Customer Satisfaction in First Security Islami Bank

1
Internship Report On:
Customer Satisfaction of First Security Islami bank
(This Internship Report Is Submitted For the Partial Fulfillment Of The e!ree of "aster
of Business of #dministration $ith # "a%or In Finance & Bankin!'
Prepared For
Manjurul Alam Majumder
Lecture
Department Of finance
Faculty Of Business #dministration
II(C
Prepared By:
Student name) "ohammad "asudul #lam
"etric *o+ ) B1,1-./
Pro!ram ) "B#
Finance & Bankin!0 II(C+
Submission ate ) 123,231,1-
Department of Business Administration
Faculty of Business Studies
INTERNATIONAL ISLAI! "NI#ERSIT$ !%ITTA&ON&
1
Letter of Transmittal
ate) 12
th
0 "ay0 1,1-
To
The Super4isor
5ecturer
Faculty of Business Studies
International Islamic (ni4ersity
Chitta!on!0 Ban!ladesh
Sub%ect) 3 Submission of internship report on 6Customer satisfaction in FSIB57
ear "adam0
$ith due respect and honor 8ant to state you that I am a re!ular student of "B#
semester (Finance' 8ant to submit the internship report on fulfillment of the "B# de!ree
re9uirement+ The report is based on 6Customer satisfaction in FSIB57+ I am !rateful to
my super4isor for !i4in! me the scope+
I pray and hope that you 8ould be kind enou!h to accept this report and obli!e thereby+
:ours sincerely0
( '
Student name) "ohammad "asudul #lam
"etric *o+ ) B1,1-./
Pro!ram ) "B#
Finance & Bankin!0 II(C+
Submission ate ) 123,231,1-
Chitta!on!0 Ban!ladesh+
.
A!'NO(LED&ENT
#t first all praise and indebtness to the #lmi!hty #llah0 the 5ord of ;lory and <onor and
his Friend our Prophet "ohammad (S"'0 for all the blessin! sho8ers upon me to make
such a success+
=4ery creati4e task to be finished successfully needs shared efforts from indi4iduals and
institutions+ It is a !reat pleasure and humble opportunity for me that I am assi!ned for
doin! my internship in First Security Islami Bank 5td+ (FSIB5'+ I e>press my !ratitude to
all of them 8ho help me in completin! my internship I also ackno8led!e their help 8ith
heartfelt thanks+
I 8ant to con4ey my heartfelt respect and cordial thanks to my super)isor to !i4e an
opportunity to carry out my internship and I also like to thank for his !enerous
cooperation and constant !uidance that made me really confident about the desired
outcome of my internship pro%ect+
I am !rateful to the ana*er+ First Security Islami Ban, Limited+ Ander,illa
Branc- for his in4aluable support and !uidance that led to the successfully completion of
my internship pro%ect+
"y special thanks !o to the 8hole team of FSIB5 for their continuous support0
inspiration and !i4in! me the opportunity to deal 8ith different suppliers+
-
Executive Summary:
Bankin! system of Ban!ladesh has !one throu!h three phases of de4elopment3
*ationali?ation0 Pri4ati?ation0 and 5astly Financial Sector Reform+ First Security
Islami Bank 5imited (FSIB5' first incorporated in Ban!ladesh as a pri4ate
commercial bank on on 1/ au!ust 1///+ The bank is conductin! their bankin!
acti4ities in Ban!ladesh throu!h -@ branches+
The ob%ecti4e of FSIB5 is to offer Islami shariah based bankin! acti4ities0 to
contribute social and economical de4elopment0 creatin! employment opportunities0
ser4ice to their 4alued customers0 pro4ide efficient computeri?ed bankin! System0
enhance forei!n e>chan!e operation0 accept deposits on profit loss sharin! basis0
established a 8elfare orientated bankin! system+
Mainly operations of FSIBL go under the following heads:
;eneral bankin!
In4estment
Forei!n e>chan!e
#s a ser4ice3oriented or!ani?ation FSIB5 is ser4in! itAs customer throu!h itAs
different departmentsB Forei!n e>chan!e department plays si!nificant roles throu!h
pro4idin! different ser4ices for the customers+ 5etters of credit is the key player in the
forei!n e>chan!e business+ $ith the !lobali?ation of economies0 international trade
has become 9uite competiti4e+ Timely payment for e>ports and 9uicker deli4ery of
!oods is0 therefore0 a pre3re9uisite for successful international trade operations+ To
ensure this purpose FISB5 transmit 5CC throu!h S$IFT (Society for $orld8ide Inter
bank Financial Telecommunication' to the ad4isin! bank+
First security Islami Bank 5imited is pro4idin! different sorts 5C ser4ices like 5CC
openin!0 lod!ment0 B5C (bills under letter of credit'0 Back to back 5C etc+ Forei!n
e>chan!e department also pro4ide forei!n remittance lie tra4elerAs che9ue0 money
;ram forei!n demand draft0 endorsement of (S dollar in passport+
2
@
Ta.le of !ontents
/ Title Pa*e i
0 !o)er Pa*e ii
1 Letter of Transmittal iii
2 Ac,no3led*ement i)
4 E5ecuti)e Summary )
/6 Title Pa*e7
!-apter One
6Introductory Aspects7
/
Introduction /
O.8ecti)es of t-e study and scope 0
et-odolo*y 192
Limitations of t-e report 1
!-apter T3o
T-eoretical aspects 2
!ompany Details 491/
!-apter T-ree
Practical Aspects
10
Rules and re*ulations of financial disclosure 119:0
!-apter Four
!onclusionary Aspects :1
Findin*s and analysis :29:;
<=
!-apter 4 </
Recommendation
!onclusion
References
<0
D.
D
Chapter: 1
Introduction
Introduction:
E
Bankin! system of Ban!ladesh has !one throu!h three phases of de4elopment3
*ationali?ation0 Pri4ati?ation0 and 5astly Financial Sector Reform+ First Security
Islami Bank 5imited (FSIB5' first incorporated in Ban!ladesh as a pri4ate
commercial bank on on 1/ au!ust 1///+ The bank is conductin! their bankin!
acti4ities in Ban!ladesh throu!h -@ branches+
The ob%ecti4e of FSIB5 is to offer Islami shariah based bankin! acti4ities0 to
contribute social and economical de4elopment0 creatin! employment opportunities0
ser4ice to their 4alued customers0 pro4ide efficient computeri?ed bankin! System0
enhance forei!n e>chan!e operation0 accept deposits on profit loss sharin! basis0
established a 8elfare orientated bankin! system+
Mainly operations of FSIBL go under the following heads:
;eneral bankin!
In4estment
Forei!n e>chan!e
#s a ser4ice3oriented or!ani?ation FSIB5 is ser4in! itAs customer throu!h itAs
different departmentsB Forei!n e>chan!e department plays si!nificant roles throu!h
pro4idin! different ser4ices for the customers+ 5etters of credit is the key player in the
forei!n e>chan!e business+ $ith the !lobali?ation of economies0 international trade
has become 9uite competiti4e+ Timely payment for e>ports and 9uicker deli4ery of
!oods is0 therefore0 a pre3re9uisite for successful international trade operations+ To
ensure this purpose FISB5 transmit 5CC throu!h S$IFT (Society for $orld8ide Inter
bank Financial Telecommunication' to the ad4isin! bank+
First security Islami Bank 5imited is pro4idin! different sorts 5C ser4ices like 5CC
openin!0 lod!ment0 B5C (bills under letter of credit'0 Back to back 5C etc+ Forei!n
e>chan!e department also pro4ide forei!n remittance lie tra4elerAs che9ue0 money
;ram forei!n demand draft0 endorsement of (S dollar in passport+
/
#s I am directly in touch 8ith customers0 the report 8ill deal 8ith the ser4ice 9uality and
customer satisfaction of FSIB5 Bank 5imited+ # sur4ey 8ill be conducted on the
customers of FSIB5 Bank 5imited+ The ob%ecti4e of this report 8ill be to determine to
ho8 8ell FSIB5 Bank 5imited is satisfyin! the customers on different ser4ice !rounds+
Farious important issues of customer satisfaction 8ill be presented in li!ht of the
findin!s of the sur4ey+
5astly the findin!s 8ill be e>amined to prescribe a set of specific recommendations to
impro4e the o4erall ser4ice 9uality accordin! to customers e>pectations and also to sol4e
the e>istin! problems in the 8hole or!ani?ational le4el+
1,
O.8ecti)es of t-e report:
The endea4or of this report is to endo8 me 8ith 4aluable practical kno8led!e about
bankin! operations and acti4ities and analy?e the performance of the FSIB5 Bank 5td+
The ob%ecti4e of the study 8as to determine the customersA perception about the ser4ice
9uality of Customer care department of FSIB5 Bank 5td+ It !a4e the mana!ement an idea
about the 9uality of the ser4ice that they are pro4idin! and 8ill help them to make
decision to impro4e that+
Broad O.8ecti)es
To kno8 the o4erall performance of Commercial Bank of First Security Islami
Bank 5td+
To relate theoretical understandin! 8ith practical occurrence in se4eral functions
of the bank+
To e>hibit the acti4ities of the Bankin! Ser4ices+
To be ac9uainted 8ith ho8 bank perform operations and acti4ities as 8ell
as !et an o4erall idea of Ser4ice system of the FSIB5 Bank 5td+ 5td+
Specific O.8ecti)e:
The main ob%ect in conductin! this research report is to !ain practical kno8led!e apart
from institutional teachin! and also to ac9uire kno8led!e about the e>istin! bankin!
system and practiced bankin! system in First Security Islami Bank 5imited+ This study
8ill be lookin! for the follo8in! ob%ecti4es+
To kno8 about the 4arious aspects of customer ser4ices those are pro4ided by
FSIB5 Bank 5td+
Too see satisfactory le4el of customers about BankAs ser4ices+
To find out the principles0 4alues0 and its strate!y of runnin! business+
11
To !et and insi!ht into the history and operations of FSIB5 Bank 5imited+
To find out the underlyin! functions0 roles and responsibilities of different
di4isions of FSIB5 Bank 5imited+
To analy?e and e4aluate the mana!erial performance of different di4isions+
To fi!ure out the responsibilities of a bankerAs to the issue and lead bank in li!ht
of FSIB5 Bank e>periences+
To e4aluate the market potentiality and competiti4e situation in the ser4ice market
of BankerAs to the issue and lead Bank+
Findin! out the 8eaknesses of their ser4ice+
"akin! the solutions that can remo4e those 8eaknesses+
et-odolo*y
In order to make the report more meanin!ful and presentable0 from t8o sources data and
information ha4e been collected+ This are3
Data !ollection
a' Primary sources
b' Secondary sources
a' Primary sources of data includin! the follo8in!)
Face to face con4ersation 8ith the institutions officers and
staffs
irect con4ersation 8ith the customer+
Practical desk8ork+
b' Secondary sources of data includin! the follo8in!)
#nnual report of FSIB5 Bank 5imited
(npublished data from the or!ani?ation
ifferent publications of FSIB5 Bank 5imited
$ebsite+
FSIB5 Bank 5imited atabase
The e>ploratory sur4ey reached perform 8ith the respondent by door3to3door inter4ie8
method 8here respondents !o throu!h a 9uestionnaire sur4ey by takin! the help of
11
respondents I constructed a 4ery specific 9uestionnaire that prepared 8ith fle>ibility to
make it unbiased and the sur4ey 9uestionnaire structured by both 6open 3ended7 and
6close Gended7+ In this research a con4enience samplin! applied and may need
%ud!mental samplin! application in some condition+ This collection information
presented in a !raphical percenta!e manner but in standard editin! and codin! system+
For conductin! the research0 I took1,, respondents as sample si?e+
Limitations of the study
The study has been conducted to make an in4esti!ation of the bankHs ser4ice oriented
acti4itiesB durin! carryin! out the study in this field0 some problems may be termed as
limitations of the study)
I !ot a short period of time to prepare the report
In bank all employees are too busy+ It is tou!h to ha4e a break from their ti!ht
schedule
There are a lot of secret matters in the or!ani?ation+ #s an intern the researcher
cannot reach to those secret topics+
Technolo!ical aspect) The report does not describe any technolo!ical aspect+
In some cases0 up to date information 8ere not published+
5ack of proper books0 %ournals and other elements+
Sufficient records0 publications facts and fi!ure are not a4ailableB these hamper
the scope of real analysis+
"any procedural matters 8ere 8ritten from our o8n obser4ation0 8hich may also
4ary from person to person+
In spite of all the limitations I fully prepare the 8hole report 8hile conductin! the
study and makin! of it+ It has mana!ed to end up 8ell+ I belie4e that I ha4e
prepared a 9uality report on the Customer care di4ision of the system of the
*ational Bank 5td+
1.
