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Chapter: 1

Introductory Aspects
1.1. Background of the study:
Internship program is the systematic gathering, recording and analyzing of data about the
subject that a student goes to team on the program.
The aim of this Internship program is to connect practical knowledge with theoretical
knowledge. Now the world is a competitive world. o everybody has to be e!pert in both
practical knowledge and theoretical knowledge.
"uring my work, I have faced various obstacles. #y the grace of $l %ighty $llah and by
the help of some related person, I have overcome those problems successfully.
1.2. Objectives of the Study:
The objective of the study is to gather practical knowledge regarding banking system and
its operations. Theoretical classes of %#$ provide us theories regarding different
subjects whereas practical orientation gives us the chance to view those systems and their
operations. %ore precisely we can identify the objectives of this report as follows'
To know about the general #anking activities of the sample banks.
To observe the working environment in commercial banks.
To know about the remittance of funds.
To apply theoretical knowledge in the practical filed.
To have e!posure to the functions of foreign e!change section.
To e!amine the rules and regulations of ()#* in e!ercising foreign e!change
To observe the various investment indicators of ()#*.
To evaluate the views of business community regarding the effectiveness of the
foreign e!change dealing by ()#*.
To know the organization of the sample banks.
To study the e!isting overall banker customer relationship.
To identify the problems, if any faced by the officials dealing in foreign
business and to e!amine their views to solve them.
3. Methodology
For the procedure of different banking operations, I had observed the
operations and orked ith the officers at the sa!e ti!e I had intervieed
the "nited #o!!ercia$ Bank %i!ited officia$s for getting !ore infor!ation.
For the ana$ysis part, data have been co$$ected fro! different state!ent
and the annua$ reports of the bank. Infor!ation fro! pri!ary sources has
been co$$ected &ebsite of sa!p$e bank. Secondary sources are fro!
journa$ and brochures of banks etc.
4. Scope of the Study:
Banking syste! occupies an i!portant p$ace in a 'ation(s econo!y. )
banking institution is indispensab$e in a !odern society. It p$ays a vita* ro$e
in the econo!ic deve$op!ent of a country and for!s the core of the !oney
!arket in an advanced country. In recent ti!es the banking sector over the
or$d has been undergoing a $ot of changes due to deregu$ation,
techno$ogica$ innovation, g$oba$i+ation etc. Bang$adesh banking sector is
$agging for behind in adopting these changes.
In !y report, the !ain areas of co!!ercia$ banking have been covered is
Foreign ,-change Section hich co!prises fo$$oing three depart!ents:
Foreign ,-change .epart!ent
Foreign /e!ittance Section
I!port Section and
,-port Section.
5. Limitation of the Study:
0here have been so!e $i!itations fro! hich these report suffers. 0he
$i!itations are brief$y pointed out be$o:
0i!e is the first $i!itation as the duration of the progra! as of
to and a ha$f !onth on$y.
)nother $i!itation of this report is Bank(s po$icy of not disc$osing
so!e data and infor!ation for obvious reason, hich cou$d be
very !uch usefu$.
0he data that see!s insufficient !ay be suffering fro! $ack of
re$iabi$ity to so!e e-tent.
Supp$y of !ore practica$ and conte!porary data is another
0he study as not done very successfu$$y due to ine-perience.
/ecent 1data is not avai$ab$e because of not ho$ding )23 ithin
4 years.
/rime #ank *imited 0/#*1 was established on 12
$pril, 133- with an
$uthorized )apital of Tk. 1444 %illion and /aid up )apital of Tk. 144 %illion 0raised to
Tk. &44 %illion in 13321 by a group of highly successful entrepreneurs from various
fields of economic activities such as shipping, oil, finance, garments, te!tiles and
insurance etc. It is a full licensed scheduled )ommercial #ank set up in the private sector
in pursuance of the policy of the 5overnment to liberalize #anking 6 7inancial services.
The )hairman of the #ank, %r. %d. Nader 8han is a renowned business elite of
)hittagong. 9e is also the )hairman of "rum 8ulshi 5irls 9igh chool, 7atikchari,
)hittagong and :ice;/resident of the 5overning #ody of )I"<= International chool
and also a member of the )I"<= Trust. 9e has also been elected as :ice;"istrict
5overnor of *ion "istrict +1- #, for the year 1333;&444.
The former 5overnment of the #angladesh #ank %r. *utfar =ahman arkar was
the first %anaging "irector of the #ank. The #ank is being managed by highly
professional people having wide e!perience in domestic and international #anking.
The present %anaging "irector %r. 8azi $bdul %azid has long e!perience in
domestic and international #anking. The #ank has made significant process within a very
short time due to its very competent #oard of "irectors, dynamic management and
introduction of various customer friendly deposit and loan products.
%anaging "irector 0%"1
"eputy %anaging "irector 0"%/1
enior <!ecutive :ice /resident 0<:/1
<!ecutive :ive /resident 0<:/1
enior :ice /resident 0:/1
:ice /resident 0:/1
enior $ssistant :ice /resident 0$:/1
$ssistant :ice /resident 0$:/1
7irst $ssistant :ice /resident 07$:/1
enior <!ecutive >fficer 0<>1
<!ecutive >fficer 0<>1
/rincipal >fficer 0/>1
enior >fficer 0>1
%anagement Trainee >fficer 0%T>1
?unior >fficer 0?>1
Nu()er o* e(p+oyees o* P"
The total number of employees of this #ank ,.4 07our hundred si!ty1 as on %ay
&444. These as';
,+$ E(p+oyee ,tatus No$ o* E(p+oyee
1. %anaging "irector 1
&. "eputy %anaging "irector 1
+. r. <!ecutive :ice;/resident 1
,. <!ecutive :ice;/resident 1
-. r. :ice /resident 1+
.. :ice /resident 1&
2. r. $sst. :ice /resident @
@. $sst. :ice /resident 1-
3. 7irst $sst. :ice /resident &.
14. enior <!ecutive >fficer +@
11. <!ecutive >fficer --
1&. /rincipal >fficer 1-
1+. enior >fficer ,@
1,. %anagement Trainee >fficer 142
1-. ?unior >fficer 14.
1.. "river 1+
Total ; ,.4
Nu()er o* ranches o* P"
Total Number of #ranches of /#* is &4 0Twenty1.
1$- AT A '"ANCE OF P" A, ON -.
/%NE0 1111
us2ness Reporter
/rime #ank *imited performed well in the first half despite the difficult economic
environment with an increase in operating /rofit by 14&A to Tk. 1+@.2@ %illion
compared to the same period last year. The #ank also made its mark in efficiently
managing its loan portfolio by keeping the )lassified *oans and $dvances at 1.3@A being
one of the lowest in the #anking ector of the country, says a press relea
The #oard of /rime #ank *imited takes the privilege to welcome you all to the
7ifth $nnual 5eneral %eeting and has the pleasure to present the 7ifth $nnual =eport of
the #ank along with the $nnual $ccount and $uditors =eport for the year 1333.
23 an4+adesh Econo(y-an O5er52e6
#angladesh is pursuing a prudent monetary and fiscal policy in order to achieve
higher economic growth as well as maintaining macro;economic stability. The country
has been largely successful in implementing the rehabilitation programs to make up the
colossal damage caused by the devastating flood of 133@ and achieved -.& percent 5"/
growth in 7B 1333 as against -.2 percent in the previous year. The inflation rate has come
down significantly to 2.&A at the end of November 1333 mainly due to bumper crop
production. The monetary and credit policy for 7B &444 has been formulated with the
objective of keeping foreign e!change reserves at a satisfactory level and rate of inflation
at a tolerable limit. $doption of measures like massive agricultural credit disbursement
and increased input supply have contributed a lot to bumper crop production in 7B 1333.
imilar measures have also been undertaken to maintain higher growth in agriculture in
current 7B &444.
/erformance of the Industrial ector, however, was not satisfactory during the
year. $fter growing by 3.-A in 1332;3@, industrial production fell to &.-A in 133@;33.
The total value of 5"/, however, increased to (C +.-4+ million compared to (C
+,4-3 million in the previous year increasing per )apita 5"/ to (C &@& compared to
(C &.@ in last year.

223 Money and an72n4
%onetary and credit policies in #angladesh were pursued with a view to
accelerate the pace of economic activities during 7B 1333. Total domestic )redit during
the year rose by 1+.1A compared to 1&..A in 133@;33, net credit to private sector
increased by 1+.@A compared to 1+A increase in 1332;3@. %oney supply growth was
@..A in 133@;33 compared to ,.@A in 1332;3@. "uring the year, #ank deposits increased
by 1,.&A to Tk. -3&+,4 million which was 11.+A in the preceding year.
Total e!port earnings during the year 133@;33 was (C -+&, million compared to
(C -12& million in 1332;3@ showing a growth of &.3A Total import payment for 133@;
33 was (C @41@ million which was ...A higher than that of the previous year. The
current account deficit increased to (C +3, million from (C &-+ million in the
preceding year due to increase in import payment during the year.
#angladesh #ank reduced #ank =ate 0the rate at which it lends to )ommercial
#anks1 to 2A from @A with effect from $ugust &3, 1333. The minimum )ash =eserve
=eDuirement 0)==1 of the scheduled banks to be maintained with #angladesh #ank has
been reduced from -A to ,A 9owever, tatutory *iDuidity =eDuirement 0*=1 remained
unchanged at &4A.
#angladesh #ank also placed severe restriction with regard to credit allocation to
the "irectors of /rivate #anks 0Incidentally since inception, the "irectors of /rime #ank
do not borrow from their own #ank as a policy decision decision of the #oard1.
