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Janata Bank Limited

Janata Bank Limited is the second largest state owned commercial bank of the country. Janata Bank Limited was formed combining the then United Bank Limited and Union Bank Limited under the Bank Nationalisation Ordinance of 1972 (President's Order 26). The management of Janata Bank has been transferred to Janata Bank Limited after transforming the bank into a company following the existing company act under the Enterprise Growth and Bank Modernisation Project' (EGBMP) which has been taken in 2004-05 in order to reform the nationalised commercial banks. Janata Bank Limited has started its operation from November 15, 2007.

The management of the bank lies on a 12-member board of directors. The government appoints the board of directors and the executive head is managing director and chief executive officer (CEO). He is assisted by one deputy managing director, six general managers and other higher executive officers. The general managers are in charge of six administrative divisions of the country Dhaka, Chittagong, Rajshahi, Khulna, Sylhet' and Barisal. There are 27 divisions of Janata Bank Limited including 1 training institute at its head office.

Other than deposit collection and development in all fields of economy, the bank provides various welfare programmes and off-balance sheet activities. Salary disbursement of different government organisations and food procurement process unit are included in bank's agencies services. Loans and advances are not only disbursed to business community and industrialists but also disbursed to almost all professionals. The bank also gives credit facilities to agricultural and other priority sectors besides business and industry. Responsibility of disbursing government contribution of salary to the teachers of schools, colleges, madrasahs and other government and non-government educational organisations are within the framework of the bank services. The bank is jointly involved with certain NGOs for poverty alleviation programme. The fields that Janata Bank Limited, through its Industrial Credit Division, finances are garments (local and export oriented), food processing, production of fodder, infrastructure development, paper, medical hospitals and pharmaceuticals industry, heavy industry, information technology and telecommunication, power generation, fertilizer, leather and cement.

The government has set a goal to make the country a middle income one by reducing the poverty to half and rapid expansion of small and medium enterprises (SMEs) within 2015. Realizing the fact that there is no alternative of setting up small and medium industries for employment and poverty alleviation of the people, the government set goal for labour intensive and employment-oriented economic development under Poverty Reduction Strategic Paper (PRSP) and Industrial Policy 2005. As a development partner of the government, Janata Bank Limited is playing a vital role in establishing industries in SMEs in creating jobs and in enhancing GDP growth. Janata Bank Limited has disbursed taka 5859 million in 4539 projects of small, medium and Cottage Industries. It is playing pioneering role in financing in SMEs. The financing SME sectors are composite textile, composite knitting, spinning, weaving and finishing and dying, LPG, artificial flower production, flower cultivation, export-oriented leather goods, export-oriented jute goods, electronics and electrical products, computer software and information technology, ceramic, melamine, tiles and glass mirror, small power plant, plastic and plastic goods, CD, health, education, service and hotel, aluminum products, processing and marketing of ducks, chickens, goats, sheep and cows meat, farming of ducks, chicken and fish, hatchery and feed mill, production of food and food products, printing and packaging, chemical and pharmaceuticals, production, processing and marketing of milk, handicrafts and cottage industries, production and processing of tea, producing and marketing of organic and composed' fertilizer and guti urea, production of insecticide and bio-pesticide.

Beside this, the bank also grants SME loans if any project/business appears to be prospective within the framework of government's industrial policy.

The bank is directly financing in different agricultural sectors including production of seasonal crops, fish cultivation, farming of chicken and ducks, cattle and horticulture in 1299 unions through its 555 branches. The credit policy has been reformed to facilitate loan to all levels of rural people for their easy access to the rural credit. In 2008 Taka 6550 million was allotted for increasing the credit flow in the rural areas and out of the allocation Taka 5878 was distributed. The following operations are going on under the programme:

Basic facts and economic indicators (in million Taka)

Indicators 2004 2005 2006 2007 2008 2009
Authorised Capital 8000 8000 8000 8000 8000 20000
Paid up Capital 2594 2594 2594 2594 2594 5000
Reserve Fund 1293 1296 1726 2956 4182 8839
Deposits 151035 168895 182946 196755 218902 240919
(a) Call Deposit 71871 80547 88205 25591 46253 50656
(b) Term Deposit 79164 88348 94741 171164 172649 190263
Loan & Advances 107786 123546 138492 121204 144678 166359
Investment 28375 29168 24785 55863 57824 72533
Total Asset 169030 188166 212664 243088 267157 296894
Total Income 10935 13148 16272 18522 20922 24074
Total Expenditure 8622 9847 12059 13560 13919 15495
Operation of Foreign Currency Business 153874 157880 228972 192708 260755 263368
(a) Export 54623 58395 70896 71855 85418 88653
(b) Import 74920 72912 128809 84065 129413 118525
(c) Remittance 24331 26573 29267 36788 45924 56190
Total Manpower (In number) 15705 15321 14772 13860 13379 13122
(a) Officers 8003 7856 7490 7304 7214 7667
(b) Staffs 7702 7465 7282 6556 6165 5455
Foreign Corresponding Banks (In number) 1120 1125 1129 1198 1202 1208
Branches (In number) 847 847 848 848 849 851
(a) In Bangladesh 843 843 844 844 845 847
(b) In Foreign countries 4 4 4 4 4 4
Agriculture sector
(a) Loan disbursed 9960 11456 382 3057 2860 2443
(b) Recovery 5976 6870 3580 2503 2100 1167
Industrial Sector
(a) Loan disbursed 15417 17720 2668 2005 3311 9295
(b) Recovery 4541 5215 2354 1723 2035 6437
Sector-wise Loan Position
(a) Agriculture & Fisheries 4481 9171 6182 6222 6296 6543
(b) Industry 9485 14111 15708 14488 15690 15777
(c) Trade and Business 30294 55605 61449 49653 47330 67418
(d) Poverty Alleviation 1488 1270 2016 1998 2791 2643

