Chapter- 01

Introduction

1
1.1 Introduction:
In general sense we mean “Bank” as a financial institution that deals with money. There are
different types of banks like Central bank, Commercial bank, saving bank, Investment bank,
Merchant bank, Co operative bank etc. But when we use the term bank it generally means
‘commercial bank’ that collects the deposit from surplus unit of the society and then lends the
deposits to the deficit units of the society.
The existence of banking sector is not a new matter, as its existence was long years ago. But
the new thing is that how it operates and presenting its activities for the purpose of serving
customer requirements to increase their well being in the sense of wealth. Banks also provide
many services for clients to make easy their life in a busy environment. In this competitive
environment in today’s world, the entire bank increases their facilities in favour of their
customers to retain them and capture more share of the market to be leader. Interest is one of
the main factors in attracting customers and also one of the significant factors in increasing
extra income from providing loans besides other service income. So, it can be said that
conventional banking systems are interest-based system.
Bangladesh is one of the largest Muslim countries of the world. The people of this country
are deeply committed to Islamic way of Life as it is mentioned in the Quran and Sunnah. But
it is not possible for the people to establish and design their economic lives in accordance
with Shariah. The very objective of Shariah is to promote the welfare of the people that lies in
safeguarding their faith, their life, their posterity and their wealth. In this regard to establish a
banking world that run according to Shariah, the concept of Islamic Banking Arise. Its
establishment in Bangladesh on 13th March 1983, named Islamic Bank Bangladesh Limited.
IBBL was followed by several others including Export Import (EXIM) Bank of Bangladesh
Ltd in 1999.
1.2 Background of the Report:
This report was being assigned as a part of the BBA Program. To prepare the report under the
BBA program requirement, I accommodate my internship program in the EXIM Bank
Limited. For the completion of the program, I have already prepared a report. This report is
being formed on the most important issue “Foreign Exchange performance of EXIM Bank
Limited”. The entire report is based on practical experience of EXIM Bank Limited. I have
tried to furnish all the issue that I gathered from through working with EXIM Bank limited.

2
1.3 Objectives of the Report:
Behind this report, there have some objectives, which must have to fulfill. There both have
some general objective and specific objectives.
1.3.1. General Objective:
The main objective of the report will be to provide an overview of the “General Banking
Activities of EXIM Bank Limited - a Study on Zinda Bazar Branch with fulfilling the
requirement of BBA program. However, the objective behind this study is something
broader. Objectives of the report are summarized in the following manner- graduate
1.3.2. Specific Objective:
 To present an overview of EXIM Bank Limited.
 To identify the general banking activities of EXIM Bank Limited.
 To analyze the general banking activities of EXIM Bank Limited.
 To identify problems related to general banking activities of EXIM Bank Limited.
 To make some recommendations to solve the problems of EXIM Bank Limited.

1.4 Scope of the Report:

This report has been prepared through extensive discussion with bank employees and with
the clients. Prospectus provided by the bank also helps to prepare the report. At the time of
preparing the report, I had a great opportunity to have an in depth knowledge of all the
banking activities practiced by the EXIM Bank Limited.
1.5 Origin of the Study:
The internship program is a mandatory requirement for the students who wish to be a B.B.A
graduate. In the internship program, I was attached to host organization name EXPORT
IMPORT (EXIM) BANK LTD. This report prepared on my practical experience on the day
to day banking activities ,theoretical experience and under close supervision of my internal
support as well as my official supervisor.
1.6 Methodology of the Study:
Using both of the two sources – primary and secondary has collected data.

Sources

Primary Secondary

3
1.6.1 The primary sources of data:
 Face to face conversation with the Bank officers and staffs.
 Direct conversation with the clients.
 File study of different sections.
 Deskwork: during my practical orientation I worked in head office and Zinda Bazar
Branch.
 In head office I worked in foreign and credit division. In Zinda Bazar Branch I
worked in the Sections.
1.6.2 The secondary sources of data:
 Annual Report of EXIM Bank of Bangladesh Ltd., 2018.
 Deferment paper of EXIM Bank.
 Unpublished data received from the head office and branch.
 Different text books.
I tried my best to discuss my subject in analytical way. I also have represented some graphs
and tables, which show performance of EXIM Bank Ltd. based on financial data.
To collect necessary information I used questionnaire method, which is shown in the chapter
six. I have given some recommendations to solve the problems of EXIM Bank Ltd. as per my
own thought.
1.6 Limitations of the Study:
This is an individual research work where only one individual researcher needs to undertake
the whole process done alone. In all remain within I failed to escape by any means. These are
as follows:
 Two months time for internship is a pretty short time to acquire in depth knowledge
about all the departments of EXIM Bank Limited.
 To collect information I faced difficulty because of the excessive nature of
confidentiality.
 EXIM Bank is an Islamic bank for that reason I face some problems to understand
their products & facilities they provide. Because some of the rules of the Islamic
banking are different from the general banking rules.
 It requires a lot of assistance from all level officers and stuff but as a bank the officer
was busy in doing their jobs.

4
 Since I was confined by a specific topic and should work on the topic related
department (foreign exchange) but some time I need to worked in different
department so it is not possible to learn hundred percent on that topic.
 The study was limited by the availability of the data.

5
 Chapter- 02
Overview of Banking Industry

6
2.1 Overview of Banking Industry: The Industry Basics
A bank is a financial institution that provides banking and other financial services to their
customers. Banks are a subset of the financial services industry and play an important role in
the global economies. They are a key player in stimulating economic growth. Banking is an
important undertaking. The movement of capital handled by banks allows economies to grow
and prosper. Businesses and governments need money to operate, and banks act as
intermediaries between the suppliers of funds and users of funds.
2.2 The Law of Banking:
Banking law is based on a contractual agreement between the bank and customer. The
customer is any entity for which the bank agrees to conduct an account or business. Given
below are the generally accepted rights and obligations:
 The bank account balance is the financial position between the bank and the
customer: when the account is in credit, the bank owes the balance to the customer;
when the account is overdrawn, the customer owes the balance to the bank.
 The bank agrees to pay the customer's cheques up to the amount standing to the credit
of the customer's account, plus any agreed overdraft limit.
 The bank may not pay from the customer's account without a mandate from the
customer, example cheques drawn by the customer.
 The bank agrees to promptly collect the cheques deposited to the customer's account
as the customer's agent, and to credit the proceeds to the customer's account.
 The bank has a right to combine the customer's accounts, since each account is just an
aspect of the same credit relationship.
 The bank has a lien on cheques deposited to the customer's account, to the extent that
the customer is indebted to the bank.
 The bank must not disclose details of transactions through the customer's account—
unless the customer consents, there is a public duty to disclose, the bank's interests
require it, or the law demands it.
 The bank must not close a customer's account without reasonable notice, since
cheques are outstanding in the ordinary course of business for several days.
These implied contractual terms may be modified by express agreement between the
customer and the bank. The statutes and regulations in force within a particular jurisdiction
may also modify the above terms and/or create new rights, obligations or limitations relevant
to the bank-customer relationship.

