Chapter-01

Introduction

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 Introduction

1.1 Introduction:

In modern age foreign remittance is a buzz word for all developing countries. Because it is just
not a part of the income of nations, it is a power which developments run smoothly. Without
remittance developments never are imagined by any developing countries. Because inflow of
remittance not only ensures development but also ensure the reduction of poverty. Now-a-days
remittance has kept the economy of Bangladesh more dynamic. The main source of our national
income are foreign direct investment, foreign loans and grants and foreign remittance which are
earned by working labors in abroad and exporting goods in foreign countries. We received
remittance from different developed countries that have positive role on the socio-economic
development of our country. The survey of current foreign remittance in Bangladesh reveals the
fact that it requires rapid modification and adaption to keep harmony with the world economy
business. Foreign Remittance opens up some other salient aspects such as increased foreign trade
and foreign investment. It becomes more obvious by observing the increased number of customs
in some modern banks while others losing them.

In the context of Bangladesh, a country of more than 160 million people, it is to realize that there
is no other opinion for us than to join the current trend. Otherwise it is almost impossible to bring
any sort of fruitful achievement for the country.

1.2 Background of the Study:

Internship is a part of the BBA program of the department of Business Administration of

Metropolitan University. Here, one report is necessary to justify our work in internship. The
department assigned the report. The title of the report titled “Foreign Remittance Management
of Prime Bank Limited: A study of Subid Bazar Branch, Sylhet”. The primary goal of
internship is to provide an on the job expose to the student and an opportunity for translation of
their theoretical conceptions in the real life situation for the completion of BBA program, I was
placed in Prime Bank Limited at Subid Bazar Branch and my Supervisor was Md. Afsarul Islam

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Lecturer of Metropolitan University, Sylhet. This internship report has been prepared on the basis
of my practical experience on Foreign Remittance. I have tried my best to utilize the opportunity
to enrich my knowledge on banking system and incorporate it with the theoretical course.

1.3 Objective of the Study:

 Broad Objective:

The major objective of the study is to evaluate the problems & prospects of Foreign Remittance
Services at Prime Bank Limited.

 Specific Objective:

The specific objectives of the Study are following Bellows-

 To know the process of foreign remittance in stated branch of Prime Bank Limited.
 To understand the characteristics and needs of foreign remittance.
 To know the problem and barriers of foreign remittance.
 To find out ways for solving these problems.

1.4 Methodology of the Study:

Methodology is designed in such a way so that it correspondent to achieve objectives of the

study. The data used to prepare this report has been collected from both primary source that has
been collected formal and informal and informal interviews and secondary source that has been
collected from annual reports, articles and online which together provide more comprehensive
information. I have collected by interviewing employees and managers of Prime bank Limited,
Subid Bazar Branch. I discussed with three employees on the basis of sum unstructured
questions. And I have tried to get the full view of Prime Bank Limited rural development scheme
Subid Bazar branch. I have conducted with 20 customers. I asked them some informal and
unstructured question. From the information given by the employees and customers of the bank,
and from my personal observations and judgment I have developed some findings and
recommendations on Prime Bank Limited Subid Bazar Branch.

1.5 Scope of the Study:

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While preparing this report I had an opportunity to gain deep knowledge about the banking
mechanism, especially in the foreign remittance department. I have also come through many
different personalities, who shared their experiences, while conducting the research on Trade
Finance reporting system.

The report has also given the readers the opportunity to learn about the foreign remittance and
other banking mechanism, the related regulations, and the obligations for monitoring. The
research that this report has covered would give the central bank the necessary feedback
information regarding their new online trade finance reporting system, which would help them
figure out the problems of the new system for further upgrading. The commercial banks can also
gain from the information by learning about their officials’ troubles regarding the reporting
system so that they can come up with a solution to help their employees be more comfortable
and more efficient by making their work easier.

1.6 Limitation of the Study:

As I am an internee of Prime Bank Limited, Subid Bazar Branch, So it is a legal binding on my

part to be abided by the strict confidentiality policy of the bank. Howsoever during the study
period I have tried my best to collect all necessary information the report properly. The study is
great importance and requires huge work.

To conduct this study I had to face some limitation these are as follows-

 As I am newcomer, there is a lack of previous experience in this time.

 Some essential data could not be gathered because of confidentiality concerns.
 In many cases, up to date data information is not published.
 I faced lots of some problems in preparing the report.
 Time frame for the report was very limited. The report was done with three month.

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 Chapter-02

Banking Industry of Bangladesh

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 Banking Industry of Bangladesh

2.1 Definition of Bank:

A bank is a financial institution whose primary activity is to act as a payment agent for
customers and to borrow and lend money. It is an institution for receiving, keeping, and lending
money.

Banks have influenced economies and politics for centuries. Historically, the primary purpose of
a bank was to provide loans to trading companies. Banks provided funds to allow businesses to
purchase inventory, and collected those funds back with interest when the goods were sold. For
centuries, the banking industry only dealt with businesses, not consumers. Banking services have
expanded to include services directed at individuals, and risk in these much smaller transactions
is pooled.

