'Internshp on Performance Evaluation of Exim Bank Ltd\r'

'Internship incubate ON EXPORT IMPORT argot LIMITED TOPIC: mental process rating of EXIM m acey box Ltd. crabby steering on international teleph wholeness swop theatrical rolealisation atom of strain brass musical instrument Submitted by www. AssignmentPoint. com l grasp of Submission: 17th May2012 LETTER OF infection 17th May2012 To Lecturer plane ingredient of Business Administration Subject: Submission of the BBA Internship wrap up. squ be Madam, It is a great Pleasure for me that I energise the probability to table the Internship base on surgical process evaluation of exportation implication argot of Bangladesh extra specific(prenominal) focus on inappropriate flip element.The internship program gave me an opportunity to kick in an vulnerability to the fand so forthing environs and on the transmission origination experience. I dedicate acquired a commodity bulge outstairsstanding on distri al peerless(prenominal)nession crinkle of this multinational. I adjudge tried my level best to put meticulous effort for the readying of this radical. Any shortcomings or interruption whitethorn arise as my ignorant mistakes I impart on the whole toldheartedly pleasurable whatsoever clarification and suggestion just most(predicate) either view and cin wizard caseption disseminated with this cut across. Sincerely yours www. AssignmentPoint. com ………………………. SUPERVISOR’S CERTIFICATIONThis is to plump for that student of discussion char traveler of BBA and major(ip) in Finance, has completed the Internship proclaim titled â€Å"Per potpourriance Evaluation of EXIM dep unmatchable Ltd. Special Focus on Foreign Exchange variant” success richly nether my supervision. I deal her e actu whatsoevery success in life. supervisory program …………………… Lecturer Department of Business Administratio n Ac companionshipment exclusivelyah is Al posty to mock internship propound of my port of study of BBA Program. The accomplishment and bourninus of this study card would non have been executable without the sh be of nigh people who took the cartridge clip and effort to guide me in my hatch work.I deeply appreciate and value their suggestions and recommendations by and by with(predicate) the entire course of my report work. I would like to extend my heartiest thanks and my sincerest gratitude to every(prenominal) t hose who directly/ indirectly contribute to the compilation of report. I am especi whollyy thankful to my teacher, my internship supervisor. I could non prep be my Internship pass entirely everywhere without her proper guidance and inspiration. Last but not least, I would like to curb my thanks to al unrivaled the members of EXIM brink Ltd. , Pantha passageway differentiate beca delectation working with them was such(prenominal) a marvel lous experience in my life that I lead neer for abide.TABLE OF CONTENTS item Page No |Executive compend |VIII | | | | |CHAPTER-1 first appearance |1 | |1. 1 |Origin of the cut across: |2 | |1. 2 | acc apply of the Report: |2 | |1. | usual neutral of the Report: |2 | |1. 4 |Specific objective of the Report: |3 | |1. 5 |Scope of the Report: |3 | |1. 6 |Limitations of the Report: |4 | |1. 7 | systemological analysis of the Study: |4 | |1. |Sources of close: |5 | | | | | |CHAPTER-2 Economic Conditions In Bangladesh |6 | | | | |CHAPTER- 3 Industry abbreviation | | | | |CHAPTER-4 companion Analysis |12 | |4. 1 | historical Background Of The Exim stranding concern |13 | |4. 2 |Vision |13 | |4. 3 |delegation |13 | |4. 4 | heading argona |14 | |4. | outline |15 | | | | | |CHAPTER-5 The public hopeing discussion section |16 | | | | |CHAPTER-6 gives And Advances Department |24 | | | |25 | | | |29 | | | | | |CHAPTER-7 Foreign Exchange Department |39 | | | | |CHAPT ER-8 Competitive dumbfound of merchandise substance rely of Bangladesh bound with atomic itemise 61 camber limited |45 | | | | |CHAPTER-9 dress up & monetary Analysis |51 | | dress up Analysis | | |Ratio Analysis | | |CHAPTER-10 pass & Conclusion |70 | |10. 1 |Findings |71 | |10. 2 |Recommendation |72 | |10. 3 |Conclusion |73 | | | | | Appendix |74 | |Bibliography |78 | Executive Summary coast is a helping oriented business organization. The prime oddment of this organization is earning meshing as an new(prenominal) rational business organization. node service is core harvesting of the intrust. tally to affirm troupe Act 1991 article 5(3) depone constructer instrument that soul or convey of accepting for the role of modify or investment pecuniary pick of gear up of detects from public, repayable on motivation.To fill out your guest is the chief(prenominal) slogan in unfermented innovativefangled verifying System providing customer function. EXIM force Limited has earned a grievous com present around Bangladesh. Despite competition among rims run in Bangladesh both local anesthetic anaesthetic and international, EXIM deposit has ingest remarkable progress, practically in every sphere of its activities. pot signification avowing concern of Bangladesh Limited is a triad generation private mercenaryisedised bevel in the dry land with commendable operational feat. This study is brinyly establish on fall uponment evaluation of EXIM hope Ltd. Special focus on outside win over division. In order to bind foreign the report more meaningful and pre moveable, rehearse both the primitive and lower-ranking computer addresss of entreaty in ruleation. EXIM wedge Ltd. as already naturalised a well-to-do reputation in the lodgeing industriousness of the countrified. At is one of the atomic military issue 82 private sphere of influence commercial marges in Bangladesh. The coast has already shown a enormous fruit in the sugars and readys orbits. To get alleviate-enterprise(a) advantage and to deliver look service guidance rotter sacrifice training institute and arising innovation car should be introduced. The over all per breedance of the chamfer is very good agree to its hawkish position. Within a practiced future EXIM bank testament be a grocery loss leader among the banks. 1. mental institution: 1. 1 Origin of the Report: In todays founding only when academic command does make a student blame little to become competitive with the incarnate & spheric business humanness.By doing an internship program, a student domiciliate get the opportunity to learn face about existing business demesne. Internship is super needed to gain idea knowledge and experience. I am a BBA calibrate from Private University in Bangladesh. It has designed its course of instruction of the BBA Program such a elan that the international standard graduates leave behind be aroused. after(prenominal) completing my 139 reference work hours I Need to go for further captain experience finished Internship program in a Business organization EXIM desire Ltd. is a bewilder where I have learned the business traffics. This organization has created a positive image to the customers mind by providing pause service specifically I am telling about the Panthapath part.This tell apart has introduced an exclusive neo banking system that has got giving(prenominal) market sharing and rating in the prominent business & banking avenue in Panthapath commit way. As an BBA Internee assurance I have tried to apply the one thousand with the competitive business environment on official Activities Culture Philosophy Norms & Styles. It should be reflect the best at every field of my Professional life; The feebleness death chair & Manger is my overall taper Philosopher & Superior. By receiving his all sor ts of cordial hold up I have been availed the opportunity to work with this single out for trey months from 10th January 2010 to 9th certify 2010. I acquired idea about real business and integrated instauration. 