7
2.3 Types of Banks: Commercial & Investment Banking:
The banking industry can be divided into two categories ‘commercial-banking’ and
‘investment-banking’. Commercial banks play a key role in the entire financial system by
mobilizing deposits from households spread across the nation and making these funds
available for investment, either by lending or buying securities. Investment Banks on the
other hand, raise capital (cash/money) for companies, which companies need in order to grow
and expand their businesses. Investment banks sell securities to public investors in the form
of stocks or bonds.
Distinctive types of banks are evolving to cater to the various business demands, social needs
and global complexities. These different banking institutions conduct their operations in a
different manner. However, on the basis of their functions, clientele served and products or
services offered, we can classify banks as follows:
 Retail Banks
 Commercial banks
 Investment Banks
 Cooperative banks
 Central banks
 Specialized banks

2.4 Business Model: Customer Profiles:

Banks are large and complex organizations. Their clients range from individuals and
institutions, all the way up to the governments and central banks of entire countries. This
industry builds and maintains financial relationships with variety of customers ranging from
individuals to governments to supply financial products and services. Given below are major
classification of banking customers:
 Individual Consumers
 Small Businesses & Traders
 Farmers & Rural Consumers
 Corporate and Corporations
 Banks – Domestic & International
 Governments
 Institutional Investors
 Non-Profit Organizations

8
  International Clients
2.5 Current Industry Trends:
As a variety of models for cooperation and integration among finance industries have
emerged, some of the traditional distinctions between banks, insurance companies, and
securities firms are fast diminishing. In spite of all these developments, banks continue to
maintain and perform their primary role—accepting deposits and lending funds from these
deposits. During the recent times, technological advances has enabled banks to extend their
reach globally, and there is no longer a need for customers to visit bank’s branches for every
transaction, as most of the transactions can happen online.
The growth in cross-border activities has also increased the demand for banks that can
provide various services across borders to different nationalities. Despite these advances in
cross-border activities, the banking industry is nowhere near as globalized as some other
industries. There is no doubt that “Technology” is going to be catalyst in that growth,
creating huge opportunities for professionals with good understanding of banking industry
domain.
2.6 History of Banking in Bangladesh:
The first modern bank headquartered in Dhaka was Dacca Bank, established in 1846. It did a
very limited business and did not issue banknotes. It was purchased by Bank of Bengal in
1862. Bank of Bengal opened branches in Sirajganj and Chittagong in 1873, and in Chandpur
in 1900. In 1947, upon the Partition of Bengal, it had six branches in East Bengal, in Dhaka,
Chittagong, Chandpur, Mymensingh, Rangpur, and Narayanganj.
In the beginning of 1971, there were 1130 branches of 12 banks in operation in East Pakistan.
The foundation of independent banking system in Bangladesh was laid through the
establishment of the Bangladesh Bank in 1972 by the Presidential Order No. 127of 1972
(which took effect on 16th December,1971). Through the Order, the eastern branch of the
former State Bank of Pakistan at Dhaka was renamed as the Bangladesh Bank as a full-
fledged office of the central bank of Bangladesh and the entire undertaking of the State Bank
of Pakistan in, and in relation to Bangladesh has been delivered to the Bank.

After the independence, banking industry in Bangladesh started its journey with 6
Nationalized commercialized banks, 2 State owned Specialized banks and 3 Foreign Banks.
In the 1980's banking industry achieved significant expansion with the entrance of private
banks.

9
After the liberation of Bangladesh the twelve Banking companies who were doing business in
Bangladesh, were nationalized by the Government of the People’s Republic of Bangladesh
under president’s order No.26 of 1972 entitled “The Bangladesh Bank (Nationalizations)
Order, 1972”on March 26, 1972. These are –
Paid-up
New Bank after Authorized
Existing Bank Capital (Lac
Independence Capital (Lac Tk.)
Tk.)
The National Bank of Sonali Bank 500 200
Pakistan, The Bank of
Behawalpur Ltd.
The Premier Bank Ltd., The Agrani Bank 500 100
Habib Bank Ltd., The
Commerce Bank Ltd.
The United Bank Ltd., The Janata Bank 500 100
Union Bank Ltd.
The Muslim Commercial Rupali Bank 500 100
Bank Ltd., The Standard
Bank Ltd.
The Austrasia Bank Ltd., The Pubali Bank 500 100
Eastern Mercantile Bank Ltd.
The Eastern Banking Uttara Bank 500 100
Corporation Ltd.

There were no domestic private commercial banks in Bangladesh until 1982; When the Arab-
Bangladesh Bank Ltd. commenced private commercial banking in the country. Five more
commercial banks came up in 1983 and initiated a moderate growth in banking financial
institutions. Despite slow growth in number of individual banks, there had been a relatively
higher growth of branches of nationalized commercial banks (NCBs) during 1973-83. There
number had increased from 1512 in 1973-74 to4603 in 1982-83.
2.7 Types of Banks in Bangladesh:
Banking sector of Bangladesh is primarily of two types –
2.7.1 Scheduled Bank
2.7.2 Non-scheduled Bank
2.7.1. A. Scheduled Banks:

The banks which get license to operate under Bank Company Act, 1991 (Amended upto
2013) are termed as Scheduled Banks. State-owned commercial banks, private commercial
banks, Islamic commercial banks, foreign commercial banks and some specialized banks are
Scheduled Bank.
Scheduled Banks are classified into following types:

10
  State Owned Commercial Banks (SOCBs): There are 6 SOCBs which are fully or
majorly owned by the Government of Bangladesh.
 Specialized Banks (SDBs):2 specialized banks are now operating which were
established for specific objectives like agricultural or industrial development. These
banks are also fully or majorly owned by the Government of Bangladesh.
 Private Commercial Banks (PCBs): There are 40 private commercial banks which
are majorly owned by the private entities. PCBs can be categorized into two groups:
 Conventional PCBs:32 conventional PCBs are now operating in the industry. They
perform the banking functions in conventional fashion i.e interest based operations.
 IslamiShariah based PCBs: There are 8 Islami Shariah based PCBs in Bangladesh
and they execute banking activities according to Islami Shariah based principles i.e.
Profit-Loss Sharing (PLS) mode.
 Foreign Commercial Banks (FCBs): 9FCBs are operating in Bangladesh as the
branches of the banks which are incorporated in abroad.
2.7.2. B Non-Scheduled Banks:
The banks which are established for special and definite objective and operate under the acts
that are enacted for meeting up those objectives, are termed as Non-Scheduled Banks. These
banks cannot perform all functions of scheduled banks.
Grameen Bank, Probashi Kallyan Bank, Karmasangsthan Bank, Progoti Co-operative Land
Development Bank Limited (Progoti Bank) and Answer VDP Unnayan Bank are Non-
Scheduled Bank.
There are now 6 non-scheduled banks in Bangladesh which are:
 Ansar VDP Unnayan Bank,
 Karmashangosthan Bank,
 Grameen Bank,
 Jubilee Bank,
 Probashi Kollyan Bank,
 Palli Sanchay Bank

11
2.8 List of Banks in Bangladesh:
The following table contents the list of existing and running banks in Bangladesh –

Scheduled Banks
A. Central Bank

Bangladesh Bank Commenced on 1972

B. State Owned Commercial Banks

Banks Established

1. Agrani Bank Limited 26 March 1972

2. Janata Bank Limited By Bank Nationalisation Ordinance of 1972

3. Rupali Bank Limited By Bank Nationalisation Ordinance of 1972

4. Sonali Bank Limited By Bank Nationalisation Ordinance of 1972

5. Bangladesh Development Bank On 16 November, 2009 by amalgamation

Limited of Bangladesh Shilpa Bank (BSB) and
Bangladesh ShilpaRinSangstha (BSRS)

6. BASIC Bank Limited 21 January, 1989

C. State Owned Specialized Banks

1. Bangladesh Krishi Bank 1973

2. RajshahiKrishiUnnayan Bank 15 March 1987 (President's Ordinance No.

(RAKUB) 58 of 1986)

