Overview of the EXIM Bank Limited

Background of the Company

EXIM Bank came in to operation as scheduled commercial bank on 3^rd August 1999 as per rules and regulations of Bangladesh Bank. It is established under the leadership of Late Mr. Shahjahan Kabir, founder chairman who had a long dream of floating a commercial bank which would contribute to the socio-economic development of our country. He had a long experience as a good banker. A group of highly qualified and successful entrepreneurs joined their hands with the founder chairman to materialize his dream. In deed, all of them proved themselves in their respective business as most successful star with their endeavor, intelligence, hard working and talent entrepreneurship. Among them, Mr. Nazrul Islam Mazumder became the honorable chairman after the demise of the honorable founder chairman. Of its very beginning EXIM Bank Bangladesh limited was known as BEXIM Bank Limited. But some legal constraints the bank renamed as EXIM Bank, which means Export Import Bank of Bangladesh Limited. At present the bank is performing its work all over the country by 67 branches.

This Bank starts functioning from 3rd August, 1999 with its name as Bengal Export Import Bank Limited. On 16th November 1999, it was renamed as Export Import Bank of Bangladesh Limited with Mr. Alamgir Kabir as the Founder Advisor and Mr. Mohammad Lakiotullah as the Founder Managing Director respectively. Both of them have long experience in the financial sector of our country. By their pragmatic decision and management directives in the operational activities, this bank has earned a secured and distinctive. position in the banking industry in terms of performance, growth, and excellent management. Under the leadership of Mr. Lakiotullah, the Bank has migrated all of its conventional banking operation into Shariah Based Islami Banking in the year July 2004.

Mr. Mohammed Lokiotullah left the Bank on 3rd June, 2007, there after Mr. Kazi Masihur Rahman became Managing Director on 4th June, 2007. Mr. Rahman served in the bank for next five years. Under his leadership, the bank has been placed on a state of the art centralized IT platform with two modern data centers where world renowned core banking software TEMENOS T24 is running along with some alternate delivery channels like ATMs and SMS banking.

On 25th August, 2011, Mr. Md. Fariduddin Ahmed has joined in the bank as Managing Director. With his long experience in the Shariah Based Islami banking in Bangladesh, EXIM Bank is going to take a new shape where IT-enable banking service will spread in the market.

The bank has migrated all of its conventional banking operation into Shariah based Islamic banking since July/2004.

 Vision & Mission

Exim bank’s vision and mission are stated in the following bullets:

       To be the finest bank in the banking arena of Bangladesh under the Shariah guidelines.

       To maintain Corporate and business ethics.

       To become a trusted repository of customers’ money and their financial advisor.

       To make our stock superior and rewarding to the customers/share holders.

       To display team spirit and professionalism.

       To have a Sound Capital Base.

       To provide high quality financial services in export and import trade.

       To provide excellent quality Customer service

 Corporate Culture

This bank is one of the most disciplined Banks with a distinctive corporate culture. Here we believe in shared meaning, shared understanding and shared sense making. Bank’s people can see and understand events, activities, objects and situation in a distinctive way. They mould their manners and etiquette, character individually to suit the purpose of the Bank and the needs of the customers who are of paramount importance to the bank.

Management Profile and Divisions

Financial Administration Div. Head Office

Human Resources Division, Head Office

International Division, Head Office

EXIM Bank Training Institute

Information Technology Division, Head Office

Special Audit Division, Head Office, Dhaka.

Product & Services

Super Savings              Monthly Savings            Monthly Income           Smart Saver               Hajj Deposit

Scheme                           Scheme                        Schem

Finance/Loans:

Foreign Exchange:

Savings Scheme:

 E-CASH/ ATM SERVICE

The bank is currently providing Credit Card Service (MasterCard) to the privileged customers of the bank in collaboration of Prime Bank. Floating VISA card for both Debit and Credit card service is under process.

Bank Operational Area

    Export and Import Trade Handling and Financing

As a commercial Bank, banks do 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. But our main focus is, for obvious reason, on export and import trade handling and the development of entrepreneurship and patronization of private sectors.

