Foreign Exchange Activities of EXIM Bank Limited

Main purpose of this report is to analysis Foreign Exchange Activities of EXIM Bank Limited. Other objectives are to know about the Previous and present banking system of EXIM Bank Bangladesh. Report also analysis strengths and weakness of EXIM in comparisons with the Competitors. Finally overall discussion present various observation and suggestions to the bank. The report covers its overall department wise function, structure and performance.

Introduction                             

Bank is very old institution that is contributing toward the Development of any economy and is treated as an important Service industry in the modern world. Economic history shows that development has started everywhere with the banking system and its contribution towards financial development of a country is the highest in the initial stage. Modern banks play an important part in promoting economic development of a country. Bank provides necessary funds for executing various programs in the process of economic development. They collect savings from large masses of people scattered throughout the country, which in the absence of banks would have remained ideal and unproductive. These scattered amounts are collected, pooled together and made available to commerce and industry for meeting the financial requirements.

Economy of Bangladesh is in the group of world’s most underdeveloped economies. One of the reasons behind this may be its underdeveloped banking system. Government as well as different international organizations have also identified that underdeveloped banking system causes some obstacles to the process of economic development. So they have highly recommended for reforming financial sector. Since 1990, Bangladesh Government has taken a lot of reform activities to ensure high economic growth. In 1996, World Bank published “Bangladesh: Agenda for Action” in which it has suggested lots of recommendations for economic development of our country. These recommendations include special presentation for reforming banking sector.

Bank plays a vital role in the economy by providing means of payment and in mobilizing resources. Bank is the most important financial institution in the economy. The economic development of a country depends on the development of banking sector. Today’s modern banks are not only providing traditional banking but also expanding the many financial services. In today’s world the life of the people directly or indirectly are within the arena of banking whether conventional or Islamic banking. Although Islamic banking is not a newer concept in Bangladesh as it has started its operation since 1983, very few people are aware about its operation. But things are changing. Islamic Banking is also getting popularity in the country as well as all over the world.

Objective of the report

The objective of the study may be viewed as:

• General Objective
• Specific Objective

General Objective:                                                                     

This internship report is prepared primarily to fulfill the Bachelor of Business Administration (B.B.A) degree in Stamford University.

Specific Objective:

More specifically, this study entails the following aspects:

• To know about the Previous & present banking system of EXIM Bank Bangladesh ltd.
• To study strengths & weakness of EXIM in comparisons with the Competitors.
• To relate theoretical knowledge to practical experience in several functions of The Bank.
• To be acquainted with how bank perform with its operations.
• To present my observation and suggestions to the bank.

Historical Background of EXIM Bank Limited

Export Import Bank of Bangladesh Limited (EXIM Bank Ltd.), that was named before as Bengal Export Import Bank Limited (BAXIM Bank Ltd.) being newly formed commercial bank of the country. EXIM Bank Limited was established in 1999 under the leadership of Late Mr. Shahjahan Kabir, founder chairman who had a long dream of floating a commercial bank, which would contribute to the socio-economic development of our country. He had a long experience as a good banker. A group of highly qualified and successful entrepreneurs joined their hands with the founder chairman to materialize his dream. In deed, all of them proved themselves in their respective business as most successful star with their endeavor, intelligence, hard working and talent entrepreneurship. Among them, Mr. Nazrul Islam Mazumder became the honorable chairman after the demise of the honorable founder chairman.

This bank starts functioning from 3rd August 1999 with Mr. Alamgir Kabir, FCA as the advisor and Mr. Mohammad Lakiotullah as the Managing Director. Both of them have long experience in the financial sector of our country. By their pragmatic decision and management directives in the operational activities, this bank has earned a secured and distinctive position in the banking industry in terms of performance, growth, and excellent management.