D. Private Commercial Banks (PCBs):

I. Conventional PCBs

1. AB Bank Limited 12 April, 1982

2. Bangladesh Commerce Bank Limited 16 Sep, 1999

3. Bank Asia Limited 27 November, 1999

4. BRAC Bank Limited 4 July, 2001

12
5. City Bank Limited 27 March, 1983

6. Dhaka Bank Limited 5 July, 1995

7. Dutch-Bangla Bank Limited 3 June, 1996

8. Eastern Bank Limited 1992

9. IFIC Bank Limited 1976

10. Jamuna Bank Limited 3 June, 2001

11. Meghna Bank Limited 21 April, 2013

12. Mercantile Bank Limited 2 June 1999

13. Midland Bank 9 April, 2013

14. Modhumoti Bank Limited 19 September, 2013

15. Mutual Trust Bank Limited 24 October, 1999

16. National Bank Limited 28 March, 1983

17. National Credit & Commerce Bank Limited In 1993 as commercial bank

18. NRB Bank Limited 2013

19. NRB Commercial Bank Limited 2013

20. NRB Global Bank Limited 2013

21. One Bank Limited May, 1999

22. Premier Bank Limited 10 June, 1999

23. Prime Bank Limited 17 April, 1995

By Bank Nationalisation Ordinance

24. Pubali Bank Limited of 1972; denationalized in the year
1983

25. South Bangla Agriculture & Commerce Bank 25 March, 2013

Limited

26. Southeast Bank Limited March, 1995

27. Standard Bank Limited 3 June, 1999

13
28. The Farmers Bank Limited 11 September, 2012

29. Trust Bank Limited 1999

30. United Commercial Bank Limited 1983

31. Uttara Bank Limited By Bank Nationalisation Ordinance

of 1972; denationalized in the year
1983

32. Shimanto Bank Ltd 21 July, 2016

II. IslamiShariah based PCBs

1. Al-ArafahIslami Bank Limited 27 September, 1995

2. EXIM Bank Limited 3 August, 1999

3. First Security Islami Bank Limited August 29, 1999

4. ICB Islamic Bank Limited April, 1987

5. Islami Bank Bangladesh Limited 13 March, 1983

6. ShahjalalIslami Bank Limited 10 May, 2001

7. Social Islami Bank Limited 22 November, 1995

8. Union Bank Limited 2013

E. Foreign Commercial Banks

Banks Started Operations in Bangladesh

1. Bank Al-Falah Limited 2005

2. Citibank N.A 1995
3. Commercial Bank of Ceylon PLC 2003
4. Habib Bank Limited 1976
5. National Bank of Pakistan August, 1994
6. Standard Chartered Bank 1905 (including ANZ Grindlays experience;
SCB originally established its first branch in
Chittagong in 1948)
7. State Bank of India
8. Woori Bank September 1996

14
 9. HSBC Bank 1996

2.9 Functions of Commercial Bank:

Functions of Commercial Banks in Bangladesh

Receiving Deposits Advancing Loans

Current Saving Fixed Making Bank Cash Discounting

Account Account Deposit Loans Overdraft Credit Bills

Short Term Medium Long Term

Loans Term Loans Loans

15
2.10 Islamic Banking:
Alongside the conventional interest bearing banking system, Bangladesh entered into an
Islamic banking system (profit-loss sharing) in 1983. At present, out of all the commercial
banks in Bangladesh, 8 commercial banks are operating as full-fledged Islamic banks.
Islamic banking is set about implementing a balanced and consistent economic policy
based on fair or equitable distribution of resources and for ensuring justice in sync with
the Islamic ideals and principles. In transaction process, this particular financial
intermediary system prohibits interest, practices familiar and natural procedures seeks to
achieve the objectives of the Islamic economic system based on equity and justice. Banks In
this system, founded on principles of non-discrimination, establishing justice and creating the
socio-economic infrastructure and generating employment opportunities.
The Islamic banking industry continued to show strong growth since its inception in 1983 to
present date in tandem with the growth in the economy, as reflected by the increased market
share of the Islamic banking industry in terms of assets, financing and deposits of the total
banking system.
Now, a total of 23 public and private commercial banks are operating full-fledged or partially
Islamic banking operations in Bangladesh. Among them, 8 full-fledged Islamic banks are
operating with 843 branches, 8 conventional commercial banks with 19 Islamic banking
branches and 7commercial banks with 25 Islamic banking windows in the country. A total of
26,135 employees are working in 887 Islamic banking branches and windows.
The average growth of deposit in the banking sector in last five years (2009-2013) was 19%
which was 20% for Islamic banks. For the same period, the total assets in banking sector
increased by 19%. In contrast, Islamic banks have achieved 21% growth.
Total deposit of the Islamic banks stood at Tk. 1,13,360 crore in December 2017, which was
18.00% of total deposits of the country and 29% deposits of the private commercial banks.
Total deposits of the Islamic banks stood at Tk. 1, 33,561 crore in June 2018.
2.11 Problems of Banking Sector of Bangladesh:
The banking sector in Bangladesh has been performing well in terms of employment
generation, profitability and operations during the past few decades. The value of bank shares
in the stock market is reasonably high. But this sector's performance has noticeably declined
in the recent years. Its investment in private sector industries has down-turned due to anti-
investment environment prevailing in the country. The banking industry has been facing the
challenges arising from political instability and uncertainties, in addition to inept

16
management, frauds, corruption, inadequate capital base, unprofessional personnel in the
management, political interference in decision making and so on.
The banking sector in Bangladesh is currently experiencing a classic ‘problem of plenty’
with rising volume of excess liquidity. Press reports state excess liquidity has surpassed BDT
1 trillion. This is certainly a matter of concern, as it reflects inability of the economy to
productively utilize available capital.

17
 Chapter - 03
Overview OF EXIM Bank of Bangladesh
Limited

18
3.1 Background of the Bank:
EXIM Bank came in to operation as scheduled commercial bank on 3rd August 1999 as per
rules and regulations of Bangladesh Bank. It is established under the leadership of Late Mr.
Shahjahan Kabir, founder chairman who had a long dream of floating a commercial bank
which would contribute to the socio-economic development of our country. He had a long
experience as a good banker. A group of highly qualified and successful entrepreneurs joined
their hands with the founder chairman to materialize his dream. Indeed, all of them proved
themselves in their respective business as most successful star with their endeavor,
intelligence, hard working and talent entrepreneurship. Among them, Mr. Nazrul Islam
Mazumder became the honorable chairman after the demise of the honorable founder
chairman. Of its very beginning EXIM Bank Bangladesh limited was known as BEXIM Bank
Limited. But some legal constraints the bank renamed as EXIM Bank, which means Export
Import Bank of Bangladesh Limited. At present the bank is performing its work all over the
country by 53 branches. The bank has migrated all of its conventional banking operation into
Shariah based Islamic banking since July/2004.
3.2 Vision of EXIM Bank Limited:
The gist of the vision is “Together towards Tomorrow”. Export Import Bank of Bangladesh
Limited believes in togetherness with its customers, in its march on the road to growth and
progress with service. To achieve the desired goal, there will be pursuit of excellence at all
stages with a climate of continuous improvement, because, in EXIM Bank, we believe, the
line of excellence is never ending. Banks strategic plans and networking will strengthen its
competitive edge over others in rapidly changing competitive environment. Its personalized
quality services to the customers with the trend of constant improvement will be the keystone
to achieve our operational success.
3.3 Mission of EXIM Bank Limited:
The bank has chalked out the following corporate objectives in order to ensure smooth
achievement of its goals-
To be the most caring and customer friendly and service oriented bank.
To create a technology based most efficient banking environment for its customers.
To ensure ethics and transparency at all levels.
To ensure sustainable growth and establish full value to the honorable stakeholders
and
Above all, to add effective contribution to the national economy.

19
Eventually the bank also emphasis on-
Provide high quality financial services in export and import trade.
Providing efficient customer service.
Maintaining corporate and business ethics.
Being the trusted depository of customers money and their financial adviser.
Making its products superior and rewarding to the customers.
Display team spirit and professionalism.
Sound capital base.
Enhancement of shareholders wealth.
Fulfilling its social commitment by expanding its charitable and humanitarian
activities.
3.4 Corporate Culture:
This bank is one of the most regimented banks with an idiosyncratic corporate culture. Here
we believe in shared meaning, shared understanding and shared sense making. Bank’s people
can see and understand events, activities, objects and situation in a distinguishing way. They
mould their manners and etiquette, character individually to suit the purpose of the bank and
the needs of the customers who are of paramount importance to the bank. The personnel in
the bank see themselves as a tight knit team / family that believe in working together for
growth. The corporate culture of bank belong has not been imposed; it has rather been
achieved through bank’s corporate demeanor.
3.5 Prime Operational Area:
As a full-fledged islamic bank in Bangladesh, EXIM Bank has extended all islamic services
including wide range of saving and investment products, foreign exchange and ancillary
services with the support of sophisticated IT and professional management. The investment
portfolio of the bank comprises of diversified areas of business and industry sectors. The
sectors include textile, edible oil, ready-made garments, chemicals, cement, telecom, steel,
real estate, and other service industry including general trade finance. The bank has given
greatest important to acquire quality assets and is committed to retain good customers
through customer relationship management and financial counseling. At the same time efforts
have been made to explore or induct new clients having good potentiality to diversify and
create a well- established structured investment portfolio and to minimize overall portfolio
risks.