2223 Pr2(e an7 "2(2ted
/rime #ank *imited witnessed a considerable improvement in its overall business
performance during the year 1333. The #ank achieved satisfactory progress in all areas of
its operation and earned an operating /rofit of Tk. +.4.-1 million showing a growth of
.+A over the previous year. The #ank, as a prudent measure, marked down the value of
investment in shares and securities to market price as on +1;1&;33 by complying with
International $ccounting tandard 0I$;+41
$fter making full provision, the net pre ta!;/rofit of the #ank for the year stood at
Tk. +1..22 million compared to Tk. 12.+3 million in 133@. The return on $ssets 0=>$1
was -.+4A well above the industry average.
253 Cap2ta+ Funds
The $uthorized and /aid up )apital of the #ank are Tk. 1444.44 million and Tk.
,44.44 million respectively. The #ank raised its paid up capital from Tk. &44.44 million
to Tk. ,44.44 million during the year through /ublic Issue of &,444,444 ordinary shares at
par value of Tk. 144.44. Eith the increase of /aid;up )apital to Tk. ,44.44 million, the
capital base of /rime #ank *imited has become one of the strongest. The total )apital
7unds of the #ank at the year end stood at Tk. 213.&+ million against Tk. &3+.24 million
in the previous year. The )apital $deDuacy =atio is 1-.1,A as on +1;1&;33, which is
well above the stipulated @A reDuired for #anks in #angladesh. The ratio of Tierl capital
is 1,.4.A.
53 #epos2ts
"eposits of the #ank grew by ,,A to Tk. 2..4.4& million as at +1st "ecember
1333 as against national average of 1,.&4A. The #ank introduced several deposit
schemes to encourage and mobilize savings. %ajor savings schemes include the
F )ontributory avings cheme
F %onthly #enefit "eposit cheme
F pecial "eposit cheme
F <ducation avings cheme
F +4 "ayGs Term 7"=
F /rime #ank %oney cheme
F /rime #ank Insured 7i!ed "eposit cheme
>ur various purpose;oriented deposit schemes have been appreciated by the
/ublic and have gained good popularity. $s on +1;1&;33, deposits under above schemes
stood at Tk. 144-.-2 million as against Tk. @1&.+2 million in the last year showing an
increase of &,A over the preceding year.
523 "oans and Ad5ances
*oans and $dvances of the #ank stood at Tk. -4&2.+2 million as on +1;1&;33
against Tk. +1&2.22 million last year. "uring the year under review, the #ank e!tended
loans and advances of Tk. 1@33..4 million to the private sector for domestic and
international trade as well as for project finance and working capital. "ue to liberal )redit
to <!port ector, the #ank was able to handle larger volume of 7oreign <!change
#usiness. The #ank also e!tended a number of project finance and industrial loans in
syndication with other #anks.
5223 "ead2n4 2n Consu(er an72n4
/rime #ank *imited is a leading #ank for consumers and small business with a
commanding presence in )onsumer )redit, 9ire /urchase and *ease 7inance. The
)onsumer )redit cheme of the #ank, which aims to help the fi!ed income group in
raising standard of living, has been widely appreciated. Total 14.1@ customers have
enjoyed )redit facility to the e!tent of Tk. ,@4.,1 million under the cheme. The rate of
recovery of loan under the scheme is 3.A. The #ank also recently introduced )redit )ard
both domestic and international as principal member of %aster )ard International.
52223 8ua+2ty o* R2s7 Assets
In order to maintain high Duality of risk assets, utmost efforts are made by the
#oard of "irectors and by the %anagement on an ongoing basis. $ )redit )ommittee at
#ankGs 9ead >ffice sits every day to monitor the Duality of loans. $s on +1;1&;33, the
#ankGs ratio of classified loans to total loans is only 1..+A as against 1.22A in the last
year which is one of the lowest in #angladesh. The #ank has made full provision against
classified loans in addition to making provision of 1A against unclassified loans.
/rime #ank *imited follows International $ccounting tandard 0I$;+41 in
assessing the value of its investment in shares at the year end.
293 Fore24n E9chan4e us2ness
In the year under review, 7oreign Trade >peration of the #ank played a pivotal
role in the overall business development of the #ank. Ee have established relationship
with as many as +4 new foreign correspondents abroad thereby raising the total number of
correspondents to &+4. "uring the year 1333, the #ank handled 7oreign <!change
transactions amounting to Tk. 12@--.,4 million which is an increase of .2A over the last
year. The #ank has also entered into remittance arrangements with several #anks and
<!change 9ouses and e!pects to handle increased volume of =emittance #usiness.
93 Treasury
/rime #ank *imited is one of the first local banks in #angladesh to integrate
treasury dealings of local %oney;%arket and 7oreign )urrency under one Treasury
umbrella. The #ank has handled significant volume of Treasury transactions during 1333.
/rime #ankGs "ealing =oom is connected with automated =euters Terminal facility thus
enabling the bank to provide forward H future facilities to its corporate clients at a very
competitive rate.
923 ,WIFT
/rime #ank *imited is one of the first few #angladeshi #anks who have become
member of EI7T 0ociety for Eorldwide Interbank 7inancial Telecommunication1 in
1333. EI7T is members owned co;operative, which provides a fast and accurate
communication network for financial transactions such as *etters of )redit, 7und transfer
etc. #y becoming a member of EI7T, the #ank has opened up possibilities for
uninterrupted connectivity with over -,244 user institutions in 1-4 countries around the
9223 Auto(at2on 2n an72n4 Operat2on
:a3 : In*or(at2on Techno+o4y 2n an72n4 Operat2on
/rime #ank *imited adopted automation in banking operation from the first day
of its operation. The main objective of this automation is to provide efficient and prompt
services to our valued clients. $t present all the branches of the #ank are computerized.
$t branch level, we are using server based multi;user software under (NII operating
system to provide best security of information.
/rime #ank *imited is providing comprehensive range of #anking ervices with
utmost care and efficiency to its customers. The customers can draw cash from their
accounts in just within a minute.
:)3 : On-+2ne ranch an72n4
The #ank has set up a Eide $rea Network 0E$N1 across the country to provide
>n;line branch banking facility to its valued clients. (nder the scheme, clients of one
branch shall be able to do banking transaction at any other branch of the #ank.
The #ank also hosted its own Eeb ite 0www.primebank.com1 to facilitate
dissemination of information about its banking services 6 facilities to outside world. The
#ank is also going to provide &, hour customer services by installing $utomated Teller
%achine 0$T%1 in the near future.
92223 Cred2t Card
/rime #ank *imited obtained /rincipal %embership of %aster;)ard International
in the month of %ay 1333. Eithin a period of . months, the #ank successfully launched
%aster )ard;)redit )ard which created a new dimension in its customer service and
consumer financing.
The special feature of the /rime #ank %aster )ard is that its bears the card
holderGs photo on the card, which is the first of its kind in #angladesh and adds security
against misuse. /rime #ank *imited issues , types of cards. These are 5old *ocal 6
International and ilver *ocal 6 International. *ocal cards can be used in #angladesh
9253 In5est(ent 2n ,ecur2t2es and Cap2ta+ Mar7et Operat2on
The year 1333 was again a difficult year as it was in 133@for the capital market.
$ll hare price Inde! in the year was persistently on the declining trend. (nder such a
situation, the %erchant #anking and investment division of the #ank had to carry out
operation in the area of capital market in a vary cautious manner during the year. The
"ivision concentrated its operation in the areas of underwriting of I/>s and advance
against hares.
It is worth mentioning that /rime #ank *imited follows International $ccounting
tandard 0I$;&- 6 +41 in valuing is investments in shares 6 securities at the year end.
The #ank has applied for a license to set up a Non;#ank 7inancial Institution with
a view to diversifying activities in )apital %arket operations. The approval of
#angladesh #ank is awaited.
953 Mana4e(ent and Hu(an Resources
$ well;educated, skilled and enterprising workforce with wide e!perience in
banking is a precondition for the continued growth and progress of any bank. >ur aim is
to recruit and retain a competent workforce. Ee recruit e!perienced #ankers as well as
fresh (niversity 5raduates whom we train through our own Training Institute. $s on +1st
"ecember 1333, our human resources strength was ,-&.
9523 Pr2(e an7 Tra2n2n4 Inst2tute
/rime #ank Training Institute was set up in ?uly &&, 133@ with the aim to build up
a strong and skilled workforce. The Institute is located at 13, "ilkusha )H$, "haka.
"uring the year, the Institute organized , 0four1 training courses on basic foundation of
#anking, International Trade 7inance and 7oreign <!change and *ending =isk $nalysis
which were participated by 3. participants. The Institute also conducted 2 0seven1
workshops where a total of &,- participants attended. $part from the enior <!ecutives
of the #ank, eminent educationists and professionals were invited as guest speakers.
95223 Is+a(2c an72n4 raches
/rime #ank *imited is operation branches on both conventional interest based
banking and Islamic hariah /rinciple based banking. The Islamic #anking operations are
completely separate from the conventional #anking.