The authorized capital and paid up capital of the bank are Tk.1000.00 million and Tk.313.87 million respectively. The Bank received the certificate of incorporation no. C37864 (2164)/99 under the company’s Act (Act-xvill) of 1994. It also received the certificate for commencement of business on the same date by the section 150(2) under company’s Act. Apart from the Head Office in Dilkusha C/A, it started its first local branch in Motijheel C/A simultaneously in order to provide all kinds of banking support to the clients. On the second December of 1999 they opened their second branch in Panthapath. At present the bank has 19 branches across the country. It renders all types of commercial banking operations to its customers within the purview of the Bank Companies Act, 1991 and in line with the directives and policy guidelines laid down by Bangladesh Bank. Late Mr. Shahjahan Kabir, founder chairman who had a long dream of floating a commercial bank, which would contribute to the socio-economic development of our country. He had a long experience as a good banker. A group of highly qualified and successful entrepreneurs joined their hands with the founder chairman to materialize his dream. In deed, all of them proved themselves in their respective business as most successful star with their endeavor, intelligence, hard working and talent entrepreneurship. Among them, Mr. Nazrul Islam Mazumder became the honorable chairman after the demise of the honorable founder chairman.

In its 6’h year of operation, 2005, EXIM Bank has made substantial headway in terms of business growth, profitability and establishing its image as one of the leading private sector bank. From I” July of 2004 EXIM has become Shahriah Based Islami Bank and from then on they are rendering banking services according to the Shariah banking. For smooth operation of their activities they have established a Shariah Board, which will decide about the rules and regulation according to which EXIM would operate its business. This change is the joint result of the change in the belief of the owner and the increasing demand of Islamic Banking amount the customers. Although this is a significant change and requires a substantial amount of adjustment EXIM march towards reaching grater heights in operation continues with full vigor and enthusiasm.

Vision of EXIM Bank Limited:

Export Import Bank Of Bangladesh Limited as the name implies, is not a new type of bank in global but is the first in Bangladesh. It believes in togetherness with its customers, in its march on the road to growth & progress with services. To achieve the desired goal, it has intention to pursuit of excellence at all stages with a climate of continuous improvement. Because it believes, the line of excellence is never ending. It also believes that its strategic plans & business networking will strengthen its competitive edge over in rapidly changing competitive environment. Its personalized quality services to customers with the trend of constant improvement might be cornerstone to achieve its operational success.

Mode of EXIM Bank- “Local Bank Global Network”

The word EXIM implies the meaning its operations. Though it is a new type of bank in Bangladesh, it is familiar with so many countries in the World such as Export Import Bank Of United States, Export Import Bank of Japan. Despite it is a local bank, it has spread of its operation in the whole world through foreign banking. Its motto is to provide quality services to the customers all over the world. So the mode of the bank “Local Bank Global Network” is completely adjustable with operation.

Corporate Culture

This bank is one of the most disciplined Banks with a distinctive corporate culture. Here they believe in shared meaning, shared understanding and shared sense making. Their people can see and understand events, activities, objects and situation in a distinctive way. They mould their manners and etiquette, character individually to suit the purpose of the Bank and the needs of the customers who are of paramount importance to them. The people in the Bank see themselves as a tight knit team/family that believes in working together for growth. The corporate culture they belong has not been imposed; it has rather been achieved through their corporate conduct.

Mission of EXIM Bank Limited:

• Provide high quality financial services in export and import trade.
• Provide excellent quality Customer service.
• Maintenance Corporate and business ethics.
• Become trusted repository of customers’ money and their financial advisor.
• Make their stock superior and rewarding to the customers/share holders.
• Display team spirit and professionalism.
• Sound Capital Base.
• Enhance shareholders wealth.

STRATEGIES of EXIM Bank Limited

The business of banking consists of borrowing and lending. As in other businesses operations must be based on capital, but banks employ comparatively little of their own capital in relation to the total volume of their transactions. The purpose of capital and reserve accounts is primarily to provide an ultimate cover against losses on loans and investments.