Chapter: 2
Theoritical Aspects
1-
T-e Ban,in* Sectors of Ban*lades-:
Ban!ladesh bank (BB' has been 8orkin! as the central bank since the countryAs
independence+ Its prime %obs include issues of currency0 maintainin! forei!n e>chan!e
reser4e and pro4idin! transaction facilities of all public monetary matters+ BB is also
responsible for plannin! the ;o4ernmentAs monetary policy and implementin! it thereby+
The number of banks in all no8 stands at -/ in Ban!ladesh+ Out of the -/ banks0 four are
*ationali?ed commercial bank (*CBs'0 1E local pri4ate commercial banks0 11 forei!n
banks0 and the rest fi4e are de4elopment financial institutions (FIs'+
Sonali bank is the lar!est amon! the *CBs 8hile Pubali is leadin! in the pri4ate once+
#mon! the 11 forei!n banks0 Standard Chartered has become the lar!est in the country+
Besides the scheduled banks0 Samabai (corporati4e' bank0 #nsar3 FP bank0
Iarmasansthan (employment' bank and ;rameen bank are functionin! in the financial
sector+
Ban!ladesh bank (BB' re!ulates and super4ises the aciti4ities of all banks+ The BB is
no8 carryin! out a reform pro!ram to ensure 9uality ser4ices by the banks+ The list of
banks doin! their operation in Ban!ladesh are3
12
Nationali>ed !ommercial Ban,s 6N!Bs7
Name Telep-one
/?Sonali Ban, ;44=20:912+ @:/24@@
0? Aanata Ban, ;4:==<09@=+ ;4:==20921
1? A*rani Ban, ;4::/41942+ ;4::/:=9:;+
;444/<;9@=
2? Rupali Ban, ;44/:02904+ ;442/00+
;440/@192
Pri)ate !ommercial .an,s 6PB!s7
1+ Pubali bank /2@/,2,310 /221@1-3D
1+ (ttara Bank /2@@,@D3/0 /2211@13@.0
/2@2D.1
.+ *ational Bank /2@.,E1320 /2@11,1
-+ The City bank 5imited /2@2/123.-
2+ (nited Commercial Bank 5imited+ /2@,2E2
@+#rab Ban!ladesh bank 5imited+ /2@,EEDE0 /2@,.113@
D+ IFIC Bank 5imited+ /2@1,@10 /2@.,1,31/
E+ Islami Bank Ban!ladesh 5td+ /221E/D3E0 /2@.,-,0
/2@.,-@3/
/+ #5 Baraka Bank Ban!ladesh 5td+ /2@.D@E3/0 /2@2,.131
1,+ =astern Bank 5td+ /22@.D10 /22@.@131
11+ *ational credit and commercial Bank 5td+ /2@1/,13-
11+ Prime Bank 5td+ /2@D1@23D,0 /2@-@DD
1.+ South east Bank 5td+ /22,,E1320 /2212D20 /22DD1-
1-+ haka Bank 5td+ /22@2ED31,0 /22@2E.
12+ #53 #rafah Islami Bank 5td+ /22/,1-0 /22-E22
1@+ Social In4estment Bank 5td+ /2@E2.D3./
1D+ utch3ban!la Bank 5td+ /22/...
1E+ "ercantile Bank 5td+ /@@D11-0 /@@DE,1
1/+ Standard Bank 5td+ /2@-1-/0 D221D//0 /2@-1223@
1,+ One bank 5td+ /22./120 /22.ED10 /2@@-1E
11+ =JI" Bank 5td+ /22./120 /22.ED10 /2@@-1E
11+ Ban!ladesh Commerce Bank 5td+ /22/E.13.10 /@@E1D,
1.+ "utual trust Bank 5td+ /2@/.1E0 D11.1./
1-+ First Security Bank 5td+ /2@,11/0 /2@-D..
12+ The Premier Bank 5td+
1@+ Bank #sia 5td+ E11D,220 E11D,@@
1D+ The Trust Bank 5td+ /ED,,11 e>tn3 -1/1
1E+ Shah Kalal Bank 5td+ ( Based on Islamic Shariah' /22@,11
1@
Forei!n banks
1+ #merican =>press Bank /2@1D213210 /2@1-/@3/D
1+ Standard Chartered !rindlays bank /2@1-@20 /22,1E13/,
.+ habib bank ltd+ /22111E0 /222,/131
-+ State Bank of India /22-1210 /22..D1
2+ *ational Bnak Of Pakistan E111/2/
@+ "uslim Commercial Banl 5td+ /2@,1-E3/
D+ City Bank *# /2@.@-/0 /2@.@2,
E+ <an4it Bank 5td+ /22,,@.3@-
/+ <SBC 5td+
1,+ Credit #!ricole Indosue? ( the Bank' EE1.1D,3D.
11+ Shamil Islami bank Of Baharain =C /@@D,132
11 Standard Chartered Bank /2@1-@20 EE1D1E3/
De)elopment Ban,s
1+ Ban!ladesh Irishi Bank /2@,,11320 /2@,,.13.2
1+ Ra%shahi Irishi (nnayan Bank /2212,3/0 /2@@11-
.+ Ban!ladesh Shilpa Bank /2@2E1E0 /2@2,-@
-+ Ban!ladesh Shilpa Rin Shan!stha
2+ Bank of Small Industries and Commerce Ban!ladesh
5td+
/2@-E.,0 /@2E1/,
Ot-ers
1+ #nsar FP (nnayan Bank E.1.1/E0 E.111E1
1+ Ban!ladesh Shamabai Bank 5td+ (BSB5'
.+ ;rameen Bank E,12D223E
-+ Iarmashan!sthan Bank /2@..11
1D
Customer satisfaction is a term frequently used in marketing. It is a measure of how
products and services supplied by a company meet or surpass customer expectation.
Customer satisfaction is defined as the number of customers! or percentage of total
customers! whose reported experience with a firm! its products! or its services "ratings#
exceeds specified satisfaction goals. In a survey of nearly $%% senior marketing managers!
&' percent responded that they found a customer satisfaction metric very useful in managing
and monitoring their businesses.
(ithin organi)ations! customer satisfaction ratings can have powerful effects. *hey focus
employees on the importance of fulfilling customers+ expectations. ,urthermore! when these
ratings dip! they warn of problems that can affect sales and profitability. . . . *hese metrics
quantify an important dynamic. (hen a brand has loyal customers! it gains positive word-of-
mouth marketing! which is both free and highly effective.
Purpose
Customer satisfaction provides a leading indicator of consumer purchase intentions and
loyalty.. Customer satisfaction data are among the most frequently collected indicators of
market perceptions. *heir principal use is twofold:
'. (ithin organi)ations! the collection! analysis and dissemination of these data send a
message about the importance of tending to customers and ensuring that they have
a positive experience with the company+s goods and services.
$. /lthough sales or market share can indicate how well a firm is performing currently!
satisfaction is perhaps the best indicator of how likely it is that the firm+s customers
will make further purchases in the future. 0uch research has focused on the
relationship between customer satisfaction and retention. Studies indicate that the
ramifications of satisfaction are most strongly reali)ed at the extremes. 1n a five-
point scale! individuals who rate their satisfaction level as 232 are likely to become
return customers and might even evangeli)e for the firm. "/ second important metric
related to satisfaction is willingness to recommend. *his metric is defined as *he
percentage of surveyed customers who indicate that they would recommend a brand
to friends. (hen a customer is satisfied with a product! he or she might recommend
it to friends! relatives and colleagues. *his can be a powerful marketing advantage.#
Individuals who rate their satisfaction level as 2'!2 by contrast! are unlikely to return.
,urther! they can hurt the firm by making negative comments about it to prospective
1E
customers. (illingness to recommend is a key metric relating to customer
satisfaction.
/ business ideally is continually seeking feedback to improve customer satisfaction
Customer Satisfaction & Loyalty
Customer satisfaction and loyalty are critical elements of lon!3term business !ro8th
and profitability+ For mature se!ments of the ima!in! and document technolo!y
industries0 customer satisfaction is particularly important because of limited ne8
!ro8th prospects+ *e4ertheless0 hi!her customer satisfaction and loyalty can ha4e a
much broader impact on your business by enablin! you to)
#chie4e lo8er costs of sellin!
Increase repeat purchases from e>istin! customers
Impro4e brand e9uity or price premium
Increase retention rates for supplies sales
=nable faster roll out and ramp up of ne8 products and ser4ices
5e4era!e satisfaction rates in marketin! messa!es to attract ne8 customers
Create a pool of referrals for capturin! ne8 accounts
Impro4e employee producti4ity0 satisfaction0 and retention
In many cases customer satisfaction and loyalty are not simply based on ho8 8ell
your product performs+ Customers tend to ha4e a more holistic 4ie8 of their
e>perience and 8hat satisfies them+ #s part of our customer satisfaction research0
InfoTrends can 8ork 8ith you to identify the key components dri4in! customer
loyalty0 includin!)
1/
Identifyin! 8hat the customer 4alues
=>aminin! critical touch points 8ith the customer
(nderstandin! the impact of your channel on customer satisfaction
=>aminin! the impact of billin! and administrati4e issues on satisfaction
Identifyin! specific sources and causes for lo8 customer satisfaction
Luantifyin! the business impact from impro4in! customer satisfaction
Benchmarkin! your customer satisfaction 4s+ competitors
#ssessin! the differences in customer satisfaction by market se!ment
=>aminin! the relationship bet8een business processes and customer satisfaction
InfoTrends speciali?es in 8orkin! 8ith document and ima!in! technolo!y 4endors to
assess customer satisfaction and loyalty+ $e can help you de4elop systematic chan!es
that 8ill lead to impro4ements in customer satisfaction and loyalty+ "ore importantly0
8e can help you prioriti?e your initiati4es0 measure their impact0 and pro4ide
ob%ecti4e feedback on your pro!ress+
Objectives of a customer satisfaction surveying program
In addition to a clear statement defining customer satisfaction, any successful surveying
program must have a clear set of objectives that, once met, will lead to improved
performance. The most basic objectives that should be met by any surveying program include
the following:
Understanding the expectations and requirements of all your customers
etermining how well your company and its competitors are satisfying these
expectations and requirements
eveloping service and!or product standards based on your findings
"xamining trends over time in order to ta#e action on a timely basis
"stablishing priorities and standards to judge how well you$ve met these goals
%efore an appropriate customer satisfaction surveying program can be designed, the
following basic questions must be clearly answered:
&ow will the information we gather be used'
&ow will this information allow us to ta#e action inside the organi(ation'
&ow should we use this information to #eep our customers and find new ones'
1,
)areful consideration must be given to what the organi(ation hopes to accomplish, how the
results will be disseminated to various parts of the organi(ation and how the information will
be used. There is no point as#ing customers about a particular service or product if it won$t
or can$t be changed regardless of the feedbac#.
)onducting a customer satisfaction surveying program is a burden on the organi(ation and
its customers in terms of time and resources. There is no point in engaging in this wor#
unless it has been thoughtfully designed so that only relevant and important information is
gathered. This information must allow the organi(ation to ta#e direct action. *othing is more
frustrating than having information that indicates a problem exists but fails to isolate the
specific cause. &aving the purchasing department of a manufacturing firm rate the sales and
service it received on its last order on a scale of + ,terrible- to . ,magnificent- would yield
little about how to improve sales and service to the manufacturer.
Customer Satisfaction Measurement Facts
# 23percent increase in loyalty can increase profits by 12M3E2M+
# 4ery satisfied customer is nearly si> times more likely to be loyal and to
repurchase andCor recommend your product than is a customer 8ho is %ust satisfied+
Only - percent of dissatisfied customers 8ill complain+
The a4era!e customer 8ith a problem e4entually tells nine other people+
Satisfied customers tell fi4e other people about their !ood treatment+
11
Chapter: 3
Practical Aspects
11
,irst Security Islami 4ank 5td. ",SI45# is a financial institution operating based on
the principles of Islamic Shariah. ,SI45 was incorporated in 4angladesh on $6
/ugust '666 as a banking company under Companies /ct '667 to carry on
banking business. It obtained permission from 4angladesh 4ank on $$ September
'666 to commence its business.