Source Government of Bangladesh, Ministry of Finance, Banking and Financial Institution Division, Bank o Arthik Prothisthan Samuher Karjaboli [Annual Report on Banks and Financial Institutions], 2004-05 to 2008-09.

a) Poverty Alleviation and Job Creation: Small farmer and landless labour development project, self dependant credit project, co-operative credit project, multilateral credit programme, household/family-based small credit, credit for crop godown and marginal and small firm credit programme.

b) Specialised Credit Programme: Credit on flower cultivation and marketing, credit on nursery for herbal and wooden plants, credit facilities for disabled, credit on maize cultivation, professional loans, credit on hybrid cow farming and goat and sheep farming loan.

c) Entrepreneur Development Credit Programme: Women entrepreneur development loan, cyber cafe loan, doctor's loan and small business development loan.

d) Agro-based Industry Credit Programme: Chickens and ducks, fishes and milk and plants and hatchery loan, semi-intensive shrimp cultivation, cattle fattening, fodder production industry, food processing and setting up specialized cold storage.

Janata Bank scrutinizes its own activities with a self-compiled function-based performance budget and the bank also has a sales information centre. The bank also implements human resource development programme through training and motivation as well. The bank takes policy-related steps including credit risk analysis according to the guidelines of Financial Sector Reform Programme (FSRP). Fulfilling capital deficit, collecting huge deposit and investing the surplus resources in more profitable sectors were included in the policy adopted by the bank in 1990. As part of strategy of expanding the periphery of activities and increasing income form non-interest sectors, the bank has considerably expanded its activities in off-balance sheet sectors in last decade.

The bank has taken special initiative on professional and subject-related training for creating highly efficient manpower. In 2008 a total of 4458 officers and staffs were provided with training through 199 courses in order to develop human resources. In 2007 193 executives and officers participated in training courses/workshops/seminars at different government and non-government levels at home and abroad. Following the success of previous year, strategy of 2009 has been taken to propel the bank towards more advance level. Beside general banking, merchant banking unit has started functioning for investment in capital market in order to boost the activity of the bank. Initiative has also been taken to start islami banking. Expert management system of the bank has made it possible to expand volume of export business, earn more foreign remittance and make a remarkable profit from foreign exchange business. On the other hand it also helped to increase export business and reduce cost of fund.

Janata exchange company SRL, a complete sister concern of Janata Bank Limited with 100% ownership is operating smoothly at Rome and Milan in Italy to facilitate foreign remittance. These exchange companies have introduced Electronic Fund Transfer (EFT) system in order to transfer fund within 72 hours to the account of the drawee of any bank branch of the country. Besides, this EFT system is also linked with World Link Money Transfer S.A.-Greece. Measures have also been taken to introduce EFT system with other exchange companies to facilitate incoming remittance. Janata Exchange Company in Italy has already implemented remittance-related activities in Sri Lanka using the same software. SWIFT was introduced in 19 branches in home and abroad to ease and modernize foreign remittance and foreign exchange business. Four branches of this bank at Abu Dhabi, Dubai, Sharjah and Al-ain in the UAE are providing the customers with fully computerized and on-line banking service.

Computerization of Janata bank branches began in the year 1990. Already 135 branches including the important ones of the bank have been brought under computerization through Local Area Network (LAN). Presently a mega scheme of computerization of 212 branches has been taken using on-line system. At present a IT Investment Plan exists in the bank. According to the plan activities of bringing 235 important branches under on-line banking system are in initial stage.

Since the year 2000 customers are enjoying Shopping I Utility Bill Payment facilities using Ready Cash Card (Debit Card) introduced by the bank. At present both Credit Card and ATM Card remain operational.

Janata Bank launched its website in 2000 having the address www.janatabank-bd.com. Important informations of the bank including employment advertisement and tender and auction notices are being regularly updated at the website. Internet banking system has been included at Janata Bank website in 2001 and it is functioning through Janata bhaban corporate branch. E-mail address of divisional offices, area offices, regional offices, important branches and different departments of head office are being updated at the bank's website.

The bank earned London-based The Banker Award every year from 2001-2005 and also achieved Asian Banking Award in 2004 and 2005. Moreover, Janata Bank Limited earned International Trade fair Award trophy in 2005. New York-based Financial Magazine Global Finance awarded Janata Bank in 2006 and 2007 as the best bank of Bangladesh. In 2008 Global Finance and Singapore-based Financial Magazine The Asian Banker selected Janata Bank Limited as the best bank of Bangladesh. [Muhammad Abdul Mazid]