Internshp on Performance Evaluation of Exim Bank Ltd

Internship REPORT ON EXPORT goblinORT savings w limit LIMITED TOPIC Per remainsance rating of EXIM changebox Ltd. Special centralize on Foreign permutation theatrical role Department of stock validation Submitted by www. AssignmentPoint. com Date of Submission seventeenth may2012 LETTER OF TRANSMITTAL 17th May2012 To Lecturer Department of Business Administ circumscribe Subject Submission of the BBA Internship from each unity whole(prenominal)(a) oercompensate. de best Madam, It is a great Pleasure for me that I cede the opportunity to stick in the Internship name on death penalty evaluation of Export moment commit of Bangladesh Limited additional taper on contrary deputise partitioning.The internship platform gave me an opportunity to take up an exposure to the re dedicateing environment and on the stage mer dismisstile enterprise experience. I boast acquired a good chthonianstanding on statistical distribution channel of this multinational. I have tried my level best to in ascribable meticulous effort for the preparation of this bailiwick. Any shortcomings or fault whitethorn arise as my unintentional mistakes I impart wholeheartedly pleasant completely clarification and suggestion around each view and innovation disseminated by this makeup. Sincerely yours www. AssignmentPoint. com . SUPERVISORS CERTIFICATIONThis is to certify that student of discussion ingredient of BBA and major in finance, has completed the Internship Report titled Performance Evaluation of EXIM marge Ltd. Special Focus on Foreign Exchange Division success in spacious under my supervision. I wish her e satisfyingly success in life. top- nonchvisor Lecturer Department of Business Administration Acknowledgement Allah is manufacturer to mock internship report of my port of study of BBA plan. The accomplishment and completion of this report would non have been viable without the ploughsh atomic spell 18 of round people who to ok the conviction and effort to guide me in my report work.I deeply appreciate and cheer their suggestions and recomm deathations by dint of the entire course of my report work. I would corresponding to hail across my heartiest thanks and my sincerest gratitude to all those who directly/ indirectly contribute to the compilation of report. I am oddly grateful to my teacher, my internship supervisor. I could not prep atomic number 18 my Internship Report without her proper guidance and inspiration. Last but not to the lowest degree, I would like to give my thanks to all the members of EXIM posit Ltd. , Pantha elbow room set- ass because working with them was much(prenominal) a wonderful experience in my life that I pull up stakes neer forget.TABLE OF CONTENTS Particular Page No Executive digest VIII CHAPTER-1 portal 1 1. 1 Origin of the Report 2 1. 2 Objective of the Report 2 1. commonplace accusatory of the Report 2 1. 4 Specific objective of the Report 3 1. 5 Scope of the Report 3 1. 6 Limitations of the Report 4 1. 7 method actingological synopsis of the Study 4 1. Sources of In fix upion 5 CHAPTER-2 Economic Conditions In Bangladesh 6 CHAPTER- 3 Industry Analysis CHAPTER-4 Company Analysis 12 4. 1 Historical backrestground Of The Exim avow 13 4. 2 good deal 13 4. 3 Mission 13 4. 4 Objective 14 4. Strategy 15 CHAPTER-5 The General swearing Division 16 CHAPTER-6 gives And Advances Department 24 25 29 CHAPTER-7 Foreign Exchange Department 39 CHAPTER-8 warring position of Export mo margin of Bangladesh limited with Premier Bank limited 45 CHAPTER-9 uprise & monetary Analysis 51 mill Analysis Ratio Analysis CHAPTER-10 Recommendation & Conclusion 70 10. 1 Findings 71 10. 2 Recommendation 72 10. 3 Conclusion 73 Appendix 74 Bibliography 78 Executive Summary Bank is a advantage oriented phone line placement. The prime goal of this organization is make headwaying shekels as an early(a) business organization. Customer service is core production of the verify. correspond to Bank Company Act 1991 clause 5(3) Banker means that man-to-man or nominate of accepting for the purpose of lending or enthronisation of repair of storehouses from public, overdue on demand.To know your node is the main slogan in new modern Banking System providing customer serve. EXIM Bank Limited has earned a good reputation around Bangladesh. patronage competition among situates operating in Bangladesh two local and external, EXIM Bank has make remarkable take place, practically in e very(prenominal) sphere of its activities. Export aftermath Bank of Bangladesh Limited is a third generation hugger-mugger m wizymaking(prenominal) margin in the pastoral with praiseworthy operating motion. This study is in general found on performance evaluation of EXIM Bank Ltd. Special focus on foreign exchange division. In order to make fo reign the report more meaningful and presendable, use both the patriarchal and substitute sources of collection selective training. EXIM Bank Ltd. as already ramp uped a kindly reputation in the blasphemeing sedulousness of the country. At is oneness of the leading taut domain commercial sticks in Bangladesh. The bound has already shown a horrendous suppuration in the usefulnesss and puzzles sectors. To get competitive advantage and to come back feature service prudence pile establish training institute and confidence car should be introduced. The everywhere all performance of the bank is very good according to its competitive position. Within a close together(p) future EXIM bank will be a commercialise loss leader among the banks. 1. installation 1. 1 Origin of the Report In to sidereal sidereal days world tho academic education does make a student perfect to pass away competitive with the corporeal & Global business world.By doing an internship we apons platform, a student preempt get the opportunity to learn facing more or less(predicate) real business world. Internship is spiritedly needed to gain idea knowledge and experience. I am a BBA graduate from Private University in Bangladesh. It has designed its curriculum of the BBA Program such a way that the world(prenominal) standard graduates will be produced. After completing my 139 trust hours I Need to go for get ahead master written matter experience finished with(predicate) Internship program in a Business organization EXIM Bank Ltd. is a place where I have larn the business transactions. This organization has created a positive image to the customers mind by providing disclose service specifically I am telling about the Pantha cart track Branch.This set-back has introduced an exclusive modern banking outline that has got high market overlap and rating in the prominent business & banking avenue in Panthapath Bank way. As an BBA Internee patch I have trie d to hold in the curtilage with the competitive business environment on official Activities Culture philosophy Norms & Styles. It should be reflect the best at any topic of my headmaster life The Vice President & Manger is my overall Guide Philosopher & Superior. By receiving his all sorts of cordial support I have been availed the opportunity to work with this furcate for collar months from 10th January 2010 to 9th March 2010. I acquired idea about real business and merged world. 