Internship Report on Banking Activities

Profile of City Bank

The city bank limited is the first generation private sector bank in Bangladesh. It came to begin in 1983 with authorized capital of tk 400/= million under the entrepreneur of 12 nos. prominent & leading businessmen of the country.

Mission of the bank.
The noble intention behind starting of this bank was to about a qualitative change in the sphere of banking and financial management.
(1) To attain maximum customer satisfaction through better services.
(2) To improve the financial sector of Bangladesh i.e. to improve the economic condition of Bangladesh by providing effective and innovative banking and financial product in financial market.

Objectives & Goals.
CBL is always ready to maintain the height quality of services by upgrading banking technology prudence in management and by applying high standard of business ethics through its established commitment and heritage.
The objective of CBL is not only earn profit but also to keep the social commitment and to ensure its co-operation to the person of all level, to the businessman, industrialist especially who are engaged in establishing large scale industry by consortium and the agro-based export oriented medium and small industries by self inspiration.
CBL is committed to ensure its contribution to national economy by increasing its profitability through professional and disciplined growth strategy for its customer and by creating corporate culture in international banking area.
CBL believes in building up strong-based capitalization of the country.
CBL has been working from the very beginning to ensure the best uses of its creativity well disciplined, well manage and perfect growth.

CBL is playing a vital role in socio-economic development of Bangladesh by way of linkage with rest of the world by developing worldwide network in domestic and international operation.
CBL is preoccupied to encourage the investors for purchasing its share by creating the opportunity of long-term investment and increasing the value of share through prosperity and developed by day. CBL is committed to continue its activities in the new horizon of business with a view to developing services oriented industry and culture of morality and its maintenance in banking.

Structures and Management.
To the serves its customers at home and abroad with 76 branches (of which the nos. of AD branches are 20) spread over the county and (BOD) consisting of 17 members. Mr. Deen Mohammad, atop leading businessman, industrialist and pioneer personality & entrepreneur of private sector banks in Bangladesh, is the Chairman of this Bank. Mr.. Abbas Uddin Ahamed a dynanmic, nationally as well as internationally reputed Banker is the Managing Director of this Bank. Mr. Manash Kumar Ghosh, a high profile personality is the secretary of this Bank.

Operations, financial products and services:

The services encompass wide diversified areas of trade. Commerce & industry tailored to the specific needs of the customers and is distinguished by an exceptional level of prompt and
personal attention. Over the years, the Bank has expanded the spectrum of its services. The extensive and ever growing domestic network provides and carries various products and services to the doorsteps of millions. The City Bank limited has already introduced some new Banking products like Credit Card, ATM. and SWIFT etc, which created attraction among the clients.

Performance.

For significant performance, the Bank has earned national and international recognition. The City Bank Limited was on of the 12 Banks of Bangladesh among the 500 banks in Asia for it’s Assets, Deposit and profit as evaluated by ASIA WEEK in the year 2000. Besides The Bank received “ Top ten Company” award from the prime Minister of the peoples Republic of Bangladesh in the year 1992-93 which was declared by Securities and Exchange Commission.

1.2 OVERVIEW OF PRIME BANK LIMITED

Backdrop of the Bank
Prime Bank is one of the new Bangladeshi private banks, which was incorporated on 12th February, 1995 with Tk. 1000 million of authorized capital & Tk. 100 million of paid up capital by a group of successful entrepreneurs. It is not only a conventional Bank. It’s a modern, dynamic private commercial bank & plays a constructive role in the economic development of the country. Prime bank is the first private bank to introduce lease finance, hire purchase & customer credit schemes along with Islamic banking services in the banking sector in order to bring about qualitative changes in the lives of people of Bangladesh.

PBL through its steady progress & continuous success has, by now, earned the reputation of being one of the leading private sector Banks of Prime Bank mainly caters to the trade finance market.

Manufacturing activity in Bangladesh is relatively subdued, but there are certain industries such as textiles, where the country has a competitive advantage.

Many textiles manufacturers export their merchandise (garment exporters for example) and it is this customer segment that the bank mainly caters to. In addition to conventional interest-based banking, Prime Bank operates two branches (completely separate from conventional banking) on the
Islamic Shariah principle; however, Islamic banking operations are relatively small and constituted only about 5% of the conventional banking. Prime Bank Limited aims to become one of the top-performing banks by prudent financing, to earn sustainable profit & rendering ofservices to customers more efficiently & effectively. The vision and mission statements, efforts, strategies in their words are given below:
VISION;
To be the most private Commercial Bank in Bangladesh in terms of efficiency, capital adequacy, asset quality, sound management and profitability having strong liquidity.
MISSION :

To build PBL into an efficient, market driver, customer focused institution with good corporate governance structure.
Continuous improvement in our business policies, procedure and efficiency through integration of technology at all levels.

EFFORTS ARE FOCUSED :
On delivery of quality service in all areas of banking activities with the aim to add increased value to shareholder’s investment and offer highest possible benefits to our customers.

STRATEGIC PRIORITIES:

To have sustained growth, broaden & improved range of products and services.

1.3 Portrait of IFIC Bank Ltd
History of the Bank
International Finance and Commerce Bank Limited (IFIC Bank) is a banking company incorporated if the People’s Republic of Bangladesh with limited liability. It was set up at the instance of the government in 1976 as a joint venture between Government of Bangladesh and sponsors in the private sector with the object of working as a finance company within the country and setting up joint venture banks/financial institution abroad. The government held the sponsors and general public held 49% shares and rest 51 %. In 1983 when the government allowed banks in the private sector, IFIC was converted into a full-fledged commercial bank and started banking operation on June 24,1983. The Government of Peoples Republic of Bangladesh now holds 35% of the share capital of the bank. Leading industrialists of the country having vast experience in the field of trade and commerce own 34% of the share capital and the general public holds the rest.
Bank’s mission statement

Our mission is to provide service to our clients with the help of a skilled and dedicated workforce whose creative talents, innovative actions and competitive edge make our position unique in given quality service to all institution and individuals that we care for.
We are committed to the welfare and economic prosperity of the people and the community, for we derive from them our inspiration and drive for onward progress to prosperity.
We want to be the leader among banks in Bangladesh and make our indelible mark as an active partner in regional banking operating beyond the national boundary.
In an intensely competitive and complex financial and environment, we particularly focus on growth and profitability of all concerned.
Board of Directors
Unlike other banks in the private sector, Board of Director of the Bank is an unique combination of both private and Government sector experience. Currently it consists of nine Directors. Of them four represent the sponsors and seniors officials in the rankand status of Join/ Additional Secretary represent the Government. Managing Director is the ex-officio Director of the Board.

Corporate Directory

Board of Director

Chairman
Manzurul Islam

Vice-Chairman
Eltham B. Kabir
Directors
A.M. Agha Yusuf
Syed Mohsen Ali
Shafiul Islam
Maj. Gen. (Rtd) Dr. A.R. Khan
Abdul Hamid Chowdhuary
Khairuzzman Chowdhuary
Mohammed Delwar Hussain
Habib Abu Ibrahim
Dr. Chwdhuary Saleh Ahmed

Managing Director
Ataul Haque

Capitals

IFIC Bank has been consistently maintaining the “Capital Adequacy Ratio” as prescribe by Bangladesh Bank (Central Bank). This has been made possible by adopting a policy of building up both capital and reserves. It started with an Authorized and Paid-up Capital of Tk. 100 million and Tk. 63.20 million respectively in 1983. Authorized and Paid-up capital increased to Tk. 500 million and Tk. 406.39 million respectively In addition to Paid-up capital, the Bank has build up a strong reserve base over the years. As against only Tk. 21.20 million in 1983, reserve and surplus increased to Tk. 622.53 million in2001. Besides, the Bank had 1% General Reserve worth Tk. 293.32 million as on December 31,2001.

Strength and performance
With the active support and guidance from the Government, Central Bank, clients and patrons, the bank has being maintaining sound financial position and showing a steady and impressive business performance. IFIC Bank is the one of the few mentionable
banks, which maintains Capital Adequacy ratio and has more then required provision as per Bangladesh Bank criteria.Starting with the modest deposit of only Tk. 863.40 million in 1983, the bank had close its business with a deposit of Tk. 18719097 million as of 31st December, 2002. Total credit stood at Tk. 19502.80 million as on 31.12.2002 against Tk. 18189.70 million in the last year. Bank has posted a pre-tax (un-audited) profit of Tk.451.20 million during the year ended 31st December 2002.

Branch network (domestic)

The branch of the bank covers all the important trading and commercial centers in Bangladesh. As (BML)’ at the request of the Government of Republic of Maldives. This is the only national bank in that country having branches throughout the country. IFIC Bank managed the affairs of BML from 1983 to1992. IFIC Bank sold its shares in 199 to the government of the Republic of Maldives and handed over the management of BML to Maldives Govern Oman-Bangladesh Exchange Company (LLC): IN 1985 IFIC Bank established an Exchange Company named ‘Oman-Bangladesh Exchange Company (LLC)’ in the Sultanat of Oman. IFIC holds 25% of its shares and Omani sponsors hold the balance exchange company has at present 7 branches functioning in almost all the major cities/town of Oman. The operations of these branches are fully computerized having online system. The name of the exchange company was recently changed to ‘Oman International Exchange (LLC)’. The affairs and business of the exchange company run and managed by IFIC Bank under a Management contract.