,irst Security Islami 4ank 5td. provides all kinds of commercial banking services to
its customers through its branches in 4angladesh. *he 4ank carries banking
activities through its 6$ branches in the country. *he commercial banking activities
of the bank encompass a range of services! including accepting deposits! making
loans! discounting bills! conducting money transfer and foreign exchange
transactions! and performing other related services! such as safe keeping!
collections and issuing guarantees! acceptances and letter of credit. *he 4ank+s
product and services include deposit scheme! investment scheme! online banking!
short message service "S0S# banking! automated teller machine "/*0# banking!
utility bills and locker services. /s of 8ecember 9'! $%'%! ,SI45 held 3': interest
in ,irst Security Islami Capital ; Investment 5td. ,irst Security Islami Exchange
5td. Is a wholly owned subsidiary of the 4ank.
Vision:
*o be the premier financial institution in the country providing high quality products
and services backed by latest technology and a team of highly motivated
personnel to deliver excellence in 4anking.
Mission:
*o contribute the socio-economical development of the country.
*o attain highest level of satisfaction through extension of services by
dedicated and motivated professional.
*o maintains continuous growth of market share ensuring quality.
*o ensure ethics and transparency in all levels.
1.
*o ensure sustainable growth and establish full value of the honorable
shareholders and
/bove all! to add effective contribution to the national economy.
Corporate Slogans:
<=reen In 5iving.
Products & Services:
,irst Security Islami 4ank has two type of product.
8eposit Schemes
Investment Schemes
,SI45 also provide some services.
1nline 4anking
S0S 4anking
/*0 4anking
>tility 4ills
5ocker Services etc.
Product under Deposit Schemes:
/l-(adiah Current 8eposit
0udarabah Savings 8eposit
0udarabah Short *erm 8eposit
0udarabah *erm 8eposit
o 1ne 0onth
o *hree 0onths
o Six 0onths
o *welve 0onths
o *wenty ,our 0onths
1-
o *hirty Six 0onths
,oreign Currency 8eposit
0udarabah Savings Scheme
o 0onthly Savings Scheme
o 0onthly ?rofit Scheme
o 0ore than 8ouble the deposit in @ years
Consumer ,inance Scheme
*o 8iversify portfolio in both retail ; wholesale markets
Products under Investment Scheme:
Investment A8eployment of ,unds
o 4ai-0urabaha "8eferred 5ump Sum AInstallment Sale#
o 4ai-0uaBBal "8eferred Installment A5ump Sum Sale#
o IBara "5easing#
o 0usharaka "Coint-Denture ?rofit-Sharing#
o 0udaraba "*rustee ?rofit-Sharing#
o 4ai-Salam "/dvance Sale ; ?urchase#
o Eire-?urchase
o 8irect Investments
o ?ost Import Investment
o ?urchase ; Fegotiation of Export 4ills
o Inland 4ills ?urchased
o 0urabaha Import 4ills
o 4ai-0uaBBal Import 4ills
o ?re Shipment Investment
o Guard-ul-Easan "4enevolent Investment#
5etter of =uarantee
o *ender =uarantee
o ?erformance =uarantee
o =uarantee for Sub-Contracts
12
o Shipping guarantee
o /dvance ?ayment guarantee
o =uarantee in lieu of Security 8eposit
o =uarantee for exemption of Customs 8uties
o 1thers
5etter of Credit "5AC# A 4ack to 4ack 5etter of Credit "5AC#
Speciali)ed Schemes
o Consumer Investment Scheme
o S0E Investment Scheme
o 5ease Investment Scheme
o Eire ?urchase
o Earnest 0oney Investment Scheme
o 0ortgage Investment
o Employees Eouse 4uilding Scheme
o /*0! DIS/ Investment Card! EE,! etc.
1@
Association/Trust/Societ:
'. Hequest letter. $. ?hotograph of signatories attested by introducer. 9. Copy
of Hesolution of governing body to open the account and authori)ation for
operation. 7. Copy of consolation A bylawsA rules. 3. Certificate of registration.
@. 5ist of authori)ed signatories and members of the governing bodies along
with address. &. *rust 8eed "for *rust account only#.
Cheque oo! "ssues *ypes of Cheque 4ook+s: I Savings /ccount J '% 5eaves
I Current 8eposit /ccount J '% 5eaves I Current 8eposit /ccount J $3
5eaves "C8*,#
Cheque "ssuin# is T$o T%pes:
Customers Service 1fficer receives these types of slip from the client+s and
gives the cheque books under processing. ?rocessing means Cheque 4ook+s
collect from the D15* and the put account number in the cheque book! write
down the serial number of the cheque book in the requisition slip and cheque
book register! then Derified client signature. /fter all this things the ?rincipal
officer sign in the cheque leaves and sent the cheque book to another
?rincipal officer for sign! after his sign the client receive the cheque book.
*hese things the ?rincipal 1fficer for sign! after his sign the client receive the
cheque book. *hen ?rincipal 1fficer posting that cheque books leaves number
in the computer data processing system.
/ cover file containing the requisition slip is effectively preserved as vouchers.
If any defect is noticed by the ledger keeper! he makes a remark to that effect
on the requisition slip and forward it to the cancellation officer to decide
whether a new cheque book to be issued to the customer or not.
Account Closin#:
1D
,or two reasons! one can be closed. 1ne is by banker and other is by the
customer.
! "an#er:
If any customer doesn+t maintain any transaction within six years and the /AC
balance becomes lower than the minimum balance! banker has the right to
close an /AC.
! customer:
If the customer wants to close his /AC! he writes an application to the
manager urging him to close his /AC.
Closin# process for current & sa'in#s A(C
/fter receiving customer+s application the officer verifies the balance of the
/AC. Ee then calculates interest and other charges accumulated on the /AC. If
it bears a credit balance! the officer writes advice voucher. Ee gives necessary
accounting entries post to accounts section. *he balance is returned to the
customer. /nd lastly the /AC is closed.
4ut in practice! normally the customers don+t close /AC willingly. /t times!
customers don+t maintain any transaction for long time. Is this situation at first!
the /AC becomes dormant and ultimately it is closed by the bank.
)emittance:
Hemittance of funds is ancillary services of ,SI45. It aids to remit fund from
one place to another place on behalf of its customers as well as non-
customers of 4ank. ,SI45 has its branches in the maBor cities of the country
and therefore! it serves as one of the best mediums for remittance of funds
from one place to another. *he main instruments used by ,SI45! 8ilkusha
4ranch for remittance of funds.
I ?ayment 1rder IssueACollection
I 8emand 8raft IssueACollection
I *.*. IssueACollection
I *ravellers Cheque Issuance
I I4C A 14C Collection.
Investment Division:
Investment operation is the vital operation! which earn greater share of total
revenue. (ell planned and appropriate investment policy frame work is a pre-
requisite for achieving the goal of the 4ank i.e. implementation.
1E
*he special feature of the investment policy of the 4ank is to invest on the
basis of profit- loss sharing system in accordance with the tenets and
principles of Islamic Shariah.
Functions of Investment Division:
*he main functions of this division are:
a$% !ai &!uing and Selling$ Modes :
4ai J murabaha.
4ai J muBBal.
4ai J salam
"$% Share Modes
0udaraba
0usharaka
c$%I'ara Modes
Eire ?urchase
Eire purcahase under Shirkatul malek.
1/
Foreign Exchange Division:
,oreign Exchange means exchange foreign currency between two countries. If we
consider K,oreign Exchange+ as a subBect! then it means all kind of transactions related to
foreign currency. In other wards foreign exchange deals with foreign financial
transactions.
Sub Division of Foreign Exchange:
*here are three kinds of foreign exchange transactions:
Import%
()port%
*emittance%
Meaning of Foreign Exchange:
,oreign Exchange means currency ; trade exchange say conversion of one to another.
*his is a part of economic ; Science. *his is a big deal divided into different currencies
instrument such as 8raft! *raveler Cheque! 4ill of Exchange business including sell!
purchasing of currency notes ; *C etc. Currency Exchange means the conversion of one
Currency in to another. *he foreign exchange activities of ,S45 are divided into three
parts: *he bank has established correspondent relationship with over $$% foreign
correspondents all over the world vi). *he Eong Long and Shanghai 4anking Corporation
5td.! >S/ 0ashreq 4ank ?sc! >/E! >nion 8e 4anque /rabes Et ,rancaises! ,ranch and
ICIC bank! and India to cater to the needs of the bank+s customers engaged in
international trade. 1ur bank is maintaining adequate number of Fostro accounts in
important currencies of the world to facilitate payments and transfer of funds. *he 4ank is
providing excellent services to the clientele in foreign exchange and foreign trade
operations through the above foreign correspondents. ,oreign exchange is mainly
combination of three parts. *hose are given below:
'. Import
$. Export
9. Hemittance
*hese three parts are most essential parts of ,oreign Exchange 1perations of ,SI45 at
8ilkusha branch. Fot only ,SI45 but also all banks of 4angladesh have maintained these
rules for foreign exchange operations.
Foreign Exchange Market:
.,
,oreign Exchange market means the process where foreign currency is bought ; sold. In
this more that supply! currency value. >ltimately following are the features of foreign
exchange market.
4ank ; client.
8ifferent 4anks in the come foreign exchange market.
8ifferent 4ank ; Schedule 4ank of the same country.
8ifferent Control 4ank.
,irst Security Islami 4ank 5td. ",SI45# is a 4ank that follows the following two craters in
respect ; payment of foreign exchange.
5ocal currency market value ;
,oreign currency market value.
Types of Financial Institution:
Source: *eading materials for +oreign ()change and +inancial in
International Trade%
Foreign Exchange Market Operation:
,oreign exchange dealers in each bank usually operate from one roomM each dealer has
several telephones and is surrounded by video screen and news taps. 1nly the head or
regional offices of the larger banks actively deal in foreign exchange. ,oreign exchange
brokers may be used as middlemen to find a taker or takers foe the deal. 4rokers do not
trade on their own account but speciali)e in setting up large foreign exchange transaction
.1
in return for a commission. 0ost small banks and local offices of maBor banks do not deal
directly in the inter bank foreign exchange market.
Structure of Foreign Exchange Markets:
o! Foreign Exchange is "eing #ontrolle$:
,oreign Exchange is being controlled by the following ways:
*o stabili)e the rate of exchange
*o protect domestic industries
,or proper implementation of plans
*o increase the bargaining strength
*o check over invoicing ; >nder invoicing
*o check the 4lank marketing and smuggling
,or regulating the international movements of goods
%uthori&e$ Dealer "ranch:
4angladesh 4ank in exercise of the power under section 9 of ,oreign Exchange
regulation /ct. '67& issues a license to schedule bank where they have adequate trained
officerAstaff to deal in ,oreign Exchange. *he banks that are authori)ed dealers.
%rbitrage of Foreign Exchange:
/rbitrage can be defined as simultaneous buying and selling of foreign currencies for the
purposes of making profit /rbitrage is carried out mostly by banks! they keep constant
watch over the latest development in the financial market of the world.
.1
Foreign Exchange 'egulation Items:
,oreign exchange regulations items are given below:
4angladesh 4ank 0anual
,oreign Exchange Circular
?ublic notice
Import and export policy ga)ette
0inistry of commerce circular
=uise line for foreign exchange regulation
Foreign Exchange "usiness of FSI"(:
,%Import: *he 4ank+s foreign exchange business relating to import was tk.@@%3.7% million
at the ends of 8ecember $%%3.
-% ()port: 4ank+s foreign exchange business relating to export was tk.$N3@.7% million at
the ends of 8ecember $%%3.
.%In/ard *emittance: 8uring $%%3the 4ank handled inward remittance from
4angladeshi workers abroad to the tune of tk.@$.$' million against 9$.@6$ million in $%%7.
Functions of Foreign Exchange of FSI"(:
*he 4ank actions as a media for the system of foreign exchange policy. ,or this reason!
the employee who is related of the bank to foreign exchange! especially foreign business
should have knowledge of these following functions:
..
