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EXECUTIVE SUMMARYThis internship report is written on General Banking & Foreign Exchange Activities ofBank

Asia Limited-A study on Motijheel Branch I tried to divide this report into different like, inorganization part-1 discussed about Bank Asia business activities, their products and services

and about their financial position, SWOT analysis of BAL shows its strong position among

different Commercial Banks of Bangladesh. In case of foreign international trade in BAL. Part-1 mainly focuses on the banking activities, procedures and precaution take to conduct export &import and general banking activities. On the other hand I tried to focus on the performance of

BAL General Banking & Foreign Exchange Business Between these three months of my

internship program I have also find out some matters, like; Bank Asia Ltd follows the rule andregulations of import-export policy and Bangladesh Bank Exchange Control regulation Act. And

as per instruction of Bangladesh bank, BAL has to maintain some rules. So I have recommended

here that, BAL should concentrate on collection information for the customers and creating new

information for the customer of the foreign exchange transaction and general banking process. Ihave recommendation that, BAL can increase their investment in different non conventional or

diversified items of export to increase foreign exchange earning. In this branch there is another

problem that I have find out that is, some employees are careless about their task but they areefficient. As a result some time clients need more time to do their transaction rather than other

bank. But in overall condition the employees are so much friendly with their clients. In BAL the

employees are always in pressure for their duties. And some time pressure becomes burden for

the employees also. And for this reason, Bank Asia Ltd should recruit minimum 15 employeesmore in this branch for the customer and also foe the employees. As the final point it could

summarized that, if Bank Asia authority could fine-turn its functioning through some changes in

overall banking performance, changes in providing other facilities with adaptation of modernbusiness practices through upgrading and expansion of the range of dealing in the banking sector

and simultaneously take advantages of modern technological breakthroughs in area such as

electronic communication, proper online services etc.

1.1 Introduction:The word Bank refers to the financial institution that deals with money transaction. Banks

collect deposit at lowest possible cost and provide loans and advances at highest Cost. The

spread between the two is the profit for the bank. There are two different types of banking. Oneis commercial banking and investment banking. The commercial bank is types of bank which is

engaged in banking activities, like; deposit and making loans and other fee based services. It also

byes corporate markets activities. In todays world, technological and financial advancement isinfluencing every human activity. Commercial banks have been playing a vital role in the world

economy. Bank is not only a financial institution, but also a helping hand for the common

people, different organization and also foe the government countrys prospect and future

economic conditions largely depends on the commercial banks. In todays business world, fewfinancial organizations have made a strong place in the market and Bank Asia is one of those

names.

1.2 Origin of the report:

This report on General Banking & Foreign Exchange Activities Of Bank Asia Ltd (Motijheel

Branch) was initiated as part of the internship program which is a BBA Degree requirement ofthe Department of Business Administration, Northern University Bangladesh. A three (3) months

internship at Bank Asia Ltd, Motijheel Branch, Dhaka, preceded the preparation of the report.
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During the internship a student has to undertake as area of investigation of any organization for

in depth study.

1.3 Objectives of the Report:

The objective of this report can be summarized as follows:

Specific: To fulfill the academic requirement.

To gain practical Knowledge in banking.

To focus on the brief description of foreign trade. To examine banks performance in foreign exchange risk.

Give a functional overview in general banking sectors of Prime Bank.

To identify major strength and weakness of BAL in respect of other Bank.

1.4 Methodology:1.4.1 Sources of information:

This Report has been prepared on the basis of experience gathered during the period of

internship. I also acquired information from the Annual report and website of the Bank Asia Ltd.

I have presented my experience and findings with the help of different diagrams and tables in theanalysis part. To make the report more meaningful and presentable, two sources of data and

information has been used-

(a) Primary sources

Practical desk work

(b) Secondary sources Files and Folders

Websites

Annual Report of Bank Asia

1.5 Limitations:

There were some problems while I have undergone the internship program. An unconditional

effort was applied to conduct the internship program and to bring a reliable and prolific result.

Sufficient record, publications were not available as per my requirement. All types of previous information are not processed through computer.

Large-scale research was not possible due to constraint and restriction posed by the

organization. Some of the relevant papers and documents were strictly prohibited.

Time constraint

Three months are very short time to prepare this.

1.6 Rationale of the StudyThe word bank refers to the financial institution that deals with money transaction.

Commercial banks are the primary contributors of the economy of this country. On one handthey are borrowing money from the locals and on the other hand lending the same to the locals as

loans and advances. So the people and the government are very much dependent on banks.

Moreover, banks are profit earning concerns, as they collect deposits at the lowest possible costand provide loans and advances at higher rate. The difference between two is the profit for the

bank.

This report basically deals with the General Banking & Foreign Exchange Activities of Bank


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Asia covering the areas like General Banking, Loan and Advance, Foreign Exchange,

Remittance, Financial Performance, Online Banking, etc.

