SOUTHEAST UNIVERSITY (SEU)

INTERNSHIP AFFILIATION REPORT ON

Foreign Exchange Transaction in Nationa !an" Lt#$

An Internship Report Presented to the Faculty of Business Administration in Partial Fulfillment of the Requirements for the Degree of Bachelor/Masters of Business Administration

S%&er'ise# !()

*s+,as-ia Shar.een$

S%/.itte# !()

An0ar% A1i.$ I2 34565565555557$ *a8or in -inance$

2ate o- S%/.ission) 59:59:456;

INTERNSHIP AFFILIATION REPORT ON

Foreign Exchange Transaction in National Bank Ltd

LETTER OF TRANSMITTAL

Date:May,05 2013 Mr. Moudud R Tareque, FCMA Director Office of Place e!t a!d Alu !i "OPA# $$A %ro&ra A erica! i!ter!atio!al u!i'er(ity ) $a!&lade(*

Subject: Submission of Internship Affiliation Report.

Dear +ir,
It is a great pleasure for me to su mit the Internship Affiliation Report on !Foreign "#change $ransaction in %ational Ban& 'td($ Prepared ased on the e#perience that I ha)e gathered during my internship period(

, *a'e tried y -e(t effort to &at*er all !ece((ary i!for atio! to t*e co!cer!ed %art( of t*e re%ort to e!ric* it. , -elie'e t*at, .it*i! y li ited /!o.led&e t*i( re%ort %ro'ide( a -a(ic u!der(ta!di!& a-out t*e forei&! e0c*a!&e tra!(actio! occur( a!d t*e &e!eral -a!/i!& (y(te u(ed i! t*e or&a!i1atio!. , *o%e t*at you .ould -e /i!d e!ou&* to acce%t y re%ort a!d o-li&e e t*ere-y. T*a!/i!& you. +i!cerely your(, A!.arul A1i ,D 2o3 2010010000004 Ma5or) Fi!a!ce
So%theast Uni'ersit(

Letter of En orsement *

T*e ,!ter!(*i% Affiliatio!6Re(earc* Re%ort e!titled Forei!n E"chan!e Transaction in National #an$ Lt *a( -ee! (u- itted to t*e Office of Place e!t 7 Alu !i, i! %artial fulfill e!t of t*e require e!t( for t*e de&ree of $ac*elor of $u(i!e(( Ad i!i(tratio!, Ma5or i! FINAN%E, a!d Faculty of $u(i!e(( Ad i!i(tratio! o! &'( Au!ust( )*&+ -y An,arul

A-im ,D:

)*&**&******..T*e re%ort *a( -ee! acce%ted a!d Defe!(e Co ittee for e'aluatio!.

ay -e %re(e!ted to t*e ,!ter!(*i%

"A!y o%i!io!(, (u&&e(tio!(

ade i! t*i( re%ort are e!tirely t*at of t*e aut*or of t*e re%ort. T*e

8!i'er(ity doe( !ot co!do!e !or re5ect a!y of t*e(e o%i!io!( or (u&&e(tio!(#.

9999999999999999999999

/Ms.0asfia Sharmeen1 ,!ter!(*i% +u%er'i(or

Acknowledgement

Fir(t of all, it i( t*e Al i&*ty, t*e Merciful a!d t*e $e!e'ole!t A::A; .*o &i'e( u!der(ta!d .*at .e do a!d fi!i(* t*e (tudy %ro%erly.

e t*e (e!(e to

, a

o(t &rateful to our e(tee ed (u%er'i(or Ms.0asfia Sharmeen for %ro'idi!& u( detailed

feed-ac/ a!d tec*!ical ad'ice o! t*i( re%ort. <it*out *i( &uida!ce a!d (u%%ort it .ould !ot -ee! %o((i-le for u( to co %lete t*i( re%ort !icely.

,a

al(o to e0%re((

y &ratitude to t*e

a!a&e e!t of 2atio!al $a!/ :i ited for &i'i!&

e t*e

o%%ortu!ity to co %lete

y i!ter!(*i% i! t*eir or&a!i1atio!. My e0tre e &ratitude &oe( to Mr. S2e

Shahinur Islam( +e!ior =ice Pre(ide!t of >ul(*a! $ra!c*, for *i( cordial (u%%ort a!d &uida!ce.

, .ould al(o li/e to re!der our (i!cere t*a!/( to M . S2e

Shahinur Islam "A((i(ta!t =ice e &uida!ce,

Pre(ide!t#, M . Shahjalal "Fir(t ?0ecuti'e officer#, Md. Rasel "5u!ior officer#, M .3ashim 4E"ecuti5e officer6( Mrs.Sa ia Afro- of 2$: >ul(*a! $ra!c*, for %ro'idi!& i!(%iratio! a!d a-o'e all fle0i-ility of .or/. Fi!ally, , .ould li/e to t*a!/ all t*e re(%o!de!t( a!d i!ter'ie.ee( .*o(e t*ou&*t(, idea( a!d i!for atio! ade t*i( re%ort %o((i-le.

?0ecuti'e +u

ary

, %orta!ce of -a!/i!& (y(te i! a cou!try i( i!crea(i!& day -y day. ,t i( quite i %o((i-le for a!y cou!try to de'elo% i! i!du(trial a!d co ercial (ector .it*out (ou!d -a!/i!& (y(te i! oder! eco!o ic era. Forei&! e0c*a!&e o%eratio! i( o!e of t*e (i&!ifica!t fu!ctio!( of t*e -a!/. ,t %lay( a 'ital role i! o'erall eco!o y of t*e cou!try. $a!/ collect( i!for atio! fro !u erou( (ource( relati!& to co(t a!d re'e!ue fro forei&! e0c*a!&e o%eratio!. T*rou&* e0%ort, i %ort, a!d forei&! re itta!ce( Forei&! ?0c*a!&e de%art e!t of t*e -a!/( ear!( t*eir %rofit. $a!/( i( t*e i!ter ediary of all e0%ort, i %ort, a!d re itta!ce acti'itie(. >lo-ali1atio! of !atio!al eco!o ie( *a( &i'e! a -oo(t to i!ter!atio!al trade. T*e (eller a!d t*e -uyer i! a! i!ter!atio!al tradi!& tra!(actio! u(t a&ree for a %roduct or it( quality, %rice etc. ?!ter i!to a (ale( co!tract, (%elli!& out %reci(ely (*i%%i!& a!d deli'ery detail(, ter ( of %ay e!t, required docu e!tatio! a!d ot*er related i((ue( i!cludi!& di(%ute (ettle e!t %rocedure a!d le&al fra e.or/ a'aila-le. T*e i %act o! trade tra!(actio!( curre!cy %olicie( of t*e i %orti!& a!d e0%orti!& cou!trie( a!d ri(/( a((ociated .it* t*e , fraud %o((i-ilitie( i! t*e tra!(actio! or i! docu e!t( are al(o !ece((ary. A cou!try ca!!ot lo!& co!ti!ue to *a'e a deficit o! forei&! curre!t accou!t -ut a fa'ora-le -ala!ce of %ay e!t( o! curre!t accou!t ay co!ceal a *ea'y ad'er(e -ala!ce of %ay e!t( .it* o!e i!di'idual cou!try or &rou% of cou!trie(. Forei&! ?0c*a!&e Mar/et allo.( curre!cie( to -e e0c*a!&ed to facilitate i!ter!atio!al trade a!d fi!a!cial tra!(actio!(. After %a((i!& a lot of %*a(e(, %re(e!t forei&! e0c*a!&e ar/et *a( e(ta-li(*ed a!d %erfor i!& to -e!efit all t*e %artie( i!cor%orated *ere. T*ere are -a(ically t*ree %layer( i! t*e forei&! e0c*a!&e ar/et of $a!&lade(*. T*o(e are t*e $a!&lade(* $a!/, aut*ori1ed dealer(, a!d cu(to er(. T*i( %a%er di(cu((ed re&ardi!& t*e related i((ue( of forei&! e0c*a!&e acti'itie( of !atio!al $a!/ :td.

