Internship Report - Janata Bank Limited - Foreign Exchange Management

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FOREIGN EXCHANGE
MANAGEMENT OF JANATA BANK
LIMITED
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FOREI GN EXCHANGE MANAGEMENT
OF J ANATA BANK LI MI TED

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EXECUTI VE SUMMARY
Janata Bank Ltd is a govt owned bank with numerous branches spreading all
over Bangladesh. It collects remittances from NRB from different countries and
transfers the currency in BDT to the destined location. Here I have tried to
describe the remittance processing structure of JBL. Along with, I have
included the changes made by globally accepted protocol UCP-600 and wired
transfer service SWIFT.
In this report I have tried to show the contribution of JBLs remittance earning
on national remittance earning. JBLs performance is not dissatisfactory but the
remittance earning is not increasing as the rising national remittance
curve.After analyzing the data of JBLs remittance earnings processthis report
have suggested that JBL lacks in foreign currency collection structure. Its
remittance earning is increasing but the increase is far below the national
remittance increase. JBL should take up to the mark structural change in
service to cope with the national trend and help Bangladesh earn more
remittance.
In addition, with this intern reporthave been included the regression analysis
of import-export volume with regard of exchange rate.
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CONTENTS
1. Introduction .............................................................................................................................................................. 1
2. Origin of the Report ............................................................................................................................................... 1
3. Objectives of the report ........................................................................................................................................ 1
3.1. Broad objective .............................................................................................................................................. 1
3.2. Specific Objectives ........................................................................................................................................ 2
4. Scope of the report ................................................................................................................................................. 2
5. importance of the report ..................................................................................................................................... 2
6. Limitations ................................................................................................................................................................. 3
7. Analysis techniques ............................................................................................................................................... 3
8. Required data ........................................................................................................................................................... 3
9. Sources of Data ........................................................................................................................................................ 4
9.1. Sample Information ...................................................................................................................................... 4
9.2. Primary Source of Data ............................................................................................................................... 4
9.3. Secondary Sources of Data ........................................................................................................................ 4
10. Organizational Profile ...................................................................................................................................... 4
10.1. Historical Background of the organization .................................................................................... 4
11. organization mission and vision .................................................................................................................. 5
11.1. Mission: ......................................................................................................................................................... 5
11.2. Vision: ............................................................................................................................................................ 5
12. offered Services by the organization ......................................................................................................... 5
12.1. Bills Collection: .......................................................................................................................................... 6
12.2. Payments made on behalf of Govt. .................................................................................................... 6
12.3. Services Areas ............................................................................................................................................ 7
13. Organizational structure ................................................................................................................................. 8
13.1. Management Aspect ................................................................................................................................ 8
14. Future plans of the organization ...............................................................................................................10
15. Introduction .......................................................................................................................................................11
16. Swift .......................................................................................................................................................................12
The structure of SWIFT ......................................................................................................................................13
16.1. Cash Reporting: Supporting customers need for account information ..........................13
16.2. The Functions of SWIFt ........................................................................................................................14
Solutions for ............................................................................................................................................................14
17. changes made in UCP-600 ............................................................................................................................15
18. Opening Letter of Credit (L/C) ...................................................................................................................17
18.1. Procedure of opening the Letter of Credit (L/C) .......................................................................17
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18.2. L/C Application Form (L/CAF) .........................................................................................................18
18.3. L/C Authorization Form (L/CAF) ....................................................................................................19
19. Securities of L/C ...............................................................................................................................................21
20. Export ...................................................................................................................................................................21
20.1. Formalities of Export Procedure ......................................................................................................22
20.2. Disposal of Export procedure ............................................................................................................23
20.3. Import ..............................................................................................................................................................25
20.4. Import procedure ...................................................................................................................................25
20.5. Payment Modes .......................................................................................................................................26
21. Export Finance ..................................................................................................................................................28
21.1. Details Commodity Wise Export ......................................................................................................29
Details Export of Janata Bank Limited of 2006 to 2009 .................................................................................29
21.2. Export Target & World Economic Crisis .......................................................................................33
21.3. National and Janata Bank Limited's Export Performance .....................................................34
21.4. Comparison of Export of 2009 with Public Banks ....................................................................35
22. Import Finance ..................................................................................................................................................36
22.1. Commodity wise Import of Janata Bank Limited ......................................................................36
22.2. Import target and achieve in last 3 years .....................................................................................38
22.3. Contribution of Janata Bank in National Import ........................................................................38
22.4. Income from Import ..............................................................................................................................39
22.5. Contribution to National Import of JB in last decade ..............................................................39
23. Foreign Remittance .........................................................................................................................................41
23.1. Country wise remittance of Janata Bank Limited .....................................................................41
23.2. Wage Earners' Remittances of Nation ...........................................................................................44
23.3. Foreign Exchange and Foreign Trade of JBL ...............................................................................45
23.4. analysis: effect of exchange rate change on import and export volume of bangladesh
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Data input .................................................................................................................................................................47
Regression analysis of import volume vs exchange rate ......................................................................49
Regression analysis of export volume vs exchange rate ......................................................................50
23.5. Problem of Foreign Exchange in Bangladesh .............................................................................51
conclusion ..........................................................................................................................................................................52
Reference ...........................................................................................................................................................................54

Introduction
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1. INTRODUCTION
This report has a certain purpose to focus on the operations of Foreign Exchange
of Janata Bank Limited. Without any doubt Foreign exchange catches the flash as it
has great importance in the balance of trade in economy. Banks plays a vital role in
this discipline.
2. ORIGIN OF THE REPORT
Although total B.B.A. program combines an excellent blend of theoretical and
classroom knowledge but aside this internship program facilitates a student to bring
light on their theoretical knowledge to apply this in practical ground. I was assigned
to Janata Bank, Hotel Sheraton Corporate Branch, and foreign exchange department
for my practical execution.
I am required to prepare an internship report under the supervision of our honorable
teacher Muhammad MukhlesurRahmanon Foreign Exchange Management of Janata
Bank Limited to conduct a precision analysis on the typical subject. I have always
tried my best to reflect my experience of the practical incidence in this report.
3. OBJECTIVES OF THE REPORT
3.1. BROAD OBJECTIVE
The main purpose of the report is to get a clear idea about the management of and
Foreign Exchange of Bangladesh as well as Janata Bank limited, and make an
elaborate industry analysis on the banking sectoractivity of Bangladesh.

Scope of the report
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3.2. SPECIFIC OBJECTIVES
To analyze the real Foreign Exchange performance of Bangladesh.
To find out critical problems of Foreign Exchange discipline of Bangladesh.
4. SCOPE OF THE REPORT
This study would focus on the following areas of Janata Bank Limited.
Actual Foreign Exchange management of Janata Bank Limited.
Overview the current procedure of export & import and remittance
management.
Opening LC and maintenance of other formalities of foreign exchange.
Organizational structures and responsibilities of management.
Each of the above areas would be critically analyzed to determine the
properefficiency of Janata Banks Foreign Exchange Management system.
5. IMPORTANCE OF THE REPORT
Bangladesh is considered as a developing country in the world. The economy of this
country has a lot left to go further and there are lots of scopes for massive
improvement. In an economy like Bangladesh, Foreign Exchange can play a major
role to improve the economic condition of the country. The banks play the role of an
intermediary that can mobilize the excess fund from surplus sectors to provide
necessary financing, to those sectors, which need a proper go ahead for sound
development of the economy.
This report is a total effort to reflect a clear idea about the strategies, activities, and
performance of Bangladesh regarding Foreign Exchange Business.

Limitations
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6. LIMITATIONS
I have faced some limitations, when I was preparing this report which is mentioned
below.
Time limitation It was one of the main constraints that affected covering all
aspects of the study.
Lack of Secondary Information: The import export data of Bangladesh is not much
available over the net.Secondary source of information was not sufficient for the
completion of the report.
Limitation of the Scope:Much confidential information was not disclosed by
respective personnel of the department.
7. ANALYSIS TECHNIQUES
Both qualitative and quantitative methods were applied for preparing this report.
The data were analyzed and presented by Microsoft excel and shows percentage,
graphical presentation and different types of charts. Best effort was given to analyze
the numerical findings.
8. REQUIRED DATA
I have mainly focused on numerical data in preparing the report. Also I have used
theoretical portion as the demand of the report. Analyzing foreign exchange
management of a bank, both theoretical and technical knowledge are necessary for
execution. Then everything with accuracy, I have analyzed and made conclusion.