20
3. 6 Products & Services of EXIM Bank Limited:

Deposit Products: Investment Products:

1. Al-Wadiah Current Deposit Account. 1. Corporate Finance.
2. Mudaraba savings deposit account 2. Commercial Finance.
(MSD, MSTD, RFCD, and NFCD).
3. Mudaraba Term Deposit Receipt. 3. Industrial Finance.
4. Mudaraba monthly saving scheme. 4. Project Finance.
5. Mudaraba monthly income scheme. 5. Lease Finance.
6. Mudaraba Super Savings Scheme. 6. Syndicate Finance.
7. Mudaraba Hajj Scheme 7. Hire Purchase Finance.
8. Real Estate Finance.

3.7 Social Commitment:

The purpose of company business is, obviously, to earn profit, but the promoters and the
equity holders are aware of their commitment to the society to which they belong. A chunk of
the profit is kept aside and/or spent for socio-economic development through trustee and in
patronization of art, culture and sports of the country. At least 2% of our annual profit of
every year put aside for the foundation to conduct Corporate Social Responsibilities (CSR)
activities. The mainstream of CSR activity that carries out through this foundation is:
 Healthcare services.
 Education Promotion Scheme (Interest free loan).
 Helping people affected by natural calamities.
 Helping people in slum areas.
 Donation to educational institutions to setup computer lab.
 Beautification of Dhaka City.
3.8 Achievements:
It is a great pleasure that by the grace of Almighty Allah, we have migrated at a time all the
branches from its conventional banking operation into Shariah based Islamic banking
operation without any trouble in 2004. Lot of uncertainties and adversities were there into
this migration process. The officers and executives of our bank motivated the valued
customers by counseling and persuasion in light with the spirit of Islam especially for the
non-Muslim customers. Our IT division has done the excellent job of converting and fitting
the conventional business processes into the processes based on Shariah. It has been made

21
possible by following a systematic procedure of migration under the leadership of honorable
Managing Director.
3.9 Management Profile and Divisions:
EXIM Bank Limited has does this work very well. Different departments of EXIM Bank
Limited are as follows:
 Financial Administration Division., Head Office
 Human Resources Division, Head Office
 International Division, Head Office
 EXIM Bank Training Institute
 Information Technology Division, Head Office
 Special Audit Division, Head Office, Dhaka.
 Accounts Division
 Treasury Division
 Operations Division
 Investment Division.
3.10 Human Resource Practices in EXIM Bank Limited:
Employees are the core resources of any organization. Without them, one cannot run their
organization. And, human resources approach is concerned with the growth and development
of people toward higher level of competency, creativity and fulfillment. It helps employees
become better, more responsible persons, and then it tries to create a climate in which they
may contribute to the limits of their improved abilities. It assumes that expanded capabilities
and opportunities for people will lead directly to improvements in operating effectiveness.
Essentially, the human resources approach means that better people achieve better results.
3.11 Shariah Board:
The Board of directors has formed a Sharia Supervisory Board for the Bank. Their duty is to
monitor the entire Bank’s transactional procedures, & assuring its Sharia compliancy. This
board consists of the following members headed by the chairmn.
The tasks of the Sharia supervisor in summary is replying to queries of the Bank’s
administration, staff members, shareholders, depositors, & customers, follow up with the
Sharia auditors and provide them with guidance, submitting reports & remarks to the Fatwa
& Sharia Supervision Board and the administration, participating in the Bank’s training
programs, participating in the supervision over the AlIqtisad AlIslami magazine, & handling
the duty of being the General Secretary of the Board.

22
3.12 Shariah Council:
Chairman:
Professor Maulana mohammad salah uddin
Members:
Moulana Mohammad Sadequl Islam
Professor H.M. Shahidul Islam Barakaty
Mr. A.S.M. Fakhrul Ahsan
Hafez Moulana Mufti Mohammad Khair Ullah
Mr. Md. Nazrul Islam Mazumder
Mr. A.K.M Nurul Fazal Bulbul
Mr. Md. Abdul Mannan
|Mr. Zubayer Kabir |
|Mr. Abdullah Al-Zahir Sawpan |
|Mr. Kazi Masihur Rahman |
3.13 Corporate Information:
Matters Information Credit Rating Information
Date of incorporation June 02,1999 Long term ‘AA-’(High Safety)
Inauguration August 03, 1999 Short term ST-2’(High Grade)
Authorized capital Tk.1000.00 Notification of June 02, 2010
Corer reporting
Paid-up capital Tk. 337.39 Registered office “SYMPHONY”
Corer
Number of branches 80 Plot No. SE (F): 9 Road No .142
Proposed branches 10 Gulshan Avenue, Dhaka-1212,
Bangladesh
Fax: 880-2-988 9358 PABX: 880-2-988 9363,
SWIFT: EXIMBKBDDH Website : www.eximbankbd.com
|Foreign Exchange:
Non Resident Foreign Currency Deposit Account.
Foreign Currency Deposit Account.

23
3.14 Deposit:
1. Al-Wadia Current Deposit
2. Mudaharaba Saving Deposit
 Mudaraba Monthly Saving Scheme (Money Grower)
 Mudaraba Monthly Income Scheme (Steady Money)
3. Mudaraba Super saving Scheme (Double in6Years)
 Mudaraba Multiple Saving Scheme (More than triple in 10years)
 Mudaraba Education Saving Scheme
4. Mudaraba Short Term Deposit
One Month Three Months
Six Months Twelve Months
Twenty Four Months Thirty Six Months

24
 Chapter- 04
General Banking Activities of EXIM Bank

25
4.1 General Banking:
All business concerns make a profit through selling either a product or service. A bank does
not produce any tangible product to sell nevertheless does offer a variety of financial services
to customers.
General Banking Department is considered as the direct customer service center. It is the
starting point of all the banking procedure. This department portrays one of the most
important roles in the commercial banks. And this department aids in taking deposits and
concurrently provides some ancillaries services and daily services to the customers as well.
Every day it receives deposits from the clients and meets their demand for cash by honoring
cheques. It opens new accounts, demit funds, issue bank drafts, and pay orders, etc.
I have started my internship program in EXIM Bank Express Duphadighirpar Road Offshoot,
Dhaka on 09th May 2017 and the operation director of Duphadighirpar Leg told me that at
first body of work in the general banking so that I can acquire initial information. It includes
various natural actions in the Duphadighirpar Branch of EXIM Bank Limited. Unfortunately,
it was difficult for me to exercise all these in such a short time of my internship.
Still, there are some proceedings and dealings I have done by myself.
4.2 Components of General Banking:
General Banking consists of the following sections in the branch. These are as follows
 Account opening
 Account closing
 Deposits Account
 Issuance of cheque book
 Issuance of Debit Card and solve the problems related with the
 SMS Banking
 Clearing cheques.
 Provide foreign remittance services.
4.3 The Procedure of opening account:
It is said that there is no manager customer relationship if there is no account of a person in
that bank. By opening an account banker and customer create a contractual relationship.
However, selection of customer for opening an account is very crucial for a Bank.
Before the opening of an account, the following formalities must be completed by the client:

26
Step1: Bank provides account introductory form to the prospective client or applicant
Step 2: Applicant fills up the form.
Step 3: Application acquiesces the form duly signed by an introducer and along with two
passport size photos attested from the introducer.
Step 4: The authorized officer analyzes the form.
Step 5: If no mistakes are found, the officer will proceed with the account opening.
Step 6: He/ She will issue a deposit slip where a deposit must be made.
Step 7: Later on he/she will issue the checkbook with the Signature card to verify the
customer.
Step 8: Bank preserves the sample.
Step 9: Account is opened
4.4 General requirement for opening MSD/MSTD account:
There are few general rules for opening all type of account which is as follows:
 Account opening form to be filled in and signed by the account holders.
 Introduction by an existing account holder with signature and account number or any
other person acceptable to the bank.
 Two copies of contemporary passport size photographs of each account holders
attested by the introducer.
 One copy passport size photograph of nominee attested by the account holder.
Individual and Joint Account
 A Copy of passport/ national ID card/ driving license/ office id/ word commissioner
certificate, any ID acceptable to the bank.
 Attested photocopy of passport with visa for foreign Currency Account.
 Joint account declaration form for the Joint account.
 TIN Certificate.
Proprietorship Account