Nepal-Bangladesh Bank Limited: In December 1993 the bank got the permission to established a joint venture bank with 50% equity in Nepal. The bank known as ‘Nepal Bangladesh Bank Ltd
(NBBL)’ came into operation in June,1994. This is the first joint venture bank between the two countries. As per terms of joint venture agreement, Management of the bank is vested with the

IFIC Bank. Within one year of its operation this bank reached break even. It has now 15 branches.Nepal-Bangladesh Finance and Leasing Company Limited: IFIC Bank has also established a joint venture Finance and Leasing company in Nepal in 1999 with 30% equity under the name and style of ‘Nepal-Bangladesh Finance and Leasing Company Limited’.

1.4 Organizational Overview of NCCBL
Historical Background
National Credit and Commerce Bank Limited bears a unique history of its own. The organization started its journey in the financial sector of the country as an investment company back in 1985. The aim of the company was to mobilize resources from within and invest them in such way so as to develop country’s Industrial and Trade Sector and playing a catalyst role in the formation of capital market as well. Its membership with the bourse helped the company to a great extent in this regard. The company operated up to 1992 with 16 branches and thereafter with the permission of the Central Bank converted in to a full fledged scheduled private commercial bank in May, 1993 with paid up capital Tk.39.00 crore to serve the nation from a broader platform.During last 12 years of its operation NCCBL has acquired commendable reputation by providing sincere personalized service to its customers in a technology based environment.
The Bank has set up a new standard in financing in the Industrial, Trade and Foreign exchange business. Its various deposit and credit products have also attracted the clients both corporate and individuals who feel comfort in doing business with the Bank.

The initial authorized capital of the Bank was Tk.75.00 crore and paid up capital Tk.19.50 corer at the time of conversion which is now raised to Tk.39.00 crore. The present authorized capital is Tk.250.00 crore and paid up capital is Tk.60.78 crore. The sponsors of the new bank consisted of 26 Members who comprised the first Board of Directors. The share price of the bank is currently being quoted at both Dhaka and Chittagong bourses at and average price of Tk.320.00 against per value of Tk.100.00.NCC Bank based upon its commendable business performance for the year ended 2004, has meanwhile declare stock dividend at the rate of 30%.

The Bank which started with 16 branches in 1993 has at present 36 (thirty six) branches and 03 (three) booths located in prime commercial areas of Dhaka, Chittagong, Sylhet, Feni, Khulna, Jessore and Rangpur district head quarters outof which as many as 17 (seventeen) are authorize d dealer branch3es,fully equipped dealing in direct foreign exchange businesses. NCC bank is now positioned to best suit the financial needs of its customers and make them partners o f progress.
Types of business
NCCBL was licensed as a scheduled bank. It is engaged in pure commercial banking and providing services to all types of customers ranging from small and medium enterprises to large business organizations. It is working for the economic welfare by transferring funds from the surplus economic unit to those who are in deficit.
Vision
The purpose of the bank is to become ‘the bank of choice’ in the communities they serve. The bank accomplishes this by offering to their customers the financial services which is expected by their customers while providing a return to their owners. In accomplishing this mission, the bank has now been free from all the natures of a problem bank through fulfilling all the conditions set by the central bank. They proudly say: “NCCBL is profit making and problem free.”
Mission
NCCBL shall be at the forefront of national economic development by:

Anticipating business solutions required by all NCCBL’s customers everywhere and innovatively supplying them beyond expectation.
Setting industry benchmarks of world class standard in delivering customer value through our comprehensive product range, customer service and all our activities.
Building and exciting team based working environment that will attract, develop and retain employees of exceptional ability who help celebrate the success of bank’s business of bank’s customers and of national development.
Maintaining the highest ethical standards and a community responsibility worthy of a leading corporate citizen.

Continuously improving productivity and profitability and thereby enhancing shareholder value.
NCC B.LTD- At present
Like clothes, shops, candy shops, bakeshops, food shops, NCCBL is nota “debt shop” the term being used by many to call the present say banks. It is now been called a modern bank that undertakes all its operations at an international standard.Having started its operations as a commercial bank in 1993 recovering from some primary difficulties. NCCBL has now emerged as a major player in the financial sector. The bank has been able to attain a commendable CAMEL rating and it performance has been outstanding in terms of profitability for the year ended 2000. Listed in both the Dhaka and Chittagong bourses since late 1999 with an IPO that raised the paid-up capital of the bank to Tk.39 crore, the current price levels of its shares and turnover in trading is evidence of its high rating among investors Banks are the pillars of the financial system. Specially, in Bangladesh, the health of the banking system is very vital because the capital market is little developed here. As the banks are still the major sources of credit and exercise great influence on the financial system, it is extremely important that the country’s banking system should be in good health in the interest of investment activities, meeting the needs of all kinds of finance and related matters. Over the years, NCCBL has built itself as one of the pillars of Bangladesh’s financial sector and is playing a pivotal role in extending the role of the private sector of the economy.Under the dynamic guidance of its Board of Directors headed by Chairman Mr. Nurul Islam, the current management has been arching ahead with new zeal to reach it goal in 2001
1.5 Historical Background of Shahjalal Islami Bank Limited.
Shahjalal Islami Bank Limited is based on Inslamic Shariah. SJIBL is named after the name of a saint Hajrat Shahjalal Ò who dedicated his life for the cause of peace in this world and hereafter and served the humanity. It was incorporated as a Public limited company on 1st April, 2001 under companies Act 1994. It started its Banking operation on May 10, 2005 with the 1st branch(main branch) opened at 58, Dilkusha C/A, Dhaka, obtaining the license of Bangladesh Bank, for upliftment of economic condition of its customers as well as to contribute sustainable economic growth and development in trade and industry of the country. Its corporate head

quarter is situated at 10, Dilkusha Commercial Area, Jiban Bima Bhaban, Dhaka – 1000 Bangladesh. Now it has 12 branches 9 branches are in Dhaka and rest 4 branches are in Chittagong, Sylhet and Gajipur. The sponsors of SJIBL are leading business personalities and renowned industrialist ofthe country. Now this bank has paid up capital – 46.83 million and No. of Directors – 13 (source – Internet).
Objectives of Shahjalal Islami Bank Limited
The prime objective of Shahjalal Islami Bank Limited is to promote, foster and develop the application of Islamic principles, law and tradition to the transaction of financial, banking and related business affairs. It has also been looking forward to promote Investments Companies, Enterprise and other related concerns engaged in such business that is acceptable and consistent with Islamic principles, law and tradition. The objectives of Shahjalal Islami Bank Limited in the context of its role in the economy may be enumerated as follows:
To offer contemporary financial services in conformity with Islami Shariah.
To contribute towards economic development and prosperity within the principles of Islamic Justice.
To facilitate efficient allocation of resources.
To help achieving stability in the economy.

Visions and Mission

Vision:
To provide quality services to customers.
Te set high standards of integrity.
Te extend customers innovation services acquiring state-of-the-art technology blended with Islamic Principles, and being total satisfaction to our clients and employees.
Mission:
To expand Islamic banking through welfare oriented banking system.
Ensure equity and justice in economic activities.
Extend financial assistance to poorer section of the people.
Achieve balance growth and equitable development.

Organizational Structure
There are five different wings to consists the organizational structure of SJIBL.They are
• Board of Directors
• Board Committees
• Executive Committee
• Policy Committee
• Management Team
1 Board of Directors
The Board of Directors of 13 members the Board of Directors is the apex body of the bank.

2 Board of Committees
The Board of Directors also decided the composition of each committee and determines the responsibilities of each committee.
3 Executive Committee
All routine matters beyond delegated powers of management are decide upon by or routed through Executive Committee, subject to ratification by the Board of Directors.

Chapter Two

An overview of EXIM Bank

2.1 Background of the Bank
2.2 Organizational structure
2.3 Mission
2.4 Vision
2.5 Objective
2.6 Management of EXIM
2.7 Overall growth

An overview of EXIM Bank
EXIM Bank Ltd is the name of a newly formed commercial bank but is the first of its kind in Bangladesh. It has been incorporated in Dhaka, EXIM Bank Limited as a public limited company and its head office is located at Printers Building, 5, Rajuk Avenue, Motijheel Commercial Area Dhaka 1000.In the world of consumerism, the business organization of the world strive for the consumers satisfaction as a number one business strategy whatever may be the product of the organization, either service or non-service. Service is the product a bank. There is a saying that customer service starts right from the stairs of the bank building. The guard at the door is the first person represents of the bank, receives a customer with wishes in smiling face.
2.1 Background of the organization
Export Import Bank of Bangladesh Limited (EXIM Bank) is a private commercial bank 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 with the vision to stand out as a pioneer banking institution in Bangladesh. It was incorporated in 2nd June 1999 as a public Limited company under the companied act 1994 to carry out traditional banking business in Bangladesh and started its banking operation from 3rd August 1999 under the banking company Act 1991 with Mr. Alamgir Kabir, FCA as the advisor and Mr. Mohammad Lakiotullah as the Managing Director with the authorized capital of TK. 1000 million and initial Paid-up capital of TK. 225 million 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 .Export Import Bank of Bangladesh Limited (EXIM Bank Ltd) was named before as Bengal Export Import Bank Limited (BEXIM Bank Ltd.) being newly formed commercial Bank of the country with a distinctive identity. Export Import Bank of Bangladesh Limited is a 3rd generation bank in our country and has been rendering an important service thedevelopment of economy since its inception. As a commercial bank, the bank provides all traditional banking business including the wide

range of savings and credit scheme products, retail banking and ancillary services with the support of modern technology and professional Excellency.
2.2 Organization Structure:
In the organization structure of the bank chairman is the head of the board of directors. There is one managing director, also the president who controls and supervises the main division of the bank. There is one Deputy Managing director who reports to him. Four Executive Vice presidents (EVP) and one Senior Executive Vice President (SEVP) report to the Deputy Managing Director. Executive Vice Presidents controls the credit with the help of four vice presidents who work under Executive Vice Presidents. Senior Executive Vice President controls the human resources and marketing division. The organizational hierarchy of EXIM BANK almost horizontal, which can show by the following:
2.3 Mission
• To maintain Corporate and business ethics.
• To make stock superior and rewarding to the customers/ share holders.
• To display team spirit and professionalism.
• To provide high quality financial services in export and import trade.
• To provide excellent quality customer service.
2.4 Vision
• To be the pioneer bank in the banking arena of Bangladesh under the Shariah guidelines and contribute significantly to the national economy.
• To provide standard financial services.
• Wealth maximization.
2.5 Objectives
To receive, borrow or raise money through deposits, loan or otherwise and to give guarantees and indemnities in respect of al debts and contracts.