Metho$ of Effecting )ayment of FSI"(:
,irst Security Islami 4ank 5td. follows the following method to make payment between
countries:
,% Telegraphic Transfer &TT$:
*his is an instruction for transfer of money by telegram! cable or telex from bank in one
country to another bank in different center. *his is an instruction from the importers bank
to the exporter+s bank. *he ** is reali)ed by us from the party as per bank circular.
.-
-% Mail Transfer:
*his transfer is the order to pay cash to 9
rd
party. *his transfer is sent by mail and the
charge must be reali)ed ad per bank circular.
.% Drafts and Che0ue:
/ 8raft is order issued by one bank to another bank or its branch.
(etter of cre$it Meaning:
5etter of credit "5AC# can be defined as a <Credit Contract. whereby the buyer+s bank is
committed "on behalf of the buyer# 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
8ocumentary 5etter of Credit. *he >niform Customs ; ?ractices for 8ocumentary Credit
">C?8C# published by international Chamber of Commerce "'669# Hevision ?ublication
Fo. 3%% defines 8ocumentary Credit:
/ny arrangement however named or described whereby a bank "the <issuing bank.#
acting at the request and on the instructions of a customer "the </pplicant.# or on its own
behalf
'. Is to make a payment or to the order of a third party"the beneficiary# or is to accept
and pay bills of exchange"8rafts#drawn by the beneficiary! or
$. /uthori)es another bank to effect such payment or to accept and pay such bills of
exchange "8rafts#
9. /uthori)es another bank to negotiate against stipulated documents provide that terms
and conditions are complied with.
Types of Documentary #re$it:
8ocumentary Credits may be either:
"a# Hevocable credit.
"b# Irrevocable credit.
&a$ *evoca"le credit:
/ revocable credit is a credit that can be amended or cancelled by the issuing bank at
any time without prior notice to the seller.
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. *he 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
.2
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.
*b+ Irrevocable cre$it
/n irrevocable credit constitutes a definite undertaking of the issuing bank "since it can
not be amended or cancelled without the agreement of all parties thereto#! provided that
the stipulated documents are presented and the seller satisfies the terms and conditions.
*his sort of credit is always preferred to revocable letter of credit.
Parties To a letter of Credit:
*he parties are:
*he Issuing 4ank!
*he Confirming 4ank! if any! and
*he 4eneficiary.
Other parties that facilitate the Documentary #re$it are:
*he /pplicant!
*he /dvising 4ank!
*he Fominated ?ayingA /ccepting 4ank! and
*he *ransferring 4ank! if any
1+ Importer J Seller who applies for opening the 5AC%
1+ Issuing !an# J It is the bank which opensAissues a 5AC on behalf of the importer%
.+ Advising / 1otifing !an# J is the bank through which the 5AC is advised to the
exporters% *his bank is actually situated in exporters country% It may also assume the role
of confirming and A or negotiating bank depending upon the condition of the credit%
-+ 1egotiating !an# J is the bank! which negotiates the bill and pays the amount of the
beneficiary% *he advising bank and the negotiating bank may or may not be the
same% Sometimes it can also be confirming bank%
3. Paing / Accepting !an# J is the bank on which the bill will be drawn "as per
condition of the credit#% >sually it is the issuing bank%
@. *eim"ursing "an# J is the bank! which would reimburse the negotiating bank after
getting payment J instructions from issuing bank%
,irst Security Islami 4ank certify the CI4 "credit information bureau# and all agreements
are made before opening 5AC as a result its goods are not sold again raising the products
price or reducing the product price. It sis the single deal system! 4ecause ,SI45 deal+s
with the business of selling any buying! not loaning.
Some Important Documents of (,#
&a$ +or/arding:
,orwarding is the letter given by the advising bank to the issuing bank. Several copies
are sent to the issuing bank. /ll copies including original should be kept in the bank.
&"$ !ill of ()change:
.@
/ccording to the section %3! Fegotiable Instruments "FI# /ct-'NN'! / <bill of exchange. is
an instrument in writing containing an unconditional order signed by the maker! directing
a certain person to pay Oon demand or at fixed or determinable future timeP a certain sum
of money only to or to the order of a certain person or to the bearer of the instrument. It
may be either at sight or certain day sight. /t sight means making payment whenever
documents will reach in the issuing bank.
&c$ Invoice:
Invoice is the price list along with quantities. Several copies of invoice are given. *wo
copies should be given to the client and the other copies should be kept in the bank. If
there is only one copy! then its photocopy should be kept in the bank and the original
copy should be given to the client. If any original invoice contains the custom+s seal! then
it cannot be given to the client.
&d$ Pac#ing 2ist:
?acking list is the letter describing the number of packets and there si)e. If there are
several copies! then two copies should be given to the client and the remaining should be
kept in the bank. 4ut if there is only one copy! then the photocopy should be kept in the
bank and the original copy should be given to the client.
&e$ !ill of 2ading:
4ill of 5ading is the bill given by shipping company to the client. 1nly one copy of 4ill of
5ading should be given to the client and the remaining copy should be kept in the bank.
&f$ Certificate of 3rigin:
Certificate of origin is a document describing the producing country of the goods. 1ne
copy of the certificate of origin should be given to the client and the remaining copy
should be kept in the bank. 4ut if there is only one copy! then the photocopy should be
kept in the bank and the original should be given to the client.
&g$ Shipment Advice:
*he copy mentioning the name of the insurance company should be given to the client
and the remaining copies should be kept in the bank. 4ut if only one copy is given! then
the photocopy should be kept in the bank and the original copy should be given to the
bank.
Form - IM):
*his form is prepared for maintaining account of the money! which goes out side the
country for the purpose of payment. *his form is required by 4angladesh 4ank. It is an
.D
application for permission under 7A3 of the ,oreign Exchange Hegulation /ct! '67& to
purchase foreign currency for the payment of import.
Copies of IMP 4 +orm:
I0? J ,1H0 has four copies:
'. 1riginal copy for 4angladesh 4ank.
$. 8uplicate copy for authori)ed dealers. It is issued for processing Exchange Control
Copy of bill of entry or certified invoice.
9. *riplicate copy for authori)ed dealers+ record.
7. Guadruplicate copy for submission to the bank in case of imports where documents
are retired.
+ollo/ing documents are sent /ith +3*M5IMP:
5etter of Credit /uthori)ation ,orm!
1ne copy of invoice!
Indent copy A proforma invoice.
The follo/ing information is included in the +3*M5IMP:
Fame and address of the authori)ed dealer!
/mount of foreign currency in words and figures!
Fames and address of the beneficiary!
5AC /uthori)ation ,orm number and date!
Hegistration number of 5AC /uthori)ation ,orm with 4angladesh 4ank! and
8escription of the goods.
./0 Meaning of Import
Import means lawfully carrying out of anything from one country to another country for
buying. It will be occurred according to the government law. ,irst Security Islami 4ank
5td.",SI45#+s foreign exchange business relating to import was *k.@@%3.7% million at the
ends of 8ecember $%%3.*her are different years import happened by ,SI45 at /nderkilla
are given bellow:
Qear *otal 5AC /mount in >S R Exchange Hate /mount in 48*
$%%@ 7&7 R3!&77!%'6.$$ &9.N% 7$9!677!%%%.3@
$%%N 3%% R9&!&7$!N3&.'7 &%.%% $!@7$!%%%!%%%.%%
*here are *hree types of import. *hey are given below:
Commercial import
Industrial import
Import under wage
.E
./1 Import Mechanism:
*o import! a person should be competent to be an Kimporter+. /ccording to Import and
Export "Control# /ct! '63%! the officer of Chief Controller of Import and Export provides
the registration "IHC# to the importer. /fter obtaining this! the person has to secure a
letter of credit authori)ation "5C/# from 4angladesh 4ank. /nd then a person becomes a
qualified importer. Ee requests or instructs the opening bank to open an 5AC.
Import proce$ure of FSI"(
/n importer is required to have the following to import through ?45S
/pplicant has to apply for opening 5AC by a prescribed form.
/pplicant has to submit the 5etter of Indent or 5etter of ?roforma Invoice.
2etter of Indent:
0any sellers have their agent in seller+s country. If the contract of buying is made
between the buyers and the agent of the sellers then 5etter of Indent is required.
2etter of Proforma Invoice:
If the contract is made directly between the buyers and the sellers then 5etter of
?roforma Invoice is needed.
/pplicant has to submit IHC "Indentors Hegistration Certificate#. It is a certificate being
renewed every year. *his certificate is necessary if the contract is made between the
buyers and the agents of the sellers. IHC is of two types J C10 and IF8. C10 is given for
commerce purpose and IF8 is given for industrial purpose.
/pplicant has to submit 5C/, "5etter of Credit /uthori)ation ,orm#.
/pplicant has to submit insurance document.
/pplicant has to prepare ,1H0-I0?.
Hecently! there has been made a provision to give a certificate named *IF "*ax
?ayers Identification Fumber#. *axation department issues this certificate.
*hen after proper scrutiny bank will open an 5AC.
(hile opening 5AC! importer must keep certain percentage of the document value in the
bank as margin
'estriction regar$ing source of procurement of goo$s:
=oods from South /frica and Israel or goods orienting from these two countries shall not
be importable goods shall not be importable in the flag vessel of those two countries.
./
Import at Competitive *ate:
Import shall be made at the most competitive rate and the importers may be required! at
any time! to submit documents regarding the price paid or to be paid by them. *his order
shall be exempted up to *L.'.%% lac for opening 5AC.
Pre5shipment Inspection:
>nless otherwise specified per-shipment inspection of imported goods shall not be
obligatory in case of import by the private sector importers.
Import on C(* "asis:
/ll imports by sea air and land route shall be made on cost and freight basis! Import on
free on board basis may be made strictly observing 4angladesh 4ank+s circular! before
opening 5AC necessary insurance cover note should have to be purchased form the
insure co. no import shall be allowed on CI, basis without prior approval from the ministry
of commerce.
./.Import %uthori&ation
Import 2icense not re0uired: Fo import license will be necessary import of any item.
Import against 2CA form: >nless otherwise specified no import irrespective of the
source of finance! shall be allowed exchange through submission 5C/ form! duly filled in!
to the concerned nominated 4ank.
Import against 2CA form "ut /ithout opening: Import against 5C/ form may be
allowed without opening of letter of credit in the e following cases:
Import of books! Cournals! 0aga)ines and periodicals on sight draft or essentials bill
basis.
Import of any permissible item for an amount not exceeding >SR $3%%A-only during
calendar year against remittance made from 4angladesh at (ES rate.
Deferre$ )ayment:
2/C ma "e open under deferred pament "asis:
Direct Pament in A"road: 1nly for 4angladeshi Fational who live in abroad for service.
*hose who are entitled to purchases the importable goods for direct payment to the
beneficiary from his own service without opening any 5AC! *he goods must be sent to the
4angladesh.
Time limit opening 2/C: 5etter of credit shall be opened by all importers within '$% days
from the sate of registration of 5C/, with the 4angladesh 4ank unless otherwise notified.
Document re0uired to "e su"mitted along /ith 2CA from:
5AC application form duly signed by the importer.
-,
Indent for goods issued by indenture or pro-forma invoice obtained from the foreign
supplier! as the case may be end
Insurance cover note.
Import (,# *(etter of #re$it+:
/ letter of credit is a conditional bank undertaking of payment. In other orders letters of
credit is a letter form the importer 4ankers to the exporter that the bills if drawn as per
terms and conditions complied with will be honored on presentation.
Classification of 2/C:
'. ,% Hevocable 5AC
$. -% Irrevocable 5AC
9. .% *ransferable 5AC
7. 6% Hevolving 5AC
3. 7% Hed clause 5AC
@. 8% =reen clause 5AC
&. 9% 4ack to 4ack 5AC
Documents su"mitted " the importer "efore opening of the 2/C:
*rade license "Dalid#
Import registration Certificate "0ust kept in the bank custody #
?assbook import
Income tax declaration
0embership certificate
0emorandum of articles "in case of 5td. Co.#
Hegister deed "in case of partnership firm#
"ank !ill supply the follo!ing papers ,$ocument before opening (,#
5AC application from
I0? from
Charge documents paper
*he above paper must be completed dully filled and signed by the party and verified
signature.
2/C application and procedure for opening 2/C:
,or opening 5AC the client is to submit to the bank an application in the printed format of
the designed bank. *his is called 5AC application form! which is also an agreement
between the import and the bank. *he form is to be stamped under stamp act. I n force in
4angladesh! *he importer must be submit the 5AC and I0? and indent or contract.