Ee have established a hariah #oard to advise and provide guidance on Islamic
#anking operations. The following Islamic scholars having vast knowledge and ideas in
Islamic hariah relating to banking operations sit on the #oard'
Name tatus in the hariah )ouncil
?anab %oulana >baidul 9aDue, 8hatib,
#aitul %ukarram National %osDue )hairman
?anab hah $bdul 9annan, 7ormer )hairman
National #oard of =evenue and 7ormer ecretary,
%inistry of 7inance and "y. 5overnor, #angladesh #ank. :ice )hairman
?nab %oulana %ohammad alahuddin
/rincipal, $lia %adrasa, "haka %ember
?nab %oulana $bul 8alam $zad
ecretary 5eneral, #angladesh %asjid %ission. %ember
?anab "r. %. hamsher $li, /rofessor, "haka (niversity %ember
?anab $..%. 7akhrul $hsan, "irector 5eneral,
Islamic #ank Training and =esearch $cademy
and 7ormer "y. 5overnor, #angladesh #ank. %ember

"r. =.$. 5hani, a member of the #oard of "irectors and %r. 8azi $bdul %azid,
%anaging "irector of the #ank are also members of the hariah #oard.
$ separate set of accounts is being maintained by the #ank for Islamic #anking
#ranches which is completely different from conventional banking branches. The
performance of our Islamic #anking #ranches during 1333 is given below'
1. "eposit Tk. 114-.-. %illion
&. Investment Tk. 121.@ %illion
+. /rofit Tk. +1.3+ %illion
,. 7oreign <!change #usiness Tk. 14.@.14 %illion
-. No. of <mployees &&
#alance heet and /rofit 6 *oss tatement of our Islamic #anking #ranches as
on +1;1&;1333 are given below ';
a+ance ,heet
Is+a(2c an72n4 ranches as at -1-1&-1111
Assets 1111 111;
)ash and #ank #alance
7i!ed $ssets
>ther $ssets
#ills for )ollection as per )ontra
$cceptance, <ndorsements and other
>bligations as per )ontra

"2a)2+2t2es 1111 111;
#ills payable
>ther *iabilities
#ills for )ollection as per )ontra
$cceptance, <ndorsements and other
>bligations as per )ontra
/rofit for the year 1333 +1,3+,,213 1+,&34,121
Pro*2t and "oss Account
Is+a(2c an72n4 ranches For the year ended on -1-1&-1111

/rofit from Investments
)ommission and <!change
>ther Income
Tota+ Inco(e

/rofit on "eposits
alaries and $llowances
=ent, =ates and Insurance
/ostage, Telegrams and Telephone
"epreciation and =epairs
tationery and $dvertisement
>ther <!penditures
Net /rofit during the year
"uring the year under review, our Islamic #anking #ranches paid the following
rates of /rofit its the depositors which are highly competitive '
l. No. Types of "eposits /rofit rate for the year 1333
1. %udaraba aving "eposit @.44A
&. %udaraba T" -.-4A
+. %udaraba Term "epost ; + months 3.44A
,. %udaraba Term "epost ; . months 3.&-A
-. %udaraba Term "epost ; 1& months 3.-4A
.. %udaraba Term "epost ; &, months 14.44A
2. %udaraba Term "epost ; +. months 14.-4A
@. %onthly #enefit "eposit cheme 14.34A
3. %onthly )ontributory avings cheme 11.-4A
14. <ducation avings cheme 1&.-4A
952223 ranch E9pans2on
The number of branches of the #ank stood at &4 0Twenty1 as on +1st "ecember
1333. 1@ of them have been licensed by #angladesh #ank as $uthorized "ealers in
7oreign <!change and they can transact all types of 7oreign <!change #usiness. "uring
the year under review, & 0Two1 branches were opened at #angshal, "haka and at ?essore.
The #ank has plan to open 14 more branches during the year &444 at different important
and commercial places all over the country.
9293 #252dend
The #oard of "irectors of the #ank has been pleased to recommend +4A cash
dividend for the year 1333 to the shareholders of the #ank subject to approval of
#angladesh #ank.
The members of the #oard of "irectors of /rime #ank *imited take this
opportunity to offer their sincere thanks to the 5overnment of the /eopleGs =epublic of
#angladesh, #angladesh #ank and ecurity <!change )ommission for their valuable
guidance and co;operation e!tended to the #ank from time to time. The #oard also places
on record its appreciation for e!cellent services rendered by the employees of the #ank.
7inally, the #oard of "irectors e!presses its gratitude to the valued clients, patrons, and
well wishes of the #ank for their continued support and co;operation.
7oreign <!change is a process which is converted one national currency into
another and transferred money from one country to another countries.
$ccording to %r. 9. <. <vitt. 7oreign <!change is that section of economic
science which deals with the means and method by which right to wealth in one countryGs
currency are converted into rights to wealth in terms of another countryGs currency. It
involved the investigation of the method by which the currency of one country is
e!changed for that of another, the causes which rented such e!change necessary the forms
which e!change may take and the ratio or eDuivalent values at which such e!changes are
7oreign e!change is the rate of e!change in the both countryGs currency.
International trade refers to trade between the residents of two different countries.
<ach country functions as a sovereign tate with its set of regulations and currency. The
difference in the national of the e!porter and the importer presents certain peculiar
problems in the conduct of international trade and settlement of the transactions arising
therefrom. Important among such problems are '
0a1 "ifferent countries have different monetary unitsJ
0b1 =estrictions imposed by countries on import and e!port of goodsJ
0c1 =estrictions imposed by nations on payment from and into their countriesJ
0d1 "ifferences in legal practices in different countries.
7oreign e!change means foreign currency and includes ';
0i1 $ll deposits, credits and balances payable in any foreign currency and any drafts,
travelers cheDues, letters of credit and bills of e!change, e!pressed or drawn in
Indian currency but payable in any foreign currencyJ
0ii1 $ny instrument payable, at the option of the drawee or holder thereof or any other
party thereto. <ither in Indian currency or in foreign currency or partly in one and
partly in the other. Thus, foreign e!change includes foreign currency, balances
kept abroad and instruments payable in foreign currency.
The following principles are involved in 7oreign e!change '
i1 The entire system
ii1 The media used
iii1 The monetary unit.
The #ank actions as a media for the system of foreign e!change policy. 7or
this reason, the employee who is related of the bank to foreign e!change, specially
foreign business should have knowledge of these following functions ';
i1 =ate of e!change.
ii1 9ow the rate of e!change works.
iii1 7orward and spot rate.
iv1 %ethods of Duoting e!change rate.
v1 /remium and discount.
vi1 =isk of e!change rate.
vii1 )auses of e!change rate.
viii1 <!change control.
i!1 )onvertibility.
!1 <!change position.
!i1 Intervention money.
!ii1 7oreign e!change transaction.
!iii1 7oreign e!change trading.
!iv1 <!port and import letter of credit.
!v1 Non;commercial letter of trade.
!vi1 7inancing of foreign trade.
!vii1 Nature and function of foreign e!change market.
!viii1 =ules and =egulation used in foreign trade.
!i!1 <!change $rithmetic.
>n behalf of the importer if the bank undertakes to make payment to the foreign
bank is known as documentary credit or letter of credit.
$ letter of credit is an instrument issued by a bank to a customer placing at the
letters disposal such agreed sums in foreign currency as stipulated. $n importer is a
country reDuest his bank to open a credit in foreign currency in favour of his e!porter at a
bank in the letters country. The letter of credit is issued against payment of amount by the
importer or against satisfactory security. The *H) authorizes the e!porter to draw a draft
under is terms and sell to a specified bank in his country. 9e has to hand over to the bank,
will the #ill of e!change, shipping documents and such other papers as may be agree
upon between the e!porter and the importer. The e!porter is assured of his payment
because of the credit while the importer is protected because documents in respect of
e!port of goods have to be delivered by the e!porter to the paying bank before the
payment is made.
+.& 7rom of letter of credit
$ letter of credit 0*H)1 may be two forms. These as below '
i1 =evocable letter of credit.
ii1 Irrevocable letter of credit.
0i1 Re5oca)+e "AC : If any letter of credit can be amendment or change of any clause
or canceled by consent of the e!porter and importer is known as revocable letter
of credit.
$ revocable letter of credit can be amended or canceled by the issuing bank at any
time without prior notice to the beneficiary. It does not constitute a legally binding
undertaking by the bank to make payment. =evocation is possible only nntil the
documents have been honoured by the issuing bank or its correspondent. Thus a
revocable credit does not usually provide adeDuate security for the beneficiary.
0ii1 Irrevocable *H) ' If any letter of credit can not be changed or amendment without
the consent of the importer and e!porter is known as irrevocable letter of credit.
$n irrevocable credit constitutions a firm undertaking by the issuing bank to make
payment. It therefore, gives the beneficiary a high degree of assurance that he will
paid to his goods or services provide he complies with terms of the credit.
*etter of )redit are classified into various types according to the method of settlement
employed. $ll credits must clearly indicate in major categories.
i1 ight payment credit.
ii1 "eferred payment credit.
iii1 $cceptance credit.
iv1 Negotiation credit.
v1 =ed close credit.
vi1 =evolving credit.
vii1 tand by credit.
viii1 Transferable credit.
0i1 ,24ht pay(ent cred2t : The most commonly used credits are sight payment
credits. These provide for payment to be made to the beneficiary immodestly
after presentation of the stipulated documents on the condition that the terms of
the credit have been complied with. The banks are allowed reasonable time to
e!amine the documents.
0ii1 #e*erred pay(ent cred2t : (nder a deferred payment credit the beneficiary does
not receive payment when his presents the documents but at a later date specified
in the credit. >n presenting the reDuired documents, he received the authorized
banks written undertaking to make payment of maturity. In this way the importer
gains possession of the documents before being debited for the amount involved.
In terms of its economic effect a deterred payment credit is eDuivalent to an
acceptance credit, e!cept that there is no bill of e!change and therefore no
possibility of obtaining money immediately through a descant transaction. In
certain circumstances, how ever, the banks payment undertaking can be used as
collateral for an advance, though such as advance will normally only be available
form the issuing or confirming bank. $ discountable bill offers wider scope.