Sources of Data
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9. SOURCES OF DATA
9.1. SAMPLE INFORMATION
Main source of the information is annual report of Janata Bank Limited, report of
annual meeting, brochures and web sites. The information incorporated in this
report is heavily collected both from the primary sources and as well as from the
secondary sources.
9.2. PRIMARY SOURCE OF DATA
I have collected data directly from the different sectors of Janata Bank head
office. This is called primary source of data.
9.3. SECONDARY SOURCES OF DATA
The secondary data is collected from annual report, distinguished
conceptualmatters, websites and several published matter as articles in
different versions of printings .
Secondary Sources are:
Annual Reports of different years of Janata Bank Limited.
Annual Report of Bangladesh Bank of 2009.
Other published documents of Janata Bank Limited.
Respective sectors of foreign matter of the head office.
10. ORGANIZATIONAL PROFILE
10.1. HISTORICAL BACKGROUND OF THE ORGANIZATION
Janata Bank Limited is the 2
nd
largest state owned commercial bank in Bangladesh.
Immediately after the liberation of Bangladesh in 1971, the erstwhile United Bank
Limited and Union Bank Limited were renamed as Janata Bank. The established of
Janata Bank was happened under the Bangladesh Bank order 1972. It was

organization mission and vision
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incorporated as a public Limited Company on 21, May 07 vide certificate of
incorporation No-C66933(4425)07 in the early era of privatization. The Bank has
taken over the business of Janata Bank at a purchase consideration of Tk. 2593.90
million as a going concern through a vendor agreement signed between the Ministry
of Finance of the Peoples Republic of Bangladesh and the Board of Directors on
behalf of Janata Bank Limited on 15
th
November 2007. The operation of Janata Bank
Limited works through 851 branches and including 4 overseas branches at United
Arab Emirates and a subsidiary company named Janata Exchange Company Srl in
Italy. It is linked 1202 foreign correspondents all over the world.
11. ORGANIZATION MISSION AND VISION
11.1. MISSION:
As it is recognized as the leading commercial bank in the aspect of Bangladesh
market and it is providing retail and corporate banking services, it is trusted and
respected as a partner in the social and economic development program in our
country and among our nation.
11.2. VISION:
Becoming effective largest commercial bank in the perspective of Bangladesh to
support socio-economic development of the country and assists go ahead for
becoming leading bank in South-Asia.
12. OFFERED SERVICES BY THE
ORGANIZATION
Beside regular banking operation, Janata Bank Limited offers specialized services to
different walks of clients/agencies throughout the country. Under the network of
utility services, customers of different govt. organizations, corporate bodies, local

offered Services by the organization
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bodies, educational institutions, students, etc are getting essential benefits from the
Bank continuously. The utility services of Janata Bank Limited's are:
12.1. BILLS COLLECTION:
Collecting the gas bills of Titas, Bakhrabad and Jalalabad Gas Transmission and
Distribution Companies.
Regular collection of electricity bills of Dhaka Electricity Supply Authority,
Dhaka Electricity Company, Bangladesh Power Development Board and Rural
Electrification Board.
Regularly collects the telephone bills of Telegraph and Telephone Board.
Collects Water/Sewerage bills of Water and Sewerage Authority.
Municipal holding tax of City Corporation/ Municipalities is collected by JBL.
A pilot scheme is going underway to provide personalized services to the
clients.
12.2. PAYMENTS MADE ON BEHALF OF GOVT.
Payment of non- Govt. teachers salaries
Providing girl Students scholarship/stipend & Primary Student Stipend.
Provides army pension
Payment of widows, divorcees and destitute women allowances
Old-age Allowances
Food procurement Bills
As per decision of the govt. 46 (Forty Six) branches of JBL(40 branches in Dhaka city,
1(one) branch in Narayangonj city and 5(five) branches in Chittagong city) are
involved to receive all utility bills in a same station from January'04.

12.3. SERVICES AREAS

Table: Branches of Janata Bank Li
Division
Dhaka
Chittagong
Rajshahi
Sylhet
Khulna
Overseas
Total

SERVICES AREAS
Branches
There are 851 branches of Janata
Bank Limited in home and abroad.
Among them 443 branches are
situated in urban areas including
four foreign branches and 408
branches are in rural areas. And all
foreign branches are situated in
United Arab Emirates.

Table: Branches of Janata Bank Limited
Town Rural zone
162
100
80
22
75
4
443

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There are 851 branches of Janata
Bank Limited in home and abroad.
Among them 443 branches are
situated in urban areas including
four foreign branches and 408
branches are in rural areas. And all
foreign branches are situated in
United Arab Emirates.
mited
Rural zone Total
82 244
88 188
131 211
36 58
71 146
0 4
408 851

Organizational structure
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Overseas Branches:
Table: Foreign Branches of Janata Bank Limited
SL.No: City No of Branch Status
01. Abu Dhabi 01 Foreign
02. Al-Ain 01 Foreign
03. Sharjah 01 Foreign
04. Dubai 01 Foreign

13. ORGANIZATIONAL STRUCTURE
13.1. MANAGEMENT ASPECT
Like every other business organization, the foremost duty of the top management is
to makes all the major decisions of Janata Bank. The boards of directors are being at
the topmost level of organizational structure plays an important role in policy
formulation and successful execution, but it is not a direct concern of the day-day
operations of the bank. The duty was delegated to the management committee. The
board mainly sets the objectives and policies of the bank.
The management consists of one chairman, eleven directors, one CEO & MD and one company
secretary..
Mid and lower level employees get the direction and instruction from the Board of
Directors about the tasks they have to meet. The chief executive provides the
guideline to the managers and employees, but bears the responsibility for
determining how tasks and goals are to be attained.

Organizational structure
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O
r
g
a
n
i
z
a
t
i
o
n

M
o
n
o
g
r
a
m
Chairman
Managing
Director
General Manager
Deputy General
Manager
Assitant General
Manager
Senior Principal
Officer
Principal officer
Senior Officer
Officer
Sub Accountant
Senior Clark

Future plans of the organization
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14. FUTURE PLANS OF THE
ORGANIZATION
1. Involvement in export activitylargely by maintaining good communication
with diverse parties.
2. To collect new members in FY2010 to launch export related new business.
3. At least 2 new AD branch will open in FY2010.
4. More facilities will be provided to the exporters on the basis of export priority
and facilitate them on the basis of performance.
5. Sufficient workforce has involved increasing export and import business,
providing special services and initiated different training program of officers
has been started.
6. Very dynamic new dimensional Credit Product willbe started in a large scale
by name of BMRE Loan for export project to import machinery, expand
factory, purchase transport among exiting parties.
7. To take the competitive position charge, decrease commission and other
facilities will continue to complete the journey.

Introduction
11
FOREI GN EXCHANGE I N J BL AND THE
WORLD

15. INTRODUCTION
One of the most important businesses carried out by the commercial bank is foreign
trading. General focusing states that, the trade among various countries falls for
close link between the parties dealing in trade. The situation calls for expertise in the
field of foreign operations. The bank, is referred to as rending international banking
operation which provides such services. Transactions with overseas countries in
respect of export, import and foreign remittance dealings are under the preview of
foreign exchange department. International trade demands a flow of goods from
seller to buyer and of payment from buyer to seller. In this case the bank forms
bridge between the buyer and seller.
Among all departments Foreign exchange department of Janata Bank Limited is one
of the most important. This department handles various types of activities. Among
these main three are as follows:
a) Export
b) Import and
c) Foreign remittance
Additionally I have included the global trends of money transfer method like SWIFT
and recent changes in the global protocol of exchange like UCP-600.

Swift
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16. SWIFT
SWIFT means High-value payment market infrastructures focus primarily on security
and resilience to support time-critical payments, efficiency to have the right trade-off
between risks and cost. Liquidity cost reduction by early finality, easy collateral
coverage and better liquidity management through real-time interactive services
Balancing cost, efficiency and risk are your key requirements, and SWIFT meets them
with a reliable, secure and reusable messaging infrastructure, supporting
international and proprietary standards.
More than 62 high-value payments clearing and settlement systems covering more
than 90 countries and carrying more than 240 million payments a year, rely on SWIFT
for secure messaging services and common message standards essential to their
smooth operation.
Because customers are multilateral, customers need a trusted third party like SWIFT
to provide secure, reliable and proven messaging solutions. SWIFTs offering is more
compelling in terms of cost and risk than alternatives, thanks to reusability of
participants existing SWIFT infrastructures, value-added services such as FIN Copy,
and standard support services. SWIFT solutions for high-value payment clearing
systems support the messaging layer for payment transaction processing, cash
management, business administration functions, reporting and generic
communication.

Swift
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THE STRUCTURE OF SWIFT

16.1. CASH REPORTING: SUPPORTING CUSTOMERSNEED
FOR ACCOUNT INFORMATION
The need for standardized solutions in cash reporting is driven by the centralization
of liquidity management and treasury functions, growing volumes of cross-border
payments, increasing volumes of 'time-payments' (payment versus payment, delivery
versus payment, real-time gross settlement systems), the emergence of cross-border
real-time payment settlement systems, in addition to existing domestic systems, and
regulatory pressure to manage liquidity and credit risk.

Swift
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16.2. THE FUNCTIONS OF SWIFT
SOLUTIONS FOR
For payments
Cash Reporting
Supporting your real-time account information needs
Payments and cash management
Economic changes in the payments landscape have forced the banking community to
find new ways to reduce their operational costs, mitigate their liquidity risk and
increase the revenue and efficiency of their core payment products. Under the
pressure of regulators, the cash management service offering becomes more
transparent to meet new customer expectations. While conforming to regulation is a
must, service quality becomes a key differentiator.
SWIFT has developed offerings in payments and cash management to help the
banking community meet these urgent challenges:
Enhance customer service: automate exceptions and investigations in order to
reduce enquiry turn-around time and to provide transparency on enquiry status to
your customers, provide a compelling value proposition for corporates or person-
to-person retail payments for immigrants (workers remittances) including
mobile payments.

