Analysis of Commercial Banking Industry & Janata Bank Ltd. Bangladesh: An Internship Experience perspective

Abstract

The report begins with an analysis of Bangladesh's banking sector. Then, the organizational analysis of Janata Bank Limited and, finally, the internship experience and the learning experience are covered in the report. Different type of activities is happing within every banking industry. They are working in accounting opening section to help their customer about opening any account to start a new business with bank. They have remittance segment where that is an exchange of cash by an unfamiliar specialist to a person in their nation of origin. It has an extraordinary effect in a nation's economy. They are also working in cash segment as monetary foundations to develop the economic condition of the country. Commercial banking industry is providing loan, doing import-export and gain profit from those sector that are the contribution from them in our economy. The activities of the overall banking industry I have tried to describe here. This report has three objectives, those are: ✓ To analyze the commercial banking industry in Bangladesh ✓ To analyze and present the strategic condition of Janata Bank Ltd. ✓ To describe internship experience at Janata Bank Ltd. This report is significance for us, for the management of Janata bank, for those companies is participated in this banking industry and also significance for the policy maker. The analysis of the banking sector begins with the specification of the industry, including the type of banks. Next, I have discussed the history, size and maturity of the Bangladeshi banking sector. The banking sector of Bangladesh is mainly two types one is scheduled bank that acquire license to operate under bank company act, 1991(Amended up to 2013). Another one is non-scheduled bank that is established for special and definite objective and operate under the acts that are enacted for meeting up those objectives. At the beginning of 1971, 12 banks and 1,130 branches operated in East Pakistan. The basis of the independent banking system in Bangladesh was established in 1972 with the establishment of the Bangladesh Bank, the former National Bank of Pakistan, with the Bangladesh Bank and as a whole at the Central Bank Office in Dhaka, Bangladesh. Bangladesh's banking sector is relatively large compared to many economies with similar levels of development and per capita income. The financial system is dominated by the total volume of the sector, which represents 26.54% of GDP. There also a part of non-Bank Financial Institutions (FIs) that is kinds of monetary organizations which are managed under the Financial Institutions Act, 1993 and constrained by Bangladesh Bank. The main seasonal pattern for the banking sector is the annual threshold from the end of January to February, followed by a surge in credit that starts in March and lasts until May, generally summit toward the beginning of June that is under the seasonality of the banking industry in Bangladesh. The report also discusses external economic factors to help you understand the fierce competition and attractiveness of the industry. In this part I have discussed about recession that will give an idea about how the present global situation effect in banking industry. Pandemic situation, war of Russia-Ukraine are the cause for declining deposits, opening letter of credit and makes huge negative effect in our banking industry. Inflation affects the currency value that’s why banking industry suffers a lot. Inflation also reduces purchasing power High interest rates paralyze business, reduce lending and ultimately reduce investment. Technical factors play an important role in the banking sector. Banks now use e-mail to send documents from one branch to another, reducing paper consumption, so we don't have to send as much paper as we copy manually. Political Factors contains defilement among ideological groups, or explicit regulative regulations like work regulations, exchange limitations, duties, and political dependability. The Banking business sector maintains legitimate regulations concerning protection, customer regulations, and exchange development to affirm structure inside the business. Different obstacles are like trust, individuals keep more confidence in notable large banks that have major shares in the market since this industry manages individuals' cash and monetary truth are the cause of barriers to entry for banking industry. Then, the organizational analysis section begins with an overview of the JanataBank Limited history. Next, Zanata Bank's trends and growth are explained on the basis of the size of the deposit, the net income after tax and the earnings per share. The report also covers Janata Bank products, customer base and operations. After performing the SWOT analysis Janata Bank's main strength is its large customer base, its weaknesses are lack of technical resources, expertise and management knowledge, and threats are new from privatized banks and from foreign banks. During my internship, I work mainly in a general banking and learn banking terminology, policies and procedures. I learned about communication, interpersonal skills, teamwork and hands-on experience. I also find ways to improve in this real professional experience. Relevant conclusions of this report become completed.