General Banking and Marketing Activities of EXIM Bank

The main purpose of this report is to give overall explanation of the company, its services, and its place in the market and its marketing strategy. This report discuss how they can civilizing the service of the bank and making changes to suit the customer needs. Report also focus on General Banking facility provided by Bangladesh bank and operational activities of Exim Bank Based on Islami Sariah.

Objective of the Study:

The Primary Objectives Of The Study Are:

• To know the current performance of this bank.
• Understand the Islamic Sariah Based general banking of Exim Bank Limited, Savar Branch.

Secondary Objectives Of The Study Are:

• Understand present an overview of Exim Bank Limited.
• To know about General Banking facility provided by Bangladesh bank.
• To know about the operational activities of Exim Bank Ltd. Based on Islami Sariah

Scope of the Study:

EXIM Bank is a very well known Bank in the private sector. This report is a model of the Banking service offered by EXIM BANK LIMITED. The scope of this report is limited to the overall explanation of the company, its services, and its place in the market and its marketing strategy. The scope of the study is limited to organizational setup, functions. During three months internship work in the EXIM Bank Ltd. Basically it is the measurement of General Banking System& Marketing Implication on the EXIM Bank and also overall explanation of the Bank, its services, position, marketing strategies, functions, and performances. Determine the level of General Banking System & Marketing Implication regarding General Banking, credit approval, monitoring technique and credit pricing of EXIM Bank Limited.

Every Bank, at branch level provides broadly three types of banking services. Namely: (see the operational definitions part for details)

• General Banking
• Credit Departments
• Foreign Exchange Department

These services are consistent. For example, a person who wants avail a Cash Credit (CC), which is a function of Loans and Advance Section must have a Current Account (a function of General Banking) with the individual branch of the Bank. Generally, all functions are related with General Banking. In this paper, the General Banking System is accepted for research purpose.

Methodology of the Study:

Methodology includes direct observation; face-to face discussion with Employees of different departments, study of files, circular etc and practical work. This study includes both quantities and qualitative data. However, this report is basically quantitative in nature. In all the cases depending on the requirements data have been collected from different sources.

Source of Information:

Nature of the study: Conclusive.

Sources of information: Both primary and secondary information sources were used to complete this report.

Primary Data: Primary data were collected by discussion with the employees.

Secondary Data: Secondary information was collected from Annual report and web side of EXIM bank Limited. Various books, journals, manuals, are also followed for the study

Types of research: This is an applied research. The findings of this research help to find the level of General Banking System& Marketing Implication regarding General Banking, Credit Approval and foreign exchange division of EXIM Bank Limited.

Basic research method: A conclusive research is conceded out to describe the research objectives. Two types of research techniques are used. Namely: Secondary Data Analysis. Secondary data sources are consulted like previous reports, publication, different journal and the Internet.

Data Analysis and Interpretation: After collection of all necessary data, those are analyzed in the following two ways:

• Subjective Analysis: Qualitative data are analyzed critically using judgment and previous knowledge.
• Statistical Analysis: Appropriate statistical tools are used to analyze the gathered data.

Introduction of the Bank:

Export Import Bank of Bangladesh Limited (EXIM bank) is one of leading private commercial banks in Bangladesh. This Bank came in to operation as scheduled commercial bank on 3^rd August 1999 as per rules and regulations of Bangladesh Bank. Of its very beginning EXIM Bank Bangladesh limited was known as BEXIM Bank Limited. But some legal constraints the bank renamed as EXIM Bank, which means Export Import Bank of Bangladesh Limited. At present the bank is performing its work all over the country by 62 Branches. The bank has migrated all of its conventional banking operation into Shariah based Islamic banking since July, 2004. In order to harmonize with the speed and efficiency of the current financial market, they have bought software T-24 supplied by Switzerland based IT company Temenos. They have taken initiatives to set up a wide spread network of ATM Machines throughout the country. EXIM Bank has already launched “EXIM KISHAN” an agricultural product in line with the directive of Central Bank for agricultural investment. Corporate Social responsibility (CSR) is one of the most concerned areas of the Bank. The bank has contributed generously in humanitarian activities as well as social and cultural activities including undertaking scholarship programs. It has also came forward in beautification of Dhaka city, founding foot over-bridges at crowded points of the city and creating income generating welfare schemes.

Historical Background:

Export Import Bank of Bangladesh Limited was established in the year 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. Indeed, 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 who is an illuminated business icon in the Garments business in Bangladesh became the Honorable Chairman after the demise of the honorable founder chairman. He is also the chairman of Bangladesh Association of Banks (BAB). Under his leadership, BAB has emerged as an effective forum for exchanging views on problems being faced by the banking sector of Bangladesh and for formulating common policy guidelines in addressing such problems.

This Bank starts functioning from 3rd August, 1999 with its name as Bengal Export Import Bank Limited. On 16th November 1999, it was renamed as Export Import Bank of Bangladesh Limited with Mr. Alamgir Kabir as the Founder Advisor and Mr. Mohammad Lakiotullah as the Founder Managing Director respectively. 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. Under the leadership of Mr. Lakiotullah, the Bank has migrated all of its conventional banking operation into Shariah Based Islami Banking in the year July 2004.