Improve liquidity and risk management: receive end-of-day as well as intra-
day cash reports information vital to get visibility on cash positions across your
organization and to improve liquidity management. In addition, SWIFT is
considering extending its value proposition to include liquidity risk
management tools.

Increase operational efficiency and save costs: SWIFTs single window allows
you to rationalize your connectivity channels with:

1. Correspondent banks for clearing and settlement of domestic or foreign
currency payments using SWIFTs payments clearing messaging services

changes made in UCP-600
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2. High value payments clearing and/or settlement systems operating on a real-
time gross settlement basis using SWIFTs secure and reliable FIN domestic
services for high value payment market infrastructures
3. Retail payments clearing systems using SWIFTs cost efficient services for retail
payments market infrastructures: the services help to clear batches of
payments prior to settlement at discrete intervals, with or without netting.

17. CHANGES MADE IN UCP-600
Every single article has been redrafted and perhaps that is the most important
change from a corporate perspective. Language of article has been made more clear
and simple. Changes have made UCP 600 more user friendly set of rules. Failure to
comply with UCP 600 rules can put payment at risk. More than 220 rules and sub-
rules are covered by UCP 600 articles covering trade and services issues and
problems. Change is very user friendly. Main features of UCP 600 which the 7th
revision as follows:
- A leaner set of rules with 39 articles rather than 49 articles of UCP 500.
- Five article from UCP 500 were not included in UCP 600
Article 5 Instruction to issue/amend credits
Article 6 Revocable credit
Article 8 Revocation
Article 12 In complete and unclear instructions
Article 38 Other documents
Following articles have been changed and appear in new form either as
combination, adoptions or rewarding based on position papers issued by
Banking Commission. 2, 6, 9, 10, 20, 21, 22, 30, 31, 33, 35, 36, 46 & 47.
- Main focus has been to make the language more simple and clear. The
responsibilities of the parties to documentary credit transaction have
been more transparent. Article covering advising of L/C and
amendments has clear responsibility of the bank.

changes made in UCP-600
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- Every single article has been redrafted and is most important change
for corporates.
- New Section of definition containing terms such as honour and
negotiations etc.
- New article for interpretation of the terms used in L/C to avoid
misunderstanding
- When the issuer decides to refuse to honour the documents, it must
give a single notice to that effect to the presenter
- Replacement of the term reasonable time with five working days for
examining and determining compliance of documents. New standard
for examination of documents
- A new provision concerning address of beneficiary and the applicant
has been added.
- An expanded discussion of original documents required 4
- Redrafted transport articles, amended to resolve confusion over the
identification of carrier & agents
- In UCP 600 articles on transport, various changes have been made like
definition of transshipment and the reference to charter party bill of
lading
- Period of presentation of 21 days is applicable to submission of original
documents
- Now the responsibility is on the issuer of L/C to reduce
misinterpretation by clear prescribing the terms & conditions in L/C
- Confirming bank has been authorized to discount deferred payment L/C
- Insurance document can be signed by proxies on behalf of issuance
company or underwriter and document may contain reference to any
exclusion clause.
- For transferable credits the transferring bank may send second
beneficiary invoices/draft if first beneficiary fail to perform..
- Miscellaneous provisions in UCP 500 have been replaced.
- eUCP, bank practices are related to UCP 600

Opening Letter of Credit (L/C)
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18. OPENING LETTER OF CREDIT (L/C)
In global business environment, buyers and sellers are often unknown to each other.
So seller generally demands guarantee of payment for his exported goods. In this
situation bank has an important role. Bank gives export guarantee that it will pay for
the goods on behalf of the buyer. This guarantee is called Letter of Credit or LC.
Thus by letter of credit the contract between importer and exporter find a legal
sphere.
18.1. PROCEDURE OF OPENING THE LETTER OF CREDIT
(L/C)
After receiving the preform invoices from the exporter, by applying for the issue of
documentary credit, the importer requests his/her bank to make a promise of
payment to the supplier. Obviously, the bank will only agree to this request if bank
can relyfully on reimbursement by the applicant. According to the accepted custom
as the sole security for the credit, particularly if they are not the sorts of commodity
that can be traded on an organized market, such an agreement would make the bank
to bear excessive risk outside its specialized field. The applicant must therefore have
adequate fund in the bank account or a credit line sufficient to cover the required
amount.
Banks deals with documents and notwith goods. Once the bank has issued the credit
its obligation to pay is conditional on the presentation of the stipulated documents
within the prescribed time limit. The applicant cannot prevent a bank from honoring
the documents on the grounds that the beneficiary has not delivered goods.
The importer submit the following documents with the application for
opening the L/C
Tax Identification Number (TIN)
Valid trade license
Import registration certificate (IRC)
The bank will supply the following documents before opening the L/C
LCA form
IMP form
Necessary charger documents for documentation

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The above documents/papers must be completed duly signed and filled by the
parties according to the instruction of the concern banker.
After scrutinizing above-mentioned documents carefully, bank delivers the following
forms to be filled up by importer and banker then check it carefully:
Whether the goods to be imported is permissible or not.
Whether the goods to be imported is demanding or not.

18.2. L/C APPLICATION FORM (L/CAF)
L/C Application Form is a sort of an agreement between customer and bank on the
basis of which letter of credit is opened. Bank provides a printed form for opening of
L/C to the importer. A special adhesive stamp of value Tk.200 is affixed on the form
in accordance with Stamp Act currently in force. While opening, the stamps are
cancelled. Usually the importer expresses his decision to open the L/C quoting the
amount of margin in percentage. Usually the importer gives the following
information
1) Full name and address of the importer
2) Full name and address of the beneficiary
3) Draft amount
4) Availability of the credit by sight payment/ acceptance/ negotiation/
deferred payment
5) Time bar within which the documents should be presented
6) Sales type (CIF/FOB/C&F)
7) Brief specification of commodities, price, quantity, indent no. etc.
8) Country of origin
9) Bangladesh Bank registration no.
10) Import License/LCAF no.
11) IRC no.
12) Account no.
13) Documents no.
14) Insurance Cover Note/Policy no., date, amount
15) Name and address of Insurance Company
16) Whether the partial shipment is allowed or not
17) Whether the transshipment is allowed or not

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18) Last date of shipment
19) Last date of negotiation
20) Other terms and conditions (if any)
21) Whether the confirmation of the credit is requested by the beneficiary or
not.
22) The L/C application must be completed/filled in properly and signed by the
authorized person of the importer before it is submitted to the issuing
bank.
18.3. L/C AUTHORIZATION FORM (L/CAF)
The Letter of Credit Authorization Form (LCAF) is the form prescribed for the
authorization of opening letter of credit/payment against import and used in lieu of
import license. The authorized dealers are empowered to issue LCA Forms to the
importers as per basis of licensing of the Import Policy Order in force to allow import
into Bangladesh. If foreign exchange is intended to be bought from the Bangladesh
Bank against an LCAF, it has to be registered with Bangladesh Banks Registration
Unit located in the concerned area office of the CCI&E. The LCA Forms available with
authorized dealers are issued in set of five (05) copies each. First Copy is exchange
control copy, which is used for opening of LC and effecting remittance. Second Copy
is the custom purpose copy, which is used for clearance of imported goods from
custom authority. Triplicate and Quadruplicate Copy of LCAF are to be sent to
concerned area of CCI&E office by authorized dealer/Registration Unit of Bangladesh
Bank. Quintuplicate Copy is kept as office copy by authorized dealer/Registration
Unit. The Letter of Credit Authorization Form (LCAF) contains the followings
Name and address of the importer
IRC no. and year of renewal
Amount of L/C applied for (both in figure and in word)
Description of item(s) to be imported
HS Code No.
Signature of the importer with seal
List of goods to be imported
Forwarding Documentary Credit by Advising or Confirming Bank:

20
There are usually two banks involved in a documentary credit operation. The issuing
bank and the 2
nd
bank, the advising bank, is usually a bank in the sellers country. The
issuing bank asks another bank to advise or confirm the credit.
If the 2
nd
bank is simply advising the credit, it will mention that when it forwards
the credit to seller, such a bank is under no commitment or obligation to pay the
seller.
If the advising bank is also confirming the credit, this mention that the confirming
bank, regardless of any other consideration, must pay accept or negotiate without
recourse to seller.Then the bank is called confirming bank also.
Submission of Necessary Documents by Exporter to the Negotiating Bank:
As soon as the seller/exporter receives the credit and is satisfied that he can meet its
terms and conditions, he is in a position to load the goods and dispatch them. The
seller then sends the documents evidencing the shipment to the bank.
Exporter will submit those documents in accordance with the terms and conditions
as mentioned in L/C. Generally the documents observed by the foreign exchange
department are:
Bill of exchange
Commercial invoice
Bill of lading / Air way bill / Truck receipt
Certificate of origin
Packing list
Clean Report of Finding (CRF)
Insurance cover note
Pre-shipment certificate
The Documents Sent To The Issuing Bank Through The Negotiating Bank:
The negotiating bank carefully checks the documents provided by the exporter
against the credit, and if the documents meet all the requirement of the credit, the
bank will pay, accept, or negotiate in accordance with the terms and conditions of
the credit. Then the bank sends the documents to the L/C opening bank.
Making the Payment of Foreign Bill through the Reimbursing Bank:
The L/C issuing bank getting the documents checks immediately and if they are in
order and meet the credit requirements; it will arrange to make payment against L/C