?urchase orderA pro-forma invoice along with 5AC application must be completed in and
signed by the authori)ed person of the importer giving the following particulars:
,ull name and address of the supplier of beneficiary and importer
4rief description of the goods
-1
5AC value for >SR etc which must not exceed the /5C/ value
*he unit price quantity! quality of the goods
1rigin of the goods! port of loading and port of destination must be mentioned
0odel of shipment "Sea /ir! Hoad etc.#
5ist date of shipment and negotiation time
*enor of draft
0ode of advising 5AC
Instrument to add confirmation if required.
5C/ number
Examination of (,# application:
1n receipt of 5AC application it must be checked by an officer of 5AC section very carefully
in the following manner:
*hat all the information mentioned in above column has been furnished.
*hat the terms to be imported are eligible according to importers entitlement
*hee goods are not being imported or originated from SouNth /frica or Israel
*hat all the cutting Apermit etc are endorsed
*hat the validity of the 5AC must not exceed the validity of 5C/.
5AC ids opened within the validity period permitted in the license
'etirement proce$ure for Deferre$ payment of issuance "ills:
(hen the draft is returned by the draw "importer# after duly accepted by him the following
procedure to be maintained!
*he maturity date is to be worked out and noted in the bill register and also in due date
diary. *he due date dairy may be maintained by the dealing officer and the manager in
charge of foreign exchange department.
*he foreign corresponding should be advised the due date maturity and the authori)ed
to debit the F1S*H1 account or to claim reimbursement on due date as per 5AC terms.
/ll the documents delivered to the importer except accepted bill of exchange or draft.
#harges for (,# opening:
2/C commission:
5AC commission 3%: within 6% days ! first quarter and subsequently increase 9%: and
upon on '3: vat.
+C(5&+oreign Correspondent Charge$:
4elow R$3 up to R$3%%! If applicant want to bear the application charge then addition R&3
will be charged.
-1
*elex per telex 9%% taka .4ut if amendment is consider then per amendment 3%% taka and
of courier telex !then it will be '3%% taka
'. Eanding charge tk$%% fixed.
$. Stamp charge-per 5AC 9@% taka
5AC margin- that means cash security ordered by 4angladesh 4ank for industrial items it
is liberal and for luxuries items it is highly cost.
Essential things contain of (,# form:
5AC Fumber
Shipping ?eriod
Importer name and address
IHC "Import Hegistration Certificate#
Qears of renewal
5AC value
Source of financing
8escription of goods
ESC "Earmonious system code.#
)rocessing an$ opening of "ack to "ack (,# proce$ure:
/n exporter serious to have an Import 5AC limit under back to back arrangement. 0ust
have applied to the designed bank in prescribed forms for sanction for opening of back to
back 5AC. In that case the following information is to be furnished by the applicant:
'. ,ull particulars of bank account
$. *ypes of business "?roprietorship! ?artnership! 5td .co.# In case of 5td. Co. 4alance
sheet of last 9 years and the name of directors.
9. Eistorical 4ackground
7. /mount of limit required
3. =oods to be imported Security to be offered
@. Hepayment schedule and source of fund
&. 1ther liabilities of the customer with the bank
N. Statement of assets and liabilities
6. *rade license
'%. Dalid bonded warehouse license
''. 0embership certificate
Other Documents 2ecessary For Import:
5AC *erms
8raft
Invoice
-.
Hecording in the Hegister
Meaning of Export:
Export means lawful carrying out of anything from one country to another country for
sale Export business handled by the ,SI45 during $%%9 stood at $N%& million! showing a
growth 1f 7'.'& percent from *L. '6NN.7 million during $%%$. In $%%3 witch exports are
happened 4y ,SI45 at 8ilkusha branch! those are given below:
*o become an exporter an EHC "exporter Hegistration Certificate# must be obedient from
the office of CCI ; E.
Ta"le: Export performance from Ban+$%'' to aug+$%'' at /bderkilla branch 4ranch
Definition of Exporter:
*he importers and exporters trade of the country is regulated by the importers Exporters
control act '63%. Fo person A firm is allowed to export any thing from 4angladesh unless
he is registered with CCI and E under the registration order "Importer and Exporter# '63$.
*o become an exporter an EHC "exporter Hegistration Certificate# must be obedient from
the office of CCI ; E.
)roce$ure for Maintaining Export 'egistration #ertificate *E'#+:
,or obedient Export Hegistration Certificate "EHC#! intending 4angladesh Exporters are
required to apply to the CCI ; E authority in the prescribed from along with the following
documents:
Fationality Certificate
Copy of valid *rade 5icense
Income *ax Certificate
4ank certificate
Copy of rent receipt of the business firm
Hegistered partnership deep in case of partnership concerns
0emorandum of articles ; association and incorporation certificate in
0onth /mount in us R /mount in 48 */L/
Canuary '&7!777.&9 '%6N6N$N.66 ,ebruary 9N$!99@.&%
$99$$39N.& 0arch 9$9!%&6.63 $%$N67$%.N@ /pril
737!&$3!3& $N33@&@3.N 0ay 9'9!N37.39 '6&$3&3&.$'
Cune 7N'!'$@.'7 9%$6N'@%.96 Culy 7$7!79N.&&
$&@67@9%.'$ /ugust $733%&3&.6 T3TA2
:-;<.=;>.9%96 ,>7;6-9;>7<%<9
--
1n satisfaction of the CCI ; E the potential exporter is advised to deposit export
registration fee of *L.'! %%% A- through treasure chalan to 4angladesh bank A sonali bank
for enabling them to issue EHC. *he EHC may be renewed every year on payment of
renewal fee of *L.'! %%%A- through treasury chalan as started.
Different Types of Export:
*here are three types of export. *hose are given below:
Export under 5AC
Consignment basis export
Export against advancement payment
()port under 2/C:
Exporters are allowed to export the commodity under irrevocable letter of credit. >nder
this type of export! exporter will ship the goods as pr terms of the credit and will get
payment as per arrangement as arrangement of the credit.
Consignment "asis e)port:
Exports are allowed against firm contract. /s per contract! importer will ship the goods
and the buyer will make payment after selling the consignment.
()port against advancement pament:
Sometimes exporter receives payment in advanced. In that case /uthori)ed dealer
should obtain a declaration from the exporter on the
3eneral 'ules for Export:
*here are rules! which are mandatory for export of any goods form 4angladesh. *he rules
are under:
'. Fo person can export any goods from 4angladesh unless he is duly registered as an
exporter with the CCI ; E.
$. /ll export must be declared on the on the ET? form! which is consisting of 7 copies.
9. Export much is against any of the following:
a. Export 5AC.
b. ,irm Contract
c. /dvance ?ayment.
'. *ransport documents related to land route or sea and any other /uthori)ed 8ealer.
*he /irway 4ill /nd /ny 1ther documents of title to car 7 go may be drawn to the order of
a bank in the country of import. Eowever in case of advance payment transport document
may be drawn to the order of ,oreign Import 4ank endorsement of transport documents is
prohibited 8irections under SI. Fo shall not apply in the following casesM
$. Export of *rade sample
9. ?ersonal Effects.
7. =oods Shipped under the order of =ovt .
-2
3. Export of fresh fish vegetable and fruits.
@. =ift package for less than *k.3%A-
&. ET?. must be submitted to the 4ank by the exported and 4ank will submit the
8uplicate Copy to the 4angladesh 4ank within '7 days from the date of shipment.
N. ?ayment for goods exported should be received through an authori)ed dealer in freely
convertible currency.
6. Export proceeds must be received by the export within 7 months.
1,+ 1verdue export bills statement to 4angladesh 4ank should be submitted by the '3
th
of
the month following quarter to which it relates.
'. In case of short shipment exporter should give a notice of short shipment ofAn the
prescribed from in duplicate the prescribed from in duplicate the customs who will forward
a Certified copy of the notice to the 4angladesh 4ank.
Stages 4 Mechanism of Export:
*here are some stages and mechanism of export. *hose are given bellow:
Exporter will make the goods ready for shipment.
/rrangements have to be taken for inspection of goods by the competent authority as
per credit terms.
Exporter will declare on ET? form against export 5AC firm contract Aadvance payment.
Exporters have to arrange approval for export from custom authority on ET? from by
submitting export 5AC! export permission from CCI ; E.
/fter completion of custom formalities! shipping company will receive the goods and
will issue 4.5.
Export Document #hecking:
/fter submission of export document by the exporter! ,SI45 must check! whether the
entire required document submitted or not. ,SI45 must examine all document stipulated
in the credit with reasonable care to ascertain or not they appear! on their face to be in
compliance with the term and condition of the credit .8ocument not stipulated in the credit
will not be examined by the ,SI45. *o examine document ,SI45 must follow the 5.C term
and international 4anking practice. Some Common discrepancies in export document:
'. 5ate presentation
$. ?art shipmen effected
9. ConsigneeAFotify party differs
7. ,. CH presented instead of 4A5
3. 4A5 shows <freight collect <instead freight prepaid
@. 4A5 is clause
&. 8escription of goods differs
N. >nit price differs
6. ?er shipment inspection certificate absent
'%. 5ate shipment
Export Financing:
-@
*o meet up the cost of goods to be exported! the exporter may require 4ank finance.
4esides! he may require finance for go down rent! freight etc. Even after shipment of the
goods! exporter may require 4ank finance to meet-up his expenditure up o repatriation of
the export proceeds. *here are two type of export finance:
?re-shipment finance
?ost -shipment finance
Pre5shipment finance:
?er-shipment investment is finance! allowed by a 4ank to an exporter! to meet the cost
up to shipment of the goods to overseas buyer. *he purpose of the investment is to
purchase raw materials or finished goods or manufacturing processing! packing and
transporting the goods.
Post5shipment finance:
*here is time gape between exports of the goods and reali)ation of the proceeds. So
exporter may require finance in that period to continue his business. So 4ank may
finance against export document ensuring the following:
Export document comply the credit terms.
4uyer is 4ona-fide.
?arties past performance is satisfactory.
/ny other security in case of export under contract.
Security of )re5Shipment Investment:
Security of pre-shipment investment is given bellow:
,SI45 will mark on the related export 5AC.
,SI45 will finance against having sufficient time to procure the goods for export.
,inance to be after arrival of the imported raw materials under 4ack to 4ack 5AC.
,SI45 will supervise the production from time to time ensure export of the goods in
time.
,SI45 will adBust the liability proportionately from related export documents.
E6) 'e7uirement:
/ll export from 4angladesh must be declared by the shipper on ET? form to the ,SI45
enabling them to submit the duplicate within '7 days from date of shipment. *he shipper
is required to repatriate the export proceeds within 7 months from the date of shipment
otherwise penalty is imposed upon them / careful watch is to be ensure that the sale
proceeds are received on due date. / due date diary must be maintained to pursue the
individual case.
-D
Inspection of 3oo$s:
*he goods should be kept ready for inspection of the competent authorities and issue a
certificate of quality control required under regulation: for example:
Export promotion 4ureau.
Custom /uthorities who will inspect the goods under Sea customs /ct.
Chamber of commerce and industry.
1ther agencies authori)ed to inspect the goods before shipment.
Sen$ shipping a$vice:
1n shipment of goods and receipt of bill of lading and other documents from the clearing
and forwarding agents send a shipping advice to the importer abroad so that the latter
may stand making arrangement for taking delivery of the consignment.
Shipping 'e7uirement of Exporter in the #ontext of Export:
Every exporter under foes certain sequential formalities when takes up the venture of
exporting goods ,irst of all the exporter comes into contact with the buyer and negotiate
the commodity contract! while negating the commodity contract and exporter takes into
consideration three resects:
/ Cost of the commodity
Insurance.
,reight component
'e7uire$ Documents ,)apers of (,# Stipulation:
*here are different documents and papers of stipulation are given bellow:
Commercial invoice
Certificate of origin
Fegotiable bill of lading
?re-shipment inspection certificate.
Guantity and Guality certificate.
,umigation certificate depending the nature of cargo
?hoto sanitary certificate depending the nature of cargo
Sen$ing Export $ocument on #ollection:
If the documents are discrepant exporters 4ank will send the document to the issuing
4ank on collection! at the request a risk of the exporter. /t the time of sending documents
on collection the following voucher to passed.