1. 2 Objective of the Report run aground objects to a large study on Banking System. 1. 3 General objective of the ReportThe report specification radixd on the overall banking performance evaluation and special focus on foreign exchange division of EXIM Bank Ltd. 1. 4 Specific objective of the Report ? To apply theoretic knowledge in the practical field. ? To make a bridge amid the theories and practical procedures of banking day-to-day operations. ? To know the polar modes of object, in EXI M Bank. ? Trend analyses of the contrastive scheme. ? To know the financial activity of bank. ? An overview on the major financial activity and practices of EXIM Bank ? To identify the strategies for EXIM Bank Limited, implementing in constant prosperity of the corporation ? Analyzing the performance fashions of EXIM Bank. To give some idea about its management and organization structure ? To present and overview of EXIM Bank Ltd. ? Compare the diametrical mode of scheme of Exim Bank with early(a) similar bank. 1. 5 Scope of the Report scratch line the report presents about the ongoing sparing stipulate of Bangladesh and the present condition of the banking sector of our country and next it gives some ideas about EXIM Bank Ltd. thus it analyzes the performance of the bank based on financial analysis and SWOT analysis. After that, it emphasizes or foreign exchange division. By reading this report one nates easily have some ideas about the performance and foreign exchange division of EXIM Bank Ltd. 1. 6 Limitations of the ReportAlthough in that respect were sincere co-operation from employees of EX1M Bank Limited, Panthapath Branch, they could not manage enough clipping to contribute the inevitable reading for the completion of the report. During the preparation of the report the sideline problems occurred that may be termed as the limitation or shortcomings of the study. Some of the limitations faced in preparing this report are ? Confidentiality the Banks constitution restricts disclosing some data ? Data about the performance of the bank of the course of study 2008 have not yet been expose by the bank. ? The study of such a short course of conviction is not free from limitation. ? The data relevant for the analysis report penning some cartridge clips could not be collected due to excessive year-ending work load at the branch. It is too much difficult to comment and suggest based on only the annual report and information collected from scripted documents. ? As some assumptions were made with the help of limited information, there may be some personal mistake in the report ? It was very difficult to collect the information from miscellaneous incumbents for the job restraint. 1. 7 Methodology of the Study Although there were so many limitations, it was tried to use both the primary and secondary sources of collecting information to make the report presentable with as less abstraction as possible. 1. 8 Sources of Information ii sources (i) Primary & (ii) Secondary A.Primary data Primary data is always know as survey data. This typewrite of data is collected from the respondent. For this personal consultation with the offices and customers have been conducted. B. Secondary Data Data that were published before for some other reason tail be collected using versed and external sources. i) Internal secondary data To furnish the report right on some papers has been collected from the officials of EXIM Bank Ltd. I nformation from annual reports journals, newspapers and other published documents have been used besides other published information about the organization, depth interview of the branch manager and second branch manager have besides taken. i) External Secondary data For better interpretation some data has been collected from Bangladesh Bank. Internet Browsing is also one source of external Secondary data. 2. ECONOMIC CONDITIONS IN BANGLADESH Bangladesh has an rural parsimoniousness with 32% of gross domestic product coming from the Agriculture Sector. Major sylvan products are rice, jute, wheat, potato, pulses, tobacco, tea and sugarcane. . The country is the largest occupationer of jute and jute goods in the world. Readymade garments are among the around exportable items. Tea, frozen shrimp, fish, leather goods and handicrafts are also major exportable commodities. The country has under gone a major shift in its sparing philosophy and management in recent years.At Banglade shs birth, the country embraced socialism as the economic ideology with a dominant role for the public sector. But, since the mid-seventies, it undertook a major restructuring to screens establishing a market saving with dialect on private sector-led economic ontogeny. During the nineties, the country has completed a major stabilization program which has reduced largeness as rise up as fiscal and current tarradiddle deficits and open up a healthy foreign exchange guard position with low and sustainable debt-service liabilities. With modest economic growth, the basic indicators associate to health, education and poverty have all shown sustained improvement.According to a domain of a function Bank estimate, Bangladesh has the 36th largest economy in the world in monetary value of GNP based on the purchasing power parity method of valuation, and the 55th largest in terms of nominal GNP in U. S. Dollars. Bangladesh economy grew on an average at above 6. 0 per centum in the la st four years up to FY07 . According to the provisional estimates of the Bangladesh politics agency of Statistics (BBS),real GDP recorded a strong growth of 6. 5 pct in FY07,which is marginally lower than 6. 6percent recorded in FY06 . This growth was commendable as it was discoverd in challenging environment marked by high and volatile oil price ,phasing out of the MFA quota, labour unrest in the garment industry and confrontational political situation of the country in the setoff half of FY07. With reasonable support from agriculture sector, the 6. percent real GDP growth was underpinned mainly by industry sector and services sector. The expansion was broad based, registering positive growth by all sectors and sub-sectors of the economy. Spurred by a robust 9. 5 percent growth in industry sector and 6. 7 percent growth in services sector, GDP growth during the year was also aided by 3. 2 percent growth in the agriculture sector. The domestic savings- investiture gap was met wi th net divisor income from overseas which increased by 37. 0 percent in FY07 from 4. 4 percent in FY06 reflecting higher(prenominal)(prenominal) savings growth. The domestic savings enthronisation gap was met with net factor income from abroad which increased by 37. 0 percent in FY07.The rising trend of inflation of FY06 as measurable by CPI continued in FY07 mainly due to higher prices of oil and some other evented goods in the international market, torturing in the supply side factors and demand pressure generated from excess currency supply . Slower import of consumer necessities pulling their domestic prices heightened the price pressures. yearbook average CPI (base FY96) inflation as of end June 2007was 7. 20 percent, compared to 7. 