In the year 2006, Mr. Kazi Masihur Rahman became the Managing Director of the bank when Mr. Lakiotullah left the bank after completion of his successful 7 years as MD. Mr. Kazi served in the bank for next five years. Under his leadership, the bank has been placed on a state of the art centralized IT platform with two modern data centers where world renowned core banking software TEMENOS T24 is running along with some alternate delivery channels like ATMs and SMS banking.

Concept of Islamic Banking: The concept of Islamic banking represents a radical departure from traditional banking. Islamic Banking has to derive its inspiration from the religious edicts of Islam and its operations within the framework of the teaching of Islam. The most distinctive feature of Islamic Banking is the prohibition of interest (Riba) in all forms to transaction. Because “Allah” forbid the Riba (interest) but permits trade. The most important verses read as follows “O believes, take not double and redoubled interest and fear God so that you may prosper (Sura 3 [Al-Imran] verse 130). The Islamic banks organize their operations on the basic of profit/ Loss sharing and other modes, which are permitted in Islam.

Islamic banking has been defined in a number of ways: – An Islamic bank is a financial institution whose status rules and procedures expressly state its commitment to the principal of Islamic shariah and to the banning of the receipt and payment of interest on any of its operations.

According  to Dr.Shawki Ismail Shehta.  “It is there for natural and indeed imperative for an Islamic bank to incorporation in its functions and practices commercial investment and social activities as an institution designed to promote the civilized mission of an Islamic Economy”.

It is clear from the definitions given above that an Islamic bank is not merely a financial intermediary; it involves direct participation in business on the principals of sharing of profit and losses aiming at ensuring social equity and justice.

Important Objectives of Islamic Banking: The important objectives of Islamic banking are:

• Make the best effect to penetrate into the entire society with particular emphasis on low-income groups
• Allocate part of the savings collected in each community to project directly related to the community itself.
• Allocate part of the available funds to the small enterprises and not only to save big business and procedures
• Be aware that when managing its zakat funds the Islamic banks should allocate to overcome part of these funds to securing Qard Hasan(interest free loans). This Qard Hasan Should is directed to opportunities that would serve development, such as creating jobs in order to convert unemployed persons into productive elements within the society or assisting small businesses their financial problems.
• Make effort to turn banking institution as business share institutions from merely loan institutions.
• Try to bring diversity in the investment portfolio in accordance with the need and demand of the time and nature of business by introducing various investment methods & techniques
• Create efficient management engineer through conducting jointly the business Enterprises and production activities.
• Link loans and advances with efficiency based method in Lieu of security oriented. As a result a large number of potential but efficient poor entrepreneurs are able to deploy there service and labor for the productive and innovative activities.
• Establish equity and justice in the society thought the fair distribution of profit Loss Sharing.
• Implement a compulsory ruling of sharia by abolishing the interest mechanism from the banking system.
• Establish priority of labor and production as a source of profit earning and Growth of capital.
• Finance in income generating activities for fulfillment of the basic needs of the poor mass.
• Finance for the balanced development of the country’s agricultural industrial and commerce sectors to help reduce the ill effects of discriminating investment or development narrowed down the gap between the rich and poor and frame and investment plan on micro level basis.
• Discard various types of corruption fraud forgeries misuse or under use of potential recourses and establish strong culture of moral discipline in conformity with the tenets of Islamic Sharia.
• Invest in the country’s potential utilized sector insuring the best uses of the Endowed resources by the God and Coordinate the economic development with the social development.

Features of Islamic Banking: The main features of Islamic banking may be grouped as under

• Prohibition of interest in all forms of transaction.
• Undertaking business and trade activities on the basis of fair and legitimate (Halal) profits.
• Giving Zakat
• Prohibition of monopoly business.
• Investment pattern is designed to promote welfare of the disadvantaged.

Characteristics of Islamic Banking: The distinct characteristics of Islamic Banks may be explained as follows-

• The basis of interest whether it is fixed floating, prepaid, deferred, deducted or in any other form that is strictly prohibited by Islam and Islami base bank follow this.
• The relationship between Islamic banks and their customers is not that of creditor and debtor but one of participation in risks and rewards.
• Unlike conventional bank, which pool capital funds and depositor’s funds, an Islamic bank keeps the two segregated in order not to mix the profit corned on its own fund (capital plus current balances repayment or which is guaranteed) with the profit corned on investor’s funds which are accepted on a profit and loss sharing basis. This enables the banks to calculate the profit due to investors correctly.
• Islamic banks are multipurpose banks since they pay the role of commercial Bank, Investment banks and development banks.
• When Islamic banks employ their resources for production purposes they do not offer cash loans, as is the cash with conventional banks, but operates though participation (Musharaka) / partnership.
• Some other form of Islamic contract, such as Mudaraba, Murabaha, Ijara etc.

While the role of non-Islamic banks is to attract financial resources and lend them so as to make profit, the Islamic banks mobilize financial resources in Order to use them to develop the society as a whole. Profit is no doubt, kept in sight but that is not the sole objective of investment.

Difference between Conventional Financial System (CFS) and Islamic Financial System (IFS):

Conventional Financial System (CFS):

A financial system which is traditionally based and working on Riba or interest principle which is irrelevant of or ignores or separates the religious life of a man from the economic life can be defined as CFS. The conventional financial system is of two types:

1) Socialistic F.S & 2) Capitalistic F.S – both systems have been provide inefficient to establish economic balance in the society.