Hence there are readily insurance agents who are mostly there to assure the prospective customers as to how they can restore themselves should there be any losses. Furthermore deposit they have to gather within a given span of time. Now that, to some extent assures the constant inflow of cash. Most importantly, the contracts of the bank Manager, and the Senior Vice President mostly assure highly valued corporate clients to make deposits and in return the bank is benefited. It is mainly a familial management style that prevails in the corporate climate of EXIM Bank, as rather than strictly being a bureaucratic organization.

This bank gives the employees the flexibility to open up their minds in cases of discrepancies and they are always been heard and looked after.

PRODUCT Information of EXIM Bank

1. Mudaraba Deposit Account (RFCD, NFCD)
2. Mudaraba Monthly Saving Scheme- Money Grower
3. Mudaraba Monthly Income Scheme- Steady Money
4. Mudaraba Super Savings Scheme- Double in 6 years
5. Mudaraba Multiplus Savings Scheme- More than triple in 10 years
6. Mudaraba Education Savings – For higher education
7. Mudaraba Hajj Prokalpa
8. Mudaraba Credit Cards
9. Foreign Currency Deposit Account
10. Corporate Finance
11. Commercial Finance
12. Industrial Finance
13. Project Finance
14. Lease Finance
15. Syndicate Finance
16. Hire Purchase Finance
17. Real Estate Finance

1. Mudaraba Deposit Account (RFCD, NFCD)

The main objective of this account is to provide convenience to the customers in their savings. This account allows the customer to deposit his/her surplus money as and when available and receive lucrative profit on the same. The customer can deposit any sum desired at any time of the operational hours in this account.

2. Mudaraba Monthly Saving Scheme- Money Grower

The first and foremost objective of this scheme is to encourage people to build up a habit of savings. Under this scheme, one can deposit monthly a fixed amount of money regular and will receive a substantial amount with handsome benefit after maturity of reasonable period/tenure.

3. Mudaraba Monthly Income Scheme- Steady Money

It is an alluring and commonly accepted scheme of EXIM Bank as an investment of steady monthly return. Under this scheme, the depositor is allowed to deposit at least Tk.1, 00,000/- or its multiple amount for 3(three) years and in return he/she will receive profit on monthly basis at an attractive rate. This scheme mainly has been drown up as well as introduced for the benefit of middle-income group, practically retired personal.

4. Mudaraba Super Savings Scheme- Double in 6 years

Mudaraba Super Savings Scheme is offered for all classes of people, specially for the middle class, where the depositor is allowed to deposit at least Tk. 5,000/- or its multiple amount for 6(six) years and at the maturity of the account, deposited amount will be stood at more than double.

5. Mudaraba Multiplus Savings Scheme- More than triple in 10 years

Under this scheme, the depositor is allowed to deposit at least Tk.5,000/- or it’s multiple amounts for 10(ten) years and at the maturity of the account, it will be arrived at more than triple of his/her deposited amount. Moreover, the depositors may avail themselves of investment facility under above-mentioned schemes, by meeting easy terms and condition in regard to scheme(s), as the case may be.

6. Mudaraba Education Savings – For higher education

With a view to assisting the customer for higher education, EXIM Bank has introduced this scheme with convenient terms & conditions.

7. Mudaraba Hajj Prokalpa

In view of smooth arrangement for performing Hajj, EXIM bank has introduced this scheme under the tenure of 5, 8, 10, 15 & 20 years with nominal amount of deposit per month.

8. Mudaraba Credit Cards

This service is introduced for the utmost convenience of the customers in paying for their purchase of commodities. The customer is allowed to avail credit purchase through this card and enjoy compensation free payment within a certain period as long as 50 days.

FOREIGN EXCHANGE ACTIVITES

Introduction

Foreign exchange is the means and methods by which rights to wealth in a country’s currency are converted into rights to wealth in another country’s currency. When we talk of foreign exchange, we refer to the general mechanism by which a bank converts currency of one country into that of another. Foreign Exchange Department (FED) of Bangladesh Bank is the international department which issues license to scheduled banks to deal with foreign exchange. These banks are known as Authorized Dealers. If the branch is authorized dealer in foreign exchange market, it can remit foreign exchange from local country to foreign countries. EXIM Bank Limited, Principal Branch is an authorized dealer.