The name bank derives from the Italian word banco “desk/bench”, used during the Renaissance
by Florentines bankers, who used to make their transactions above a desk covered by a green
tablecloth. However, there are traces of banking activity even in ancient times. In fact, the word
traces its origins back to the Ancient Roman Empire, where moneylenders would set up their
stalls in the middle of enclosed courtyards called macella on a long bench called a bancu, from
which the words banco and bank are derived. As a moneychanger, the merchant at the bancu did
not so much invest money as merely convert the foreign currency into the only legal tender in
Rome—that of the Imperial Mint.

2.2 Definition of Banker:

A banker is responsible for establishing and maintaining positive customer relationships,

planning and delivering effective sales strategies and monitoring the progress of new and
existing financial products. Bankers may work as managers in high street branches
providing operational support on a day-to day basis, or in more specialized posts in corporate
or commercial departments at area, regional or head offices.

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2.3 Definition of Banking:

Banking is the process through which an institution, most often owned by the government,
Provides financial services. They include collecting deposits, landing money and issuing debit
and credit cards. Banking is the process of performing the activities of a Bank.

2.4 Law of Banking:

Banking law is based on a contractual analysis of the relationship between the bank and the
customer. The definition of bank is given above, and the definition of customer is any person for
whom the bank agrees to conduct an account.

The law implies rights and obligations into this relationship as follows:

 The bank account balance is the financial position between the bank and the customer,
when the account is in credit, the bank owes the balance to the customer, when the
account is overdrawn, and the customer owes the balance to the bank.
 The bank engages to pay the customer’s cheques up to the amount standing to the credit
of the customer’s account, plus any agreed overdraft limit.

 The bank may not pay from the customer’s account without a mandate from the
customer, e.g. a cheque drawn by the customer.

 The bank engages to promptly collect the cheques deposited to the customer’s account as
the customer’s agent, and to credit the proceeds to the customer’s account.

 right to combine the customer’s accounts, since each account is just an aspect of the same
credit relationship.

 The bank has a lien on cheques deposited to the customer’s account, to the extent that the
customer is indebted to the bank.

 The bank must not disclose the details of the transactions going through the customer’s
account unless the customer consents, there is a public duty to disclose, the bank’s
interests require it, or under compulsion of law.

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2.5 Banking in Bangladeshi Perspective:

Banking is the backbone of the national economy. All sorts of economic & financial activities
revolve round the axis of the bank. As the industry produces goods & commodities, so does the
banks create & control the money market & promotes the formation of the capital. From the
point of view banking a technical profession can be termed as industry. Services to its customers
are the products of the banking industry besides being a pivotal factor in promoting capital
formation in the country. As all economic & fiscal activities revolve round this important
industry, the role of banking can hardly be over emphasized.

Circumstances being such, it becomes imperative to find out the role of banks now playing in the
country & analyze its operational aspects so as to ascertain the importance of this fragile
financial sector & its overall impact on the national economy. To do this a thorough study as to
its distribution, expansion & contribution is essential to comprehend its past, present & future
bearings for the growth & development of the banking sector of the country.

In global context, the role of banks is far reaching & more penetrating in the economic & fiscal
discipline, trade, commerce, industry, export & import et5c all are carried through the banks.
Banks are the only media through which the international trade & commerce are being carried
out .Moreover the entire credit transaction, both national & international is done through.

2.6 Vision and Mission:

“A Bank with a Difference” is the motto of Prime Limited. So the motto itself is self-explanatory
to deliver the vision of the bank. Prime Bank limited is prepared to meet the challenge of the 21st
century well ahead of time. To cope with the challenge of the new millennium it hired
experienced and well-reputed banker of the country from the inception. The bank has efficient
and dedicated professionals and equipped with modern technology to provide the best service in
the need of the people and thus to realize its vision.

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  Vision

 To be the best Private Commercial Bank in Bangladesh in terms of Efficiency, capital

adequacy, asset quality, sound management and profitability having strong liquidity.

 Mission

 To build Prime Bank Limited into an efficient, market-driven, customer focused

institution with good corporate governance structure.
 Continuous improvement of our business policies, procedure and
Efficiency through integration of technology at all levels.

 Focus of Efforts

 On delivery of quality service in all areas of banking activities with the

Aim to add increased value to shareholders’ investment and offer highest
Possible benefits to our customers

 Strategic Priorities

 To have sustained growth, broaden and improve range of products and

Services.

2.7 Objective of the Bank:

The objective of the Prime Bank Limited is specific and targeted to its vision and to position
itself in the mindset of the people as ‘a bank with difference’. The objectives of the Prime Bank
Limited are as follows:

 To mobilize the savings and channeling it out as loan or advance as the company
approve.
 To establish, maintain, carry on, transact and undertake all kinds of investment and
financial business including underwriting, managing and distributing the issue of stocks,
debentures, and other securities.
 To finance the international trade both in import and export.
 To carry on the foreign exchange business, including buying and selling of foreign
currency, traveler’s cheques issuing, international credit card issuance etc.
 To develop the standard of living of the limited income group by providing Consumer
Credit.

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  To finance the industry, trade and commerce in both the conventional way and by
offering customer friendly credit service.
 To encourage the new entrepreneurs for investment and thus to develop the country’s
industry sector and contribute to the economic development.

2.8 Management of the Bank:

Boards of directors are the sole authority to take decision about the affairs of the business. Now
there are 13 directors in the management of the bank. All the directors have good academic
background and have huge experience in business. Captain Imam Anwar Hossain is the chairman
of the bank. The board of directors holds meetings on a regular basis.