CHAPTER-02

ORGANIZATIONAL PROFILE & STRUCTURE

OF BANK ASIA LIMITED

2.1 Background of the OrganizationThe economy of Bangladesh has been experiencing a rapid growth since the 90s. Industrial andagricultural development, international trade, inflow of expatriate Bangladeshi workers

remittance, local and foreign investments in construction, communication, power, food

processing and service enterprise ushered in an era of economic activities. Urbanization andlifestyle changes concurrent with the economic development created a demand for banking

products and services to support the new initiatives. A group of highly acclaimed businessmen of

the country grouped together to respond to this need and established Bank Asia Limited in the

year 1999.

The Bank Asia incorporated as a public limited company under the Companies Act. 1994. Thebank started its commercial operation on November 1999 with an authorized capital of Tk.800

million and paid up capital of Tk.218 million. The paid up capital of the bank stood at Tk.1116million as on 31st December 2006.

Within a short span of time Bank Asia has established itself as one of the fast growing local

private banks. It has at present a network of 26 branches serving many of the leading corporate

houses and is gradually moving towards retail banking. Its other significant delivery channel isthe shared ATM Network. Bank Asia has 25 ATMs as a member of ETN along with eleven other

banks. Since its humble beginning in 1999, it set milestone by acquiring the business operations

of the Bank of Nova Scotia in Dhaka, first in the banking history of Bangladesh. It againrepeated the performance by acquiring the Bangladesh operations of Muslim Commercial Bank

Ltd. (MCB), a Pakistani bank. Last year the Bank again came to the limelight with over

subscription of the Initial Public Offering of the shares of the Bank, which was a record (55

times) in our capital markets history and its shares commands respectable premium.The asset and liability growth has been remarkable. By December 2006 the total asset of the

Bank grew to Tk. 30,478 million, increase of almost 30% comparing to 2005. As of December

2006 deposits increased to Tk. 25,289 million, an increase of 37% over that of 2005, and Loans& Advances reached Tk. 22,255 million, an increase of 25% over that of the year 2005.

Bank Asia has been actively participating in the local money market as well as foreign currency

market without exposing the Bank to vulnerable positions. The Banks investment in TreasuryBills and other securities went up noticeably opening up opportunities for enhancing income in

the context of a regime of gradual interest rate decline.

Bank Asia is maintaining its competitiveness by leveraging on its Online Banking Software and

modern IT infrastructure. It is the pioneer amongst the local banks in introducing innovativeproducts like SMS banking, and under the ATM Network the Stellar Online Banking software

enables direct linking of a clients account, without the requirement for a separate account.

Bank Asia has successfully established a transparent process of recruitment seeking the best

talent. In its efforts towards continuous development of the human resources of the Bank, itarranges training programs throughout the year.


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2.2 VisionBank Asias vision is to have a poverty free Bangladesh in course of a generation in the new

millennium, reflecting the national dream. Our vision is to build a society where human dignityand human rights receive the highest consideration along with reduction of poverty.

2.3 MissionTo assist in bringing high quality service to our customers and to participate in the growth and

expansion of our national economy. To set high standards of integrity and bring total satisfaction

to our clients, shareholders and employees. To become the most sought after bank in the country,rendering technology driven innovative services by our dedicated team of professionals.

2.4 Corporate Governance:The Bank tries to achieve balance between increasing value of the shareholders investments and

maintaining high standards of ethics as a socially responsible corporate entity, within the

framework of regulatory norms. Continued improvement in the quality of service to the

depositors and borrowers remains the link between these objectives.

A successful business is defined by its relationship with its shareholders, customers, employees,business partners and the community in which it operates. BAL aims to tap into the synergy of

these relationships and create a collectively beneficial business environment. Its responsibilitiesare as follows:

Shareholders To safeguard shareholders investment and to create and add economic value.

Customers To satisfy the unique needs of our customers by offering safety to their trust,

provide innovation and flexibility in delivered service, that creates value for their businessthereby enhancing their commercial success and, in turn, ours. To take due care and diligence in

ensuring that regulatory norms are not breached in extending service to customers and other

constituents. Employees: To recognize that employees are our greatest asset and to ensure that they have a

safe and conducive working environment with equitable and competitive terms and conditions of

service. The Bank promotes a culture of trust, and the development and best of human talent and

resource. Business partners: To cultivate meaningful, mutually beneficial and successful long-term

relationship with our partners, suppliers and contractors based on trust and understanding.

Community: To be a responsible corporate citizen and conduct business in a manner thatpromotes sustainable development for both BAL and the community it serves. This involves full

compliance with local laws and regulatory authorities, and giving due consideration to cultural,

social and environmental impact in all commercial decision

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