 Declaration form of sole proprietorship from the bank must be filled up,
 TIN Certificate,
 Submission a copy of trade license.
Partnership Account
 A Copy of registered partnership deed,
 Submission of a copy of partnership deed,

27
  Association letter duly signed by all partners,
 Copy of trade license,
 Photocopy of company TIN,
 List of partners with full address and phone number
4.5 Various Types of Deposit Account:
EXIM BANK offers following types of deposit account:

Savings Account Current Term Deposits Deposit Schemes

Deposits
MSD (Mudaraba AL-Wadia
Saving Deposit) Current Deposit  Mudaraba Term  Mudaraba Monthly
Deposits Savings
 Mudaraba  Mudaraba Super Savings
Education  Mudaraba Multiplus
Deposit Savings

 Mudaraba Millionaire
Deposit Scheme
 Mudaraba Kotipoti
Saving Scheme

 Mudaraba Su- Grehini

Monthly Savings Scheme
 Mudaraba Femina
Monthly Savings Scheme

 Pension Deposit Scheme

28
  EXIM Monthly Hajj
Deposit

 Mudaraba Senior
Monthly Savings Scheme

4.5.1 MSD (Mudaraba Saving Deposit):

Profit is payable to the customer in this savings account. The bank allows investors to open
an essential savings account by inspiring investments habit amongst the general public. As
the title indicates, these accounts are used and opened as the savings account. Two types of
saving accounts are available entitling as "Single Saving Account," and "Joint Saving
Account." At last an amount of Tk. 1000/= is needed for opening this type of account, and its
charges yearly are Tk.250/=. A saver will be allowed to withdraw per week up to 25% of the
balance of his account.
4.5.2 MTDR (Mudaraba Term Deposit Receipt):
It is a particular period deposit system, which does not repay until the maturity date of that
fixed period reaches. The bank provides higher rates of profit on such deposits. Usually,
customers are allowed to open this account for a period. Any mature person (individually or
jointly) having sound mind can wish to open the MTDR account in any branch of Exim bank
with a deposit of minimum Tk10, 000/- and higher but multiple of Tk. 100.00. Several
accounts can be opened in the same name at the same o different branches of this bank.
Deposit of MTDR A/c will bear the following weight age:
Term/ Period Weight age
01months 0.83
02 months 0.83
03 months 0.88
06 months 0.92
1year/2year/3year 0.96

Table: Weight age of MTDR account

29
Terms and Conditions of MTDR
The amount deposited for MTDR is not encashable before maturity in general. If any
investors wish to encash his/her MTDR Receipt before maturity due date in some obvious
situations, the following terms and conditions will come into force:
 No profit will be allowed for premature encashment within 01 months.
 If the account is encashed at the end of tenancy but before maturity, depositors will be
entitled to get the benefit at the provisional rate of profit from Mudaraba Savings
Account.
 The conditional rate of profit of Mudaraba Savings Account will treat the temporary
rate of profit, which was prevailed while having the MTDR account.
Premature encashment of the scheme:
 In the case of premature encashment before 1 year no profit shall be paid.
 In the case of premature encashment after 1 year but before 3 years profit shall be
paid at Savings Rate plus 0.75%.
 In the case of premature encashment after 3 years but before maturity profit shall be
paid at Savings Rate plus 1.00%.
 In the case of any unexpected situation:
 In the case of passing away of the investor before the term, the expense will be
provided to the nominee as per the rules of premature encashment.
In case of any unexpected situation:
In the case of passing away of the investor before the term, the expense will be given to the
nominee according to the rules of premature encashment.
4.5.3 Mudaraba Monthly Savings Scheme (MMSS):
It is a monthly delivery scheme that secures future with fewer tensions and more ease. A
small savings of today will provide a consolation for the next day. Period of Savings and
Installment Rate Per Month:
 The savings period is for 3,5,8,10, or 12 years and the payment is tk 500/, 1000/,
2000/, or 5000 accordingly.
 Bank has the right to change the weightage of deposit.

30
4.5.4 EXIM Monthly Hajj Deposit:
Given flat pre arrangement for accomplishment Hajj, EXIM bank has announced this scheme
under the agreement of 5, 8, 10, 15 and 20 years with the minor quantity of payment per
month with a percentage of 11%.
4.6 Issuance of Cheque Book:
Fresh cheque book is delivered to the account holder only against requisition on the
prescribed requisition slip attached with the cheque book issued previously, later the account
holder's signature verification or his duly authorized representative against proper
acknowledgment.
The In-charge of the departmental stocks of Cheque books will receive the request and allow
entering the DCBIR (Departmental Cheque Books Issued Register), and separate foils in the
register which are allotted for CD accounts Cheque Books of 20, 50 and 100 leaves. While
the opening of an account, the customer is required to sign a Cheque Book Requisition Slip.
He/She will receive a cheque book only if the account opening form is found complete in all
respects. The person In-charge enters the name and account number of the customer in the
DCBIR against the particular Cheque Book series, and keeps a record on the computer. The
requisition slip should be preserved as Vouchers.

Requisition Banker Bank

slip occupied
up accurately verifies issuance the
along with the slip new cheque
the account book if
number everything
is the right
Enter the
cheque book
form
number in the
register book of
the specific
customer name

Figure: Issuance of Cheque Book

The subsequent processes are upheld for issuing of a cheque book:
 In the beginning, the client must have to fill up the cheque requisition form.
 The officer In-charge enters the name, and account number of the customers in the
check book register against the fixed check book series.

31
  Then the officer In-charge from the deposit department signs the register check book
and the requisition slip.
 Then the customer receives the cheque book from the officer of the deposit
department after the acknowledgment on the request slip and register book.
A cover file enclosing the requisition slip shall be preserved as the voucher. If the ledger
keeper finds any defects, he/she will remark to that on the requisition slip and forward it to
the cancellation officer to decide whether a new cheque book should be issued or not.
4.7 Clearing Section:
Clearing is a coordination by which a bank can assemble clients fund from one bank to
another through a clearing house.
It is a place where the representatives of different banks get together to receive and deliver
cheque with another bank.
Usually, Bangladesh Bank performs the Clearing House in Dhaka, Chittagong, Rajshahi,
Khulna & Bogra. Where there is no branch of Bangladesh Bank, Sonali Bank arranges this
function.
As far security is concerned client get crossed check for the transaction. The principal
purpose of clearing section is to operate with safety and security of economic transaction of
the financial instrument li DD, PO, check, etc. on behalf of the customers through
Bangladesh Bank Clearing House, Outside Bank Clearing (OBC), Inter Branch Clearing
(IBC). This segment examines in the following way:
 Whether the remunerating bank within the Dhaka city.
 Whether the remunerating bank outside the Dhaka city. Then these checks can be
cleared by OBC, OBC stands for an Outward bill for collection.
 Whether the remunerating is their branch. These checks can be cleared by IBC (Inter
Brunch Bill for Collection)
EXIM Bank LTD. is a scheduled Bank. According to the Article 37(2) of Bangladesh Bank
Order, 1972, the banks, which are the member of the clearinghouse, are called as Scheduled
Banks. The scheduled banks clear the cheque drawn upon one another through the
clearinghouse.
This is an arrangement by the central bank where every day the representative of the member
banks gathers to clear the cheque. Banks for credit of the proceeds to the customers‟ accounts
accept Cheque and other similar devices. The bank receives many such tools during the day
from account holders. Many of these instruments are drawn payable at other banks.

