Letter of Transmittal

Date: 2nd June, 2016

Mohammad Asadullah
Lecturer
Department of Management Studies
Faculty of Business Studies
Jahangirnagar University

Subject: Submission of Internship Report entitled “FOREIGN EXCHANGE

MANAGEMENT: A STUDY ON EXIM BANK LIMITED”

Dear Sir,

This is my great honor to submit the report of my Internship Program in the Export Import
Bank of Bangladesh Limited. The report entitled “Foreign Exchange Management: A Study
on EXIM Bank Limited” is the final outcome of successful completion of my internship
program at the bank. In this effort, this report seeks to identify the foreign exchange
management and activities of Export Import Bank of Bangladesh Limited

It has been a delightful and enlightening experience for me to work in this esteem organization
and prepare this report. It would be my colossal pleasure if you find this report beneficial and
informative to have a superficial viewpoint on the issue. I sincerely hope that you will
appreciate my work.

Yours sincerely,

………………………
Md. Fardous Chowdhury
Exam Roll: 120352, Class ID: 2356
2nd Batch, Department of Management Studies
Jahangirnagar University

……………………......
Signature of Supervisor
 ACKNOWLEDGEMENT

As part of BBA program the internship program is supportive to link the gap between the
theoretical knowledge and real life experience. This internship report has been intended to
have a practical experience through the theoretical understanding.

At first I would like to express my thankfulness to almighty Allah for special blessing to
make the report. Then I express my deep gratitude to my supervisor Muhammad Asadullah,
Lecturer, Department of Management Studies, Faculty of Business Studies, Jahangirnagar
University for providing his important instructions, appropriate suggestions and continuous
guidance and support regarding this report.

I express my profound gratefulness to managing director and Executive vice president &
head of HR of EXIM Bank Ltd, for his kind permission to permit me for three months
practical orientation in EXIM Bank.

I need to confess the guidance of the Manager and all Officers and staffs of EXIM Bank Ltd
who spared their valuable time with me. I will never forget their kind and companionable
behaviour.

I prompt my profound gratefulness to Mr.Badsha Miah, Senior Executive Vice President,

Head of Special Audit Division of EXIM Bank Ltd of Branch to help me a lot. Moreover
my special gratitude goes to Mr. Momtaj Ali (SPO) & second manager for his modern
attitude and careful supervision to carry out of the job perfectly. I am very much grateful
to, Mohammad Shahriar (PO) in charge of foreign exchange to expertise a kindly
environment and helping me. Without their ration and friendly behavior it will be very
much difficult task for me to complete my report on time. So again I want to express my
gratitude to them. Finally I express my earnest gratitude all other personnel of EXIM Bank,
Savar Bazar Branch.
 EXECUTIVE SUMMARY

Internship students are required to prepare an internship report under the guideline of
supervising teacher on the selected subject matter to highlighting experience and to
conduct a depth analysis on the subject matter. This report has prepared on “FOREIGN
EXCHANGE MANAGEMENT: A STUDY ON EXIM BANK LIMITED”. The
specific objective of this report is to earn practical knowledge and experience on foreign
exchange business of EXIM Bank Ltd.

Banking sector is growing its hand in different events every day. At the same time the banking
process is becoming easier, faster, and the banking area becoming broader. As the demand for
better service increases day by day, they are coming with different innovative ideas and
products. In order to survive in the competitive field of the banking sector, all banking
organization are looking for better service opportunity to provide their fellow clients. As a
result, it has become essential for every person to have some idea on the bank and banking
procedure. EXIM Bank Ltd. Believes in the vision of “together towards tomorrow”. To
achieve the desire goal the bank is showing the excellence at all stages with a climate of
continuous improvement. Banks strategic plans and networking will strengthen its competitive
performance over others in this rapidly changing competitive environment.
In chapter one I have discussed about the introduction, origin, scope, data collection, limitation
& methodology of the study. In chapter two, I have discussed about the historical background,
organizational structure mission, vision, objective & performance of Export Import Bank of
Bangladesh Ltd. In chapter three I have discussed about Savar Branch of EXIM Bank. Topic
analysis is in chapter four which include foreign exchange management and activities of
EXIM Bank Ltd. Then in chapter five I have showed different kinds of analysis and findings
about the EXIM Bank Ltd. After that in chapter six I have placed suggestions and
recommendation in chapter seven I have given my conclusion.
The overall objective and mission of my research was to represent the Export Import Bank of
Bangladesh Ltd. and to have a flawless idea about all the essential parts of the internship
program.
I hope this report, despite its many limitations, will be a gateway to have a clear concept about
the foreign exchange management and activities of EXIM Bank Ltd
CHAPTER: ONE
INTRODUCTION
1.1 Introduction

Economic history shows that improvement has started everywhere with the banking system
and its support towards financial development of a country is the highest in the preliminary
stage.

Normally by the word "Bank" we can simply comprehend that the financial institution dealing
with money. But there may be different types of banks like Central Banks, Commercial Banks,
Savings Banks, Investment Banks, Industrial Banks, and Co-operative Banks etc. But when
we use the term "Bank" without any prefix, or restriction, it refers to the Commercial banks.
Commercial banks are the primary sponsors to the economy of a country. So we can tell that
Commercial banks are a money-making institution that gathers the deposits from the spare
unit of the society and then lend the deposits composed to the scarcity unit of the society. So
the government and the people of the society are very much reliant on on the commercial
banks as the financial transitional. As banks are profit-earning concern they amass deposit at
the lowest conceivable cost and offer loans and advances at higher. The differences between
two are the profit for them.

Modern banking method plays a dynamic role for a nation’s economic expansion. Over the
last few years the banking world has been experiencing a lot of changes owing to deregulation,
globalization, technological innovations etc. These variations in the banking method also
brought radical changes in a country’s economy. Contemporary world is changing promptly
to face the challenge of competitive free market economy. It is well known that there is an
burning need for better, skilled management and better-trained staff in the dynamic global
financial market. Bangladesh is not out of this trend. Banking Sector in Bangladesh is fronting
challenges from diverse angles though its prospect is optimistic in the future. With the
intention of surviving in the competitive arena of the banking sector, all banking organizations
are looking for better service opportunities to deliver their fellow clients. As a result it has
become indispensable for every person to have some knowledge on the bank and banking
procedure.

This is my huge pleasure to submit my report by conveying my theme and thought on topic
through my concrete experiences. Being a student of B.B.A I fingered an enthusiasm and
willingness to express and to let the other people know about the work and activities of an
organization, a renowned bank (EXIM Bank Limited)
1.2 Origin of the Report

As per required for the Bachelor of Business Administration Degree, I had to complete an
internship in an appropriate business organization and submit a report on my findings. I
worked as an Internee in Export Import Bank of Bangladesh Limited, Savar Bazar Branch for
a period of 3 months from April 4, 2016 to July 04, 2016. Senior Vice President, HR division,
Export Import Bank of Bangladesh Limited appointed me as an Internee. After joining and
getting consent, I started to work on “Foreign Exchange division of EXIM Bank”.

Theoretical knowledge can never be fruitful without applied exposure. Therefore, B.B.A
program has been aimed in such a way that a student can acquire applied knowledge. A student
requires to go for practical orientation in some organization where his/her duty is to swallow
all the some things from operations and activities of that branch.

This internship report is generated under the supervision of Lecturer Mohammad Asadullah,
Department of Management Studies, FBS, Jahangirnagar University

1.3 Objective of the study

Without objective everything is meaningless. So this report has an objective. The objective
of the study is to collect applied knowledge on banking system, management and function.
This internship and report gave me a coincidental to co-ordinate with the academic
knowledge and the practical experience and helped to assess the Foreign exchange
management of EXIM bank Ltd.

1.3.1 General Objective:

The general objective of the report is to make & submit a report on the topic of “Foreign
exchange management of bank in Bangladesh”

1.3.2 Specific Objective:

To improve practical knowledge about the procedure of financial institution.

To examine the service process of Exim Bank Ltd.

To appraise the performance of foreign exchange division.
To come up with a SWOT analysis of Exim Bank.
To recognize the return on export, import & remittance.
 To acquaint the working hours, values and environment of the bank.
To analyze the financing system of the Bank and find out whether the bank needs any
upgrading.
To acquaint different rules and regulations of export and import formalities.
To find out the impact of private commercial banks for the economic growth of the country.

1.4 Scope of Study

EXIM Bank of Bangladesh Limited is one of the new generation banks in Bangladesh which
is formed to progress a balanced & sound economical social & industrial sector of Bangladesh.
As I was sent to EXIM Bank, Savar Bazar Branch, the scope of the study is only limited to
this branch The report covers about Exim Bank Limited especially foreign exchange
management. This study provides insight into the foreign remittance, export and import
management of Exim Bank Ltd. This study also examines the organizational structure,
culture, values, and background objectives etc of the bank While preparing this report I do
not have any limitations, the employees of foreign exchange department has helped me a lot
and I have used both primary and secondary data which available to me.

1.5 Rational of Study

Bangladesh is one of the developing countries in the world. The company of the country has
a lot left to be desired and there are lots of scopes for massive improvement. In an economy
like this, banking sector can play a vital role of an intermediary can mobilize the excess fund
of surplus sector to provide necessary finance, to those sectors, which are needed to promote
for the sound development of the economy.