8r. outward foreign bill lodged /AC
-E
Cr. outward foreign bill lodged /AC
/fter reali)ation of the proceeds! above entries to reserve and the following voucher to be
passed.
8r. I4= /AC I4(U 0id rate "4angladesh 4anks buying rate V** documentary A$#
?arty+s current account
Cr. ?arty+s investment account
Cr. ?arty+s investment income aAc
Cr. Income aAc
Cr.*elex charge
Cr. ,.C held against 4ack to 4ack 5AC
Export Incentives:
*o promote the export business! government has declared some incentives for exporter.
,ollowing are the main incentives as per export policy '66&-$%%$ declared by the ministry
of commerce:
*etention ?uota: Export dared allowed to deep 7%: of their export proceeds to their
,.C /AC It is &.3: in case of export against switch import is higher! proportionately.
Investment Period: Formally export finance! as working capital is allowed for 'N%
days. Fow it has been extended up to $&% days for fro)en foods! tea and leather
Credit Card: Exporters are allowed to get credit cards for business tour.
Investment +acilit: Commercial 4ank may finance for export! up to 6%: of ,14
value of the export 5AC
1o Compensation: Commercial 4ank will not impose compensation on overdue sight
export bill under irrevocable export 5AC.
Dut Dra/ !ac#: *hose exporters! who are not available bonded warehouse facility!
are entitled to get duty draw back facility. *hey will pay the duty to the custom authority at
the time of importing the raw materials and after reali)ation of the export proceeds. *hey
will apply for draw back duty paid earlier authority will pay back the duty.
Dut +ree Capital Machiner: '%%: export oriented industries outside E?W are also
allowed to import capital machinery+s free of duty.
Cash Incentives: 8eemed exporters are allowed $3: cash incentive by 4angladesh
4ank
Stoc# 2ot Disposal: HeBected garments and leather may be sold to local market
paying $%: duty on the imported raw materials.
Meaning of 'emittance:
*he word <Hemittance. originates from the word <remit. which means to transmit moneyA
fund. In banking terminology! the work <remittance means transfer of fund one place to
another. (hen money transferred from one country to another is called <,oreign
Hemittance.
-/
Foreign 'emittance:
*he basic function of this department are outward and inward remittance of foreign
exchange from one country to another country. In the process of providing this remittance
servicesM it sells and buys foreign currency. *he conversion of one currency into another
takes place at an agreed rate of exchange in where the banker quotes! one for buying
and another for selling. In such transactions the foreign currencies are like any other
commodities offered for sales and purchase! the cost "convention value# being paid by
the buyer in home currency! the legal tender
Function of the 'emittance Section:
Eandling of all incoming and outgoing foreign and local remittance is the maBor
,unction for this department.
Eandling of incoming and outgoing *.*.
1utstation Cheque Collection.
1utstation Cheque ?urchase.
8emand 8raft Eandling.
1ther assorted work
'emittance of Fun$
Hemittance of fund is to be collected in two ways. ,irst of all! it comes from inward basis
and then! it happens outward.
8/9 In!ar$ remittance
/ny person can remit funds to another through Inland remittance by using the following
means of remitting funds with charges
?ay 1rder "?1#.
8emand 8raft "88#.
*elegraphic *ransfer "*.*#.
0ail *ransfers
)ay Or$er *)O+
/ pay order is a written under! issued by a branch of the 4ank! to pay a certain sum of
money to a specific person or a bank. It may be said as to be a banker+s cheque as it is
issued by a bank and payable by itself.

Deman$ Draft *DD+
*his is an instrument through which customers money is remitted to another
personA,irmAorgani)ation in outstation "outside the clearing house area# form a branch of
2,
one 4ank to an outstation branch of the same 4ank or to a branch of another 4ank "with
prior arrangement between that 4ank with the issuing branch#.
Telegraphic Transfer *TT+:
/ *elegraphic *ransfer is a method of remittance! which is effected by the banker through
a coded telegram attested by secret cheek signal! on receipt of which! the paying office
pay the amount to the payee by crediting his account.
Foreign 'emittance:
,oreign remittance is the transfer of foreign currency from one country to another country.
In another word! foreign remittance means! remittance in foreign currency that are
received in and made out abroad. /ctually! foreign remittance is purchase and sale of
freely convertible foreign currencies as permissible under exchange control regulations of
the country. ,oreign remittance is very important for the country as valuable foreign
exchange is involved in the transfer mechanism. ,oreign remittance takes place in two
ways-
+I@A*(: Modes 3f +oreign *emittance
Instruments of Foreign 'emittance:
Cash for : 8ollar! pound! ,rance ,r. Hiyal or any other currency.
T%C% : *ravelers cheque.
+%D%D : ,oreign demand draft.
T%T : *elegraphic *ransfer! cable transfer or swift transfer.
M%T : 0ail *ransfer.
I% M3 : International 0oney order.
Che0ue : 4y any person ; institution.
P%3 : ?ayment order.
In!ar$ 'emittance:
Hemittance comes from foreign countries to our country is called inward remittance. *o
the bankers or /8s inward remittance means purchase of foreign currency by authori)ed
dealers. =enerally! inward remittances are received by draft! mail transfer! **! purchase
of foreign bills ; travelers Cheque! export bills. 4asically! these are the formal channels of
receiving inward remittance. / local bank also receives indenting commission of local firm
also comes under purview of inward remittance.
21
Out!ar$ 'emittance:
Hemittance from our country to foreign countries is called outward foreign remittance. 1n
the other word! sales of foreign currency by the authori)ed dealer or formal channels may
be addressed as outward remittance. *he authori)ed 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. 1ut ward remittance may be made by appropriate
method to the country to which remittance is authori)ed. 0ost outward remittance is
approved by the authori)ed dealer on behalf of 4angladesh 4ank. 1utward remittance
may be made for following purposes -
*ravel
0edical treatment
Educational purpose
/ttending seminar etc.
4alance amount of ,.C account.
?rofit of foreign companies.
*echnical assistance
Few exporters up to >S8 @!%%%A- for business promotion
,.C. remittance can be made for fare! exhibition from export retention quota.
21
!-apter: 2
!ustomer ser)ice in First Security
islami Ban, Limited
2.
!ustomer ser)ice
Customer ser4ice is the ser4ice pro4ided in support of a companyAs Core Product+
Customer Ser4ice most often includes ans8erin! 9uestion0 takin! orders0 dealin! 8ith
billin! issue0 handlin! complaints0 and perhaps schedulin! maintenance+ Customer
ser4ice can occur on site0 or it can occur o4er the phone or 4ia the internet+ "any
companies operate Customer ser4ice call centers0 often staffed around the clock+
Typically there is no char!e for customer Ser4ice+ Luality Customer Ser4ice is essential
to buildin! Customer relationships+ It should not0 ho8e4er0 be confused 8ith the ser4ice
pro4ided for sale by a company+
The success of Customer Ser4ice is the Customer Satisfaction+ It depends on the
productAs actual performance relati4e to a buyerAs e>pectations+ # Customer mi!ht
e>perience 4arious de!ree of satisfaction+ If the productAs performance falls short of
e>pectations0 the Customer is satisfied+ It performance e>ceeds e>pectationsB the
customer is hi!hly satisfied or deli!hted+
Customer Ser4ice of a company has to ha4e the Responsi4eness0 8hich means the
8illin!ness to help customers and to pro4ide prompt ser4ice+ This dimension emphasi?es
attenti4eness and promptness in dealin! 8ith Customer re9uest0 9uestion0 complaints0 and
problems+
Responsi4eness is communicated on customer by the len!th of time they ha4e to 8ait for
assistance0 ans8er to 9uestion0 or attention to problems+ Responsi4eness also capture the
notion of fle>ibility and customi?es the Ser4ice to customer needs+
!ustomers Ser)ice in .an,in* Business
Customer ser4ice in bank may be !rossly cate!ori?ed into deposit ser4ices0 and credit
ser4ices+ CustomersA ser4ices !enerally means takin! deposit on money from customers0
!i4in! loans and ad4ances to the customers and 4arious #ncillary ( Balance Sheet
Ser4ice'+ These acti4ities re9uire an arran!ement of ser4ice process+ Branch e>pansion0
Sur4ey of economic en4ironment0 location of deposit potential0 identification of credit
needs0 and collect information about tar!et markets+ #ccordin!ly0 banks make
arran!ement to deli4er their ser4ices to the potential customers in terms of acceptance0
2-
Sanction0 #d4ances0 Commitment0 Transfers0 and Remittance0 Openin! of letter of credit
(5CC'0 =>port ocuments <andlin! Bills Collections and many Other Ser4ices+
!ustomer Ser)ices in First Security islami Ban,
5ike some other Banks FSIB5 has also some Ser4ices that it pro4ides its potential
customers+ *ational Bank 5imited usually pro4ides t8o types of ser4ices)
!orporate Ban,in* Ser)ice:
FSIB5 is reco!ni?ed as the !ood financial institution in corporate finance ser4ices sector
in our country+ Its professional mana!ement team caters to the needs of its clients and
pro4ides them 8ith a 8ide ran!e of financial ser4ices some of 8hich are pro%ect
financin! and in4estment consultancy0 syndicated debt and e9uity0 bond and !uaranties0
local and international treasury products+
Institutional Ban,in*:
The institutional ser4ice pro4ided by FSIB5 is desi!ned for different fund based
or!ani?ation like donor a!encies0 *;Os0 4oluntary or!ani?ations0 forei!n missions0
airlines0 shippin! lines and their personnel 8ith the facilities0 8hich are freely con4ertible
to ma%or international currencies0 local and forei!n currency remittances throu!h a lar!e
net8ork of branches and correspondence+
!ommercial Ban,in*:
FSIB5 offers different commercial bankin! facilities to all commercial concerns specially
those 8ith particular in4ol4ement 8ith import and e>port finance+ It pro4ides the finance
facilities like3trade finance facilities includin! counselin!0 confirmin! e>port 5CCsB and
issue of import 5CC backed by its correspondent net8ork0 it also pro4ides bonds and
!uarantees0 in4estment ad4ice0 leasin! facilities0 pro%ect finance opportunities?
22
Buasi9&o)ernment Ban,in*:
The 9uasi !o4ernment ser4ice of FSIB5 helps the !o4ernment by pro4idin! different
financial ser4ice like efficient and kno8led!eable mana!ement of trade business ( import
and e>port'0 skills in barter0 s8aps and counter trade deals+ In addition0 the opportunity of
debenture finance for ne8 pro%ects0 possibilities of hard currency loans and lease deals0
the opportunity of syndicated hard currency0 financin! of loans and import 5CC0 hi!hly
efficient account mana!ement and remittance handlin! 8ithin the country+
Ser)ices of t-e Ban,
!redit !ard
T-rou*- its !redit !ard+ FSIBL Ban, Limited -as not only initiated a ne3
sc-eme .ut also .rou*-t a ne3 life style concept in Ban*lades-? No3 t-e
dan*ers and t-e 3orries of carryin* cas- money are memories of t-e past?
!redit !ard comes in .ot- local and international forms+ *i)in* t-e client
po3er to .uy all o)er t-e (orld? No3 en8oy t-e con)eniences and ad)anta*es
of !redit !ard as you step into t-e ne3 millennium?
FSIBL AT Ser)ice
FSIBL Ban, Limited -as introduced AT ser)ice to its !ustomers? T-e card
3ill ena.le to sa)e our )alued customers from any ,ind of predicament in
emer*ency situation and time consumin* formalities? FSIBL AT !ard 3ill
*i)e our distin*uis-ed !lients t-e opportunity to 3it-dra3 cas- at any time+
e)en in -olidays+ 02 -ours a day+ < days a 3ee,?
(estern "nion oney Transfer
8oinin* 3it- t-e 3orldCs lar*est money transfer ser)ice D(estern "nionD+
FSIBL -as introduced Ban*lades- to t-e faster trac, of money remittance?
No3 money transfer .et3een Ban*lades- and any ot-er part of t-e *lo.e is
safer and faster t-an e)er .efore?
2@
T-is simple transfer system+ .ein* on line eliminates t-e comple5 process and
ma,es it easy and con)enient for .ot- t-e sender and t-e recei)er? T-rou*-
FSIBL 9 (estern "nion oney Transfer Ser)ice+ your money 3ill reac- its
destination 3it-in a fe3 minutes?
(estern "nion is a *lo.al leader in oney transfer and messa*e ser)ices?