0iii1 Acceptance Cred2t : Eith an acceptance credit payment is made in the form of a
tern bill of e!change drawn on the buyer, the issuing bank or the pendent bank.
>nce he has fulfilled the credit reDuirements, the beneficiary can demand that the
bill of e!change be accepted and returned to him. Thus the accepted bill takes the
place of a cash payment.
The beneficiary can present the we accented bill to his own bank for payment at
maturity or for discounting, depending on whether or not he wants cash
immediately. 7or simplicities sake the beneficiary usually gives on instruction that
the accepted bill should be left in the safekeeping of one of the banks involved
until it matures. #ill of e!change drawn under acceptances credit usually have a
term of .4;1@4 days.
The purpose of an acceptance is to give the importer time to make payment. It he
sells the goods before payments fall due, he can use the precedes to meet the bill
of <!change in this way, he does not have to borrow money to finance the
0vi1 Ne4ot2at2on cred2t : Negotiation means the purchase and sale of bill of
e!change or other marketable instruments. $ negotiation credit is a commercial
letter of credit opened by the issuing bank in the currency of its own country and
addressed directly to the beneficiary. The letter is usually delivered to the
addressee by a corespondent bank. This credit is sometimes also as 9and on
The letter of credit empowers the beneficiary to draw a bill of e!change on the
using bank, on any other named drawer or on the applicant for the credit. The
beneficiary can them present this bill to a bank for negotiation, together with the
original letter of credit and the documents stipulated therein.
/ayment of the bill of e!change is guaranteed by the issuing bank on the condition
that the documents presented by the beneficiary are in order. The most common
form of negotiation credit permits negotiation by any bank. In rare case the choice
is limited to specified banks.
0iv1 Red c+ause cred2t : In the case of a red clauses credit, the seller can obtain an
advance for an agreed amount from the correspondent bank, goods that are going
to be delivered under the documentary credit. >n receiving the advances, the
beneficiary must give a receipt and provide a written undertaking to present the
reDuired documents before the credit e!pires.
The advance is paid by the correspondent bank, but it is the using bank that
assumes liability. If the sellers does not present the reDuired documents in time
and fails to refund the advance, the correspondent bank debits the issuing bank
with the amount of the advance plus interest. The issuing bank, in turn, has
reveres to the applicant, who therefore bears the risk for the advance and the
interest accursed.
The clause permitting the correspondent bank to make an advance used to be
written on red in home the name red clause credit.

0v1 Re5o+52n4 Cred2t : =evolving credit can be used when goods are to be
delivered in installment at specified intervals. The amount available at any one
time is eDuivalent to the value of one partial delivery.
$ revolving credit can be cumulative or non;cumulative means that amount from
unused or incompletely used portions can be carried forward to subseDuent period.
If a credit is non;cumulative, portions not used in the prescribing period case to be
0vi1 ,tand )y cred2t : tand by credit are encountered principally in the (. (nder
the laws of most ( states, banks are prohibited from issuing regular Duarantines,
so credits are used instead. In <urope, too the use of this type of credit is
increasing by virtue of their documentary credit, stand;by credit are governed by
the ()/. 9owever, their function is that of a grantee.
The types of payment and performance that can be guaranteed by stand;by credits
include the following '
- /ayment of thorium bill of e!change
- =epayment of bank advance
- /ayment of goods delivered.
- "elivery of goods in accordance wets contract and
- <!ecution of construction contracts, supply and install contracts.
In order to enforce payment by the bank, the beneficiary merely presents a
declaration stating that the applicant for the credit has failed to meet his
contractual obligation. This declaration may have to be accompanied by other
0vii1 Trans*era)+e cred2t : Transferable credit are particularly well adapted to the
reDuirements of international trade. $ trader who receives payment from a buyer
in the form of a transferable documentary credit can use that credit to pay his own
supplier. This enables him to carry out the transaction with only a limited and lay
of his own funds.
The buyer supplies for an irrecoverable credit issued in the traders favour. The
issuing bank must e!pressly designate the credit as transferable.
$s soon as the trader receives the confirmation of credit he can reDuest the bank to
transfer the credit to his supplier. The bank is under no obligation to effect the
transfer e!cept in so far as it has e!pressly consented to do so.
The costs of the transfer are usually charged to the trader and the transferring bank
is entitled to delete them in advance.
$ letter of credit is issued by a bank at the reDuest of an importer in
favour of an e!porter from whom he has contracted to purchases some commodity
or commodities. The importer, the e!porter and the issuing bank are parties to the
letter of credit. There are however, one or more than one banks that are involved
in various capacities and at various stages to play an important role in the total
operation of the credit.
i1 The opening #ank.
ii1 The $dvising #ank.
iii1 The #uyer and the #eneficiary.
iv1 The paying #ank.
v1 The negotiating #ank.
vi1 The confirming #ank.
i1 The open2n4 an7 : The opening #ank is one that issues the letter of credit at
the reDuest of the buyer. #y issuing a letter of credit it takes upon itself the
liability to pay the bills drawn under the credit. If the drafts are negotiated by the
another bank, the opening #ank reimburses that #ank. $s soon as the opening
#ank, issuing a letter of credit 0*H)1, it e!press its undertaking to pay the bill or
bills as and when they are drawn by the beneficiary under the credit. Ehen the
bills are presented to or when antic is received that bills have been presented to a
paying or negotiating #anks its liability matures.
ii1 The Ad52s2n4 an7 : The letter of credit is often transmitted to the beneficiary
through a bank in the latters country. The bank may be a branch or a
correspondent of the opening bank. The credit is some times advised to this bank
by cable and is then transmitted by it to the beneficiary on its own special form.
>n the other occasions, the letter is sent to the bank by mail or tele! and
forwarded by it to the e!porter. The bank providing this services is known as the
advising bank. The advising bank undertakes the responsibility of prompt advice
of credit to the beneficiary and has to be careful in communicating all its details.
iii1 The uyer and the ene*2c2ary : The importer at whose reDuest a letter of
credit is issued is known as the buyer. >n the strength of the contract that he
makes with the e!porter for the purchase of some goods that the letter of credit is
opened by the opening bank.
The e!porter in whose favour the credit is opened and to whom the letter of credit
is addressed is known as the beneficiary. $s the seller of goods he is entitled to
receive payment which he does by drawing bills under the letter of credit 0*H)1.
$s soon as he has shipped the goods and has collected the reDuired documents, he
draws a set of papers and presents it with the documents to the opening bank or
some other bank mentioned in the *H).
iv1 The pay2n4 an7 : The paying bank only pays the drafts drawn under the credit
but under takes no opening bank, by debating the latters accounts with it if there is
such an account or by any other measured up, between the two bankers. $s soon
as the beneficiary has received payment for the draft, he is out of the picture and
the rest of the operation concerns only the paying bank and the opening bank.
v1 The Ne4ot2at2n4 )an7 : The negotiating bank has to be careful in scrutinize
that the drafts and the documents attached there to are in conformity with the
condition laid down in the *H). $ny discrepancy may result in refused on the part
of the opening bank to honour the instruments is such an eventuality the
negotiating bank has to look back to the beneficiary for refund of the amounts
paid to him.
vi1 The Con*2r(2n4 an7 : ometimes an e!porter stipulates that a *H) issued in
his favour be confirm by a bank in his own country. The opening this country to
add its confirming to the credit the bank confirming the credit is known as the
confirming bank and the credit is known as confirmed credit.
#anks normally issued letter of credit 0*H)1 on forms which clearly indicate the
banks name and e!tent of the banks obligation under the credit. The contents of the lHc of
different #anks may be different .In general lHc contain the follwing information ';
i1 Na(e o* the )uyer: who is also known as the accounted since it is for his
account that the credit has been opened.
ii1 Na(e o* the se++er: Eho is also known as the beneficiary of the credit.
iii1 Mo(ent o* the cred2t: Ehich should be the value of the merchandise plus any
shipping charges intent to be paid under the creditK
iv1 Trade ter(s : uch as 7.>.# and )I7
v1 Tenor of the "raft which is normally dependent upon the reDuirements of the
vi1 E9p2rat2on date: Ehich is specified the latest date documents may be
presented. In this manner or by including additionally a latest shipping date, the
buyer may e!ercise control over the time of shipment.
vii1 #ocu(ents reCu2red: Ehich will normally include commercial invoice
consular or customers invoice, insurance policies as certificates, if the source is to
be effected by the beneficiary and original bills of lading.
viii1 'enera+ descr2pt2on o* the (erchand2se: Ehich briefly and in a general
manner duly describes the merchandise covered by a letter of credit.
The importer after receiving the proforma invoice from the e!porter, by applying
for the issue of a documentary credit, the importer reDuest his bank to make a promise of
payment to the supplier. >bviously, the bank will only agree to this reDuest if it can rely
on reimbursement by the applicant. $s a rule accepted as the sole security for the credit
particularly if they are not the short of commodity that can be traded on an organized
market, such an arrangement would involve the bank in e!cessive risk outside its
specialist field. The applicant must therefore have adeDuate funds in the bank account or a
credit line sufficient to cover the reDuired amount.
#anks deal in documents and not in goods. >nce the bank has issued the credits its
obligation to pay is conditional on the presentation of the stipulated documents with in the
prescribed time limit. The applicant cannot prevent a bank from honouring the documents
on the grounds that the beneficiary has not delivered goods on redder reissues as
The 2(porter su)(2t the *o++o62n4 docu(ents )e*ore open2n4 o* the "AC :
a. Ta! Identification Number 0TIN1
b. :alid Trade *icense.
c. Import =egistration )ertificate 0I=)1
The an7 62++ supp+y the *o++o62n4 docu(ents )e*ore open2n4 o* the "AC :
a. *)$ form.
b. $pplication and $greement form.
c. I%/ form
d. Necessary charge documents for documentation.