Table of Content
Chapter I. A B C II. A B C III. A B IV. A B C V. A B VI. VII. VIII. 0.%0'/DI%= 2$A$"M"%$2 Recapitulation Recommendation for Future 2trategic Action 2/=="2$I.%2 F.R IMPR.5"M"%$ R"F"R"%0"2 APP"%DI0"2 +, +'"22.%2 '"AR%"D Implications to /ni)ersity Implications to .rgani9ation .thers +1 +1 +1 A0$I5I$I"2 /%D"R$A6"% 8or&3Related .rgani9ation3:ide .ther rele)ant acti)ities 0.%2$RAI%$2 A%D PR.P.2"D 0./R2" Academic Preparation Identified in the .rgani9ation I%$R.D/0$I.% Rational of the 2tudy Bac&ground of the 2tudy . 4ecti)es Content Page 11 12 1231117 17 1; 1< 21 *1 *, *7 *7 *<

Chapter 1
INTRO2U<TION
i) Rationa e -or Se ecting the Re&ort) For the completion of this internship
program I ha)e een placed in a an& named %ational Ban& 'td( My study conducted on the practices in !foreign e#change department> of the an&( Apart from the educational &no:ledge the study :ill put e#tra :eight regarding the practical field and real life acti)ities (Moreo)er the study also carried out )alue to the technical method and operations of the o)erall process in the an&ing industry in Bangladesh( "#cept this? gathered practical :or& e#perience :ill help me to utili9e in my future career(

ii) !ac"gro%n# OF NATIONAL !AN, LI*ITE2)

%ational Ban& 'imited is one of the leading pri)ate commercial an& ha)ing a spread

net:or& of 1-- ranches and 17 2M"/Agro Branches @total 1;* ser)ice locationsA across Bangladesh and plans to open fe: more
Ban& 'imited has een licensed

ranches to co)er the important

commercial areas in Dha&a? 0hittagong? 2ylhet and other areas in 211*( %ational
y the =o)ernment of Bangladesh as a 2cheduled commercial an& in the pri)ate sector in pursuance of the policy of li erali9ation of an&ing and financial ser)ices and facilities in Bangladesh %ational Ban& 'imited is a customer oriented financial institution( It remains dedicated to meet up :ith the e)er gro:ing e#pectations of the customer ecause at %ational Ban&? customer is al:ays at the center(

%ational Ban& 'imited has its prosperous past? glorious present? prospecti)e future and under processing pro4ects and acti)ities( "sta lished as the first pri)ate sector usinessmen and leading industrialists of the country( an& fully o:ned y Bangladeshi entrepreneurs( $he mem ers of the oard of directors are creati)e

%ational Ban& 'imited :as orn as the first hundred percent Bangladeshi o:ned Ban& in the pri)ate sector( $he President of the PeopleBs Repu lic of Bangladesh Custice Ahsanuddin 0ho:dhury inaugurated the an& formally on March 2;? 1<;* ut the first ranch at +;? Dil&usha 0ommercial Area? Dha&a started commercial operation on March 2*? 1<;*( $he 2nd Branch :as opened on 11th May 1<;* at 6hatungon4? 0hittagong( At present? %B' has een carrying on usiness through its 1-- ranches and 1, 2M" / Agri Branches @total 1;1 ser)ice locationsA spread all o)er the country( Record gro:th of %B' is 17,(,1 percent :ith $&( ;?;1<(+1 million preta# profits in the year under re)ie: o)er the preceding year( $he net profit after ta# and pro)ision stood at $&( -?;-1(*+ million :hich :as $&( 2?171(+7 million in the pre)ious year registering a 2*1(*+ percent rise( $he total deposits increased to $&( 112?+71(;* million eing **(*7 percent increase o)er the preceding year( 'oans and ad)ances stood at $&(<2? 11*(,- million in the year under report :hich :as $&( -,?12<(2;< million representing +1(2- percent rise o)er the preceding year( Foreign trade stood at $&( 1++?2,,(11 million in 2111 compared to $&( 11,?<*<(11 million? increased y 2+(+2 percent compared to that of the pre)ious year( During 2111? the an& handled in:ard remittance of $&( +<?1+,(*1 million? 11(7* percent higher than that of the pre)ious year( Return on "quity @R."A registered a 77(;+ percent rise o)er the preceding year(

2EPOSITE
$he deposit ase of the an& registered a gro:th of **(*7 percent in the reporting year o)er the last year and stood at $&(112? +71(;* million( "#pansion of ranch net:or&? competiti)e interest rate and deposit products contri uted to the gro:th( $he customers of the an& :ere indi)iduals? corporations? financial institutions? go)ernment and autonomous odies etc(

Ex&ort an# i.&ort

In harmony :ith earlier yearsB trend? %ational Ban& 'imited :as intensely acti)e in international trade during the year 2111( $he Ban& put forth e)ery possi le attempt to e#pand its e#ternal usiness y esta lishing '0? underta&ing e#port ill negotiations? reali9ation of e#port proceeds? ( $he Ban& opened a total 2+?77, '0s amounting to /2D 1?*<1(1* million for facilitating import trade in 2111( $he main commodities :ere capital machinery? ra: cotton? scrap

<

)essels? rice? :heat? edi le oil? petroleum products? yarn? fa rics? garment accessories and other consumer items(

$he Ban& has een nurturing the e#port usiness enthusiastically since its inception( In 2111 it handled 22?1*, e#port documents )aluing /2D -<1(7< million :ith a gro:th of 2+ percent o)er the last yearBs )olume of /2D ,,<(7; million( "#port finances :ere e#tended mainly to readymade garments? &nit:ear? fro9en food and fish? tanned leather? handicraft? tea? 4ute goods etc