Foreign exchange transaction:

There are three kinds of foreign exchange transaction:

1. Import
2. Export
3. Remittance.

IMPORT:

Import may be defined as bringing of visible item to the country from abroad through letter of credit or the Authorization form (LCAF) paying foreign Currency to that of exporting country.

To import, a person should be competent to be an importer. According to Import and Export Control Act, 1950, the Office of Chief Controller of Import and Export (CCI & E) provides the registration (IRC) to the importer. In an international business environment, buyers and sellers are generally unknown to each other. So seller of goods always seeks security for the payment of his exported goods. Bank gives export guarantee that it will pay for the goods on behalf of the buyer if the buyer does not pay(willingly or unwillingly). This guarantee is called Letter of Credit. Thus the contract between importer and exporter is given a legal shape by the banker by `Letter of Credit’.

Imports of goods from Serbia, Montenegro and Israel or goods originated from these countries & on Flag Vessels of those are prohibited. Import Policy of the Govt. is embodied in the Import Policy order issued by the Govt. The CCI & E announces the Import Policy covering various aspects of imports during the relative shipping periods.

Letter of Credit:

Definition: A letter of credit is a letter issued by a bank (know as the opening or the issuing bank) at the instance of its customer (known as the opener) addressed to a person (beneficiary) undertaking that the bills drawn by the beneficiary will be duly honored by it (opening bank) provided certain conditions mentioned in the letter gave been complied with.

Classification of L/C:

• Revocable Credit
• Irrevocable Credit
• Transferable Credit
• Restricted Credit
• Red Clause Credit
• Green Clause Credit
• Confirmed Credit
• Divisible Credit
• Back to Back Credit
• LC without resource Credit
• LC with resource Credit
• Revolving Credit
• Anticipatory Credit

Revocable Credit:

A revocable credit is a credit which can be amended or canceled by the issuing bank at any time without prior notice to the seller.

Irrevocable Credit:

An irrevocable credit constitutes a definite undertaking of the issuing bank (since it can not be canceled without the agreement of all parties thereto). Provided that the stipulated documents are presented and the terms and conditions are satisfied by the seller. An irrevocable credit can be either confirmed or unconfirmed depending on the desire of the desire of the seller. Thus sort of credit is always preferred to revocable letter or credit.

Revolving Credit:

The revolving credit is one, which provides for resorting the credit to the original amount after it has been utilized. How much time it will be taking place must be specifically mentioned in the credit? The revolving credit may be either cumulative or non­cumulative.

Transferable Credit:

A transferable credit is one that can be transferred by the original beneficiary in full or in part to one or more subsequent beneficiaries. Such credit can be transferred once only. Fractions of a transferable credit can be transferred separately, provided partial shipments are not prohibited.

Back to Back Credit:

The back to back credit is a new credit opened on the basis of an original credit in favor or another beneficiary. Under back to back concept, the seller as the beneficiary of the first credit offers it as security to the advising bank for the issuance of the second credit. The beneficiary of the back to back to back credit may be located inside or the out side the original beneficiary’s country.

Anticipatory Credit:

The anticipatory credits make provision for pre-shipment payment to the beneficiary in anticipation of his effecting the shipment as per L/C conditions.

Red Clause:

When the clause of the credit authorizing the negotiating bank to provide pre-shipment advance to the beneficiary is printed typed in red, the credit is called “Red Clause letter of credit”

Parties to the L/C:

Operational Procedure o f Import in EXIM BANK

Import procedure of EXIM Bank

As per Import Control Act-1950 no person can indent, import or export any goods into Bangladesh except in case of exemption issued by the Government of the peoples Republic of Bangladesh. So for doing import business at first every importer should obtain Import Registration Certificate.