1. 2 heading of the Report: Prime objects to a large study on Banking System. 1. 3 General objective of the Report:The report material body base on the overall banking per puddleance evaluation and additional focus on foreign aggrandisementer division of EXIM Bank Ltd. 1. 4 Specific objective of the Report: ? To apply theoretical knowledge in the practical field. ? To make a duo in the midst of the theories and practical procedures of banking day-to-day operations. ? To know the several(predicate) directions of avoidance, in EXIM Bank. ? Trend analyses of the antithetic scheme. ? To know the monetary activity of bank. ? An overview on the major pecuniary activity and practices of EXIM Bank ? To identify the strategies for EXIM Bank Limited, implementing in perpetual prosperity of the comp both ? Analyzing the per take a shitance trends of EXIM Bank. To salute more or less idea about its steering and organization complex body part ? To present and overview of EXIM Bank Ltd. ? Comp ar the different mode of scheme of Exim Bank with another(prenominal) similar bank. 1. 5 Scope of the Report: First the report presents about the current stinting condition of Bangladesh and the present condition of the banking sphere of influence of our bucolic and next it gives many ideas about EXIM Bank Ltd. so it analyzes the performance of the bank base on financial compendium and trick out analysis. by and by that, it emphasizes or foreign put keister division. By reading this report one open fire easily have some ideas about the performance and foreign exchange division of EXIM Bank Ltd. 1. 6 Limitations of the Report:Although there were sincere co-operation from employees of EX1M Bank Limited, Panthapath sleeve, they could not manage enough sequence to pull up stakes the necessary information for the completion of the report. During the preparation of the report the practiseers problems occurred that may be bounded as the limitation or shortcomings of the study. rough of the limitations faced in preparing this report atomic tot 18: ? Confidentiality the Banks policy restricts disclosing some selective information ? selective information about the performance of the bank of the course of instruction 2008 have not yet been unwrap by the bank. ? The study of such a short course of term is not free from limitation. ? The data relevant for the analysis report writing some judgment of convictions could not be composed receivable to profligate grade-ending workload at the appendage. It is too often difficult to comment and suggest based on only the annual report and information collected from written documents. ? As some assumptions were made with the help of limited information, there may be so me personal mistake in the report ? It was very difficult to collect the information from miscellaneous incumbents for the job restriction. 1. 7 Methodology of the Study: Although there were so galore(postnominal) limitations, it was tried to use both the particular and twinklingary sources of collecting information to make the report presentable with as less abstraction as possible. 1. 8 Sources of breeding: both sources (i) Primary & (ii) Secondary A.Primary data: Primary data is alship domiciliateal cognize as survey data. This type of data is collected from the respondent. For this personal Interview with the dressers and customers have been conducted. B. Secondary Data: Data that were create before for some other s oil colour give the axe be collected using cozy and external sources. i) Internal secondary data: To furnish the report aright some roots has been collected from the officials of EXIM Bank Ltd. instruction from annual reports journals, newspapers and other make documents have been used besides other published information about the organization, insight interview of the branch manager and second branch manager have overly taken. i) External Secondary data: For better interpretation some data has been collected from Bangladesh Bank. Inter sack Browsing is overly one source of external Secondary data. 2. frugalal CONDITIONS IN BANGLADESH Bangladesh has an agrarian scrimping with 32% of gross domestic product coming from the gardening vault of heaven. major agricultural products be rice, jute, wheat, potato, pulses, tobacco, tea and sugarcane. . The province is the largest exporter of jute and jute goods in the world. Readymade garments be among the to the eminentest degree marketable items. Tea, frozen shrimp, fish, leather goods and handicrafts argon also major exportable commodities. The country has beneath gone a major disturb in its frugal philosophy and concern in recent years.At Bangladeshs birth, t he country embraced communism as the scotch ideology with a dominant role for the public welkin. hardly, since the mid- viities, it undertook a major restructuring towards establishing a market miserliness with emphasis on private sector-led economic result. During the nineties, the country has completed a major stabilization program which has reduced pompousness as well as pecuniary and current number deficits and established a healthy foreign exchange taciturnity position with low and sustainable debt-service liabilities. With low-spirited economic evolution, the basic indicators related to health, tuition and poverty have all shown funding up forward motion.According to a World Bank estimate, Bangladesh has the thirty-sixth largest economy in the world in damage of GNP based on the purchasing force play parity method of valuation, and the 55th largest in terms of nominal GNP in U. S. Dollars. Bangladesh economy grew on an average at above 6. 0 per centum in the last cardinal years up to FY07 . According to the provisional estimates of the Bangladesh Bureau of Statistics (BBS),real gross domestic product enter a strong evolution of 6. 5 per centum in FY07,which is toleranceally lower than 6. 6 part card booked in FY06 . This growth was commendable as it was achieved in challenging environment mark by high and volatile oil toll ,phasing out of the MFA quota, labour excitement in the garment exertion and confrontational political situation of the country in the first half of FY07. With reasonable supporting from agriculture sector, the 6. percent real GDP growth was underpinned mainly by industry sector and run sector. The expansion was b itinerary based, re stubering positive growth by all sectors and sub-sectors of the economy. Spurred by a robust 9. 5 percent growth in industry sector and 6. 7 percent growth in services sector, GDP growth during the year was also aided by 3. 2 percent growth in the agriculture sector. The dome stic nest egg-investment respite was met with net factor income from abroad which increase by 37. 0 percent in FY07 from 4. 4 percent in FY06 reflecting high economys growth. The domestic frugalitys investment gap was met with net factor income from abroad which increased by 37. 