Islamic financial System (IFS):

A financial system that is based on Islamic principles & values, which eliminates Riba and ensures a profit sharing mechanism in the financial system is called IFS. It may be characterized by the absence of interest bared financial institution & transactions, doubtful transactions or gharry, stock of companies dealing in unlawful activities, unethical or immoral transaction such as market manipulation insider trading, short selling etc.

Islamic banking principles combine a value maximization concept with the principle of justice for the wider welfare of the society. These principles offer a means to create value and elevate the standard of living of people in general through commercial pursuits. However, it is felt that much operational work and in – depth research work has to be undertaken to allow the Sharia Based Islami bank to flourish with highest quality and strength. Exim Bank has launched islami banking system and it is very good news that Exim Bank Ltd. has become more effective after transformation of its operation from traditional to fully Shariah based Islami banking system. All the branches perform their activities according to the Shariah based Islami banking system.

General Banking

Introduction:

Exim Bank General Banking System department does the most important and basic work of the bank. Its other departments are liked with this department. Exim Bank also played a vital role in deposit mobilization of the branch. According to customer demand Exim Bank provides different types of account and special types of saving scheme under general banking. On the basic of customer demand and its proper functioning and excellent customer service this department is divided into various sections namely as below:-

• Accounts Opening Section

• Local Remittance section

• Bills and Clearing Section

• Accounts Section

• Cash Section

• Deposit Section

Accounts Opening Section:

This section deals with opening of different types of accounts. Account opening department plays a vital role in the operation of banking. Opening of an account binds the banker and the customer into a contractual relationship. It is also deals with issuing of checkbooks and different accounts openers. A customer can open different types of accounts though this department.

Classification of Bank Account

Bank has two types of deposit account, and they are-

1. Operating Account
2. Non-Operating Account
3. Operating Account: This type of account is operated by the account holder of the Bank. There are mainly two types of accounts and they are-

(I) Al-Wadia Current Deposit account (ACD): Current account is an account where numerous transactions can be made by the account holder within the funds available in its credits. Current account is mainly suitable for businessman though nobody is debarred from opening such an account for any purpose. Requirements to open an account are almost same to that of savings account except the initial deposit and the introducer must be the saving or current account holder. Some important points are as follows-

• Minimum opening deposit of Tk.3000/= is required.
• There is no withdrawal limit.
• No interest is given upon the deposited money.
• Minimum Tk.3000/= balance must be always maintain all the time.

(II) Mudaraba Saving Deposit account (MSD): To encourage savings habit amongst the general public, bank allows depositors to open savings account. As the name indicates, these accounts are opened for the purpose of savings. There are two types of Saving Account. One is “Single Saving Account” and another is “Joint Saving Account”. Some important points are as follows-

• Minimum opening deposit of Tk.1000/= is required.
• Minimum Tk.1000/= balance must always maintain all the time.
• Withdrawal amount should not be more than 1/4^th or 25% of the total balance at a time and limit twice in a month.
• If withdrawal amount exceed 1/4^th of the total balance at a time no interest is given upon the deposited money for that month.

Non-Operating Account: There are mainly two types of time deposit:-

(I) Mudaraba Short Term Deposit account (MSTD):

In EXIM Bank, various big companies, organization, Government Departments keep money in MSTD account. Frequent withdrawal is discouraged and requires prior notice. In short term deposit, the deposit should be kept for at least seven days to get interest. The interest offered for MSTD is less than that of savings deposit. Interest is calculated on daily minimum product and paid two times in a year. Interest rate is 3/4%

(II) Mudaraba Term Deposit Receipt account (MTDR/FDR):

This type of deposit should be kept for a fixed term or period. EXIM Bank Limited deals with the following terms deposit.

• 1 month MTDR/FDR.
• 3 months MTDR/FDR.
• 6 months MTDR/FDR.
• 1 Year to 3 year MTDR/FDR.

Account Opening procedure:

Account opening is the gateway for clients to enter into business with bank. It is the foundation of banker and customer relationship. This is one of the most important sections of a branch, because by opening accounts bank mobilizes funds for investment. Various rules and regulations are maintained and various documents are taken while opening an account. A customer can open different types of accounts through this department. The normal procedure to open an account with EXIM Bank is as follows:

Step 1: The account should be properly introduced by any one of the following-

• An existing Current Account holder of the Bank.
• Officials of the bank not below the rank of an Assistant officer.
• A respectable person of the locality well known to the Manager or Sub Manager of the branch concerned.

Step 2: Receiving filled up application in banks prescribed form mentioning what type of account is desired to be opened.

Step 3:

• The form is filled up by the applicant himself or herself.
• Two copies of passport size photographs from individual are taken; in case of firms photographs of all partners are taken.
• Applicants must submit required documents.
• Application must sign specimen signature sheet and give mandate.
• Introducer’s signature and accounts number – verified by legal officer.

Step 4: Authorized officer accepts the application.

Step 5: Minimum balance is deposited – only cash is accepted.

Step 6: Account is opened and a Cheque book and pay-in-slip book is given.