Securities of L/C
21
through reimbursement bank and will send the importer the document arrival
notice.
19. SECURITIES OF L/C
Janata Bank Limited respective officials scrutinize the application in the following
manner-
a) The terms and conditions of the L/C must be complied with UCPDC 500
and Exchange Control & Import Trade Regulation Act.1947.
b) Eligibility of the goods to be imported.
c) The L/C must not be opened in favor of the importer.
d) Radioactivity report in case of food item.
e) Survey report or certificate in case of old machinery
f) Carrying vessel is not of Israel.
g) Certificate declaring that the item is operation not more than 5 years in case of
car.
20. EXPORT
Janata Bank Limited exports a large quantity of goods and services to many
countries. Readymade textile garments (both knitted and woven), Jute, Jute-made
products, frozen shrimps, tea, hide and skin, vegetables are the main goods that
Bangladeshi exporters exports to foreign countries. Garments sector is the largest
sector that exports the lion share of the country's export. Bangladesh exports most
of its readymade garments products to U.S.A and European Community (EC)
countries. Bangladesh exports about 40% of its readymade garments products to
U.S.A. Most of the exporters who export through Janata Bank Limited foreign

Export
22
exchange Branch are readymade garment exporters. They open export L/Cs here to
export their goods, which they open against the import L/Cs opened by their foreign
importers
20.1. FORMALITIES OF EXPORT PROCEDURE
There are a number of formalities, which an exporter has to fulfill before and after
shipment of goods. These formalities or procedures are enumerated in brief as
follows:
Obtaining Export Registration Certificate ERC:No exporter is allowed to
export any commodity for export from Bangladesh unless he is registered with
Chief Controller of Imports and Exports (CCI & E) and holds valid Export
Registration Certificate (ERC). After applying to the CCI&E in the prescribed
from along with the necessary papers, concerned offices of the Chief
Controller of Imports and Exports issues ERC. Once registered, exporters are
to make renewal of ERC every year.
Securing the order:After getting ERC, the exporter may proceed to secure
the export order. He can do this by contracting the buyers directly through
correspondence.
Obtaining EXP: After having the registration, the exporter applies to Janata
Bank Limited with the trade license, ERC and the Certificate from the
concerned Government Organization to get EXP. If the bank is satisfied, an
EXP is issued to the exporter.
Signing of the contract:After communicating with buyer the exporter has to
get contracted for exporting exportable items from Bangladesh detailing
commodity, quantity, price, shipment, insurance and mark, inspection,
arbitration etc.
Receiving the Letter of Credit:After getting contract for sale, exporter
should ask the buyer for Letter of Credit clearly stating terms and conditions
of export and payment.
Procuring the materials:After making the deal and on having the L/C
opened in his favor, the next step for the exporter is to set about the task of
procuring or manufacturing the contracted merchandise.

Export
23
Endorsement on EXP:Before the exporter with the customs or postal
authorities lodges the export forms, they should get all the copies endorsed
by Janata Bank Limited. Before shipment, exporter submits EXP. form with
commercial invoice. Then Janata Banks respective officers check it properly, if
satisfied, certified the EXP. Without EXP exporter cannot make shipment. The
customer must declare all export goods on the EXP issued by the authorized
dealers

20.2. DISPOSAL OF EXPORT PROCEDURE
Original:Customs authority reports first copy of EXP to Bangladesh Bank after
shipment of the goods.
Duplicate:Negotiating bank reports the Duplicate to Bangladesh Bank in or after
negotiation date but not later than 14 days from the date of shipment.
Triplicate:On realization of export proceeds the same bank to the same authority
reports Triplicate.
Quadruplicate:Finally, the negotiating bank as their office copy retains
Quadruplicate.
Shipment of goods:Exporter makes shipment according to the terms and
condition of L/C.
Presentation of export documents for negotiation:After shipment, exporter
submits the following documents to Janata bank Limited for negotiation.
Bill of Exchange or Draft
Bill of Lading
Invoice
Insurance Policy/Certificate
Certificate of origin
Inspection Certificate
Consular Invoice
Packing List

Export
24
Quality Control Certificate
G.S.P. certificate
Photo
Examination of Document:Banks deal with documents only, not with
commodity. As the negotiating bank is giving the value before repatriation of
the export proceeds it is advisable to scrutinize and examine each and
every document with great care whether any discrepancy(s) is observed
in the documents. The bankers are to ascertain that the documents are strictly
as per the terms of L/C Before negotiation of the export bill. Bank officers
assigned for examining the export documents may use a checklist for their
convenience.
Negotiation of export documents:Negotiation stands for payment of value to
the exporter against the documents stipulated in the L\C. If documents are in
order, Janata Bank Limited purchases (negotiates) the same on the basis of
banker- customer relationship. This is known as Foreign Documentary Bill
Purchase (FDBP).If the bank is not satisfied with the documents submitted to
Janata Bank Limited and gives the exporter reasonable time to remove the
discrepancies or sends the documents to L/C opening bank for collection. This
is known as Foreign Documentary Bill for Collection (FDBC).

Settlement of Local Bills:
The settlement of local bills is done in the following ways, -
The customer submits the L/C to Janata Bank Limited along with the
documents to negotiate
Janata Bank Limited officials scrutinize the documents to ensure the
conformity with the terms and conditions.
The documents are then forwarded to the L/C opening bank.
The L/C issuing banks gives the acceptance and forwards an acceptance letter.
Payment is given to the customer on either by collection basis or by
purchasing the document.

Import
25
20.3. IMPORT
Import means purchase of goods or services from abroad. Normally consumers, firms
and Government organizations import foreign goods or services to meet their various
necessities. Main import items are food item, edible oil, fertilizer, petroleum,
machineries, chemicals, raw materials of industry, cement clinkers etc. So, in brief,
we can say that import is the flow of goods and services purchased by local agent
staying in the country from foreign agent staying abroad.
20.4. IMPORT PROCEDURE
Authorized Dealer, banks are always committed to facilitate import of different
goods into Bangladesh from the foreign countries. Import Section, which is under
Foreign Exchange Department of a bank, is assigned to perform this job. And to serve
its parties demand to import goods, it always maintains required formalities that are
collectively termed as Import Procedure.
i) At first, the importer must obtain Import Registration Certificate (IRC) from
the CCI&E submitting the following papers:
Up to date Trade License.
Nationality and Asset Certificate.
Income Tax Certificate.
In case of company, Memorandum & Articles of Association and
Certificate of Incorporation.
Bank Solvency Certificate etc.
Required amount of registration fee
ii) Then the importer has to contact with the seller outside the country to obtain
the Proforma Invoice. Usually an indenter, local agent of the seller or foreign
agent of the buyer makes this communication. Beside these other sources are:
Trade fair.
Chamber of Commerce.

Import
26
Foreign Missions in Bangladesh.
Journals etc.
iii) When the importer accepts the Proforma Invoice, he/she makes a purchase
contract with the exporter detailing the terms and conditions of the import.
iv) After making the purchase contract, importer settles the means of payment
with the seller. An import procedure differs with different means of payment.
The possible means are Cash in Advance, Open Account, Collection Method
and Documentary Letter of Credit. In most cases, the Documentary Letter of
Credit in our country makes import payment. Purchase Contract contains
which payment procedure has to be applied.

20.5. PAYMENT MODES
Cash in advance: Importer pays full, partial or progressive payment by a foreign
DD, MT or TT. After receiving payment, exporter will send the goods and the
transport receipt to the importer. Importer will take delivery of the goods from
the transport company.
Open Account: Exporter ships the goods and sends transport receipt to the
importer. Importer will take delivery of the goods and makes payment by foreign
DD, MT, or TT at some specified date.
Collection Method: Collection methods are either clean collection or
documentary collection. Again, DocumentaryCollection may be Document against
Payment (D/P) or Document against Acceptance (D/A). The collection procedure
is that the exporter ships the goods and draws a draft/ bill on the buyer. The
exporter submits the draft/bill (only or with documents) to the remitting bank for
collection and the bank acknowledges this. Then the remitting bank sends the
draft/bill (with or without documents) and a collection instruction letter to the
collecting bank. Acting as an agent of the remitting bank, the collecting bank
notifies the importer upon receipt of the draft. The title of goods is released to
the importer upon full payment or acceptance of the draft/bill.
Letter of credit: Letter of credit is the well-accepted and most commonly used
means of payment. It is an undertaking for payment by the issuing bank to the

Import
27
beneficiary, upon submission of some stipulated documents and fulfilling the
terms and conditions mentioned in the letter of credit.

Export Finance
28
21. EXPORT FINANCE
Export through Janata Bank Ltd. for the year 2008 and 2009 is Tk.85418.00 million
and Tk. 87500.00 million respectively. In spite of Global Financial Crisis the growth
chart in export through Janata Bank Ltd. remains upwards due to our timely steps
regarding credit facilities and services packages. We have already re-fixed our
schedule of exchange at a reduced rate the loan pricing is more competitive. With
the credit lines our experts have introduce the following new products:
Cash Credit: Working capital facility to dyeing unit and packaging unit.
Mid term Loan: For procurement of machinery, space parts, boiler, generator,
vehicles etc. to export oriented industrial unit.
Packing Credit: Working capital facility to pay wages salary utility bills etc.
LTR, FC: Short term credit for procurement of capital machinery from abroad.
Term Loan: For (Export oriented) Ship Building.
Export Project BMRE: Loan for factory building construction. Expansion,
development and Maintenance, construction of factory godown, purchase of
machineries from local and foreign markets, covered van, generator and
establish ETP.