 Executive Committee: The Executive Committee consists of the members of the Board
of Directors. This committee exercises the power as delegated by the Board from time to
time and approves all matters beyond the delegation of Management.

 Management Committee: The Management Committee consists of the Managing

Directors and Head Office Executives. They discuss about the progress on portfolio
functions. Different ideas and decisions, guidelines regarding deposits, lending and
management of Human and Material resources are the main concern of this committee.

2.9. Features of a Bank:

The features of a bank are given below:-

Bank is a financial institution which deals with other people’s money i.e. money given by
depositors.

A bank accepts money from the people in the form of deposits which are usually repayable on
demand or after the expiry of a fixed period.

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A bank provides easy payment and withdrawal facility to its customers in the form of cheques
and drafts.

A bank works as an agent for its customer and provides utility services.

Banks make loans to consumers, businesses and organizations. Loans represent fund that are
extended by the bank to the creditor who agrees to pay the fund back, with interest, over a
specified time period.

Banks are operated with the objective of making a profit. Their fee structure and interest rate is
designed with the intention of making money for owners and shareholders.

A bank acts as a connecting link between borrowers and lenders of money. Bank collects money
from those who have surplus money and give to those who are in need of money.

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2.10. Functions of a Bank:

The function of Bank can be categorized into the following categories:-

Figure: function of Bank

2.11 History of banking industry in Bangladesh:

After independence the government of People’s Republic of Bangladesh was formally to cover
The charge of administration of the territory now constitute Bangladesh. In an attempt to
rehabilitate the war-devastated banking of Bangladesh, the government promulgated a law called
Bangladesh Bank (temporary order, 1971 (Acting president’s order No.2 of 1971). By This order,
the state bank of Pakistan was declared to be deemed as offices, branches and Assets of
Bangladesh Bank. On that date there existed 14 scheduled banks with about 3042 branches all
over the country.

After the independence, banking industry in Bangladesh started its journey with 6 nationalized
commercialized Banks, 2 State owned specialized Banks and 3 Foreign Banks. In the 1980s

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Banking Industry achieved significant expansion with the entrance of Private Banks. Now, Banks
in Bangladesh are primarily of two types:

 Scheduled Banks
 Non- Scheduled Banks

Scheduled Banks:

The banks which get license to operate under Bank Company Act, 1991 (Amended in 2003) are
Termed as Scheduled Banks. Banks which are included in the list of central Banks are termed as
Scheduled Banks.

Non- Scheduled Banks:

The banks which are established for special and definite objective and operate under the acts that
are enacted for meeting up those objectives, are termed as Non-scheduled Banks. These Banks
cannot perform all functions of scheduled Banks

2.12 Banks of Bangladesh at a glance:

 Central Bank
 State-owned commercial Banks
 Private commercial Banks
 Specialized Banks:
a) schedule specialized Banks
b) Non- Scheduled Specialized Banks
c) Micro-Finance Organizations ( Semi formal)
d) Co-Operative Banks
 Non-Banking Financial institutions:
a) merchant Banking companies
b) .housing development finance companies
c) Stock Exchange
d) Insurance Companies
 Other banks:
a. Retail Bank
b. Unit Bank
c. Branch Bank
d. chain Banking
e. group Banking
 Central Bank:

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The central bank is the organ of the government that performs the major financial operations Of
the government, monitors and controls the functions of commercial Bank for the economic
Development of a country. Every country of the world has a central bank. According to the
pursuant to Bangladesh Bank Order-1972, the Government of Bangladesh reorganized the Dhaka
branch of the State Bank of Pakistan as the central bank of the country, and named it Bangladesh
Bank with perspective effect from 16 December 1971.

 State-owned Commercial Banks:

State –owned Banks are functioning as nationalist. Among the state owned Banks, six are
Commercial and two are specialized. Here is the list:

 State-owned Commercial Banks:

1. Sonali Bank Limited
2. Janata Bank Limited
3. Agrani Bank Limited
4. Rupali Bank Limited
5. Basic Bank Limited
6. Bangladesh Development Bank Limited
 Private commercial Banks:

1. AB Bank Limited

2. Bangladesh Commerce Bank Limited

3. Bank Asia Limited

4. BRAC Bank Limited

5. City Bank Limited

6. Dhaka Bank Limited

7. Dutch Bangla Bank Limited

8. Eastern Bank Limited

9. IFIC Bank Limited

10. Jamuna Bank Limited

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11.meghna Bank Limited

12.Mercantile Bank Limited

13. Midland Bank Limited

14. Modhumoti Bank Limited

15. Mutual Trust Bank Limited

16. National Bank limited

17. NCC Bank Limited

18. NRB Bank Limited

19.NRB Commercial Bank Limited

20. NRB Global Bank Limited

21. One Bank Limited

22. Premier Bank Limited

23. Prime Bank Limited

24. Pubali Bank Limited

25. South Bangla Agriculture and commerce Bank Limited

26. Southeast Bank Limited

27. Standard Bank Limited

28. The Farmers Bank Limited

29. Trust Bank Bangladesh Limited

30. United Commercial Bank Limited

31. Prime Bank Limited

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 Islamic Commercial Banks in Bangladesh:

There are eight Islamic Commercial Banks currently operating in Bangladesh. These are:

1. Islami Bank Bangladesh Limited

2. Al- Arafah Islami Bank Limited
3. Export import Bank of Bangladesh Limited
4. Social Islami Bank limited
5. Shahjalal Islami Bank Limited
6. First security islami Bank Limited
7. Union Bank Limited
8. ICB Islamic Bank Limited

 Foreign Commercial Banks:

There are nine foreign commercial Banks currently operating in Bangladesh. These are:

1. Bank AL-Falah Limited

2. City Bank NA
3. commercial Bank of Ceylon
4. Habib Bank Limited
5. HSBC (The Hong Kong and Shanghai Banking Corporation Ltd)
6. National Bank of Pakistan
7. Standard Charted bank
8. State Bank of India
9. Woori Bank

2.13 Non-Banking Financial Institutions:

1. Agrani SME Financing Company Limited

2. Bangladesh Finance and Investment Company Limited

3. Bangladesh Industrial Finance Company Limited

4. Bangladesh Infrastructure Finance Fund Limited

5. Bay Leasing And Investment Limited

6. CAPM Venture Capital and Finance Limited

7. Delta Brac Housing Finance Corporation Limited

8. Far-east Finance & investment Limited

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 9. FAS finance & Investment Limited

10. First Finance Limited

11. GSP Finance Company (Bangladesh) Limited

12. Hajj Finance Company Limited

13. IDLC Finance Limited

14. Industrial and Infrastructure Development Finance Company Limited

15. Industrial Promotion and development Company of Bangladesh Limited

16. Infrastructure Development Company Limited

17. International Leasing and Financial Services Limited

18. Islamic Finance and investment Limited

19. Lanka Bangla Finance Limited

20. Meridian Finance and Investment Limited

21. MIDAS Financing Limited

22. National Finance Limited

2.14 Banking Industry in Bangladesh:

Banking industry in Bangladesh is characterized as a highly competitive and highly

regulated sector. With a good number of banks already in operation and a few more in
the pipeline, the market is becoming increasingly competitive by the day.

The commercial banks of the country are constantly looking for ways to develop their
market and product offers to remain ahead of others. A significant amount of regulation
by Bangladesh Bank prevents the scope of introducing newer products into the market
and thereby restricts a banks’ ability to outperform others with a diversified product
range.

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However, recent trends have shown banks shifting away from vanilla products (basic
products) towards higher value added products that are highly structured, to meet the
needs of the clients.

The Banking Industry in Bangladesh is one characterized by strict regulations and

monitoring from the central governing body, the Bangladesh Bank. The chief concern is
that currently there are far too many banks for the market to sustain. As a result, the
market will only accommodate only those banks that can transpire as the most
competitive and profitable ones in the future.

Currently, the major financial institutions under the banking system include:

 Bangladesh Bank
 Commercial Banks
 Islamic Banks
 Leasing Companies
 Finance Companies

Of these, there are four nationalized commercial banks (NCB), 5 specialized banks, 11
foreign banks, 26 domestic private banks and 6 Islamic Banks currently operating in
Bangladesh. Their proportions are shown in figure 01.

Figure Source: Scheduled Bank Statistics, Bangladesh Bank

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All local banks must maintain a 4% Cash Reserve Requirement (CRR), which is non-
interest bearing and a 16% Secondary Liquidity Requirement (SLR). With the
liberalization of markets, competition among the banking products and financial
services seems to be growing more intense each day. In addition, the banking products
offered in Bangladesh are fairly homogeneous in nature due to the tight regulations
imposed by the central bank.

Competing through differentiation is increasingly difficult and other banks quickly

duplicate any innovative banking service.

Foreign banks are playing a very important role in the country’s banking sector. These
banks are holding 9% of the country’s total deposits (shown in figure 02). These banks
are inventing innovative products and ideas in the banking industry. Local banks are
learning from these banks and in some cases duplicating their products.

Figure Source: Scheduled Bank Statistics, Bangladesh Bank

Some of the banks, including local and foreign, are playing their role in the socio-
economic development of the country.

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 Chapter-0 3
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 Overview of the Prime Bank Ltd

Overview of the Prime Bank Ltd

3.1 Historical Background of Prime Bank Limited:

In the backdrop of economic liberalization and financial sector reforms, a group of highly
successful local entrepreneurs visualized an idea of introducing a commercial bank with different
outlook. For them, it was competence, excellence and consistent delivery of reliable service with
superior value products. Accordingly, Prime Bank was created and commencement of business
started on 17th April 1995.

As a fully licensed commercial bank, Prime Bank is being managed by a highly professional and
dedicated team with long experience in banking. They constantly focus on understanding and
anticipating customer needs. As the banking scenario undergoes changes so is the bank and it
repositions itself in the changed market condition.

Prime Bank has already made significant progress within a very short period of its existence. The
bank has been graded as a top class bank in the country through internationally accepted

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CAMELS rating. The bank has already occupied an enviable position among its competitors
after achieving success in all areas of business operation.

Prime Bank offers all kinds of Commercial Corporate and Personal Banking services covering all
segments of society within the framework of Banking Company Act and rules and regulations
laid down by our central bank. Diversification of products and services include Corporate
Banking, Retail Banking and Consumer Banking right from industry to agriculture, and real state
to software.