(it- t-e -elp of 3estern "nion a consumer or a Businessman can transfer
money or ma,e payments more Euic,ly and more securely from one part to
anot-er part of t-e 3orld? T-ere are /+ /<+=== (estern "nion A*ent
Locations o)er /@4 countries in t-e 3orld? ItFs t-e lar*est net3or, in t-e
3orld? (estern "nion mar,ets transact more t-an one Euarter Billion money
e)ery year?
The procedures of Transfer "oney throu!h $estern (nion)
In our Branc-+ 3e ta,e one of t-e follo3in* document as a #alid ID .efore
t-e payment of 3estern "nion?
i7 P-otocopy of /
st
t-ree pa*es of #alid Passport? In case of rene3al+ t-e
p-otocopy of rene3al pa*e 3ill .e added?
ii7 Nationality !ertificate 3it- P-oto*rap- from
!-airmanG!ommissionerGP? T-e said person 3ill )erify t-e si*nature
p-oto*rap- of t-e applicant?
iii7 Ban,Fs !ertificate 3it- p-oto*rap- AGc aintainin* 3it- t-e Ban,?
T-e Aut-ori>ed OfficerGBranc- in !-ar*e 3ill )erify t-e si*nature H
p-oto*rap- of t-e applicant?
i)7 Any AGc %older of our Branc-? In t-is case 3e 3ill use t-e AGc Num.er
as ID
)7 #oter ID?
)i7 Ser)ice ID 6In case of reputed ser)ice -older7
Issuance of 0 TT & PO+
T-is Ban, offers DD+ TT H PO for transferrin* t-e funds from one place to
anot-er to our !ustomer? It is !alled Inland Remittance? It is one ,ind of
sources of Income of t-e Branc-? Ban, can issue DD+ TT H PO a*ainst cas-
or !-eEue? To issue t-e a.o)e 3e -a)e to follo3 some rules H re*ulations?
2D
/7 Issuance of DD? 6Demand Draft7
DD is a 3ritten order from one .ranc- to anot-er .ranc- of t-e same Ban,?
It is not paya.le to .earer of t-e instrument? In practice+ 3e can not issue DD
.et3een Branc-es 3it-in t-e same city? 3e need to complete t-e follo3in*
steps for issuin* a DD
07 Issuance of TT? 6Tele*rap-ic Transfer7
TT is one ,ind of tele*rap-icGTelep-onic messa*e order to pay some one t-e
fund .et3een t3o Branc-es of t-e same Ban,? It is t-e Euic,est H easiest 3ay
to transfer fund from one place to anot-er place?
T-e c-ar*es for issuin* of DD H TT of our Branc-
DDGTT =?/=I of t-e total DDGTT Amount
Tele5 !-ar*e T,? 2= fi5ed
#AT 0I of !ommission amount
.' Issuance of PO (Pay Order'
PO is a 3ritten order+ issued .y .ranc- of Ban, to pay a certain amount to a
specific person or or*ani>ation? (-ose fa)or 3e issue PO is called Payee?
Some time PO is sold to indi)idual on payment of )alue+ and t-en t-e
indi)idual is called t-e purc-aser? A pay order -as t-ree parts suc- as:
2E
!-apter: 4
Findin*s and Analysis
2/
!ustomer Satisfaction Le)el analysis
Besides e4ery 9uality report some research or analysis is needed+ I tried to analy?e the
9uestionnaire throu!h 9uestionnaire and ;raph in order to measure the o4er all ser4ice
condition deli4ered by the customer ser4ice of the bank+ The methodolo!y by 8hich the
8hole sur4ey is analy?ed 8as 4ery simple and in some 9uestion I follo8 5ikert Scale for
perfection of the analysis+ I also tried to represent the 9uestionnaire throu!h Chart
ia!ram+ Basically I tried to formulate the 9uestions such a 8ay that the analysis can
sho8 the o4er all ser4ice condition and the satisfaction le4el of the customers+ The first
fourteen 9uestions are actually about the o4erall performance of the customer care
Commercial Bank of *ational Bank 5td+
/? T-e first Euestion is J%o3 did you come to ,no3 a.out FSIBL Ltd?K
The sources are sho8n in the table)
*e8spaper Staff of the
Bank
Relati4es Business
"a!a?ines
Others
1-M 1.M 1,M 11M -1M
Table31
So from this analysis I found that -1M people came to kno8 about this bank from
e>ternal source+ The marketin! structure of the FSIB5 5td+ !oes 4ery defensi4e mode+
Only 1-M customers of 1,, are concern about FSIB5 by their publicity+ So I think that
the FSIB5 should concentrate more on their ad4ertisin! at different media+
@,
Fi!) ;raphical Representation of Table31
0? T-e second Euestion of t-is part is 3-y t-e customers maintainin* accounts 3it-
t-e Ban,K
Better
Customer
Ser4ice
Trustful Than
Other Bank
;ood 5i9uidity <i!her Interest
Rate
Other Facility
22M 1,M .M DM 12M
Table31
From the table 1 I found that the customers are satisfied 8ith the customer ser4ice of the
FSIB5+ For this basis they are maintained their accounts 8ith this bank+ But as an intern I
found that some customers are not happy 8ith the interest rate of the bank+ If FSIB5
up!rade all factors concernin! the table then definitely deposit !ro8th 8ill take place
rapidly+
@1
Fi!) ;raphical Representation of Table31
1? T-e t-ird Euestions of t-is part is+ (-at types of account you are maintainin*
3it- t-is .an,K
Sa4in! #ccount Current
#ccount
Fi>ed #ccount Forei!n
#ccount
Other Type of
#ccount
-1M 1-M 1,M 2M /M
Table3.
;enerally First Security Islami Bank 5td+ is the reno8ned commercial bank in
Ban!ladesh+ The customers of this bank are mainly maintainin! sa4in! account for its
smart interest rate and 8ithdra8al facilities+ But there are other customers like dealersB
business personAs opens current account0 fi>ed deposit and forei!n accounts+ Students can
easily apply for forei!n remittance 8ith the help of the bank+ So in this sense sa4in!
accounts are more famous for its customers+
@1
Fi!) ;raphical Representation of Table3.
2? T-e fort- Euestion is 3-at are t-e ser)ices t-at customers en8oyin* from t-is
.an,K
"aintainin!
eposit
#ccount
Remittance
Facilities
Corporate
Bankin!
Facilities
Personal
loan and
ser4ice
Other
@2M 12M 1,M .M DM
Ta.le92
Table sho8s that customers en%oy mostly by maintainin! deposit accounts 8ith the help
of the customer care ser4ice+ The success of the customer care ser4ice is better
comparable to the other ser4ice pro4ided by this bank+ #s an intern I found that
remittance ser4ice is !ro8in! rapidly make its o8n customers+ But people 8ant to !et
personal loans that FSIB5 does not offer for all customers+ The corporate client seems
!ood position+ So this bank should focus more throu!h its customer care ser4ice+
@.
Fi!) ;raphical Representation of Table3-
4? T-e fift- Euestion is 3-at ,ind of ser)ice customer *ets from customer careK
=>cellent ;ood #4era!e Satisfactory issatisfactory
-2M 1.M EM 1,M -M
Ta.le94
This 9uestionnaire is truly focused on customer care+ So it is mandatory to kno8 the
satisfaction of its customers+ Out of 1,, people -2M people rate customer ser4ice
e>cellent+ The response is !ood enou!h to mention that FSIB5 5td+ focuses that their
interest is al8ays their customers+ Only -M of 1,, people sho8 dissatisfactory 8hich
FSIB5 tries hardly to o4ercome+
@-
Fi!) ;raphical Representation of Table32
:? T-e si5t- Euestion is 3-at ,ind of ser)ice it pro)ides t-an ot-er Ban,sK
Fery ;ood ;ood #4era!e Bad Fery Bad
.1M -,M 12M DM 1M
Table3@
Table sho8s that FSIB5+ ser4ice is ;ood compare to the other banks in Ban!ladesh+ For
8ider ser4ice it increases its branches across the country+ The ne8est facilities are added
day by day 8ith proper care+ "ost importantly the bank has its o8n corporate client
8hich is 4ery important no8 a day+
@2
Fi!) ;raphical Representation of Table3@
<? Do you t-in, t-at t-e fees and ser)ice c-ar*es are -i*- compara.le t-an ot-er
.an,K
Stron!ly
#!ree
#!ree *either #!ree *or
isa!ree
isa!ree Stron!ly
isa!ree
@M /M 1,M 1/ -@M
Table3D
The ser4ice char!es are lo8 than other banks+ Out of 1,, only -@M person people belie4e
that FSIB5 cuts reasonable ser4ice char!es compare to the other banks+ "ost importantly
it sometimes allo8s minimum char!es to its respecti4e client+ So thou!h its ser4ice is
e>cellent but its ser4ice char!e is 4ery lo8+
@@
Fi!) ;raphical Representation of Table3D
Buestion no @ )ie3s of t-e customer a.out t-e .e-a)ior of t-e !ustomer !areK
=>cellent ;ood #4era!e Satisfactory issatisfactory
2-M 12M 1M 1.M @M

Table3E
Out of 1,, 2-M people belie4es that the beha4ior of customer care is e>cellent+ It offers
online bankin! facilities for its customers+ Only @M people are dissatisfied by the
customer care for their internal purpose+ But most important is that it lists all complain to
its mind for furthest correction+
@D
Fi!) ;raphical Representation of Table3E
Buestion no ; focuses to its customers t-at do t-ey t-in, First Security islami Ban,
Ltd? -as a 3onderful internal en)ironment to deli)er t-e customer ser)iceK
Stron!ly a!ree a!ree *either a!ree
nor disa!ree
disa!ree Stron!ly
disa!ree
1,M @,M 1-M 2M 1M
Table3/
#lthou!h l Bank concerns for its customers0 it maintain a 9uality internal and e>ternal
en4ironment for its customers+ The system is !ood+ #l8ays there is a friendly atmosphere
is 8aitin! for its customers+@,M people a!rees 8ith this+ The bank also tries to impro4e
its Or!ani?ational beha4ior for the customers+
@E
Fi!) ;raphical Representation of Table3/
Buestion no /= reEuest t-e customer to *i)e t-eir )ie3 a.out pro.lems and its
Euic,ly resol)in* .y t-e !ustomer ser)ice?
Stron!ly a!ree a!ree *either a!ree nor
disa!ree
isa!ree Stron!ly disa!ree
.,M 21M @M 11M 1M
Table31,
Table no 1, sho8s that out of 1,,0 .,M people stron!ly and 21M is a!ree that their
problems are 9uickly resol4ed by the customer ser4ice of FSIB5+ aily problems are
resol4ed 9uickly by this department+ Thou!h it has different 8ork loads and 8ork
acti4ities0 it offers supreme ser4ices to the customers+
@/
Fi!) ;raphical Representation of Table31,
Luestion no 11 in9uire the customer that ho8 satisfied are they 8ith the ser4ice of the
#T" ser4iceN
Stron!ly
Satisfied
Satisfied *either satisfied
nor dissatisfied
issatisfied Stron!ly
dissatisfied
/M .EM 1M -/M 1M
Table311
The only preferable problem in the customer care is The #T" ser4ice+ The customers are
not truly satisfied 8ith their #T" card ser4ice+ In the branch I ha4e discussed 8ith
customers 8ho are dissatisfied and they told me that they found most of the time the
#T" machine is out of order and limited to different area+ But important factor is that it
tries to impro4e 4ast #T" ser4ice to its customers+
D,
Fi!) ;raphical Representation of Table311
Buestion no /0 3ants from t-e customers a.out t-eir ratin* for t-e customer
ser)ice of t-is Ban,K
Fery !ood ;ood *either !ood nor
poor
poor Fery poor
D2M 1.M DM -M 1M
Table311
Out of 1,, people D2M rates 4ery !ood ser4ice and only 2M rates poor+ The success of
this bank seems stron! in respect to its customer ser4ice+ It offers 4arious ser4ices to its
different customers and all kinds are 8ell customi?ed for the people+ The clients 8ho are
ne8comers can easily choose their preferable ser4ice+ The ma>imum success for the
customer care is because of this+
D1
Fi!) ;raphical Representation of Table311
Luestion no 1. focused the customers need about further impro4ement of the customer
care+
Stron!ly #!ree #!ree *either #!ree nor
disa!ree
isa!ree Stron!ly isa!ree
11M 21M 12M 1,M .M
Table31-
Table sho8s that 21M people 8ants to impro4e its customer care 8ith multi dimensional
acti4ies+*o8 a days customers 8ants more ser4ices 8ith security+ The bank pro4ides
e>cellent ser4ices to its customers+ The clients 8ant to make more account 8ith this bank
for 4arious purposes+ So customers care should come 8ith ne8 features and ne8
multidimensional products and !i4e impro4ed ser4ices+
D1
Fi!) ;raphical Representation of Table31-


D.
