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 Nationalization 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 Modernization Project (EGBMP) which has been taken in 2004-05 in order to reform the nationalized commercial banks. Janata Bank Limited has started its operation from November 15, 2007.
The management of the bank lies on a 8-member board of directors. The government appoints the board of directors and the executive head is managing director & chief executive officer (CEO). He is assisted by 2/3 deputy managing directors, 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. However, there are also same general managers who work as the head of the major departments at the head office. 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 programs and off-balance sheet activities. Salary disbursement of different government organizations and food grains procurement process unit are included in bank’s agencies services. Loans and advances are disbursed not only to business community and industrialists but also 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 organizations 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, finances through its Industrial Credit Division, 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 labor 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 a 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:
Poverty Alleviation and Job Creation Small farmer and landless labor development project, self-dependent credit project, co-operative credit project, multilateral credit programme, household/family-based small credit, credit for crop go down and marginal and small firm credit programme.
Specialized 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.
Entrepreneur Development Credit Programme Women entrepreneur development loan, cybercafé loan, doctor’s loan and small business development loan.
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 center. 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 from 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. Following the success of previous year, strategy of 2021 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 ISLAMIC 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.
Basic Facts and Economic Indicators (In Million Taka)
| Indicators | 2018 | 2019 | 2020 |
| Authorized Capital | 30000 | 30000 | 30000 |
| Paid up Capital | 23140 | 23140 | 23140 |
| Reserved Fund | 31416.4 | 18924.7 | 29027 |
| Deposits | 67548 | 691409.4 | 824008 |
| a) Call Deposits | 96186 | 105949.5 | 10104 |
| b) Term Deposits | 579362 | 585469.9 | 813904 |
| Loans and Advances | 533707 | 548473.9 | 604950 |
| Investment | 166783 | 190816.3 | 274203 |
| Total Asset | 866046 | 892471.1 | 1043311 |
| Total Income | 50705 | 49958.9 | 54381 |
| Total Expenditure | 40916 | 42883.2 | 44764 |
| Foreign Currency Trading | 41172.7 | 383887.5 | 357439 |
| a) Export | 114681 | 17398.2 | 93006 |
| b) Import | 220413.7 | 210957.2 | 186289 |
| c) Remittance | 76078 | 75532 | 78144 |
| Total manpower | 11849 | 11851 | 11483 |
| a) Officers | 9513 | 9833 | 9672 |
| b) Staff | 2256 | 2018 | 1811 |
| Correspondent Banks | 525 | 520 | 501 |
| Total Branches (in numbers) | 913 | 915 | 916 |
| a) Domestic | 909 | 911 | 912 |
| b) Overseas | 4 | 4 | 4 |
| Agriculture Credit | |||
| Loan Disbursed | 9872.7 | 5289.2 | 6564.8 |
| Realised | 9047.9 | 5168 | 6087 |
| Industrial Credit | |||
| Loan Disbursed | 59096 | 40265.9 | 13056.8 |
| Realsied | 13300 | 31614.8 | 10891 |
| Loan Outstanding by Sector | |||
| Agriculture and Fisheries and Forestry | 21065.7 | 21186.9 | 19118 |
| Industry | 161453.2 | 163996.4 | 104675 |
| Trade and Commerce | 185850.4 | 1343366 | 310252 |
| Poverty Reduction | 0 | ||
| CSR | 13.2 | 1.5 | 16 |
Source Government of Bangladesh, Ministry of Finance, Banking and Financial Institution Division, Barshik Protibedon [Annual Report on Banks and Financial Institutions], 2019-20 and 2020-21.
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 SA-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 information’s 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.
In 2019, bank deposits accounted for 5.4 per cent of total banking sector deposits and loans and advances accounted for 5.0 per cent of total banking sector loans and advances. The average interest rate differential between June 2019 based deposits and loans and advances was 3.1 percent. [Muhammad Abdul Mazid]