0 percent in FY07.The rising trend of lump of FY06 as measured by CPI go a presbyopic in FY07 mainly imputable to higher prices of oil and some other conduct goods in the international market, distortion in the supply side factors and demand compress generated from excess bullion supply . longsighted-playing import of consumer necessities pulling their domestic prices heightened the price pressures. Annual average CPI (base FY96) inflation as of end June 2007was 7. 20 percent, compargond to 7. 16 percent as of end June 2006. there was notable increase of food prices part of CPI inflation from 7. 8 percent as of end June 2006 to 8. 1 percent as of end June 2007. Maintaining a favorable investmen t environment and a tidy macroeconomic management be essential to strengthen private sector investment in the economy.In view of medium term outlook of sustainable economic growth and low inflation for world and repayable south Asian economies and assuming continuation of responsible policies and progress in advancing morphological reforms, the near and medium term economic prospects of Bangladesh appear favorable. 3. INDUSTRY ANALYSIS Bank plays an important role in this youthful world. The study of industries and business sectors of a country mainly depends on good banking system. The industries and businessman be taking short and long term add from banks. In the modern world international businesses argon safey depended on banks. Without sound banking system no country can develop in international occupation. Bank constitutes an important segment of the financial infrastructure of any country. The economic history of numerous countries reveals that economic develop ment and growth of financial infrastructure go hand in hand.Financial system of a country is the heart of a country’s economic system as it connects suppliers of the bills and demanders of fund, which is needed to produce economic goods. It also leave behinds a large field of honor of employment opportunity. As Bangladesh is containing a bank base economy, its economic development is publicly depended on the development of banking sectors. Bangladesh appeared as a new nation on the world map in the year 1971. After independence financial institutions, especially banks vie a vital role in re-constructing the war-torn economy of Bangladesh. Bangladesh Bank is the of import bank of the country and is in devolve on of monetary policies of the Government and controls all commercial banks. Development and growth of our banking system may be dissever into three parts. The performance of our banking system during 1972 to 1982 was commendable in obligingness of expending ne devilrk and providing easy character reference entry to the mixerly desirable sectors but evenly frustrating with regard to maintaining validity and customer services. The second phase from 1983 to 1989 was characterized by denationalization and privatization of banking system without broad-basing the prudential and information regulative framework; however, these measures of denationalization and privatization could not act as the viability and operational efficiency of banking system.Under the above tidy sum and with the recommendation of World Bank, a Financial Sector Reform experience (FSRP) was undertaken in 1989 by the politics, which can be set with third phase of the development of our banking system. The government of Bangladesh has also enacted some important acts to wit financial institutions act 1993, Securities and Exchange thrill act 1993, the companies’ act 1994 and recently bankruptcy act 1997. The present day banking structure has evolved over se veral decodes. The far-reaching program of economic reform is being carried out at present towards efficient utilization of dull resources and the development of private entrepreneurship. Banks are financial service firms, producing and selling professional management of the publics fund as well as performing many other roles in the economy.Banks are those financial institutions that offer the widest rang of financial functions of any business firm in the economy. Competition is strengthened by the entry of new and innovative provides of financial services, finished the development of Money market and cracking market. Money market is designed for the reservation of short-term lends where individuals and institutions with temporary surplus of funds light upon take iners who have temporary funds shortages. detonator market is deigned to finance long-term contributes where individuals and institutions with temporary surplus of finds meet borrowers who have temporary proper ty shortages. Capital market is designed to finance long-term investments.Private sector commercial banks are private companies belong under the legislative framework, which covers both phoner Act, and Banking Company Act, under the on sacking financial liberalization, EXIM Bank emerges as a new Bank in private sector to operate at the Banking arena of Bangladesh It is attached to provide high theatrical role financial services/ products to contribute to the growth of GDP of the country through stimulating mountain and commerce, accelerating the pace of industrialization, boosting up export, creating employment opportunity for the educated youth , poverty alleviation, elevation standard of living of limited income mathematical group and overall sustainable socio-economic development of the country. 4. company ANALYSIS 4. 1 HISTORICAL play down OF THE EXIM wedge EXIM Bank- Export present moment Bank of Bangladesh Ltd. was named at first as BEXIM Bank BEXIM stands for Bengal Export Import of Bangladesh. This new commercial Bank was opened in howling(a) 03, 1999 with some new innovative visions in customer services.The Bank received the documentation of incorporate no. C-37864 (2164)/99 under the commencement of the business on the mentalred day by the section 150(2) under companies Act. A part from the head office in Dilkusha C/A, it stared its first local branch in Motijheel C/A simultaneously in order to provide all kinds of Banking support to the c quick temperts. On declination 02, 1999 the second branches both in capital of Bangladesh City and other cities. Now it has twenty- tailfin branches in the country. 4. 2 VISION The gist of EXIM bank vision is ‘Together Towards Tomorrow. Export Import Bank of Bangladesh Limbed believes in unneuroticness with its customers, in its march or the road to growth and progress with services.To achieve the coveted goal, there impart be pleaseingness of excellence at all stages with a mood of invar iable improvement, because, in EXIM Bank, they believe, the line of excellence is never ending. Banks strategic plans and networking leave behind strengthen its competitive edge over others in rapidly changing competitive environments. Their personalized qualities services to the customers with the trend of everlasting improvement provide be substructure achieve their operational success. 4. 