Export Finance
29
21.1. DETAILS COMMODITY WISE EXPORT
Here given details commodity wise export figures of Janata Bank Limited from 2006
to 2009. It has shown here commodity wise and monthly wise export figures in
details.

DETAILS EXPORT OF JANATA BANK LIMITED OF 2006 TO 2009
Month Raw Jute
Jute
Goods
Tea
Hide &
Skin
RMG F.FiSH
Vegetabl
es
Others
2
0
0
6

January
3.04 38.56 1.33 58.76 244.75 47.91 13.7 85.31

February 2.68 35.07 0.56 37.7 260.93 41.94 12.54 61.67
March 10.16 23.2 0.9 67.21 295.23 34.05 7.17 67.67
April 4.95 33.55 0 64.01 337.37 46.25 8.54 121.69
May 1.8 89.94 0 75.84 269.97 75.46 19.37 79
June 6.4 29.18 0 82.22 302.17 65.55 10.48 151.68
July 2.71 37.11 0 76.66 329.88 77.37 13.58 83.59
August 2.72 33.18 0 54.31 322.15 65.13 17.77 165.86
September 3.52 32.13 0 49.65 265.47 77.13 9.76 166.92
October 15.94 30.52 0 53.45 260.08 22.32 6.81 111.28
November 10.13 53.69 0 54.41 302.6 46.59 7.12 113.77
December 4.79 108.27 0 84.44 359.22 74.77 9.51 145.89
Total 68.84 544.4 2.79 758.66 3549.82 674.47 136.35 1354.33
Grand Total 7089.66
2
0
0
7

January 3.11 32.66 0 34.63 280.16 53.71 9.48 129.76
February 2.06 43.5 0 60.85 285.08 21.21 9.32 106.83
March 6.75 44.96 0 86.3 270.15 29.4 6.95 124.47
April 9.69 46.76 0 74.4 243.85 59.85 8.44 122.07
May 5.92 35.41 0 75.02 291.78 69.91 11.06 195.85
June 5.32 30.76 0 73.79 293.72 83.87 14.06 113.35
July 6.11 40.35 0.33 63.69 338.71 72.26 14.69 101.07
August 6.92 38.62 0 55.82 338.56 91.98 12.02 100.1
September 9.06 44.41 0 59.97 270.65 79.64 14.01 95.2
October 5.1 42.44 0.18 61.68 247.73 63.33 8.79 65.4
November 7.69 41.55 0.68 56.04 269.27 88.15 9.14 92.92
December 8.18 54.13 0.75 78.51 411.27 29.97 9.09 173.17
Total 75.91 495.55 1.94 780.7 3540.93 743.28 127.05 1420.19

Export Finance
30
Grand Total 7185.55
2
0
0
8

January 8.18 35.74 0.56 39.81 323.65 65.04 11.36 80.13
February 1.55 57.35 0.83 52.56 332.52 45.16 11.34 90.25
March 4.88 90.44 0.47 74.6 348.78 53.54 10.22 99.13
April 4.76 74.57 0.46 89.53 278.37 66.17 10.4 157.21
May 3.66 48.59 0.3 69.31 284.77 44.88 13.17 200.85
June 7.27 55.09 0 65.47 384.56 102.27 15.62 152.75
July 9.73 45.29 0.34 58.16 376.99 111.91 18.97 127.65
August 4.79 46.03 0.37 65.4 358.42 65.73 16.15 200.13
September 7.11 43.51 0 94.6 344.92 102.1 28.56 200.3
October 5.73 45.41 0 106.46 331.72 51.07 11.02 89.39
November 4.7 55.21 0 72.86 368.23 71.88 8.77 159.13
December 12.32 47.31 1.87 48.77 456.99 42.48 7.32 247.84
Total 74.68 644.54 5.2 837.53 4189.92 822.23 162.9 1804.76
Grand Total 8541.76
2
0
0
9

January 1.98 37.32 0.39 64.21 330.34 63.6 12.08 202
February 3.5 38.15 0 65.37 385.78 40.83 9.82 146.68
March 3.03 38.56 1.05 74.3 447.59 35.75 9.74 114.08
April 4.78 44.91 0 37.67 426.23 52.16 10.33 135.54
May 4.32 39.01 0 103.5 325.72 80.79 14.15 178.66
June 10.03 26.69 0.12 89.93 432.8 92.21 14.52 99.29
July 2.96 41.8 0.07 118.53 396.29 77.5 16.67 146.8
August 6.65 44.05 0 99.85 397.05 97.43 17.96 77.58
September 20.06 42.48 0.39 91.42 332.96 70.44 13.61 101.43
October 27.52 52.78 0 79.55 265.8 69.34 13.37 158.33
November 11.55 72.35 0.07 127.69 353.31 76.36 12.88 153.26
December 5.4 43.31 0 69.2 353.95 61.12 11.47 283.21
Total 101.78 521.41 2.09 1021.22 4447.82 817.53 156.6 1796.86
Grand Total 8865.31

In 2006 total export of Janata Bank was Tk. 7089.66 crore. Ready Made Garments
was Tk. 3549.82 crore and it was the highest position. Hide & skin and frozen fish
took the second and third position consequently. It is also clearly observed that in
the month of August and September export amount was highest through the year.
In 2007 total export of janata bank was tk. 7185.55 crore. Readymade garments was
tk. 3540.93 crore and it was the highest position. Hide & skin and frozen fish took the
second and third position consequently. First half of the year 2007 export amount

was comparatively better posi
observed that total export amount of 2007 is little bit higher than
In 2008 total export of janata bank was tk. 8541.76 crore. Ready made garments was
tk. 4189.92 crore and it was the highes
frozen fish tk. 822.23 crore took the second and third position consequently.
Throughout the whole year 2008 export amount was comparatively better than the
last two years. It is also me
higher than 20060and 2007.

In FY 2009 target export was Tk. 66480.00 million, but earned Tk. 88653.10 million
against the target amount. This was 133% higher than the target. It may mentioned
here that up to October 2009 earn
export had attained before two months end of the year.

In spite of world economic crisis and political instability in the country Janata
Limited has kept its upward export trend up to last year. Because Its expertise and
experienced management team offered different promotional offer and financially
7089.66
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
2006
Export comparison of JBL from 2006 to 2009
was comparatively better position than the second half of the year. It is also clearly
observed that total export amount of 2007 is little bit higher than 2006.
tk. 4189.92 crore and it was the highest position. Hide & skin tk. 837.53 crore and
last two years. It is also mention here that total export amount was significantly
higher than 20060and 2007.
here that up to October 2009 earned was Tk. 7231.80 million, that means target of
export had attained before two months end of the year.

In spite of world economic crisis and political instability in the country Janata
7185.55
8541.76
8865.31
2007 2008
Export (in mil)
Export Finance
31
tion than the second half of the year. It is also clearly
2006.
t position. Hide & skin tk. 837.53 crore and
port amount was significantly
ed was Tk. 7231.80 million, that means target of
In spite of world economic crisis and political instability in the country Janata Bank
8865.31
2009

Export Finance
32
assisted to the exporters to boost up the export trend. They main offered and
assisted-
Concessional rate of interest.
Export incentive programs.
Export Processing Zone facility.
Scope of establishment of export oriented industry by 100% foreign
investment and by joint venture.
Full-fledged infrastructural and logistic support for export i.e. project finance,
working capital, pre-shipment & post-shipment export finance, guarantee,
bonding facility, etc.
Consulting facility by an expert group of officials.

21.2. EXPORT TARGET & WORL
From 2006 to 2009 export of Janata Bank
economic crisis period Janata Banks management shows their best performance.
That is why export position remains in upward condition.
In spite world economic crisis export growth has increased 4%. Which is hig
among four government owned banks.