16 percent as of end June 2006. There was notable increase of nutrition prices component of CPI inflation from 7. 8 percent as of end June 2006 to 8. 1 percent as of end June 2007. Maintaining a favorable investment environment and a sound macroeconomic management are valuable to strengthen private sector investment in the economy.In view of median(a) term outlook of sustainable economic growth and low inflation for world and south Asian economies and assuming continuation of prudent policies and progress in advancing structural tidy ups, the near and medium term economic prospects of Bangladesh appear favorable. 3. INDUSTRY ANALYSIS Bank plays an weighty role in this modern world. The take onment of industries and business sectors of a country mainly depends on good banking system. The industries and businessman are taking short and long term bring from banks. In the modern world international businesses are fully depended on banks. Without sound banking system no country can develop in international trade. Bank constitutes an big segment of the financial understructure of any country. The economic history of many countries reveals that economic development and growth of financial infrastructure go hand in h and.Financial system of a country is the heart of a countrys economic system as it connects suppliers of the funds and demanders of fund, which is needed to produce economic goods. It also provides a large arena of practice opportunity. As Bangladesh is containing a bank base economy, its economic development is largely depended on the development of banking sectors. Bangladesh appeared as a new nation on the world map in the year 1971. After independence financial institutions, especially banks played a bouncy role in re-constructing the war-torn economy of Bangladesh. Bangladesh Bank is the central bank of the country and is in charge of monetary policies of the Government and controls all commercial banks. Development and growth of our banking system may be divided into three parts. The performance of our banking system during 1972 to 1982 was commendable in respect of expending electronic network and providing easy acknowledgment to the socially desirable sectors but equally thwarting with regard to keeping validity and customer services. The second phase from 1983 to 1989 was characterized by denationalisation and privatization of banking system without broad-basing the prudential and information regulatory framework however, these measures of denationalization and privatization could not bring the viability and operable efficiency of banking system.Under the above circumstances and with the recommendation of piece Bank, a Financial Sector Reform come out (FSRP) was undertaken in 1989 by the government, which can be identified with third phase of the development of our banking system. The government of Bangladesh has also enacted some important acts namely financial institutions act 1993, Securities and Exchange Commission act 1993, the companies act 1994 and recently Bankruptcy act 1997. The present day banking structure has evolved over several decodes. The far- drawing program of economic reform is being carried out at present towards efficie nt utilization of fright resources and the development of private entrepreneurship. Banks are financial service firms, producing and selling professional management of the publics fund as salutary as performing many other roles in the economy.Banks are those financial institutions that offer the widest rang of financial functions of any business firm in the economy. Competition is strengthened by the gate of new and innovative provides of financial services, through the development of Money market and not bad(p) market. Money market is designed for the making of short-term bestows where individuals and institutions with impermanent surplus of funds meet borrowers who have temporary hard currency shortages. Capital market is deigned to finance long lends where individuals and institutions with temporary surplus of finds meet borrowers who have temporary change shortages. Capital market is designed to finance long-term investments.Private sector commercial banks are private companies operate under the legislative framework, which covers both Company Act, and Banking Company Act, under the ongoing financial liberalization, EXIM Bank emerges as a new Bank in private sector to operate at the Banking arena of Bangladesh It is committed to provide high quality financial services/ products to contribute to the growth of GDP of the country through stimulating trade and commerce, accelerating the pace of industrialization, boosting up export, creating employment opportunity for the meliorate youth , poverty alleviation, raising standard of living of limited income congregation and overall sustainable socio-economic development of the country. 4. COMPANY ANALYSIS 4. 1 diachronic BACKGROUND OF THE EXIM BANK EXIM Bank- Export Import Bank of Bangladesh Ltd. was named at first as BEXIM Bank BEXIM stands for Bengal Export Import of Bangladesh. This new commercial Bank was opened in August 03, 1999 with some new innovative visions in customer services.The Bank rec eived the certificate of incorporate no. C-37864 (2164)/99 under the commencement of the business on the same day by the office 150(2) under companies Act. A part from the head office in Dilkusha C/A, it stared its first local branch in Motijheel C/A simultaneously in order to provide all kinds of Banking support to the clients. On December 02, 1999 the second branches both in Dhaka City and other cities. Now it has twenty-five branches in the country. 4. 2 VISION The gist of EXIM bank vision is Together Towards Tomorrow. Export Import Bank of Bangladesh Limbed believes in togetherness with its customers, in its march or the road to growth and progress with services.To achieve the desired goal, there will be pursuit of uprightness at all stages with a climate of continuous improvement, because, in EXIM Bank, they believe, the line of purity is never ending. Banks strategic plans and networking will strengthen its competitive edge over others in rapidly changing competitive envir onments. Their personalized qualities services to the customers with the trend of constant improvement will be cornerstone achieve their operational success. 4. 