Procedure for obtaining IRC

Through public notice or import policy the chief controller of import and exports invites application usually for registration of importers. The following documents are required to submit for getting Import Registration Certificate.

• Application form
• National Certificate
• Income tax registration certificate with TIN
• Trade license
• Membership Certificate
• Partnership Deed(for partnership firm)
• Certificate of registration with the register of joint Co. & Articles and Memorandum of Association in case of limited company
• Bank Certificate

The nominated of the applicant will examine the documents and verify the signature of the applicant and forward the same to the concerned office of the CCI&E with a ford wing schedule in duplicate through bank representative. The duplicate copy of the same bearing the acknowledgement of CCI & E office of the receipt of the document is received by the bank and is preserved.

Operational Procedure o f Export in EXIM BANK

Export procedure of EXIM Bank

As per Exhort Control Act-1950 no person can indent, import or export any goods into Bangladesh except in case of exemption issued by the Government of the peoples Republic of Bangladesh.

Export procedure of EXIM Bank

Export is one of the important activities that can increase economic and social well being through transaction of goods and services from domestic economic agents received payments, preferably in variable foreign currency. The important and export trade in our country is regulated by the important and export (control) Act, 1950. There are some formalities, which an exporter has to fulfill before & after shipment of goods. The procedures are described in the following lines.

Registration from Chief Controller of Import & Export (CCI & E):

No person without registration granted by the chief controller of imports and exports shall anything into or out of Bangladesh except in case of exemption issued by the government. Under the export policy of Bangladesh the exporter has to get the valid Export Registration Certificate (ERC) from chief controller of Import and Export (CCI & E). The ERC is required to renew every year. The ERC number is to be incorporated on EXP form and other papers connected with exports.

Registration of Exporters

For obtaining Export registration Certificate, Bangladeshi exporters are required to apply to the controller of Import & Export in the prescribed from along with the following documents:

• Nationality and assets Certificates
• Memorandum and Articles of Association and Certificate of incorporation in case of limited company.
• Bank Certificate.
• Income Tax Certificate.
• Trade License etc.

Obtaining EXP

After getting ERC the export applies to EXIM (or any other commercial bank) with trade license and if the bank is satisfied, an EXP issued to the exporter. Securing of Order: After getting the ERC the exporter may proceed to secure the export order. He can do this by contracting the buyers directly through correspondence. In this purpose exporter can get help from:

• Liaisons Offices
• Buyers Local Agent
• Export Processing Organization
• Bangladesh Mission Abroad
• Chamber of Commerce
• Trade Fair etc

Signing the Contract

While making a contract for sale, exporter should ask the buyer for letter of credit clearly stating terms and conditions of export and payment. The following are the main points to be looked into for receiving/collecting export proceeds by means of Documentary Credit:

• The terms of the L/C are in conformity with those of the contract.
• The L/C is an irrevocable one, preferably confirmed by the bank.
• The L/C allows sufficient time for shipment and negotiation.

Procuring the Materials

After making the deal and on having the L/C opened in his favor, the next step for the exporter is to set about the task of procuring or manufacturing the contracted merchandise. Shipment of goods:

• EXP Form
• ERC(valid)
• L/C copy
• Customer duty certificate
• Shipping instruction
• Transport documents
• Insurance documents
• Invoice Bills of Exchange
• Certificate of Origin
• Inspection Certificate
• Quality Control Certificate

Now exporter submits all these documents along with a letter of Indemnity to EXIM bank for negotiation, an officer scrutinizes all the documents. If the documents are clean, EXIM purchase the documents on the basis of banker customer relationship. This is known as foreign Documentary Bills Purchase (FDBP).

 Forwarding Foreign Bills of Collection

• If the documents have discrepancies.
• If the banker is in doubt.
• If the exporter is a new customer.
• Foreign Documentary Bill for Collection signifies that the exporter will receive payment only when the issuing bank gives payment.