Table: Export growth of Janata Bank Limited
Year
2007
2008
2009

0
20000
40000
60000
80000
100000
2007
Export target and achievement of Janata
EXPORT TARGET & WORLD ECONOMIC CRISIS
From 2006 to 2009 export of Janata Bank is in increasing pattern. Even during world
That is why export position remains in upward condition.
In spite world economic crisis export growth has increased 4%. Which is hig
among four government owned banks.
Table: Export growth of Janata Bank Limited
Target Achievement Percentage of Target
77983.8 71855.5
86226.6 85417.8
66480 88653.1

2008 2009
Bank Limited
Target Achievement
Export Finance
33
D ECONOMIC CRISIS
is in increasing pattern. Even during world
In spite world economic crisis export growth has increased 4%. Which is highest
Percentage of Target
92.18%
99.06%
133.00%


Export Finance
34
21.3. NATIONAL AND JANATA BANK LIMITED'S EXPORT
PERFORMANCE
Contribution to National Export of Janata Bank Limited (mil $)

National Export
Contribution to National Export
of Janata Bank Limited
Financial Year Target Achievement Achievement Percentage
2003-2004 7227.70 7603.00 632.90 8.21%
2004-2005 8565.78 8655.00 692.80 8.00%
2005-2006 10159.20 10526.16 958.02 9.10%
2006-2007 12500.00 12187.5 1057.68 8.68%
2007-2008 14500 14411.1 1034.56 7.12%
2008-2009 16298.43 15565.1 1300 8.35%

For global economic recession and political instability inside the country contribution
to national export of Janata Bank limited was lowest in the fiscal year 2007-2008
among last six fiscal years. And in fiscal year 2008-2009 it turned up warding.
Because to increase export business providing the exporter more foreign currency, to
strengthen their production capacity, to facilitate the in every maximum scope, the
bank has took four incentives. These have been proved to be fruitful adding Tk.2.00cr
(approx.) more to the banks annual income through only export business.
These new four incentives are as follows in brief:
In addition with the existing working capital it provides exporters emergence
need to execute their foreign order.
For importing bulk quantity of dies, chemical it is a great support for the
exporter.
Loan for importing generator, small machines, vehicles for emergency need.
For importing capital machinery.

21.4. COMPARISON OF EXPORT
BANKS

Comparison of Export of 2009 with

Total export Janata Bank Limited in 2009 was Tk.88653.1 million. Sonali Banks
export was Tk.64243.3 million. Agrani Banks and Rupali
Tk.44606.8 million and Tk.7458.1 million respectively. From above table and graph
we can say that Janata Bank Limited is the top position among four government
owned banks with a large difference. Its nearest competitor is Sonali Bank Li
88653.1
Janata Bank
Comparison of Export of 2009 with other Banks
COMPARISON OF EXPORT OF 2009 WITH PUBLIC
Comparison of Export of 2009 with other Banks (tk in Mil)
Janata Bank 88653.1
Sonali Bank 64243.3
Agrani Bank 44606.8
Rupali Bank
export was Tk.64243.3 million. Agrani Banks and Rupali Banks export was
owned banks with a large difference. Its nearest competitor is Sonali Bank Li
64243.3
44606.8
Sonali Bank Agrani Bank
(tk in Mil)
Export (in Mil)
Export Finance
35
OF 2009 WITH PUBLIC
other Banks (tk in Mil)
88653.1
64243.3
44606.8
7458.1
Banks export was
owned banks with a large difference. Its nearest competitor is Sonali Bank Limited.
7458.1
Rupali Bank

Import Finance
36
22. IMPORT FINANCE
Traditionally Janata Bank Ltd. is pioneer in handling major portion of countrys
import business. The total volume of import as on 30-11-2009 is 107168 million.
Major import items are industrial raw materials, chemicals, capital machineries,
scraped vessels and petroleum etc.

22.1. COMMODITY WISE IMPORT OF JANATA BANK
LIMITED
Commodity wise Import of JB from 2006 to 2009
Commodities 2009 2008 2007 2006
Food Item 904 1075.91 396.25 12.14
Edible Oil 339.42 155.97 18.9 14.66
Fertilizer 2300.96 2779.16 1140.44 599.37
Petroleum 3483.1 4448.87 3659.86 8774.58
Machineries 1190.41 1108.28 853.11 1089.54
Chemicals 559.45 988.37 608.84 490.82
Raw Materials of Industry 2600.52 1306.44 1289.95 1408.16
Ship Breaking 23.31 177.95 101.4 144.25
Cement Clinkers 257 279.55 230.9 209.79
Others 194.33 620.8 106.89 137.59
Total 11852.5 12941.3 8406.54 12880.9

Through quite a good number of Authorized Dealer Branches and 1198 nos. foreign
correspondents worldwideJanata Bank Limited has been extending full range import
and relevant finance facilities. Setting Industrial vision to facilitate optimally, bank's
involvement has been showing sharp rising trend.

Import Trend of JB from 2006 to 2009
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009

From 2000 to 2006 import of Janata
the country was under caretaker government. Export, import, foreign remittance,
0
20000
40000
60000
80000
100000
120000
140000
2000 2001 2002
Total Import (in mil)
48005
54666
58889
60477
74920
72912
128809
84065
129413
118525
From 2000 to 2006 import of Janata Bank Limited is gradually increasing. But in 2007
2002 2003 2004 2005 2006 2007 2008
Total Import (in mil)
Import Finance
37
mil)

Bank Limited is gradually increasing. But in 2007
2009

Import Finance
38
employment in abroad etc. were moving forward in slow rate. For this reason import
in 2007 sharply down compare with 2006. Again in 2008 import of Janata Bank
Limited reached higher than 2007. And in 2009 import is dropped little bit.
22.2. IMPORT TARGET AND ACHIEVE IN LAST 3 YEARS

Year Target Achieved
Percentage of
Achieved
2007 8000 840.54 105%
2008 9247.19 12941.3 140%
2009 10172 11852.5 116%

22.3. CONTRIBUTION OF JANATA BANK IN NATIONAL
IMPORT

Year
National Import
Tk.(crore)
Growth
Import of
Janata Bank
Tk.(crore)
Growth
2006 111307 0 12880.9 0
2007 127221 14.30% 8406.5 -35.20%
2008 163505 27.78% 12941.3 54.17%
2009 18440 -9.23% 11852.5 -8.41%

Import Finance
39
22.4. INCOME FROM IMPORT
Particulars 2007 2008
L/C Commissions and Other charges 77.87 86.53
Interest (PAD,LIM,LTR and Others) 387.63 278
Total 465.5 364.53

22.5. CONTRIBUTION TO NATIONAL IMPORT OF JB IN LAST
DECADE

Table: Contribution to National Import of Janata Bank Limited
Fiscal Year
National Tk.
(Crore)
Janata bank Tk.
(Crore)
Percentage
1995-1996 28303.78 4009.87 14.16726
1996-1997 30539.62 3799.45 12.44105
1997-1998 34183.13 3731.94 10.91749
1998-1999 38480.32 4646.58 12.07521
1999-2000 42130.6 4754.46 11.28505
2000-2001 50371 5233.07 10.38905
2001-2002 49049.1 5345.2 10.89765
2002-2003 55917.63 6117.06 10.93941
2003-2004 64256.56 6952.62 10.82009
2004-2005 80894.78 8397.96 10.38134
2005-2006 99130.07 9230.42 9.311423
2006-2007 118389.8 10757.9 9.086847
2007-2008 166974.3 9466.11 5.669201

Increase of import indicates the country is less wealthy and decrease of import
indicates that the country has sufficient resources and is able to fulfill its local
demand. So as a publicly owned bank Janata bank Limited is less service providing
attitude to the importers. It provides little facilities to its importers. As a result
import contribution percentage to national is decreasing gradually from fiscal year
1995-1996 to fiscal year 2007
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
National Import vs JBL's import in last
1995
-
1996
1996
-
1997
JBL Tk. (Cr) 4010 3799
0
2000
4000
6000
8000
10000
12000
T
k
.

i
n

c
r
o
r
e
JBL's contribution from 1995 to 2007

to the importers. It provides little facilities to its importers. As a result
1996 to fiscal year 2007-2008.
decade (1995 to 2007)
National Tk. (Crore) Janata bank Tk. (Crore)
1997
-
1998
1998
-
1999
1999
-
2000
2000
-
2001
2001
-
2002
2002
-
2003
2003
-
2004
2004
-
2005
2005
2006
3732 4647 4754 5233 5345 6117 6953 8398 9230
JBL's contribution from 1995 to 2007
Import Finance
40
to the importers. It provides little facilities to its importers. As a result
2005
-
2006
2006
-
2007
2007
-
2008
9230 1075 9466

Foreign Remittance
41
23. FOREIGN REMITTANCE
Inward foreign remittance through Janata Bank Ltd. up to November 2009 is Tk.
51508.55 million. Foreign remittance from NBRs reached record high of Tk. 45924
million in 2008 against Tk.36788 million in 2007 and continue to play an important
supporting role in strengthening the economy of the county Janata Bank ltd. by
reducing lead-time, has ensured quick delivery of foreign remittance, an NBR branch
has been opened to serve exclusively Non-resident Bangladeshis through Speedy
Money Remittance System with instant to the beneficiaries. Anybody willing to
remit foreign currency from any corner of the world can use wide network of the
bank. The remittance reaches to the beneficiary within 3 days without charging any
commission. Our worldwide network includes 4 branches in UAE, 2 exchange houses
in Italy and correspondent relationship with all the major Banks and all important
trade centers of the world.
Recently Janata Bank Ltd. has launched its Speedy Foreign Remittance Payment
System which enables beneficiaries to receive their money within shortest possible
time. The beneficiary also gets information of remittance through automated SMS.
Its a secured, easy, cost effective and speedy way of remittance for the remitter.
Janata bank Ltd. has signed an agreement with Western Union Network to facilitate
wide range of remittance of the globe. Both the organizations make it possible to
receive the money from about 300,000 locations of 200 countries instantly with
prevailing mutual mechanism and workforce. The achievement of Janata Bank Ltd. in
attracting foreign remittance as compared to countrys performance is given bellow:
23.1. COUNTRY WISE REMITTANCE OF JANATA BANK
LIMITED
To facilitate sending money in Bangladeshi Taka directly, Janata Bank Limited has
Taka Drawing Arrangement with many banks/exchange companies in different
countries. The expatriate Bangladeshis may send their money in BDT (Bangladeshi
Taka) through the branches/subsidiaries of Janata Bank Limited and foreign
banks/exchange companies. Remittance services are available at all branches and
foreign remittances may be sent to any branch by the remitters favoring their
beneficiaries. Remittances are credited to the account of beneficiaries instantly or
within shortest possible time.