3 MISSION The bank has checked out the following corporate objectives in order to image smooth achievement of its goals- ? To be the closely caring and customer friendly and service oriented bank. ? To create a technology base most efficient banking environment for its customers ? To ensure morality and transparency in ail levels To ensure sustainable growth and establish full value of the honorable shareholders and ? Above all, to add effective contribution to the national economy Eventually the bank also emphasize on ? Provide high quality financial services in export and import trade ? Providing efficient customer service ? Maintaining corporate and business ethics ? Being trusted repository of customers money and their financial advisor ? Making its products superior and rewarding to the customers ? Display team spiri t and professionalism ? straits Capital Base ? Enhancement of shareholders wealth ? Fulfilling its social commitments by expanding its gentle and humanitarian activities 4. Objective Bangladesh is now integral part of global market. As such there is an urgent requirement for Bangladesh to place the traditional banking pretties in harness with the global trades of a free market economy by following international banking customs, practices and standards. Today clients of a bank in Bangladesh are exposed as well as international markets. They have to checkout up conflict with their practice and standards to meet the demands of achieving harmony in the high standards of a free economy. EXIM Bank fully appreciates the importance and implication of the rapidly emerging competition in the banking and finance sector of Bangladesh.It intends financing its customer conform to to his or her place in the market. In this regards EXIM Bank emphasizes in its employment the software expressio ns of human resource capability. It also emphasizes competence among its banking professional to leave to vary customer requirements to the modern term. The objectives of EXIM BANK is not only to earn profit but also to keep the social commitment and to ensure its co-operation to the person of alt level, to the businessman, industria itemisation specially who are engaged in establishing large-scale industry by consortium and the agro-based export oriented medium and wee scale industries by self inspiration.EXIM BANK is always ready to maintain highest quality of services by upgrading banking technology prudence in management and by applying high standard of business ethic through its established commitment and heritage. EXIM BANK is committed to ensure its contribution to national economy by increasing its profitability through professional and disciplined growth system for its customer and by creating corporate culture in international banking area. 4. 5 Strategy In order to re ach the goal it is important to build strategy and follow the policies. If it can select the appropriate strategy and choose the right policy, it will be very easy to come to its desired position.The distinguishing attribute of policy is to set the over all boundaries for activities. According to this system when the bank was started it has to decide what kind of business it is going to be in. The Bank also has to decide on its growth and communicate through am system of major objective of the business is to reach the goal, to reach the desired position from the current status. There might be a number of ways to reach there and its has to be decided which path would be easier to reach the objective. So the authority has no decided which path they select to proceed. The following figure can be explained absolvedly. Slogan of the EXIM Bank Local Bank Global NetworkThe world EXIM implies the meaning of its operation. by means of 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 the United States, Export Import Bank of Japan. Despite it is a local Bank, It has spread of its operation in the whole world through foreign Banking. To achieve the desired goal, it has intention to pursuit f excellence at stages with a climate of continuous improvement. Because it believes, the line of excellence is never ending. It also believes that its strategic plans and business networking will strength its competitive edge over in rapidly changing competitive environment.It motto I to provide quality service to the customers all over the world so, the slogan of the Bank Local Bank Global Network is completely adjustable with its operation. THE GENERAL BANKING DIVISION Internship has provided the opportunity to coordinate the theoretical knowledge that one has gathered in MBA Class with the practical field. Although three months is not a very long period to learn the whole thing that unremarkably occurs in an organization. The supervisor divided this report into three parts. 1) The general banking plane section 2) The enthronisation subdivision 3) The foreign Exchange department. Learning experience from General Banking DivisionThe main business of this Division is dealing with Deposit. There are two types of Deposit in this Branch and General Banking division as the following section 1. Deposit section 2. distinguish discussion section 3. remission of sin section 4. clearing section 5. Customer Service section 6. hard currency section and 7. Information Technology section Task I Handled in this Division is 1. Opening nibs 2. Opening Monthly saving scheme, 3. Modaraba status Deposit Account reliable 4. Deposit foreign current Deposit Account 5. Modarada short notice Deposit (STD). 6. persistent Deposit, Steady Money. 7. adopt sketch (D. D) 8. Telegraphic ravish (T. T) 9. grantment Order (P/O) 10. Travelers Check (T. C) 1. Issuing Check. Pay Order (PO) Pay order is one kind of unconditional promissory note or instrument that is issued by the Bank to the customer. The difference between check and pay order is the mode of en grammatical casement. Demand Draft Demand Drafts are made for the manoeuvre of money from one place to other in the form of cheques through a particular Bank, which can be pursued right way. The Bank issues DD for their outer district branches. Telegraph/ Telephone Transfer When a received centre of money is asked by the client to transfer from one branch to another than it is called telegraph/ telephone transfer. For TT, there is a particular from.When the form is fill up mighty and submits the sum total by the applicant, the genuine police officer issued a toll memo to the occupation for their confirmation. lssuing cheques Books chequebook issue is a very sensitive because most of the fraud occurs through this checkbook. Customer requiring check books to fill out requisition ship. For saving bills 10 pages check book issued and CD/SOD/ CC nibs issued 25 and 50 pages checkbook. interchange Section In clearing section the work is to clear the cheques, DDs and POs through Bangladesh Bank that are submitted for money collection. Everyday morning signaling another in the evening called return house.In the hose all the Banks interpretive program sit together and exchanges their money receive instrument of their particular bank to clear the paper and transfer to money the paper partlcular accounts. Type of Clearing There is two type of clearing 1) In- hold 2) Out Ward In- ward Those substantiations or instrument of EXIM, which are submitted to other banks for collections are called In Ward Clearing. Out- Ward The cheques of other banks that are submitted to the EXIM for collections are called out-ward Clearing. exchange Section Cash is the main element of all financial activities. The hard currency section of any branch plays very significant role. Its very sensitive place of the branch, beca use it deals with most liquid assets. The EXIM Bank Mirpur Branch has an equipped silver section.This section receives cash from depositors/Client and pays cash against cheques draft, compensation order and pay to slip over the counter This section deals with all type as of negotiable instruments and in includes volt. Used as the store of cash instrument, the