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Comparative Analysis of Import Division of EXIM Bank Ltd Page 1

ffA STUDY ON PERFORMANCE ANALYSIS: IMPORT DIVISION OF

EXPORT IMPORT BANK OF BANGLADESH LIMITED

By

Nabila Alam

ID # 0931059

An Internship Report Presented in Partial Fulfillment

Of the Requirements for the Degree

Bachelor of Business Administration

INDEPENDENT UNIVERSITY, BANGLADESH

April, 2013

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A STUDY ON PERFORMANCE ANALYSIS: IMPORT DIVISION OF

EXPORT IMPORT BANK OF BANGLADESH LIMITED

By

Nabila Alam

ID# 0931059

Had Been Approved

April,2013

______________________________

Abul Khair Jyote

Lecturer, Marketing

School of Business

Independent University Bangladesh

Bashundhara R/A, Dhaka

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Table of Content

Particulars Page No.

Letter of Transmittal 5

Acknowledgement 6.

Executive Summery 7

PartIWorking Report on Export Import Bank of Bangladesh Limited

Background & History 9

Corporate Informations at a Glance 10

Vision & Mission 12

Objectives 12

Corporate Objectives 13

Board of Directors 13

Shariah Board 14

Islamic bank extend investment (loan) under the principles 15

Branches of EXIM BANK in Bangladesh 16

Financial Performance of EXIM BANK Limited 18

Working Experience at EXIM BANK 20

Job as an Intern 20

Critical Observation and Recommendation 23

PartIIA STUDY ON PERFORMANCE ANALYSIS: IMPORT DIVISION OFEXPORT

IMPORT BANK OF BANGLADESH LIMITEDChapter 1: Introduction1.1 Introduction &Background 26

1.2 Rationale of the Study 27

1.3 Objective of the Report 28

1.4 Limitations 29

Chapter 2: Literature Review

2.1 Literature Review 31

Chapter 3: Methodology

3.1 Methodology of the Study 35

3.2 Instruments Used in Analysis 36

Chapter 4 : Performance Analysis: Import Division of EXIM Bank

4.1 Performance of EXIM BANK at a Glance 38

4.2 Import Business 40

4.3 A Comparison among Import, Export & Foreign Remittance Business 46

4.4 Import Division of EXIM Bank Limited and Other Commercial Banks: AComparative Analysis

49

4.5 Comparative analysis of EXIM bank and with Social Islami bank and

Shahjalal Islami Bank52

Chapter5 : Findings & Recommendation

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5.1 Findings 55

5.2 Recommendations 57

Chapter6 : Conclusion

6.1 Conclusions 59BIBLIOGRAPHY 62

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Letter of Transmittal

May 09, 2013

Abul Khair Jyote

Lecturer, Marketing

School of Business

Independent University Bangladesh

Bashundhara R/A, Dhaka

Subject: Submission of Internship Report

Dear Sir,

I am submitting my internship report as the part of my internship (BBA 499A) and would like to

take the opportunity to thank you for your guidance and supervision in its completion. Icompleted my internship at EXIM Bank Limited from the 5

thFebruary to 5

thMay. My working

report is based on Foreign Exchange Banking and my report topic is A STUDY ONPERFORMANCE ANALYSIS: IMPORT DIVISION OFEXPORT IMPORT BANK OF

BANGLADESH LIMITED.

I hope you will assess my report considering the limitation of the study. Your kind advice will

encourage me to do further research in future.

Sincerely yours,

Nabila Alam

ID# 0931059

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Acknowledgement

First of all, I would like to pay my gratitude to the Almighty Allah for helping me in preparing

this internship report successfully. In the preparation and finish this internship report, I

acknowledge the encouragement and assistance given by a number of people and institution. I

am most grateful to the EXIM Bank management to give me the opportunity to complete my

internship in their organization.

I would like to express my gratitude to my Supervisor Mr. Abul Khair Jyote for providing me

detailed feedback and advice on this report. He always gave me his suggestions in making this

study as flawless as possible.I also want to render my special thanks to Mr. Md. Shahidullah Executive Vice President of

Agrabad Branch, EXIM Bank Limited for providing all the support in the organization.

Furthermore, I want to convey my heartiest thanks to my classmates and friends without their

help this report could not be fulfill.

Finally Special thanks go to the respondents, who spared their time generously, and helped me to

complete my study.

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EXECUTIVE SUMMERY

Importance of banking system in a country is increasing day by day. It is quite impossible for

any country to develop in industrial and commercial sector without sound banking system in

modern economic era.

Foreign Exchange Department is international department of Bank. It deals globally. It facilitates

international trade through its various modes of services. It bridges between importers and

exporters. If the branch is authorized dealer exchange market, it can remit foreign exchange form

local country to foreign country. This department mainly deals in foreign currency. This is why

this department is called foreign exchange department.Foreign exchange operation is one of the significant functions of the bank. It plays a vital role in

overall economy of the country. Bank collects information from numerous sources relating to

cost and revenue from foreign exchange operation. Through export, import, and foreign

remittances Foreign Exchange department of the banks earns their profit. Banks is the

intermediary of all export, import, and remittance activities.

Globalization of national economies has given a boost to international trade. The seller and the

buyer in an international trading transaction must agree for a product or its quality, price etc.

enter into a sales contract, spelling out precisely shipping and delivery details, terms of payment,

required documentation and other related issues including dispute settlement procedure and legalframework available.

The impact on trade transactions currency policies of the importing and exporting countries and

risks associated with them, fraud possibilities in the transaction or in documents are also

necessary. A country cannot long continue to have a deficit on foreign current account but a

favorable balance of payments on current account may conceal a heavy adverse balance of

payments with one individual country or group of countries.

Foreign Exchange Market allows currencies to be exchanged to facilitate international trade and

financial transactions. After passing a lot of phases, present foreign exchange market has

established and performing to benefit all the parties incorporated here. There are basically threeplayers in the foreign exchange market of Bangladesh. Those are the Bangladesh Bank,

authorized dealers, and customers. This paper discussed regarding the related issues of foreign

exchange activities of EXIM Bank Ltd.

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Part IWorking Report on Export

Import Bank of BangladeshLimited

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EXIM Bank Ltd

Generally, the commercial banks and financial companies provide a myriad of banking

products/ facilities and service to cater to the needs of their customers. These include 24 hour

banking, home banking (Tele Banking) [Via use of modems and phones] and general banking

and service products. For customers' convenience, such products are available throughout the

banks' branches in Bangladesh.