 Social Commitment

The purpose of company business is, obviously, to earn profit, but the promoters and the equity holders are aware of their commitment to the society to which they belong. A chunk of the profit is kept aside and/or spent for socio-economic development through trustee and in patronization of art, culture and sports of the country. We want to make a substantive contribution to the society where we operate, to the extent of our separable resource.

Achievements

It is a great pleasure that by the grace of Almighty Allah, we have migrated at a time all the branches from its conventional banking operation into Shariah based Islamic banking operation without any trouble. Lot of uncertainties and adversities were there into this migration process. The officers and executives of our bank motivated the valued customers by counseling and persuasion in light with the spirit of Islam especially for the non-Muslim customers. Our IT division has done the excellent job of converting and fitting the conventional business processes into the processes based on Shariah.

TABLE: 1: Corporate information

Short Term: ST-2 (High Grade)Registered OfficePrinters Building (5^th, 6^th, 10^th & 13^th Floor)

5 Rajuk Avenue, Dhaka-1000, Bangladesh. E-maileximho@bdonline.comWebsitewww.eximbankbd.comSWIFTEXBKBDDHTelephone9561604, Fax: 880-2-9556988

BOARD OF DIRECTORS

Chairman:                              Mr.Md. Nazrul Islam Mazumder

Vice Chairman                                   Mr. Md. Abdul Mannan

Directors:                              

Dr. Mohammed Haider Ali Miah                   Dr. Mohammed Haider Ali Miah

Dr. Mohammed Haider Ali Miah                   Mr. Mohammed Shahidullah

Mr. A.K.M. Nurul Fazal                                            Al-haj Md. Nurul Amin

Mr. Mohammad Omar Farooque Bhuiyan      Mr. Abdullah Al-Zahir (Shapan

Mrs. Nasima Akhter                                        Mr. Zubayer Kabir

Mr. Md. Habib Ullah Dawn                           Mr. Anjan Kumar Saha

Mrs. Rizwana K. Riza                                     Major Khandaker Nurul Afser (Retd.)

Lt. Col. (Retd) Serajul Islam BP (BAR)        Ranjan Chowdhury

Md. Fakhrul Islam Mazumder                        Khandakar Mohammed Saiful Alam

Mr. Muhammed Sekandar Khan

Managing Director:                  Dr. Mohammed Haider Ali Miah

Additional Managing Director: Mr. Ekramul Hoque

Deputy Managing Director: Mr. Md. Sirajul Islam Bhuiyan

       Dr. Mohammed Haider Ali Miah

Company Secretary:             Mr. Md. Golam Mahbub

 Shariah Board

The Board of directors has formed a Sharia Supervisory Board for the Bank. Their duty is to monitor the entire Bank’s transactional procedures, & assuring its Sharia compliancy. This board consists of the following members headed by the chairman.

The tasks of the Sharia supervisor in summary is replying to queries of the Bank’s administration, staff members, shareholders, depositors, & customers, follow up with the Sharia auditors and provide them with guidance, submitting reports & remarks to the Fatwa & Sharia Supervision Board and the administration, participating in the Bank’s training programs, participating in the supervision over the AlIqtisad AlIslami magazine, & handling the duty of being the General Secretary of the Board.

Chairman of Shariah Council: Professor Maulana Mohammad Salah Uddin

Members of Shariah Council:

Salient Features of Exim Bank

The bank is committed to run all its activities as per Islamic Shariah. Exim bank through its steady progress and continuous success has earned the reputation of being one of the leading Private Sector Banks’ of the country. The distinguishing features of bank are as follows:

      All activities are conducted on interest-free banking system in accordance with Islamic Shariah.

      Investment is made through different modes permitted under Islamic Shariah.

      Establishment of participatory banking instead of banking on debtor-creditor relationship.

      Investment income of the Bank is shared with the Mudaraba depositors according to a ratio to ensure a reasonable fair rate of return on their depositors.

      Its aims are to introduce a welfare-oriented banking system and also to establish equity and justice in the field of all economic activities.

      It extends Socio-economic and financial services to the poor, helpless and low-income group of the people for their economic enlistment particularly in the rural areas.

      It plays a vital role in human resource development and employment generation particularly for the unemployment youths.

      Its aim is to achieve balanced growth and equitable development of the county through diversified investment operations particularly in the priority sectors and in the less developed areas.