Documents require for opening Account:

General requirement for opening Account:-

• Account opening form to be filled in and signed by the account holder.
• Introduction by an account holder with signature and account number or any person acceptable to the bank.
• Two copies of recent passport size photographs of each account holder attested by the introducer.
• One copies passport size photographs of nominee attested by the account holder.
• Initial deposit.

Individual / joint Account:

• Copy of passport or national ID card or driving license or office ID or word commissioner certificate or any ID card acceptable to the bank.
• Attested photocopy of passport with valid visa and work permit.
• Joint account declaration form to open joint account only.
• TIN certificate if applicable.

Partnership Account:

• Updated Trade license.
• Copy of registered partnership deed.
• Copy of updated Trade license.
• Resolutions of partners to open the account and authorization for its operation duly certified by the managing partner.
• List of partner’s along with their full address and phone numbers.
• TIN certificate.

Proprietorship Account:

• Copy of updated Trade license.
• Sole proprietorship declaration.
• TIN certificate.

Private and public limited company Account:

• Certificate copy of memorandum and article of association of the company.
• Certificate copy of incorporation of the company.
• Certificate copy of certificate of Commencement if any public limited company.
• Board resolution of opening the account and authorization for its operations duly certified by the chairman or managing director of the company.
• Copy of the updated Trade license.
• Latest list of directors with designation, full address and numbers.
• Certificated copy from x11 certified by register of Joint Stock Company.
• Certificate of registration in case of insurance company.
• Copy of updated TIN certificate.

Association or club or trust or society or charity organization or educational institution or Moshjid or Madrasha Account:

• Certificated copy of By-Laws or memorandum and article of association or trust deed.
• Certificated copy of certificate of registration, permission from the concerned department of the government.
• List of number of the Governing body or executive committee with their address and phone numbers.
• Resolution of the board or executive committee or governing body for opening the account and authorization for its operation duly certified by the chairman or secretary or president.
• Permission letter from Bureau of NGO in case of NGO account.

Minor Account:

• Please put the word “Minor” after the title of the Account.
• Please record special instruction of the Account.
• The AOF is to be filled in and signed by either of the parents or the legal guardian appointed by the court of law and not by the Minor.

Current Profit Rate of Exim Bank:

MSS (MONTHLY SAVING SCHEME)

Amount on maturity against saving scheme

MIS (MONTHLY INCOME SCHEME)

SSS (SUPER SAVING SCHEME)

Accounts Section:

Account department is called the nerve Center of the bank. In banking business, transactions are done every day and these transactions are to be recorded properly and systematically as the banks deal with the depositors’ money. Improper recording transactions will lead to the mismatch in the debit side and in the credit side. To avoid these mishaps, the bank provides a separate department; whose function is to check the mistakes in passing vouchers or wrong entries of fraud or forgery. This department is called as Accounts Department. If any discrepancy arises regarding any transaction this department report to the concerned department.

Workings of this department

• Recording the transactions in the cashbook
• Recording the transactions in general and subsidiary ledger
• Preparing the daily position of the branch comprising of deposit and cash.
• Preparing the daily Statement and Affairs showing all the assets and liability of the branch as per General ledger and Subsidiary ledger separately.
• Preparing the monthly salary statements for the employees.
• Preparing the weekly position for the branch which is sent to the Head Office to maintain Cash Reserve Requirement (CRR).
• Preparing the weekly position for the branch which is sent to the Head Office to maintain Statutory Liquidity Requirement (SLR).
• Preparing the budget for the branch by fixing the target regarding profit and deposit so as to take necessary steps to generate and mobilize deposit.
• Recording of the vouchers in the Voucher register.

Cash Section:

Banks as a financial institution, accept surplus money from the people as deposit and given them opportunity to withdraw the same by cheque, etc. but among the banking activities, cash department plays an important role. It does the main function of a commercial bank i.e. receiving the deposit and paying the cash on demand. As this department deals directly with the customer, the reputation of the bank depends much on it. The functions of a cash department are described below:

Function of cash Department

Cash packing:-After the banking hour cash is packed according to the denomination. Notes are counted and packed in bundles and stamps with initial.

Allocation of Currency:-Before starting the banking hour all tellers gave requisition of money though “Teller cash proof Sheet”. The head teller writes the number of the packet denomination with in “Reserve Sheet” at the end of the day; all the notes remained are recorded in the sheet.

Passing the check:

After verifying the above – mentioned things the officer passes it to the computer section for more verification. After that it is passed to the officer to make payment. By putting “seal the cash officer make it clear to pay. The cash officer gives the cash amount to the holder and record in the cash paid register.

Dishonor of Check:

A bank cans dishonor a Check in the Following Situation:

• Insufficient fund.
• Payment stopped by drawer.
• Alteration required drawer signature.
• Effect not clear in the check.
• Exceed arrangement in check
• Full cover not received.
• Payee’s endorsement irregular/illegible/required.
• Drawer signature different and required.
• Check is post dated/mutilated/out of data.
• Crossed check must be presented through a bank.

Deposit Section: The function of the deposit section is very important. It is fully computerized. The officer of the deposit section maintains account number of all the customer of the bank. They are used different code number for different account. By this section a depositor/drawer can know what the present position is if his/her account. From the history and origin of the banking system we know that deposit collection is the main function of the bank.