Net &ro-it a-ter tax

"fficient Board and management? strong capital ase? :ide ranch net:or&? support from other sta&eholders helped %B' in re)enue earnings and profit ma#imi9ation( During the period %B' earned an operating profit of $&( ;?<+1(-1 million in 2111 :hich :as $& *?*<7(,1 million in 211< registering a gro:th of 1-*(1, percent( %et Profit after ta# gre: y 2*1(*+ percent to $&( -?;-1(*+ million in 2111 after ma&ing pro)ision for loan loss and ta#ation(

In#%str( 0ise oans an# a#'ances

%ational Ban& 'imited formulated efitting credit ris& management criteria and strategies for creation of alanced lending mi# in its portfolio oth for short and long term :ith the ottom line o 4ecti)e to ensure ris& ad4usted rate of return in its credit transactions( 'oan and ad)ances in the year 2111 registered an increase y +1(2-D to BD$ <2?11*(,- million from BD$ -,?12<(2< million in 211<( During the year 2111? the credit e#pansion mainly :as in ilateral pro4ect finance? syndicate finance? e#port? import and trade finance as :ell as 2M" and Agro finance( $he an& as a matter of policy prioriti9es to ma&e lending in the thrust sectors of the economy so as to ma&e distincti)e )alue addition in o)erall economic uplift of the country(

Re.ittance
%ational Ban& 'imited e#erted highest emphasis on o)erseas operation and handling a si9ea le quantum of home ound foreign remittance since eginning( By this time? it has earned a reputation as the leader in pro)iding such remittances not only among the customers ut also among the regulators( In 1<;, the Ban& esta lished e#change house :ith equity o:nership and management in O a!. +u-(eque!tly a!y arra!&e e!t( *a'e -ee! ade .it* differe!t e0c*a!&e *ou(e( a!d al(o -y e(ta-li(*i!& (u-(idiarie( a-road for e0%a!di!& t*e $a!/@( o'er(ea( !et.or/ i! %lace( .it* *i&* co!ce!tratio! of $a!&lade(*i e0%atriate(.

11

%ational Ban& 'imited in 1<<* introduced 8estern /nion Money $ransfer? a glo al leader in money transfer ser)ices in Bangladesh remained lone agent till 2112( It :as a rea&through in getting prompt payment of foreign remittances y the eneficiaries :hich encouraged remitters to use legal channel( As a contri utor of national economy? %B' is relentlessly :or&ing to ease the flo: of in:ard foreign remittance( $he an& introduced different products and technology including .nline Ban&ing? "F$ and other automated de)ices for uninterrupted speedy payments( Furthermore? %B' entered into a deal :ith A2A? a leading %=. ha)ing *?111 outlets throughout the country and also :ith 2ocial Islamic Ban& 'imited @2IB'A to pro)ide in:ard remittance products on ehalf of %B'( In 2111? foreign remittance rought through %B' :as /2D 71;(-7 million :ith an increase of /2D -2(71 million o)er the pre)ious year sho:ing a gro:th of <(71D( <AR2 PRO2U<TS

<re#it <ar#
%B' 0redit 0ard is accepted in many merchant outlets around the :orld( %B'Es :ide range of merchants include hotels? restaurants? airlines? F tra)el agents? shopping malls and departmental stores? hospitals F diagnostic centers? 4e:elers? electronics F computer shops and many more(

Po0er <ar#
%B' Po:er 0ard is the first de it card for :hich customer donEt ha)e to maintain any account :ith %B'Es any ranch(

*ission o- N!L
"fforts for e#pansion of our acti)ities at home and a road y adding ne: dimensions to %B' an&ing ser)ices are eing continued una ated( Alongside? %B' also putting highest priority in ensuring transparency? account a ility? impro)ed clientele ser)ice as :ell as to their commitment to ser)e the society through :hich they :ant to get closer and closer to the people of all strata( 8inning an e)erlasting seat in the hearts of the people as a caring companion in uplifting the national economic standard through continuous up gradation and di)ersification of %B' clientele ser)ices in line :ith national and international requirements is the desired goal they :ant to reach(

11

Vision o- N!L
"nsuring highest standard of clientele ser)ices through est application of latest information technology? ma&ing due contri ution to the national economy and esta lishing oursel)es firmly at home and a road as a front ran&ing an& of the country is %B'Es cherished )ision(

iii) O!=E<TIVES
$he main o 4ecti)e conducting this report is to gain practical &no:ledge apart from institutional technical and also to acquire &no:ledge a out the e#isting system and practiced report areG3
Ha)ing a clear conception on '/0 F Bac& to Bac& '/0s(

an&ing

an&ing system in national

an& ltd( $he o 4ecti)es of this

$he procedures of '/0( $he procedures of ac& to ac& '/0s $ypes of '/0( $ypes of Bac& to Bac& '/0( $he use of '/0 F Bac& to Bac& '/0s in terms of imports and e#ports y %ational Ban& 'imited @%B'A( .ther rele)ant things :hich are related to '/0 F Bac& to Bac& '/0s(

$he other o 4ecti)es are gi)en as follo:sG $o learn a out the an&ing policy of Bangladesh( $o learn a out the organi9ational eha)ior $o understand ho: an&s :or&s $o learn ho: to deal :ith the different customers $o e &no:n a out the financial en)ironment

12

Chapter 2
Acti'ities Un#erta"en
Acti'ities Un#erta"en)
.n 1st Fe ruary? 2112 I ha)e started my internship in %ational Ban& 'imited and it :ill end on *1th April? 2112( During these three months of internship program I :as assigned in Banani Branch of %B'( $hough I faced lot of challenges ut e)entually I got to learn the acti)ities of a commercial in %B' are gi)en elo:G $a&ing Responsi ility Importance of 0ommitment 2incerity( Punctuality and dedication( "nriching the interpersonal s&ills In %ational Ban& 'td the internship program is done on the asis of rotation( $hat is :hy I :or&ed - :ee& in general an&ing section and no: IEm :or&ing in foreign e#change department( And it :ill e continue till *1th April( an&( 8hile :or&ing there I got the essence of practical :orld :hich :ill help me to ecome professional in my future life( $he things that I actually learned

i) >or"?Re ate#)
In import and e#port at first oth the parties ha)e an agreement y negotiation and decide to do international trading( 2o? In import? at first importers apply for '/0 in a particular an&( $hen the an& ta&es necessary steps for the )erification of the importerEs status( After that the sends it to:ards the ad)ising an&( In e#port? the e#porterEs an& or the ad)ising an& recei)es that '/0 through s:ift or mail( $hen this an& urges each and e)ery document from its client @e#porterA according to the '/0? after recei)ing all those documents the an& sends those to the issuing an& and then 1* an& issues the '/0 and

the import3 e#port trading occurs( During the internship period IEm o ser)ing as :ell as performing all of the follo:ing tas&sI IEm in)ol)ing in preparing '/0s( IEm performing in recei)ing '/0s( IEm doing the documentation formalities( IEm also doing some data management acti)ities( IEm in)ol)ing in recording foreign ill collection data(

ii) Organi1ation?>i#e
In my internship program I :or&ed se)en :ee&s in general an&ing section( $his section is includingG3 Account opening department Accounts department Fi#ed deposit receipts Bills department 0ard department