 Import Documents Associates with Export

While negotiating export bills under the letter of credit, the officials of National Credit & Commerce Bank check the following documents to ensure:

• Letter of Credit
• Bill of Exchange
• Invoice
• Bill of lading
• Certificate of Origin

Export Financing

Exporters need finance in the following manner:

• Pre-shipment Finance
• Post-shipment Finance

Pre-shipment Finance

The exporters may avail of facilities during pre-shipment stage in the following ways:

Back -to-Back Letter of Credit

A Back-to-Back letter of credit is a new credit. It is different from the original credit based on which the bank undertakes the risk under the back-to-back credit. In this case, the bank’s main security is the original credit and the back-to-back credit are separate instruments independent of each other and in no way legally connected, although both are part of the same business operation. The supplies ships goods to the importer and present documents to the bank as is specified in the credit. It is intended that the exporter would substitute his own documents and ships the goods in the importer, if necessary and present document for negotiating under the original credit, his liability under the back-to­back credit would be adjusted out of these proceeds. The export L/C is marked lien and no margin is taken.

Documents that are required to submit at EXIM bank for the opening of a back-to-back L/C are given below:

• Master L/C.
• Valid Import Registration Certificate (IRC) & Export Registration Certificate (ERC).
• L/C application and LAC form duly filled up & signed.
• Proforma Invoice.
• Insurance cover note with money receipt.
• Duly signed IMP form.

Post-shipment Financing

Post-shipment credit is given to the exporters by banks after the actual shipment of the goods. The necessity for post shipment credit arises because the exporters who have shipped the goods have to wait for a long time for receiving payment from the overseas buyer; the period of waiting depends on the term of payment. The exporter needs funds to carry on his normal export activities. The bank is the natural source to seek the finance for these activities.

Bank generally finances the exports at post-shipment stage on verification of the credit­worthiness and financial soundness of both the buyers and the sellers.

Common Discrepancies

EXIM bank officials usually find the following discrepancies while checking the above mentioned documents:

• On board nation of in bill of lading undated.
• Shipment effected from port other than that stipulated in the credit.
• Full set of bill of lading not presented.
• Cutting / alternation in documents not authenticated.
• Certificate of origin not provided.
• Weighing certificate not presented.
• Credit amount exceeded.
• Credit (L/C) expired.
• Late shipment.
• Absence of signature.
• Packing list not submitted.
• Inspection certificate not submitted.
• Unit price not mentioned in invoice.
• Health certificate not submitted.

OPRATIONAL PROCEDURE OF RMITTANCE IN EXIM BANK

Remittance Section

EXIM Bank has 44 branches throughout the entire country and therefore, they serve as best medium for remittance of funds from one place to another. This service is available to both customers as well as non-customers of the Bank. The following are some of the important modes of transferring funds from one to another through a bank.

Function of the Remittance Section

• Handling of all incoming and outgoing foreign and local remittance is the major
• Function for this department.
• Handling of incoming and outgoing T.T.
• Outstation Cheque Collection.
• Outstation Cheque Purchase.
• Demand Draft Handling.
• Other assorted work.

Remittance of Fund

Remittance of fund is to be collected in two ways. First of all, it comes from inward basis and then, it happens outward.

Inward Remittance

Any person can remit funds to another through Inland remittance by using the following means of remitting funds with charges­

• Pay Order (PO).
• Demand Draft (DD).
• Telegraphic Transfer (T.T).
• Mail Transfers.

 Pay Order

A pay order is a written under, issued by a branch of the Bank, to pay a certain sum of money to a specific person or a bank. It may be said as to be a banker’s cheque as it is issued by a bank and payable by itself.

 Demand Draft (DD)

This is an instrument through which customers money is remitted to another person/Firm/organization in outstation (outside the clearing house area) form a branch of one Bank to an outstation branch of the same Bank or to a branch of another Bank (with prior arrangement between that Bank with the issuing branch).

 Telegraphic Transfer (TT)

A Telegraphic Transfer is a method of remittance, which is effected by the banker through a coded telegram attested by secret cheek signal, on receipt of which, the paying office pay the amount to the payee by crediting his account.