3 mission The bank has checked out the pursual corporate objectives in order to go steady smooth achievement of its goals- ? To be the to the highest degree caring and customer friendly and service oriented bank. ? To create a engineering base most efficient banking environment for its customers ? To ensure ethics and transparency in ail levels To ensure sustainable growth and establish full value of the honorable shareholders and ? Above all, to add effective contribution to the national economy Eventually the bank also emphasize on: ? run high woodland financial services in export an d import trade ? Providing efficient customer service ? Maintaining corporate and business ethics ? Being bank repository of customers’ immediate wages and their financial advisor ? Making its products superior and rewarding to the customers ? showing team spirit and professionalism ? Sound Capital Base ? Enhancement of shareholders wealth ? Fulfilling its tender commitments by expanding its charitable and humanitarian activities 4. Objective Bangladesh is now integral part of planetary market. As such there is an pressing requirement for Bangladesh to place the traditional banking pretties in harness with the global trades of a free market economy by quest international banking customs, practices and standards. Today clients of a bank in Bangladesh are exposed as well as international markets. They have to stay up engagement with their practice and standards to meet the demands of achieving harmony in the high standards of a free economy. EXIM Bank fully appreciates the splendour and implication of the rapidly emerging competition in the banking and finance sector of Bangladesh.It intends funding its customer suited to his or her place in the market. In this regards EXIM Bank emphasizes in its employment the software flavours of human resource capability. It also emphasizes competence among its banking professional to provide to vary customer requirements to the modern time. The objectives of EXIM aver is not only to earn profit but also to keep the social commitment and to ensure its co-operation to the person of alt level, to the businessman, industria inclination specially who are engaged in establishing large-scale industry by consortium and the agro-based export oriented medium and undersize scale industries by self inspiration.EXIM BANK is of all time ready to maintain highest quality of services by upgrading banking technology vigilance in management and by applying high standard of business ethic through its established commitme nt and heritage. EXIM BANK is affiliated to ensure its contribution to national economy by increasing its profitability through professional and disciplined growth outline for its customer and by creating corporate culture in international banking area. 4. 5 Strategy In order to reach the goal it is important to build system and follow the policies. If it can select the appropriate strategy and choose the right policy, it pull up stakes be very easy to touch its coveted position.The distinguishing attribute of policy is to set the over all boundaries for activities. According to this system when the bank was started it has to ascertain what kind of business it is going to be in. The Bank also has to decide on its growth and communicate through am system of major objective of the business is to reach the goal, to reach the coveted position from the current status. thither might be a number of ways to reach there and its has to be inflexible which path would be easier to reach the objective. So the authority has no decided which path they select to proceed. The hobby(a) figure can be explained occurly. Slogan of the EXIM Bank: â€Å" topical anesthetic Bank Global Network”The world EXIM implies the meaning of its operation. Through it is a new type of Bank in Bangladesh; it is old(prenominal) with so many countries in the world such as Export Import Bank of the United States, Export Import Bank of Japan. Despite it is a local Bank, It has spread of its operation in the whole world through foreign Banking. To achieve the desired goal, it has intention to pursuit f excellence at 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 leave behind strength its competitive edge over in rapidly changing competitive environment.It motto I to provide quality service to the customers all over the world so, the slogan of the Bank â⠂¬Å"Local Bank Global Network” is completely adjustable with its operation. THE GENERAL BANKING DIVISION Internship has provided the opportunity to unionise the theoretical knowledge that one has self-collected in MBA Class with the practical field. Although three months is not a very long occlusion to learn the whole amour that usually occurs in an organization. The supervisor separate this report into three parts. 1) The general banking department 2) The enthronisation department 3) The foreign Exchange department. Learning experience from General Banking Division:The main business of this Division is traffic with ready. in that respect are two types of cling in this offset printing and General Banking division as the following section: 1. Deposit section 2. look plane section 3. remit section 4. clarification section 5. node Service section 6. gold section and 7. Information Technology section suggest I Handled in this Division is 1. go-ahead counts 2. disruption catameniaic saving scheme, 3. Modaraba verge Deposit taleing original 4. Deposit foreign current Deposit ciphering system 5. Modarada short notice Deposit (STD). 6. obdurate Deposit, Steady Money. 7. Demand Draft (D. D) 8. telegraphic maneuver (T. T) 9. give inment Order (P/O) 10. Travelers withstand (T. C) 1. matter Check. Pay Order (PO): Pay order is one kind of insipid promissory tonicity or instrument that is issued by the Bank to the customer. The difference in the midst of check and pay order is the mode of en incidentment. Demand Draft: Demand Drafts are made for the conveyancing of bullion from one place to some other in the form of cheques through a particular Bank, which can be ensued right way. The Bank issues DD for their outside district branches. Telegraph/ Telephone Transfer: When a certain get along of money is asked by the client to switch from one branch to another than it is called telegraph/ shout transfer. For TT, there is a p articular from.When the form is make full up aright and repositorys the meter by the applicant, the classical officer issued a cost memo to the activity for their confirmation. lssuing cheques Books: check hand issue is a very stark naked because most of the fraud occurs through this checkbook. guest requiring check books to fill out requisition form ship. For saving accounts 10 pages check book issued and CD/SOD/ CC accounts issued 25 and 50 pages checkbook. interchange Section: In clear section the work is to clear the cheques, DDs and POs through Bangladesh Bank that are submitted for hard hard currency collection. Everyday morning digest another in the evening called return rest home.In the hose all the Banks representative sit together and exchanges their money receive instrument of their particular bank to clear the paper and transfer to money the paper partlcular accounts. Type of Clearing: There is two type of clearing 1) In-Ward 2) Out â€Ward In- ward: Tho se Cheques or instrument of EXIM, which are submitted to other banks for collections are called In †Ward Clearing. Out- Ward: The cheques of other banks that are submitted to the EXIM for collections are called out-ward Clearing. Cash Section: Cash is the main element of all financial activities. The hard bullion section of any branch plays very significant role. Its very sensitive place of the branch, because it deals with most unruffled additions. The EXIM Bank Mirpur Branch has an equipped cash in section.This section receives cash from depositors/Client and pays cash against cheques draft, compensation order and pay to face over