It extends co-operation to the poor, the helpless and the low-income group for their economic development.

 District-wise Branch distribution     

• Ø List of branches in Dhaka division:

      Ø List of branches in Chittagong division:

• Ø List of branches in Sylhet division:

• Ø List of branches in Khulna division:

 Ø List of branches in Rajshahi division:

 Ø List of branches in Barisal division:

 Ø List of branches in Rangpur division:

Balance sheet

Cash:

In hand (including foreign currency)

With Bangladesh Bank& Agent Banks

Balance with other banks and financial institutions

In Bangladesh

Outside Bangladesh

Placement with banks& other financial institution 

Investments in shares &securities

Government

Others

Investments

General investments etc,

Bills purchased and discounted

Placement from bands &other financial institutions

Deposits & other accounts

Mudaraba savings deposits

Mudaraba term deposits

Other mudaraba deposits

Al wadeeah current & other deposit  accounts

Bills payable

Other liabilities

Total liabilities

Capital/ shareholders equity

Paid up capital

Statutory reserve

Other reserves

Foreign Currency translation adjustment

Retained earnings

EXIM Bank Shareholders Equity

Minority Interest

Total shareholders’ equity

Total liabilities& shareholders’ equity

Off balance sheet items 

 Contingent  liabilities :

Acceptance & endorsements-

Letters of guarantee

Irrevocable letters of credit

Bills for collection

Other contingent Liabilities

Total Contingent liabilities

Other commitments

Total off balance sheet items

Net investment income

Income  from investment in shares/security

Commission ,exchange brokerage

Gain on sale of investment in shares

Other operating income

Total operating income

Operating expense

Salaries and allowance

Rent ,taxes insurance lighting etc

Legal expenses

Postage stamp telegram & telephone

Audit fees

Stationery printing advertisement etc

Managing Directors remuneration

Managing Directors fees

Directors fees& expense

Shariah supervisory committees fees &Expenses

Charges on investment losses

Depreciations on and repairs to bank property

Zakath expenses

Other expenses

Total operating  expense

Profit before provisions

Provision for investment

Provision for off balance sheet exposure

Provision for diminution in value of share

Profit before tax

Provision for tax

Deferred tax

Profit After tax

Retained earnings brought forward

Transfer from provision for diminution in value of share

Profit available for appropriation

Appropriation :

Statutory reserve

Issue of bond share

Retained earnings carried forward

Earnings per ordinary share  

Cash Flow statements

 Investment income receipts

Profit paid on deposits borrowing etc

Dividend receipts

Fees & commission receipts

Cash payment to employees

Cash payment to suppliers

Income tax payments

Receipts from other operating activities

Payments for other operating activities

Cash flows before changes in operating assets & liabilities

Changes in operating assets &liabilities :

(Increasse)/Derease in Operating assets:

Statutory deposit

Trading security shares

Investments to other banks

Investments to customers

Other assets

Increase/ (decrease)in operating liabilities:

Deposits from other banks

Deposits from customers

Liabilities on account of customers

Trading liabilities (borrowing )

Other liabilities

Net cash from operating activities

B)Cash flows from investing activities

Receipts from sale of securities Islami Inv.bond

Payment for purchase of securities

Purchase of fixed assets

Sale proceeds of fixed assets

Net cash from investing activities

C)Cash flows from financing activities

Receipts from issue of Debt Instrunents

Payments for redemption of Debt Instruments

Receipts from issue of Ordinary share(Right share)

Dividend paid in cash

Net cash from financing activities

D) Net increase /decrease in cash &cash equivalent (A+B+C)

E)Cash &cash equivalent at beginning of the year

F)Cash & equivalent at end of the year(D+E)

G)Cash & cash equivalents

Cash

Balance with other banks &financial institutions

 FINDINGS

  EXIM Bank Limited presently has 44 branches to operate its business. But it is quite hard for EXIM bank to cover the whole Bangladesh with this small number of branches.

  Though the customer base is quite large but the customer service is not yet up to mark.

  The account opening process is not easier.

  The working procedure and office setup are in medium standard.

  EXIM bank provides only Credit cards. It needs to also introduce ATM, Debit Card etc.