However, the Bangladesh banking industry is characterized by strict banking rules and

regulations set by Bangladesh Bank. All banks and Financial Institutions (FIs) are highly

governed and controlled under The Bank Companies Act (Act 14 of 1991), which lays many

restrictions besides other guidelines. Among the many regulations imposed, Bangladesh Bank

does not allow any FI to go into bankruptcy or insolvency.

The range of banking products and financial services is also limited in scope. All local banks

are imposed with 4 percent Cash Reserve Requirement (CRR), which is non-profit bearing, and

12 percent Statutory Liquidity Requirement (SLR). This has given rise to higher cost of funds

with the liberalization of markets, competition on banking.

Background & H istory:

EXIM Bank Limited was established in 1999 under the leadership of Late Mr. Shahjahan

Kabir, founder chairman who had a long dream of floating a commercial bank that 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

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respective business as most successful star with their endeavor, intelligence, hard working and

talent entrepreneurship. Among them, Mr. Nazrul Islam Mazumder became the honorable

chairman after the demise of the honorable founder chairman.

This bank starts functioning from 3rd August 1999 with Mr. Alamgir Kabir, FCA as the

advisor and Mr. Mohammad Lakiotullah as the Managing Director. Both of them have long

experience in the financial sector of our country. By their pragmatic decision and management

directives in the operational activities, this bank has earned a secured and distinctive position in

the banking industry in terms of performance, growth, and excellent management. The

authorized capital and paid up capital of the bank are Tk. 2000.00 million and Tk 9223 million

respectively.

The bank has migrated all of its conventional banking operation into Shariah based Islami

banking since July/2004.

Corporate Informations at a Glance:

EXIM Bank at a Glance

Name of the Bank: Export Import Bank of Bangladesh Limited

Status: Public Limited Company

Category: Commercial

Origin: Local

Date of Incorporation: 2nd

June 1999.

Date of Commencement: August 03, 1999

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Listing with Dhaka Stock Exchange: September 2004.

Listing with Chittagong Stock Exchange: September 2004.

Head Office: "SYMPHONY"

Plot # SE (F): 9, Road # 142

Gulshan Avenue, Dhaka- 1212.

Telex: 642527 EXM HO BJ

Phone: +880-2-9889363, 9891489

Fax: +880-2-8828962

E-mail: [email protected]

Website: www.eximbankbd.com

Known as: EXIM

SWIFT Code: EXBKBDDH

Stock Code: EXIMBANK

Chairman: Mr. Md. Nazrul Islam Mazumder.

Managing Director: Dr. Mohammed Haider Ali Miah

Authorized Capital: Tk. 20,000.00 million

Paid-up-Capital: Tk. 9223.20million

Operating Profit: Tk. 355.02 million

Total Asset: Tk. 51,503.02 million

Number of Employees: 1724 Persons

Number of Shareholders: 126,681

Number of Branches: 64
mailto:[email protected]:[email protected]://www.eximbankbd.com/http://www.eximbankbd.com/http://www.eximbankbd.com/mailto:[email protected]

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Logo:

Vision & M ission:

The vision and mission of EXIM Bank are stated in the following bullets:

To be the finest bank in the banking arena of Bangladesh under the Shariah guidelines.

To maintain Corporate and business ethics.

To become a trusted repository of customers' money and their financial advisor.

To make our stock superior and rewarding to the customers/share holders.

To display team spirit and professionalism.

To have a Sound Capital Base.

To provide high quality financial services in export and import trade.

To provide excellent quality Customer service

Objectives:

The word EXIM implies the meaning of its operation. Though it is a new type of Bank in

Bangladesh, it is familiar with so many countries in the world such as Export Import Bank of

United States, Export Import Bank of Japan. Despite it is a local bank, it has spread its

operation in the whole world through foreign banking. To achieve the desired goal, it has

intention to pursuit of excellence at all stages with a climate of continuous improvement.

Because it believes, the line of excellence is never ending. It also believes that its strategic

place and business networking will strengthen its competitive edge over in rapidly changing

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competitive environment. Its motto is to provide quality services to the customers all over the

world. So the slogan of the bank- Local Bank Global Network is completely adjustable.

Corporate Objectives:

To provide high quality financial services that will enhance the well-being and success of

individuals, industries and business communities of the country.

Quality earning generated in core markets.

Strong capitalization.

Through commitment to the bank and the customers whom it serves, Southeast Bank wants to

become the best bank in Bangladesh. Thus it provides a very efficient customer service at a

competitive price.

Board of Dir ectors:

Name of Directors Position

Mr. Md. Nazrul Islam Mazumder Chairman

Mr. Md. Abdul Mannan Vice-Chairman

Mr. Md. Nazrul Islam Swapan Director

Mr. Mohammad Abdullah Director

Mr. Md. Altaf Hossain Director

Mrs. Nasreen Islam Director

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Mr. Mohammed Shahidullah Director

Mr. Md. Fahim Zaman Pathan Director

Mrs. Nasima Akhter Director

Mr. A.K.M. Nurul Fazal Director

Al-haj Md. Nurul Amin Director

Mr. Zubayer Kabir Director

Mrs. Rizwana K. Riza Director

Shariah Board:

The Board of directors has formed a Sharia Supervisory Board for the Bank. Their duty is to

monitor the entire Banks transactional procedures, & assuring its Sharia compliancy. This

Board consists of the following members:

Professor Moulana

Mohammad Salah

Uddin

Mr. Md. Nazrul Islam

Mazumder

Mr.kaji Masihur

Rahman

Mr. A.K.M Nurul

Fazal

Professor H.M. Shahidul

Islam Barakaty

Mr. Md. Abdul

Mannan

Mr. A.S.M. Fakhrul

AhsanMr. Zubayer Kabir

Hafez Moulana

Mufti Mohammad

Khair Ullah

Mr. Abdullah Al-

Zahir Sawpan

Moulana Mohammad

sadequl islam

The tasks of the Sharia supervisor in summary is replying to queries of the Banks

administration, staff members, shareholders, depositors, & customers, follow up with the Sharia

auditors and provide them with guidance, submitting reports & remarks to the Fatwa & Sharia

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Supervision Board and the administration, participating in the Banks training programs,

participating in the supervision over the AlIqtisad AlIslami magazine, & handling the duty of

being the General Secretary of the Board.

I slamic bank extend investment (loan) under the principles of the foll owings:

Mudaraba: Mudaraba means the hiring of capital. It is a contract in a profit sharing

where one party provides capital/funds and the other labor/work. Under this system,

banks provide the capital and clients provide expertise and profit is shared according to

agreed ratio.