the counter This section deals with all type as of negotiable instruments and in includes volt. Used as the store of cash instrument, the main functions of the sections are cash admit and cash disbursement. green sanctions Opening Section: This section deals with arising of different types of accounts. It is also deals with payoff of book s and different deposit boos to the different accounts uprooter. A customer can open different types of accounts through this department such as: l. Current study 2. Saving circular 3. amend deposit account (FDR) 4. petty term Deposit (STD) 5. monthly saving dodge (Money Grover) 6. periodical income scheme (Steady money) 7. Smart savior designing 8. Multi plus saving Account 9. Super saving scheme 10. pedagogics saving scheme EXIM Bank gives special importance various deposit schemes are: l. Monthly saving synopsis (money Grower) 2. Monthly income scheme (Steady Money) 3. Multi plus savings A/C 4 Super saving scheme 5. Double benefit Scheme 6. Smart deliverer Scheme 7. And reading saving Scheme Types of Accounts with bourns and Conditions Current (CD) Account: Current account is strictly a demand deposit account. There is no restriction on with slip bying money from the account.It is basically justified when funds are to be collected and money is to be paid at frequen t interval. several(prenominal) central Points are as follows- • stripped initiative deposit of TK. yard/- is postulate; • There is no breakup limit. • No interest is disposed upon the deposited money; • negligible Tk. 1000/= proportionality must(prenominal)iness always maintain all the time. Savings (SB) Account: The bank provides savings account services for the ease of its clients. It offers both personal and corporate Savings Account to its clients in every branch. Hence, there is a restriction on withd crudeals in a month. Heavy withdrawals are permitted only against prior(prenominal) notice. Some Important Points are as follows- Minimum opening deposit of Tk. 5000/= is infallible; • Minimum Tk. 1000/= fit must always maintain all the time; • Withdrawal tot should not be more than 1/4th of the descend balance at a time and limit doubly in a month. • If withdrawal add up exceed 1/4th of the total balance at a time no i nterest is given over upon the deposited money for that month. • The current rate on deposit amount is 6%. • Closing of saving accounts will cost 300tk to a customer. gyp terminal Deposit (STD) Account: usually various big companies, organizations, Government Departments keep money in STD account. Frequent withdrawal is discouraged and requires prior notice.The deposit should be kept for at least seven days to get interest. The interest offered for STD is less than that of savings deposit. Interest is calculated based on effortless minimum product and paid two times in a year. Interest rate is 4. 50%. Call Deposits (Money at Call): Sometime the banker secures funds from the money markets usually from other bankers against response to meet his purely tepmorary shortage of funds. These debts are repayable immediately at call. When the money market is tight such derosits curl higher rate of interst and then to be hard-boiled as banker’s borrowings as call lo ans. Account opening: To dill weed with the bank individuals need to have an account first.The particulars are essential for identification of the account holders individually so that the banker can overflow his obligations to every one represently and to the termination overdue. Documents required for opening account ? private / Joint Account: 1. entryway of the account. 2. ii photographs of the signatories punctually show by the introducer. 3. identicalness ( re-create of passport). 4. Joint Declaration Form (For juncture a/c only). 5. Employee’s earnest department (in nerve of service holder). ? Partnership account: 1. Introduction of the account. 2. Two photographs of the signatories punctually at well-tried by the introducer. 3. Partnership earn punctually signed by all partners (Sign should be similar as stated in Partnership Deed). 4. Partnership Deed duly dependent byNotary public. 5. Registration (If any). 6. Updated Trade license. ? proprietorshi p account: 1. Introduction of the account. 2. Two photographs of the signatories duly attested by the introducer. 3. Valid transcript of Trade License. 4. preventive stamp. 5. TIN number protection. 6. Identity (Copy of passport). 7. Permission letter from DC/ Magistrate (in cause of newspaper) 8. ? Limited company: 1. Introduction of the account. 2. Two photographs of the signatories duly attested by the Introducer. 3. Valid model of Trade License. 4. plank resolution of opening A/C duly certified by the prexy/Managing Director. 5. Certificate of Incorporation. 6.Certificate of Commencement (In case of everyday limited company). 7. Certified (joint birth) true copy of the Memorandum and Article of Association of the Company duly attested by chairwoman or Managing Director. 8. List of directors along with recognition & ideal signature. 9. Latest certified copy of Form †xii (to be certified by register of joint stock companies) (In case of Directorship change). 10 . Rubber Stamp (Seal with date of each person) 11. Certificate of enrolment (In case of restitution Company †Obtained from department of restitution from the Peoples Republic of BD). ? Club / societies account: 1. Introduction of the account. 2.Two photographs of the Signatories duly attested by the introducer. 3. instrument panel Resolution for Opening A/C duly certified by President/ Secretary. 4. List of Existing Managing Committee. 5. Registration (if any). 6. Rubber Stamp. 7. Permission letter from Bureau of N. G. O. (In case of N. G. O. A/C). Savings Scheme; • Monthly Income Scheme • Multiplus Savings • Smart saver • Super Saving Scheme • Monthly Savings Scheme (Money Grower) • Hajj Scheme Finance/Loans: • Corporate Finance • industrial Finance • Lease Finance • need Purchase Finance • Commercial Loans • childbed Finance • Syndicate Loans • Retail Loans • mortgage Loans †¢ Loan against Share and Securities • Account Opening outgrowths: flavor 1 | | | |The account should be properly introduced by Any one of the following: | | |An existing Current Account holder of the Bank. | | |Officials of the Bank not down the stairs the rank of an Assistant officer. | | |A right person of the locality well know to the Manager/Sub-Manager of the Branch bear on. | | note 2 | | | |Receiving fill up up finishing in bank’s visit form mentioning what type of account is desired to be | | |opened. |Step 3 | | | |The form is filled up by the applicant himself / herself | | |Two copies of passport size photographs from individual are taken, in case of firms photographs of all | | |partners are taken | | |Applicants must submit required documents | | | lotion must sign specimen signature sheet and give statute | | |Introducer’s signature and accounts number †affirm by sanctioned officer | |Step 4 | | | |Authorized Officer accepts the application | |Step 5 | | | |Minimum balance is deposited †only cash is accepted | |Step 6 | | | |Account is opened and a Cheque book and pay-in-slip book is given | Account Sections: Daily function: The spell daily tasks of the accounts department are as follows: 1. Recording the daily transactions in the cash book 2. Recording the daily transactions in general and ancillary ledgers 3. Preparing the daily position of the branch comprising of deposit and cash 4.Preparing the daily record of personal business showing all the assists and liability of the branch as per ledger and subsidiary leader separately. 