• To establish welfare oriented banking systems.
• To play a vital role in human development and employment generation to invest money in such manner as may vary from time to time.
• To carry on business of buying and selling currency, gold and other valuable assets.

• To extend counseling and advisory services to the borrowers/ entrepreneurs etc. in utilizing credit facilities of the bank.
• To earn a normal profit for meeting the operational expenses, building of reserve and expansion of activities to cover wider geographical area.
2.6 Management of EXIM Bank
Management is the process of planning, organizing, leading and controlling the work of organization members and of using all available organizational resources to reach stated organizational goals. The strength of a bank depends of the strength of its management team. EXIM Bank is proud to have a team of highly motivated, well-educated and experienced executives who have been contributing substantially to the continued progress of the bank.
Managerial effectiveness has been measured in EXIM Bank in terms of come selected criteria such deposit mobilization, loans and advances made, loan recovery, profitability and productivity. It has been found that EXIM bank is effective in respect of branch expansion, loan disbursement, loan recovery etc.

With a short spam of time, EXIM Bank has become one of the leading and most successful bank not only among the third generation banks but also it superseded many other banks and financial institutions belonging to second and even first generation banks fro the point of view of its excellent business performance, extraordinary corporate culture and strong team work under the dynamic leadership of its management. Management is trying to support and assist well-motivated and experienced affairs to run the day to day affairs of the bank smoothly For maintains quality management, it is required to train-up more official at head office and branch level in respect of sanctioning, disbursement and recovery of credit, project appraisals, customer services etc.

Human resource management of EXIM Bank
Hunan resource is the fundamental asset of the organization. Human resource approach is concerned with the growth and development of people toward higher level of competency, creativity and fulfillment. Therefore, human resources development has been given its due importance in an environment that values performance, teamwork, fairness and integrity, it

has both qualitative and quantitative dimension. EXIM Bank recognizes that intellectual capital is the most important asset for a financial institution
Without proper and efficient human resources, no organization can run its operations. The bank believes that the professional competence bank personnel and its commitment for accomplishing assigned responsibilities are a first line of defense to prevent irregularities.
The objectives of Human Resource management of EXIM Bank are as follows:
• Conducting job analysis
• Planning employee needs and recruiting job candidates
• Selecting ob candidates
• Orienting and training new employees
• Managing wages and salaries (Compensating Employees)
• Providing incentives and benefits
• Appraising performance
• Training and developing managers
• Building employee commitment
• The hierarchical position of human resources in EXIM Bank Ltd. is shown in
Profile of EXIM Bank
. EXIM Bank Ltd at a Glance
• Establish : 1991
• Incorporated : 2nd June, 1999
• Activity Starts : 3rd August, 1999
• Islamic Banking : 1st July, 2004
• Legal Status : Public Limited Company
• Authorized Capital : Tk.1000Million
• Paid up Capital : Tk.878.85 Million
• Reserve Fund : Tk.2179.81 Million
• No. Of Branches : 28 (Twenty eight)
• Proposed Branches : 08 (Eight)
• No. Of employees : 934
.

2.7 Growth of the Bank

Chapter Three

BANKING OPERATION IN VARIOUS DEPT.

3.1 General Banking division
3.2 Foreign Exchange division
3.3 Loan and advances

Banking operation in various departments

3.1GENERAL BANKING ACTIVITIES
General Banking activities is the starting point and main function of all the banking operations. It is the department, which provides day-to-day service to the customers. Everyday it collect deposit from the customers by allowing borrowing interest rate, meets their demand for cash by honoring cheques and lend it to the customers against lending interest rate. Lending interest rate is higher then borrowing interest rate, difference between borrowing interest rate and lending interest rate is the profit for the bank. It opens different types of accounts, remit funds, issue demand draft, telegraph transfer, pay order etc. since bank is confirmed to provide the services everyday general banking is also known as “Retail Banking’.
Divisions of General Banking in EXIM Bank Ltd:
Account Opening
Clearing Section
Remittance Section
Cash Section

Account Opening Section
Bank account is a contractual relationship between a bank and the customers. It is the best way for a customer to built relationship with the bank. Like interest-based conventional banks, the main function of EXIM Bank Ltd. is to mobilize saving and provide financial support to the entrepreneurs. Depositors receive interest in a predetermined rate for their deposits make with an interest based banks, where EXIM Bank Ltd. neither pay not receive interest and mobilizes saving of the common people in line with Islamic Shariah.
Deposit account can take on a various forms such as:
Al – Wadiah Current Deposit (AC)
Mudarabah Saving Deposit (MSD)
Short – Term Deposit (STD)
Mudaraba Term Deposit Receipt

Al – Wadiah Current Deposit (ACD)

EXIM Bank Ltd .received deposits in its Al – Wadiah Current Account. It has some similarity with the current account of conventional bank. The term Al – Wadiah Current
Deposit means deposit of money allowing somebody to sue it. Banks being a trustee preserves and keeps or in safe custody of what is deposited. Depositors feel safe in keeping their money with the bank and take transaction facilities. Bank provides assurance of returning money to the depositors on demand. In the process of opening Al-Wadiah Deposit, the bank gets approval of the depositors regarding the use of the deposited money and earns profit out of their development. Any losses incurred by way of such investment are totally borne by the Bank. Thus, the depositors don’t take the risk of losses with Al-Wadiah Current Deposit, they also don’t expect any profit form it. Depositors are provided with cheque book. They can withdraw or deposit any amount as and when they like. Bank may charge a fee in the account. Al-Wadiah Deposits are short terms and very uncertain, thus banks have to be very useful in the investment of money from this account.

General Documentation requires for opening a (ACD):
a) For a Individual Customer:
Copy of the Passport, if available or Employer’s Certificate of Commissioner’s Certificate or Letter of Introduction by a person acceptable to the Bank.
TIN Certificate, if applicable.
Two recent passport size photographs duly attested by the Introducer.

b) For Sole Proprietorship:
Copy of Trade License.
Two recent passport size photographs of the Proprietor/Signatory duly attested by the Introducer.
Copy of the passport of the Proprietor/Signatory, if available or Commissioner’s/Chairman’s Certificate or Letter of Introduction by a person acceptable to the Bank.
TIN Certificate.
c) For Partnership:
Copy of the Partnership Deed of the Firm.

List of Partners with their address and phone number.
Copy of Trade license.

Extract of Resolution of the Partners of the Firm for opening the account and authorization for its operation duly certified by the managing Partner of the Firm.
For Registered Partnership, Certificate of Registration of the Firm along with duly certified copy of the Partnership Deed.

Two recent passport size photographs of each Partner/Signatory duly attested by the Introducer.
Copy of the Passport of each Partner/Signatory, if available or Commissioner’s/Chairman Certificate or Letter of Introduction by a person acceptable to the Bank.
TIN Certificate.
d) Private & Public Limited Company:
Certified true copy and Article of Association of the Company.
Certified true copy of Certificate of Incorporation of the Company.
Certified true copy of Certificate of Business of the Company, in case of Public Limited Company.
Latest list of Directors with address and phone number along with Form XII.
Extracts of the duly adopted Resolution of the Board of Directors of the Company for opening the Account and authorization for its operation duly certified by the Chairman/Managing Director of the Company.
Copy of Trade License.
Two recent passport size photographs of each signatory duly attested by the Introducer.
Copy of the passport of each Signatory, if available or Commissioner’s/Chairman’s Certificate or
Letter of Introduction by a person acceptable to the Bank.
TIN Certificate.
Opening a Mudaraba Saving Deposit (MSD):
Mudaraba Saving Deposit (MSD) is open by the lower and middle classer people who wish to
save a part of their incomes to meet their future need intend to earn an income from their
savings. It aims at encouraging savings of non-trading person(s), institution(s), society, etc. by
depositing small amount of money in the bank.

Restriction on withdrawals and deposit:
The number of withdrawals over a period of time is limited. Two withdrawals per week are permitted. But more than that no interest will be paid on rest amount for that montThe total amount of one or more withdrawal on any date should not exceed 25% of the balance in the account unless 7 (seven) days advance notice is given.
The customer may deposit any amount in the savings bank account subject to a minimum of Taka. 2000/- in the account.
Payment of Profit:
EXIM Bank Ltd. is providing 8.5% profit on Mudaraba Saving Deposit.

Opening a saving account:
For Opening a Mudaraba Saving Deposit following documentation are required:
Two copies of passport size photographs.
Introductory reference.
Commissioner’s/Chairman Certificate.
General Precautions of opening an MSD Account: After opening an account and before issuing a Chequebook the authorized officer should check the account opening form for the complete information, which is given by the customers:
Name of the account holder.
Photos of the account holder.
Date of opening.
Types of account
Present & permanent address.
Name of nominee and their address.
Specimen signature in the form and in the “Specimen signature card”.
Name, address, and the account number of the introducer

Mudaraba Short – Term Deposit (STD):
EXIM Bank Limited also receives short-term deposit from the clients. The SND account is different from the interest – based banks. It is also a Time Deposit account. The formalities for opening of this account are similar to those required for Al-Wadiah Current Account. The only difference is that seven (7) days notice is required minimum balance of tk. 50000. The rate of profit for this account is 6.50%. If the withdrawal on demand is desired, it may be paid subject to the forfeiture of profit for the period of notice or the expired of notice.