Acco%nt o&ening)

$his is the starting of the an&er Jcustomer relationship( In this department I :as in)ol)ed in the process of opening different types of accounts( %B' offer many types of accounts( 2uch as? 2%D@2pecial %otice DepositA DB2@Dou le Benefit 2chemeA MI2 @ Monthly Income 2chemeA 2B@2a)ings Ban&s DepositA 0D@0urrent DepositA %M2@%B' Monthly scheme A "#cept opening the accounts I :as also in)ol)ed :ith Issuing F deli)ery 0heques /pdating the forms

1+

 =i)ing data entry of all the information of a ne: account holder in 0RM @customer relationship management soft:are(A

Acco%nts #e&art.ent) this department is 0onsist of general ledger? )oucher posting?

prepare and chec& daily supplementary? prepare daily cash oo& statement of affairs( From this department I got to learn a o)e mentioned acti)ities(

Fixe# #e&osit recei&ts) From FDR section I got to learn the process of depositing a fi#ed
amount of money for different time periods( 'i&e for?

$enureKKKKKKKKKKKKKKKKKKKKFDR rate

* years

12(,D

,years

12(,D

11years

12(,D

"#cept a o)e rate there is another fi#ed deposit named 2$A @2uper 2a)er $erm Deposit AccountA :hich rate is 1*(11D for any time period(

!i s #e&art.ent) Here I got to learn the transaction of financial instruments? such as

Payment order @P.A? Demand draft @DDA? $elegraphic transfer @$$A? pay slip? 'ocal ill collection@ 'B0A? .ut:ard ill collection @.B0A( In this department I also got to do and learn the follo:ing tas&sG

1,

Inter3 Ban& De it Ad)ice @IBDAA?

Inter 3Ban& 0redit Ad)ice @IB0AA Inter3Branch $ransaction@ IB$A

<ar# #e&art.ent) From this department I got to &no: a out the process of issuing
cards(%B' offers )arious types of cards( 'i&e 'ocal 0redit 0ard? International 0redit 0ard? Dual 0redit 0ard? Po:er 0ard etc(

Foreign exchange #e&art.ent) I started :or&ing here from last four :ee&s( In et:een I got to learn many things in terms of '/0 and Bac& to Bac& '/0s( I ha)e also
learned the type of '/0? process use of '/0 and also Bac& to Bac& '/0s? as I ha)e mentioned a o)e(

iii) OTHER RELEVANT A<TIVITIES

I did the recei)ing and payment of cash to the customers at the internship at the ranch( I also did filing stuff( I did ho: to dispatch the in:ard and out:ard letters through dispatched register( I did the out:ard remittance and in:ard remittance @foreignA? :estern union? %B' money transfer( eginning of

I had also done =eneral Ban&ing acti)ities done in the organi9ation(

eside the consumer credit acti)ities

during my internship period( Follo:ing are some =eneral Ban&ing acti)ities that I had

Acco%nt O&ening)
$here are t:o types of account customer could open in %ational Ban& 3 sa)ings account and current account( =enerally personal indi)idual open the sa)ings account and company organi9ation open current account( $o open a sa)ings account customer need to pro)ide t:o copy of passport si9e photo? one copy of passport si9e photo of nominee? and the photocopy of %ational ID 0ard( After that A/0 holder need to deposit minimum $&( 1111 in ne: account( $o open a current account? clients ha)e to pro)ide trade license and other necessary documents according to the type of organi9ation(
1-

Pa(.ent Or#er)
$o do a payment order @Pay .rderA 0ustomer need to ha)e an account on the name of applicants( Applicants can do a pay order y gi)ing cash? cheque or de iting the account( Applicants also ha)e to gi)e commission and )at( 0ommission and )at differs ased on pay order amount(

<he@%e Re@%isition)
$here is particular soft:are for cheque requisition( By this soft:are? I requisite the cheque ased on customer demand(

<he@%e 2e i'er()
I deli)er the cheque to the customers(

A ternate 2e i'er( <hanne ( AT* ))

%ational Ban& often Master de it card? Po:er card and 5isa credit card to the customers( I deli)ered de it card to the customers(

Chapter 3
<ONSTRAINTS:<HALLENAES AN2 PROPOSE2 <OURSE OF A<TION FOR I*PROVE*ENT
17

<ONSTRAINTS:<HALLENAES AN2 PROPOSE2 <OURSE OF A<TION FOR I*PROVE*ENT

$here :ere some constraints as :ell :hich caused multiple challenges throughout the data collection period( Ho:e)er? as an internship student I :as not gi)en the authority to access all sort of confidential data in order to maintain the confidentiality of sophisticated data of the respecti)e organi9ation( As dealing :ith '/0 is )ery sophisticated and delicate 4o so? I :as not allo:ed to do any technical :or&s( 2hortage of time is one of the challenges :hich? I ha)e faced immensely( In spite of that I loo&ed for:ard to ta&e the challenge F carry on my study :ith a positi)e )i e( $he an& asically :or&s in terms of finance and accounting? so as a student I did not find any &ind of mismatch et:een my ma4or and the practical field(

Li.itation)
$his study has co)ered a thorough analysis of credit system in %ational Ban& limited and to certify there is an introduction to different types of credit products( Delimitations are as follo:sG $his study is limited to the an&s mentioned $he an&s financial health is not included in the analysis( $his study includes only common credit schemes of %ational Ban&( Because of the organi9ational restriction some information regarding defaulter are nor re)ealed( $his study does not include Islamic Ban&ing(

1;

So%rces o- 2ata)
Information is collected from oth primary and secondary sources( $o conduct this analysis oth primary and secondary data has een collected( $he data sources are as follo:sG Primary sourcesG Direct contact :ith personals of retail credit di)ision of %ational Ban& 'td @=ulshan ranchA( 2econdary sourcesG 5arious pu lication? rochures? etc( of %ational Ban& 'td( Different :e sites(

Chapter 4
LESSONS LEARNE2 FRO* THE INTERNSHIP PROARA*

During my internship period I :or&ed in foreign e#port department( $here I got to learn se)eral things related '/0 and Bac& to Bac& '/0s? such as? the classifications? process? use of '/0 and Bac& to Bac& '/0s in %B' in terms of imports and e#ports( I ha)e also learned a out the s:ift? :hich is used for recei)ing and sending '(0(

1<

Letter o- cre#it (L:<)) A letter of credit is a letter issued y a an& @&no:n as the
opening or the issuing an&A at the instance of its customer @&no:n as the openerA addressed to a person @ eneficiaryA underta&ing that the eneficiary :ill e duly honored y it @opening mentioned in the letter ga)e een complied :ith( 'etter of credit @'/0A can e defined as Lcredit contractE :here y the uyerEs an& is committed @on ehalf of the uyerA to place an agreed amount of money at the sellerEs disposal under some agreed conditions( 2ince the agreed conditions include? amongst other things? the presentations of some specified documents? the letter of credit is called Documentary letter of credit( ills dra:n y the an&A pro)ided certain conditions

< assi-ication o- Letter o- <re#it)

In different considerations there are many &inds of '/0s( 2ome of them are discussed elo:G

Irre'oca/ e L:<) Irre)oca

le '/0 cannot e amended or cancelled :ithout the consent

of the eneficiary or any other interested parties( Ban&s commonly open this type of '/0(

Re'oca/ e L:<)

$his &ind of '/0 can e amended or cancelled y the Issuing Ban&?