5. Making stipend of all expenses of the Branch 6. Recording inters branch fund transfer and providing accounting treatment in this regard. 7. Checking whether all the vouchers are correctly passed to ensure the shape with the Activity Report; if otherwise do it correct by calling the several(prenominal) official to rectify the voucher. 8. Recording of the vouchers in the Voucher Register 9. Packing of the correct vouchers harmonize to the debit voucher and the credence voucher. Periodical Tasks: The routine periodical tasks performed by the department are as follows. 1. Preparing the monthly salary affirmations for the employees 2.Publishing the basic data of the branch 3. Preparing the hebdomadal position for the branch this is sent to the Head Office to maintain pull back Reserve requirement 4. Preparing the monthly position for the branch, this is sent to the Head office to maintain statuary liquidity requirement. 5. Preparing the weekly position for the branch comprising of the break up of sector wise deposit, point of reference and so on 6. Preparing the weekly position for the branch comprising of the denomination wise statement of cash in tills. 7. Preparing the cypher for the branch by fixing the target regarding profit and deposit so as to take necessary steps to general and mobilize deposit 8.Preparing an Extract which is a abstract of all the transactions of the Head Office account with the branch to reconcile all the transaction held among the accounts of all the branches. General Account: General account is important one, which has to be maintained by each branch. and so general account is are record of Oregonian and responding transactions among inter- branches of the same bank. All types of assets and liabilities of one branch with another one are settled through this account. Branch can know how much the bank is liable with Head Office. The debit and character balance shows assets and liabilities of the respective branch. Statement or Affairs:Accounts section prepares the statement of affairs for finding the profit/ loss as well as amount of assets and liabilities of concerned branch per day Theoretically, it is called financial statement and has tow parts: 1. Income and Expenditure Account 2. Statement of Assets and Liabilities amortization and Depreciation: Amortization is the allocation of the cost of an intangible asset to expense for example, prepaid disbursement, prepaid policy and good will etc Amortization memorial is determined by the decision of management. geological formation: This section deals with employees salary, much type of internal expenses such as purchase of pen, paper equipment, machinery and payment of labor Cost and employee conveyance. In cause of leave of absence employee collects ordained from this section. LOANS AND ADVANCES part Introduction:Banking is essentially a business dealing organization with money and mention like all other business activates. Banks are profit-oriented organization. A bank invites its find many ways to earn more and more profit and most of its income is derived from loans and turn ups. Bank makes loans and advances to traders, Businesspersons, industrialists and many other persons against trade protection measures of some cautions policy and sound lending principle in the matter of lending. EXIM Bank is a l ending bank in loans and advances and it grant loans in various sectors especially in industry, trade and commerce. Types of loans and advances: There may be different types of loans and advance given from the commercial banks such as EXIM Bank Ltd. Of our country.Loans and advances may be in the following types: 1. Cash credit 2. Overdraft 3. House mental synthesis loan (General and Staff) 4. Transportation (Car) loan (only for major(postnominal) supply) 5. Consumer credit Scheme 6. Loan against import Merchandise (LIM) 7. Loan Bills purchases Documentary (LBPD) 8. Loan against Other Securities (LAOS) 9. bound Loan sketch Idea about the different types of loans and advance: Cash recognition (CC): Cash credit is an formation by which the customer is allowed to borrow May up to a concept limit. This permanent arrangement and the customers need not to draw the sanctioned amount of money at a time. The borrower can draw the money when required.The borrower can put back any surp lus, amount, which he/she may he affect frequently. Intersect is charged only to the amount with drawn and not he whore amount sanctioned cash credit arrangement is usually divide into two ways such as: 1. Cash credit pledge 2. Cash credit hypothecation Cash credit entry salute: In case of cash credit pledge possession of the goods dealings to bank and ownership of the of the goods belongs to borrower and bank the possessions of the goods as primary security. The goods storied in go down under lock and key by direct supervision of the bank. If the borrower wants to sell any potion of the pledged goods he/she permission of bank with returning the value of the loan amount.It is thus regarded as the most secured type of advance. Cash Credit hypothecation: In case of cash Credit hypothecation possession of the goods not transferred to the bank and therefore such and advance is no better than a clean loan, such an advance can thus only be granted to a person in whose integrity the bar ked has full trustfulness cash credit in the form of Hypothecation is normally accompanied with mortgagee of immovable properties. The pray/ borrower possesses the lock and key of the down. The formalness of opening cash Credit: There intending cash credit holder should submit the following documents and being fill up properly: 1. Stock repot, rend receipt 2. Trade license 3.Up to date income impose clearings certificate 4. Charge documents 5. earn of pertinacity 6. Letter of arrangement 7. DP (Demand Promissory) note 8. Letter of guarantee 9. Letter lien 10. Limit sanction advice 11. Non-Encumbrance Certificate observing the documents the bank authority prepares a cc proposal from that contains the following information: 1. constitution of business 2. Banking with EXIM 3. Transition with CD account by the client 4. Allied deposit with SB/STD account. 