Findin*s:
$hile doin! my Internship Pro!ram I could find some problems faced by the
customers+
In case of First Security Islami Bank 5td+ 5imited0 the customer information
9uality is not satisfactory enou!h accordin! to the perceptions of the customers+
5ack of information about the Customer bankin! Ser4ices0 customer usually ha4e
to face hesitation for the ri!ht information for the ri!ht authori?ed officer+
The accountin! system of !eneral bankin! is not that much efficient and too sho8
ser4er to 8ork+
In case of makin! of 4oucher0 officer has found that sometimes they mistake on
proper 4oucher 8ritin! and the proper amount+
FSIB5 partially automate their operations0 so many 8orks are still done by
manually+ On the other hand0 most of the banks automate 8hole acti4ities0 8hich
make their 8ork easier and faster+
Some customers do not understand ho8 to fill up the accountAs openin! form+
Refusin! to pro4ide introducer or photo for openin! accounts+
Che9ues0 deposit slips are not 8ritten properly and for that reason it is 9uite
fre9uently seen that these instruments are been returned from the clearin!
house+
Some customers are not interested or not able to 8rite ++0 T+T+0 pay order
4oucher+ #nd they also donAt kno8 that Bank must cut some commissions
8hile issuin! the 0 PO0 TT0 etc+
Sometime customers miss beha4e 8ith the employees and stuffs
5ack of education and of ade9uate kno8led!e of !eneral bankin! peoples in
our country are not interested in in4ol4in! Bank acti4ities+
D-
Customers are not satisfied 8ith the #T" ser4ices of the Bank+ "ost of the
cases the machine is out of order and the technicians are not a4ailable+

S(OT Analysis
T-e acronym for S(OT stands for:
Stren!th
$eakness
Opportunity
Threat
The S$OT analysis comprises of the or!ani?ationAs internal stren!th and 8eakness and
e>ternal opportunities and threats+ S$OT analysis !i4es an or!ani?ation an insi!ht of
8hat they can do in future and ho8 they can compete 8ith their e>istin! competitors+
This tool is 4ery important to identify the current position of the or!ani?ation relati4e to
other0 8ho are playin! in the same field and also used in the strate!ic analysis of the
or!ani?ation+
*tren#th
#ccountable corporate !o4ernance
=>perienced top mana!ement
;ood asset 9uality
In Ban!ladesh FSIB5 has 8ide ran!e of customer base on is operatin! efficiently
in this country
FSIB5 has a bulk of 9ualified0 e>perienced and dedicated human resources
FSIB5 has the reputation has bein! the pro4ider of !ood 9uality ser4ice to its
potential customer
FSIB5 recently pro4idin! #T" facility to the customer+ This is 8ill make a !ood
stren!th of FSIB5 +
Satisfactory business !ro8th
i4ersified product lines
;ood operatin! efficiency
Social 8elfare
D2
+ea!nesses
ependent of fi>ed deposits
"oderate risk mana!ement system
5imited dele!ation of po8er
"IS at primary sta!e
5imited branch net8ork
5imited market share
Opportunities
raft dra8in! arran!ement of ma%or banks
#T"0 POS and other forms of #lternate deli4ery channels
Product based on needs of *RBAs
Increasin! ser4ice 9uality and a8areness amon! *B5 staff throu!h trainin!
S"= and a!ro based business
Real time on line bankin!
Credit card in duel currency
Basel3II compliances to tap ad4anta!es from R" system+
Threats
ifferent ser4ices of FCBAS ( phone bankin!Chome bankin!'
=>istin! card ser4ices of standard chartered !rind lays bank
aily basis interest on deposit offered by Brac Bank
=ntrance of ne8 PCBAS increased competition in the market
"arket pressure for increasin! the S5R
"arket pressure for dollar crisis
Political interference and !o4ernment re!ulation
(nstable political en4ironment of the country
"ore banks are enterin! into the remittance business
D@
"ore number of branches of other banks ha4e commenced business as outlets for
$estern (nion
Pri4ati?ation of !o4ernment banks resultin! in discontinuation of TT arran!ement
due to conflict of business
Rate 8ar 8ith Sonali0 IFIC0 (ttara0 and bank #sia resultin! in lo8er e>chan!e
a!ain+

)ecommendation:
Recommendation of these reports has been made on basis of the research findin!s of the
o4erall bankin! of national bank limited+ $ith my little e>perience in bank0 I obser4ed
and find out some aspect of their bankin!+ On the basis of my obser4ation I 8ould like to
recommend the follo8in! recommendation)
"ana!ement should focus more on 9uick ser4ice0 empathy0 duration of loan
repayment0 card issues and loan processin! time to ensure o4erall customer
satisfaction0 as this has been statistically pro4en+
The bank has to increase their ad4ertisement and also increase their social acti4ities+
They ha4e to !o 8ith the peopleAs needs and demands+ They ha4e to e>plore their
name to the people that e4ery one can kno8 about FSIB5 5td+
In this time there is so much competition bet8een each other that a sin!le step can
chan!e the all direction+ TodayAs people are 4ery much 8illin! to do bankin!0 8hich
one is near to them+ So if the number of branches 8ill not increases than it can lose
the customer+
Continuous monitorin! & e4aluation on application of internal & e>ternal control
system0 audit policy0 policy of financial risks0 e>istin! rules & re!ulation (internal &
e>ternal'0 and International Financial Reportin! Standards (IFRSs' and Ban!ladesh
Bank rele4ant circulars ha4e been follo8ed+
Bankin! is a ser4ice3oriented marketin!+ Its business profit depends on its ser4ice
9uality+ ThatAs 8hy the authority al8ays should be a8are about their ser4ice 9uality+
DD
=mployees must !i4e indi4idual attention to consumer and efficiency should be
ensured+
Customer ser4ice should be pleasant and prompt+
Speed in !eneral bankin! acti4ities and made 9uick
Product of ;eneral bankin! acti4ities should be increased and customi?ed 8ith
customerAs preference+
"ore officer need to be employed
The bank should adopt more technolo!ical de4ices to pro4ide better ser4ices
*eed to increase the number of #T" booths+
DE
Conclusion:
First Security Islami Bank limited has positi4e ima!e itself as the local banks amon!
third !eneration bank+ Bank is committed to keep up its promise to pro4ide cordial
ser4ices in bakin! to its 4alued customers+ FSIB5 mana!ement has al8ays put special
effort to uphold the interest and trust of their customers+ FSIB5 is initiatin! ne8
products and concentratin! on the consumer demand that is dra8in! a difference
bet8een FSIB5 8ith other third3!eneration banks+
This research has pro4ided some interestin! insi!ht into 8hat kind of ser4ice the
customers !i4e importance to and 8hat 9uality they !et from FSIB5+ It is 9uit ob4ious
from the research that the customers re9uirements are not fully met and they are 4ery
dissatisfied 8ith some of the aspects of the bank (loan interest rate0 different ser4ice
char!es0 con4enience location0 or!ani?ed processin! etc+' a!ain the research rele4ant
that only one third of customers 8here more of less satisfied 8ith the ser4ices of the
bank and more than half of the respondents 8ere on the neutral side of satisfaction
line+ FSIB5 should attract this half and brin! then to the positi4e side of the road so
that stron! relationship 8ith the customers can be maintained+
In order to retain competiti4e ed!e0 in4estment in technolo!y is al8ays a top a!enda
and under constant focus+ Ieepin! the net8ork 8ith in a reasonable limit0 FSIB5
D/
strate!y is to ser4e the customers throu!h capacity buildin!s across multi deli4ery
channels+ They are better placed and poised to take customers throu!h fast chan!in!
times and enable them compete more effecti4ely in the market they operate+
The main purpose of this report is to study 6Customer Satisfaction Of First Security
Islami Bank 5imited7 considerin! all the attributes 8hich influence customers should
be more effecti4e for them+ ue to the si!nificantly important of those factors they
can compete in the market in the near future+

ReferenceGBi.lio*rap-y
National Ban, Limited 6NBL7Fs Brochures0 5eaflets and Operational
"anual+
!ommercial Ban, ana*ement
(2
th
=dition' Peter Rose
Researc- et-odolo*y
(1
nd
=dition' !? R? 'ot-ari
(e. Site of National Ban, Limited 6NBL7
888+nationalbankltd+com
ana*in* !ore Ris,s in Ban,in*
Credit Risk "ana!ement Ban*lades- Ban,
E,
Reports on Ban,s
E1
A APPENDIL PPENDIL
B B"ESTIONNAIRE "ESTIONNAIRE
ear Respondent0 I am a student Premier (ni4ersity0 Chitta!on!0 Ban!ladesh+ I am !oin!
to analy?e the Customer Satisfaction of *ational Bank 5imited of Sk "u%ib road+ This
study is only for use of my academic purpose and the pro4ided information 8ill be
treated confidentially+ Thank you in ad4ance for your kind cooperation+
lease read the !uestions carefully and "ust put a tic# ( O ' in the respecti$e answer and
#indly gi$e your "udgments where necessary%
1+ <o8 do u come to kno8 about *ational Bank 5imitedN
a+ *e8spapers
b+ Staff of the
c+ Relati4es
d+ Business ma!a?ines
c+ Others
1+ $hy the customers maintainin! accounts 8ith *ational BankN
a+ Better customer ser4ice
b+ Trustful than other banks
c+ ;ood li9uidity
d+ <i!her interest rate
e+ Other facility
.+ $hat types of account you are maintainin! 8ith this bankN
a+ Sa4in! account
b+ current account
c+ fi>ed account
E1
d+ Forei!n account
e+ Other type of account
-+ $hat are the ser4ice that customers en%oyin! from this bankN
a+ "aintainin! deposit account
b+ Remittance facilities
c+ Corporate bankin! facilities
d+ Personal loan and ser4ice
e+ Others+
2+ $hat kind of ser4ice customers !et from customer careN
a+ =>cellent
b+ ;ood
c+ #4era!e
d+ Satisfactory
e+ issatisfactory+
@+ $hat kind of ser4ice it pro4ide than other banksN
a+ Fery !ood
b+ ;ood
c+ #4era!e
d+ Bad
e+ Fery bad

D+ o you think that the fees and ser4ice char!es are hi!h comparable than other banksN
a+ Stron!ly a!ree
E.
b+ #!ree
c+ *either a!rees *or disa!rees
d+ isa!ree
e+ Stron!ly isa!ree
E+ Fie8s of the customer about the beha4ior of the customer careN
a+ =>cellent
b+ ;ood
c+ #4era!e
d+ Satisfactory
e+ issatisfactory+
/+ Focuses to its customer that do they think *ational Bank 5td has a 8onderful
international en4ironment to deli4er the customer ser4iceN
a+ Stron!ly a!ree
b+ #!ree
c+ *either a!ree *or disa!ree
d+ isa!ree
e+ stron!ly disa!ree
1,+ Re9uest the customer to !i4e their 4ie8 about problems and its 9uickly resol4in! by
the customer ser4iceN
a+ Stron!ly a!ree
b+ #!ree
c+ *either a!ree *or disa!ree
d+ isa!ree
e+ Stron!ly disa!ree
E-
11+ In9uire the customer that ho8 satisfied are they 8ith the ser4ice of the #T" ser4iceN
a+ Stron!ly satisfied
b+ satisfied
c+ *either satisfied *or satisfied
d+ issatisfied
e+ Stron!ly dissatisfied+
11+ $ants from the customers about their ratin! for the customer ser4ice of this bankN
a+ Fery !ood
b+ ;ood
c+ *either !ood *or poor
d+ Poor
e+ Fery poor+
1.+ Focused the customers need about further impro4ement of the customer careN
a+ Stron!ly a!ree
b+ #!ree
c+ *either a!ree *or a!ree
d+ isa!ree
e+ Stron!ly disa!ree+
E2
E@