main functions of the sections are cash receipt and cash disbursement. Accounts Opening Section This section deals with gap of different types of accounts. It is also deals with effect of books and different deposit boos to the different accounts waster. A customer can open different types of accounts through this department such as l. Current Account 2. pitch Account 3. Fixed deposit account (FDR) 4. trivial term Deposit (STD) 5. Monthly saving final cause (Money Grover) 6. Monthly income scheme (Steady money) 7. shiny saver system 8. Multi plus saving Account 9. Super saving scheme 10. Education saving scheme EXIM Ba nk gives special importance various deposit schemes are l. Monthly saving Scheme (money Grower) 2. Monthly income scheme (Steady Money) 3. Multi plus savings A/C 4 Super saving scheme 5. Double benefit Scheme 6. Smart saver Scheme 7. And Education saving Scheme Types of Accounts with bournes and Conditions Current (CD) Account Current account is purely a demand deposit account. There is no restriction on withdrawing money from the account.It is basically warrant when funds are to be collected and money is to be pay at frequent interval. Some Important Points are as follows- borderline coal scuttle deposit of TK. 1000/- is require There is no pulling out limit. No bet is given upon the deposited money Minimum Tk. 1000/= eternal sleep moldiness always maintain all the age. Savings (SB) Account The bank provides savings account services for the ease of its clients. It offers both personal and corporate Savings Account to its clients in every branch. Hence, there is a res triction on breakups in a month. Heavy withdrawals are permitted only against introductory notice. Some Important Points are as follows- Minimum opening deposit of Tk. 5000/= is required Minimum Tk. 1000/= balance must always maintain all the time Withdrawal nitty-gritty should not be more than 1/4th of the total balance at a time and limit twice in a month. If withdrawal amount best 1/4th of the total balance at a time no interest is given upon the deposited money for that month. The current rate on deposit amount is 6%. Closing of saving accounts will cost 300tk to a customer. rook Term Deposit (STD) Account Normally various big companies, organizations, Government Departments keep money in STD account. Frequent withdrawal is discouraged and requires prior notice.The deposit should be kept for at least seven days to get interest. The interest offered for STD is less than that of savings deposit. beguile is calculated based on daily minimum product and paid two times in a year. Interest rate is 4. 50%. Call Deposits (Money at Call) Sometime the banker secures funds from the money markets usually from other bankers against receipt to meet his purely tepmorary shortage of funds. These debts are due instantly at call. When the money market is tight such derosits attract higher rate of interst and then to be do by as bankers borrowings as call imparts. Account opening To dill with the bank individuals need to have an account first.The particulars are essential for identification of the account holders individually so that the banker can discharge his obligations to every one correctly and to the extent due. Documents required for opening account ? Individual / Joint Account 1. Introduction of the account. 2. dickens photographs of the signatories punctually evidence by the introducer. 3. Identity (copy of passport). 4. Joint Declaration constitute (For joint a/c only). 5. Employees corroboration (in case of service holder). ? Partnership acco unt 1. Introduction of the account. 2. Two photographs of the signatories duly attested by the introducer. 3. Partnership letter duly signed by all partners (Sign should be similar as stated in Partnership achievement). 4. Partnership Deed duly certified byNotary public. 5. Registration (If any). 6. Up bodyguardd look at license. ? Proprietorship account 1. Introduction of the account. 2. Two photographs of the signatories duly attested by the introducer. 3. Valid copy of Trade License. 4. surface stamp. 5. TIN number certificate. 6. Identity (Copy of passport). 7. Permission letter from DC/ Magistrate (in case of newspaper) 8. ? Limited company 1. Introduction of the account. 2. Two photographs of the signatories duly attested by the Introducer. 3. Valid copy of Trade License. 4. Board resolution of opening A/C duly certified by the Chairman/Managing Director. 5. Certificate of Incorporation. 6.Certificate of Commencement (In case of Public limited company). 7. Certified (joint stock) true copy of the Memorandum and Article of Association of the Company duly attested by Chairman or Managing Director. 8. List of directors along with epithet & specimen contact. 9. in style(p) certified copy of Form xii (to be certified by register of joint stock companies) (In case of Directorship change). 10. Rubber Stamp (Seal with designation of each person) 11. Certificate of alteration (In case of Insurance Company Obtained from department of Insurance from the Peoples Republic of BD). ? Club / societies account 1. Introduction of the account. 2.Two photographs of the Signatories duly attested by the introducer. 3. Board Resolution for Opening A/C duly certified by President/ Secretary. 4. List of Existing Managing Committee. 5. Registration (if any). 6. Rubber Stamp. 7. Permission letter from Bureau of N. G. O. (In case of N. G. O. A/C). Savings Scheme Monthly Income Scheme Multiplus Savings Smart saver Super Saving Scheme Monthly Savings Scheme (Money Growe r) Hajj Scheme Finance/Loans Corporate Finance Industrial Finance Lease Finance rent Purchase Finance Commercial Loans Project Finance Syndicate Loans sell Loans Mortgage Loans Loan against Share and Securities Account Opening Procedures Step 1 The account should be properly introduced by Any one of the following An existing Current Account holder of the Bank. Officials of the Bank not on a lower floor the rank of an Assistant officer. A respectable person of the locality well known to the Manager/Sub-Manager of the Branch concerned. Step 2 Receiving filled up occupation in banks prescribed form mentioning what type of account is desired to be opened. Step 3 The form is filled up by the applicant himself / herself Two copies of passport size photographs from individual are taken, in case of firms photographs of all partners are taken Applicants must submit required documents practise must sign specimen signature sheet and give mandate In troducers signature and accounts number affirm by legal officer Step 4 Authorized policeman accepts the application Step 5 Minimum balance is deposited only cash is accepted Step 6 Account is opened and a Cheque book and pay-in-slip book is given Account Sections Daily function The ordinary daily tasks of the accounts department are as follows 1. Recording the daily minutes in the cash book 2. Recording the daily transactions in general and subsidiary ledgers 3. Preparing the daily position of the branch comprising of deposit and cash 4.Preparing the daily relation of affairs showing all the assists and liability of the branch as per ledger and subsidiary leader separately. 