Prime Bank, since its beginning has attached more importance in technology integration. In order
to retain competitive edge, investment in technology is always a top agenda and under constant
focus. Keeping the network within a reasonable limit, its strategy is to serve the customers
through capacity building across multi-delivery channels. PBL is better placed and poised to take
its customers through fast changing times and enable them compete more effectively in the
market.

3.2 Vision and Mission of Prime Bank Limited:

“A Bank with a Difference” is the motto of Prime Bank Limited. So the motto itself is self-
explanatory to deliver the vision of the bank. Prime Bank limited is prepared to meet the
challenge of the 21st century well ahead of time. To cope with the challenge of the new
millennium it hired experienced and well-reputed banker of the country from the inception. The
bank has efficient and dedicated professionals and equipped with modern technology to provide
the best service in the need of the people and thus to realize its vision.

 Vision

To be the best Private Commercial Bank in Bangladesh in terms of efficiency, capital adequacy,
asset quality, sound management and profitability having strong liquidity.

 Mission

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To build Prime Bank Limited into an efficient, market-driven, customer focused institution with
good corporate governance structure. Continuous improvement of our business policies,
procedure and efficiency through integration of technology at all levels.

Focus of Efforts

On delivery of quality service in all areas of banking activities with the aim to add increased
value to shareholders’ investment and offer highest possible benefits to our customers.

Strategic Priorities

To have sustained growth, broaden and improve range of products and services”.

3.3 Product & Services:

The product & service of prime bank limited are described below-

 Deposit Products:

 Contributory Savings Scheme

 Education Savings Scheme

 Short Term Deposit

 Double Benefit Scheme

 House Building Deposit Scheme

 Monthly Benefit Deposit Scheme

 Fixed Deposit Scheme

 Loan Products

 Consumer Credit Scheme

 Lease Finance

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  Hire Purchase

 Small & Medium Enterprise Credit Scheme

 Loan Against Shares

 House Building Financing Scheme

 Prime Bank Master Card VISA credit card

 Import Financing

 Export Financing

 Project Loan

 Islamic Banking

 Mudaraba Special Notice Deposit

 Mudaraba My First Account

 Mudaraba Special Saving Account

 Mudaraba House Building Deposit Scheme

 Foreign Remittance

 Web Based Instant Cash Remittance

 TT Remittance

 Wire Transfer Remittance

 DD Remittance

 Retail Loan Products

 Swapnapuran Home Loan

 Car Loan

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  Any purpose Loan

 CNG Convention Loan

 Doctor’s Loan

 Marriage Loan

 Travel Loan

 Household Durables Loan

 Education Loan

 SME Banking

 Shahaj Rin

 Sampad Ri8n

 Chalti Rin

 Moushami Rin

 Digun Rin

 Anchol

 Prodip Loan

 Prime Shubidha

 Credit Card

 Platinam Dual Credit Card

 Gold Credit Card

 Silver Credit Card

 Travel Quota International Credit Card

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  ERQ International Credit Card

 Hasanah Credit Card

 Hajj Credit Card

 Reward Credit Card

 Other Services

 SMS Banking

 Phone Banking

 Kiosk

 Utility Bill Pay Service

 ALTITUDE Internet Banking

3.4 Objective of Prime Bank Limited:

The objective of the Prime Bank Limited is specific and targeted to its vision and to position
itself in the mindset of the people as ‘a bank with difference’.

The objectives of the Prime Bank Limited are as follows-

 To mobilize the savings and channeling it out as loan or advance as the company
approve.
 To establish, maintain, carry on, transact and undertake all kinds of investment and
financial business including underwriting, managing and distributing the issue of stocks,
debentures, and other securities.
 To finance the international trade both in import and export
 To carry on the foreign exchange business, including buying and selling of foreign
currency, traveler’s cheques issuing, international credit card issuance etc.

26 | P a g e
  To develop the standard of living of the limited income group by providing Consumer
Credit.
 To finance the industry, trade and commerce in both the conventional way and by
offering customer friendly credit service.
 To encourage the new entrepreneurs for investment and thus to develop the country s
industry sector and contribute to the economic development.

3.5 Management of Prime Bank Limited:

Boards of directors are the sole authority to take decision about the affairs of the business. Now
there are 13 directors in the management of the bank. All the directors have good academic
background and have huge experience in business. The board of directors holds meetings on a
regular basis.

 Executive Committee: The Executive Committee consists of the members of the Board of
Directors. This committee exercises the power as delegated by the Board from time to time and
approves all matters beyond the delegation of Management.

 Management Committee :
The Management Committee consists of the Managing Directors and Head Office Executives.
They discuss about the progress on portfolio functions. Different ideas and decisions, guidelines
regarding deposits, lending and management of Human and Material resources are the main
concern of this committee.

3.6 Prime Bank Limited at a glance:

Name Of the organization Prime Bank Limited

Year of Establishment 17th April 1995
Head Office 119-120, Adamjee Court Annex building,
Motijheel Commercial Area, Dhaka-1000.
Nature of the organization Commercial and Private Bank of
Bangladesh.
Capital Asset: BDT 199.95 billion (In year 2011)
Deposit: BDT 35.25 billion (In year 2011).
Service a) Commercial banking both Conventional

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 and Islamic mode.

b) Merchant and Investment Banking.

c) SME & Retail Banking

d) Credit card and off-shore banking.