Like in many other emerging market economies, commercial banks in the Bangladesh
economy are to face an increasing competition for their business in the coming days. Their
business will no longer remain easy as they had earlier the real change in the banking business
has started to come with govt.’s decision to allow the business in the private sector in the
middle of the eighties. This report is an effort to reflect a clear idea about the strategies,
activities and performance of EXIM Bank Bangladesh Ltd. Regarding Foreign exchange
management of bank in Bangladesh
1.6 Methodology of the study

This report has been prepared on the basis of experience gathered during the period of
internship. For preparing this report, I have undergone group discussion and interviewed with
officers and clients of the bank. Data regarding the completion of this research are collected
from both primary and secondary sources.

Primary Source Secondary Source

Face to face conversation with the Internal Sources
Annual reports of Exim Bank Ltd.
employees
Files & Folder
Appointment with the top officials of the
Bank Memos & Circulars

By interviewing clients of the Bank Different circulars, manuals and affairs

External Sources
Different books and periodicals
related to the banking sector.
Bangladesh Bank Report.
Online Sources

1.7 Limitations of the Report

Despite full co-operation from the Bank and Bank's officials, I faced some limitations.
The notable some of these are under
 It was very difficult to collect the information from various personnel for their
job constraint
 As some of the fields of banking are still not covered by our courses, there was
difficulty in understanding some activities.
 Another limitation of this report is Bank's policy of not disclosing some data and
information for confidential reason, which could be very much useful
 Because of the limitation of information, some assumptions were made. So there may
be some personal mistake in the report.
CHAPTER: TWO
Literature Review
2. Literature Review

The international monetary systems refer primarily to the set policies, institutions, practices,
regulations and mechanisms that determine the rate at which each currency is exchanged for
another (Shapiro, 2001) in the trading of currencies & settlement & facilitation of international
trade and investment. If there was a single international currency, there would be no need for
a foreign exchange market. The purpose of foreign exchange market is to enhance transfer of
purchasing power dominated in one currency for another currency. The foreign exchange
market is not a physical place rather it is an electronically linked network of banks, foreign
exchange brokers and dealers whose function is to bring together buyers and sellers of foreign
exchange. It is not confined to any one country, but is dispersed throughout the leading
financial centers of the world (Shapiro, 2001). Foreign exchange market consists, of two tiers,
the Interbank market in which major banks & financial institutions trade with each other and
the Retail market in which banks deal with their commercial customers (Redhead and
Hughesis, 1998). The major participants in the foreign exchange market are the large
commercial banks, foreign exchange brokers in the interbank market, commercial customers-
primarily multi-national corporations and Central Banks which intervene from time to time in
the market to smoothen exchange rate fluctuations or to maintain target exchange rates.
Exchange rates represent the number of units of a given currency of one country that can be
exchanged for unit of another currency (Van Horne, 1996). Today foreign exchange has been
the talk of the town, and this is because foreign exchange plays a very crucial role in the overall
performance of the national economy. The practice of managing foreign exchange resources
has therefore evolved broadly in line with the globalization and liberalization of economies
and financial market. This has played over such areas as risk management and active portfolio
management. Broadly speaking foreign exchange is held and managed to facilitate
international transactions (Anifowoshe, 1997).
CHAPTER: THREE
OVERVIEW OF EXIM BANK
3.1 Background of EXIM Bank:

Export Import Bank of Bangladesh Limited is a public listed scheduled bank categorized in
private sector and established under the ambit of Bank Companies Act, 1991 and incorporated
as a public limited company under the Companies Act, 1994 on June 02. Export Import Bank
of Bangladesh Limited started its operation on 3rd august, 1999 as a scheduled commercial
bank as per rules and regulations of Bangladesh Bank. The Bank converted its Banking
Operations into Islamic Banking based on Islamic Shariah from conventional banking
operation in July 01, 2004 after obtaining approval from Bangladesh Bank. Directed by the
mission to provide, prompt and efficient services to clients. It provides a wide range of
commercial banking services. Bank has achieved success among its peer group within a short
span of time with its professional and dedicated team of management having long experience,
commendable knowledge and expertise in convention with modern banking.

EXIM Bank Limited was established under the leadership of Late Mr. Shahjahan Caber,
founder chairman who had a long dream of floating a commercial bank which would
contribute to the socio-economic development of our country. He had a long experience as a
good banker. A group of highly qualified and successful entrepreneurs joined their hands with
the founder chairman to materialize his dream. Indeed all of them proved themselves in their
respective business as most successful star with their endeavor, intelligence, hard working and
talent entrepreneurship. Among them, Mr. Nazrul Islam Mazumder became the honorable
chairman after the demise of the honorable founder chairman.

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

The sponsors of the Bank are renowned group of industrialists and businessmen with a proven
track record. They represent reputed industrial and business houses of the country. Mr. Md.
Nazrul Islam Mazumder is the present chairman of the Bank. The board of Directors
comprises 17 members including the Managing Director Mr. Mohammed Haider Ali Miah.
EXIM Bank Limited is a private commercial bank with Head Office at Symphony, Plot-SE
(F-9), Road#142 Gulshan Avenuel, Dhaka-1212 .There are total 90 branches of Export Import
Bank of Bangladesh Limited situated at 31 districts in Bangladesh.

In its 16th year of operation, 2015, EXIM Bank has made substantial headway in terms of
business growth, profitability and establishing its image as one of the leading private sector
Bank. Its march towards reaching greater heights in operation continues with full vigor and
enthusiasm.

The bank conducts all types of commercial banking operations. The core business of the bank
comprises of trade finance, term finance, working capital finance and corporate finance. The
Bank is also providing personal credit, services related to local and foreign remittances and
several product related services. The scheme of the Bank, which is designed to help the fixed
income group in raising standard of living is competitively priced and has been widely
appreciated by the customers. The Bank has achieved success in all sectors and ended up with
a great operating profit. The achievement has been possible because of the able leadership,
dedicated and committed services provided by all levels of management and staff and above
all the trust and confidence that the valued client had reposed in the Bank. For EXIM Bank,
the days ahead will see this institution to achieve greater heights of glory.
3.2 Organism of EXIM Bank:

Managing Director

Senior Executive Vice President

Executive Vice President

Senior Vice President

Vice President

Senior Assistance Vice President

Assistance Vice President

Senior Principal Officer

Principal Officer

Executive Officer

Officer

Management Trainee Officer

Junior Officer

Assistant Officer

Trainee Assistant
Officer
3.3 Mission, Vision & Corporate Philosophy of EXIM Bank Ltd.

3.3.1 Vision:

The gist of our vision is ‘Together Towards Tomorrow’. Export Import Bank of Bangladesh
Limited believes in togetherness with its customers, in its march on the road to growth and
progress with service. To achieve the desired goal, there will be pursuit of excellence at all
stages with climate of continuous improvement, because, in Exim Bank, we believe, the line
of excellence is never ending. Bank’s strategic plans and networking will strengthen its
competitive edge over others in rapidly changing competitive environment. Its personalized
quality services to the customers with trend of constant improvement will be the cornerstone
to achieve our operational success

3.3.2 Mission:

The Bank’s mission gives emphasis to:

 To provide high quality financial services especially in Foreign Trade.
 Continue a contemporary technology based professional banking environment.
 Maintain corporate & business ethics and transparency at all levels.
 To have a Sound Capital Base.
 Ensure sustainable growth and establish full value to the honorable stakeholders
 Fulfill its social commitments and
 Above all, to add positive contribution to the national economy

3.4 Corporate Culture

Organizational culture is considered as an essential component of business corporations as it

has the ability to bind organizational members together. The culture and values of our bank
have been proved as a source of competitive advantage for us and are acting as a key
component to establish the relationship between the bank and our employees and , in turn ,
between our employees and our customers. Our culture and values also encourage customers
and employees to join us and stay with us.
EXIM Bank has also been able to improve organizational performance via improving the
performance of individual contributors and also recognizes existing talents to fill up the higher
vacancies within the organization or place them in the right position, wherein the best use of
their abilities can be ensured. Our culture promotes sharing of common goal which ensures
harmonious relationship in the working environment

3.5 Organizational Development of the Exim Bank:

In the 1450s and 1960s a new integrated type of training originated knows was organizational
development. Organizational development is an intervention strategy that uses group
processes to focus on the whole culture of an organization in order to bring about planned
change, it seeks to change belief attitudes, values structure and practices so that organization
can better adapt to technology and live with the fast pace of change.

The general objective of organization development is to change all parts of the organization
in order to make humanly responsive, more effective, and more capable of self-renewal.