5. Making payment of all expenses of the Branch 6. Recording inters branch fund transfer and providing accounting preaching in this regard. 7. Checking whether all the vouchers are correctly passed to ensure the Conformity with the bodily process Report if other unfermented(p) making it correct by calling the various(prenominal) official to rectify the voucher. 8. Recording of the vouchers in the Voucher Register 9. packing of the correct vouchers according to the debit entry voucher and the assign voucher. Periodical Tasks The workaday periodical tasks performed by the department are as follows. 1. Preparing the monthly compensation statements for the employees 2.Publishing the basic data of the branch 3. Preparing the weekly position for the branch this is sent to the Head Office to maintain Cast Reserve requirement 4. Preparing the monthly position for the branch, this is sent to the Head office to maintain statuary liquidness requirement. 5. Preparing the weekly position for the branch comprising of the break up of sector wise deposit, quotation etc. 6. Preparing the weekly position for the branch comprising of the denomination wise statement of cash in tills. 7. Preparing the budget for the branch by muddle the target regarding profit and deposit so a s to take necessary steps to general and mobilize deposit 8.Preparing an Extract which is a summary of all the transactions of the Head Office account with the branch to reconcile all the transaction held among the accounts of all the branches. General Account General account is important one, which has to be maintained by each branch. Indeed general account is are record of Oregonian and responding transactions among inter- branches of the same bank. All types of assets and liabilities of one branch with another one are settled through this account. Branch can know how much the bank is liable with Head Office. The debit and doctrine balance shows assets and liabilities of the respective branch. Statement or AffairsAccounts section prepares the statement of affairs for finding the profit/ loss as well as amount of assets and liabilities of concerned branch per day Theoretically, it is called financial statement and has tow parts 1. Income and Expenditure Account 2. Statement of Ass ets and Liabilities Amortization and derogation Amortization is the allocation of the cost of an intangible asset to expense for example, prepay expenditure, prepaid insurance and good will etc Amortization schedule is ascertain by the decision of management. Establishment This section deals with employees salary, much type of sexual expenses such as purchase of pen, paper equipment, machinery and payment of labor live and employee conveyance. In cause of leave of absence employee collects prescribed from this section. LOANS AND ADVANCES DEPARTMENT IntroductionBanking is essentially a business dealing organization with money and credit like all other business activates. Banks are profit-oriented organization. A bank invites its find many ways to earn more and more profit and most of its income is derived from lends and ascents. Bank makes adds and communicates to traders, Businesspersons, industrialists and many other persons against security of some cautions policy and sou nd lending principle in the matter of lending. EXIM Bank is a lending bank in bestows and advances and it grant loans in various sectors especially in industry, trade and commerce. Types of loans and advances There may be different types of loans and advance given from the commercial banks such as EXIM Bank Ltd. Of our country.Loans and advances may be in the following types 1. Cash credit 2. Overdraft 3. House Building loan (General and Staff) 4. Transportation (Car) loan (only for senior staff) 5. Consumer credit Scheme 6. Loan against import Merchandise (LIM) 7. Loan Bills purchases Documentary (LBPD) 8. Loan against Other Securities (LAOS) 9. Term Loan Brief Idea about the different types of loans and advance Cash opinion (CC) Cash credit is an arrangement by which the customer is allowed to borrow May up to a creation limit. This permanent arrangement and the customers need not to draw the advocateed amount of money at a time. The borrower can draw the money when required.Th e borrower can put back any surplus, amount, which he/she may he affect frequently. Intersect is charged only to the amount with drawn and not he whore amount sanctioned cash credit arrangement is usually divide into two ways such as 1. Cash credit salute 2. Cash credit hypothecation Cash Credit Pledge In case of cash credit pledge possession of the goods dealings to bank and ownership of the of the goods belongs to borrower and bank the possessions of the goods as primary security. The goods storied in go down under lock and recognise by direct supervision of the bank. If the borrower wants to sell any potion of the pledged goods he/she permission of bank with returning the value of the loan amount.It is therefore regarded as the most secured type of advance. Cash Credit hypothecation In case of cash Credit hypothecation possession of the goods not transferred to the bank and therefore such and advance is no better than a clean loan, such an advance can thus only be granted to a person in whose integrity the barked has full confidence cash credit in the form of Hypothecation is normally accompanied with mortgagee of immovable properties. The pray/ borrower possesses the lock and signalise of the down. The formalness of opening cash Credit There intending cash credit holder should submit the following documents and being fill up properly 1. Stock repot, rend receipt 2. Trade license 3.Up to date income evaluate clearings certificate 4. Charge documents 5. Letter of Continuity 6. Letter of arrangement 7. DP (Demand Promissory) note 8. Letter of guarantee 9. Letter lien 10. Limit sanction advice 11. Non-Encumbrance Certificate Observing the documents the bank authority prepares a cc proposal from that contains the following information 1. spirit of business 2. Banking with EXIM 3. Transition with CD account by the client 4. Allied deposit with SB/STD account. 5. Number of qualifying (s) how many times the CC holder made his/her Account zip that means deb it balance equal to credit balance. 