the modern facilities.

Bank is providing both internal and external training for the officers but bank should be scrupulous about the training facilities so that official can implicate this in their job.

People are very choosy about environment now a day, so bank premises should be well decorated and IFIC Bank Ltd. should look into the matter very seriously.

Bank should provide advances towards the true entrepreneur with reconsidering conventional system of security and collateral, moreover, the whole process should be completed within an acceptable time.


From the learning and experience point of view I can say that I really enjoy my internship at IFIC Bank of Bangladesh Ltd. From the very first day, I was confident that this 3 months internship program at IFIC Bank Ltd. of Bangladesh will definitely help me to realize my future carrier in the job market. Performance analysis of a department 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 use to with the operational environment of commercial banking of IFIC Bank. I have tried by soul to incorporate the research report with necessary relevant information in my report. Few loyal committed customer bases, lack of modern and effective technology or facilities, not enough skilled employees 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 winning 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.


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H.P. Collin “Dictionary of Banking & finance”(1996) universal book stall.

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Annual Report of IFIC Bank Ltd. 2008.

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