Mudaraba short term

It is like a fixed deposit in the conventional baking system but it does not receive or accept interest father, this account give profit and collect deposits. In this mode less that Tk. 1 crore or Tk. 1 crore and above can be deposited against client will get non-transferable instrument of equal amount. If a customer withdraw his/her money before one month than he/she will not get any kind of profit. On the other hand, after the matured if client don’t withdraw his/her money than it will be auto renewed with imposed profit for the next days. If a depositor would like to withdraw his profit after six months he/she will get the profit accordance with previous years profit rate. After the announced yearly profit or loss, if bank felt in loss positing then the depositor bound to incur the loss. In absence of account holder the selected nominee will get the money. Account holder bound to bear any kind of tax or excise duty according to government circular. The profit rates of this account are:

Mudaraba Super Savings Scheme (MSSS):

The EXIM Bank Ltd. gives the facility to the client by the Islamic Shariah Mudaraba rules and regulations. In this scheme depositors can deposit minimum than Tk. 5000/- for 6 years and after the maturity date accountholder will receive double than his/her deposited amount. Depositor will get 80% investment facility by deposit the deposit receipt. Bank can invest this amount any sector by the Islamic Shariah rules and regulations. Accountholder are bound to pay any government tax. For opening this account applicant need recent one copy photograph and one copy photograph of nominee. The profit rates of this account are:

Super Savings Scheme (Double) Minimum Requirement Tk. Approximate Tk. After Maturity
06 Years 5,000.00 10,000.00

Mudaraba Multiplus Scheme (Triple)
Under this scheme the depositor’s money will be almost triple in 10 years period. Any individual, company, educational institution, government organization, NGO, trust, society etc can invest their saving under this scheme.
Multiplus Savings Scheme (Triple) Minimum Requirement Tk. Approximate Tk. After Maturity
10 Years 5,000.00 15,000.00
]
Mudaraba Hajj Scheme:
In order to smooth arrangement of fund for performing Hajj, the bank has introduced this scheme for 5, 8, 10, 15, &20 years periodfacility by transfer funds from one place to another. Some of the instrument that EXIM Bank Ltd., Foreign Exchange Branch provides are immense beneficial to the client.
Remittance
facility by transfer funds from one place to another. Some of the instrument that EXIM Bank Ltd., Foreign Exchange Branch provides are immense beneficial to the clients. These are:

Demand Draft (DD)
Pay Order (PO)
Telegraphic Transfer (TT)
Demand Draft (DD):
Demand Draft is an order of issuing bank in another branch of the same bank to pay specified sum of money to the payee on demand. It is generally issued when customer wants to remit money in any place which is out side of the clearinghouse area of issuing branch payee can be purchaser himself or another. Bearing money may be risky. It is anegotiable instrument and it can be crossed or not. For payment of DD, paying branch first has to be confirmed that the DD is not forged one.First bank Cheques the “Test Code” mentioned on the draft. If “Taste Code” agrees then believe that DD is not forged and makes payments. For further confirmation, the issuing bank sends an advice about the DD to the paying branch. For DD, commission is taken in the following way:
Particulars Charges
Commission @ 0.1% Minimum Tk. 25.00
VAT @ 15 % of commission
Postage Tk. 20

Pay Order (PO):
This is very important instrument of the Bank. Pay Order gives the payee the right to claim payment from the issuing bank. It can be en-cashed from issuing bank only. Unlike Cheque, there is no possibility of dishonoring pay order because before issuing pay order bank takes out the money of the pay order in advance. Pay order cannot be endorsed or crossed and so it is not negotiable instrument. Pay Order commission is like this:

Telegraphic Transfer (TT):
Telegraphic Transfer is the quick service system than others. By this method money is transfer to another place by telegraphic message. The sender branch will request another branch to pay required money to the required payee on demand. Generally for such kind of transaction payees should have account with the paying bank. Otherwise it is very difficult for the paying bank to recognize the exact payee. Test code is also furnished on the TT message for the protection of it. When sending money is urgent then bank use telephone for remittance. This service is only provided for valued customers. Who is very reliable and have long-standing relationship with bank, TT commissions are:
Particulars Charges
Commission @ 0.15% or Minimum Tk. 25.00
Telephone Charge Tk. 50

Foreign Remittance:
Outward Remittance;
Most outward remittance is approved by the Add on behalf of the Bangladesh Bank following declaration of Taka as convertible for current account payments from March, 1994. Only a few remittances of special nature require Bangladesh Bank’s prior approval.All remittances from Bangladesh to a foreign country or local currency credited to on resident Taka accounts of foreign banks or convertible Taka account constitutes out ward remittances of foreign exchange. Add must exercise greatest caution to ensure that foreign currencies remitted or released by them are used only for the purpose forwhich they are released; they should also maintain proper records for submission of returns to Bangladesh Bank as also for the letters inspection from time to time.It is most important that, once forms have been approved by or on behalf of the Bangladesh Bank, the Add carry out the transactions only on behalf of the original applications
for which the forms were approved. Permits issued (where applicable) by the Bangladesh Bank must be utilized within the period of its validity indicated in the permits. The amount released

must not exceed the Authorized limit.Also instructions, if any given in the permits with regard to he amounts to be released periodically e.g. monthly or quarterly must be strictly adhered.

Inward Remittance
The term inward remittance includes not only remittances by T.T, draft, etc. but also purchase of bills, purchase of Travelers cheque. Inward remittance covers purchase of foreign currency sent from abroad favoring a beneficiary bank in Bangladesh. Remittance receives against export should be certified and reported on EXP forms. In case of remittance received in advance for exports the AD should obtain a signed declaration from the beneficiary on the back of the “Advance Receipt Voucher” certifying the purpose of remittance.
Activities of Clearing Department
On behalf of the customer bank receives their proceeds of instruments such as Drafts, Cheques, Pay Order and sends for collection through these methods:
Outward Bills for Collection (OBC) and Inward Bills for Collection (IBC) (within the clearinghouses area)
Clearing Department works can be classified in two way:
Outward Clearing
Inward Clearing
Outward Clearing:
The instruments drawn on other banks, within the clearinghouse area, are deposited through our clients are sent for collection is called outward clearing.
Procedure for Outward Clearing:
Instrument receivedCheck these items in the instrument: a) date b) branch c) amount in words and figure d) signatureSpecial crossing seal, clearing seal, endorsement seal as “ Payees A/C crEntry in the Outward Clearing Register.
; When we receive cheque drawn on our branches within the clearinghouse area presented by other banks is known as inward clearing
Procedure for Inward Clearing:
Instrument (DD/Cheque/PO) comes from principal office

Entry in “Inward Register”
Cheque – in computer
DD – DD payable
Pay Order respective register
Sign in the register by authorized officer
Cancellation of instrument
Send IBCA to Local Office for honored instrument
Send Return memo, showing cause, to Local Office for dishonored instrument
Transfer Delivery
Transfer Delivery is of two types:
Outward
Inward
Outward Transfer Delivery:
Instrument send for collection to other branches is outward transfer delivery. Its procedure is like this:
Receive instrument
Special crossing seal, transfer delivery seal, endorsement as “payees A/C will be credited”
Entry in “Outward transfer delivery” register
Schedule enclosed.

Receive IBCA and credit the party A/C
Inward Transfer Delivery:
When instrument come to our branch for collection then it is called inward transfer delivery. Its procedure is as follows:

Receive instruments
Verification of following items is taken.
Branch
Date;
Amount in words and figure
Signature;
Serial number
Entry in “Inward transfer Delivery” register
Voucher
IBCA issue
Activities of Cash Department
Cash department is the most vital department of a bank and it is call blood of a bank. It is a platform to communicate with customers. Cash department receives & pays cash directly.
In the cash department there are following register:
Vault register
Cash received register
Cash payment register
Cash balance registe
Rough cash Balance book.
Cash remittance register
Key register
Cash position memo.

There is a procedure of cash-in & cash-out from the vault. Also a systematic procedure is maintained for receiving cash through different vouchers and payment against different cheques & vouchers.
Vault Opening:
The Vault opened with two different keys of two respective authorized officers. The officers are:
Manager of the Branch
Cash – in – charge Officer
Strong room has two keyholes opened by two officers respectively by two keys of cash. Generally sub-manager of the Branch bears authority absence of manager. Grill door
one keyhole opened by – two keys of two officers and bring out following thing: Cash, Vault register, Receive register, Payment register, Balance Book, Security stationary. Enter the amount of cash withdrawal from the vault register.

Cash Receiving Procedure:
Cash is the life of a bank. Different types of form are used for cash deposits for different types of accounts. Cash may be received by the following ways:
Current of Savings account pay-in-slip
Credit voucher
Different types of instrument remittances (TT, DD, PO etc.) are received by respective forms.
Bills like National Life Insurance co. ltd
Share collection
Different types of scheme
Cash Payment:
Cash is paid in payment counter against the following instraction;
Cheques

Cash debit voucher

Pay-in-slip
Pay Order, DD etc.