6. Recycling it is ration of total credit summation to the limit.If the ratio is Higher it is better from bankers spirit levels of view. 7. trance over in the account 8. By the encasement authority the bank holds the power to encase the FDR the encasement authority at any time in case borrowers failure to repay the loan amount with interest in due time. Based in the above-mentioned information the dealing officer of the loans and advances department prepares recommendation about the prospect of granting the CC loan to the client. Overdraft Overdraft is an arrangement between the banker and the customer by which the letter is allowed to withdraw over his/her credit balance in the current account up to an hold limit.The borrower is permitted for draw and repays any number of times, provided he total amount overdrawn point not exceeds the agreed limit. Here the interest is charged only for the amount withdrawn over the limit. Not for the whole am ount. Overdraft is divided into tow categories Secured overdraft (SOD) brief overdraft (TOD) Secured overdraft It is allowed against the full security (i. e. FDR, ICB unit Certificates). Temporary Overdraft It is allowed to the customer for a very short period of time. But EXIM bank deals only secured overdraft. Car Loans This is a special type of loan, which is only provided for the staff of EXIM Bank.Usually AVP and above level officers get this kind facility. This loan is reimbursed on instrument tooshie and repayable aft(prenominal) each month. House Building loan (General and Staff) General house build loan is providing into two sectors Generally Staff Naturally house twist loan is paid for the construction of commercial building, and owners etc, procedures for sanctioning house- building loan as follows- Application for sectioning loan Application properly filled up for credit facilities supplied by the bank. Personal net worth statement each director Enquiry form Required papers for sanctioning HB loan Copy of general power of attorney Copy of veridical certificate Copy of engineers estimate Copy of bemuseed cash pay heed Loan (General) In case of loan the banks sanction some of money for a certain period of time. The enter amount is one time disbursement and paid in cash or credit loan A/C. The interest is charged on full sanctioned amount 16%. The bank generally sanctions loan to establish industry. These types of loan are granted for capital expenditure such as purchase of land, meanness of factory building, purchase of new machinery and modernization of plant. The borrower cannot withdraw this type of loan once repaid in full or in part again. Formalities for extending project loan Loan application formAfter receiving the loan application from the borrower the branch scrutinizes the application whether it is viable or not. Loan application from contains the following particulars amongst other detail below Particular description of the Project. Nature of the Project Detail information about the borrower Statements of assets and liabilities of the borrower with declaration Detail information about proposed products, machinates and manpower etc Project cost and source of fund. Market for the proposed project. feasibleness report This report is provided by the borrower, which includes the following aspects of the project Marketing aspect Technical aspect financial aspect Managing aspect Socio-economic aspect 1) variety Procedure 1.Categories of Loans- At first all loans and advances will be assort into four categories for the purpose of classification, such as- (a) Continuous Loans (b) Demand Loans (c) Fixed Term Loans and (d) Short Term and Agriculture & Micro Credit. (a) Continuous Loans The loan A/C in which transaction may be made deep down a certain limit and have an exit date for full adjustment will be treated as continuous loan. Exp CC, OD etc. (b) Demand Loans The loan that becomes repa yable by the party on demand by his bank will be treated as demand loans. If any contingent or any other liabilities are turned into forced loan will also be treated as demand loan. Exp. LIM, PAD, FBP, IBP etc. (c) Fixed Term Loans The loan which is repayable with in the specific time period under a peaceful repayment schedule will be treated as Fixed Term Loans. d) Short Term Agriculture & Micro Credit Short Term Agricultural Credit will be as per list issued by Agricultural Credit and Specialized Programmers Department (ACSPD) of Bangladesh Bank under the Agricultural Credit Programmed. Credit in the Agricultural sector repayable indoors 1(one) year will also be included herein. Short Term Micro Credit includes any micro credit not exceeding TK. 25,000. 00 and repayable within 12 months. 2) Basis for Loan miscellany (A) Objective Criteria (1) Past due/ over due In this point we saw four factors those are a) Any continuous loan if not repaid / renewed within the fixed expiry dat e for repayment be treated as past due/ overdue from the following day of the expiry date. ny demands loan if not repaid/ rescheduled within the fixed expiry date will be treated as past due/ overdue from the following day of the expiry date. b) In case any installation of a fixed term loan (repayable within fives) is not repaid within the fixed expiry date, the amount of outstanding installment will be treated as past due/ overdue (defaulted instilment) from the following day of the expiry date of the particular installment. c) Incase of any installment or part installment of a Fixed Term Loan (repayable over five years) is not repaid within the fixed expiry date, the amount of unpaid installment will be treated as past due/ overdue after 6(six) months of the expiry date of that particular installment. ) The Short Term Agriculture & Micro Credit if not repaid within the fixed expiry date for repayment will be considered as past due/ over due (defaulted instilment) after 6(six) mo nth of the expiry date. (B) Qualitative belief If any uncertainty or doubt arises in respect of recuperation of any continuous, Demand or Term Loans the same will have to be classified as Sub- Standard or Doubtful or Bad/ Loss. Considering the merit of the A/C on the basis of qualitative judgment be it classified or not on the basis of objective criteria. The Bank will classify on the basis of qualitative judgment and can be- classify loans if qualitative improvement does occur.But if a loan classified by Bangladesh Bank inspection Team, the same can be de- classified with the approval of the Board of Directors of the Banks. CIB Report Before making credit report to the head office the lending branch takes the credit information to the borrower from the CIB (credit Information Bureau) of Bangladesh Bank and other financial institutions. For obtaining this report the branch sends enquiry form to CIB duly filled in particulars of the borrower. The report id divided into 5 segments. Project appraisal It is the reinvestment analysis done by Banker before a project is approved. Project appraisal in the Banking sector is needed for following reasons To ensue repayment of the Bank finance To achieve the organizational goals To establish industrialists in a country. The main tasks of the project appraisal is to justify the soundness of an investment by the Banker by means of a capital and systematic of the different elements of the Project For this purpose Banks use two types of analysis Lending pretend Analysis (LRA) Spread Sheet Analysis (SSA) Lending risk analysis Lending risk analysis is modern methodologies, which describes how to access the risks that are infixed any credit extension and how to access the likelihood that the customer will repay a loan. The LRA form contains 16 pages to analysis different categories of Risks.The Financial Sector Reform project introduces the lending Risk analysis format in 1993. LRA is a standardize format for analyzing the credit worthiness of a borrower and the likelihood that the borrow will repay. Bangladesh bank issued a letter number BCD (p) 611/13/290 dated 17-07-1994, which now makes it mandatory for the commercial Banks to implement the LRA come out to credit analysis prior to extending credit facilities to a Borrower. The modern concept of lending is purpose and production oriented and not security oriented. The emphasis should be given not any security rather on he likelihood of repayment, the credit worthiness of the customer soundness and viability of the business etc. Lending PrinciplesThe Principle of lending is a collection of certain accepted time tested standards, which ensure the proper use of investing fund in a profitable way and its timely recovery. disparate authors describe different principles for sound lending. 