Musharaka: This mode of finance is represented by two or more financiers in

contributions of equal or unequal ratios of capital to establish a new project or to

participate in an established one and all partners are entitled to share the total profits of

the venture according to ratio as mutually agreed upon allowing for managerial skills to

be remunerated.

Murabaha: About 70 to 80 percent of financial operations of most of the Islamic banks

belong to this segment. It enables the investor to obtain finished goods, raw materials,

machinery or equipment from the local market or through import by opening letter of

credit (L/C). Under this technique, bank buys the goods upon the request of the client and

then the customer form the bank purchases these goods with a fixed period of time or by

installment with a cost, which includes cost of goods plus mark-up profit.

Ijarah: Izarah financing under Islamic Shariah is same as the western concept of leasing.

In Ijarah financing, the bank finances capital goods to industrial project against payment

of a rent by installment.

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Bai-Muajjal: Bai Muajjal means sale for which payment is made at a future fixed date or

within a fixed period. Bai-Muajjal is treated as a contract between the bank and the client

under which the bank sells to the client certain specified goods at an agreed price payable

within a fixed future date in lump sum or by installments. By this credit sell bank

possession of the goods also.

Quard: is profit free loan to the holder of investment accounts of the bank on

compassionate ground.

Branches of EXI M BANK in Bangladesh:

EXIM has total 64 branches in Bangladesh and some other branches are waiting to open. Some

of the name are-

ASHUGANJ BRANCH ASHULIA BRANCH BANANI BRANCH BASHUNDHARA ROAD BRANCH BOARD BAZAR BRANCH ELEPHANT ROAD BRANCH FARIDPUR BRANCH GAZIPUR CHOWRASTA BRANCH GULSHAN BRANCH HEAD OFFICE CORPORATE

BRANCH

IMAMGONJ BRANCH KARWAN BAZAR BRANCH KERANIGONJ BRANCH MALIBAGH BRANCH MAWNA BRANCH MIRPUR BRANCH MOTIJHEEL BRANCH NARAYANGONJ BRANCH NARIA BRANCH NAWABPUR BRANCH NEW ESKATON BRANCH

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PALTAN BRANCH PANCHABOTI BRANCH PANTHAPATH BRANCH RAJUK AVENUE BRANCH SAT MASJID ROAD BRANCH SAVAR BRANCH SHIMRAIL BRANCH SONARGAON BRANCH UTTARA BRANCH AGRABAD BRANCH BAHADDARHAT BRANCH BASURHAT BRANCH CDA AVENUE BRANCH CHHAGALNAIYA BRANCH CHOWMUHANI BRANCH COMILLA BRANCH FENI BRANCH JUBILEEROAD BRANCH KHATUNGONJ BRANCH LAKSHAM BRANCH MODAFFARGONJ BRANCH PAHARTOLI BRANCH

SHITAKUNDA BRANCH SONAIMURI BRANCH THAKUR BAZAR KRISHI / SME

BRANCH

BOGRA BRANCH RAJSHAHI BRANCH BEANIBAZAR BRANCH BISWANATH BRANCH FENCHUGONJ BRANCH GOALABAZAR BRANCH GOLAPGONJ BRANCH MOULVI BAZAR BRANCH NOBIGONJ BRANCH SYLHET BRANCH JESSORE BRANCH KHULNA BRANCH BARISAL BRANCH DINAJPUR BRANCH RANGPUR BRANCH & so on

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F inancial Performance of EXI M BANK L imited:

In Bangladesh, there are many types of Banks, which are formed as commercial banks. But

above all, EXIM Bank of Bangladesh Ltd. is a new kind of private commercial bank. The full

abbreviation of EXIM Bank of Bangladesh Ltd. is Export Import Bank of Bangladesh Ltd.

Originally; the name of the bank was BEXIM Bank of Bangladesh Ltd. Later the management

of BEXIM Bank of Bangladesh Ltd. changed the name of the bank as EXIM Bank of

Bangladesh Ltd. because of the case lodged Beximco group of industries.

The bank has got lending personalities, businessmen and reputed industrialists as its sponsors.

The bank will be immensely benefited from the valuable advice of the experienced sponsors

of the bank. The late chairman of the bank contributed much for the solid foundation of the

bank at the initial stage. Unfortunately his untimely death caused a vacuum in the leadership

of the bank. But within the shortest possible time, the sponsors who in a position to select the

next chairman of the bank.

The Bank achieved satisfactory progress in all areas of its operation and earned as operating

profit of Tk. 355.02 million in 2012.

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PERFORMANCE OF EXIM BANK AT A GLANCE

Figure in crore

Sl.

NoParticulars 2007 2008 2009 2010 2011 2012

1.Authorized

Capital3500.00 3500.00 10000.00 10000.00 20000.00

2.Paid Up

Capital2142.2 2677.75 3373.96 6832.27 9223.56

3.Shareholders

Equity4042.53 4989.2 6717.21 12474.85 14484.22

4. Total Capital 4569.56 5763.89 7718.89 13957.40 16109.56

5.Statutory

Reserve1134.64 1532.55 2092.95 3154.76 3849.78

6. Total Asset 51503.03 68446.46 86213.37113070.9

8129874.42

7. Total Liability 47460.5 63457.26 79496.16100596.1

3115390.20

8. Deposit 41546.57 57586.99 73835.46 94949.40 107881.21

9.Investment(Ge

neral)40195.24 53637.68 68609.91 93296.65 99699.83

10.Investment(Sh

are &

Securities)

2457.72 2894.02 2189.54 4522.04 6734.03

11.Operating

income1908.2 2518.39 3181.78 5893.79 3955.82

12.

Foreign

Exchange

Business

117900.14 156434.57 162604.61227966.6

0254407.47

i) Import 61399.4 78540.49 83911.51129570.7

3128445.77

136837.1

8

ii) Export 55790.42 76465.62 76240.77 95395.45 122217.34161604.3

4

iii) Remittance 710.32 1428.46 2454.33 3036.42 3744.36 4368.27

13.

Capital

Adequacy

Ratio

11.23% 10.79% 11.18% 9.95% 10.88%

14. EPS 34.76 40.95 50.21 3.77 2.18

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15.ROA After

Tax2.00% 1.83% 2.19% 3.54% 1.65%

16.Price Earnings

Ratio (Times)9.02 7.85 7.52 11.34 12.76

17.