Bank’s expense also paid to outsider through cash debit voucher.
Procedure:
Receive of the cheques with a signature behind it.
Scrutinize it by an authorized officer.
Submit to computer section for checking the available balance.
Cancelled & seal up “Pay in Cash” and cancellation through sign up.
Again submitted to computer section for debiting the partly A/C and seal up “Posted”
Send to cash counter – payment officer.
6. Cash officer checks the cancellation, seal and seal up “Cash Payment”
7. Entry the payments register.
8. Take another signature of payee behind the cheque and pay cash.
Cash Remittance:
Requisition letter, which must be authorized by the Manager, is sent to Principal Officer for Cash Remittance.
Inward Cash:
Counting the cash.
Prepare simple credit voucher
Prepare IBCA
Entry in the cash receipt register

Car requisition (Call through phone)
Taking counter part of forwarding (Including name & specimen) signature of authorized officer and Guard.Remit the cash Prepare simple debit voucher
Cash Balance:
At the end of the transaction:
Sum of total received
Sum up total payment
Total receiving + Opening balance – Total payment = Closing balance for that day & opening balance for the next day.
Check it with computer sheet.
Counting cash.
Entry the cash balance registerWrite cash position memo with denomination.
Position of the Cash Department:
The position of the cash department is very important. The cash department should be at a safe place. It should be at the middle position of the branch. The cash position of the Foreign Exchange Branch is in the front side of the branch and its safe and vault is at the behind.

3.2 Foreign Exchange
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. In banks 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) is the international department Bangladesh Bank 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. So EXIM Bank, Principal branch is an authorized dealer
There are three kinds of foreign exchange transaction:

1. Import
2. Export

3.2.1Import
To import, a person should be competent to be and importer’. According to Import and Export Control Act, 1950, the Office Of Chief Controller Of Import and Export 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 seekssecurity 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.
Letter of Credit ; A conditional written undertaken issued by the importer’s (applicant) bank to the exporter (beneficiary) at the request of the importer to effect payment up to a stated amount within a stated time period against presentation of complaint documents.
The LC is governed by International Chamber of commerce (ICC)publication no.500.

Steps for import L/C Operation – 8 steps operation Step 1 – Registration with CCI&E
• For engaging in international, trade, every trader must be first registered with the Chief Controller of Import and Export,
• By paying specified registration fees to the CCI&E. the trader will get [RC/ERC (Import/Export Registration Certificate), to open L/C with bank, this IRC is must
Step 2 – Determination terms of credit
• The terms of the letter of credit are depending upon the contract between the
Importer and exporter. The terms of the credit specify the amount of credit, name and address of the beneficiary and opener, tenor of the bill of exchange, period and mode of shipment and of destination, nature of credit, expiry date, name and number of sets of ship documents etc

Step 3 – Proposal for Opening of L/C
To have an import LC limit an importer submits an application to department to EXIM Bank. The proposal contains the following particular
• Full particulars of the bank account
• Nature of business
• Required amount of limit
• Payment terms and conditions
• Goods to be imported
• Offered security
• Repayment schedule
Step 4 – Application by importer to the banker to open letter of credit
• For opening L/C, the importer is required to fill up a prescribed application form provided by the banker along with the following documents:
Step 5 – Opening of L/C by the bank for the opener:
• Taking filled up application form from the importer.

• Collects credit report of exporter from exporter’s country through his foreign correspondence there.
• Opening bank then issues credit by air mail/TEL EX/SWIFT followed by L/C advice as asked by the opener through his foreign correspondent or branch as the case may be, at the place of beneficiary. The advising bank advises the L/C to the beneficiary on his own form where it is addressed to him or merely hand over the original L/C to the beneficiary if it is so addressed.

Step 6 – Shipment of goods and lodgment of documents by exporter:
• Then exporter ships the goods to the destination of the importer country.
• Sends die documents to the L/C opening bank through his negotiating bank. Generally the following documents are sent to the Opening Banker with L/C:

1. Bill of Exchange 6. Packing List
2. Bill of Lading 7. Advice Details of Shipment
3. Commercial Invoice 8. Pre-shipment Inspection Certificate
4. Certification of Origin 9. Vessel Particular
5. A certificate stating that each packet contains the description of goods over the packet. 10.Shipment Certificate

Step 7 – Lodgment of Documents by the opening Bank from the negotiating bank

After receiving the documents, the opening banker scrutinizes the documents. If any discrepancy found, it informs the importer, If importer accepts the fault, then opening bankers call importer retiring the document. At this time many thing can happen. These are indicated in the following:

• Discrepancy found but the importer accepts – no problem occurs in lodgment.
• Discrepancy found and importer not agreed to accept – In this case, importer protest and send back all the documents to the exporter and request his to make in the specified manner. Here banker is not bound to pay because the documents send by exporter is not in accordance with the terms of L/C.
• Documents are OK but importer is willing to retire the documents – In this case bank is obligated to pay the price of exported goods. Since importer did not pay for bill of

exchange, this payment by bank is one kind of credit to the importer and this credit in banking is known as PAD.
• Everything is O.K. but importer fails to clear goods from the port and request bank
to clear – In this case banks clear the goods and takes delivery of the same by paying customs duty and sales tax etc. So, this expenditure is debited to the importer’s account and in banking it is called LIM.

3.2.2 Export
The goods and services sold by Bangladesh to foreign households, businessmen and Government are called export. The export trade of the country is regulated by the Imports and Exports (control) Act, 1950. There are a number of formalities, which an exporter has to fulfill before and after shipment of goods. The exports from Bangladesh are subject to export trade control

exercised by the Ministry Of Commerce through Chief Controller of Imports and Exports (CCI & E). No exporter is allowed to export any commodity permissible for export from Bangladesh unless he is registered with CCI & E and holds valid Export Registration Certificate (ERC). The ERC is required to be renewed every year, The ERC number is to be incorporated on EXP forms and other documents connected with exports. The formalities and procedure are enumerated as follows;
1. Obtaining exports LC: To get export LC form exporter issued by the importer.
2. Submission of export documents; Exporter has to submit all necessary documents to the collecting bank after shipping of goods
3. Checking of export documents; after getting the documents banker used to
Check the documents as per LC terms
4. Negotiation of export documents; If the bank accepts the document and pays the value draft to the exporter and forward the document to issuing bank that is called a negotiating bank. IF the bank does buy the LC then the bank normally acts as collecting bank.
5. Realization of proceeds: This is the period when the issuing bank has realized the payment.

6. Reporting to the Bangladesh bank: As per instruction by Bangladesh bank the bank has to report to respective department of Bangladesh bank by mentioning latest payment.
7. Issue to proceeds realization certificate (PRC): Bank has to issue precedent realization certificate of export LC to the supplier/ exporter for getting cash assistant.
Export operation
Bangladesh exports a large quantity of goods and services to foreign households. Readymade textile garments (both knitted and woven). Jute, Jute-made products frozen shrimps, tea are the main goods that Bangladeshi exporters exports to foreign countries. Garments sector is the largest sector that exports the lion share of the country’s export. Bangladesh exports most of its readymade garments products to U.S.A and European Community (EC) countries.

Bangladeshexports about 40% of its readymade garments products to U.S.A. Most of the exporters who export through EXIM BANK are readymade garment exporters. They open export L/Cs here to export their goods, which they open against the import L/Cs opened by their foreign importers.Export L/C operation is just reverse of the import L/C operation. For exporting goods by the local exporter, bank may act as advising banks and collecting bank (negotiable bank) for the exporter,
As an advising bank
It receives documents from the foreign importer and hands it over to the exporter. Sometimes it adds confirmation on the L/C on request from the Opening Bank. By adding confirmation, it assumes the responsibility to make payment to the exporter.
As Negotiating Bank
It negotiates the bills and other shipping documents in Favor of the exporter. That is, it collects the proceeds of the export-bill from the drawer and credits the exporter’s account for the same. Collection proceed from the export bill is deposited in the bank’saccount in the importer’s country. Sometimes the bank purchases the bills at discount and waits till maturity of the bill. When the bill matures, bank presents it to the drawer to incash it.In our country, Export and Import operation of bank is very much related with one another because of use of Back to Back and maturity of payment for Back-to-Back L/C is set in such that it can be paid out of export.
Back-To- Back L/C
It is simply issued to the clients against an import L/C. Back-to-Back mechanism involves two separate L/C. One is master Export L/C and another is Back-to-Back L/C. On the strength of Master Export L/C bank issues bank to Back L/C. Back-to-Back L/C is commonly known as Buying L/C. On the contrary, Master Export L/C is known as Selling L/C.
Features of Back to Back L/C
• An Import L/C to procure goods /raw materials for further processing.
• It is opened based on Export L/C.
• It is a kind of Export Finance.

• Export L/C is at Sight but back to Back L/C is at Usance.
• No margin is required to open Back to back L/C
• Application is registered with CCI&E
• Applicant has bonded warehouse license.
• L/C value shall not exceed the admissible percentage of net FOB value of relative Master L/C.
• Usance period will be up to 180 days.
• The import L/C is opened for 75% of the value of Export L/C.
• Here L/C issued against the lien of export L/C.
• Arrangements are such that export L/C matures first then out of this export profit, import L/C is paid out.
Documents Required for Opening a Back-to-back L/C
In EXTM Bank Principal Branch, following papers/ documents are required for opening a back-to-back L/C-
1. Master L/C
2. Valid Import Registration Certificate (IRC) and Export Registration Certificate (ERC)
3. L/C Application and LCAF duly filled in and signed.