32
Similarly, there would be many cheques drawn on this the messengers of other banks would
present bank and them at the counter. The whole process of collection and payment would
involve considerable labor, delay, risk, and expenditure. The place where the banks meet and
settle their dues is called the Clearinghouse.
4.7.1 Types of Clearing:

Clearing House Inward Clearing and

Outward Clearing
Outward Clearing:
When the Branches of a Bank receive a cheque from its customers drawn on the other Banks
within the local clearing zone for collection through Clearing House, it is Outward Clearing.
When particular branch collects the financial instruments like PO, DD, Cheques within the
Dhaka city and not of their branch, then the Outward clearing will be functioned.
The procedures of Outward Clearing are as follows:
 The instruments with schedules to the principal in the event of any of EXIM Bank
Bangladesh Ltd after issuing an Inter Branch Debit Advice (IBDA),
 Clearing stamps should be attached to the instruments,
 The authorized signature endorses instruments,
 The customer receives the duty signed instruments and also branch code number
affixed on the instruments,
 Entry in the Outward Clearing Register,
 Receipt of an instrument with paying in slip,
 Checking of instrument & paying in slip,
 Affixing of seal,
 Special Crossing seal,
 Clearing Seal (Instrument & Paying in slip),
 Endorsement Seal with signature,
 Separation of the instrument from paying in slip,
 Sorting of instrument bank wise and branch wise,
 Preparing for schedule as per branch,
 Preparation Bank wise program,
 Preparation of clearing House sheet,

33
  Details of the instruments and vouchers are recorded in the "Outward Clearing"
register,
 Preparing the vouchers,
 Sending instruments to the main branch with the schedule.
Inward Clearing:
When the Banks receive cheque drawn on them from other Banks in the Clearing House, it is
Inward Clearing. When the checks of its customer are received for collection from other
banks, the following should be monitored very carefully;
 The cheque must be crossed.
 The amount both in words and figure in deposit slip should be same, and it should be
adapted to the amount mentioned in words and figures in the checks as well.
 The cheque should not carry a date older than the receiving date for more than
months.
 The collecting bank must check whether the endorsement is done properly or not.
 Instrument (DD/Cheque/PO) comes from principle office.
 Entry in "Inward Register."
 Cheque- in the computer.
 DD-DD payable
 Pay respective order register.
 Sing in the register by authorized officer
4.8 Remittance Section:
The word Remittance' means the distribution of money from one place to additional place
through a post and transmits. Money-making banks representation this facility to its clients
using unloading money from one branch of the bank and making an easier arrangement for
payment to another branch within the country.
The main function of remittance department is to transit the money from one place to another
with to minimizing the risk associate with handling cash. I have learned the various
mechanism of remitting fund. There are three ways of paying fund:
 Payment order (PO):
 Demand Draft (DD)
 Telegraphic Transfer (TT)

34
 Chapter- 05
AIS Practice of EXIM Bank Ltd

35
5.1 Accounting Information System of EXIM Bank:
“An accounting information system (AIS) is a system that collects, records, stores and
process data to produce information for decision makers” by Romney. An accounting
information system is generally a computer-based method for tracking accounting activity in
conjunction with information technology resources. The resulting statistical reports can be
used internally by management or externally by other interested parties including investors,
creditors and tax authorities.
AIS can be a very simple paper-and-pencil based manual system, a very complex system
using the very latest in computers and information technology, or somewhere these two
extremes. Regardless of the approach taken, the process is the same.
5.2 Characteristics of useful Information:
 Relevant:
Information is relevant if it reduces uncertainty decision maker’s ability to make
predictions, or confirms or corrects their prior expectations.
 Reliable:
Information is reliable if it is free from error or bias and accurately represents the
events or activities of the organizations.
 Complete:
Information is complete if it does not omit important aspects of the underlying events
or activities that it measures.
 Timely:
Information is timely if it is provided in time for decision makers to make decisions.
 Understandable:
Information is understandable if it is presented in a useful and intelligible format.
 Verifiable:
Information is verifiable if two knowledgeable people acting independently would
each produce the same information.
 Accessible:
Information is accessible if it is available to users when they need it and in a format
they can use.

36
5.3 Component of Accounting Information System (AIS):
AIS can’t do anything’s without any its users. So the AIS and the people who use it must still
collect, enter, process, store, and report data and information. The paper and pencil or the
computer hardware and software are merely the tools used to produce the information.
Accounting information systems are composed of six main components:
1. People: users who operate the systems and perform various functions.
2. Procedures and instructions: both manual and automated, processes involved in
collecting, processing, managing and storing the data about the organization’s
activities.
3. Data: data that is related to the organization and its business processes
4. Software: application that processes the organization ‘s data
5. Information technology infrastructure: The actual physical devices(computer,
peripheral devices, and network communication devices)and systems that allows the
AIS to operate and perform its functions(to collect, store, process, and transmit data
and information)
6. Internal controls and security measures: That safeguards or secures the data in the
AIS.
5.4 Principles of AIS:
A sound accounting information system must be flexible and coat beneficial as these are the
principles of an effective AIS. Here in below those are described briefly.
5.4.1 Flexibility of Accounting Information System:
Flexibility means that the system should be so much flexible that it can be changed when
necessary. Flexibility helps the organization to perform its task easily and quickly as they
want.
Organizational Structure should flexible for improving their activities in different situation.
Organizational Data structure should be very easy which will help the employee to cope up
with the system easily for the long run success.
Data Recovery system must be simple which will help the employee to recover the lost data
or previous data.
5.4.2 Cost effectiveness of Accounting Information System:
Cost beneficial means the benefits of information must outweigh the cost of providing it.
Cost effectiveness indicates the minimizing process of cost which helps to maximize the
profit of an organization.

37
Data Documentation system is the process how data are maintained and stoke for future.
Data Storing should be less costly because it reduces the level of profit.
Maintenance of Data Structure is the most costly activities in every organization so they
should maintain is chiefly.
5.4.3 Usefulness of Accounting Information System:
Some time a success of a company depends on the usefulness of AIS. If AIS provides more
useful data or information with a proper way & also in time, than it will help the organization
to achieve the goal easily. Here in below I provide some information about usefulness of AIS
in EXIM Bank Ltd.
Relevant data means if data reduces uncertainty decision maker’s ability to make predictions,
or confirms or corrects their prior expectations as they demand.
Reliability of data means if it is free from error or bias and accurately represents the events
or activities of the organizations.
Accuracy of data means if it is free from error or bias and misrepresentation.
Timely data means if it collected and provided in time for decision makers to make decisions
and for user’s generating information.
5.5 Operational system of AIS in EXIM Banking Ltd:
In present days all the EXIM Bank banks make their banking operation through combination
of manual and computerized system. Here some operational activities of FAD, that how they
collect the data are given below.
Manual:

 Payment order(PO)’s data collection,

 Demand Draft(DD) ’s data collection,
 VISA card’s data collection,
 L/C Opening’s data collection,
 Monthly equipment’s data collection
 Investment Application’s data collection, etc.
Computerized:
 Local remittance transfer’s data collection,
 Foreign remittance transfer’s data collection,
 Primary share request entry’s data collection,
 Performance report’s data collection etc.

38
Combination of Both:
 Account opening’s data collection,
 Deposit Scheme open’s data collection,
 Cash receiver’s data collection,
 Cash payment’s data collection,
 Clearing of Cheque’s data collection, etc.
 It helps to input the Clients Information in server.
 It process bank statement of clients.
 It helps the authorized user to send or receive data from another user.