The above documents H papers must be completed duly signed and filled in by the
party according to the instruction of the banker.
"ocumentary letter of credit is such kinds of commercial letter which a bank issue
on behalf of foreign seller 0e!porter1 according to the direction of the 0importers1
purchasers. The documents shown under are known as e!port documents form the
importerGs side. These are ';
0i1 2++ o* e9chan4e : The bill of e!change is that particular instrument through
which payment is effected in trade deals internal and international. The payment
for the goods is received by the seller through the medium of a bill of e!change
drawn on the buyer for the amount depending on the contract. It is a negotiable
instrument. There are five main parties involved in a bill of e!change. They are ';
0a1 "rawer
0b1 "rawee
0c1 /ayee
0d1 <ndorser
0e1 <ndorsee
0ii1 2++ o* +ad2n4 : $ bill lading is a document of title to goods entitling the holder
to receive the goods as beneficiary or endorsee and it is with the help of this
document on receipt from the e!porter that the importer takes possession of the
goods from the carrying vessel at the port of destination.
0iii1 A2r6ay )2++ A Ra2+6ay rece2pt : Ehen goods to be transported are small in
bulk or reDuiring speedy delivery or those are perishable in nature on the deal is in
between the neighboring countries then mode of transports other than shipping
may be resorted to far the carriage of the goods $irways bill H =ailway receipt
take place of #ill of lading depending on the nature of the carrier.
0iv1 Co((erc2a+ 2n5o2ce : It is the sellerGs bill for the merchandise. It contains a
description of goods, the price per unit at a particular location, total value of the
goods, packing specifications, terms of sale, letter of credit, bill of lading number
etc. There is no standard form far a commercial invoice. <ach e!porter designs his
own commercial invoice form. The invoice is made out by the seller under his
signature in the name of the buyer and must be submitted in a set of at least +
copies. Its main purpose is to check whether the appropriate goods have been
shipped and also that their unit price, total value, marking on the package etc. are
consistent with those given in other documents.
0v1 Insurance po+2cy : In the international trade insurance policy is a must to cover
the risk of loss on consignments while they are on seas, roads, airways. The
insurance is the responsibility of the buyers 0consignee1 under 7$, 7># and
)67 contracts and of the seller 0consignor1 under )I7 contract. The policy must
be of the type as specified in the relative contract H credit. The policy would be for
the value of )I7 price plus 14 0ten1 percent to cover the e!penses and that is
reDuired to be obtained in the same currency as that of the credit and dated not
later than the date of shipment with claimsL being payable at the destination. It
must be properly stamped. *ike a bill lading it must be negotiable and be endorsed
where it is payable to order.
0vi1 Cert2*2cate o* or242n : This is a certificate issued by a recognized authority in
e!porting country certifying the country of origin of the goods. It is usually by the
)hambers of commerce. ome times, it is certified by local consul or Trade
=epresentative of the importing country as per terms of the credit.
0vii1 Pac72n4 +2st : The e!porter must prepare an accurate packing list showing item
by item, the contents of the consignment to enable the receiver of the shipment to
check the contents of the goods, number and marks of the package, Duality, per
package net weight, gross weight, measurement etc.
0viii1 We24ht(ent and Measure(ent : Issued by recognized authority 0like
chambers of commerce and industry1 in e!porting country certifying correct
weightment and measurement of the goods e!ported.
0i!1 2++ o* entry: $ bill of entry is a document which contain the particulars of the
imported goods as well as the amount of customs duty payable.
The e9porter su)(2t the *o++o62n4 papersAdocu(ents to the Ne4ot2at2n4 )an7 :
i1 #ill of e!change H "raft.
ii1 #ill of lading.
iii1 $irway bill H =ailway receipt.
iv1 )ommercial invoice.
v1 Insurance policy.
vi1 )ertificate of origin.
vii1 /acking list.
viii1 Eeightment 6 measurement list.
i!1 >ther etc.
The negotiating bank after received the above documents H papers then this bank
scrutiny the documents. The negotiating bank sends the original shipping documents to
the *H) opening bank and keeping the second copy with the negotiating bank.
Pay(ent A4a2nst #ocu(ents :PA#3
#anks deal in documents and not in goods. If the shipping document against the
*H) is in order then the *H) opening bank must have to payment to the foreign bank
within + days or 2& hours according as (niform )ustoms and /ractice for "ocumentary
)redit 0()/")1 -44 of revision of I)).
If the shipping documents have any discrepancy, then the *H) opening bank
informed to the negotiating bank within 2 days. >therwise, the shipping documents have
not discrepancy. If the importer have not adeDuate founds in the bank account then the
bank payment to the foreign bank against the shipping documents.
"raft $mount Tk. .............................
*ess' %argin Tk. .............................
Net $mount Tk. ...............................
$dd' Interest Tk. ...............................
Total /$" $mount Tk. ................................
Today /#* is one of the leading and most successful #anking enterprises in the
country. If pay a great role in the economy of the country. #y e!port;import business the
bank play a great role to the economy of #angladesh. /#* is one of the greatest bank in
e!port;import business.
7oreign trade plays a vital role in the economic advancement process of a nation.
o the trend of countryGs foreign trade, i.e. import 6 e!port is of a great concern to the
government of a country. 7luctuation in the parameters of foreign trade immediately
brings about some impact on the total economy. $s such the nature, trend and the volume
of foreign trade are reDuired to keep peace with the national economic needs and
objective. There may be some areas where emphasis is to be given while there may be
others which deserve restrictions or discouragement. %oreover the items of import 6
e!port value and volume of the same, the corresponding time period, sources of fund far
payment and receipt, all these factors are to be considered very carefully for making
necessary adjustment to match with the national economic policies as well as achieve
balanced economic growth through the inter policy and inter policy co;ordination.
International trade policy relates to commercial policy which has two main
components of Import policy relates to commercial policy which has two main
components of Import policy and <!port policy. Eith a view to achieving favorable
balance of payment position as well as to encouraging or well to encouraging or well
regulated and need based foreign trade of the country, the government formulates the
national commercial policy i.e. import and e!port policy for a certain period considering
all the favorable 6 unfavorable aspects of the nationGs previous trade performance as well
as the future reDuirement and prospects.
$s the policy matter and the operational of import 6 e!port trade are Duite
different, two separate policies for import 6 e!port trade are formulated by the
government. Import policy refers to government policies account for a particular fiscal
period envisaging the allocation of fund available from various sources for import of
certain Duantity of certain goods. The main purpose of the policy is to conserve scare
foreign e!change 6 to ensure its utilization for the import of goods and services which
have national priority. The selected persons on institutions those who have got valid
Import =egistration )ertificate 0I=)1 form the )hief )ontroller of Import and <!port
0))I 6 <1 can import and they are known as importers.
These importers can import goods as entitled in each year as per import policy by
opening letter of credit 0*H)1 through bank i.e. $uthorized "ealer 0$."1. $uthorized
"ealer means the branches of commercial banks, those who are authorized H licensed by
the #angladesh #ank to deal in foreign <!change. *etter of )redit may be defined as the
letter as the letter of undertaking or letter of guarantee issued by the *H) opening bank on
behalf of the importer submits all the documents as mentioned in the *H) submits all the
documents as mentioned in the *H) within the time schedule to his bank i.e. e!porters
#efore opening *H) in favor of the e!porter the entitlement of the importer 0total
amount in taka he can import as per import policy1 to be registered with #angladesh
#ank. 7or this purpose the importer is to apply through *H). $uthorization form 0*) $
form1. This is a set in Duintuplicate and the authorized dealer will issue *)$ form to the
individual importer at their reDuest. $fter filled up and signed up the appropriate column
of the *)$ from, the importer will submit it to $uthorized "ealer who interns forward
the same to #angladesh #ank for registration where fund is purchased from #angladesh
#ank. $fter registration #angladesh #ank forward the 1st and &nd copy of *)$ form to
the $uthorized "ealer, +rd and ,th copy to ))I 6 < and keep the -th copy as their office
copy. 1st copy of *)$ is known as <!change )ontrol copy against which $uthorized
"ealer can open *H) at the reDuest of the importer. &nd )opy is known as custom purpose
copy which will be handed over to the importer who will clear the goods from the port on
its arrival through this custom purpose copy of *)$ along with other shipping
Now the importer will come to his bank with a reDuest to open an *H) along with
the following documents H papers ';
11 *H) application and agreement 7orm 0#ankGs prescribed application form1 with
adhesive stamp of Tk. 1-4 07le!ible1 M7rom ?une +rd 133@N
&1 Indent H /roforma Invoice H )ontract ; + copies.
+1 Insurance cover note with premium paid receipt.
,1 I%/ 7rom one set duly signed by the importer.
-1 $ny other documents if necessary.
$uthorized "ealer will scrutinize the documents and open the *H) in favor of the
e!porter by converting the #angladesh Taka into foreign currency at the e!isting #.)
selling rate of e!change. )are must be taken so that the limit of #angladesh Taka is not
e!ceeded in any way. The foreign currency value of the *H) must correspond the
eDuivalent amount of #angladesh Taka if *)$ registered with #angladesh #ank.
The $uthorized >fficial of the $uthorized "ealer will check the *H) very carefully
and signed the same jointly and forward the 1st and &nd copy to their foreign
correspondent situated at the nearest place of the e!porter. Thus #ank is known as
$dvising #ank. >n receipt of the *H) the $dvising #ank after verification of the
duplicate copy at their end.