4. Perform Invoice or Indent
5. Insurance Cover Note with money receipt
6. IMP Form duly signed
In addition to the above documents, the followings are also required to export oriented garment industries while requesting for opening a back-to-back L/C –
1. Textile Permission
2. Valid Bonded Warehouse License

3. Quota Allocation Letter issued by the Export Promotion Bureau (EPB) in favor of the applicant for quota items.
Checklist of exports L/C:
Following defective points are usually found in the Master L/C. So, the bank officials so much carefully check these points. These are:
Name of the Advising Bank.
Name of Transferring Bank
Form of Doc. credit:
Name of Issuing Bank
Documentary Credit No. and issuing date
Date of shipment
Expiry date and place
Applicant/ for order of/ On Account.
Beneficiary/ Favoring
Amount
Availability of Credit
Partial shipment/ Transshipment

Payment condition /Draft Sight
Category
Description of goods:
Item
Total Qty

Unit price
B/L Clause
Reimbursement clause.
UCPDC Clause
Net FOB value.
Payment of back to back L\C
In case back to back as 60-90-120-180 days of maturity period, deferred payment is
made. Payment is given after realizing export proceeds from the L/C issuing bank.
L/C under EDfF.
• Exporter development Fund is created by Bangladesh Bank to give encourages to the exporter in Bangladesh.
• Generally Back-to-Back L/C is Usance L/C that is here bill of exchange is payable after some maturity date say 90 or 120 days after the date of acceptance/negotiation. But some foreign seller may require sight payment. Here import L/C matures first. In that case Bangladesh Bank gives me fund to the bank to pay the price of imported goods in favor of the local purchaser of raw materials. When export proceeds come, first Bangladesh Bank loan to the importer is adjusted and remaining part goes to the importer of raw materials.
Negotiation of exports documents:
The most common method of financing exporters is negotiation of documents under L/C. It is a post-shipment credit. Here the bank acts as a negotiating bank. After the shipment of the goods, the exporter submits the relative documents to the branch for negotiation. The documents are to submit within the period mentioned in the L/C. after approval of negotiation of the bill the full particulars of the documents are entered into the Foreign bill Purchased (F.B.P) register. The documents are sent to the L/C opening branch with a forwarding letter. The branch claim reimbursement from the issuing bank or from the reimbursing bank, giving clear instructions to credit the proceeds of the bill to the EXIM Bank head office NOSTRO A/C maintained with thenamed correspondent bank abroad under telex intimation to the Principal branch and Head

Office (International Division). Negotiation stands for payment of value to the exporter against the documents stipulated in the L\C. If documents are in order, EXIM Bank purchases (negotiates) on the basis of banker- customer relationship. This is known as Foreign Documentary Bill Purchase (FDBP).If the bank is not satisfied with the documents submitted to EXIM Bank gives the exporter reasonable time to remove the discrepancies or sends the opening bank for collection. This is known as Foreign Documentary Bil for Collection (FDBC)

Mode of payment of export bill under L/C:
As per UCPDC 500, 1993 revision there are four types of credit. These are as follows:
Sight Payment Credit: In a Sight Payment Credit, the bank pays the stipulated sum immediately against the exporter’s presentation of the documents.

Deferred payment Credit:
In deferred payment, the bank agrees to pay on a specified future date or event, after presentation of the export documents. No bill of exchange is involved. Payment is given
to the party at the rate of D.A 60-90-120-180 as the case may be. But the Head office is paid at T.T clean rate. The difference between the two rates us the exchange trading for the branch.

Acceptance credit:
In acceptance credit, the exporter presents a bill of exchange payable to himself and drawn at the agreed tenor (that is, on a specified future date or event) on the bank that is to accept it. The bank signs its acceptance on the bill and returns it to the exporter. The exporter can then represent it for payment on maturity. Alternatively he can discount it in order to obtain immediate payment.

Negotiation Credit:
In Negotiation credit, the exporter has to present a bill of exchange payable to him in addition to other documents that the bank negotiates.

EXIM BANK LC nature of code
• Cash LC (sight) Foreign – 01
• Cash LC (usance) Foreign – 02
• Inland back to back LC (sight) – 03
• Inland back to back LC (usance) – 04
• Foreign back to back LC (sight) – 05

• Foreign back to back LC (usance) – 06
• LC under AID/Loan ED – 07
• LC under STA – 08
• Import from EPZ (cash LC) (sight) – 09
• Import from EPZ (cash LC) (usance) – 10
• Import form EPZ (B/B LC) (sight) – 11
• Import from EPZ (B/B LC) (usance) – 12
• Others (LC) cash LC Local sight or usance – 99

EXIM BANK BACK-TO-BACK LC COMMISSION
• Back to Back (Foreign):
1st quarter- 0.50%
(LC issue date to asperity date with in 90 days than 90 days (0.50%+0.30% = 80%)
Back to Back (foreign) other charge
Data max charge – 1000
Swift – 3000
Stem – 150

• Back to Back (Local):
1st quarter- 0.50%
(LC issue date to expiry date with in 90 days than 90 days (0.50%+0.30% = 80%

• Back to Back (Sight Local) :

1st quarter- 0.50%

(LC issue date to expiry date with in 90 days than 90 days (0.50%+0.30% = 80%).
• Export Development fund:
1st quarter- 0.50%
(LC issue date to expiry date with in 90 days than 90 days (0.50%+0.30% = 80%)

• Export processing Zone:
1st quarter- 0.50%
(LC issue date to expiry date with in 90 days than 90 days (0.50%+0.30% = 80%).
• Export processing Zone other charge:
Data max charge – 1000
Courier charge – 200

3.3 Loan & advances

EXIM/ NJ/FR/2002/ Internal Memo
Date : 28/01/2002
TO : The Managing Director, EXIM Bank, Head office, Dhaka.
FM : The Vice President, Narayanganj Branch, Narayanganj.
Dear Sir

Sub: Proposal for CC(Pledge) limit of Tk. 50.00 lac A/C M/S Banijya Bitan

a customer Of Our Branch.

We enclose herewith an application since received from the above party along with other necessary papers for your kind perusal and consideration.

The particulars of the party are as follows:
1. Name of the firm : M/S Banijya Bitan
2. Name of the proprietor : Md. Safiqul Islam
3. Business address : I) 40, S.M. Maleh Road, Tanbazar, Narayanganj.
ii) Sutapatti, Narsingdi Sadar, Narsingdi.
4. Trade License : 4017
5. TIN : 125-300-0812/Narsingdi
6. Nature of Business : Wholesale of Cotton Yarn.
7. Experience : 25 Years
8. A/C Transaction :
a) With our Bank(in CD a/c)

Cr. Summation: Tk 2.80 crore
Dr. Summation: Tk 2.77 crore
(w.e.f. 03-01-2002 to 24-01-2002)
b) With Dutch-Bangla Bank (Tanbazar Branch)
Cr. Summation: Tk 68.11crore
Dr. Summation: Tk 67.98 crore
(w.e.f 10-05-2001 to 30-12-2001)
9. Personal net-worth : Tk 3.21 crore

10. Value of stock of goods : Tk1.77 crore

11. Particulars of investment in Business :
i) Advance paid for Godown: Tk. 10.00 lac
ii) Present Value of Stock : Tk. 177.00 lac
iii) Debtors : Tk. 250.00 lac
Tk. 437.00 lac
v) Creditors : Tk. 200.00 lac
TOTAL : Tk. 237.00 lac

11. Business background : Mr. Md. Safiqul Islam, Proprietor of the firm, is engaged in whole sale business of cotton yarn
the last 25 years. Usually the party purchases cotton yarn from the local importer and direct from Mills in cash and on credit basis. The party has two sale centers at Tanbazar and Narsingdi. We have visited the godown of the party and found the stocks valued about Tk 1.77 crore . Now

the party is enjoying a CC(Hypo) limit for Tk 10.00 Lac and CC(pledge) limit for Tk.30.00 lac in the name of M/S Tareq Traders with Islami Bank Bangladesh ltd, Narsingdi Branch. At the same time the party is maintaining a well transacted CD a/c in the name of M/S Banijya Bitan with Dutch-Bangla Bank Ltd., Tanbazar Branch.
12. Present liability : a) Nil (in the name of Banijya Bitan)
b) In the name of Tareq Traders(Sister concern

Nature of credit Limit Outstanding
CC(Hypo) Tk.10.00 lac Tk.10.00 lac
CC(Pledge) Tk.30.00 lac Tk.27.00 lac

Particulars of the Limit :
i) Limit applied for : Tk.1.00 crore
ii) Nature of Limit : Cash Credit (Pledge)
iii) Item : Cotton Yarn
iv) Purpose of Limit : To purchase and store the cotton yarn.
v) Margin : 25%
vi) Rate of interest : 15% p.a. at quarterly rest.
Vii) Validity : 31-12-2001
viii) Storage of goods : The goods shall be stored at party’s/bank’s godown under the effective control of Bank.
ix) Mode of Repayment : The account shall be adjusted by the borrower within validity of the limit on payment of value of goods.

x) Delivery of Goods : Delivery of goods shall be effective after issuance of delivery order against real payment. The margin shall be adjusted with the last and final delivery only.
xi) Security : Pledge of cotton yarn ensuring 25% margin on value of stock duly insured.
13.Recommendation : Considering the goodwill, market reputation and business worthiness of the party, we recommend Head Office may kindlysanction a Cash Credit (Pledge) Limit of Tk.50.00 lac in favour of the above party.
With kind regards

EXIM/NJ/FR/2002
Internal Memo
Date : 12-03-2002

TO : The Managing Director, EXIM Bank Ltd., Head Office, Dhaka.
FM : The Vice-President & Manager, Narayanganj Branch, Narayanganj.

Dear Sir,

Sub: Proposal for SOD limit of Tk.9,00,000.00 (Nine lac) only.

We enclose herewith an application since received from Mr. Md. Alaol, a customer of our branch to allow him a SOD limit for Tk.9,00,000.00 (Nine lac) only against FDR. The particulars of the limit are as follows:
1) Name of the Party : Mr. Md. Alaol
2) Nature of Limit : SOD(against FDR)
3) Amount of Limit : Tk. 9,00,000.00(Nine Lac) only.
4) Purpose of limit : For smooth running of the business.
5) Validity : 1(One) Year i.e. up to 12-03-2003

6) Rate of interest : 14.50% (3.00% above of the FDR interest).