Accepting deposits: The deposits that are accepted by EXIM bank of Bangladesh Limited like other banks may be classified in to,

1. Demand deposits
2. Time Deposits

Demand deposits: These deposits are withdrawn able without notice, e.g. current deposits. EXIM Bank of Bangladesh Limited Accepts demand deposits through the opening of:

1. Current account
2. Savings Account

Time deposits: A deposits which is payable at a fixed date or after a period of notice is a time deposit. EXIM bank of Bangladesh Limited accepts time deposits through Fixed Deposit Receipt (FDR), Short Term Deposit (STD). While accepting these deposits, a contract is done between the bank and the customer. When the banker opens an account in the name of a customer, there arise contracts between the two. This contract will be valid one only when both the parties are competent to enter into contracts. As account opening initiates the fundamental relationship& since the banker has to deal with different kinds of person with different legal status, EXIM Bank of Bangladesh Limited official remain very much careful about the competency of the customers. The Local Remittance section of EXIM bank of Bangladesh of Bangladesh Limited is also issues FDR. They are also known as time deposit of time liabilities.

Financial Highlights

Amount in million Tk.

Financial overview of the EXIM Bank:

The performance of the bank was very significant both in terms of development and achievement in the year of 2012. As at 31 December 2012, total asset and liability of the bank were Tk. 113070.98 million and Tk. 100596.13 million respectively as against Tk. 83329.34 million and Tk. 76612.13 million respectively as on 31 December 2011. In 2012, the bank successfully mobilized Tk. 94949.40 million of deposits through its 62 branches and disbursed investment of Tk. 93296.65 million against deposit of Tk. 73835.46 million and investment of Tk. 68609.91 million respectively in 2011. In 2012, the bank earned operating profit of Tk. 5893.79 million with and annual growth of 85.23% comparing of Tk. 3181.78 million in 2011. The return on assets (ROA) after tax was 3.54% for the year 2012 which was 2.19% in previous year.

Capital and reserve fund:

While inception in 1999, the banks Authorized Capital was Tk. 1000 million and paid up capital was Tk. 225 million subscribed by the sponsors. Its authorized capital was enhanced to Tk. 3500 million in the year 2008. Banks authorized capital was further augmented to Tk. 10000 million in 2011. In the year 2012 Bank changed the denomination of share from Tk. 100 to Tk. 10 as well as the market lot from 50-100 shares and raised Tk. 6832.27 million as paid up capital.

Deposit:

Deposit is the principal source of fund invested to generate revenue in banking business. The total deposit of the bank stood at Tk. 94949.40 million as on 31 December 2012 against Tk. 73835.46 million of the previous year with an increase of Tk. 21113.94 million at a growth rate of 28.60%. The main strategy for increasing deposit base is maintaining competitive rates of profit and providing satisfactory services to the customers.

Investment (General):

Total investment of the bank was Tk. 93296.65 million as on 31 December 2012 against Tk. 68609.91 million as on 31 December 2011 showing an increase of Tk. 24686.74 million with a growth rate of 35.98% the bank performs appropriate investment risk analysis while approving investments to customers in order to maintain quality of assets.

Import business:

In the year 2012 bank handled BDT 129570.73 million against import business through 39855 letters of credits which is 54.41% higher from the previous year.

Export business:

Export business of the bank stood at BDT 95359.45 million in 2012 by handling 37096 numbers of documents with a growth of 25.08% in comparison with the previous year.

Foreign remittance:

Bank grasped BDT 3036.42 million remittances in the last year. It was BDT 2452.33 million in 2011 which means the growth rate on 2012 is 23.82%

Net profit after provision and Tax:

In the year 2012, banks net profit after provision and Tax is BDT 3476.01 million against the year 2011 which is BDT 1694.1 million. So, net profit growth against previous year is 105.2% which amazing success for the bank.

Marketing Activities

Marketing: Marketing is the process of planning, executing the price, promotion and distribution of goods, services and ideas to create exchange to satisfy the customers need and demand to maximize the objectives of the business.

Marketing Mix: Marketing mix includes-

1. Product: Exim Bank has offered different deposit products like, Mudaraba Super Savings Scheme (MSSS), Mudaraba Monthly Saving Scheme (MMSS), Mudaraba Monthly Income Scheme (MMIS), Multi-plus Savings (MSS), Hajj Deposit and it also offered some loan products to its targeted customers to provide better services.
2. Price: Exim Bank Ltd. charged a certain amount interest on their loan products and offers a certain profit rate (12.5%) on their deposit products.
3. Place: Exim Bank Ltd. distributes its services over the country by its own 62 branches to provide better convenience to the customers for getting the service from this bank. So the branch must be located at a convenient place or location.
4. Promotion: Exim Bank Ltd. Also do some variety of promotional activities through the printed media and also through the public relation.

Customer-Driven Marketing Strategy by EXIM Bank Ltd.: EXIM Bank Ltd. has some strategy or techniques to get desired customer base. EXIM Bank can’t serve all people of our country because of its capacity limitation. So EXIM Bank divides the market into meaningful customer groups (segmentation), Choose a specific groups to serve (Targeting), and then differentiate its offering to attract customer attention.