>n getting the *H) the e!porter prepares the goods and ship the same as per
instruction of the *H) and obtain a #ill or *ading from the shipping $uthority. The
e!porter will prepare bill of e!change, Invoice and other documents as specified in the
*H) and submits the same along with the original copy *H) to his bank within the time
mentioned in the *H). The #ank with whom the e!porter submits the documents is known
as Negotiating #ank as this negotiates the document i.e. makes payment to the e!porters.
The negotiating bank will scrutinize the documents with terms and conditions of the
*H) very carefully. If every thing is in order the bank will make payment of the amount of
*H) to e!porter in their local currency by debiting to their own account. ubseDuently the
negotiating bank will claim the *H) with whom the 9ead >ffice of *H) opening bank
maintained foreign currency amount.
This is known as =eimbursing #ank. =eimbursing #ank will make payment to the
negotiating bank by debit to *H) opening #ankGs 9ead >ffice $H). imultaneously the
negotiating bank will forward all the documents submitted by the e!porter to the *H)
opening bank as per instruction of the *H). The date of forwarding letter of negotiating
bank should be date of negotiation of documents.
>n receipt of the shipping documents from the negotiating bank, the *H) opening
bank will carefully scrutinize the documents with terms and conditions of the relative
*H). If there is no discrepancy, the documents will be lodged. *odgment of documents
means the entry of the particulars of the documents in the =egister and preparation of
vouchers by converting the foreign currency amount into #angladesh Taka as the
e!change rate prevailing on that date. This amount is due to the importer. The importer
will be asked to take delivery documents by making payment of the bill amount e!cluding
the margin deposited at the time of opening *H). /ayment of bill amount and to take
delivery of documents by the importers is known as =etirement of Import #ills.
$fter taking delivery of documents from the *H) opening bank, the importer will clear
the goods which has already been arrived or due to arrive from the customs authority on
submission of these documents along with the custom purpose copy of *)$ 7rom.

*H) >pening
#ank 0/rime
*H) $dvising
Negotiating #ank
hipments of
ea /ort
:%N#ER CA,H "AC3
The documentary letter of credit 0*H)1 constitutes of the important methods of
financing trade. #ecause of the phenomenal growth in world trade and commodity wise
diversification of trade its importance has significantly increased.
>n receipt of the documents from the negotiating #ank, the *H) opening bank will
make entry the particulars of the documents into Inward 7oreign #ill =egister and prepare
the voucher by converting the foreign currency into #angladesh Taka. This stage is
known as lodgment of import bills.
The full sets of documents which are submitted by the e!porter to his bank as per terms
and conditions of the *H) is known as shipping documents.
The *H) opening bank may receive these shipping documents from his foreign
correspondent 0#ank1 in two ways.
i1 "ocuments on collections basis.
ii1 Negotiated "ocuments.
23 #ocu(ents on co++ect2on as2s :-
The shipping documents which are not negotiable by the e!porterGs bank due to
some discrepancies will be sent to *H) opening bank on collection basis. The collection
bank 0e!porterGs bank1 will mention the discrepancies on their forwarding schedule.
>n receiving the documents the *H) opening bank will further scrutinize the
documents with the *H) and inform the importer regarding discrepancies found in the
documents. If these are acceptable to the importer and or permissible with the e!isting
e!change control =egulation, the documents will be lodged and *H) opening bank will
send the payment instruction to the collecting bank.
223 Ne4ot2ated #ocu(ents
The documents which has already been negotiated i.e. the e!porters bank 0this
bank is known as negotiating bank1 has made payment to the e!porter against the
documents submitted by him may be termed as negotiated documents. 5enerally these
documents are free from discrepancies. Though these documents are supposed to be free
from any discrepancy, the *H) opening bank must scrutinize and confirm that there is no
discrepancy in the documents.
Incase of documents which has no discrepancy and documents with minor
discrepancy 0if accepted by the importer1 are to be lodged, where the major discrepancy is
found, it is the duty of the *H) opening banks to send a cable H Tele! to the negotiating
bank with instruction to credit the amount to the *H) opening banks $H) which was paid
to the e!porter, because the documents are not accepted and also to seek instruction
regarding disposal of the documents. The particular of these documents to be entered are
separate column or separate Inward 7oreign #ill =egister under the head 7oreign #ill
under =eserve.
,.& /=>)<"(=< >7 *>"5%<NT
$fter securitization, if it is fund in order the officer concerned will brand a rubber stamp
O)hecked and 7ound )orrectO which will be followed by his initial.
$mount in foreign currency to be converted into #angladesh Taka with the
e!change rate 0#.) selling1 prevailing on the date of lodgment.
/articulars of documents to be entered in the OInward 7oreign #ills =egisterO
Preparat2on o* Vouchers: The following vouchers are to be prepared';
a1 *odgment voucher '
"r. /$" H "raft amount P Negotiation commission 0if any1
)r. 9.>, I." H 0=eimbursing #ank1 $H)
#1 *iability voucher to be reversed which was originated at the time of opening *H)
"r. #arkerQs liability on *H) 0)ash1
)r. )ustomerQs liability on *H) 0)ash1
>n receipt of the copy of lodgment voucher from the bank, the importer will
deposit the reDuired amount and taka delivery of the shipping documents. This stage is
known as =etirement of Impart #ills.
#efore retirement of impart bills, the *H) opening bank will calculate the charges which
are to be realized from the importer.
Ret2re(ent 5ouchers to )e prepared:
"r. >pener $H)
"r. unday "eposit $H) 0%argin on *H)1
)r. /$" H "raft $mount
$ny other charges vouchers if necessary.
The *H) opening bank being received the documents from the negotiated bank
will scrutinize the documents with the respective *H) terms and condition.
i1 7orwarding schedule of Negotiating #ank
- Ehether there is any instruction.
- Ehether these instruction can be complied with.
- Ehether the negotiating commission realized.
ii1 #ill of <!change 0"raft1
- Ehether it is drawn in order.
- Ehether the amount of draft corresponds with the *H) amount.
- "raft amount should be eDual or less than the *H) amount.
- Ehether the date of the draft of the within the date as per *H) etc.
iii1 #ill of *ading 0#H*1
- Ehether the #H* is clean i.e. there is no clause like some cartons are broken or
any other clause.
- Ehether there is signature of shipping $uthority.
- Ehether the date of #H* is within the date of shipment as per *H).
- Ehether the freight is prepared or not as per *H) terms.
- Ehether the part of shipment and part of destination are similar as per *H).
- Ehether the title of #H* belongs to *H) opening bank.
- Ehether the full sets of #H* dispatched by negotiating bank etc.
iv1 )ommercial Invoice
- Ehether the full particulars of goods have been incorporated.
- Ehether the amount of invoice corresponds with the amount of #ill of
<!change and as per the *H) terms.
- Ehether I=) No. *)$ No etc. have been incorporated.
- Ehether it is signed by the beneficiary.
v1 >ther "ocuments
- Ehether all other documents are prepared as per *H).
$fter securitization, the official concerned may found the following ';
i1 "ocuments are in order i.e. no discrepancy.
ii1 %inor discrepancy; $cceptable to the importer.
iii1 %ajor discrepancy; %ay be acceptable to the =egulation or those are irremovable.
$fter performing necessary formalities 6 entry in respective registers documents
to be handed over to theimporter on proper acknowledgement after certification and
endorsement of the documents.
Cert2*2cat2on o* In5o2ce
Invoice to be certified as follows because the custom $uthority will impose
custom duty on the certified amount '
)ertified that Invoice amount
( C..................................................... is )orrect
7or /rime #ank *td.
%ohakhali #r., "haka.
$uthorized >fficer
>n the last working day of the month returns of bills lodged during the month
through I%/ 7rom to be sent to 7oreign <!change "epartment, #angladesh #ank.
>riginal R 7rom *H) opening bank to #angladesh #ank after lodgemtn of
"uplicate R To be filled by the *H) opening bank with e!change control copy of
#ill of <ntry submitted by the importer after clearance of the goods from the customs
Triplicate R >ffice copy of *H) opening bank.
Suadruplicate R 7rom *H) opening to #angladesh #ank if the importer does retire
the documents.
<ndorsement in bill of <!change
=eceived /ayment
7or /rime #ank *td.
%ohakhali #r., "haka
$uthorized >fficer
<ndorsement in bill of *ading'
O/lease deliver to the order ofO
%H 8han 6 )o., *td. 0Name of the importer1
$uthorized >fficer $uthorized >fficer

Import 7inance plays vital role in a countryGs foreign trade business. Import of
goods and service are needed no only for e!port production but also to supply domestic
industry with the necessary inputs which are not locally available or available at
uneconomic cost and are needed for e!pansion and development.
*oan $gainst Imported %erchandise 0*I%1 is a facility provided by the bank to
the importers who are in shortage of fund to retire the import bills and thus to clear the
goods from the post authority. In other works it may be referred as an advance against
"IM Accounts (ay )e created 2n the *o++o62n4 t6o cases :-
a1 *I% $ccount on importerGs reDuest.
b1 7orced *I% $ccount.
a3 "IM Account 2n 2(porterDs reCuest
$fter lodgment of documents, the importers concerned to be intimated for early
retirement of the documents by paying outstanding bill amount including other charge. If
the importer is not in a position to retire the bill out of his own sources at that moment
may reDuest the bank to clear the goods by creating *I% $ccount. >n receipt of the
importer reDuest the official of the import bills section will prepare an office note by
calculating the total landed cost of the consignment. To ascertain the landed cost the
following points to be considered.
i1 #ill amount i.e. invoice amount ' Tk. .......................
ii1 )ustoms duty A ' Tk. .......................
iii1 :at A ' Tk. .......................
iv1 "evelopment surcharge A ' Tk. .......................
v1 ) 6 7 $gentGs bill 0appro!1 ' Tk. .......................
vi1 %iscellaneous 0appro!1 ' Tk. .......................