:ithout the consent of the eneficiary or any other interested parties? if it is not indicated in the '/0? :hether it is re)oca le or irre)oca le? and then the '/0 to e treated as Irre)oca le(

Re'o 'ing L:<) It is an '/0 :here the original amount restores after it has

een utili9ed(

Ho: many times and ho: long? the amount :ill restore must e specified in the '/0( For e#ample? an '/0 opened for /2D 1111 and shipment effected for /2D ,11? no: the '/0 restored for full )alue i(e( there is scope to effect further shipment of /2D 1111 re)ol)ing '/0 may e opened to a)oid difficulties of opening ne: '/0( $his '/0 is not allo:ed in our present import policy(

21

Trans-era/ e L:<)

If the :ord !$ransfera le> incorporated in an '/0? then the '/0 is

transfera le( $he 1st eneficiary can transfer transfera le '/0 to the 2nd eneficiary( But 2nd eneficiary cannot transfer it further to another eneficiary( $ransfer may e done to more than one eneficiary? partially? if not prohi ited in the '/0(

Restricte# L:<)

If ad)ising and/or negotiation of an '/0 are restricted to a particular

an&? the '/0 is called a restricted '/0(

< ean Letter o- <re#it)

$his is a commercial letter of 0redit? :herein the Issuing

Ban& does not as& any documents as e)idence of e#ecution of the deal under the '/0( /nder the said '/0 only ill of e#change may e negotiated or may e paid :ithout any supporting documents( 0lean 'etter of //0redit is not permissi le in our import policy(

2oc%.entar( Letter o- <re#it)

All the commercial letter of credits? :here e#port

related documents such as in)oice? B/' etc( are required to present :ith the ill of e#change? is called Documentary 0redit( /nder this '/0? ill of e#change :ill not e honored :ithout other required documents(

!ac"?to?!ac" L:<)
Bac& to Bac& import '/0 is ac&ed y another e#port '/0( :here import of the goods to e made to e#ecute the e#port '/0 and payment of Bac& to Bac& ills to e made normally from related e#port process? the import '/0 is called Bac& to Bac& '/0(

A Bac&3to3Bac& '/0 is opened against an irre)oca le '/0( $he '/0 is lien mar&ed :ith the ac&3to3 ac& '/0 issuing ranch( Bac& to Bac& '/0 may e opened up to 7,D of e#port '/0? @F.B )alueA and up to ;1D :here e#port price is more than /2D -1/3 per do9en in case of garments industries(

21

$he enefit of a '/0 @the Master '/0A may e made a)aila le to a third party :here the primary ac& '/0( eneficiary uses the master '/0 as security collateral to o tain another '/0 @the secondary creditA in fa)or of the actual supplier( $he secondary credit is &no:n as ac&3to3

A Bac&3to3Bac& '/0 in)ol)es t:o separate '/0( .ne opened in fa)or of the first or primary eneficiary? and .ne opened for the account of the first eneficiary in fa)or of a second eneficiary :ho is supplying the goods( $he first eneficiary of the Master '/0 ecomes the applicant for the ac&3to ac& '/0( Bac&3 to3Bac& '/0 is commonly &no:n as Buying '/0? :hereas Master "#port '/0 is &no:n as 2elling '/0( 8hat percent of e#port '/0Es )alue is permitted to open a ac&3to3 ac& '/0 itEs depend upon the nature of the goods and getting information from the commerce ministry(

The Process o- !ac" to !ac" L:<s)

Ste&s o- O&ening !ac"?to?!ac" L:<)

ImportersE application to open a B$B '/0 against specific

Master '/0(

"#port dept( mar&s lien of the e#port '/0 and for:ards it to the Import dept( '/0 opening des& then enters all particulars of the master '/the party registers and maintains account of such master '/0( Any amendment rought in the master '/0 is also recorded in the register( . tain credit report of the eneficiary @:here applica leA( "#amination of '/0 application formM:hether :ithin the credit 'imit? dully signed y the concerned person and also signed y the Applicant( %ecessary entries into the B(B( '/0 opening register The &rocess o- !ac" to !ac" L:< is gi'en /e o0)

22

. tain credit report

Preparing offering sheet if regular credit line is not a)aila le Mar& lien on the master '/0

Issuance of letter of credit

< assi-ications o- !ac" to !ac" L:<s) Loca Foreign EPB ac&ed y another e#port '/0 :hich is made

Loca !ac" to !ac" L:<) $he import '/0

inside the country is &no:n as local Bac& to Bac& '/0( Here the uyer and seller or the importer or e#porter is from the local country(

Foreign !ac" to !ac" L:<) $he import '/0 ac&ed y another e#port '/0 :hich is made et:een an importer of a particular country :ith the e#porter of foreign country or an importer from a foreign country :ith the e#porter from nati)e country is &no:n as foreign ac& to ac& '/0(

EPB @"#port Processing NoneAG $he "#port Processing None is situated in 2a)ar? Bangladesh( $hough "PN is esta lished in Bangladesh ut it fully regulated y the foreign in)estors so? any &ind of ac& to ac& to '/0 made here is &no:n as "PN ac& to ac& '/0(

2*

2i--erent &arties in'o 'e# Foreign exchange transaction)

I.&orter) $he uyer or the importer is he :ho initiates the credit( He applies to an& for issue foreign a documentary credit( $he o ligations et:een the importer and the issuing an& are go)erned y the application3cum3agreement su mitted y the importer to the an&( He is ound to reim urse the an&? :hich effects payment or incurred a deferred payment underta&ing or has accepted or negotiated under the credit as per terms? and to ta&e up the documents(

O&ening !an") $he issuing or opening an& is the importerEs an& and it issues a letter of credit normally pursuant to the terms of sales contract as set out in the application for the credit importer( $he issuing an& should nominate the accept drafts or to negotiate? unless the credit allo:s negotiation y any an&( y the an&? :hich is authori9ed to pay or to