The organizational development process does not preclude the use of conventional training
method, which is useful for some purpose. The management of Exim Bank is also concern
about the training for its development. They believe that if the employees will be trained
enough they would contribute more for the development of the banking business that is why;
they send some employee in every batch. So a number of employees took training from
different training institutions such as Bangladesh Bank, National Bank training Institute,
Bangladesh Institute of Bank Management.
3.6 Special Products and Services of EXIM Bank:

Super Savings Scheme Monthly Savings Scheme Monthly Income Scheme

Multiples Savings Hajj Deposit

3.7 Efficacy of Customer Services of EXIM Bank:

The most important asset of any organization is its customers. An organization’s success
depends on how many customers it has, how much they buy, and how often they buy.
Customers that are satisfied will increase in number, buy more, and buy more frequently.
Satisfied customers also pay their bills promptly, which greatly improves cash flow-the
lifeblood of any organization. The organizational diagram in Figure-1 best exemplifies just
how important the customer is to any organization
Figure-1 Customer Satisfaction Organizational Diagram

Source: EXIM Bank’s Website

A company is a device for transforming inputs into outputs. The simplest measure of
efficiency is the quantity of inputs that it takes to produce a given output; that is, Efficiency =
outputs/inputs.

A company can increase efficiency through a number of steps. These include exploiting
economies of scale and learning effects, adopting flexible manufacturing technologies,
reducing customer defection rates, getting R&D function to design products that are easy to
manufacture, upgrading the skills of employees through training, introducing self-managing
teams, linking pay to performance building a companywide commitment to efficiency through
strong leadership, and designing structures that facilitate cooperation among different
functions in pursuit of efficiency goals.

To achieve superior customer responsiveness often requires that the company achieve superior
efficiency, quality, and innovation. To achieve superior customer responsiveness, a company
needs to give customers what they want when they want it. It must ensure a strong customer
focus, which can be attained through leadership; training employees to think like customers;
bringing customers into the company through superior market research; customizing the
product to the unique needs of individual customers or customer groups; and responding
quickly to customers’ demands.

Customer’s satisfaction depends on Efficacy of customer service. If customers of the bank are
satisfy on the banking service then the efficacy will be positive. On the other hand, if
customers are dissatisfy then the efficacy will be negative.
Efficacy of customer service is related with progression of operation. We can identify the
efficacy of customer service by studying the progress of EXIM Bank from starting to at
present. The progress of EXIM Bank limited is very rapid with the concern of its profit making
and growth of its operation within the country towards the country’s economy

3.8 Special Feature of the Bank:

 Though EXIM Bank is engaged in conventional commercial banking it also

consider the inherent desire of the religious Muslims, and has launched Islamic
Banking system and inaugurates two Islamic Banking Branches in the year-2002
and one Branch in 2003. The Islamic Banking Branches perform their activities
under the guidance and supervision of a body called "SHARIAH COUNCIL".
 It is the pioneer in introducing and launching different customer friendly deposit
schemes to tap the savings of the people for channeling the same to the productive
sectors of the economy.
 For uplifting the standard of living of the limited income group of the population
the bank has introduced monthly saving scheme and educational saving scheme to
encourage the common and fixed income group of people.
 The Bank is committed to continuous research and development so as to keep pace
with modern banking.
 The operations of the Bank are computerized oriented to ensure prompt and
efficient services to the customers.
 The Bank has introduced camera surveillance system (CCTV) to strengthen the
security services inside the Bank premises.

3.9 Shariah Board:

The Board of directors has formed a Shariah Supervisory Board for the Bank. Their duty is to
monitor the entire Bank’s transactional procedures, & assuring its Shariah compliancy. This
Board consists of the following members headed by its Chairman.
The tasks of the Shariah supervisor in summary is replying to queries of the Bank’s
administration, staff members, shareholders, depositors, & customers, follow up with the
Shariah auditors and provide them with guidance, submitting reports & remarks to the Fatwa
& Shariah Supervision Board and the administration, participating in the Bank’s training
programs, participating in the supervision & handling the duty of being the General Secretary
of the Board

3.10 Customer Services and Automation:

“To error human and forgiveness divines” a proverb, the bank believes but the customers will
not accept. Because for a service they pay for they want it 100% defect free. So improvement
of the customer service should always be their motto altered expectations of the customer
have shifted the focus from resource base productivity.

To operate in the globalize environment, the banks future has equipped all the units of the
bank with the modern technology, such as online computer network telex, fax, e-mail SMS
banking etc. for the service of the customer round the clock, it has already installed ATMs
booth in suitable places of Dhaka and other cities of the country

3.11 SWIFT service:

The SWIFT services helped the bank in sending and receiving the messages and instructions
related to our NOSTRO account operations and L/C related matters. We have brought all of
our Branches under SWIFT network. Besides we have BKE arrangements with 430 Bank
Branches in 100 countries.
3.12 Slogan of the EXIM Bank “Local Bank Global Network”:

The word EXIM implies the meaning of its operation. Thought it is a new type of banking in
Bangladesh, it is familiar with so many countries in the world such as export import bank of
United States, export import bank of Japan, despite it is local bank it has a spread of its
operation in the whole world through foreign banking. To achieve the desired goal, it has
intention to pursuit of excellence at all stages with a climate of continuous improvement.
Because it believes, the line of excellence is never ending. It also believes that its strategic
plans and business networking will strengthen its competitive environment. Their motto is to
provide quality services to their customers, all over the world’s the slogan of the bank is “Local
bank global network”.

3.13 Social Commitment:

The purpose of the banking business is, obviously, to earn profit, but the promoters and the
equity holders of EXIM bank 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 and the bank want
to make a substantive contribution to the society where we operate, to the extent of our
separable resources
3.14 Corporate Information

Managing Director: Mohammed Haider Ali Miah

Number of Branch: 90

Name: Export Import Bank of Bangladesh Limited

Essence: Local Bank Global Network

Nature of Business: Banking service and Profit oriented

Head office:

“SYMPHONY”
Plot No. SE (F) - 9, Road No. 142
Gulshan Avenue, Dhaka-1212, Bangladesh
PABX: 880-2-988 9363, Fax: 880-2-988 9358
Website: www.eximbankbd.com

SWIFT: EXBKBDDH

Date of Incorporate: June 02, 1999

Inauguration of first branch: August 03, 1999.

Chairman: Md. Nazrul Islam Mazumder

Secretary: Muhammad Mubrak Hussaein

Advisor: Alamgir Kabir, FCA

Source: EXIM Bank’s Website

3.15 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.
3.15.1. Strengths

1. EXIM Bank of Bangladesh Limited has already established a favorable reputation in

the banking industry of the country. It is one of the leading private sector commercial
banks in Bangladesh. The bank has already shown a tremendous growth in the profits
and deposits sector.
2. EXIM Bank of Bangladesh Limited has provided its banking service with a top
leadership and management position. The top management officials have all worked
in reputed banks and their years of banking experience, skill, and expertise will
continue to contribute towards further expansion of the bank.
3. EXIM Bank of Bangladesh 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.
4. EXIM Bank of Bangladesh Limited has the reputation of being the provider of good
quality services too its, potential customers.

3.15.2. Weakness

1. 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.
2. 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.
3. The poor service quality has become a major problem for the bank. The quality of the
service at EXIM Bank of Bangladesh Limited is higher than the Dhaka Bank, Prime
Bank or Dutch Bangle Bank etc. But the bank has to compete with the Multinational
Bank located here.
3.15.3. Opportunities

1. In order to reduce the business risk, EXIM Bank of Bangladesh Limited has to expand
their business portfolio. The management can consider options of starting merchant
banking or diversify into leasing and insurance sector.
2. 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.
3. 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 predicable market.
4. A large number of private banks coming into the market in the recent time. In this
competitive environment EXIM Bank of Bangladesh Limited must expand its product
line to enhance its sustainable competitive advantage.

2.15.4. Threats

1. All sustain multinational banks and upcoming foreign, private banks possess enormous
threats to EXIM Bank of Bangladesh 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.
2. The default risks of all terms of loan have to be minimizing in order to sustain in the
financial market. EXIM Bank of Bangladesh Limited has to remain vigilant about this
problem so that proactive strategies are taken to minimize this problem if not
elimination.
2.16 EXIM Bank at a Glance

SL Particulars 2011 2012 2013 2014 2015

1 Authorized Capital 2000 2000 2000 2000 2000
2 Paid-up Capital 922.36 1051.49 1156.56 1283.86 1412.25
3 Reserve Fund 384.98 458.75 523.69 611.83 686.99
4 Deposits 10788.12 14036.97 16573.32 20029.44 22506.45
5 Investment General 9969.96 11822.00 14384.74 17793.68 19631.14
6 Investment(Shares 673.40 1034.54 1122.22 1522.17 1719.39
&Securities Exclude
Subsidiaries
7 Foreign Exchange 25440.75 27008.15 26865.27 28498.47 30226.64
Business
A)Import Business 12844.58 14331.44 13540.99 14679.56 15270.33
B)Export Business 12221.73 12099.69 13035.33 13441.24 14579.64
Remittance 374.44 577.02 288.95 377.67 376.67
8 Operating Profit 395.58 533.44 492.79 600.38 634.86
9 Investment as % of 92.42% 84.22% 86.79% 88.84% 87.22%
total Deposit
10 No. Of Foreign 336 398 386 398 383
Correspondent
11 Number of 1724 1909 2229 2458 2696
Employees
12 Number of branches 62 72 80 87 103
13 Return on Assets after 1.65% 1.45% 1.06% 1.16% 0.88%
tax
14 Return on Equity 14.91 13.86 10.27% 11.35% 9.06%
Source: EXIM Bank Web Site, Updated on April 28, 2016
 CHAPTER: FOUR
SAVAR BAZAR BRANCH OVERVIEW
4.1 Introduction

Savar Branch of EXIM Bank is one of the important branch opened in June10, 2004. It is
situated at Sharif Mansion, Bazar road,Savar,Dhaka. The name of the present branch Manager
is Badsha Miah (EVP).Savar branch work as the Local Office.