• Segmentation Strategy of EXIM Bank Ltd: EXIM Bank Ltd. has divided the market into different segment which are given here:

By Region: Whole country is divided into seven region or Division.

By Religion: Population of our country is comprised of different religion such as Muslim, Hindus, and Christian & Buddhist etc

By Occupation: Professional, Technical, Businessmen, Farmers, Housewives, and Students etc.

Social Class: Lower lowers, upper lowers, Working class, Middle class, Upper middle class, Upper uppers etc.

• Targeting Strategy of EXIM Bank Ltd: EXIM Bank Ltd. follows both undifferentiated & differentiated marketing strategy for targeting their whole market. EXIM Bank Ltd. targets whole market, it offers same services to all class people of the society, people from any status, religion, and area can get the services of EXIM Bank Ltd. It offers convenient services like, Deposit, Investment and Foreign exchange products/services to its customer through 62 Branches. It also follow the differentiated marketing strategy by providing or offering some special product/service scheme to a particular segment of customers, like Agricultural loan only for the farmer, Student Account & Student loan, Hazz deposit scheme only for the Muslim customer etc.

• Differentiation: The main differentiation is that although EXIM Bank Ltd. is Export Import based schedule commercial bank but at the same time it also a shariah Based Islami Bank. Such as, it offers the customer interest (Riba) free banking service. Interest is strictly prohibited in Islam. So religious minded Muslims always prefer islami Bank. EXIM Bank Ltd invests in the productive sector. Bank works as a partner with its clients.

• Market Positioning Strategy: EXIM Bank Ltd. is the first Export Import based Commercial Bank in Bangladesh. And they positioned their bank as Islami Shariah based schedule commercial bank. As it is an Islami Shariah based bank so the People who are Muslim have faith in EXIM Bank services. EXIM Bank Ltd. 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. So, the Customer will motivate to its philosophy & be loyal to its services.

Integrated Marketing Communications (Promotion Mix) used by the EXIM Bank Ltd: Marketing communications focus on immediate awareness, image, or preference goals in the target market. But today marketers are moving toward viewing communications as managing the customer relationship overtime. In banking industry relationship is based on trust. Clients always seek security and safety as well as swift service. EXIM Bank Ltd. provides banking services to its client. Target customers are the people of all class of our society. EXIM Bank Ltd. emphasize mostly on social welfare as well as on its business performance. General Banking System& Marketing Implications their motto. So customers spread positive word of mouth. Besides this they promote their services through different media, such as:

Advertisement:

• Television Advertising (New Branch Opening).
• Newspaper Ads (New Branch Opening & Special Offers).
• Magazine & Journals.
• Calendar & Note Books.
• Annual Report. Etc

 Public Relations:

• CSR (corporate social responsibility).
• Press Release.

Advertisement Provided On:

1. Television Advertising: EXIM Bank Ltd. informs its target customers through television ads especially when a New Branch is likely to open. Television Ads help people to know the location and date of commencing banking services in their localities.
2. Newspaper Advertising: Bank publishes advertisement of launching a branch and other special offers in different Daily Newspaper. It is needed to inform the customer about new services such as ATM booth location, Xpress money service, Address change of a Branch, Consumer banking, Household durables services etc. Newspaper ads are the most effective media for these services.

Different National Dailies chosen for ads are:

• The Daily Prothom Alo
• The Daily Naya Diganta
• The Daily Amar Desh
• The Daily Sangram
• The Daily star
• The Bangladesh Observer etc.

3. Magazine & Journals: Advertisement of consumer banking such as household durables schemes, Special scheme for medical instrument, office furniture, computer, car investment scheme and other services offered by the bank is published through this media.
4. 4. Billboards: EXIM Bank Ltd. doesn’t use the billboard but Digital and plastic signboard of different branches also a kind of advertising. ATM Booth located in different areas of the cities represent the bank’s logo.
5. Calendar & Note Books: Bank publishes wall calendar, desk calendar, diary, note books and provides to its clients and different parties. Calendars of EXIM Bank Ltd. is composed of Calligraphy, Historical location of Islam which motivates people to the Islam.
6. Prospectus & Annual Report: EXIM Bank Ltd. publishes prospectus to collect shareholders and bondholders. Annual report is published for the purpose of declaring dividend, equity and asset of the bank. Annual report must be submitted parties like Bangladesh Bank, Shareholders, different research firms and interested groups.

Public Relations: Public relation can be done by Corporate Social Responsibility, press release, and sponsorship.

Corporate Social Responsibilities (CSR):

At least 2% of our annual profit of every year is put aside for the foundation to conduct Corporate Social Responsibilities (CSR) activities. The mainstream CSR activities that are carried out through this foundation are