7) Security : Lien of FDR No.-016019/4100019-3 Dated 09-03-2002 for
Tk. 10,00,000.00(Ten lac) only rate of interest Tk. 11.50% p.a. favouring Md. Alaol duly discharged by the beneficiary.

We would therefore request you to accord your kind approval to sanction the above limit.
With kind regards,

• 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 (C.R.R)
• Preparing the monthly position for the branch which is sent to the Head Office to maintain Statutory Liquidity Requirement (S.L.R)
o Make charges for different types of duties
o 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 .Step 8 Retirement
The importer receives the intimation and gives necessary instruction to the bank for retirement of the import bills or for the disposal of the shipping document to clear the imported goods from the customs authority. The importer may instruct the bank to retire the documents by debiting his account with the bank or may ask for LTR (Loan against Trust Receipt .When the officer thinks fit the application to open a L/C, giving the following entries creates the following charge.

CHAPTER FOUR

MARKETING ACTIVITIES OF EXIM BANK LTD.

Products of EXIM bank;

Super Savings Scheme Monthly Savings Scheme Monthly Income Scheme

Smart Saver Hajj Deposit

Super Savings Scheme
Savings helps to build up capital and capital is the prime source of business investment in a country. Investment takes the country towards industrialization, which eventually creates wealth. That is why savings is treated as the very foundation of development. To create more awareness and motivate people to save, EXIM Bank offers SUPER SAVINGS Scheme.
Terms and conditions of the scheme
1. Any individual, company, educational institution, government organization, NGO, trust, society etc may invest their savings under this scheme.
2. The deposit can be made in multiples of Tk 10,000.
3. The period of deposit is for six years.
4. Any customer can open more than one account in a branch in his name or in joint names.
5. If the deposit is withdrawn before six years term, then savings interest rate +1% will be applied before payment is made.
6. A depositor can avail loan up to 80% of the deposited amount under this scheme.
7. In case of death of the depositor, before the term, the deposit (with interest5 at savings rate +1%) will be given to the nominee.
In case of issuing a duplicate deposit receipt the rules of issuing duplicate receipt of Term Deposit will be applicable.

MONEYGROWER
Savings period and monthly installment rate
The savings period is for 5, 8, 10 or 12 years. Monthly installment rate is Tk. 500/-, 1,000/-, 2,000/- or 5,000/-
Monthly installment deposit
• The savings amount is to be deposited within the 10th of every month. In case of holidays the deposit amount is to be made on the following day.
• The deposits may also be made in advance.
The depositor can have a separate account in the bank from which a standing instruction Withdrawal
• Generally, withdrawal is not advised before a 5-year term, but if it is withdrawn before the above term, then interest will be paid at savings rate. However, no interest will be paid if the deposit is withdrawn within 1 year of opening the account.
• In case the depositor wishes to withdraw between the 5, 8, 10 or 12-year period then full interest will be paid for a completed term and savings rate will applicable for the fractional period can be given to transfer the monthly deposit in the scheme.
.
Loan Advantage
After three years of savings in this scheme the depositor (if an adult) is eligible for a loan up to 80% of his deposited amount. In that case, interest rates on the loan will be applicable as per prevailing rate at that time.
Reasons for disqualification from this scheme
If the depositor fails to pay 3 installments in a row, then he will be disqualified from this scheme and interest will be applicable as mentioned in withdrawal clause.
• If a depositor fails to pay 5 installments in a row after completion of 5-year term, then the Bank reserves the right to close the account and interest will be paid as, mentioned in withdrawal clause.
• In case of death of the depositor the scheme will cease to function. The amount will be handed over to the nominee of the deceased depositor. In case of absence of the nominee the bank will handover the accumulated amount to the successor of the deceased

Rules;
o A form has to be filled at the time of opening the account. No introduction is needed but attested photographs are advised.
The depositor can select any of the installment amounts, which cannot be subsequently changed.
o In case of minors the guardians may open and supervise the account in his favor.
o A single person can open more than one account for saving under several installment rates.
o The accumulated deposit with interest will be returned within one month of completion of a term.
o The depositor should notify the bank immediately on any change of address.
o The government tax will be deducted from the interest accumulated in this scheme.
o If necessary, at the request of the depositor, the scheme can be transferred to a different branch of the same Bank. The Bank reserves the right to change the rules and regulations of the scheme as and when deemed necessary

Monthly Income Scheme
Highlights of the Scheme
1. Minimum deposit Tk. 25,000/-
2. Higher monthly income for higher deposit.
3. The scheme is for a 5-year period.
Objectives of the Scheme
• An account is to be opened by filling up a form.
The Bank will provide to the customer a deposit receipt after opening the account. This receipt is non-transferable.

• If the deposit is withdrawn before a 5-year term, then saving interest rate will be applicable and paid to the depositor. However, no interest will be paid if the deposit is withdrawn within 1 year of opening the account and
. Monthly Income paid to the customer will be adjusted from the principal amount depositor can avail loan up to 80% of the deposit amount under this scheme. In this case, interest will be charged against the loan as per Bank’s prevailing rate.

Smart Saver
Smart Saver is a high return investment plan, which helps a customer build up sizeable amount in a period of 5 years. This scheme offers a customer to buy Smart Saver Term Deposit 5 times the invested amount. Smart Saver is a 5-year term deposit scheme.
Terms and conditions
1. One unit of Smart Saver Term Deposit is Tk. 25,000.
2. During the tenure of the loan the Term Deposit will be kept in the Bank as security.
3. The customer will have to open an account and monthly installment of loan will be debited from the account commencing from 30 days after opening loan account.
4. Within the 1st year if the customer fails to repay 3 consecutive installments then only the principal amount of Smart Saver Term Deposit will be encased and the

loan will be liquidated inclusive of accrued interest and balance paid to the customer. After completion of 1 year, Savings rate
5. will be added to the principal amount of Smart Saver Term Deposit. In both cases closing charge will be Tk. 500.
6. For missed installments on due date customer will be charged Tk. 25 per unit per month.
7. In the event of death of the customer, the bank shall be entitled to incash the Term Deposit and adjust the dues first before any refund is made to the nominees/ successors.
The bank reserves the right to amend the rules and rates as and when deemed necessary.

In order to made smooth arrangement of fund for performing Hajj, the bank has introduced this scheme for 5, 8, 10, 15, &20 year’s period .

Multiplus Savings
Savings helps to build up capital and capital is the prime source of business investment in a country. Investment takes the country towards industrialization, which eventually creates wealth. That is why savings is treated as the very foundation of development. To create more awareness and motivate people to save, EXIM Bank offers MULTIPLUS SAVINGS Scheme.
Terms and conditions of the scheme
1. Any individual, company, educational institution, government organization, NGO, trust, society etc may invest their savings under this scheme.
2. The deposit can be made in multiples of Tk. 10,000.00 The period of deposit is 10 years. But the deposit can be withdrawn at any year with interest. As an example, if deposit is withdrawn after completion of 1 year but before 2 years then deposit with interest will be paid for 1 year only. The same rule will apply for other years. If deposit is withdrawn before 1st year then no interest will Any customer can open more than one account in a branch in his name or in joint names. A deposit receipt will be issued at the time of opening the account.
3. The depositor can avail loan up to 80% of the deposit under this scheme.
4. In case of issuing duplicate receipt the rules of issuing a duplicate receipt of Term Deposit will be applicableIn case of death of depositor before the
5. term, the deposit (with interest at savings rate) will be given to the nominee. In the absence of nominee, the heirs/ successors will be paid on production of succession certificate.
o The nominee may, at his option continue the scheme for the full term. Some examples are given in the table below. Any amount can be deposited in multiples of Tk. 10,000.

3.1.2 Deposit Section
Deposit is the lifeblood of a bank. From the history and origin of the banking system we know that deposit collection is the main function of a bank is accepting deposit. The deposits that are accepted by EXIM Bank like other banks may be classified in to:
Demand Deposits
Time Deposits
Demand deposits:
These deposits are withdrawn able without notice, e.g. current deposits. EXIM Bank accepts demand deposits through the opening of,-
a) current account
b) Savings account
c) Call deposits from the fellow bankers.
Time deposits:
A deposit which is payable at a fixed date or after a period of notice is a time deposit. EXIM Bank accepts time deposits through Fixed Deposit Receipt (FDR), Short Term Deposit (STD) and Bearer Certificate Deposit (BCD) etc.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 arises a contract 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 persons with different legal status, EXIM Bank officials remain very much careful about the competency of the customers.
3.1.3 Cash section
Banks, as a financial institution, accept surplus money from the people as deposit and give them opportunity to withdraw the same by cheque, etc. But among the banking activities, cash department play an important role. It does the main function of commercial bank i.e. receiving the deposit and paying the cash on demand. As this department deals directly with the customers, the reputation of the bank depends much on it. The functions of a cash department are described bellow:
Functions of Cash Department:

Cash Payment 1. Cash payment is made only against cheque
2. This is the unique function of the banking system which is known as “payment on demand”
3. It makes payment only against its printed valid Cheque
Cash Receipt 1. It receives deposits from the depositors in form of cash
2. So it is the “mobilization unit” of the banking system
3. It collects money only its receipts forms