4.2 Organizational structure of Savar Bazar Branch:

Branch Manager (SAVP)

Operation Manager (AVP)

Senior Principle Officer (SPO)

Principle Officer
(PO)

Executive Officer (EO)

Officer

Junior
3.3 Organogram of Savar Branch:

Savar Branch

4.3.1 General Banking:

The main activities of general banking division are as follows;

a) Accounts Opening.

b) Issuing check books and account closing.

c) Remittance.

d) Clearing Department

e) General Enquiries.

f) Customer complaints.

g) IT Department
4.3.2 Credit/ Loan and Advance

EXIM bank provides various types of loan to individual and organizations. The main three
type’s loans are;

a) Cash credit,

b) Consumer credit, and

c) Security overcomes.

4.3.3 Foreign Exchange

The department deals with export and Import activities are called foreign Exchange
department. At the beginning of my internship work the Rajuk branch doesn’t have foreign
exchange license, so in that time they use the license of Motijheel branch gets the foreign
exchange license. And they start the work from 1st June, 04. The widely used terms in this
division are described briefly following:

4.3.3.1 Export

When any organization/company want to sale any goods or services to the buyer in live in
another country, is called export the goods/services. In this regard, the seller needs a Letter of
Credit (L/C) from the buyer for the confirmation of payment.

4.3.3.2 Import

When any organization/company want to buy any goods or services from the seller live on
other country, is called import the goods/services. In this regard the buyer needs to open a
Letter of Credit (L/C) to the name of seller’s company for the confirmation of payment.
4.3.3.3 Letter of Credit (L/C)

The documentary credit is a commitment on the bank’s part to place an agreement at the
seller’s disposal on behalf of the buyer under precisely defined conditions.

4.3.3.4 The terms Documentary Credit

In actual practice, a number of different expressions have emerged for this type of business,
all of which basically mean the same thing “Documentary Letter of Credit”, “Commercial
Letter of Credit”, “Letter of Credit”, “L/C”.

4.3.3.5 The main parties to documentary credit

1. Buyer (Importer).
2. Seller (Exporter).
3. L/C Issuing Bank (Buyer’s Bank).
4. Advising Bank (Issuing bank correspondent at seller’s place).
5. Negotiating Bank (Seller’s Bank).

4.3.3.6 Other operations

The bank does all traditional banking business including Islamic Banking services in selective
branches.

1. Deposits, which are the lifeblood for the bank, among the other modes, are mobilized
through a variety of saving scheme. The bank also handles Traveler checks, Credit
cards. Consumer credit facilities, Inland and foreign remittance of the fund and
operates in the money market.
2. In capital market operations, it engages itself in share and securities business, mutual
fund management and brokerage house activities.
3. Bank is poised to extend L/C facilities to its importer/exporter.
4. Customers through establishment of correspondent relations and Nostro Accounts with
leading Banks all over the world.
CHAPTER: FIVE
FOREIGN EXCHANGE
5.1 Foreign Exchange

Foreign Exchange Department is international department of the bank. It deals globally. It

facilitates international trade through its various modes of services. It bridges between
importers and exporters. If the branch is authorized dealer in foreign exchange market, it can
remit foreign exchange from local country to foreign country. This department mainly deals
in foreign currency. This is why this department is called foreign exchange department. The
term foreign exchange has different connotations in different contexts. Sometimes it is
referred to as the process of conversion of one currency into another, sometimes as the process
of transferring money from one country to another. In Bangladesh is has a legal a legal
definition too. In terms of section 2(d) of the F. E. R. Act 1947, as adapted in Bangladesh,
foreign exchange means foreign currency and includes instruments expressed in foreign
exchange, all deposits, credits and balance payable in foreign currency as well as foreign
currency instruments such as Draft, TC, Bill of Exchange, promissory note, and Letter of
Credit payable in any foreign currency. The business of foreign exchange is getting
increasingly complex and intensely competitive. However, in the backdrop of phenomenal
growth of Bangladesh‘s external sector, foreign exchange business provides a challenge as
well as an excellent opportunity to accelerate growth of bank‘s own business. This is the
Institution that facilitates international trade payment as banking channel is the way of
settlements. Besides, banks meet the other need of foreign exchange transactions of the people
of the country as they are authorized to deal in foreign exchange upon receipt of permission
from Central Bank under Foreign Exchange Regulation Act. All exports and imports are
executed through the intervention of banks. They make the way through which exporter can
get payment from importer. On the other hand they make the payment for the importer done
by the people of Bangladesh. Side by side, they provide funded and non-funded credit facility
in execution of International Trade.
5.2 Foreign Exchange Management Objectives and Policy

Effective foreign exchange management is a financial tool for ensuring the profitability of
the company’s primary business. As such, the company should prepare a comprehensive
policy statement on foreign exchange risk that clearly states the company’s objectives, the
tactics for attaining these objectives, and the allocation of responsibility for exercising these
tactics.

5.3 Legal Basis of Foreign Exchange Transactions

Foreign exchange transactions are performed under some legal regulations, as follows:

 Foreign exchange Regulation Act- 1947

 Import and Export Control Act-1950
 Customs Act- 1969
 Export policy issued by Ministry of Commerce.
 International rules issued by International Chamber of Commerce (ICC).
 Different foreign exchange circulars issued by Bangladesh Bank.

5.4 Foreign Exchange Operations of EXIM Bank

Foreign exchange department deals with foreign currency and the transaction of it. The
major job of this department is listed below:
1. Letter of Credit (for Export & Import)
2. Dollar/Travelers Cheque (TC) Endorsement
3. Foreign Remittance
4. Foreign Currency Account
5.4.1 Letter of Credit (For Export & Import)

Letter of Credit is a guarantee or undertaking or commitment to the beneficiary/exporter for

making payment issued by the issuing bank on behalf of the importer upon fulfillment of some
conditions. As distance involved in international trade, buyers and sellers do not know each
other. It is difficult for both the buyers and seller to appreciate each others‘ integrity and credit
worthiness. Apart from this it is also difficult to know various regulations prevailing in their
respective countries regarding export and import. Thus the buyer wants to be assured of goods
and sellers want to be assured of payments. Central Banks, therefore assure these things to
happen simultaneously by opening Letter of Credit guaranteeing payments to seller and goods
to buyer. By opening a Letter of Credit on behalf of buyer in favor of seller, commercial banks
undertake to make payments to a seller subject to submission of documents drawn on in strictly
compliance with Letter of Credit terms giving title of goods to the buyer. It is a conditional
guarantee. The Letter of Credit thus constitutes one of the most important methods of
financing foreign trade

1. Is to make a payment to or the order of a third party (―the Beneficiary‖), or is to accept and
pay bills of exchange (Draft‘s) drawn by the Beneficiary,
2. Authorizes another bank to effect such payment, or to accept and pay such bills of exchange
(Draft(s)),
3. Authorizes another bank to negotiate,
Against stipulated document(s), provided that the terms and conditions of the Credit and
complied with

On the other hand Letter of credit can be defined as a ―Credit Contract‖ whereby the buyer‘s
bank is committed (on behalf of the buyers) to place an agreed amount of money at the seller‘s
disposal under some agreed conditions. Since the agreed conditions include amongst other
things, the presentation of some specified documents, the letter of credit is called
Documentary letter of credit.
5.4.1.1. Types of Letter Of Credit:

There are many types of Letter of Credits that are used in different countries of the world.
But International Chamber of Commerce (ICC) vides their UCPDC- 500, which denotes
only two types of letter of credit

1. Revocable Letter Of Credit:

A revocable credit may be amended or cancelled by the issuing bank at any moment and
without prior notice to the beneficiary. That is to say, this type of letter of credit can be revoked
or cancelled at any time without consent of, or notice to the beneficiary. In case of seller
(beneficiary), revocable credit involves risk, as the credit may be amended or cancelled while
the goods are in transit and before the documents are presented, or although presented before
payments has been made. The seller would then face the problem of obtaining payment on the
other hand revocable credit gives the buyer maximum flexibility, as it can be amended or
cancelled without prior notice to the seller up to the moment of payment buy the issuing bank
at which the issuing bank has made the credit available. In the modern banking the use of
revocable credit is not widespread.
2. Irrevocable Letter Of Credit:

An irrevocable credit is a documentary credit, which cannot be revoked, varied or

changed/amended or cancelled without the consent of all parties- buyer (Applicant), seller
(Beneficiary), Issuing Bank, and Confirming Bank (in case of confirmed Letter of Credit).
Irrevocable Credit gives the seller greater assurance of payments, but he/she remains
dependent on an undertaking of a foreign bank.
Liability of the Issuing and Conforming Banks:
An irrevocable credit constitutes a definite undertaking of the Issuing Bank, provided that the
stipulated documents are presented to the Nominated Bank or to the Issuing Bank and that the
terms and conditions of the credit.