39
 Chapter - 06
Description of the Tasks Completed during
Internship

40
6.1 My experience in EXIM Bank Limited:
In EXIM Bank Ltd. I worked in the General Banking department. I was placed in the account
opening section. I was responsible for opening all type of account of the customer. It was a
great experience for me because I achieved a lot of practical and professional knowledge. The
office environment is very pretty and friendly. All employees are very responsive and caring.
They always helped me to learn extensively. Employees were doing their job as a team. They
help each other in every situation. They accepted me cordially and treated me as their team
member. In the account opening section at first customer used to come for creating account/s
then I tried to discover the purpose of the account of the customer. If the customer were
confident enough about the account type then only I proceeded further otherwise I suggested
them the type of account that suited them the most and the photocopy of the documents (like:
Passport sized photograph, National ID card of account holder & Nomine, TIN Certificate,
Trade license etc) they were needed to submit to the bank. Upon submission, I verified all the
relevant documents and necessary information. Further, I used to take signature of the
applicant in the prescribed account opening form of EXIM bank. I used to fill up the account
opening form and get verified by the relationship manager. Then I entered that information
into the Bank’s online system. Then, the customer used to get the account number and they
had to deposit minimum amount in that account number. In this way different accounts were
created by me and future transactions were carried out in those accounts. With this
responsibility I also used to write debit/credit vouchers, pay order, deposit slips, cheques etc.
All in all, it was a great time when I was doing my internship in EXIM bank. It was a great
official environment. Really, I achieved fruitful knowledge from this bank and the
employees. I think this experience will make my future career path more suitable and easy.
 Account Section:
I had to work on account section of Zinda Bazar Branch. I had to collect necessary
documents from the customers those who came to open account of Zinda Bazar Branch.
Documents like TIN certificates, Trade license, National ID Card, Photo of Holder and
nominees etc.
 Update customer’s Information:
My prime job at Sylhet Zinda Bazar Branch was to update customer’s information.
Customers who opened their bank account before September 2019, they need to update their
information and also photo, address, transaction profile, National ID no. etc. and I had to
collect all information from the customers.

41
 Fill-up debit card forms:
I had to collect debit card requisition from the customers and filled up necessary papers. After
filled up debit card form I had to send the papers to the card division of head branch.
 Account opening:
I had to open all types of bank account and collect necessary documents from the customers.
 Account closing:
I had to close all types of bank account when the customers want or over the maturity the
account.
 Address change & Name correction of the customers:
My key job was to correct customers name and address if changes necessary. I had to contact
with customers via phone and had to inform that their address or name have to correct.
 Calculate the Depreciation of Fixed Assets:
In the month of June - July they need to calculate the depreciation of their fixed assets. They
give me opportunity to calculate this.
 Salary Calculation:
As I passed my more time in Account section so I have learned how they calculate the salary
and bonus ending of the month so I can help them to calculate the salary and bonus of
employee.
 Cheque book issue:
UBL provides to types of cheque book they are MICR and Non MICR. I have learned how
those books issued so I did it. Write down the Dr. and Cr. Voucher: I wrote their Dr. and Cr.
Voucher because of their internal maintain activities.
 Foreign Remittance Department:
I was assigned to Foreign Remittance Department under direct supervision of Md Khair
Uddin who is a senior officer in Zinda Bazar Branch. My job was to work where ever
needed in remittance department.
 At first I have to check the foreign remittance message where the pin number is
written then whenever I saw the pin number I can understand that which exchange
company provides this number because there is a pattern in pin number.
 Then I have to collect information from customer and help them to write their
applicant form.
 After this my supervisor used to check this pin number.

42
  Then when everything is all right I used to write debit voucher.
 Entry this transaction in a register
 Other then this I during lunch I used to serve customers.
6.2 Importance of Internship:
Goods and services are produced for the purpose of using in daily life. Similarly, Theoretical
knowledge is acquired for the purpose of applying in the practical life. The propensity of
application of theoretical knowledge in practical life successfully internship program is
absolutely necessary because theoretical knowledge will be fruitful if it can be applied in the
practical life. When we can implement the theoretical knowledge practically, we can say the
knowledge is successful; otherwise the achieved knowledge is valueless. Internship program
is the way of implementing the theoretical knowledge practically. However, the importance
of internship may be described in the following ways:
 As internship program is the practical implementation of the theoretical knowledge, it
helps to increase the quality and effectiveness of the trainer.
 We can only know the problems of an organization in directly through theoretical
knowledge, but we can know the nature of the problems, problems of the various departments,
methods of solving the problems through the practical training. So it is very important
to identify the problems and eradicate the problems.
 The trend of all activities is an organization becomes growing through practical
training.
 To Innovate new technique of management.
 To realize the present condition of the institution.
 To make policy for development of the organization.
 It mentally prepares for their professions.
 Internship program acts as a bridge between theoretical knowledge and managerial
practice. Internship acts as a guideline during the service period.
 By internship program students can understand limitations, shortages
and practicability of their knowledge and thereby can take necessary action
for removing these limitation and shortages.

43
 Chapter - 07
Application of knowledge gained during
BBA program to accomplish each task

44
7.1 Application of knowledge gained during BBA program to accomplish
each task:
I am a student of Bachelor of Business Administration (BBA).This program contains 12
terms including internship. 1st to 11th terms deal with educational activities and 12th is
internship.
As a business student, I learned many things from my BBA program; gained a variety of
knowledge through the class lecture, text books, assignment, presentation, viva, exam etc.
while conducting my internship. Following are some courses that have been highly helpful
throughout my internship period-
“Principles of Accounting”
In accounting courses, I broadly understood the accounting system and procedures of any
organization. When I am joining in a bank, these courses help me a lot. From these course I
have understand the basic terms of accounting such as debit, credit, journal, ledger, trial
balance, double entry system, financial statements, valuation and allocation etc. when I am
joining in bank, I saw there was so many types of statement, which was basically I learned in
my academic courses.
“Principles of Marketing”
I completed the courses named “Principles of Marketing” which is my major subject. From
this course I learned different types of promotional activities, marketing mix, customer
retention, strategic and tactics, analyzing the market, branch marking, market segmentation,
target market etc. This course help to understand how to attract the customers, how to create a
place in the today’s dynamic market and how to manage profitable customer relationship.
“Business Communication”
Business communication is a term that can be defined as the contact between the people in
the organization for the intention of carrying out the business activities. It is used to promote
a product, service, or organization as well as pass on information within a business or work as
an official statement from a company. Business communication as nothing but the
communication between the people in the organization for the purpose of carrying out the
business activities. From this course I learned how to write various types of applications, how
to prepare different types of report, letters, memos, agenda etc. So these courses helped me to
communicate with different type of people in the bank and also helped in writing application
for internship.

45
“Organizational Behavior”
A course named “Organizational Behavior” was included in the syllabus of BBA program.
Organizational behavior is field of study that investigates the impact that individuals, group
and structures have on behavior within an organization. I broadly learned that every business
has its own value, norms, culture and this helps me to adjust myself with the organization
culture easily. This course played a vital role on my internship. This course taught me how to
behave formally within an organization, how to act react, how to behave with the customer,
how to convince them.
“Banking and Insurance”
The most useful knowledge which I gained from BBA program and used in my internship
the knowledge of banking sector. I learned many important things about banking sector from
the course “Banking and Insurance”. In this course I learned about types of bank, functions of
bank, role of bank in developing economy, different bank related terms, current structure of
banks in Bangladesh as well as the banking sector of the other countries. I learned about the
functions performed by a bank. And when I conduct my internship; I had to perform these
tasks.
From the course “Banking and Insurance” I learned about various types of accounts, such as
saving deposit account, fixed deposit account, current deposit account etc. also I learned
about demand deposit and time deposit. When I joined internship and worked in accounting
opening section, I applied my academic knowledge acquired from BBA program. I also knew
about the loan and advances from the course “Banking and Insurance”.
“Principles of Management”
In the principle of Management course, I broadly learned about what is management,
functions of management like planning, organizing, staffing, decision making, controlling,
coordinating, role of management for running the organization level of management,
different organizational structures, chain of span, span of control, SWOT analysis etc. which
helps me to understand the bank management procedure, structures, rules, and regulation
easily. This course helped me to find out the strength, weakness, opportunity and threat of
Uttara Bank Limited.