Investment as

a % of total

Deposit

96.75% 93.14 92.92 98.26 92.42

Working Experi ence at EXIM BANK:

EXIM Bank Limited is a scheduled commercial Bank established under the Bank Companies

Act, 1991, which incorporated as a Public Limited Company under the Companies Act, 1994

in Bangladesh on June 02, 1999 an commence on August 15, 1999. EXIM Bank Limited is

one of the leading private commercial bank having a spread network of 62 branches across

Bangladesh and plans to open few more branches to cover the important commercial areas in

Bangladesh by the end of 2013. Being able to work in this organization I find myself lucky. I

got the opportunity to work with different departments in Agrabad Corporate Branch of

EXIM Bank Ltd.

During the three months of my internship I was placed in the Agrabad Corporate Branch

under Mr. Md. Shahidullah, Executive Vice President, EXIM Bank Ltd. I heavily enjoyed the

working environment of this office. The work experience gave me a good idea of the overall

banking system of Bangladesh and taught me the professionalism at work place.

Job as an I ntern:

During the internship period at EXIM Bank Ltd, I was placed in different departments on

rotation basis. At first I was in General banking section for three weeks, then in Investment

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Unit for one week and finally in Foreign Exchange section for rest of the days. So it was a

great experience for me to work in different departments.

General Banking:

In General banking department I was place in all section. There I did different jobs as per the

officials requirement. Though I was not assigned for specific responsibilities, but I did

basically customer management related jobs. My job descriptions are mentioned below:

Helping clients to fill up account opening form and pay order form.

Writing pay order instrument.

Cheque Requisition

Cheque Received and Issue.

Cheque Book Delivery.

Pay Order Cancellation.

Clearing Cheque Received.

Cheque Clearing.

Outward Clearing.

Inward Clearing.

Remittance.

Provide customers product related information.

Provide assistance support according to the needs of the customer.

Helping officers for preparing Bangladesh bank report

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Investment Department:

Fill up CIB (Credit Information Bureau) form for clients.

Preparing Head Office forwarding for loan approval.

Making Customer Sanction Advice for disbursing loan amount, after getting Head

Office approval.

Preparing purchase order for Car Loan, Doctors Loan and Household Durables Loan

on the basis of clients quotation.

Foreign Exchange:

One of the most important parts in EXIM BANK Agrabad Corporate Branch is Foreign

Exchange Department that deals with import, export and post import financing. During my

internship period I was placed in import and foreign currency accounts section. My

responsibilities are mentioned below:

Opening Back to back L/C: Back-to-Back L/C is a secondary L/C opened by the sellers

Bank based on the original/master L/C to purchase the raw materials and accessories for

manufacturing of the export products required by the seller.

Payment Instruction: This is a universal system allowing importers bank to pass on a

payment order drawn on to the receiving bank of different country for execution. For

giving import payments from foreign banks, Payment Instruction is mandatory.

IMP Report: At the end of each month every commercial bank sent a report to

Bangladesh Bank on the basis of their import payment during the whole month.

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Crit ical Observation and Recommendation:

As a finance student, I always prefer to do a job in a financial organization. So, obviously

banks get the first priority to me. An internship in a bank, like EXIM BANK is a great way to

demonstrate profit in the sector and for me to learn more about the actual job I would be

doing on a routine basis.

During internship period, employees of EXIM BANK were very supportive & always helped

me to learn. But it was not possible for me to know about all the departments within 3

months.

In the follows I found out some problem over in the EXIM BANK as critical Observation, and

some recommendation regarding the observation:

During my internship I observed that work load in foreign exchange and Credit

department at Agrabad Corporate Branch was more than compared to the number of

working employees. As their work pressure was being doubled, so motivational levels

of those employees were getting down. So, the authority is required to be a little careful

about their employees. May be their current policy is not to recruit any new employee,

but they can solve this situation by transferring employees from other departments.

Otherwise the motivation level of the employee will be low.

In EXIM BANK Agrabad Corporate Branch, the place is not so big for the employees.

Sometimes the customers need to stand which could affect their reputation. So the

management needs to look after this.

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PartII

A STUDY ON PERFORMANCE

ANALYSIS: IMPORT DIVISION

OFEXPORT IMPORT BANK OF

BANGLADESH LIMITED

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Chapter 1: Introduction

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Introduction

1.1 I ntroduction & Background:

This internship report is originated as a partial fulfillment of the BBA program of

School of Business, Independent University Bangladesh. This report is a mandatory

requirement for BBA completion. I have worked at Export Import Bank of

Bangladesh Ltd. Agrabad branch for three months and the experience of working at

Export Import Bank of Bangladesh Ltd. has helped me to match our theoretical

knowledge with practical understanding. As an intern of Export Import Bank of

Bangladesh Ltd. i was provided with the topic A STUDY ON PERFORMANCE

ANALYSIS: IMPORT DIVISION OFEXPORT IMPORT BANK OF BANGLADESH

LIMITED.

The report basically deals with A STUDY ON PERFORMANCE ANALYSIS: IMPORT

DIVISION OFEXPORT IMPORT BANK OF BANGLADESH LIMITED. The foreign

exchange policy ofExport Import Bank of Bangladesh Ltd. is prepared in line with the

guidelines of Bangladesh Bank and for the guideline of the officers or executives in handling

affairs relating to foreign exchange in a disciplined way. Foreign exchange department plays a

very important role in bank as they are the medium of the foreign exchange business to the

customers. In this report I have tried to study the factors to evaluate EXIM Bank ltd with

other banks. I made a comparison study between activities of three banks.

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1.2 Rationale of the Study:

Banks are one of the most important financial institutions in the economy of any country.

They are the principle source of credit for millions of individuals and families and for many

units of government. Foreign exchange department is a crucial part of any bank because a

major portion of revenue comes through this unit. It facilitates the foreign trade and foreign

transaction which is arises for international business .specially for the Import Export and

Remittance Business. Banks provides various kinds of services for the importer and exporter

to make their business easier. It is totally impossible to do these kinds of business without the

help of bank. Here Bank is the middle man between the two parties; Exporter and Importer.

Banks open LC on behalf of importer against the exporter. A letter of credit is the amount of

credit that a lender is willing to extend to a borrower over a period of time, based on the

financial stability of the borrower. In some cases, a letter of credit involves the establishment

of a loan that is extended by a Bank for a specific purpose, with some sort of payments

expected along the way. At other times, the structure of the letter of credit is not tied to

specific purpose, with the credit being open to use as the borrower sees fit.

Bank took the risk in return of commission from the importers and also enjoys the investment

opportunity.

So through the foreign exchange department Bank maintain the inter-banking communication

worldwide and also ensure the flow of money circulation among the different countries safely

as well as smoothly.