5.4.1.2. Parties Involved in Letter Of Credit (L/C):

1. The Applicant:

The applicant is the party who approaches a bank in order to issue the L/C. Generally, the
applicant is an importer who reaches an agreement with the exporter before approaching the
bank to issue the L/C. The applicant is also normally obligated to reimburse the issuing bank
for any payments made under the L/C.
2. The Issuing Bank:

It is the bank which opens/issues a L/C on behalf of the importer..

3. The Advising Bank:

It is the bank through which the L/C is advised to the exporters. This bank is actually
situated in exporter's country. It may also assume the role of confirming and / or negotiating bank
depending upon the condition of the credit.
4. The Beneficiary:

The beneficiary or exporter is the party entitled to draw payment under the L/C. The
beneficiary will have to present the required documents to avail payment under the L/C.
5. The Confirming Bank:

It is the bank, which adds its confirmation to the credit and it, is done at the request of
issuing bank. Confirming bank may or may not be advising bank.

6. The Negotiating Bank:

The bank that agrees to examine the documents under the L/C and pay the beneficiary is
called the negotiating bank. Typically, the advising bank is nominated as the negotiating
bank

7. Reimbursing Bank:
It is the bank, which would reimburse the negotiating bank after getting payment -
instructions from issuing bank.

5.4.1.3 Types of L/Cs provided by the EXIM Bank Limited:

1. Back to Back L/C:

Back-to-Back L/C is defined as a credit, which is opened at the instructions and the request
of the beneficiary of the original export L/C on the strength credit. Back to Back is a term
given to an ancillary credit, which arises where the seller‘s uses the credit, granted to him by
the Issuing Bank to its supplier. Sometimes Back-to-Back credit is called Counter Veiling
Credits, i.e. credit and counter credit.
There are two types of Back-to-Back credit:
1. Foreign Back to Back Credit.

2. Local Back to Back Credit

2. Revolving L/C:

A revolving credit is a credit, which provides for the amount of the credit to be renewed
automatically after use without the need to renew the credit every time. It can be resolved
with respect to either:
 Time

 Amount (i.e. total value of the credit)

3. Transferable L/C:

A transferable credit is a credit, which can be transferred in whole or part by the original
beneficiary to one or more ―Second beneficiaries‖. It is normally used when the 1st
beneficiary does not supply the goods himself, but acts as an intermediary between the
supplier and the ultimate buyer.

5.4.1.4 Procedure for Opening L/C

An importer who is desirous to import goods from foreign country will apply to issuing bank
for opening L/C and the importer will provide an application mentioning following aspect:
 Full particulars of applicant’s bank account.
 Types of business.
 Historical background.
 Amount of required L/C.
 Terms of payments.
 Name of imported goods.
 Repayment schedule and source of fund.

.
5.4.1.5. Opening L/C of EXIM Bank Ltd.

The EXIM Bank may now proceed the opening the credit on behalf of their own
customers with them accept government organizations. Necessary entries to be given in
the L/C opening register by allocating a L/C number and following vouchers are to be
passed for completion of opening transactions at BC selling rate (spot):

1. Creation of L/C liability

Particular Dr. Cr.

Customers liability on L/C cash xxxxx

Bankers liability on L/C cash xxxxx

2. Margin/Commission & Charges:

Particular Dr. Cr.

Client‘s Account xxxxx

Sundry deposit margin on L/C xxxxx

Income A/C commission xxxxx

Sundry deposit Document Handling Charge xxxxx

S/DVAT (% of Commission) on L/C xxxxx

Income A/C (Courier Charges) xxxxx

Income A/C (Postage/Telex) xxxxx

Income A/C (Other Charges) xxxxx

5.4.1.6. Documents Required for Opening L/C

Import shall submit following documents for opening L/C-

 Valid import registration certificate (commercial/ industrial).

 TIN certificate.
 VAT registration certificate.
 Membership certificate of a recognize Trade Association as per IPO.
 A declaration that the importer has paid income tax or submitted income tax return for
the preceding year.
 Performa invoice or indent duly accepted by the importer.
 Insurance Cover Note with Money Paid Receipt covering value good to the imported
plus 10% above.
 L/C application form duly signed by the importer.
 Letter of Credit Authorization Form (LCAF) commercial or industrial as the case may
be, duly signed by the importer and incorporating. New ITC number at least 6 digits
under Harmonized System as given in the Import Trade Control Schedule 1998.
5.4.1.7. Issuing the Letter of Credit of EXIM Bank Ltd.

In this stage, EXIM bank fills the bank-specified-form for issuing Letter of Credit. Generally a
Letter of Credit contains the following information and terms and conditions:
 Charges;

 Country of origin of goods.

 Currency and amount.

 Date and place of the expiry of the Documentary Credits.

 Instruction for negotiating bank;

 Description of goods and quantity.

 Documents required for negotiation;

 Last date of shipment;

 Letter of Credit Authorization (LCA) number, IRC (Import Registration Certificate)

number and Harmonized System (HS) code;

 Mode of Carrying –Air/Ship/Truck;

 Name and address of beneficiary ;

 Name and address of the advising bank;

 Name and address of the applicant;

 Name of the issuing Bank and Branch;

 Negotiating bank preferably freely negotiable in any bank;

 Number of Letter of Credit and date of opening ;

 Payment Term-Sight/Usance ;

 Period of Negotiation ;
  Period of presentation ;

 Port of Loading and port of Discharge;

 Reimbursing Bank and payment mode;

 Terms and conditions regarding Transshipment and Partial Shipment;

5.4.1.8. The Letter of Credit (L/C) Process:

The various steps involved in the operation of a letter of credit are described as follows. Please
refer to Figure below for an elaborate illustration.
1. The importer and exporter have made a contract before a L/C has been issued.

2. The importer applies for a L/C from his banker known as the issuing bank. He may have to
use his credit lines.
3. The issuing bank opens the L/C that is channeled through its overseas Correspondent bank,
known as the advising bank.
4. The advising bank informs the exporter (beneficiary) of the arrival of the L/C
5. Exporter ships the goods to the importer or other designated place as stipulated in the L/C.

6. Meanwhile, the exporter also prepares his own documents & collects transport documents or
other documents from relevant parties. All these documents will be sent to his banker, which is
acting as the negotiating bank.
7. Negotiation of export bills happens when the banker agrees to provide him with finance. In
such case, he obtains payment immediately upon presentation of documents. If not, the
documents will be sent to the issuing bank for payment or on an approval basis as in the next
step.
8. Documents are sent to the issuing bank for reimbursement or payment
9. Issuing bank honors it's undertaking to pay the negotiating bank on condition that the
documents comply with the L/C terms and conditions.
10. Issuing bank releases documents to the importer when the latter makes payment to the former
or against the latter's trust receipt facility.

5.4.1.9. Mechanism of L/C

5.4.2 Dollar &Travelers Cheque Endorsement

EXIM is an Authorized Dealer of American Express T/C. At the same time, they can buy and
sell T/C and dollar. Every morning they get a telex from Head Office, Which carries the rate of
the foreign currency transaction of the day. EXIM fix the rate by them. At the end of the each
month the branch uses to submit all supportive documents (all foreign transactions documents
and balance of the foreign currency) to the Bangladesh Bank and their Head Office.
5.4.3 Foreign Remittance

Foreign DD and receiving any bill from foreign country is known as foreign remittance. The
amount of foreign remittance is very significant in EXIM Bank, Gulshan Branch.

5.4.4 Foreign Currency Account

A Foreigner, a Wage Earner working in foreign country can open this account, but it is possible
to open a foreign currency (Dollar) account in Elephant Road Branch. The account holder gets a
cheque book against the account and has to mention the amount in respective currency.

5.5. Functions of Foreign Exchange Department

Foreign exchange department performs many functions to facilitate the foreign exchange
transactions. These are-
 Facilitating Import Trade.
 Facilitating Export Trade.
 Providing funded and non-funded credit facility.
 Provide Non Commercial Remittance.
 Maintaining Foreign Currency Accounts.
 Selling of Foreign Currency Bond.
 Preparation and Submission of statements.

The above mentioned functions are done by three sections namely-

Foreign Exchange

Foreign
Import Section Export Section Remittance
Section
5.5.1. Import Section

Import is the flow of goods and services purchased by economic agent staying in the country from
economic agent staying abroad. We can simplify import as a means purchase of goods and services
from the foreign countries into Bangladesh. Normally consumers, firms and government of
Bangladesh import foreign goods to meet their various necessities. Import section helps business
and other people to import goods. In international environment, buyers and sellers are most of the
cases unknown to each other. So seller always seeks guarantee is called Letter of Credit. Thus the
contract between importer and exporter is given a legal shape by the banker by its ‘Letter of
Credit’. When a buyer goes to import some goods from a foreign buyer, he request his bank makes
payments to the exporter of goods. And the bank recovers the amount from the importer.