46
 Chapter- 08
Findings, Recommendations & Conclusion

47
8.1 Findings:
 Lack of manpower in Foreign Exchange Department is a big problem. The manpower of
that section is not sufficient for prompt service.
 Lack of promotional initiatives to expand the Foreign Exchange business.
 From the previous years it has been observing that frequently the currency of taka is
devaluating and dollar currency is going very high. And devaluation of taka is hampering
import business and other sectors too.
 Government new regulations like as L/C margin reduce the Foreign Exchange
transaction.
 Strict controlling of Central Bank in foreign currency endorsement is a major problem.
 Employees of that department should have fluency in their tasks, so that customer does
not feel boring.
 Most of the customers of the bank ask for more quickly service especially quick, accurate
service and good behavior from bankers as they think a private bank should provide such
quality sufficiently. It has been found that inappropriate and slow work process often
compels the customers to compare the bank with government bank, which is not a good
indication for the reputation of the bank.
 Lack of enthusiastic scheme for importers and exporters.
 Lack of attractive products at foreign exchange department.
 EXIM Bank Ltd has no strong promotional activities to increase motivate its present and
potential investment client.
 EXIM Bank Ltd does not grant investment portfolio for new entrepreneurs new
businessmen new companies etc., which ultimately create “Class Banking”.
 Government should strong the NBR, anti corruption commission to shut the Hindi
business.

48
8.2 Recommendations:
Recommendations to overcome the drawbacks foreign exchange division of EXIM Bank Ltd
are shown below
 For opening a L/C it’s required to contact with the Zinda Bazar Branch, which is an
AD Branch of EXIM Bank. To minimize the time lag proper attempts should
immediately taken to convert this branch as an AD Branch.
 Diversified scheme for export and import with fewer margins for L/C should
introduced by the bank or small entrepreneur to target a different segment to increase
volume of export and import.
 Efficient and attractive marketing appearance of the bank in the printing media and
electronic media would also increase knowledge of people about foreign trade. This is
very much useful for increase transactions in foreign exchange department of this
bank.
 Tight rules and requirements for opening currency account should be relaxed and
make it easy and simple.
 EXIM Bank should change its policy regarding foreign currency transaction. It should
increase its foreign currency transaction from 10% to at least 30% of its total foreign
exchange transaction to complete with other banks.
 To earn more exchange gain, the bank should change its risk adverse policy.
 By charging lower commission this bank can increas3e the volume of transaction
related to DD, TT, and TC and thus can improve its volume of foreign remittance.
 Appointment of sufficient and well-trained employee in foreign exchange department
would help the branch to perform better.
 Commission’s income occupies the major part of the total of a bank and banks
profitability mainly depends on commission earning capacity, so bank should
establish a research and development cell for the purpose of introducing an efficient
foreign exchange department.

49
8.3 Conclusion:
I have reached a firm and concrete conclusion in a very confident way. The bank has
succeeded in achieving more customer than many other competitors. In my study I have
found that EXIM Bank Limited, Zinda Bazar Branch has reached this position by its
excellent customer’s service, commitment, people’s love and dedicated human resources.
EXIM Bank Ltd. Bank is the largest organization of mobilizing surplus domestic savings.
The study focuses on overview of overall banking of EXIM Bank Ltd. Financial has been
measured in terms of some selected criteria such as; Deposit accounts, Investment accounts,
Authorized Capital, Paid capital, Reserve position, Scope of providing services, Work forces,
Total income, Expenditure, EAT, Dividend per share, Total Asset and fixed asset. In terms
this criteria it has been found that the EXIM Bank Ltd has in a very good touch in all these
criteria except fixed asset and dividend per share which is not satisfactory. Success in the
banking business largely depends on effective lending. The more the income from credit
operations the more will be the profit of the EXIM Bank Ltd. and here lays the success of
credit financing.
This department is driving the bank from the front. Through the import, export and foreign
remittance operations, this department is making a great contribution to the bank and the
economy as a whole. If it is said that this department of the bank is running according to all
of the ideal principles of modern foreign exchange business mentioned in the book, it will be
exaggerated. Despite problems and weaknesses, it is driving the bank from the front. With an
easy to understand operating guidelines, transparent operating procedure and a team of highly
knowledgeable and proficient personnel, this department is expanding and excelling itself day
by day.
From analyzing all the ratios of EXIM Bank Ltd. I find that the activities and its associated
requirements and results are significant comparing the certain standard level that means the
bank is able to maintain the requirements of a good bank. Its EPS is increasing gradually year
after year and the amount of EPS is significant with the standard average. EXIM Bank Ltd. is
adequately capitalized because it holds required amount of capital against various risk
weighted assets. The bank’s net income is also insignificant level because ROA and ROE of
the bank which are the major indicators of earning of a bank are up to the mark. The other
ratios are also well associated with the standard of industry average. In totally EXIM Bank
Ltd. is performing its activities maintaining all the standard average which will be able to
retain all its clients, shareholders, stockholders and will encourage them to invest in the bank.

50
During the course of my practical orientation I have tried to learn the foreign exchange
banking activities to realize it with my theoretical knowledge, which I have greathearted and
going to acquire from various courses of my BBA program.

51
Bibliography:
Book Reference:
Dryden, Orlando John V. Lesiker. Essentials 2009 “Managerial Finance” Twelfth
edition,
Arther a. Thompson, Jr A. J. Strickland. 2010“Strategic Management” concept and
Cases (Ninth Edition).
Terry and franklin. 2011“Principles of Management.” 8th Edition.
Philip Kotler. 2010 “Principle of Marketing” Millennium Edition
Robbins S.P. and Coulter M. (2009-2010), “Management” Tenth Edition, Pearson
Mansur Ahamed (Ph. D), JBBC Corporation. Research Department, A Report on
Banking Sector of Bangladesh
Web Reference:
 Banks & FIs (https://www.bb.org.bd/fnansys/bankfi.php)
 History of Banking in Bangladesh (Part 2) (http://www.reportbd.com/articles/1618/1/-
History-of-Banking-in-Bangladesh-Part-2/Page1.html)
 Banking in Bangladesh (https://en.wikipedia.org/wiki/Banking_in_Bangladesh)
 List of banks in Bangladesh
(https://en.wikipedia.org/wiki/List_of_banks_in_Bangladesh)
 Bangladesh Bank (https://en.wikipedia.org/wiki/Bangladesh_Bank)
 History of Banking in Bangladesh
(http://www.assignmentpoint.com/business/banking/history-banking-bangladesh.html)
 Banking Sector of Bangladesh
(http://www.assignmentpoint.com/business/banking/banking-sector-of-bangladesh.html)
 Lists of Banks in Bangladesh (http://bankinfobd.com/banks)
 All Bank Listings in BD (http://www.banksbd.org/banks/
Report Reference:
 Annual General Meeting (AGM) Report 2018.
 Prospectus of EXIM Bank.
 Several Booklets from EXIM Bank.
 Several Reports from EXIM bank library.
 Uniform Customs & Practice for Documentary Credit (UCPDA 500, 1993 revision).
 www.eximbankbd.com (as on 30/12/2017)
 www.investopadia.com (as on 22/10/2018)

52
 Abbreviations

AOF Accounting Opening Form.

ATM Automated Teller Machine.

BAL Banking Arrangement Letter.

BFS Business Financial Service
BIBM Bangladesh Institute of Bank Management.
BSSM Branch Sales and Service Manager.
BFS Business Financial Service.
BCA Business Credit Application.
BIL Business Installment Loan.
BDT. Bangladesh Taka.

CIB Credit Information Bureau.

CC Credit Card

DP Note Demand Promissory Note.

DBR Debt Burden Ratio.

EXIM Export & Import bank Ltd.

EVSA Extra Value Savings Account.
EMI Equated Monthly Installment.

FDR Fixed Deposit Receipt.

FCY Foreign Currency.

GBP Great Britain Pound.

GB General Banking.

53
OD Over Draft
OSA Operating Savings Account

PL Personal Loan
PFC Personal Financial Consultant.
PDC Post Dated Cheque.
PIN Personal Identification Number.

RMG Ready Made Garments.

STD Short Term Deposit.

SOD Secured Over Draft.

TP Transaction Profile
TIN Telephone Identification Number.

UDC Undated Cheque.

VAT Value Added Tax.

WEDB Wage Earner’s Development Bond.

54