Number of Branches 103 (Corporate)

17 (SME)
Number of Employees 2,292
Market Price per share BDT 44.50
Service coverage & customers Serves individual and corporate customers
within Dhaka ,Chittagong, Khulna, Barisal,
Sylhet, Rajshai& Rangpur
No. of Foreign correspondents 644(In year 2011)
CRISL Rating (Credit Rating Information Long term-AA+

Service Limited) Short term- ST-1

3.7 Management Hierarchy of Prime Bank Limited:

Top Level

Chairman
BOD Executive Level
Executive Committee
Managing Director

AMD
DMD
SEVP
EVP Mid Level Management
SVP
FAVP
VP
SAVP Officer
Senior Executive
AVP Officer
Executive
Principal Officer
Senior Officer
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Management
Management Trainee
Trainee L2
L1
Junior Officer
Figure 3.7: Hierarchy position ofJunior
PBL Level Management
3.8 Functional Structure of Prime Bank Limited:

Prime Bank Ltd. has the following functional departments in its head office-

Logistic & Support Services Division (L&SSD)

This Division was formerly known as General Services Division (GSD). Their main function
relates to procurements and supply of all tangible goods and services to the Branches as well as
Head office of Prime Bank Limited. This includes-

 Every tangible functions of Branch opening such as making lease agreement, interior
decoration etc.

 Print all security papers and Bank Stationeries.

 Distribution of these stationeries to the branch.

 Purchase and distribute all kinds of bank’s furniture and fixtures.

 Receives demand of cars, vehicles, telephones etc. from branched and different
divisions in head office and arrange, purchase and delivery of it to the concerned
person/Branch.

 Install & maintain different facilities in the Branches.

Financial Administration Division (FAD)

Financials Administration Division mainly deals with the account side of the Bank. It deals with
all the Head Office transactions with bank and its Branches and all there are controlled under the
following heads-

 Income, Expenditure Posting: All income and expenditures are maintained and posted
under these heads.

 Cash Section: cash section generally handles cash expenditure for office operations
and miscellaneous payments.

29 | P a g e
  Bills sections: this section is responsible for inland bills only.

 Salary & Wages of the Employee: Salary and wages of the Head Office executives,
Officers 7 Employees are given in this department.

 Maintenance of Employee Provident Fund: Employee provident fund accounts are

maintained here.

 Credit Division:

The main function of this division is to maintain the Bank’s credit portfolio. A well reputed and
hard working group of executives & officers runs the functions of this division. Other major
functions are the following-

 Receives proposals

 Proposes and appraises.

 Get approval.

 Communication and Sanction.

 Monitoring and follow-up.

 Set price for credit and ensure effectiveness of it.

 Prepare various statements for onward submission to Bangladesh bank.

 International Division:

The objective of this division is to assist management to make international dealing decisions
and after decision is made, guide Branches in their implementation. Its functional areas are as
follows-

 Maintaining correspondence relationship.

 Monitoring foreign exchange rate and exchange dealings.

 Authorizing of signing and test key.

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  Monitoring foreign remittance returns & statements.

 Sending updated exchange rates to concern branches.

 Computer Division:

Prime Bank operates and keeps records of its assets and liabilities in computers by using
integrated software to maintain client Ledger and general Ledger. The main function of this
division is to provide required Hardware and Software.

 Public Relations Division :

It has to perform certain functions related to all types of communication. The broad routine
functions can be enumerated as follows-

 Receiving and Sanctioning of all advertisement application

 Keeping good relation with different newspaper offices

 Inviting concern ones for any occasion.

 Keeping good relation with different officers of electronic media.

 Marketing Division :

Marketing Division is involved in two types of Marketing.

Asset marketing: Marketing of assets refers to marketing of various kinds of loans and
advances. In-order to perform this job, they often visits dome large organizations and attract then
to borrow from the Bank to finance profitable ventures.

Liability Marketing: The process of Liability marketing is more of less same as Asset
marketing. In this case different organizations having excess funds are solicited to deposit their
excess fund to the Bank. If the amount of money to be deposited is large, the Banks sometimes
offer a bit higher price than the prevailing market rate.

Human Resources Division

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HRD performs all kind of administrative and personnel related matters. The broad functions of
the division are as follows-

 Selecting & Recruitment of new Personnel.

 Prepare all formalities regarding appointment and joining of the successful

candidates.

 Placement of Manpower.

 Deal with the transfer, promotion and leave of the employees.

 Training & Development.

 Termination and retrenchment of the employees.

 Keeping records and personal file of every employee of the Bank.

 Employee welfare fund running.

 Arranges workshops & trainings for employee & executives.

 Inspection & Audit Division :

Inspection and Audit division works as internal audit division of the Company. The officers of
this division randomly go to different Branches examine the necessary documents regarding each
single account. If there is any discrepancy, they inform the authority concerned to take care of
that/those discrepancies. They help the bank to comply with the rules and regulation imposed by
the Bangladesh Bank. They inform the Bangladesh Bank about the Current position of the rules
and regulation followed by the Bank.

 Credit Card Division

Prime Bank obtained the principal membership of Master Card International in the month of
May, 1999. A separate Division is assigned to look after this card. The Marketing Team of this
division goes to the potential customers to sell the card. Currently Prime Bank Ltd. offers four
types of card:

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  Local Silver Card.

 International Silver Card

 Local Gold Card

 International Gold Card

Recently Prime Bank has obtained the membership of VISA credit Card and soon they will start
marketing of it.