Ex&orter)
$he seller or e#porter is the eneficiary of the credit( $he letter of credit is opened in his fa)or and addressed to him( $he eneficiary has the o ligation to ma&e e#port as per the contract and produce the documents as required y the credit(

The A#'ising !an")

It is the an& in the e#porterEs country @normally the e#porterEs an&A? :hich is usually the foreign correspondent of importerEs an& through :hich the '/0 is ad)ised to the supplier( If the intermediary !Ad)ising Ban&>( an& simply ad)ises/notifies the '/0 to the e#porter part? it is called

2+

The <on-ir.ing !an")

If the ad)ising an& also adds its o:n underta&ing to honor the credit :hile ad)ising the same to the eneficiary? he ecomes the confirming an&( In addition? ecomes lia le to pay for documents in conformity :ith the '/0Es terms and conditions( $he lia ility of the confirming an& is the primary lia ility and it is not contingent on the fulfillment of the o ligation y the issuing an&(

The Acce&ting !an") Accepting an& is the an& nominated in the letter of credit to accept ills dra:n under the credit( If the an& so nominated accepts the nomination? its responsi ility to the eneficiary is not only to accept the drafts dra:n ut also to ma&e payment on their due dates(

The Pa(ing !an")

Paying an& is a an& in the eneficiaryEs country nominated in the letter of credit to ma&e payment against documents to e tendered under the credit( Paying Ban& must e#amine all documents :ith reasona le care to ascertain that these are dra:n in accordance :ith the terms and conditions of the credit(

The Trans-erring !an")

If the '/0 is transfera le? then the 1st eneficiary of the '/0 may transfer the '/0 to the 2nd eneficiary? through a $ransferring Ban&( an& nominated y the Issuing Ban&( $his an& is called the

2oc%.ent re@%ire# -or Foreign Exchange Transactions)

"#port3Import transactions as& for the follo:ing documentsG

2,

 $ransport Documents Insurance Documents 0ommercial In)oice .ther Documents

Trans&ort 2oc%.ents)
$ransport documents comprises of Bill of 'ading? Air:ay Bills? $ruc& Receipts? Rail:ay Receipts and Inland 8ater:ay Receipts(

<hec"ing &oints o- this #oc%.ent are)

$he Bill of 'ading is issued/endorsed to the order of %egotiating Ban&( Bill of 'ading is clean? sho:ing !2hipped on Board> notation? mar&ed LFreight Prepaid> OFor 0FR BasisP and LFreight 0ollect> OFor F.B BasisP? not short form? Blan& ac& or pre dated( $he Bill of 'ading appears the merchandise co)ers in 0ommercial In)oice( $he port of 2hipment? Destination? 2hipment Date? %ame of consignee? 2hipping Mar& Oif anyP appears on the Bill of 'ading are as per '0 term( Bill of 'ading is signed y the carrier company or his agent(

<o..ercia In'oice)
0hec&ing points of this document areG $he in)oice dated and signed y the eneficiary( $he in)oice is issued to the party concerned as stated in the '0( Description of goods is as stated in the '0( 2-

 /nit price mentioned as stated in the '0( Proper $rade3$erm is mentioned(

Ins%rance 2oc%.ents)
0hec&ing points of this document areG $he Insurance Policy is )alid( $he policy is issued in the name of '0 Issuing an& a/cG importer( $he policy is signed y the authori9ed official of the Insurance 0ompany( $he policy is in negotia le form? duly stamped and dated prior the B' date( Description of goods? name of carrying )essel sho:n in Insurance Policy are same as sho:n in B'( $he policy co)ers $ransshipment Oif allo:ed in '0P clause( Policy co)ers 11D a o)e the )alue of consignment( Policy indicates :here and in :hich currency the claim Oif anyP :ill e settled(

Other 2oc%.ents)
As per /0P ,11? other documents comprises of all other documents other than $ransport Documents? Insurance Documents and 0ommercial In)oice(

<erti-icate o- Origin)
$he 0ertificate is issued y the concerned authority of e#porting country as stated in the '0 Ousually such 0ertificates are issued y the 0ham er of 0ommerce F Industry of e#porting countryP(

!ene-iciar(Cs <erti-icate)
0hec&ing points of this document areG $he certificate issued y the eneficiary stating the particulars as stated in the '0(

Pac"ing List)

27

 $he 0ertificate is issued and prepared y the eneficiary as per instruction gi)en in the '0(

Ins&ection <erti-icate)
$he 0ertificate is issued y the competent authority as appro)ed for that country( $he Inspection 0ertificate can also allo:ed in the '0( $he 0ertificate is signed3sealed certificate the contents as required and issued prior to shipment of the goods( e issued y the eneficiary/manufacturer if

!i o- exchange)
$he ill of e#change is dra:n y the eneficiary as mentioned in the '0 duly signed and dated( $he amount is identical :ith the amount of 0ommercial In)oice( $he amount mentioned in figure and :ords are consistent( $he ill of e#change is in order and/or endorsed properly(

An O&ening o- Letter o- <re#it) Importer applies to the an& to open '/0 in fa)or of foreign supplier( $he an& has its printed application form and the importer should carefully fill in this form( .n recei)ing this application? the an& scrutini9es it to ensure thatG 8hether the customer fulfils all the required conditions/criteria to e eligi le as an importer as per pro)isions of the Import Policy .rder and =uidelines for Foreign e#change $ransactions in force and the supporting documents/papers required are su mitted( 8hether the items for import of :hich the documentary credit need to e opened is permissi le i(e( not included in the negati)e/restricti)e list as per Import Policy order in force(

2;

 8hether there are any legal/technical defects/restrictions in opening the 'etter of 0redit under the )arious sources as intended y the customer( 8hether :e are holding satisfactory credit report on the eneficiary to satisfy the rele)ant pro)isions of the guidelines for Foreign "#change transactions( 8hether credit facility has already een appro)ed y the "#ecuti)e 0ommittee of the Board of Directors( .n receipt of the '/0 application o)er the counter or through dispatch/mail section? the recei)ing date and time to e recorded on the '/0 application( 2ignature of the customer on the '/0 application to designated officer( '/0 application :ith all supporting papers to e chec&ed to ensure that the required papers are as per requirement of =uidelines for Foreign "#change $ransactions and are consistent to each other( 'etter of 0redit authori9ation from duly filled in and signed( Indent or Performa In)oice issued signed y the customer( Insurance certificate or policy @Marine/Air/Mail/$ruc&A co)ering the goods at 11D a o)e '/0 )alue for the :hole 4ourney/shipment together :ith unconditional premium paid receipt( Prior permission/registered '0A form? %o o 4ection/any other certificates from the concerned authority as required as per pro)ision of the Import Policy .rder( I(M(P( form duly filled in and signed( In case the '/0 application is not complete or in consistence or the required papers are not su mitted? the customer should e promptly contacted for rectification of the defects( 8hen the '/0 application is found to e in order and the client has sufficient appro)ed credit line for opening '/0 a '/0 num er is to e allotted y 4ournali9ing/the particulars of the entry i(e( '/0 and e#piry date? ad)ising/confirming an& etc( in the '/0 register/data ase( In case the client does not ha)e appro)ed credit line for opening '/0 the Manager of the Branch shall ta&e necessary arrangement to su mit proposal to the 0redit committee/"#ecuti)e 0ommittee of the Board and &eep pending of opening the '/0 till its appro)al( .n receipt of appro)al the Manager shall issue a sanction letter to the client pro)iding copies of the same to 0redit Di)ision( y 2eller or his agent @IndenterA duly counter e )erified y authori9ed/