As the foreign exchange department is one of the important divisions of the Bank, I choose to

do my report on the export and import division of the foreign exchange department.

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1.3 Objective of the Report:

General Objective:

To get practical exposure to organizational environment.

To present the system and methodology adopted in conducting day to day banking by

EXIM Bank.

To observe the foreign exchange operation of EXIM Bank Ltd and their services.

Specific Objective:

To get an overall idea of banking from bankers point of view.

To review the techniques used by the bank to make it lucrative.

An analysis and discussion of foreign exchange services of the bank with other

banks.

To evaluation of the present performance of the bank regarding foreign

exchange with others.

To identify the problems of EXIM Bank of Bangladesh Ltd.

Determining the drawbacks of the existing foreign exchange system.

Recommending some guidelines to improve the effectiveness of foreign exchange

services.

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1.4 L imi tations:

The present study was not out of limitations. But as an internee it was a great opportunity for

me to know the banking activities in Bangladesh especially of EXIM Bank. Some constraints

are appended bellow:

Lack of Information or Data:Adequate and in-depth well-organized information

is not available for access. Though the officials tried to assist, sometimes their

working pressure couldn't give me proper assistance what I needed. There is

some information which need special permission from top level is not always

achievable.

Time Constraint: It is something like impossible to cover the entire foreign exchange

banking services exploiting Ninety days time period while an employee or an officer is

awarded with one or two year probationary period to do his or her particular job.

Secrecy of Information: Some of the information needed to explore the current marker

scenario of the company was not disclosed.

Comparison Status: I have had no opportunity to compare the foreign exchange

banking system of the EXIM Bank with that of other contemporary and common size

banks. I had compared the banks that information is available. It was mainly because of

the shortage of time and internship nature.

Lack of Experience: Though I have prepared many reports before, I had no experience

of internship. So inexperience is one of the main constraints of the study.

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Chapter 2: Literature Review

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L iterature Review

2.1 Li terature Review:

Foreign exchange means foreign currency and includes any instrument drawn, accepted,

made or issued under clause (13) of Article 16 of the Bangladesh Bank Order, 1972] all

deposits, credits and balances payable in any foreign currency, and any drafts, travelers

cheque, letters of credit and bills of exchange, expressed or drawn in Bangladesh currency but

payable in any foreign currency.

Import of goods into Bangladesh is regulated by the Ministry of Commerce in terms of the

Import and Export (Control) Act, 1950, through Import Policy Order (IPO) in force and

Public Notices issued from time to time by the Office of the Chief Controller of Imports and

Exports (CCI&E). The instructions contained in this chapter apply to sales of foreign

exchange or transfers to non- resident taka accounts against import of goods into Bangladesh.

In terms of the Importers, Exporters and Inventors (Registration) Order, 1981 no person can

import goods into Bangladesh unless he is registered with the CCI&E or exempted from the

provisions of the said Order. Before Letter of Credit Authorization Form (LCAF) is issued or

Letter of credit (LC) is opened or remittance is made for imports into Bangladesh the AD

should verify that the importer is registered with the CCI&E or otherwise exempted from such

registration. The AD should ensure that the registration number of the importer is invariably

furnished on the IMP form. Where the importer is exempted from such registration, a suitable

mention of this fact should be made on the IMP form.
http://bdlaws.minlaw.gov.bd/pdf_part.php?id=415http://bdlaws.minlaw.gov.bd/pdf_part.php?id=415

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The ADs must ensure that they deal only with known customers having a place of business in

Bangladesh and can be traced easily should any occasion arise for this purpose. Opening of

LCs and payments for imports into Bangladesh should be made through an AD in the area

where the holder of the LCAF is resident. In case the importer is a new customer, the AD

should obtain certificate from the AD through which the applicant imported earlier to the

effect that no bill of entry is due/overdue for submission by the importer.

Bangladesh followed a fixed exchange rate system until 1979. Between 1979 and mid-2003,

the country pursued a managed floating exchange rate regime. Continual devaluation of the

domestic currency, in order to maintain a stable real exchange rate and avoid overvaluation of

the domestic currency, was the hallmarks of this regime. Since the end of May 2003,

Bangladesh has introduced a kind of clean floating exchange rate policy by making it fully

convertible on the current account, although capital account controls still remain. All the

exchange rate policies Bangladesh has taken, mainly, to accelerate exports, reduce extra

pressure of imports and thereby improve the balance of trade. The following studies validate

the above statement.

Islam (2003) states that the monetary authority determines the exchange rate policy aiming to

achieve two main objectives. First, the domestic target, which includes restraining inflation

rate, credit growth in the public and private sector, and the growth of liquidity and broad

money. Secondly, the external target, which includes promotion in international reserves

level, reduce the current account gap, control trends of exchange rate changes in the local

inter-bank foreign exchange market, and adjust the trends in the exchange rates of

neighboring trade partners: India, Pakistan and Sri Lanka.

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Hossain et al (2005) quoted from Rahman (1995) and Bayes et al (1995) that the main

objectives of exchange rate changes of Bangladesh were to: (i) promote international

competitiveness; (ii) encourage exports diversification; (iii) withdraw subsidies from exports

sector; (iv) discourage imports growth; and (v) rearrange resources in import substitutes and

export oriented sectors. Aziz (2003) paper states that the finance ministers of last few regimes

in their statement stated the following reason of devaluation of currency in Bangladesh: (i)

increase export, (ii) discourage import, (iii) protect local infant industries, (iv) encourage the

expatriates to send money to home, and (v) improve international reserve situation.

According to the Financial Sector Review (2006) of the Bangladesh Bank, the key aims of

exchange rate policy of Bangladesh are to:

I. Maintain competitiveness of Bangladeshi products in the world markets,II. Encourage remittances inflow from expatriate wage earners,III.Maintain stable internal price, andIV.Maintain a viable external account position.

Thus, all the studies and policy papers have directly or indirectly articulated the export-led-

growth and imports contraction targets as the main objectives of the exchange rate policy of

Bangladesh.

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Chapter 3: Methodology

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Methodology

3.1 Methodology of the Study:

Sources of Data: Both primary and secondary data are used in this report. There are many

tables and figures in this report which are based on both primary and secondary data. Primary

data are emphasized than the secondary data in this report.

Methods of collecting Data: The techniques of collecting primary data are not same as the

techniques of collecting secondary data. The different methods and tools of collecting primary

data and secondary data used in this report are described as follows:

CCoolllleeccttiioonn ooffPPrriimmaarryy DDaattaa:: Various types of the data and information were collected from

my practical experience and queries from the executives while doing my internship at The

EXIM bank Ltd. Information and data regarding Overview of the EXIM bank Limited,

various stages of import activities, performance measurement in of import activities,

significance and importance of various small segments of import process etc. were collected

from these sources.