5.5.1.1. Import mechanism

To import, a person should be competent to be an importer. According to import and export control
act, 1950, the officer of the chief controller of import and export provides the registration (IRC) to the
importer. After obtaining this, this person has to secure a letter of credit authorization (LCA) from
Bangladesh Bank and then a person becomes a qualified importer. He is the person who requests or
instructs the opening bank to open an L/C. he is also called opener or applicant of the credit.

5.5.1.2 Legislative Bonding for Import

Imports are foreign goods and services purchased by consumers, firms and Governments in
Bangladesh. To importer, a person should be competent to be an ‘Importer’. According to Import
and Export Control Act, 1950, the Office of Chief Controller of Import and Export (CCI & E)
provides the registration (IRC) to the importer by Ministry of Commerce in terms of the Import
and Export Control Act, 1950
Import section of Foreign Exchange Department facilitates import related banking services
concerns to import of goods in cash foreign exchange. But one thing should be mentioned that
import section does not deal with ‘Back to Back importation of Goods’. This is supervised by the
Export Section.
The main facilities provided by the import section are:

 Opening of Letter of Credit.

 Facilitating payments to the Exporter on behalf of the Importer.
 Providing Funded and Non-funded Credit Facility.
 Issuing Bank guarantee in foreign currency on behalf of Foreign Companies.

5.5.1.3. Import Registration Certificate (IRC)

The Import Registration Certificate (IRC) is a security document issued under embossing seal and
duly signed by authorized officials of CCI & E and to be kept under safe custody. The IRC is
required to be renewed every year on payment of usual fees.

The documents to be required for Import Registration Certificate are as follows-

 Income Registration Certificate;
 Nationality Certificate;
 Certificate from Chamber of Commerce and Industry Registered Trade Association;
 Bank Solvency Certificate;
 Copy of Trade license
On receiving application, the respective CCI&E officer will scrutinize the documents and
conduct physical verification and issue demand note to the prospective importers to furnish the
following papers through their nominated Bank —
 Original copy of treasury deposited as IRC fees
 Assets Certificate
 Affidavit from 1st class Magistrate
 Rent receipt
 Two passport size photograph
 Partnership deed in case of partnership firms
  Certificate of Registration, Memorandum and Articles of Association in case of Limited
Company.

After scrutinizing and verifying, the nominated Bank will forward the same to the respective
CCI&E office with forwarding schedule in duplicate through Banks representative. CCI&E then
issue Import Registration Certificate to the Applicant

5.5.1.4. Functions of Import section

1. IMP form:
The form IMP contains the followings—
 Name and address of the Authorized dealers.
 Amount of remittance to be permitted (i.e. L/C amount)
 LCA form no. Date and value in Taka.
 Description of goods.
 Invoice value in foreign currency, (i.e. L/C amount)
 Country of origin.
 Port of shipment.
 Name of steamer / Airline (i.e. By road/ship/air)
 Port of importation.
 Indenter's name and address.
 Indenter's registration number with CCI & E and Bangladesh Bank.
 Full name and address of the applicant.
 Registration number of the applicant with CCI & E.
 Type of LCAF.
2. Import Procedures:

Procedures, which are followed at the time of Import, are as follows:

 The buyer and the seller conclude a sale contract provided for payment by documentary
credit. The buyer instructs his bank (the Issuing bank) to issue a credit in favor of the
Seller/Exporter/Beneficiary.
 The Issuing Bank then send messages to another Bank (Advising Bank/ Confirming
Bank), usually situated in the country of seller, advice or confirms the Credit Issue.
 The Advising / confirming Bank then informs the seller through his Bank that the Credit
has been issued.
 As soon as the seller receives the credit, if the credit satisfies him the he can reply that, he
can meet its terms and conditions, he is in position to load the goods and dispatch them.
 The seller then sends the documents evidencing the shipment to the Bank where the
Credit is available (Nominated Bank). This can be the Issuing Banker Confirming Bank;
Bank named in the Credit as the paying, accepting and Negotiating Bank.
 The Bank then checks the documents against the credit. If the documents meet the
requirements of the credit, the Bank then pay, accept or negotiate according to the terms
of credit. In the case of credit available by negotiation, Issuing Bank will negotiate with
recourse.
 The Bank, if other than the issuing bank, sends the documents to the issuing Bank.
 The issuing Bank checks the document and if they found that the document has met the
credit requirements, they realize to the buyer upon payment of the amount due or other
terms agreed between him and the issuing Bank.
 The buyer sends transport documents to the carrier who will then proceed to deliver
goods.

 An importer is required to have the followings to import through the bank

 A bank account in the bank.
 Import Registration certificate.
 Taxpaying identification number.
 Performa invoice indent
 Membership certificate
 LCA (Letter of credit application) form duly attested.
 One set of IMP form.
 Insurance cover note with money receipts.
 Others.
5.5.2 Export Section:

The goods and services sold by Bangladesh to foreign households, businessmen and Government
are called export. The export trade of our 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 export.

5.5.2.1 Export Operation of EXIM Bank

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 of our country. Bangladesh exports most of its readymade garments products to
U.S.A and European Community (EC) countries. Bangladesh exports about 40% of its
readymade garments products to U.S.A. Most of the exporters who export through EXIM Bank
are readymade garments exporters. They open export L/Cs to export their goods, which they
open against the import L/Cs opened by their foreign importers.

5.5.2.2 Types of Export:

Export must be done as under:
1. Export against L/C or firm contract.
2. Export against advance payment.
3. Export under consignment basis.
5.5.2.3. Export Process Guidelines:

All exports from Bangladesh are subject to export trade control exercised by the Ministry of
Commerce through Chief Controller of Imports and Exports (CCI&E) under the provisions of
“Import & Exports (Control) Act 1950” read with provisions of Importers, Exporters and Indenters
(Registrations) Order, 1981.

The ensuing Export Process Guidelines have been presented in six (6) sections covering under
mentioned areas:

(I) Receiving export LC & advising to beneficiary

(II) Procurement of raw material by opening BTB LCs or Export-Reprocessing LC.

(III) Pre-shipment finance

(IV) Export document scrutiny, processing and negotiation

(V) Post shipment finance

5.5.2.4 Legal Requirements of EXIM Bank Ltd. into the Export

Although payment aspects of exports are Bangladesh Bank‘s concern, the export policy Order
announced by the Ministry of Commerce controls physical aspects. Bangladesh Bank has set out
elaborate procedure and laid down detailed rules and regulations concerning Export and Export
payments. All exports, to which the requirement of declaration applies, must be declared on the
export Form. The branch should before certifying any export form, consider and take notice of
the following:
 The intended exporter shall have valid Export Registration Certificate.
 Payment for goods exported from Bangladesh should be received through the branch in
freely convertible foreign currency or in Taka from a non-resident Taka account of a
bank branch or correspondent abroad.
 Commission, brokerage and other trade charges are admissible only up to a maximum of
5% of the value of goods. The charges beyond 5% may be admissible subject to prior
approval of the Bangladesh Bank.
 In order to avoid any loss of foreign exchange to the country, the branch should see that
 Arrangements have been made for realization of export proceeds within prescribed period
of 4(four) months.
 Arrangement has been made for receipt of title to goods like Bill of Landing, Airway Bill
etc, by the branch on shipment of goods.
 The Export Form is signed either by the exporter or one holding valid legal power of
attorney from exporter and the terms of the power of attorney are such that both the
exporter and the attorney may be held responsible jointly and severally for realization of
export proceeds.
 In respect of export of goods by land route or by sea, the Bill of Landing, Railway
Receipts and other documents of title to cargo should be drawn only to the order of
EXIM Bank Limited.
 In respect of export of goods by air, the Airway Bills and any other documents of title to
cargo should be drawn to the order of EXIM bank Ltd. in the country of important
nominated by the branch.
5.5.2.5. Issuance, Certification and Disposal of Export Forms

The Export Forms are in quadruplicate. The branch to their exporter clients will supply these
Forms. In all cases the forms will be completed and signed by the exporter on this authorized
attorney. After receipt of the Exp Forms from the exporters for certification purpose, the branch
will see and ensure that each set of the forms is duty filled in.
Therefore, they will record full particulars for the forms in the Export Register (MBGx-11) and
assign a number for each set of the Exp forms in the 5 boxes between AD‘s code number and
year. The branch will also have to complete the forms themselves by monitoring all the required
information and code number and certify the forms in the manner prescribed therein under seal
land signature of the authorized official.
After the branch certifies he forms these should be submitted to the customs authorities after
filling in the portion relating to them and affixing therein their seal and signature will return the
duplicate, triplicate and the quadruplicate copies to the exporter/his agent. The customer‘s
authority will forward the original cop to the Bangladesh Bank. The exporter must submit all the
remaining copies of the Exp form and the shipping documents to the branch in time to enable the
branch to submit the certified duplicate copy of the Exp forms to the foreign exchange policy
department, Bangladesh Bank within 14 days from the date shipment of the goods.
The branch on receipt of export proceeds from abroad shall certify on the reverse of the triplicate
copy of the form retained with them and forward it to the Bangladesh Bank with the usual
monthly return. The branch for record will retain the quadruplicate copy.