1. Healthcare service: A 5 storied building having 10,000 sq. ft. floor space at 840 Kazi Para, Rokeya Sarani,Mirpur, Dhaka-1216 has been hired to set up EXIM Bank Hospital. The decoration of this hospital is going on in full swing. A doctor has been recruited who is working as a resident director of the hospital. Other doctors and hospital staffs have been in the process of selection through recruitment notice already published in the national dailies. They will be appointed as soon as the decoration of the hospital is complete.
2. Scholarship program for brilliant poor student: This is a stipend package for poor and meritorious students that take care of the beneficiaries throughout their student life. EXIM Bank Scholarship Program, launched in 2006 with 61 poor and meritorious students selected from different reputed educational institutions of Dhaka City including Govt. Laboratory High School, Viqarunnissa Noon School and College, Dhaka University, BUET, Dhaka Medical College, etc. enrolled as many as 1000 students from around 150 reputed educational institutions across the country by 31 December 2008. They are enrolled in the program. to be taken care of for their whole educational life subject to their fulfillment of the eligibility criteria that include satisfactory academic results, non-involvement in student politics, financial insolvency etc. So far Tk. 19.3 million has been disbursed as scholarship under this program.
3. Education Promotion Scheme (Interest free loan): Under Education Promotion Scheme, quard or interest-free loan is provided for poor and meritorious students to help them bear monthly educational expenditure including academic expenses, food, accommodation, etc. The quard is disbursed to the selected students in monthly installments till their accomplishing the master degree. Under this program the students are required to repay the amount (only the principal amount) in long-term monthly installments after they have joined a confirmed job accomplishing their education properly. By 31 December 2008, Tk. 19.7 million was sanctioned to take care of around 138 poor and meritorious students from a number of reputed educational institutions like Dhaka University, Chittagong University, Dhaka Medical College, BUET, Bangladesh Agricultural University, Shahjalal University of Science and Technology etc
4. Helping people affected by natural calamities: Another vital area we are dealing with as part of our CSR activities is helping people survive natural calamities. Under this welfare program, EXIM Bank provides relief in cash and kind for flood, fire or cyclone victims and cold-stricken people. The aim of these CSR activities is to help the target group overcome their provisional handicap and contribute to the socio-economic growth as soon as possible.
5. Helping people in slum areas: Besides natural calamities, fire breaks out sometimes in slum areas that guts the shanties and renders the affected people totally helpless. In that situation, we help the victims fight against the hard days and return to normal life
6. Donation to educational institutions to setup computer lab: We have donated to Dhaka University and Chittagong University to set up two computer labs that help the students of those universities acquire ICT knowledge. This will certainly help the students to be ready to take the challenges of this information society.
7. Beautification of Dhaka City: In response to the call of the Dhaka City Corporation, EXIM Bank has been sharing a good portion of the mammoth task of beautifying the capital since 2005. To make the capital a modern city enriched with adequate urban amenities, EXIM Bank always joins hands with the government.

Press Release:

Bank arranges press release in different times to building up a good “corporate image” and handling or heading off unfavorable rumors, stories, events.

Press release also enhances the morale of different stake holders. It also attracts new client to the bank.

Sponsorship:

Bank provides sponsorship of different event especially in sports. As it is a shariah based islami bank so, it never provides sponsorship in any sector which is prohibited according to Islam like, musical show.

SWOT Analysis: SWOT Analysis is the detailed study of an organization’s exposure and potential in the perspective of its strength, weakness, opportunity and threat. These facilities of the organization help to make their existing line of performance and also forecast the future to improve their performance in comparison to their competitors. As through these tools, 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:

• EXIM Bank of Bangladesh Limited has already established a favorable reputation in the banking industry of the country. It is one of the leading private sector commercial banks in Bangladesh. The bank has already shown a tremendous growth in the profit and deposits sector.
• EXIM Bank of Bangladesh Limited has provided its banking service with top leadership and management position. The upper management of Exim bank is highly skilled and qualified. The board of Directors headed by its chairman Mr. Md. Nazrul Islam is skilled person in business world. Alamgir Kabir, the advisor of the bank is reputed senior chartered accountant having 30 years vast experience in accounts, audit, finance and banking at and abroad. Md. Fariduddin Ahmed, as the MD of the bank management team. The top management officials have all worked in reputed banks and their years of banking experience, skill and expertise will continue to contribute towards further expansion of the bank.
• EXIM Bank of Bangladesh Limited has already achieved a high growth rate accompanied by an impressive profit growth rate in 2012. 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 while communicate between the superior and the employees. This corporate culture provides as a great motivation factor among the employees.
• Their deposit base is very strong and they have strong Financial Resources.
• As Islamic Shariah Based bank EXIM bank of Bangladesh Limited has a prominent Shariah Council and they can provide different types of Islamic banking products.
• Their leadership is good as well as they have top management level team.

Weakness:

• ATM BOOTH service of EXIM Bank Limited is not good still at now because Bank has only 37 ATM booths all over the country. An internal survey conduct at Savar shows that only 18% customers are satisfied with their ATM services.
• As EXIM Bank Limited is a Shariah based Islami Bank so there is lack of aggressive advertising in TV, Magazine etc.
• The service quality of EXIM Bank Limited is good & higher than Prime Bank, Dhaka bank or Dutch Bangla Bank or any govt. Bank, but this service quality is not sufficient for the bank to compete with the multinational Bank located in our country like, HSBC bank, Standard Chartered Bank etc.
• High reliance on Head Office, as the Branch actually doesn’t have any autonomy. So, very often it is found that prompt decision making is hampered when necessary.
• Some of the job in EXIM Bank of Bangladesh Limited has no growth or advancement path. So lack of motivation exists in persons filling those positions. This is a weakness of EXIM Bank of Bangladesh Limited that it is having a group of unsatisfied employees.
• The main important thing is that the bank has no clear mission statement and strategic plan. The banks not have any long-term strategies of whether it wants to focus on retail banking or become a corporate bank because they practice both of these. The path of the future should be determined now with strong feasible strategic plan.
• In terms of promotional activities, EXIM Bank of Bangladesh Limited has to more emphasize on that because an internal survey conduct at Savar shows that only 27% customers are fully satisfied the bank promotional activities. Bank need to follow aggressive marketing campaign.