CCoolllleeccttiioonn ooffSSeeccoonnddaarryy DDaattaa:: Data regarding the clearing process and performance

evaluation of The EXIM Bank Ltd. were collected from secondary sources like: Annual

Reports, Brochures, Manuals and Publication of The EXIM Bank Ltd., Bangladesh Bank

Library, News paper etc. were the major sources of secondary data.

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3.2 I nstruments Used in Analysis:

There are some tools which are used in analysis. There are various figures, tables, charts

which are easier to understand. These instruments are used in the analysis with their sources.

In some areas, I compare the performance of activities with other banks. But most of the cases

I used tables and charts to present the condition in an easier way.

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Chapter 4: Performance

Analysis: Import Division of

EXIM Bank

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Performance Analysis: I mport Division of EXIM Bank

Export Import Bank of Bangladesh Limited has diversified activities in retail banking,

corporate banking and international trade. From the very beginning it has obtained a solid

foundation in respect of foreign trade. Its total import, export and remittance for the year of

2012 were Tk.1368.37, Tk.1616.04 & Tk. 4368.27crore respectively. The EXIM Bank

Limited has established a modern dealing room for foreign trade money management.

SWIFT has already been introduced and installed at 20 A.D branches out of 62 branches to

speed up international transactions and parsing of L/Cs and it will be installed at all the A.D

branches of the bank shortly.

4.1 Perf ormance of EXIM BANK at a Glance:

Figure in crore

Sl.

NoParticulars 2007 2008 2009 2010 2011 2012

1.Authorized

Capital3500.00 3500.00 10000.00 10000.00 20000.00

2.Paid Up

Capital2142.2 2677.75 3373.96 6832.27 9223.56

3.Shareholders

Equity4042.53 4989.2 6717.21 12474.85 14484.22

4. Total Capital 4569.56 5763.89 7718.89 13957.40 16109.56

5.Statutory

Reserve1134.64 1532.55 2092.95 3154.76 3849.78

6. Total Asset 51503.03 68446.46 86213.37113070.9

8129874.42

7. Total Liability 47460.5 63457.26 79496.16100596.1

3115390.20

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8. Deposit 41546.57 57586.99 73835.46 94949.40 107881.21

9.Investment(Ge

neral)40195.24 53637.68 68609.91 93296.65 99699.83

10.

Investment(Sh

are &

Securities)

2457.72 2894.02 2189.54 4522.04 6734.03

11.Operating

income1908.2 2518.39 3181.78 5893.79 3955.82

12.

Foreign

Exchange

Business

117900.14 156434.57 162604.61227966.6

0254407.47

i) Import 61399.4 78540.49 83911.51129570.7

3128445.77

136837.1

8

ii) Export 55790.42 76465.62 76240.77 95395.45 122217.34 161604.34

iii) Remittance 710.32 1428.46 2454.33 3036.42 3744.36 4368.27

13.

Capital

Adequacy

Ratio

11.23% 10.79% 11.18% 9.95% 10.88%

14. EPS 34.76 40.95 50.21 3.77 2.18

15.ROA After

Tax2.00% 1.83% 2.19% 3.54% 1.65%

16.Price Earnings

Ratio (Times) 9.02 7.85 7.52 11.34 12.76

17.

Investment as

a % of total

Deposit

96.75% 93.14 92.92 98.26 92.42

I nterpretation:

It is clearly shown in the table the overall condition of the EXIM bank. The total deposit of

the bank is increasing. It is very necessary for any Bank. And the loan as a percentage of is

92.42% in 2011 thats mean that, 92.42% deposit is invested. As a result of that operating

profit of the Bank is also increasing. Bank allows two types of investment, general investment

and investment on Share and bond. Foreign Exchange business consisting import Export and

remittance volume also has a wonderful growth.

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4.2 Import Business:

The performances of the services provided by the bank in Import Division are shown below.

Letter of Credit

The following table and figure show last ten years volume of letter of credit of EXIM Bank:

Number of letter of credit

YearNumber of Letter

of CreditTk. in crore

2012 45125 157467

2011 39551 149871

2010 35627 134577

2009 32511 133245

2008 28334 124627

2007 25817 116215

2006 21555 111251

2005 16339 106245

2004 12692 102240

2003 10520 98156

Table: Letter of credit of EXIM Bank Ltd (Source EXIM Bank annual report)

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F igure: Number of L /C

F igure: L /C Opened (Tk. in Crore)

I nterpretation

If we see the last ten years number of opening L/C it increased.

The highest number is Tk. 157467 crore in 2012.

The lowest number is Tk. 98156 crore in 2003.

The growth of number of opening L/C in 2012 is 7.14%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Number of Letter of Credit 10520 12692 16339 21555 25817 28334 32511 35627 39551 45125

0

5000

10000

15000

20000

25000

30000

35000

4000045000

50000

NumberofLetterof

Credit

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Tk in Crore 98156 10224 10624 11125 11621 12462 13324 13457 14987 15746

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

TkinCrore

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Irrevocable Credit

The following table and figure show last ten years volume of irrevocable L/C of EXIM Bank:

Volume of irrevocable L/C

(Figure in Crore)

Table: Volume of irrevocable L/C (Source EXIM Bank annual report)

Year Irrevocable L/C

2012 1935.64

2011 1523.98

2010 2465.97

2009 1102.35

2008 825.91

2007 926.02

2006 745.27

2005 722.99

2004 500.93

2003 238.30

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F igure: I rr evocable L/C

I nterpretation

If we see the last 10 years volume of irrevocable L/C it increases almost every year.

The highest volume is Tk. 1935.64 crore in 2012.

The lowest volume is Tk. 238.30 crore in 2003.

The growth rate of volume of irrevocable L/C in 2012 is 2.66%.

0

500

1000

1500

2000

2500

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Irrevocable L/C 238.3 500.93 722.99 745.27 926.02 825.91 1102.35 2465.97 1523.98 1935.64

Irrevocable L/C

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Volume of Import

The following table and figure show last five years volume of import of EXIM Bank:

Volume of import

Taka in crore

Year Volume of Import

2012 136837.18

2011 128445.77

2010 129570.73

2009 83911.512008 78540.49

2007 61399.40

2006 49596.73

2005 41432.10

2004 26781.8

2003 19260.1

Table: Volume of import (Source: EXIM Bank annual report)

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F igure: Volume of Import

I nterpretation

If we see the last 10 years volume of import, it increases every year.