Foreign Remittance

Foreign remittance is the transfer of foreign currency from one country to another country. In another word, foreign remittance means, remittance in foreign currency that are received in and made out abroad. Actually, foreign remittance is purchase and sale of freely convertible foreign currencies as permissible under exchange control regulations of the country. Foreign remittance is very important for the country as valuable foreign exchange is involved in the transfer mechanism. Foreign remittance takes place in two ways-

• Inward
• Outward

 Foreign Remittance Process

Fund transfer from one country to another country goes through a process which is known as remitting process. Suppose a local bank has 200 domestic branches. The bank has corresponding relationship with a foreign bank say-“X”, and maintaining “Nostro Account” in US $ with the bank. Bangladeshi expatriates are sending foreign remittances to their local beneficiary, through that account. Now, when the Bangladeshi expatriates through other banks of different countries remit the fund to their “Nostro Account” with “X”, then the local bank’s Head Office international division will receive telex message and the remittance section will record the advice and generate the advice letter to the respective branch of the bank. The branch will first decode the test, verify signature and check the account number and name of the beneficiary. After full satisfaction, the branches transfer the amount to the account of the beneficiary and intimate the beneficiary accordingly. But some times the complexity arises, if the respective local bank has no branch where the beneficiary maintains his account. Then the local bank has to take help of a third bank who has branch there.

Inward Remittance

Remittance comes from foreign countries to our country is called inward remittance. To the bankers or ADs inward remittance means purchase of foreign currency by authorized dealers. Generally, inward remittances are received by draft, mail transfer, TT, purchase of foreign bills & travelers Cheque, export bills. Basically, these are the formal channels of receiving inward remittance. A local bank also receives indenting commission of local firm also comes under purview of inward remittance.

Outward Remittance

Remittance from our country to foreign countries is called outward foreign remittance. On the other word, sales of foreign currency by the authorized dealer or formal channels may be addressed as outward remittance. The authorized dealers must utmost caution to ensure that foreign currencies remitted or released by them are used only for the purposes for which they are released. Out ward remittance may be made by appropriate method to the country to which remittance is authorized. Most outward remittance is approved by the authorized dealer on behalf of Bangladesh Bank.

Outward remittance may be made for following purposes­

• Travel
• Medical treatment
• Educational purpose
• Attending seminar etc.
• Balance amount of F.C account.
• Profit of foreign companies.
• Technical assistance
• New exporters up to USD 6,000/- for business promotion
• C. remittance can be made for fare, exhibition from export retention quota.

SWOT ANALYSES

SWOT analysis is the detailed study of an organization’s exposure and potential in perspective of its strength, weakness, opportunity and threat. This facilitates the organization to make their existing line of performance and also foresee the future to improve their performance in comparison to their competitors. As through this tool, an organization can also study its current position, it can also be considered as an important tool for making changes in the strategic management of the organization.

Strengths:

The Narayangonj Branch of EXIM Bank has experience and self motivated personnel in foreign exchange devision.they are very much efficient and friendly to their customers.

As per bank policy EXIM Bank gives much more facilities to its valuable customers

• EXIM Bank Limited has already achieved a high growth rate. The number of deposits and the loans and advances are also increasing rapidly.
• EXIM Bank has an interactive corporate culture. The working environment is very friendly, interactive and informal. And, there are no hidden barriers or boundaries while communicate between the superior and the employees. This corporate culture provides as a great motivation factor among the employees.
• EXIM Bank has the reputation of being the provider of good quality services to its customers regarding export and import such as local documentary bills for collection (LDBBC) local documentary bills for purchase (LDBP)
• EXIM Bank, foreign exchange department has own license for foreign trading. For this reason, customers get their official formalities so easier. They would not wait for any longer.
• EXIM Bank opens L/C in a lower rate than other bank which has strengthened their foreign exchange activity.
• EXIM Bank foreign exchange communicate with foreign bank rapidly throughline.