Total landed cost of the goods ' Tk. .......................
*ess margin retained at the time of opening *H) ' Tk. .......................
*ess 7urther margin to be realised from the importer ' Tk. .......................
#anks liability will be ' Tk. ........................
<fforts should be taken so that at least &4A to +4A margin of the landed cost may realise
from the importer. =ealization of margin will depend on the banker customer relationship
and also on the marketability of the goods.
The following charge documents have to e!ecuted by the importer ';
i1 "/ Note 0"emand /romissory note1.
ii1 *etter of $rrangement.
iii1 *etter of "isbursement.
iv1 *etter of pledge.
v1 $ny other document of necessary.

The branch %anager are not empowered to sanction the *I% $H)s in favor of the
importers for clearance the goods without obtaining the approval from 9ead >ffice.
>n getting approval from 9ead >ffice on the >ffice Note the branch will send the
documents to the port city branch by indorsing the bill of lading in favor of them with
certification of invoice for clearance the goods through importerGs nominated as well as
#ankGs approval ) 6 7 agent. In the forwarding letter clear instructions to be given for
dispatching the goods either by train or by truck duly insured #ranch %anagers will have
to take prior approval from International "ivision, 9ead >ffice to create *I% $ccount in
favor of importers. #efore sending the documents to the port city branch and under taking
on prescribed from with special adhesive stamp of Tk. @4H; 07le!ible1 regarding the
stipulated period sanctioned to the importer to be obtained.
The following accounting entries and vouchers are generally to be passed in the
set of =etirement :ouchers on the same day at the branch ';
"r. )ustomer $H)
"r. *I%
)r. I#T$ H /ay order
)r. /$"
The particulars of *I% $H) must be entered and voucher to be posted in the *I%
$fter clearance, the goods should be stared either in #ankGs go down or in
importerGs go down under bankGs lock and key and the particulars of goods to be entered
in the space provided in the *I% =egister. $t the same time issuance of goods covering
fire and other risk to be made. 5o down staff salary, go down rent 0if the goods stored at
the #ankGs go down1 and other miscellaneous charges in connection with the *I% $H)
will be paid by debit to partyGs *I% $H) under advice to the importer.
)3 Forced "2( Account
Immediately after lodgment of documents the branch incumbent and concerned
dealing official shall vigorously pursue importers far retirement of bills. /$" should not
remain outstanding fare more than +4 days from the date of lodgment on as per norms.
If the party fails to retire the documents within +4 days or within the date of arrival of
ship which ever is earlier the branch should sent the documents for clearance the goods.
>ther formalities in connection with the forced *I% $H) will be the same as in the case
of *I% $H) created on importerGs reDuest.
No further *H)Gs of the party for whom the bank was forced to clean the consignment
and the party failed to take delivery of the goods within the time specified below under
the head disposal of *I% stocks should be opened without prior approval from 9ead
>ffice even if the same is within the discretionary power of branch %anager.
<$- #I,PO,A" OF "IM ,TOC!,
a1 The *I% liability should be adjusted within a ma!imum period of ,- days from the
date of storage for commercial importer and .4 days for industrial importers. 0It may
very as per circular1
b1 /art delivery against payment may also be allowed if so desired by the party to clear
the *I% liability within the aforesaid time, after recovery margin over the landed cost
if possible, but such payment should be proportionate with outstanding *I% liability
taking into account the interest, go down rent and other charges up to eventual date of
final delivery. This should be so arranged that with the last delivery the entire *I%
liability is fully adjusted. pecial care should however to taken to protect bankGs
interest in case where all the packets H bundles are not of eDual size Duality and price.
c1 $dditional +4 days may be allowed to both commercial and industrials, if so
approached by them for final adjustment. In the event of importerGs failure to lift the
goods on payment of bankGs dues in full even within the e!tended period of +4 days,
the following steps shall be taken by the branch incumbent '
i1 7inal notice shall be issued on importerGs giving 1- days time for payment.
ii1 Incase on response is received from importer legal notice shall be served on the
party giving another 1- days time for payment.
iii1 In case the concerned borrowers do not liDuidate the liability within the stipulated
time limit, but come forward with prayer for further time, in such cases branch
incumbents may allow further +4 days time only provided he is satisfied that
importer will be in a position to repay the outstanding dues within the e!tended
period under advice to 9ead >ffice.
iv1 In case the party fails to liDuidate their liability within the e!tended time
granted as mentioned in the proceeding paras the goods should be disposed off
in public auction.
v1 7or disposal of the import consignment, a "isposal )ommittee shall be
constituted by 9ead >ffice on receipt of a report form #ranch incumbent that
the consignment need to be disposal off by public auction as per 9ead >ffice
standing instruction. The "isposal )ommittee shall be concerned with the
9ead >ffice as )hairman, %anager of main #ranch and %anager of
concerned branch or as decided by the 9.>.
vi1 $ notice for public auction of the goods should be published by the "isposal
)ommittee at least in two National "ailies 0one #engali and <nglish1. In all
cases of public auction reDuired earnest money shall be -A to be fi!ed by
9ead >ffice of the Duoted amount in the farm of "emand "raft H /ayment
>rder. This condition must invariably be mentioned in the public notice
inviting Duotations for sale of import consignments. The "isposal )ommittee
should open the tenders and select the highest bidder.
vii1 The committee may also reject the highest offer if the price Duoted is less than
the normal market price and shall immediately call for fresh tenors.
viii1 It there be any shortfall after disposal of goods, a case should be filed for the
recovery of the short full amount, in the court of law immediately against the
importer H guarantor concerned under intimation to 9ead >ffice.
i!1 The branches shall invariably send monthly *I% statement on the prescribed
form duly filled in as usual to 9ead >ffice 0I"1
<$? "ETTER OF TR%,T :"TR3
#y e!ecuting the standard letter of trust 0or trust receipt1 the customer
acknowledges receipt of the documents of tittle to the goods, as the case may be and
agrees to hold them and the relative goods, when delivery thereof is taken by him, in trust
as agents for the bank until the goods are sold or used for the e!press purpose for which
they were released to him. The customer also undertakes to keep the transaction separate
and assign and deposit with the bank the sale proceeds immediately realization but in any
case not later than time period stipulated in the letter. 7urther, the customer undertakes to
keep the goods insured and in the event the goods or may part thereof cannot be used by
him for the declared purpose or on demand being made by the bank for the return of the
documents H goods, he promised to restore the goods or documents to the bankGs custody.
The trust receipt, thus, enables the importer customer to take re;delivery of the documents
pledged to the pledge bank.
>$1 Introduct2on:
%otivation can be described as the driving force within individuals that impels
them to action. This driving force is produced by a state of tension, which e!ists as the
result of an unfulfilled need. Individuals strive ; both cimsciously and subconsciously ; to
reduce this tension through behavior that they anticipate will fulfill their needs and thus
relieve them of the stress they feel . The specific goals they select and the patterns of
action they undertake to achieve their goals are the results of individual thinking and
learning. 7igure ,;1 presents a modal of the motivational process . It portrays motivation
as a state of need ;induced tension that e!erts a OpushO on the individual to engage in
behavior that he or she e!pects will gratify a need and thus reduce the tension. Ehether
gratification is actually achieved depends on the course of action being pursued. 0If a high
school girl e!pects to become a great tennis player by wearing the same brand of sneakers
that ?ennifer )apriati wears, she is likely to be disappointedJif she is likely to be
disappointedJ if she takes tennis lessons and practices diligently, she may succeed.1
The specific courses of action that consumers pursue and their special goals are
selected on the basis of their thinking processes 0i.e., cognition1 and previous learning.
7or that reason, marketers who understand motivational theory attempt to influence the
consumerGs cognitive processes.

>$& Mot25at2on E Or4an2Fat2ona+ 'ro6th
:arious groups provide specific challenges in terms of motivation. In this section
we want to focus on how to apply motivation concepts in this chapter, which is the related
with organizational growth.
0 I 1 %otivating /rofessionals
In contrast to a generation ago, the typical employee today is more likely to be a
highly trained professional with a college degree than a blue;collar factory worker. These
professionals receive a great deal of intrinsic satisfaction from their work. They tend to be
well paid. o what, if any, special concerns should you be aware of when trying to
motivate a team of engineers at Intel, a software designer at %icrosoft, or a group of
)/$s at /rime Eaterhouse K
/rofessionals are typically diferent from nonprofessionals.
They have a strong
and long; term commitment to their field of e!pertise. Their loyalty is more often to their
profession than to their employer. To keep current in their field, they need to regularly
update their knowledge, and their commitment to their profession means they rarely
define their work week in terms of @ to - and five days a week.
Ehat motivates professionals K %oney and promotions typically are low on their
priority list. Ehy K They tend to be ranked high. They like to tackle problems and find
solutions. Their chief reward in their job is the work itself. /rofessionals also value
support. They want others to think what theyGre working on is important. $lthough this
may be true for all employees, because professionals tend to be more focused on their
work as their central life interest, nonprofessionals typically have other interests outside
of work that can compensate for needs not met on the job.