□ Cash packing:
After the banking hour cash is packed according to the denomination. Notes are counted and packed in bundles and stamped with initial.
□ Allocation of currency:
Before starting the banking hour all tellers give requisition of money through “Teller cash proof sheet”. The head teller writes the number of the packet denomination wise in “Reserve sheet” at the end of the day, all the notes remained are recorded in the sheet.
3.1.4 Local Remittance
Carrying cash money is troublesome and risky. That’s why money can be transferred from one place to another through banking channel. This is called remittance. Remittances of funds are one of the most important aspects of the Commercial Banks in rendering services to its customers.
Types of remittance:
Between banks and non banks customer
Between banks in the same countr
Between banks in the different centers.
Between banks and central bank in the same country
Between central bank of different customers.
The main ways used by EXIM Bank for remitting funds are
Payment order ( PO)
Demand Draft ( DD)
Telegraphic Transfer (TT)
So the basic three types of local remittances are discussed below
Points Pay Order Demand Draft TT
Explanation Pay Order gives the payee the right to claim payment from the issuing bank Demand Draft is an order of issuing bank on another branch of the same bank to pay specified sum of money to payee on demand. Issuing branch requests another branch to pay specified money to the specific payee on demand by Telegraph /Telephone
Payment from Payment from issuing branch only Payment from ordered branch Payment from ordered branch
Generally used to Remit fund Within the clearinghouse area of issuing branch. Outside the clearinghouse area of issuing branch. Payee can also be the purchaser. Anywhere in the country
Payment Process of the paying bank Payment is made through clearing 1. Confirm that the DD is not forged one.
2.Confirm with sent advice
3.Check the ‘Test Code’
4.Make payment 1.Confirm issuing branch
2.Confirm Payee A/C
3.Confirm amount
4.Make payment
5.Receive advice
Charge Only commission Commission + telex charge Commission +
telephone

Test – key Arrangement:

Test key arrangement is a secret code maintained by the banks for the authentication for their telex messages. It is a systematic procedure by which a test number is and the
person to whom this number is given can easily authenticate the same test number by
maintaining that same procedure. EXIM Bank has test key arrangement with so many banks for the authentication of LC message and for making payment.

Commission for PO:
EXIM Bank charges different amount of commission on the basis of Payment order amount. The bank charges for pay order are given in the following chart.

Deposit

The Local Remittance section of EXIM Bank Motijheel Branch also issues FDR. They are also known as time deposit or time liabilities. These are deposits, which are made with the bank for a fixed period, specified in advance. The bank need not maintain cash reserves against these deposits and therefore, the bank offers higher of interest on such deposits.
Opening of fixed Deposit Account: The depositor has to fill an account form where in the mentions the amount of deposit, the period for which deposit is to be made and name/names is which the fixed deposit receipt is to be issued. In case of a Joint name EXIM Bank also takes the instructions regarding payment of money on maturity of the deposit. The banker also takes specimen signatures of the depositors. A fixed deposit account is then issued to the depositor acknowledging receipt of the sum of money

mentioned there. It also contains the rate of interest and the date on which the deposit will fall due for payment.

Term Deposits: These rates are not negotiable. In this table we can find out the percentage that is given by the bank for specific period of time to the customer.

Payment of interest: It is usually paid on maturity of the fixed deposit. EXIM Bank calculates interest at each maturity date and provision is made on that “miscellaneous creditor expenditure payable accounts” is debited for the accrued interest

Encashment of FDR: In case of premature FDR< EXIM Bank is not bound to accept surrender of the deposit before its maturity date. In order to deter such a tendency the interest on such a fixed deposit is made cut a certain percentage less the agreed rate. Normally savings bank deposit is allowed.
Loss of FDR: In case of lost of FDR the customer is asked to record a GD (general diary) in the nearest police station. After that the customer has to furnish an Indemnity Bond to EXIM Bank a duplicate FDR is then issued to the customer by the bank.

CHAPTER FIVE

SWOT ANALYSIS OF EXIM BANK

AND

RECOMMENDATION
5.1 SWOT Analysis

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 though 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:
EXIM Bank 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 profits and deposits sector.
EXIM Bank has provided its banking service with a top leadership and management position. The Board of Directors headed by its Chairman Mr. Md. Nazrul Islam is a skilled person in business world. Alamgir Kabir, the Advisor of the bank is a reputed senior chartered accountant having 30 years vast experience in accounts, audit, finance and banking at home and abroad. Mr. Mohammed Lakiotullah as the Managing Director of the bank management team. The top management officials have all worked in reputed banks and their years of banking experience, skill, expertise will continue to contribute towards further expansion of the bank.
EXIM Bank Limited has already achieved a high growth rate accompanied by an impressive profit growth rate in 2001. 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
Weakness:
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. The path of the future should be determined now with a strong feasible strategic plan.

The bank failed to provide a strong quality-recruitment policy in the lower and some mid level position. As a result the services of the bank seem to be Deus in the present days.
The poor service quality has become a major problem for the bank. The quality of the service at EXIM Bank is higher than the Dhaka Bank, Prime Bank or Dutch Bangla Bank etc. But the bank has to compete with the Multinational Bank located here.
Some of the job in EXIM Bank has no growth or advancement path. So lack of motivation exists in persons filling those positions. This is a weakness of EXIM Bank that it is having a group of unsatisfied employees.
In terms of promotional sector, EXIM Bank has to more emphasized on that. They have 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 options of starting’;;
merchant banking or diversify into leasing and insurance sector.
The activity in the secondary financial market has direct impact on the primary financial market. Banks operate in the primary financial market. Investment in the secondary market governs the national economic activity. Activity in the national economy controls the business of the bank.
Opportunity in retail banking lies in the fact that the 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. So a wide variety of retail lending products has a very large and easily pregnable market
A large number of private banks coming into the market in the recent time. In this competitive environment EXIM Bank must expand its product line to enhance its sustainable competitive advantage. In that product line, they can introduce the ATM

to compete with the local and the foreign bank. They can introduce credit card and debit card system for their potential customer.
Threats:
All sustain multinational banks and upcoming foreign, private banks posse’s 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 an on slough of foreign the banks.
The default risks of 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 has to remain vigilant about this problem so that proactive strategies are taken to minimize this problem if not elimination.
The low compensation package of the employees from mid level to lower level position threats the employee motivation. As a result, good quality employees leave the organization and it effects the organization as a whole.

PROBLEMS OF EXIM BANK

General Banking department
• In general banking department they follow the traditional banking system. The entire general banking procedure is not fully computerized.
• The cash counter I think is congested and the procedure is also traditional
• Lack of variety of services is also a back of the general banking department. The bank provides only some traditional limited services to its clients.
• They are not using data base networking in the Information Technology (IT) Department.
• According to some clients opinion introducer is one of the problems to open an account. If a person, who is new in the city, wants to open account, it is a problem for her/his to arrange an introducer of SB or CD account holder.

Loans and Advances Department
• Political influence is one of the major problems in Bangladesh. Due to political intervention the bank becomes obligated to provide loans in most of the cases, which are rarely recovered. Bank has to face this in convenience situation almost every year.
• The Loans and Advances Department takes a long time to process a loan because the process of sanctioning loan is done manually.

• Sometimes the securities taken against the loan are deliberately overruled by the employees to unlawfully help the client. As a result if the clients fail to repay the

bank authority cannot invested by the selling those assets. is also a very important factor that leads to loan default.
• CIB report is not readily available from Bangladesh Bank.

Foreign Exchange Department
• In Foreign Exchange Department it is required to communicate with foreign banks frequently and quickly. To make the process easily modern communication media for example e-mail, fax, Internet etc. should be used. But the bank has not so much practice of using these media.
• Modern technical equipment such as computer is not sufficient in Foreign Exchange Department. As a result the exchange process makes delay and it is also complicated.
• Other Problem; EXIM Bank doesn’t give their attention on advertisement. As a competition market it is too much important for any organization to increasing their advertisements procedure.

As an internee of EXIM Bank Ltd. I have truly enjoying my internship from the learning and experience viewpoint. I am confident that this three months internship program at EXIM Bank will definitely help me to realize my further carrier in the job market. EXIM bank has converted all of their system and policy of traditional banking to Islamic Banking. I think which a very practical and bold decision is. As there are lots of local and foreign banks in Bangladesh the EXIM Bank Ltd. Is promising commercial Bank among them. In this competitive market EXIM Bank has to compete not only the others commercial banks but also with the public Bank. EXIM Bank Ltd. Is more capable of contributing towards economic development as compared with other bank. EXIM Bank Ltd. Invested more funds in export and import business. It is obvious that the right thinking of this bank including establishing a successful network over the country and increasing resources will be able to play a considerable role in the portfolio of development. Success in the banking business largely depends on effective lending. Less the amount of loan losses, the more the income will be from Credit operations the more

will be the profit of the EXIM Bank Limited and here lays the success .During the course of my practical orientation I have tried to learn the practical banking activities to realize itwith my theoretical knowledge, have greathearted and going to acquire from various courses of my MBA program.

Recommendations
1. The entire department should be well informed regarding their goals and objectives. It is essential to execute company objectives into individual target. There must be a clear allocation of responsibility authority and accountability.
2. One of the most import limitations is that it has no that much of advertisement of its EXIM bank operations. It can gain dual benefit of attracting deposit and credit. The bank should take the initiative to develop an effective research and development center to get innovative ideas to capture the competition. Job description should be clarified and proper training should be imparted to improve the performance of bottom level management.
3 Selection and training must be focused to develop and exploit leadership and entrepreneurial qualities within the work place.
4 While the other banks are launching “Consumer Credit Scheme” EXIM Bank is failing to launch this kind of scheme. The management can undertake such sort of schemes and earn profit.
5 To meet today’s urging of the customer, the bank should introduce Automated Teller Machine (ATM).
6 The bank should provide total investment money at once to the clients so that they can exploit money properly.
7 EXIM Bank should provides facilities to the internees through monthly allowance, proper placement and practical operations as well as job certainly to those who have shown better performance in doing their particulars. Because this internship program may act as promotional program.