2<

 If Foreign "#change is intended to e ought from Bangladesh Ban& against '0AF? it has to e registered :ith Bangladesh Ban&Es Registration /nit located in the concerned area office of the 00IF"( $o a)oid loss due to fluctuation of e#change rates? hold a declaration of the client that e#change fluctuations :ould e on account of the importer( $o set3up a file for the '/0( $o prepare the 'etter of 0redit either in mail or tele# format :ith all material particulars including the other terms and conditions in accordance :ith the customerEs instruction together :ith the related reim ursement instruction in standard format @Mail/$ele# as the case may eA for sight '/0 unless condition is gi)en in the '/0 that remittance :ill documents( $o prepare the )ouchers to record the contingent lia ility for the '/0 opened and reali9e margin? commission? tele# charges? postages etc( as per an&Es schedule of charges/sanction letter( $o furnish all the '/0 related papers including copy of the prepared letter of credit and copy of )ouchers in the '/0 file( e effected y the an& directly on receipt of shipping

I.&ortant &oints to &re&are an L:<)

$o prepare an '/0 the ranch ta&es care on the follo:ing pointsG

L:< n%./er) $he ranch :ill put a num er for each '/0(? :hich is the serial num er of the
'/0 for a particular year( "#G 'DB0 11-/ 1111/ 2112? FDB0G 11-/ 1111/ 2112 QQ 'DB0G '.0A' D.0/M"%$RR BI'' .F 0R"DI$ FDB0G F.R"I=% D.0/M"%$RR BI'' .F 0R"DI$

P ace an# #ate o- iss%e) '/0 must indicate the place and date of issue(

2ate an# & ace o- ex&ir() '/0 must ha)e an e#piry date( $his is the last date of
presentation of document under the '/0( Place of e#piry of the '/0 also to e mentioned in the '/0( %ormally it should e the counter of the %egotiating Ban&(

*1

Shi&.ent #ate) $here should e a last shipment date after :hich shipment is not allo:ed(
Ban& may also fi#3up a first shipment date efore :hich shipment :ill not e allo:ed(

Presentation &erio#) Issuing an& :ill allo: a period :ithin :hich e#porter must present
the e#port documents to the negotiating an& or to any other nominated an&( $his may e 1, days from the date of shipment( Ma#imum may e allo:ed one month? ut :ithin the e#piry date of the credit(

A&& icant) %ame of the applicant :ith usiness address to e put in the '/0(

!ene-iciar() %ame of the eneficiary :ith address also to the indicated in the '/0(

A#'ising !an") %ame of the ad)ising an& :ith address to e mentioned in the '/0(

A.o%ntG ")ery '/0 must sho: the amount of the '/0( $he :ord !A out> may e used :ith
amount? :hich means 11D more or less of the said amount(

Part?shi&.ent an# Trans shi&.ent ) Issuing

an& also clearly indicate in the '/0

:hether part3shipment and trans shipment are allo:ed or not(

A'ai a/i it() '/0 must indicate :hether the credit is a)aila le y payment? y negotiation or
y acceptance(

Port o- shi&.ent an# &ort o- #estination) '/0 :ill also indicate from :here shipment
to e made and :here goods to e deli)ered(

*1

Ten%re o- the #ra-t) 8hether the draft to e dra:n at sight or nuisance? also to e cleared
in the '/0(

2oc%.ents re@%ire#) Ban& :ill gi)e the list of required documents and data content
therein( "ach and e)ery term must :ithout as&ing document is )alueless( e supported y the documents? ecause any term

Pa(.ent) 8hen? :here and y :hom payment is to e made? also to e indicated in the
'/0(

U<P) Ban& :ill incorporate the reference of /0P ,11 in the '/0 for its application in all the
operation of the '/0(

!i o- a#ing) B/' must e issued or endorsed to the order of the Issuing Ban&( It should
e LcleanE and !freight prepaid> if '/0 is on 0FR asis short form and charter party B/' to e a)oided( All these terms to e incorporated in the B/' clause of the '/0(

!i o- exchange) ill of e#change to e dra:n on the Issuing Ban&(

Pre?shi&.ent Ins&ection) Pre3shipment inspection certificate is compulsory for

go)ernment and pri)ate import e#cept in fe: cases(

oth

2ata content) In)oice and other documents if required should indicate the H(2( code
num er( '0AF %o :ith description of the item and country of origin(

S&ecia con#itions) 2pecial conditions? such as in case of food? machineries? )ehicles

and any other items should e incorporated in the '/0 :here required(

*2

A%thenticit( o- the cre#it ) '/0 to e authenticated y putting a test num er or signing y

t:o authori9ed officers(

L:< a#'ising)
$he '/0 duly signed y t:o authori9ed officers? :hose specimen signatures are already an&s? must e addressed to the eneficiary( Ban& eneficiary( Instead they utili9e the

recorded :ith the correspondent

generally does not enter into direct contact :ith the

ser)ices of its o:n ranch office @if anyA or correspondent an& at sellerEs country for the purpose of ad)ising it to the seller @ eneficiaryA( $hus the correspondent an& ecomes the !Ad)ising Ban&>(

$he process of ad)ising a credit consists of for:arding the original credit to the eneficiary to :hom it is addressed( Before for:arding/ad)ising the credit to the seller under appropriate for:arding co)erage? the ad)ising an& has to )erify the signatures of the officers of the an& does not underta&e any opening an& and ensure that the terms and conditions of the credit are not in )iolation of regulations relating to e#port( 8hile ad)ising? the ad)ising lia ility(

A#'ising a etter o- cre#it

,MPORT?R ":6C APP:,CA2T#

L/C OPENING BANK

APPLI<ATION.