5.5.2.6. Negotiation Discounting of Export Bills (Local)

The branch may negotiate/discount of export bills received by them from local supplies-cum-
exporters against inland BTB/Cs or inland L/Cs having tenor at sight or usance. Upon received
of the documents the branch shall examine the documents with the L/Cs. If the documents appear
on their face not to be in compliance with the terms and conditions of the credit, the beneficiary
may be advised to rectify the discrepancies and/or the branch may send the documents on
collection basis with the permission of the exporter. Purchase/collection registers assigning a
number to each bill. The branch shall mail export bills under a forwarding schedule enclosing
alldocuments as per documentary credit incorporating appropriate Payment instructions for
payment/acceptance of issuing bank. Upon receipt of the acceptance and maturity from the
concerned issuing/drawing bank, the bill may be purchased/discounting would be prepared as per
banks format under the signature of an authorized official and should be
Placed to the manager for disposal instruction/sanction. The branch then, make payment to the
party by passing the voucher as per calculation shown in the discounting proposal at usance
buying rate as per respective tenure of the usance bills.
The branch shall remind the drawee bank to make payment of the bill on maturity and follow up
to be continued till realization of the bill. Overdue interest @ 16% p.a. is to be recovered from
the drawee bank or from the exporter if the bill is realized after maturity date.
5.5.2.7. Export Financing Process of EXIM Bank

A. Flow Chart of Export L/C and Export Finance

Issuing Bank 3. Pass LC Advising Bank

5. Request for Transfer

2. Request of Issue LC

4. Advice LC

6. Transfer LC
Importer 1. Proforma Invoice 1st Beneficiary

8. Make authentication of the Advice

If no transfer then, skip 2nd Beneficiary and
as well as Sequence No. 5 & 6
18(a). Produce & Ship goods

9. P/I of BB LC
Beneficiary of BB
2nd Beneficiary
LC
13(a). Shipment of goods
21. Credit after Adjusting all liabilities

18(b) Submit of Export Documents

13(b) Submit of Documents

10. Request to Issue BB LC

16. Request for ECC/PC
17. Disburse ECC/PC
12. Advice BB LC

7. Submit Export LC
19. Send the Documents
20. Receive the Export Proceeds

11. Issue & Pass BB LC

Advising Bank/ 14. Send Documents

Negotiating Bank Negotiating Bank/ Importer of BB LC
of BB LC 15. Acceptance is provided

22. Pay as per Acceptance

N.B. The flow chart should be read in terms of number from sequence 1 to 22.

Flowchart: Export Financing Process of EXIM Bank

5.5.2.8. Foreign Exchange Transaction Charge

How many charges to foreign exchange transaction:

In case of import:

Types of service period Rate of charges

L/C opening commission 1st quarter .25%
under cash (100% cash
margin) for each subsequent quarter .25%

minimum 1000
L/C opening commission 1st quarter .40%
under cash(below 100%
cash margin) for each subsequent quarter .40%

minimum 1000
L/C opening commission 1st quarter .40%
under cash
(loan/credit/barter) for each subsequent quarter .30%
1000
minimum
L/C opening commission ( 1st quarter .40%
back to back, L/C on account
of export oriented garments, for each subsequent quarter .40%
textile)
minimum 1000
L/C opening commission for 1st quarter .50%
deferred payment
for each subsequent quarter .50%
 minimum 1000

If L/C is transmitted by mail/ India At actual cost

courier
Other SAARC country At actual cost

All other country At actual cost

If L/C is transmitted by swift 750

5.5.3. Foreign Remittance:

Foreign remittance is the transfer of foreign currency from one country to another country.
Actually, foreign remittance is purchase and sale of freely convertible foreign currencies as
permissible under exchange control regulations of the country. Foreign remittance is very
important for the country as valuable foreign exchange is involved in the transfer mechanism.

5.5.3.1. Types of Remittance:

There are two types of foreign remittance

1. Foreign Inward Remittance

2. Foreign Outward Remittance
1. Foreign Inward Remittance

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

2. Inward Remittance:
 Telegraphic Transfer (TT)

 Mail Transfer (MT)

 Foreign Draft (FD)

 Payment Order (PO)

 Travelers Check (TC)

 Foreign Currency Notes

3. Collection procedure:
 To make entry in Foreign Bills Collection Register

 To prepare forwarding Schedule in Quadruplicate

 To prepare vouchers on realization of proceeds Payment Procedure

 To check up the custom declaration

 To consult purchase agreement

 To obtain the signature of TC and to verify the same with the previous signature of the
beneficiary on the TC

 To make entry register for TC and Drafts purchased

  To prepare vouchers and FET schedule

 Lastly send for collection

4. Cancellation of Inward Remittance:

In the event of any inward remittance which has already been reported to the Bangladesh Bank,
being subsequently cancelled, either in full or part, because of non-availability of beneficiary
Authorized Dealer must report the cancellation of inward remittance as an outward remittance of
form ―T/M‖ required document are

 The date of return in which the inward remittance was reported

 The name and address of the beneficiary

 The amount of the purchase as effected

 Reasons for cancellation

Foreign Outward Remittance

Remittance from our country to foreign countries is called outward foreign remittance. Sales of
foreign currency by the authorized dealer or formal channels may be addressed as outward
remittance. The authorized dealers must utmost caution to ensure that foreign currencies remitted
or released by them are used only for the purposes for which they are released. Outward
remittance may be made by appropriate method to the country to which remittance is authorized.
Most outward remittance is approved by the authorized dealer on behalf of Bangladesh Bank.
 Telegraphic Transfer (TT)

 Mail Transfer (MT)

 Foreign Draft (FD)

 Payment Order (PO)

 Travelers Check (TC)

  Foreign Check (FC)

 Foreign Currency Notes

Outward remittance in favor of beneficiaries outside Bangladesh may be made in any of the
following manners-

Formal channel:
Fund transfer from one country to another country through official channels, i.e. banking
channel, post office, and other private service channels, such as- Western money order, Neno
money order etc.

Informal Channel:
Fund transfer from one country to another country through hand by hand or over telephone in an
unofficial channel like as ―Hundy‖. Remittance collected by informal ―Hundy‖ rings operating
in Middle East countries and UK are also used to finance illegal trade and transactions

Approval in Bangladesh Bank

Bangladesh is always in scarcity of foreign exchange and foreign exchange business is restricted
can be transferred outside Bangladesh prior permission of Bangladesh Bank. Following documents
are required for approval-
 IMP form
 T/M (Traveling and miscellaneous) form
Foreign Currency Account

All local and foreign banks in Bangladesh, who are authorized by Bangladesh bank to deal in
foreign exchange, may maintain FC (Foreign Currency) accounts in the name of Bangladesh
nationals or persons of Bangladesh origin working and earning abroad including self employed
Bangladesh migrants.
The types of foreign currency accounts are:
1. Private Foreign Currency Account;
2. ERQ (Export Retention Quota Account),
3. NFCD (Non-resident Foreign Currency Deposit Account),
4. RFCD (Resident Foreign Currency Deposit Account).

Local Remittance Section

The commercial Bank Remittance facilities to its customer is to enable them top avoid risk rising
out of profit or loss in cash carrying cash money to one place to another or making payment to
someone in another places. Banks take this risk remit the fund on behalf of the customers to save
them from any awkward happening through the network of their branches and ensure payment to
the beneficiary in exchange of a little bit benefit known as commission. There are four mode of
remitting money from one place to another
Pay Order Issue:
 Following procedure is maintained for the issuance of pay order (PO):
 Customer is given a PO form.

 After filling the form carefully, the customer is pays the money in cash or by cheques.

 The concerned teller then issue PO on it’s specific block. This block has three parts, one
for bank and another two for customer. ―A/C payee‖ crossing its sealed on all PO issued
by the bank. The teller then
  Writes down the name and address of the beneficiary on the main part of the PO block. In
other two part name and address of the customer is written.

 The teller gives an entry to the registry book and maintains the same number of PO
block.

 Two authorized officer signed the PO block.

 At the end customer is provided with the two parts of the PO block after signing of the
backs of bank‘s part.

Demand Draft Issue:

 Customer is supplied with DD form.

 Customer fill up the form, which includes the name of the drawer, name of the payee,
amount of money to be sent, commission, name of the drawee branch, signature and
address of the drawer.

 The customer may pay in cash or by cheques from his accounts

 After the money is paid and the form is sealed and signed accordingly it is given to the
DD issuing desk.

 Bank part contains issuing date, drawer‘s name, payee‘s name and some of the money
and name of the drawee branch.

After finishing all the required information entry of the DD is given in the DD issuing register
and at the same time bank issues a DD confirmation slip is entered into the DD advice issue
register and a number is put on the confirmation slip form the same register. Later the bank mails
this advice to the drawer branch.
Telegraphic Transfer (TT):
Customer fills the TT form and pays the amount along with commission in cash or by cheques.
The concerned officer issues a coast memo after receiving the TT form with payment seal, than
signed it charge Tk. 40.00 and 15% of VAT on TT charge. The TT charge will increase @ Tk. 1
for every Tk. 1000.00.