Opportunity:

• In order to reduce the business risk, EXIM Bank has to expand their business portfolio. The management can consider option of starting merchant banking or diversify into leasing and insurance sector.
• Opportunity in retail banking lies in the fact that country’s increased population is gradually learning to adopt consumer finance. The bulk of our population is middle class. Different types of retail lending products have great appeal to this class. A wide variety of retail lending products has very large market. EXIM Bank Limited already practices the retail banking and it is a opportunity to this bank.
• A large number of private banks coming into the market in the recent time. In this competitive environment EXIM Bank of Bangladesh Limited must expand its product line to enhance its sustainable competitive advantages. In that product line, they can introduce variety of credit card and debit card system for their potential customer and Bank need to increase it ATM booth quantity.
• In addition of those think, EXIM Bank of Bangladesh Limited can introduce special corporate scheme for the corporate customer or officer who have an income level higher from the service holder. At the same time, they can introduce scheme or loan for various service holder and the scheme should be separate according to the professions, such as engineers, Lawyers and doctors etc.
• As EXIM Bank Limited is Export Import and Islami Shariah based Bank and 90% population of our country is Muslim so there is large market for this bank to target their customer because Muslim people will prefer the Shariah based Bank.

Threats:

• All sustain multinational banks and upcoming foreign, private banks create enormous threats to Exim Bank Limited. If that happens the intensity of competition will rise further and banks will have to develop strategies to compete against the foreign banks.
• The depreciation of Taka against US dollar rate is a great threat to foreign exchange transaction and profitability for EXIM Bank of Bangladesh Limited.
• The default risks all terms of loan have to be minimizing in order to sustain in the financial market. Because default risk leads the organization towards to bankrupt. EXIM Bank of Bangladesh Limited has to remain vigilant about this problem so that proactive strategies are taken to minimize this problem if not elimination.

Recommendations:

1. Their ATM BOOTH is not available everywhere. So the bank needs to increase their ATM BOOTH in different places of their branch operational area.
2. Bank need to do aggressive marketing activities to make popular their Visa Islamic Card and also to attract the customer.
3. The Bank should reduce the profit rate on loans product and keep it reasonable. Because 19% profit rare is comparatively high and customer notice about this.
4. As it is Export Import based commercial schedule bank so, it is very essential that all branches must have AD service because some customer notice that they face problem for not availability of this service and need to depend on the support of Head Office.
5. Bank must need to increase their promotional activities to promote their products and services.
6. The bank should introduce new products to the market by doing proper research and development. Consumers are not getting the suitable loan for their own purpose. They should emphasis on proper research and development of proper products according to the driven market consumer preference.

7. Personal Relationship should be build with the big customers/depositors. They can be sent different gifts items like calendar, diary etc. on different occasions like Eid, New year’s etc.
8. Customers are satisfied with the price charge by EXIM, but they have not too much awareness about the price charged. Customer’s awareness should be build over pricing strategy.
9. Each branch should be having decorated with electronic display board, which will show that which table is performing what function and now that is servicing.
10. Foreign exchange is the most profitable department of each branch. So EXIM bank limited should think about opening more branches internationally, mostly where they have enough operations. It will facilitate the foreign trade. As a result, efficiency of the foreign trade will be increased.

Conclusions:

Lots of new commercial banks have established in last few years and the bank has made these banking sectors very competitive. So, banks have to organize their operation and do their operations according to their need of market. We moved a long way from the time when the banks were only deposit taking and money lending institution. Modern banking is an outcome development driven by changing financial activities and lifestyle. Bangladesh has not lagged behind. Banks are required to participate in the nation building activities and act as agent for banking about socioeconomic changes.

It is a great pleasure for me to have practical experience to EXIM Bank Limited, Savar Branch. Without practical knowledge, it is not possible for me to compare the academic knowledge & practical knowledge.  Since the time is very limited to learn the all the sectors of a Bank. If the duration of internship can be increased, then it is possible to learn all the Banking activities more properly.

To compete in the environment of advancing technology and faster communication the EXIM Bank Limited should depend more heavily on the quality service and information technology. EXIM Bank Limited should be connected through wide area network. So that all the informational and service can be accessed from any branch of the world.

No doubt about it that EXIM Bank Limited achieves superior position in our Banking industry but to cope with customer EXIM Bank Limited should think how to make its service proactive.  To compete with other Banks operation in Bangladesh, EXIM Bank Limited should introduce easier way for faster processing of credit analysis.

Overall customers are satisfied about the services provided by Exim bank Ltd. To capture whole market they need do more market research to develop and improve the products and services that will meet the expectations of near 100% customers.

As a leading new generation Bank EXIM Bank Limited is contributing significantly to the economy of Bangladesh with a promising future.  I can hope that EXIM Bank Limited will be able to spread their business with   increasing various schemes & other utility services.