1. Safety 2. Security 3. Liquidity 4. adapted yield 5. Diversity Process of investiture Heads Characteristics Application Applicant applies for the Investment in the prescribed form of the bank describing the types and purpose of Investment. Sanction collect credit information about the applicant to determine the credit worthiness of the borrower. Sources of information Personal Investigation, Confidential Report from other bank, Head Office/Branch/Chamber of Commerce. CIB (Central Information Bureau) report from Central Bank. Evaluation of contour with its lending policy. Evaluating the proposed security. LRA is must for the Investment exceeding one crore as uniform by Bangladesh Bank. If everything is in accordance the Investment is sanctioned Documentation because bank prepare a Investment proposal which contains terms and conditions of Investment for approval of H. O. or Manager. Takes the necessary papers and signatures from borrower Disbursement An Investment Account is opened. Where customer A/CDr. Respective Investment A/C -Cr. FOREIGN EXCHANGE DEPARTMENT Introduction One of the largest businesses ca rried out by the commercial bank is foreign trading. The trade among various countries fills for close tie-in between the parties dealing in trade. The situation calls for expertise in the field of foreign exchange operations. The bank, which provides such operations refereed to as rending international Banking operation. Mainly trisections with overseas countries are respects of import, export and foreign remittal come under the preview of foreign exchange transaction, and international trade demands a flow of goods from seller to emptor of payment from buyer to seller.In this case the Bank plays a vital role to bridge between the buyer and seller. Foreign Exchange Mechanism in Flow Chart gross sales/Purchase guarantee Issues L/C Forward Forward documents Makes payment Makes payment Foreign Exchange department of EXIM Bank is department of all departments. This department handles various types of activates by three separate sections 1. Import Section 2. Export section 3. Forei gn Remittance. Import Section The functions are of the section is mainly to deal with various components such as Letter of Credit (L/C) Payment against Document (PAD) Payment against Trust Receipt (PTR) Loan against trade Merchandise (LIM) Letter of Credit (L/C) DefinitionA letter of credit can be defined as an arrangement where in a Bank Guarantee on behalf of these customers to make payments to the donee upon presentation of documents undertake in the credit. Parties involved in L/C Opener/ vendee/Importer The person who opens the L/C is known as opener/ buyer/importer of the L/C. The buyer and the seller conclude a sales contract providing for payment by docudrama credit. 0pening Bank The Bank subject the L/C in favor of exporter is known as opening Bank. The opening bank opens L/C on request of importer according to application of the importer. Advising Bank The Bank through L/C is advised their factor (correspondent Bank) abroad.The duty of the advising Bank is to aut henticate the message so that is to the seller can act on it without any fear of forgery etc. donee Seller and exporter in whose favor the L/C are opened. The beneficiary is normally the seller of good who receive payment under documentary credit. If has compiled with terms and conditions thereof. Negotiating Bank The Bank that is authorized to handle (purchase) the documents under the L/C in the exporting country is known as negotiating Bank. L/C will stipulate either a notified bank to carry on (restricted L/C) or any bank can negotiate in the sellers country (unrestricted L/C). Reimbursing Bank The Bank that is (by the L/C issuing Bank) to effect reimbursement is known as reimbursing bank.Reimbursing Bank authorized to honor the reimbursement claims in settlement of negotiation/ accepting/ payments lodged with its by the pay/ negotiating/ accepting Bank. Confirming Bank A Confirming Bank is one which adds the guarantee to the credit opened by another bank. Therese undertaking t he responsibleness of payment/ negotiating/ acceptance under the credit in addition to that of the issuing Bank. A confirming Bank normally does so it requested by the issuing Bank. Types of L/C Revocable/ irrevocable L/C Confirmed/ unconfirmed L/C. Transferable L/C Back to back L/C Acceptance L/C Revolving L/C Red clause L/C Green close L/C The EXIM Bank basically deals with irrevocable L/c. which can not be amended or cancelled by the issuing Bank at any moment and without prior to the beneficiary.It also deals back to back L/C, which is the letter of credit, provided by the exporter to the import the raw materials from abroad in order to produce the exportable commodity for the importer. Procedures for opening L/C Application for opening L/C An importer who is desirous to import goods from foreign country will apply Issuing Bank for opening a L/C. The importer will provide an application mentioning the following aspects 0 Full particulars of applications Bank account. 0 Types of business 0 Historical footing 0 Amount of required L/C limit 0 Amount of L/C margin. 0 Term of payment 0 Name of imported goods 0 Repayment schedule and source of fund Document schedule and source of fund.An importer or L/C opener has to submit the following documents 0 Application from (provided by the Bank) 0 Import registration certificate 0 Pro-forma invoice 0 Four sets of IMP from 0 Insurance cover not 0 VAT registration number 0 Tex registration number 0 Letter of credit authorization form Examination for opening L/C Application must be carefully checked by the concerned officer considering the facts mentioning below ? The terms and conditions of L/C applications are consistent with exchange control and import trade resolution UCPDC 500. ?Illegibility of imported goods ?The L/C must be opened in favor of importer ?That is signed by the importer and agreed with the terms and conditions. Indenting registration number ?Goods are not of Israel and vassals to be used are not of Israel ? Insurance cover note with date of shipment. ?Whether RC is up to date or not ?Whether IMP form is duly filled up and singed ?The imported goods are marketable After scrutinizing all thee legal aspects necessary entry is given to the margin register and charge, flush and margin in realized. Transmitting the L/C The L/C is transmitted to the advising Bank for advising the L/C to he beneficiary. L/C is generally transmitted through tested Telex of Fax. Before contagious disease of final examination of the L/C contents is