Weakness:

Though it has one or two expertise in foreign exchange division, it is not sufficient for doing the desk work. For this reason client have to keep patient for official formalities.

• EXIM Bank foreign section is too rigid in case of document preparation; lodgment ant retirement captures other bank which some times dissatisfied clients.
• The service quality of foreign section is poor with regard to Multinational Banks located here.
• Corresponding network which is very essential in foreign trading is not so large.
• EXIM Bank that it is having a group of unsatisfied employees foreign exchange section.
• In terms of promotional sector, EXIM Bank has to more emphasize on that. They have to follow aggressive marketing campaign.

Opportunity:

Foreign exchange business hugely depends on political stability of a country. After 1/11 in Bangladesh there is a good existing position of EXIM Bank as compare with other bank.

• For getting higher market share in foreign exchange business, EXIM Bank has to be more efficient and swift in service.
• EXIM Bank has more opportunity to expand foreign exchange activity by spreading more branches in business area.
• EXIM Bank has to take the opportunity of globalization to increase foreign exchange activity.
• EXIM Bank can introduce some facility for foreign investor to invest.
• EXIM Bank has opportunity to diversify services for customers and lunch new service in market.

Threats:

All sustain and upcoming multinational, foreign and private banks pose enormous threats to EXIM Bank Limited.

• Foreign exchange performance of EXIM Bank is not out standing as compared with others competitors.
• EXIM Bank can open an information center for their import and export client.
• EXIM Bank has to provide special offer to attract new customers to increase their foreign activities as compared with other bank.

RECOMMENDATION:

EXIM Bank Limited is one of successful banks in Bangladesh. By this study I have gathered some practical knowledge about banking activities especially foreign exchange activities of Islamic Banking System. Policy guidelines have been established and will continue to be developed from time to time taking into consideration economic makeup and market requirement. If the limitations can be removed it will become more successful than at present. So, I would like to recommend the followings issues to remove its limitations:

• Foreign exchange department should be fully computerized that the exchange process would be convenient for both bankers and clients.

• IT facility of EXIM Bank is not satisfactory good. Computer system which owned by branch is not up to date.

• Internal conflict among foreign exchange employees should be mitigating.

• Foreign bank can provide foreign market reports which will enable the exporter to evaluate the demand for their products in foreign countries.

Conclusion

Lots of new commercial bank has been established in last few years and these banks have made this banking sector very competitive. So, now banks have to organize their operation and do their operations according to the need of the market. Banking sectors no more depends on a traditional method of banking. In this competitive world this sector has trenched its wings wide enough to cover any kind of financial services anywhere in this world. The major task for banks, to survive in this competitive environment is by managing its assets and liabilities in an efficient way.

As an internee student in EXIM Bank Bangladesh Limited at Narayangonj branch, Narayangonj. I have truly enjoyed my internship from the learning and experience viewpoint I am confident that three month internship program at EXIM Bank Bangladesh Limited in foreign exchange section will definitely help me to realize career in the job market.

During the course of my practical orientation I have tried to learn the practical banking to realize my theoretical knowledge, what I have gathered and going to acquire from various courses. It is great pleasure for me to have practical exposure of EXIM Bank Limited, because without practical exposure it couldn’t be possible for me to compare the theory with practice.

Through the departments and sections are covered in the internship program, it is not possible to go to the depth of each activities of branch because of time limitation. So objectives of the internship program have not been fulfilled with complete satisfaction. However, highest effort has been given to achieve the objectives of the internship program.

So in conclusion it can be said that every organization has its positive as well as negatives and in case of EXIM Bank Bangladesh Limited existence of the later one is less then the earlier one and as the management is determined to reach the pick of success it seems that in near future the negatives will be eliminated. SIX years is a very short span of time and the organization, which can establish itself as one of the most reputed private commercial Bank in the country within this short period deserves special credit and with their able leaders EXIM Bank will reach the highest level of success very shortly. I wish the bank all success prosperity in their field.