Table: Country wise Foreign Remittance of JBL from 2004 to
country
JanataEchange Co., Italy
Janata Bank, UAE Branches
Other Exchange Co.
Kuwait
Saudi Arabia
Oman
Bahrain
Greece
UK
Qatar
United States
Malaysia
Singapore
Korea
Canada
Australia
Other sources (SWIFT/Telex)
Grand Total

0
10000
20000
30000
40000
50000
60000
Country wise Foreign Remittance of JBL from 2004
2004
Foreign Remittance
Table: Country wise Foreign Remittance of JBL from 2004 to
country 2004 2005 2006 2007
JanataEchange Co., Italy 1182.5 2077.1 3102.1 3513
Janata Bank, UAE Branches 5196 5638 5666.7 9188.3
Other Exchange Co. 2143.5 2279.5 2901.7 4714
Kuwait 3468.6 4089.3 5652.6 7615.9
Saudi Arabia 4057.9 3762.7 3598.3 3025.2
Oman 1129.8 1095.6 1106.2 1171
Bahrain 785.2 817.4 853.2 834.5
Greece 0 0 537.9 697.9
UK 0 0 0 0
Qatar 196.1 190.8 149.2 173.6
United States 26.9 29.2 132.8 153.6
Malaysia 1139.3 623.9 264.2 208.7
Singapore 0.2 0.4 5.3 0.7
Korea 0 23.2 2.5 0
Canada 166.7 0 6.6 7.2
Australia 14.4 0 0 0
(SWIFT/Telex) 4556.4 5945.7 5288 5484.4
Grand Total 24063.5 26572.8 29267.3 36788
Grand Total
to 2006
2004 2005 2006 2007 2008 2009
Foreign Remittance
42
Table: Country wise Foreign Remittance of JBL from 2004 to 2006
2008 2009
2289.8 1446.8
12548.8 16207.7
6878.2 8738.1
7780.1 6764.3
4536 7718.2
1341.6 1038.7
916.7 716.1
591.5 524.5
2213.3 6174.9
200.6 118.9
222.3 285.7
113.2 23.9
20.2 98.1
0 0
0 0
0 0
6272.1 6334.2
45924.4 56190.1


Foreign Remittance
43

Inward remittance from Bangladeshi nationals working abroad continued to play an
important role in strengthening the current account. Receipts on this sector
increased gradually in every year from 2006 to 2009. The underlying reason was that
Bangladesh Bank has simplified the approval policy of drawing arrangements
between foreign exchange houses and domestic bank. Janata Banks management
has taken this opportunity.
For quick payment of TTs issued by 4(Four) UAE branches of Janata Bank Limited (
Abu Dhabi, Al-Ain, Dubai &Sharjah branch) Foreign Exchange Corporate Branch,
Dhaka( FECB, Dhaka), Laldighi East Corporate Branch, Chittagong(LDE, Ctg), Foreign
Exchange Corporate Branch, Sylhet( FECB, Sylhet), Khulna Corporate Branch, Khulna,
Barisal Corporate Branch, Barisal &Rajshahi Corporate Branch, Rajshahi are
nominated. To facilities to its remitters Janata bank Limited has started-
1. FECB, Dhaka will cover whole Dhaka Division,
2. LDE, Ctg will cover whole Chittagong Division, except branches under greater
Comilla and Noakhali Area.
3. FECB, Sylhet will cover whole Sylhet Division,
4. Khulna Corporate will cover whole Khulna Division,
5. Barisal Corporate will cover whole Barisal Division,
6. Rajshahi Corporate will cover whole Rajshahi Division,
7. Comilla Corp. will cover all branches under greater Comilla district.
8. Noakhali Corp. will cover all branches under greater Noakhali district.
Commission for issuance of Taka Drafts from our UAE branches has been reduced
and refixed from AED 10.00 to AED 4.00 and commission for issuance of TTs drawn
on Bangladesh and payable at any bank branches are re-fixed at AED 12.00 from AED
30.00.
Commission for issuances of Taka drafts at UAE branches has been
reduced irrespective of amount. 1% interest above the normal savings deposit rate is
offered to SB accounts receiving foreign remittance.

23.2. WAGE EARNERS' REMITT
Inward remittances from Bangladeshi nationals working abroad continued to play an
important role in strengthening the current account of Ba
this sector increased by 22.4 percent to USD 9689.3 million in FY 09 from USD 7914.8
million in FY 08. The underlying reason was that Bangladesh Bank has simplified the
approval policy of drawing arrangements between foreign exch
domestic banks. As a result 40 banks have been allowed for establishing 820 drawing
arrangements with 208 exchange houses all over the world for collecting
remittances. Due to these measures, remittances have recorded a substantial
increase by 22.4 percent to USD 9689.3 million during the year 2009. Remittances as
percentage of GDP increased by 089 percentage points to 10.84 in FY 09 from 9.95 in
FY 2008. The shares of major source countries in the remittance receipts of FY 2008
and FY 2009 are given bellow.

Wage earners' remittances
2008
Country Percentage
Kingdom of
Saudiarabia
29.40%
UAE 14.30%
UK 11.30%
Kuwait 10.90%
USA 17.50%
Other countries 16.60%
Total 100.00%

Foreign Remittance
WAGE EARNERS' REMITTANCES OF NATION
important role in strengthening the current account of Bangladesh Bank. Receipts on
approval policy of drawing arrangements between foreign exchange houses and
by 22.4 percent to USD 9689.3 million during the year 2009. Remittances as
are given bellow.
Percentage
29.40%
14.30%
11.30%
10.90%
17.50%
16.60%
100.00%

UK
11%
Kuwait
11%
USA
18%
Other
countries
17%
2008
Foreign Remittance
44
ANCES OF NATION
ngladesh Bank. Receipts on
ange houses and
by 22.4 percent to USD 9689.3 million during the year 2009. Remittances as
Kingdom of
Saudiarabia
29%
UAE
14%

Wage earners'
remittances 2009
Country Percentage
Kingdom of
Saudiarabia
29.50%
UAE 18.10%
UK 8.20%
Kuwait 10.00%
USA 16.30%
Other countries 17.90%
Total 100.00%

This is the whole scenery of inward foreign remittance of 2008 and 2009 of
Bangladesh. In the sector of foreign remittance earning 2008 Kingdom of Saudiarabia
in highest position that is 29.40%, USA second position
Emirates is third position 14.30%. And in 2009 Kingdom of Saudiarabia again top
position, in second position United Arab Emirates and in third position USA. Their
inward remittances are 29.50%, 18.10% and 16.30% respectively.
23.3. FOREIGN EXCHANGE AND

Foreign Exchange and Foreign Trade of JB Trade of JB 2008
Year
Import
Export
Remittance

Foreign Remittance
in highest position that is 29.40%, USA second position- 17.50% and United Arab
position 14.30%. And in 2009 Kingdom of Saudiarabia again top
inward remittances are 29.50%, 18.10% and 16.30% respectively.
FOREIGN EXCHANGE AND FOREIGN TRADE OF JB
ign Exchange and Foreign Trade of JB Trade of JB 2008
2006 2007 2008
128809 84065 129413
70897 71855 85418
29267 36788 45924

UAE
18%
UK
8%
Kuwait
10%
USA
16%
Other
countries
18%
2009
Foreign Remittance
45
17.50% and United Arab
position 14.30%. And in 2009 Kingdom of Saudiarabia again top
FOREIGN TRADE OF JBL
ign Exchange and Foreign Trade of JB Trade of JB 2008
2008 2009
129413 118525
85418 88653
45924 56190
Kingdom of
Saudiarabia
30%
UAE
18%

Export and foreign remittance are in good position. They are in
2006 to 2009. And due to global economic crisis and for various trade barriers and
quotas import does not grow much higher compare with export and foreign
remittance. In 2007 export and import are comparatively low with other years du
political instability inside the country. But inward remittance is continuously upward
trend up to 2009.
23.4. ANALYSIS: EFFECT OF
IMPORT AND EXPORT VO
The import and export volume is dependent on various variables.
one of them. It has some influence over the import and export volume.
the effect of change in exchange rate of between BDT and USD
and export volume of Bangladesh
collected from September 2007 to October 2010
rate is averaged to calculate average monthly exchange rate and the import
data is gathered by accumulating total monthly trade in USD.
The objective is to measure the relatio
volume. Thats why exchange rate
import volume is taken as dependent variable.

