You are on page 1of 1

Farhan Israq Ahmed

Bank Asia Ltd.


Weekly Journal 8
111 0440 030
Duration: 08/03/2015 to 12/03/2015
Bus 498
Faculty Mentor: Mr. Sheikh Mohammad Rabby (RBY)
As per my rotation this week I was no longer under General Banking or retail
banking. I was shifted to Foreign Trade department. As this is a non-AD (Authorized
Dealer) branch they dont not carry out all of the functions. They share the task with
Central Trade Service Unit (CTSU) department, under International Division of
Corporate Office. The initial function is started from our branch and the rest is
carried out by CTSU and also Head Office. This Branch does the marketing part, to
get the customers and maintains them. This was more like a study week as I had to
read the rules and regulations of Bangladesh Bank and the head office. I have
learned what is Letter of Credit also known as L/C and how it works. There can be
different kind of L/C such as Back to Back, Transferable, Export, and Import. There
are different policies for each of the cases such as Import Policy 2009-12 and Export
Policy 2009-12. In an L/C there are certain character that plays a role such as
applicant who request the credit to issue. The beneficiary on whos the favor the
credit is issued. Not only Bank Asia Ltd. is involved but another bank is needed;
Issuing bank is the one who issues the credit and advising bank advises the request
of issuing bank. There are documents involved such as bill of entry issued by
customs evidencing the arrival of goods into the country. Another document is EXP
Form given by authorized dealers to execute the export against L/C. IMP form is for
the applicant for opening L/C for the purpose of import. Transshipment states the
loading and unloading of goods from one mode of transport to another and also the
discharge and it must be stated in the credit. All of these are needed with
forwarding letter. If there is any changes it is called amendment and must be
mailed. During the trade there are documents required. A proforma invoice where
all the quotation is stated such as price quantity etc. Certificate of Origin is required
where it is stated where the goods are manufactured. Bill of Lading is issued by
shipping company that the goods are delivered as it was received. Bill of exchange
is the most popular instrument where the seller can obtain payment from the buyer.
Insurance Policy is required for the goods. The AD keeps the margin in advance for
opening the L/C. its the income for the bank. Before executing a L/C there must be
a credit report about the reputation of buyer and seller as per the guidance of
Bangladesh Bank.
Some of the customers of Bank Asia are Romania Food and Beverage Bangla Trac,
Graphics LTD. MAQ Engineering, RIGS Marketing along with others.