3.9 SWOT Analysis of Prime Bank Limited:

Every organization is composed of some internal strengths and weaknesses and also has some
external opportunities and threats in its whole life cycle. The following will briefly introduce
Prime Bank’s internal strengths and weaknesses, and external opportunities and threats as were
observed in the three months of my internship program.

 Strengths

 Favorable reputation because PBL is a very old commercial bank in banking sector

 Top management has contributed heavily towards the growth and development

 Strong financial position

 Provides its customers excellent and consistent quality in every service.

 Quality service with relatively lower price.

 Friendly interactive and informal working environment.

 Strong position in CAMEL rating.

 Weaknesses

 Pay structure have a big discrimination within officers and executives.

 The employees are burdened with extra workloads and works late hours.

 Pay order processing is not satisfactory.

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  Incoming Mail processing is slow.

 Advertising and promotion is one of the weaknesses of PBL. It is not that efficient in
marketing activities.

 Lots of inexpert and laggard assistant officers and existing manual vouchers.

 Opportunities

 Can recruit experienced, efficient and knowledgeable work force as it offers good
working environment.

 The Bank has already introduced on line modern facilities to its customer.

 Expand product line to meet broader range of customers,

 Can motivate the employees to work more efficiently by increasing the remuneration.

 Threats

 Upcoming private local banks.

 Comparatively high salary margin.

 Challenge of new entries.

 Immerge of the multinational banks and their rapid expansion.

 Rival banks easily copy the products offering of PBL. Therefore, the bank needs
continuous product innovation to survive with competition.

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 Chapter- 4

Core Part

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 Core Part

4.1 Definition of Foreign Remittance:

A remittance is a transfer of money by a foreign worker to an individual in his or her home

country. Money sent home by migrants competes with international aid’s one of the largest
financial inflows to developing countries.

Foreign remittance can be defined as the purchase and sale of freely convertible foreign
currencies as admissible under exchange control regulations of the country. A looser translation
is the sending of the money home while working in a foreign country. Thousands of people are
currently working and living in a country that is not their home, and sending funds regularly
back to their families in their home country.

4.2 Meaning of Foreign Exchange:

Foreign Exchange means exchange foreign currency between two countries. If we consider
“Foreign Exchange” as a subject, then it means all kind of transactions related to foreign
currency. In other wards foreign exchange deals with foreign financial transactions.

H.E Exit defined “Foreign Exchange” as the means and methods by which rights to wealth
expressed in the currency of one country are converted into right to wealth in terms of the
currency of another country.

4.3 Types of Foreign Remittance:

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In broad sense foreign remittance includes all sale and purchase of foreign currencies on account
of import, export, travel and other purpose. However specifically foreign remittance means sale
and purchase of foreign currencies for the purpose other than export and import.

There are two types of remittance:

 Outward remittance
 Inward remittance

FOREIGN REMITTANCE

INWARD FOREIGN OUTWARD FOREIGN

REMITTANCE REMITTANCE

Figure: Types of Remittance

 Foreign outward remittance:

The sending country, where the wage earner is located. The sender uses a bank or foreign
exchange company to send money to foreign country. Many of the receiving banks have
established remittance relationship with currency houses and banks in other countries to better
facilitate the flow of remittances into the country.

Outward remittance may be made for following purpose-

 Travel.
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  Medical treatment.
 Education purpose.
 Attending seminar.
 Profit of foreign companies.
 Technical assistance.

 Foreign Inward Remittance:

The receiving country where the beneficiary resides. The bank receives the money that has been
sent from the sending person in the country in which the money has been earned.

There is no restriction on inward remittances by Bangladesh bank other than the prescribed
formalities to be complied with by the exporters and other recipients. The authorized dealer can
freely purchase foreign currencies.

4.4 Foreign Inward Remittance and Modes of Inward Remittance:

Inward Remittance

Inward remittance is the remittance which enters into our country from another country.

The inward remittance may be follows-

 Exports Proceeds
 Wages earners
 Investment
 Grand
 Aids
 UN peace keeping
 Commission/Service Charges
 Fees
 Tourisms
 Business Development/Fair

Modes of foreign Inward Remittance-

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  T.T-Telegraphic Transfer
 M.T-Mail Transfer
 D.D- Demand Draft
 T.C- Travelers cheque
 P.O- Pay order

Besides this, foreign inward remittance also includes remittances on account of export, purchase
of T.C, foreign currency notes and coins, Cheques issued on foreign banks in favors of
beneficiaries in Bangladesh etc.

1. T.T: Cable or telex instruction of payment is called as Telegraphic Transfer, where a foreign
bank issues a T.T in a favor of someone in Bangladesh. It credits the amount, received from the
remitter to the NOSTRO A/C of its correspondent bank on receipt of the T.T; the paying bank in
Bangladesh will make payment of the proceeds of the
T.T in foreign currency o in equivalent Bangladeshi Taka to the beneficiary.

2. M.T: M.T is an instrument issued by a remitting bank to the paying bank advising in writing
to make payment of certain amount to specific beneficiary.

3. D.D: A demand draft is negotiable instrument issued by drawn on other bank with the
instruction to pay a certain amount to the beneficiary on demand.

4. T.C: It is an instrument issued by a Banks/Company’s payable to the purchaser on

presentation.