0
20000
40000
60000
80000
100000
120000
140000
Import
Foreign Exchange and Foreign Trade of JBL
Foreign Remittance
Export and foreign remittance are in good position. They are in increasing trend from
remittance. In 2007 export and import are comparatively low with other years du
ANALYSIS: EFFECT OF EXCHANGE RATE CHANGE
IMPORT AND EXPORT VOLUME OF BANGLADESH
The import and export volume is dependent on various variables.
one of them. It has some influence over the import and export volume.
the effect of change in exchange rate of between BDT and USD effects the import
and export volume of Bangladesh, exchange rate, import and export data was
lected from September 2007 to October 2010. The monthly recorded exchange
rate is averaged to calculate average monthly exchange rate and the import
data is gathered by accumulating total monthly trade in USD.
he objective is to measure the relationship of exchange rate with import
exchange rate was taken as independent variable and export
import volume is taken as dependent variable.

Export Remittance
2006 - 2008
2006 2007 2008 2009
Foreign Remittance
46

increasing trend from
remittance. In 2007 export and import are comparatively low with other years due to
EXCHANGE RATE CHANGE ON
LUME OF BANGLADESH
The import and export volume is dependent on various variables. Exchange rate is
one of them. It has some influence over the import and export volume.To analyze
effects the import
, exchange rate, import and export data was
. The monthly recorded exchange
rate is averaged to calculate average monthly exchange rate and the import-export
nship of exchange rate with import-export
as independent variable and export-
Remittance

Foreign Remittance
47
DATA INPUT
Import-Export volume and exchange rate data for regression analysis
(Sep 2007 to Oct 2010)

IMPORT (IN MIL USD)
RATE (BDT AGAINST
USD) EXPORT (IN MIL USD)
2007-M09 1173678 59.6 894416
2007-M10 1077910 59.6 919419
2007-M11 911127 59.6 823967
2007-M12 863274 59.6 942246
2008-M01 1206805 59.6 907999
2008-M02 1081391 59.6 822775
2008-M03 1197316 59.6 1053795
2008-M04 1205496 59.6 1149721
2008-M05 1058890 59.6 1219383
2008-M06 1132444 59.6 1242458
2008-M07 1432522 59.6 1245967
2008-M08 1384172 59.6 1222807
2008-M09 1376703 64.81054 1207476
2008-M10 1267754 67.5895 1060847
2008-M11 947948 67.5895 957916
2008-M12 1116305 68.36333 1169821
2009-M01 1224113 68.78 947356
2009-M02 1157303 68.78 860481
2009-M03 1371920 68.78 1150489
2009-M04 1211932 68.86095 1249552
2009-M05 1071066 68.95 1179575
2009-M06 1212953 68.95 1033356
2009-M07 1399738 68.95 1040726
2009-M08 1370168 68.95 1125030
2009-M09 1340855 68.95 1228856
2009-M10 1183320 68.95 1253137
2009-M11 977274 68.95 1271118
2009-M12 1120641 68.95 1346689
2010-M01 1120365 68.95 1150258
2010-M02 1125516 68.95 1132371
2010-M03 1361427 68.95 1333799
2010-M04 1325043 69.07687 1430597
2010-M05 1172987 68.76616 1496174
2010-M06 1342205 69.04641 1455841
2010-M07 1391786 69.11474 1496609
2010-M08 1683012 69.17916 1393738
2010-M09 1617571 69.18572 1563642
2010-M10 855785 69.78913 1161274

0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
import trend (in mil USD)
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
export trend (in mil USD)
Foreign Remittance

import trend (in mil USD)
import
export trend (in mil USD)
export
Foreign Remittance
48

Foreign Remittance
49
REGRESSION ANALYSIS OF IMPORT VOLUME VS EXCHANGE RATE
Running the analysis with the data using spss the report that generated:
Variables Entered/Removed
b

Model Variables Entered
Variables
Removed Method
1 exchange rate
a
. Enter
a. All requested variables entered.

b. Dependent Variable: Import vol

Model Summary
Model R R Square Adjusted R Square
Std. Error of the
Estimate
1 .244
a
.059 .034 1.79733E5
a. Predictors: (Constant), exchange rate

ANOVA
b

Model Sum of Squares df Mean Square F Sig.
1 Regression 7.555E10 1 7.555E10 2.339 .135
a

Residual 1.195E12 37 3.230E10

Total 1.271E12 38


b. Dependent Variable: Import vol

Coefficients
a

Model
Unstandardized Coefficients
Standardized
Coefficients
t Sig. B Std. Error Beta
1 (Constant) 536726.574 442746.405

1.212 .233
exchange rate 10246.483 6700.223 .244 1.529 .135
a. Dependent Variable: Import
vol

Foreign Remittance
50
Coefficients
a

Model
Standardized
Coefficients
1 (Constant) 536726.574 442746.405

1.212 .233
exchange rate 10246.483 6700.223 .244 1.529 .135

We can say from the coefficient table that, the equation is
Y
Export
= 536726.574mil + 10246.483mil * (exchange rate)
if the exchange rate increases or decreases by 1 tk against USD then the import
volume will be increased or decreased by 10246.483mil USD worth.

From the model summary table, we can say that R square is only .059. it means the
changes in exchange rate can only explain 5.9% of the change in import volume. It
also means that there are other important factors are there to influence the import
volume rate.Its also true that Bangladesh is using controlled floating exchange rate
with USD. The dispersion is not much significant for short time but with long time it
has some effects.
REGRESSION ANALYSIS OF EXPORT VOLUME VS EXCHANGE RATE

Model Summary
Model R R Square
Adjusted R
Square
Std. Error of the
Estimate
1 .273
a
.074 .049 2.32013E5

ANOVA
b

1 Regression 1.598E11 1 1.598E11 2.969 .093
a

Residual 1.992E12 37 5.383E10

Total 2.152E12 38


Foreign Remittance
51
ANOVA
b

1 Regression 1.598E11 1 1.598E11 2.969 .093
a

Residual 1.992E12 37 5.383E10

Total 2.152E12 38

b. Dependent Variable: export vol

Coefficients
a

Model
Standardized
Coefficients
1 (Constant) 156722.528 571528.004

.274 .785
exchange rate 14903.507 8649.116 .273 1.723 .093
a. Dependent Variable: export vol

We can say from the coefficient table that, the equation is
Y
import
= 156722.528mil + 14903.507mil * (exchange rate)
If the exchange rate increases or decreases by 1 tk against USD then the import
volume will be increased or decreased by 14903.507mil USD worth.

The R square value is .074, which means the changes of exchange rate can influence
only 7.4% of the variation of import volume.
23.5. PROBLEM OF FOREIGN EXCHANGE IN BANGLADESH
As a developing country, here there is a great opportunity to expand a business
easily. Human resources cost are also cheap. On the other hand people have strong
faith to the banking sector. But this sector is not free from problems. Some
challenges of the banking sector are:
1. Global economic crisis which decreases the consumptions of goods and also
the exports.
2. Withdrawal of restriction on China for RMG export to Europe and USA in
2009.
3. Export volume has dropped due to lack of global demand.

conclusion
52
4. Lack of diversification, especially for export sector.
5. Very high dependency on Textile and RMG Sectors to export.
6. In case of import prices of commodities and raw materials in international
market.
7.Slow recycling of investment of commodity in commercial sectors.
8 . Low level of project Finance in 2007, 2008 & 2009 due to the
national political instability.
It is clear that the Janata Bank Limited Foreign Exchange department has ensured
both quality and services which helps to improve the overall status of the Bank. For
this reason Janata bank Limited has able to achieve second position in country and
top position among public banks in export sector in 2009. However the branch may
have scope to improve in a few areas. Such as-
01. Insufficient number of exporter and importer is not enough to achieve the goal
who operate through this bank. So JBL should offer more facilities to attract their
clients.
02.. It is a crying needto provide more quality services to their clients in order to
compete in the market.
CONCLUSION
Nearly edge is seen while inspecting the Foreign Exchange Department of Janata
Bank Ltd.s success. That means, this bank successfully finished last year with an
appreciable performance .JBL attained first place in the last year among the
government banks forits flawless completion of blending of solid quality and sincere
service.
For a greater achievement and attain more priority among the customers and clients
JBL can walk through the way under some precision direction:
o JBL should approach more attractive facilities with clear go ahead.
o To survive in the cut throat competition JBL must step into launching ATM
service as well as debit and credit card facilities.

conclusion
53
o Banking sector moves toward a very newer and wider type of voyage that results
in ending up with some critical marketing overkill. Now a dayspeople are looking
for a further opportunity to have some scheme in the same bank from where
they have collected the remittance.
o Total revival of investment of commodity in commercial sector requires a very
rapid and complete action to provide a more accurate and fast recycling of
invest/
o Less interesting export facilities should be proven improved.
o Finding out the newer destination of our export goods and ending up with being
adjusted with the newer sectors customs.
o With successful promotional programs JBL can attract more people from this
particular walk of life.
o The overall matter of foreign remittance should be driven under a complete
computerized system having a main server country wide to keep up a congenial
environment.

Reference
54
REFERENCE
1. JANATA BANK LTD WEBSITE
2. JANATA BANK ANNUAL REPORTS
3. EXPORT PROMOTION BUREAU
4. TRADEMAP.ORG FOR IMPORT EXPORT DATA
5. EXCHANGERATE.COM
a. (http://www.exchangerate.com/past_rates.html?letter=B
&continent=&cid=239-
USD&currency=20&last30=&date_from=09-30-
2007&date_to=01-04-2011&action=Generate+Chart)
6. SWIFT.com

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