The highest volume is Tk. 136837.18 crore in 2012.

The lowest volume is Tk. 19260.10 crore in 2003.

The growth rate of volume of import in 2012 is 54.70%.

0

20000

40000

60000

80000

100000

120000

140000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Volume of Import 19260 26782 41432 49597 61399 78540 83912 12957 12844 13683

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4.3 A Comparison among Import, Export & Foreign Remittance Business:

A comparison among last five years export, import and foreign exchange transactions of

EXIM Bank is given below:

Taka in crore

Year Import Export Foreign

Remittance

2012 136837.18 161604.34 4368.27

2011 128445.77 122217.34 3744.36

2010 129570.73 95395.45 3036.42

2009 83911.51 76240.77 2454.33

2008 78540.49 76465.62 1428.46

2007 61399.40 55790.24 710.32

2006 49596.73 46234.59 343.78

2005 41430.1 31285.37 222.97

2004 26781.8 22418.4 113.79

2003 19260.1 15124.6 235

Table: Comparison among volume of Import, Export & Foreign Remittance (Source:

Annual report)

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F igure: Volume of Import, Export & Foreign Remittance

I nterpretation

If we see the last 10 years volume of export & import, it increases every year.

Volume of remittance is unstable but highest in 2012.

The highest volume of export, import & remittance is in 2012.

The lowest volume of export, import & remittance is in 2003.

The growth rate of export, import & remittance are 33%, 65% and 2% respectively in

2012.

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Import 19260 26782 41430 49597 61399 78540 83912 12957 12844 13683

Export 15125 22418 31285 46235 55790 76466 76241 95395 12221 16160

Remittance 235 113.7 222.9 343.7 710.3 1428. 2454. 3036. 3744. 4368.

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

AmountinCroreTk.

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From the above trend analysis it indicate that the EXIM Bank performance for import &

export business is quite sound. Its services in irrevocable L/C, number of L/C opening,

volume of import etc are improving year by year from 2003 to 2012.

So the overall performance in foreign exchange service of EXIM Bank Ltd is shown above, it

shows that export, import and foreign remittance business are improving year by year from

2003 to 2012.

Import65%

Export33%

Foreign Remittance2%

Figure : Percentage of Export, Import & Remittance

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4.4 Import Division of EXIM Bank L imi ted and Other Commercial Banks: A

Comparati ve Analysis

For the comparative analysis, four banks like South-East, Dutch-Bangla Bank Ltd, City Bank

Ltd and NCC Bank Ltd are taken here. A comparison of foreign exchange operation of EXIM

Bank with other private banks is shown below:

Letter of Credit

The following table and figure show different banks volume of L/C in 2012:

Name of the

Bank

EXIM Bank

Limited

Mercantile

Bank

Limited

Prime Bank

Ltd

South East

Bank Ltd

NCC Bank

Limited

Letter of

Credit (Tk.

in crore)

1935.64 1784.13 1924.67 1694.18 1451.46

Table: Comparison among banks volume of L /C in 2012

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I nterpretation

The EXIM Bank stands on the highest position in volume of L/C that is Tk. 1935.64

crore in 2012.

The NCC Bank stands on the lowest position in volume of L/C that is Tk. 1451.46 crore

in 2012.

It indicates that EXIM Bank have better acceptance by its corporate client.

Volume of Import

The following table and figure show different banks volume of import in 2012:

Name of the Bank

EXIM

Bank

Limited

Mercan

tile

Bank

Limited

Prime

Bank

Ltd

South East

Bank Ltd

NCC Bank

Limited

Volume of Import (Tk.

in crore)

136837.18 132096 139806 135125.12 117646.80

Table: Comparison among Banks volume of Import in 2012

0

500

1000

1500

2000

EXIM Bank

Limited

City Bank

Limited

Dutch-Bangla

Bank Ltd

South East

Bank Ltd

NCC Bank

Limited

(Tk.

incrore)

EXIM Bank

Limited

City Bank

Limited

Dutch-Bangla

Bank Ltd

South East Bank

Ltd

NCC Bank

Limited

Letter of L/C 1935.64 1784.13 1924.67 1694.18 1451.46

Letter of L/C

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I nterpretation

The Prime Bank stands on the highest position in import business that is Tk. 139806

crore in 2012.

The NCC Bank stands on the lowest position in import business that is Tk. 117646.80

crore in 2012.

The EXIM Bank stands on the second highest position in import business that is Tk.

136837.18 crore in 2012.

105000110000115000120000125000130000135000140000

EXIM Bank

Limited

Mercantile

Bank Limited

Prime Bank

Limited

South East

Bank Limited

NCC Bank

Limited

Tk.

incrore

EXIM Bank

Limited

Mercantile

Bank Limited

Prime Bank

Limited

South East

Bank Limited

NCC Bank

Limited

Volume of Import 136837.18 132096 139806 135125.12 117646.8

Volume of Import

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4.5 Comparative analysis of EXI M bank and with Social I slami bank and

Shahjalal I slami Bank

Import business for EXIM bank ltd is the. 136837.18 crore Social Islami bank is tk.124586

crore and Shahajalal islami Bank is tk.129875 crore in 2012:

Name of the BankEXIM Bank

Limited

Social

Islami

Bank

Limited

Shahjalal

Islami Bank

Limited

Volume of Import

(Tk. in crore)136837.18 134586 129875

Table: Comparison among Banks volume of Import in 2012

Volume

of Import

126000

128000

130000

132000

134000

136000

138000

EXIM Bank Limited Social Islami Bank

Limited

Shahjalal Islami Bank

Limited

Tk.

incrore

EXIM Bank Limited Social Islami BankLimited Shahjalal Islami BankLimited

Volume of Import 136837.18 134586 129875

Volume of Import

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I nterpretation

Growth rate of import Business is 54.70%. Of EXIM Bank, 53.86% for Social Islami Bank

and 48.76% for Shahajalal Islami Bank in 2012. Exim bank is in the first position. And the

growth rate of the EXIM bank is the highest.

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Chapter 5: Findings &

Recommendation

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F indings & Recommendation

5.1 F indings:

In recent years, the foreign exchange business of Export Import Bank of Bangladesh Ltd. is

increasing at a good rate though there are political and economical situation. EXIM Bank is

rendering a stable support to the national foreign exchanges business. Although the foreign

exchange business loading day by day there are also some obstacles around it they are as per

observations:

The EXIM Bank LTD, Agrabad branch is an AD (Authorized Dealer) branch.