The foregoing description implies a few guidelines to keep in mind if youGre trying
to motivate professionals. /rovide them with ongoing challenging projects. 5ive them
autonomy to follow their interests and allow them to structure their work in ways that
they find productive. =eward them with educational opportunities ; training, workshop,
attending conferences ; that allow them to keep current in their field. $lso reward them
with recognition, and ask Duestions and engage in other actions that demonstrate to them
youGre sincerely interested in what theyGre doing.
$n increasing number of companies are creating alternative career paths for their
professional H technical people, allowing employee to earn more money and status,
without assuming managerial responsibilities. $t %erck 6 )o. I#%, and $T6T, the best
scientists, and researchers gain titles such as fellow and senior scientist. Their pay and
prestige are comparable to those of managers but without the corresponding authority or

i1 Mot25at2n4 Cont2n4ent Wor7ers
Ee noted in chapter 1 that one of the more comprehensive changes taking place in
or organizations is the addition of temporary or contingent employees $s downsizing has
eliminated of OpermanentO jobs, an increasing number of new openings are for part;time,
contract, and other forms of temporary workers. 7or instance, in 133-, appro!imately .
million $mericans, or the contingent workforce.
These contingent employees donGt have
the security or stability that permanent employees have. $s such, they donGt identify with
the organization or display the commitment that other employees do. Temporary workers
also are typically provided with little or no health care, pensions, or similar benefits.
There is no simple solution for motivating temporary employees. 7or that small
set of temps who prefer the freedom of their temporary status ; some students, working
mothers, seniors ; the lack of stability may not be an issue. $dditionally, temporariness
might be preferred by those highly compensated doctors, engineers, accountants, and
financial planners who donGt want the demands of a stable job. #ut these are the
e!ceptions. 7or the most part, temporary employees are so involuntarily.
Ehat will motivate involuntarily temporary employees K $n obvious answer is the
opportunity for permanent status. In those cases where permanent employees are selected
from the pool of temporaries, temporaries will often work hard in hopes of becoming
permanent. $ less obvious answer is the opportunity for training. The ability of a
temporary employee to find a new job is largely dependent on his or her skills. If the
employee sees that the job he or she is doing for you can help develop salable skills, then
motivation is increased. 7rom an eDuity standpoint, you should also consider the
repercussions of mi!ing permanent and temporary workers where pay differentials are
significant. Ehen temps work alongside permanent employees who earn more, and get
benefits too, for doing the same job, the performance of temps is likely to suffer.
eparating such employees or converting all employees to a variable;pay or skill;based
pay plan might help lessen this problem.
ii1 Mot25at2n4 the #25ers2*2ed Wor7*orce
Not everyone is motivated by money. Not everyone wants a challenging job. The
needs of women, singles, immigrants, the physically disabled, senior citizens, and others
from diverse groups are not the same as a white $merican male with three dependents. $
couple of e!amples can make this point clearer. <mployees who are attending college
typically place a high value on fle!ible work schedules. uch individuals may be attracted
to organizations that offer fle!ible work hours, job sharing, or temporary assignments. $
father may prefer to work the midnight to @ $.%. shift in order to spend time with his
children during the day when his wife is at work.
If youGre going to ma!imize your employeesG motivation, youGve got to understand
and respond to this diversity. 9ow K The key word to guide you should be fle!ibility. #e
ready to design work schedules, compensation plans, benefits, physical work settings, and
the like to reflect your employeesG varied needs. This might include offering child and
elder care, fle!ible work hours, and job sharing for employees with family
responsibilities. It also might include offering fle!ible leave policies for immigrants who
want occasionally to make e!tensive return trips to their homelands, or creating work
teams for employees who come from countries with a string collectivist orientation, or
allowing employees who are going to school to vary their work schedules from semester
to semester.

iii1 Mot25at2n4 "o6-,72++ed ,er52ce Wor7ers
>ne of the most challenging motivation problems in industries such as retailing
and fast food is' 9ow do you motivate individuals who are making very low wages and
who have little opportunity to significantly increase their pay in either their current jobs
or through promotions K These jobs are typically skilled with people who have limited
education and skills, and pay levels are little above minimum wage.
Traditional approaches for motivating these people have focused on providing
more fle!ible work schedules and filling these jobs with teenagers and retirees whose
financial needs are less. This has met with less than enthusiastic results. 7or instance,
turnover rates of &44 percent or more are not uncommon for businesses like %c"onaldGs.
Taco #ell, /epsi)oGs %e!ican fast;food chain, has tried to make some of its service jobs
more interesting and challenging but with limited results.
It has e!perimented with
incentive pay and stock options for cashiers and cooks. These employees also have been
given broader responsibility for inventory, scheduling, and hiring. #ut over a four year
period, this e!periment has only reduced annual turnover from &&+ percent to 1.4
Ehat choices are leftK (nless pay and benefits are significantly increased, high
turnover probably has to be e!pected in these jobs. This can be somewhat offset by
widening the recruiting net, making these jobs more appealing, and raising pay levels.
Bou might also try some nontraditional approaches as well. To illustrate, ?udy Eicks has
found that celebrating employees outside interests has dramatically cut turnover among
waiters at her Ehite "og )afe in /hiladelphia.
7or instance, to help create a close and
family;like work climate, Eicks sets aside one night a year where employees e!hibit their
art, read their poetry, e!plain their volunteer work, and introduce their new babies.
iv1 Mot25at2n4 Peop+e #o2n4 H24h+y Repet2t25e Tas7s
>ur final category considers employees who do standardized and repetitive jobs.
7or instance, working on an assembly line or transcribing court reports are jobs that
workers often find boring and even stressful.
%otivating individuals in these jobs can be made easier through careful selection.
/eople vary in their tolerance for ambiguity. %any individuals prefer jobs that have a
minimal amount of discretion and variety. uch individuals are obviously a better match
to standardized jobs than individuals with strong needs for growth and autonomy.
tandardized jobs should also be the first considered for automation.
%any standardized jobs, especially in the manufacturing sector, pay well. This
makes it relatively easy to fill vacancies. Ehile high pay can ease recruitment problems
and reduce turnover, it doesnGt necessarily lead to highly motivated workers. $nd
realistically, there are jobs that donGt readily lend themselves to being made more
challenging and interesting or to being redesigned. ome tasks, for instance, are just far
more efficiently done on assembly lines than in teams. This leaves limited options. Bou
may not be able to do much more than try to make a bad situation tolerable by creating a
pleasant work climate. This might include providing clean and attractive work
surroundings these breaks, and empathetic supervisors.

Mode+ o* the Mot25at2on Process
needs, wants
and desires
#ehavior 5oal or need
>$- Mot25at2on *or "etter o* Cred2t Operat2on ,pec2a++y Pr2(e an7
/rime #ank *td. has committed to #oost up the e!port position and diminishes the
import position, rising of 5ross "omestic /roduct 05"/1 ma!imizing the national growth
6 abolishing the unemployment percent of a educated sector of the nation.
$ll the brunches of /rime #ank *imited are authorized dealer of 7oreign
<!change #usiness. The authorized dealers motivate the importer to import =aw
materials, 7abrics, $ccessories, )hemicals, and :egetable 7at etc.
The import or e!port is motivated by the /rime #ank *imited to the foreign
e!change business, particularly to open the letter of credit. $ letter credit offer advantages
both to the importer and e!porter. The advantages accuring to either of the parties differ
depending upon the nature of credit opened There )ertain )ommon benefit accuring from
the use of credit as under.
Ad5anta4es to the I(porters :
i1 A)2+2ty: The letter of credit enables the importer of purchase materials
0particularly in sellers market1 without making full advance payment.
ii1 Assurance: If the importer task certain safe guards, like calling for packing list,
invoice ate, the Duality and Duantity of the goods consigned is assured.
iii1 W2thout Pay(ent: /rided the buyer has buying credit with the /rime #ank he
may get goods released by the #ank under trust 0e.s. *T=, *I% etc1, i.e. without
payment and pay for then on sale.
Ad5anta4es o* the E9porters :
i1 %nderta72n4: $ superior undertaking of the bank under the letter of credit
assures the importer that when the documents are tendered as per the turns of the
credit payment would be made to him.
ii1 Contro++2n4: The e!porter is absolved of the botheration of knowing in details
the e!change control regulations of the importer country and is also increased to
some e!tent against charges in such regulations.
%odern )ommercial #anking is e!acting business. The reward are modest, the
penalties for bad looking are enormous. $nd )ommercial banks are great monetary
institutions, important to the general welfare of the economy more than any other
financial institution. It has a vastly sobering and e!acting responsibility.
/rime #ank *imited 0/#*1 playing a vital role in financing import and e!ports of
the country. Eithout #ankGs co;operation, it is not possible to run any business or
production activity in this age. <!ports and import need finance in various stages of their
activities. <!port and import financing are letter of credit 0*H)1, payment against
documents 0/$"1, loan against imported merchandise 0*I%1 etc. $ll these facilities are
provided by /#*. 7or this purpose #ankGs consider the borrowerGs business standing,
integrity, liability with the bank term and conditions of the *H). There are lot of risks
involved in foreign business. o, the /rime #ank *imited 0/#*1 has to clearly justify the
customers from a neutral point and gather the current information about the market.
1. Transactions in foreign e!change ' /rinciples and practices
; %.$. Bousuf 6 %.=. inha
&. 7oreign e!change 6 e!change control
; :.:. 8eshkamat
+. 7oreign e!change and financing of foreign trade
; yed $shraf $li
,. /#*Gs $nnual =eport 133- To 1333.
-. 7oreign <!change
- ). ?eevanandam
.. >rganizational #ehavior
- ?ohn E. Newstrom and 8eith "avis
2. /ersonnel H 9uman =esource %anagement
- "avid $. "e;cenzo
- tephen /. =obbins