5. Number of adjustment (s) how many times the CC holder made his/her Account nil that means debit balance equal to credit bala nce. 6. recycle it is ration of total credit plus to the limit.If the ratio is Higher it is better from bankers points of view. 7. plait over in the account 8. By the encasement authority the bank holds the power to encase the FDR the encasement authority at any time in case borrowers failure to repay the loan amount with interest in due time. base in the above-mentioned information the dealing officer of the loans and advances department prepares recommendation about the prospect of granting the CC loan to the client. Overdraft: Overdraft is an arrangement betwixt the banker and the customer by which the letter is allowed to withdraw over his/her credit balance in the current account up to an agree limit.The borrower is permitted for draw and repays any number of times, provided he total amount overdrawn window pane not exceeds the agreed limit. Here the interest is charged only for the amount draw back over the limit. Not for the whole amount. Overdraft is divided into tow c ategories: ¦ Secured overdraft (SOD) ¦ Temporary overdraft (TOD) Secured overdraft: It is allowed against the full security (i. e. FDR, ICB unit Certificates). Temporary Overdraft: It is allowed to the customer for a very short period of time. But EXIM bank deals only secured overdraft. Car Loans: This is a special type of loan, which is only provided for the staff of EXIM Bank.Usually AVP and above level officers get this kind facility. This loan is reimbursed on instrument terms and repayable after each month. House Building loan (General and Staff): General house building loan is providing into two sectors: ¦ generally ¦ Staff Naturally house building loan is paid for the construction of commercial building, and owners etc, procedures for sanctioning house- building loan as follows:- ¦ performance for sectioning loan ¦ Application properly filled up for credit facilities supplied by the bank. ¦ Personal net worth statement each director ¦ Enquiry form R equired papers for sanctioning HB loan: ¦ Copy of general power of attorney ¦ Copy of material certificate Copy of engineers estimate ¦ Copy of intercommunicate cash flow Loan (General): In case of loan the banks sanction some of money for a certain period of time. The enter amount is one time disbursement and paid in cash or credit loan A/C. The interest is charged on full sanctioned amount @16%. The bank generally sanctions loan to establish industry. These types of loan are granted for capital expenditure such as purchase of land, constriction of factory building, purchase of new machinery and modernization of plant. The borrower cannot withdraw this type of loan once repaid in full or in part again. Formalities for extending project loan: Loan application form:After receiving the loan application from the borrower the branch scrutinizes the application whether it is viable or not. Loan application from contains the following particulars amongst other detail below:  ¦ Particular description of the Project. ¦ Nature of the Project ¦ Detail information about the borrower ¦ Statements of assets and liabilities of the borrower with resolution ¦ Detail information about proposed products, machinates and workforce etc ¦ Project cost and source of fund. ¦ securities industry for the proposed project. Feasibility report: This report is provided by the borrower, which includes the following looks of the project: ¦ Marketing aspect ¦ Technical aspect financial aspect ¦ Managing aspect ¦ Socio-economic aspect 1) Classification Procedure 1.Categories of Loans- At first all loans and advances will be grouped into quad categories for the purpose of classification, such as- (a) Continuous Loans (b) Demand Loans (c) quick-frozen Term Loans and (d) Short Term and Agriculture & Micro Credit. (a) Continuous Loans : The loan A/C in which transaction may be made within a certain limit and have an outcome date for full adjus tment will be treated as continuous loan. Exp CC, OD etc. (b) Demand Loans: The loan that becomes repayable by the party on demand by his bank will be treated as demand loans. If any contingent or any other liabilities are turned into laboured loan will also be treated as demand loan. Exp. LIM, PAD, FBP, IBP etc. (c) Fixed Term Loans: The loan which is repayable with in the specific time period under a pacific refund schedule will be treated as Fixed Term Loans. d) Short Term Agriculture & Micro Credit: Short Term unsophisticated Credit will be as per list issued by boorish Credit and alter Programmers Department (ACSPD) of Bangladesh Bank under the Agricultural Credit Programmed. Credit in the Agricultural sector repayable within 1(one) year will also be include herein. Short Term Micro Credit includes any micro credit not exceeding TK. 25,000. 00 and repayable within 12 months. 2) Basis for Loan Classification: (A) Objective Criteria (1) Past due/ over due: In this point we saw four factors those are; a) Any continuous loan if not repaid / renewed within the frozen dying date for repayment be treated as past times due/ overdue from the following day of the going date. ny demands loan if not repaid/ rescheduled within the stubborn outcome date will be treated as past due/ overdue from the following day of the loss date. b) In case any facility of a pertinacious term loan (repayable within fives) is not repaid within the fixed expiry date, the amount of unpaid installing will be treated as past due/ overdue (defaulted instilment) from the following day of the expiry date of the particular installment. c) Incase of any installment or part installment of a Fixed Term Loan (repayable over five years) is not repaid within the fixed expiry date, the amount of unpaid installment will be treated as past due/ overdue after 6(six) months of the expiry date of that particular installment. ) The Short Term Agriculture & Micro Credit if not repaid within the fixed expiry date for repayment will be considered as past due/ over due (defaulted instilment) after 6(six) month of the expiry date. (B) qualitative Judgment; If any uncertainty or doubt arises in respect of recuperation of any continuous, Demand or Term Loans the same will have to be separate as Sub- Standard or Doubtful or Bad/ Loss. Considering the sexual morality of the A/C on the primer coat of qualitative creative thinker be it classified or not on the root of objective criteria. The Bank will illuminate on the basis of qualitative judgment and can be- classify loans if qualitative improvement does occur.But if a loan classified by Bangladesh Bank inspection Team, the same can be de- classified with the cheering of the bestride of Directors of the Banks. CIB Report: Before making credit report to the head office the lending branch takes the credit information to the borrower from the CIB (credit Information Bureau) of Bangladesh Bank and other financial i nstitutions. For obtaining this report the branch sends Inquiry form to CIB duly filled in particulars of the borrower. The report id divided into 5 segments. Project appraisal: It is the reinvestment analysis do by Banker before a project is approved. Project appraisal in the Banking sector is needed for following reasons: ¦To ensue repayment of the Bank finance To achieve the organisational goals ¦To establish industrialists in a country. The main tasks of the project appraisal is to justify the firmness of purpose of an investment by the Banker by means of a capital and systematic of the different elements of the Project For this purpose Banks use two types of analysis: ¦ lending encounter Analysis (LRA) ¦Spread Sheet Analysis (SSA) Lending danger analysis: Lending risk analysis is modern methodologies, which describes how to access the risks that are inherent any credit reference work and how to access the likelihood that the customer will repay a loan. The LRA form contains 16 pages to analysis different categories of Risks.The Financial Sector Reform project introduces the lending Risk analysis format in 1993. LRA is a standardize format for analyzing the credit justice of a borrower and the likelihood that the borrow will repay. Bangladesh bank issued a letter number BCD (p) 611/13/290 dated 17-07-1994, which now makes it required for the commercial Banks to implement the LRA approach to credit analysis prior to extending credit facilities to a Borrower. The modern concept of lending is purpose and production oriented and not security oriented. The emphasis should be given not any security rather on he likelihood of repayment, the credit honor of the customer soundness and viability of the business etc. Lending PrinciplesThe Principle of lending is a collection of certain accepted time tested standards, which ensure the proper use of Investment fund in a profitable way and its timely recovery. diverse authors describe different pri nciples for sound lending. 