EXIM bank does not provide assistance in relation with foreign exchange to the small

entrepreneur. Small entrepreneur has to keep higher margin sometimes 100% regarding

opening a L/C. It mainly give facilitate foreign exchange services to the big shots. As a

result their services are not diversified in to the small-scale portfolios. This may cause

high financial loss in future.

EXIM Bank takes 100% margin for the new importer to avoid the risk.

Lack of enthusiastic scheme for exporter & importer.

In comparison to the other bank like Southeast bank, Dutch Bangle, EXIM bank has

better import condition.

In comparison among the shariah based Bank EXIM Bank secured the second place.

EXIM Banks performance in volume of import are improving year by year but

compare to other private banks like South-East Bank Ltd, Prime Bank Ltd, Mercantile

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Bank Ltd and NCC Bank Ltd, it secure second position. But there also some other bank

where the performance of EXIM bank is below of them.

Amount of Deposit of the bank is growing year by year but the cost of deposit is

increasing. It means that the bank has to pay 13% or some cases 13.5% profit (profit) to

the depositor. On the contrary they take 16% profit (profit) from investor who takes

loan from Bank. It is clear that bank has only 3% in their hand in which they have to use

2% for maintaining the administrative cost and the rest 1% is their profit. So Bank

always want deposit with lesser cost or no cost thats mean they want deposit on current

A/C( 0% profit rate) and STD A/C(5.5%profit rate) but they have a big number of

deposit in Mudarabaha term deposit (MTDR) which profit rate is 13% .

In the year 2012 the import letter of credit and import volume growth was 54.70%.in

the year 2011 the growth was 19.71% and 2010 it was 23.80%.

Another threaten is the technology, the bank must be adjusted with new technologies

and information which they are trying. Otherwise the profitability of the bank may

hamper.

The marketing strategy adopted by the bank is effective but not efficient. The

appearance of the bank in the printing media and electronic media has become a matter

of fortune.

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5.2 Recommendations:

The entire department should be well informed regarding their goal and objectives. It is

essential to execute company objective into individual target.

There must be clear allocation of responsibilities, authority and accountability.

The bank should introduce more promotional activities.

The bank should take initiative to develop an effective research and development centre

to get innovative ideas to capture the competitive market.

Diversified schemes for export and import with fewer margins for L/C should introduce

by the bank for small entrepreneur to target a different segment to increase volume of

export and import.

Efficient and attractive marketing strategy and 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 foreign currency account should be relaxed

and make it easy and simple.

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Chapter 6: Conclusion

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Conclusion

6.1 Conclusions:

The commercial banking system dominates Bangladesh's financial sector. Bangladesh Bank is

the Central Bank of Bangladesh and the chief regulatory authority in the sector. The banking

system consists of nationalized commercial banks, private commercial banks, foreign

multinational banks and some specialized banks

There are huge number of nationalized and foreign bank operating their banking in

Bangladesh, The export Import Bank of Bangladesh Limited is promising one among these

banks. The growing competition bound EXIM Bank not only to compete with the other

commercial bank but also with the public banks. For the future planning and the successful

operation in achieving its prime goal in this current competitive market, this can be helpful in

international trade financing that suggested mostly for the betterment of country.

Foreign Exchange Business is the main source of the expansion of our economy. This is why,

the importance of the effective involvement of Bank in our economy in financing Import,

Export & Remittance business is enormous

The total process of import consists of some sequential steps. First the importer must be

registered with the Chief Controller of Import and Export (CCI & E). Secondly importer will

determine terms of credit to open L/C. thirdly, he will submit the proposal for L/C to the

issuing Bank. Then bank will ask for some important document like. L/C Application form,

Pro-forma invoice, Tax Identification number, Import registration certificate, Beneficiaries

credit report, VAT certificate etc. After submitting the document issuing bank open L/C for

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importer. Opening bank then issues credit by air mail/TELEX/SWIFT followed by L/C advice

as asked by the opener through his foreign correspondent or branch as the case may be, at the

place of beneficiary. Then the advising bank make know the exporter by the negotiating

Bank(the exporter Bank) about the L/C. Being confirm about L/C, exporter make the

shipment of goods and sent the documents (Bill of lading, Bill of Exchange, Commercial

Invoice, Certificate of Origin, Packing List, Shipment Certificate Pre-shipment Inspection

Certificate) to the issuing Bank through the negotiating Bank . After receiving the documents,

the opening banker scrutinizes the documents. If any discrepancy found, it informs the

importer. If importer accepts the fault, then opening bankers call importer retiring the

document by cash payment, or other ways ,if the importer make delay bank charge profit

( interest) at 16% of the due amount to the importer.

In todays banking sector, Foreign Exchange activities are very common. All most all the

commercial banks have this department. So the activities of the foreign exchange similar to

all. Mechanism of operation of the L/C and other related activities are well developed one.

The steps in opening L/C, which are followed by EXIM Bank ltd, are more are less same.

Some exception arises from the amount of margin, percentage of commission and over all

good relation with customer. EXIM Bank Limited tries to maintain good relation to customer

by providing some incentives. Like 10% or below 10% margin for the regular customer, less

percentage of commission for big amount of L/C, and Fast processing etc.

After analysis the whole import performance and Bank activities, we can see that Banks

import volume and the amounts of L/C are increasing year by year. And through this, the

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profit volume of the bank is also increasing. The increasing demand of the imported goods

and friendly relation with customer by the bank are the main reasons of this growth.

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BIBLIOGRAPHYSource:

Annual Report 2011

Annual Report 2010

Annual Report 2009

Annual Report 2008

Annual Report 2007

Annual Report 2006

Annual Report 2005

Annual Report 2004

Other Related Magazines Published by EXIM Bank Bd Ltd.

Reference books:

A Textbook on Foreign Exchange, Second Addition, L.R. Chowdhury

Websites:

http://bankinfobd.com/banks/index/page:1

http://en.wikipedia.org/wiki/List_of_banks_in_Bangladesh www.eximbankbd.com

Search engine:

www.google.com

www.yahoo.com
http://bankinfobd.com/banks/index/page:1http://bankinfobd.com/banks/index/page:1http://en.wikipedia.org/wiki/List_of_banks_in_Bangladeshhttp://en.wikipedia.org/wiki/List_of_banks_in_Bangladeshhttp://www.google.com/http://www.google.com/http://www.yahoo.com/http://www.yahoo.com/http://www.yahoo.com/http://www.google.com/http://en.wikipedia.org/wiki/List_of_banks_in_Bangladeshhttp://bankinfobd.com/banks/index/page:1

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