ISSUE L:< A2VI<E

**

L7% A89I%IN:

L/C

#AN07%ONFIRMIN: #AN0

Veri-ication an# Lo#g.ent o- 2oc%.ents /( the L:< O&ening !an")

.n receipt of the shipping documents from the negotiating an&? the '/0 .pening Ban&

should carefully e#amine these to ensure that they confirm to the term of the credit( If there y any discrepancy in the documents? the an& should immediately ad)ise the

importer to see& his acceptance of the document( If the importer refuses to accept the documents the an& should ad)ise the negotiating an& y tele# or 28IF$ :ithin 7 :or&ing days for instruction :ith regard to disposal of the goods and the documents(

LESSONS LEARNE2 FRO* THE INTERNSHIP PROARA*

A)I.& ication to organi1ation)

$he process of communicating :ith the internal employees and local F international clients( 8e ha)e many employees :or&ing at the organi9ation( 2o I ha)e learn ho: to deal :ith those clients ecause there is a gap of communication and language et:een the employees and clients ut still they manage to e#press their feelings and gi)es the etter ser)ice for those clients( $he process of dealing :ith the root le)el :or&ers :ho :or&s directly in the an&ing system( Ho: to :or& in the an&ing system soft:are( Ho: employees personal information and ser)ice information are connected to each other and ho: organi9ation uses them for employees career de)elopment(

*+

$ime management is a )ery important thing I ha)e learnt from this internship process( organi9ation gi)es a dead line to e)ery :or& and usually there is a custom that the top management does not gi)es pressure after that? they 4ust as&s the employee or :ants to see the progress at the end of dead line( 2o e)ery employee &no:s their deadline and :or&s &eeping that on mind(

As the organi9ation gi)es dead line and if the employee does not meet the dead line they might get hampered( 2o there is al:ays a stress in the employees( But employees :ho handle that stress :ell they are doing )ery :ell( 2o in %B' I ha)e learnt ho: to handle stress and :or& under stressful situation(

$em :or& is )ery important in any organi9ation and in %B' team :or& is )ery important( Because as %B' is a an&ing organi9ation they ha)e to deal :ith many clients and employees( 2o doing a :or& to meet the dead line in a team is really )ery important( I ha)e learnt a lot a out doing :or& in a team from %ational Ban& ltd(

%B' al:ays tries to &eep indi)idual employees elongings safe( $hat is :hy they ha)e pro)ided e)ery employee a personal self :hich they can &eep loc&ed( And they also &eeps important document safe there(

2mo&ing is totally prohi ited at %B'( As this is a ser)ice ased organi9ation there is al:ays concern of any fire occurrence( $hatEs :hy they al:ays try to &eep the organi9ation a:ay from any &ind of fire causing elements(

$he organi9ation al:ays encourages neat and clean en)ironment around the office( $he top management al:ays monitors the cleanliness of the employee des& and they al:ays tell the employees to e clean and tide(

!) I.& ications to Uni'ersit( Internshi& &rogra. )

*,

/ni)ersity internship program helped me a lot in terms of my report :riting s&ills( i ha)e learnt a lot a out ho: to :rite the practical e#perience in a report(

$he good :ill of the uni)ersity helped me to get the internship in a )ery reno:ned organi9ation li&e %ational Ban& 'td( And thus I got the chance to :or& :ith the employees of %B'( It :as a )ery rare chance I got and I :ill e al:ays grateful to the /ni)ersity for this reason( $his internship helped me to learn and :or& under the super)ision of a super)isor( 8hich :as truly a great e#perience for meS $his internship program helped me get close understanding of the o)erall process of %B' Ban&ing system(

$here is no implication to /ni)ersityEs internship program from myself( Because e)erything has een going planned and schedules are strictly maintain y uni)ersity( 2o there is no chance to ta&e any false or :rong step(

Chapter 5

*-

<ON<LU2INA STATE*ENTS

<ON<LU2INA STATE*ENTS
All the data in this report has een collected from the practical e#perience gathered from %ational Ban& 'td( :hile :or&ing :ith the organi9ation( All the e#perience and &no:ledge I ha)e shared all gathered from the organi9ation tal&ing :ith the employees and :or&ing :ith them( In this internship affiliation report I ha)e discussed a out the employees personal and ser)ice information update process and automation of the HRI2 soft:are(

A) Reca&it% ation :S%..ar(

.ne of the money mar&et securities is Ban&ers acceptance and it deals :ith '/0 and Bac& to Bac& '/0s( As a financial institution an& use '/0 in terms of import and e#port? so it has significance in an&ing sector(

'etter of credit @'/0A can e defined as Lcredit contractE :here y the uyerEs an& is committed @on ehalf of the uyerA to place an agreed amount of money at the sellerEs disposal under some agreed conditions( 2ince the agreed conditions include? amongst other things? the presentations of some specified documents? the letter of credit is called Documentary letter of credit(
Bac& to Bac& import '/0 is ac&ed y another e#port '/0( :here import of the goods to e made to e#ecute the e#port '/0 and payment of Bac& to Bac& ills to e made normally from related e#port process? the import '/0 is called Bac& to Bac& '/0(

Both '/0 F Bac& to Bac& '/0 are follo:ed y the rules and regulations of /0P-11 @/niform 0ustoms and Practice for Documentary 0reditsA in %B'? though in terms of discrepant document the '/0 should e stopped ut in %B'? they do continue that '/0 4ust to maintain the faithful relationship :ith their customers(

*7

8hile doing internship I :itnessed some dra: ac&s of %ational Ban& :hich they are ha)ing in terms of Ad)ertisement and Hierarchy( 2o? to o)ercome their dra: ac&s they need to :or& on those particulars(

!) Reco..en#ations -or F%t%re Strategic Actions

Ad)ertisement Pro lemG %o:3a3days in this competiti)e :orld media plays a )ital role for the long run of an organi9ation( It happened due to the rapid ad)ancement of technology( 2o? in this situation if an organi9ation does not utili9e this opportunity properly then they :ould lag ehind( In this case an organi9ation li&e %B' must ha)e proper planning for the ad)ertisement of their products as they are not ad)ertising their products properly( 2o? for the proper planning of the ad)ertisement they should estimate the udget first? then :or& according to that and try to &eep their ads updated so? that consumers :ould get proper information and attraction o)er their products( 2o? to sustain in the mar&et they should impro)e their ad)ertisements(

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Chapter 6
SUAAESTION A<TION
SUAAESTION FOR I*PROVE*ENT OR <OURSE OF A<TION

FOR

I*PROVE*ENT OR <OURSE OF

So.e 0or#s I ha'e to sa()

Please al:ays gi)e chance to e)eryone for doing internship program( 2uggest them to do internship( %ot thesis( $his suggestion is for not internship program( $his is for those students :hose are really afraid to do internship program? please ta&e internship as friendly then you :ill get a chance to round the :orld of 4o lifeEs satisfaction( My suggestion is compare the academic study :ith the practical 4o and learn the similarities and differences and their reasons( 0ollect as much as information a out the organi9ation during the internship( It :ill help you in the future( Be e#pert in Microsoft office and Bi4oy Bangla soft:are( It :ill help you to do your 4o in any company(

*<

I al:ays heard AI/BEs faculties are good( But I :ill say AI/B has the est faculties all o)er the Bangladeshi pri)ate uni)ersities(

Re-erences)

$he :e 3site of %ational Ban& 'td( :::(n l d(com .fficial page of %ational Ban& 'td( :::(face oo&(com Annual report of 211132112

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