Deposit of RAKUB

Deposit is the most important factor of a bank. Because investment is made by bank from its deposit. It collects fund from the general people and invests in different sectors of economy. Deposits are considered to be the lifeblood for   a bank. Since the bank cannot run without deposit. Therefore, deposit management is the most important activity of a bank.

“Commercial Nationalized Banks are the heart of an important form of circulating medium, namely deposits; whose importance as a provider of ready cash through checking device grows with the development of the economy.” deposits are the life blood of banking industry accounting for about 98 percent of the bank liabilities. The other activities of banks are chiefly dependent upon deposits. The growth of deposits is an indication of the confidence reposed by depositors in the banking sector. 

Deposit is the most important source of ready to invest fund of the bank. Interest paid on deposits occupies the largest part of the bank’s total expenditure. For collecting fund the bank initiated special attention on

DEPOSIT                                                                                                                      CHAPTER FIVVE

collecting low cost deposit. Special guidelines were given in the workshops, camps and super camps for collecting deposit and maintaining liquidity. Rates of interest on deposits remained within 2.50 to 7.00 percent during the year under report

The bank gives importance to accumulation of rural small savings through its branches. RAKUB renders all sorts of deposit banking services to its over one million valued customers.

The bank operates deposit accounts like Savings Bank Accounts, Current Deposit Accounts, Short Term Deposit Accounts & Fixed Deposit Accounts.

6.1  There are different types of RAKUB’s deposits.

Type of Deposit Account	Interest rate
Savings Bank Account	4.00 percent
Short Term Deposit Account (STD)	2.50 percent
Current Deposit Account	0.00 percent
Fixed Deposit Receipt (FDR) Account
from 3 months to below 6 months	6.00 percent
from 6 months to below 1 year	6.25 percent
from 1 year to below 2 years	6.50 percent
2 years & above (not more than 5 years)	7.00 percent

DEPOSIT                                                                                                                      CHAPTER FIVVE

6.2    RAKUB have offered new more attractive schemes as below-

Education Savings

Hajj Savings

Rural Pension Savings

Attractive New Savings Schemes:

6.4   HOW MUCH HAVE THE RAKUB DEPOSIT

The bank secured deposit of Tk 785.34 million against annual target of Tk1500.00 million. Deposit as on 30 June 2005 amounted to Tk 11566.03 million and number of depositors reached 1,108,970.

Table 6: Deposit mix on 30 June 2005

			Tk million
Type of deposits	As on 30 June 2005		As on 30 June 2004
	Number	Amount	Number	Amount
Current	22708	1082.10	18195	767.98
Savings	816016	2187.33	735300	1933.27
Fixed	17239	4026.50	17310	4633.76
DPS	1911	145.50	8502	599.19
Other	251096	4124.60	258245	2886.14
Total	1108970	11566.03	1037552	10820.34

DEPOSIT                                                                                                                      CHAPTER FIVVE

Table 7: Year wise position of deposit

Financial year	Initial balance	Target	Actual achievement excluding interest	Balance at the end of the year including interest
1998-99	3195.59	1100 00	173.60	3675.89
1999-00	3675.89	1100 00	1018.38	5051.94
2000 01	5051.94	1210 00	1182.74	6702.88
2001-02	6702.88	1400 00	1754.06	9052.10
2002-03	9052.10	1500 00	1289.77	10658.21
2003-04	10658.21	1700 00	162.10	10820.34
2004-05	10150.58	1500.00	785.34	11566.03

6.8  Deposit collection and Mobilization:

Like all other commercial Bank, RAKUB, L.P.O. collects deposit. As we know that the banks deal with other people money, therefore the more deposit it cam collect, the better will be it investment and earnings. The following information will show us the types of accounts, No of Account holder and the total of deposit collected by L.P.O. on the basis of fiscal year.