  Foreign exchange department could offer better services through the automation at all its operations.

  Efficient work force along with proper division of work is vital for the success of any bank. EXIM bank has the scope to consider this factor to enhance and sustain it growth.

  Since the work  is done frequently manually, the entire department takes long time for processing.

  EXIM bank is sponsoring some cultural and beatification events but not regularly.

  Though EXIM bank provides the online banking facility but not in usual mode.

  The recruitment process in EXIM bank is quite fair. The training process is also quite accurate

  The number of exchange house through which EXIM Bank remitted money is only 5. EXIM is known as one of the leading local bank of Bangladesh but they don’t have enough exchange houses to remit money.

  During the festival time EXIM Bank Ltd has to face manpower shortages which hamper the managing process of the remittance department.

  According to the modern technology it is necessary to know about the new one to compete with other banks. In order to stay in the market every part of the organization has to be updated but SBL sometimes unable to cope with this.

  EXIM bank Ltd has to give more emphasize in their remittance process. It needs 2-3 days for reaching the remitted amount to the customer account. But customer may need the amount in one day but at that time EXIM bank Ltd can not provide the service to this particular customer. As a result the customer has to suffer.

  As one of the leading bank of Bangladesh EXIM Bank has to increase their distribution channel to satisfy the increasing no of customer in Wage Earners’ Remittance.

Recommendation

Exim Bank Bangladesh Limited has some problems in General banking, investment and foreign exchange activities. I would like to offer some suggestions and recommendations to overcome the problems relating the aforementioned topic of exim bank and also to improve the performance of exim bank regarding general banking, Investment and foreign exchange activities:

• Branch should develop its smooth function of customer dealings.
• G.B. facilities should be improved rather than conventional banking system.
• Increase the volume of supervision by the high officials to the above mentioned program.
• Setup sophisticated technology and formulate appropriate programs to develop the captioned activities.
• The staff and officers should be aware regarding the modern customer service.
• The bank should consider the customer complain when they raise any problem.
• The Bank should provide quick customer service to avoid haphazardness.
• The bank should develop its decoration system in such a way so that the customer can get their information easily.
• Bank should increase their staff according to customer demand.
• The Bank should persuade the government to introduce a separate Islamic Banking law with a view to operating their activities more smoothly.
• To develop awareness about Islamic Banking among the clients more effective efforts, like seminars, symposia and get-togethers along with different motivational programs should be taken and implemented.
• Efforts should be made to increase Bank’s investment under Mudaraba & Musharaka modes.
• To appoint manpower having sufficient knowledge on Islamic Shari’ah at all the branches to ensure proper buying & selling in the investment operations of the Bank.

• As soon as possible the bank should launch more branches in Dhaka city as well as in other cities of the country.

CONCLUSION:  

In the financial world banking sector is the heart of a developing country. In order to develop a country’s economy, a good banking plays a very important role through their modern products and services. Among a large number of services, remittance management is one of the most important factors that directly hit a country’s economy. The remittance market is expanded all over the world as an important source of fee revenue for the commercial banking sector. EXIM Bank Limited is one of the leading banks in Bangladesh, which works for customer satisfaction through quality services. EXIM Bank Limited remits a huge amount of money outside of Bangladesh. For this remitted amount they do not claim any service charge and try to provide this service with in a very short time, where the international banks claim a higher charge for their services. It can be seen that EXIM Bank Limited is not much different from other commercial banks in Bangladesh. Most of the time it follows the same practice and procedure is followed by its competitors. But with in a very short time the satisfaction level of the customers are much higher than any other local commercial banks in Bangladesh.

BIBLIOGRAPHY

      Prospectus of EXIM Bank Ltd.

      Rights share offer document.

      Annual Report on 2009 of EXIM Bank Ltd.

      Several Booklets of EXIM bank Ltd.

      EXIM Bank Website.

      Investment manual and guidelines of EXIM Bank.

      Several news letters from EXIM Bank Ltd.

      Branch Manager Conference of EXIM Bank Ltd.

      Islamic Banking- By Abdur Rakib and Shekh Muhammad.

      Interest and Islamic Banking- By Moulana Muhammad Fuzlur Rahman Saharawi.