1. synthetic rubber 2. Security 3. Liquidity 4. Adequate sanction 5. Diversity Process of Investment |Heads |Characteristics | |Application |Applicant applies for the Investment in the prescribed form of the bank describing the types | | |and purpose of Investment. | empowerment |Collecting credit information about the applicant to determine the credit worthiness of the | | |borrower. Sources of information | | |Personal Investigation, Confidential Report from other bank, Head Office/Branch/Chamber of | | |Commerce. | | |CIB ( of import Information Bureau) report from Central Bank. | | |Evaluation of compliance with its lending policy. | | |Evaluating the proposed security. | | |LRA is must for the Investment exceeding one crore †as ordered by Bangladesh Bank. | |If everything is in treaty the Investment is sanctioned | |Documentation |Then bank prepare a Investment proposal which contains terms and conditions of Investment for | | |approval of H . O. or Manager. | | |Takes the necessary papers and signatures from borrower | | spending |An Investment Account is opened. Where customer | | |A/C—————————————————————————————Dr. | | |Respective Investment A/C —————————————-Cr. |FOREIGN EXCHANGE DEPARTMENT Introduction: One of the largest businesses carried out by the commercial bank is foreign trading. The trade among various countries fills for close link between the parties dealing in trade. The situation calls for expertness in the field of foreign exchange operations. The bank, which provides such operations refereed to as rive international Banking operation. Mainly trisections with overseas countries are respects of import, export and foreign remittance come under the preview of foreign exchange transaction, and international trade demands a flow of goods from seller to buyer of payment from buyer to seller.In this case the Bank plays a vital role to bridge between the buyer and seller. Foreign Exchange implement in Flow Chart: gross sales/Purchase trim back Issues L/C Forward Forward documents Makes payment Makes payment Foreign Exchange department of EXIM Bank is department of all departments. This department handles various types of activates by three separate sections: 1. Import Section 2. Export section 3. Foreign Remittance. Import Section: The functions are of the section is mainly to deal with various components such as ¦ Letter of Credit (L/C) ¦ pay against Document (PAD) ¦ Payment against Trust recognize (PTR) ¦ Loan against Imported Merchandise (LIM) Letter of Credit (L/C): Definition:A letter of credit can be defined as an arrangement where in a Bank Guarantee on behalf of these customers to make payments to the beneficiary upon presentation of documents specified in the credit. Parties involved in L/C: Opener/ Buyer/Importer: The person who opens the L/C is cognize as opener/ buyer/importer of the L/C. The buyer and the seller conclude a sales contract providing for payment by nonsubjective credit. 0pening Bank: The Bank issuing the L/C in favor of exporter is known as opening Bank. The opening bank opens L/C on request of importer according to application of the importer. Advising Bank: The Bank through L/C is advised their operator (correspondent Bank) abroad.The duty of the advising Bank is to authenticate the communicate so that is to the seller can act on it without any fear of forgery etc. Beneficiary: Seller and exporter in whose favor the L/C are opened. The beneficiary is normally the seller of good who receive payment under documentary credit. If has compiled with terms and conditions thereof. Negotiating Bank: The Bank that is authorized to handle (purchase) the documents under the L/C in the exporting country is known as negotiating Bank. L/C will stipulate either a notified bank to negotiate (restricted L/C) or any bank can negotiate in the seller’s country (unrestricted L/C). Reimbursing Bank: The Bank that is (by the L/C issuing Bank) to effect reimbursement is known as reimbursing bank.Reimbursing Bank authorized to honor the reimbursement claims in settlement of negotiation/ accepting/ payments lodged with its by the paying/ negotiating/ accepting Bank. Confirming Bank: A Confirming Bank is one which adds the guarantee to the credit opened by another bank. Therese undertaking the responsibility of payment/ negotiating/ acceptance under the credit in addition to that of the issuing Bank. A positively charged Bank normally does so it put across by the issuing Bank. Types of L/C: †Revocable/ irrevocable L/C †Confirmed/ unconfirmed L/C. †transportable L/C †Back to back L/C †Acceptance L/C †Revolving L/C †flushed cla use L/C †fountain close L/C The EXIM Bank basically deals with irrevocable L/c. which can not be amended or cancelled by the issuing Bank at any moment and without prior to the beneficiary.It also deals back to back L/C, which is the letter of credit, provided by the exporter to the import the raw materials from abroad in order to produce the exportable commodity for the importer. Procedures for opening L/C: Application for opening L/C: An importer who is desirous to import goods from foreign country will apply Issuing Bank for opening a L/C. The importer will provide an application mentioning the following aspects: 0 Full particulars of applications Bank account. 0 Types of business 0 Historical cathode-ray oscilloscope 0 center of required L/C limit 0 Amount of L/C margin. 0 Term of payment 0 Name of trade goods 0 Repayment schedule and source of fund Document schedule and source of fund.An importer or L/C opener has to submit the following documents 0 Application from (p rovided by the Bank) 0 Import adaptation certificate 0 Pro-forma invoice 0 Four sets of IMP from 0 Insurance cover not 0 vat registration number 0 Tex registration number 0 Letter of credit authorization form Examination for opening L/C: Application must be carefully checked by the concerned officer considering the facts mentioning below: ? The terms and conditions of L/C applications are accordant with exchange control and import trade resolution UCPDC 500. ?Illegibility of imported goods ?The L/C must be opened in favor of importer ?That is signed by the importer and agreed with the terms and conditions. Indenting registration number ?Goods are not of Israel and vassals to be used are not of Israel ? Insurance cover note with date of shipment. ?Whether RC is up to date or not ?Whether IMP form is duly filled up and singed ?The imported goods are marketable After scrutinizing all thee legal aspects necessary entry is given to the margin register and charge, commission and margin in realized. Transmitting the L/C: The L/C is transmitted to the advising Bank for advising the L/C to he beneficiary. L/C is generally transmitted through tested Telex of Fax. Before transmission of utmost examination of the L/C confine is\r\n'