Internship report on “Banking system in practice of Southeast Bank Limited”
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Bank is a depository financial institution that accepts deposits and channels the money into lending activities. In the modern world, banking sector plays a vital role in the economic development of a country. Over the past ten years banking system becomes accustomed to accepting the rapid pace of changes in terms of products and services. Southeast Bank Limited has a long and relishing heritage. It is a second generation Bank which was established in 1995 with a vision to stand out as a pioneer banking institution in Bangladesh and contribute significantly to the national economy. It was established under Companies Act, 1994 on March 12, 1995. The Bank and its first branch at the busiest commercial hub of the country at 1 Dilkusha C/A, Dhaka and now at Eunoos Trade Centre (Level 1-3, 16), 52-53,Dilkusha Commercial Area, Dhaka was opened on May 25, 1995. The 53 branches of SEBL are operating in Bangladesh. Bank performs basically two functions i.e. General Banking function and Loans & advances function including foreign exchange. The General banking services of SEBL includes taking of deposits in the form of Current Deposit Account, Savings Bank A/C, Special Savings Deposit Account, Short Term Deposit A/C, Fixed Deposit Receipt. In the inland remittance section it issues TT, P0, DD, etc. It provides any branch online banking facility. It also includes cash section, IT section, Clearing section, dispatch section. Lending is by far the most significant function of modern banks. The profitability of a bank always depends on the proficient manner and the avenues in which its resources are employed to yield the maximum income. Lending to the customers helps for development of trade, commerce, industry and agriculture. The financial statements for 2009 bear testimony of the Bank’s excellent performance and sound health. The dedication of a visionary management team along with its highly professional and experienced workforce operating under the guidance of a learned and prudent Board have made 2009 a successful year for the Bank. The Bank generated an operating profit of Tk.4,614.66 million in 2009 against Tk.3,012.58 million in 2008 showing a remarkable annual growth of 53.18%. In 2009, the Bank mobilized deposits of Tk.96,669.05 million, and loans and advances of Tk.77,497.57 million which posted an annual growth of 41% and 29% respectively over 2008. Imports grew by 20% to Tk.69,582.92 million, export by 11% to Tk.46,724.47 million and foreign remittance by 56 % to Tk.23,800.00 million. During the period of last 5 years (2005-2009) the Ban achieved an average annual growth of 28% in deposits, 29% in loans and advances, 52% in exports, 29% in imports and 110% in foreign remittances. This year the Bank’s profit per branch and profit per employee was the highest among our peer banks. In 2009, total assets reached Tk.112,676.98 million from Tk.81,181.53 million of 2008 reflecting 38.80% growth. Earning per Share (EPS) stood Tk.54.64 in 2009 as against Tk.31.11 in 2008 depicting 75.63% growth. Return on Asset (ROA) and Return on Equity (ROE) are 1.66% and 16.51% showing annual growth of 52.29% and 36.90% respectively. Southeast bank has some shortcoming. They should have try to come out from the traditional thinking like-fewer advertising actions, a small number of commercial locations of ATM Card, scarcity of human resources, staff dissatisfactions regarding bonus, motivation & promotion. In addition of all these shortcomings the operating surroundings of the bank is improving every day. How ever, Southeast Bank limited is unique in its objectives. The bank is concentrating activities in its area of specialization has achieved good market reputation with efficient customer service. Southeast bank limited pledges to maximize customer satisfaction through services and build a trusting relationship with customer, which has stood the test of time for the last couple of year.
- Project Report of BBA