Mail Transfer (MT):

 MT Issue: Following procedure is maintained while issuing a MT.
 Customer is supplied with MT form.

 Customer fill up the form which include the name of the drawer, name of the payee,
amount of the money to be sent, commission, name of the drawee branch, signature and
address of the drawer.

 The customer may pay in cash or by cheques from his account (if any).

 After the money is paid and form is sealed and signed accordingly it is given to the MT
issuing desk.

 Upon receiving the form the concerned officer issues a MT on a particular block

 MT block contain issuing date, drawer‘s name, payee‘s name, and sum of the money and
name of the drawee branch
 CHAPTER: SIX
Result Analysis and Findings
6.0 Foreign Exchange Business (Including Export, Import & Remittance)
Amount in crore BDT
Content 2011 2012 2013 2014 2015

Foreign Exchange Business 25440.75 27008.15 26865.27 28498.47 30226.64

Table: Foreign Exchange Business

Amount in crore BDT

Foreign Exchange Business

31000

30000

29000

28000

27000

26000

25000

24000

23000
2011 2012 2013 2014 2015
6.1 Foreign Exchange Business for last five years

Foreign Exchange Business

2%

51% 47%

Foreign Exchange Business Export Foreign Exchange Business Import

Foreign Exchange Business Remittace

6.2 Foreign Exchange Business 2015

Foreign Exchange Business

1%

51% 48%

Foreign Exchange Business Export Foreign Exchange Business Import

Foreign Exchange Business Remittace
Analysis:
From the above graph we see that amount of total imports Foreign Exchange Business are
increasing trend over the 5 years. It indicates that the bank is financing huge amount to help in
import materials and machineries. It also indicates the growth of foreign exchange business of
EXIM bank. It also collects remittance by western money union and other ways and provides
customer services.
6.1 Import Performance of EXIM Bank Ltd.

Amount in crore BDT

Content 2011 2012 2013 2014 2015
Import 12844.58 14331.44 13540.99 14679.56 15270.33
Business

Table: Import Business

Amount in crore BDT

Import Performnce
15500
15000
14500
14000
13500
13000
12500
12000
11500
2011 2012 2013 2014 2015

In the year 2015, import business of the bank was BDT 152.70 billion by handling 40,271
number of import letter of credit. Import business plunged by 0.87% in 2015 compare to the
previous year. The number of letter of credit are increasing that lead to high amount transaction
in import. That indicate the high performance of the bank
6.2 Export Performance of EXIM Bank Ltd.

Amount in crore BDT

Content 2011 2012 2013 2014 2015
Export Business 12221.73 12099.69 13035.33 13441.24 14579.64
Table: Export Business

Amount in crore BDT

Export Performance
16000
14000
12000
10000
8000
6000
4000
2000
0
2011 2012 2013 2014 2015

Analysis:
In the year 2015, export business of the bank was BDT 145.79 Billion by handling 38,857
number of export documents. Export business of the bank stood at BDT 145.79 billion in 2015
with a growth of 21.98% in comparison with the previous year
6.3 Foreign Remittance

Amount in crore BDT

Content 2011 2012 2013 2014 2015
Foreign 374.44 577.02 288.95 377.67 376.67
Remittance
Table: Foreign Remittance

Foreign Remittance
700
600
500
400
300
200
100
0
2011 2012 2013 2014 2015

Analysis:
Bank received BDT 3.76 Billion as wage earners remittance in the year 2015. It was BDT 3.77
Billion in 2014 which indicates declining of foreign exchange. In the chart, we can see the
fluctuation of foreign remittance over five years. In 2012, remittance was 5.77 billion whereas in
2013, remittance was 2.88 billion which was changed dramatically because of political
instability.
6.4 Findings of the study

In every reports, there have some precise findings, this report also has some findings. In my
study I want to demonstrate outline foreign exchange management and activities of EXIM Bank.
As I worked three months as an internee so I had chance to look thoroughly EXIM Banks
positive & negative aspects. In this study, I found the pros and cons of foreign exchange
management and activities.

6.4.1 Foreign Exchange Department:

1. In foreign exchange department it is required to communicate with foreign banks and
International Division of Exim Bank frequently and quickly. To make the process easily modern
communication media for example e-mail, Fax, Internet etc. Should be used.

2. Most of the employees are not business graduate. They are from other background. The do not
have profound knowledge about business procedures.

6.4.2 Other findings of the Study

 EXIM Bank is Shariah based Islamic bank. Most of people in our country do not have
proper knowledge about Islamic banking rules. So EXIM Bank has few problems:
 Shariah banking is the indistinct phenomenon in our country. So most of their people
have not proper knowledge about the activities of the Shariah Bank as well as its
investment policies. Which hamper the large scope of the investment of EXIM Bank.

 As EXIM Bank Limited is not a foreign bank, it cannot attract as much as clients for
Foreign Trade. Because client prefer Global bank for foreign transaction.

 According to some clients, opinion introducer is one of the problems to open an account.
If a person who is new of the city wants to open account, it is a problem or him/her to
arrange an introducer of SB or CD accounts holder.

 Bankers face enormous problem to fill up loan related paper like parties loan application,
stock report, Net worth valuation report etc.
 In our country there are no prescribing Islamic banking guidelines from banking authority
(Bangladesh Bank).

 Proper documentation under Islamic rules is some creates serious problems for
investment taking practices.

 From the previous years it has been observing that frequently the currency of taka is
devaluating and dollar currency is going very high. And devaluation of taka is hampering
import business and other sectors too.

 Government new regulations like as L/C margin reduce the Foreign Exchange
transaction.

 Strict controlling of Central Bank in foreign currency endorsement is a major problem.

 Decisions are centralized

 Sometimes the valuation of properties are does not calculate properly for that reason
customer is sufferer. It does not offer various loan projects than other Bank.

 In some cases the number of employee engaged in rendering specific services is

insufficient.
 Foreign exchange business is increasing day by day but there is some fluctuation in
foreign exchange business during political instability.
 The bank has some advantage for the name of export import bank.
CHAPTER: SEVEN
Suggestion and Recommendation
7.0 Suggestions & Recommendations

EXIM Bank has proven itself as leading and efficient one in modernizing new financial products
and services and in snatching the market in which it works. Banking is a services – oriented
marketing, its business profit depends on its service, quality. That is why the authority always
should be about their service quality and need modern technologies practice.

7.1 Recommendations
 In many cases, the foreign banks want confirmations from other foreign banks with
which this bank has correspondence. This proves the poor financial condition of our
banking sector and also our country. Banks should try to improve this situation.

 The bank should arrange more training programs for their officials. Quality training will
help the officials to enrich them with more recent knowledge of foreign exchange
activities.

 As the clients are not in favor of introducer system that currently present, if possible the
rule of introducing to open an account should be changed. Because many people face
different problems to arrange an introducer in the time of opening accounts.

 Margin and commission on L/Cs varies from customer to customer. A few customers are
allowed to open L/C even with nil margin and fees commission. I think the bank should
review the customer transaction behavior for a period of time and should develop a
certain policy in this regard.

7.2 Suggestions
 To offer online services all over the country instantaneously.
 To directly credit the foreign remittances through online banking.
 To easy procurement & procedures in respect of all transaction.
 To strengthen sufficient logistic supports.
 To develop customers service with harmony.

 Prompt customer’s service is needed, like one stop services.

 To recruit sufficient skilled manpower with sound computer literacy and English
proficiency.

 To motivate the human resources for mobilizing deposit, reduction of overdue etc.

 To analyze & build-up consciousness of competitors strategies.

 To enhance employees remuneration comparing to others.

 If the enter general Banking system is fully computerized then they satisfy the customer
by provide fast service.

 If they establish networking system with their branches then it can easily transfer data
within short time.

 If they cancel the introducer system then they can collect more deposit through new
account and it also satisfied the customer.

 In Foreign Exchange Department it is require communicating with foreign bank

frequently and quickly. To make the process easy and quick the whole system should be
computerized and modern communication media for example e-mail, fax, Internet should
be used.

 Up to date banking software should be use to give better service to the customers.

 The Software in General Banking as well as foreign exchange should be upgraded.

 The valuation of the property should be calculated by the surveyors.

 Online Banking should be provided for fast services

CHAPTER: EIGHT
Conclusion
8. Conclusion

The purpose of the report was to do an evaluation of Foreign Exchange management and
activities with the EXIM bank limited and scope for its improvement. As an EXIM bank limited
face a tremendous pressure with the customer and the department's officials try to handle the
customer carefully.
The banking service of the EXIM Bank Limited is getting modernized day – by – day. The
customers are choosing EXIM Bank Limited as best services among other commercial banks.
Day by day EXIM Bank Limited increases their banking systems. They try to give the best
service to their customer. EXIM Bank ltd. increases its customer service and the image has put
excellent effect on consumer minds its customers are growing rapidly.
EXIM bank has converted all of their system and policy of traditional banking to Islami 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 lies the success of Credit Financing.
During the course of my practical orientation I have tried to learn the practical banking activities
to realize it with my theoretical knowledge, which I have greathearted and going to acquire from
various courses of my BBA program.
As an internee at Exim Bank Ltd, I have truly enjoyed 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.