5. P.O: A payable order is written under issued by a branch of bank, to pay a certain sum of
money to specific person or bank. It may be said as to be a banker’s cheque as it issued by a bank
and payable by itself.

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4.5 Foreign Outward Remittance and Modes of Outward Remittance:

Outward remittance

The remittance which goes out from our country to another country, in other words the term
“outward Remittance” means sales of foreign exchange in any form and includes not only
remittances by MT, TT, Draft etc. but also sale of Travelers Cheques, Traveler Letters of credit,
Foreign currency notes etc.

 The outward remittance may be as follows:

 Import payment
 Treatment
 Education
 Tours
 Commission/Fees/Service Charges
 Business Development

Modes of foreign outward remittance

The foreign outward remittance can be of following types:

 Foreign Tele-graphic Transfer (FTT)

 Foreign Demand Draft (FDD)
 Foreign outward bill for collection (FOBC)

Foreign Tele-Graphic Transfer

The transfer procedure is same as for local TT. The customer either pays cash or gets his account
debit. Since all the arrangements are through main office. Bank sends credit advice to Head
office, which gives credit to the correspondent bank in that particular bank, ultimately giving
credit to required/designed bank and account. For ITT, Head office account is debited and credit
is given to the beneficiary account, if beneficiary does not have account with BAL, then M-form
is required to fill in stating purpose of remittances.

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Foreign Demand Draft

FDD is also an instrument to transfer fund from one country to another.

The customer can make payments in three modes:

· Debits to foreign currency account

· Foreign currency (cash)
· PKR (M-form is to be filled in)

Foreign outwards bills for collection

When customer deposits foreign cheque/travels cheques to bank Al falah, it becomes the banks
liability to collect it and is than seen to the bank of expected country and payment is made after
confirmation, the foreign bill is sent for correction first and then payment to beneficiary is made.
It is commonly presented through clearing.

4.6 Purpose of Foreign Remittance:

The purpose of Foreign is given below-

Family maintenance
Treatment
 Educational Fees
 Business development
 Marriage Expenses
 Air tickets or visa processing for wage earners
 Hajj performance Expense
 Gift and donation
 Land purchase
 Construction of house building or commercial complex
 Buying of flat or apartment
 Purchase of plot from Real Estate Company
 Sending installment against flat or plot booked at housing fair in London. New York etc.
 Buying of USD dollar investment or premium bonds

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4.7 Importance of Foreign Remittance:

Generally, remittances are monies transferred from one individual to another. International
remittance are transfers of funds by foreign workers-“remitters”-who are living and working in
developed countries typically to their families who are still living in their home countries.
Examples include Middle Easterners living in Europe, Latin Americans in the United States,
Indian Subcontinents in UK, USA, Middle East and Koreans or Filipinos in Japan. Although the
use remittance fund varies from country to country, the recipients of remittances commonly rely
on them for living costs, education, and investments. Remittance have increased significantly
and become a major source of income for developing countries. The topic of remittance has
become a popular one in the international financial community in recent years as both the rate
and volume of remittances have increased exponentially.

Gathering accurate data on international remittances has been very difficult for a number of
reasons, including the fact that a good portion of the transfers is made on formal basis. Some
official statistics do exist, however and they present in 2006, the word bank reported the
remittances grew to approximately 206 billion dollar others put the figure at 298 billion.

These flows have led analysts to conclude that the growth of remittances has exceeded private
capital flows and official development assistance to developing countries. Moreover, remittances
are a reliable source of foreign capital; in the 1990s they were the least volatile source of foreign
exchange.

4.8 Impacts of Foreign Remittance:

Positive Impacts on Development

 One positive aspect of international remittances is that they represent a flow of income
for families in the developing world who might not otherwise receive assistance. Whether
it is because of their location or social status, the majority of remittance receivers are the
invisible poor.

42 | P a g e
  Remittances also help to foster a sense of financial democracy. The availability of
remitted funds may also indirectly help the communities within developing nations where
the money is spent.
 Remittances are also a stable form of external finance, and, unlike other forms of private
capital inflows, remittances remain stable and often increase during times of economic
hardship.
 It is usually held that the amount of money remitted is inversely related to the strength of
the receiver's national economy. That is, remittances increase sharply following economic
crises.
 Remittances, therefore, provide a safety net during sudden economic downturns, financial
crises, and unexpected short-falls.
 The impact of remittances may be even more pronounced in countries experiencing
warfare or unrest.
 Moreover, when displaced refugees come to have financial or political leverage in their
new countries, they may be able to indirectly or directly mount pressure against their
home country in order to promote peace and stability.

Negative Aspects and Potential Drawbacks

 When the immigrants continuously remit funds to their home countries, the potential
exists for the receiving community to become dependent upon those remittances. An
abrupt halt in the flow of remittances in such a case can be devastating.
 Another potential drawback informs the debate as to whether remittance transfers, as a
whole, increase or decrease inequality between the haves and the have-nots.

4.9 Remittance Services in the Banking Sectors:

Among different services rendered by a commercial bank to its customers, remittance facilities
are very important and popular to the customer. Remittance means sending of money from one
place to another. Money order, telegraphic money order through telegraph/post office is the
common method of sending fund. Bank also provides this facility to its customers by means of
receiving money at one branch of the bank and arranging for payment in another branch
within/outside the country. This facility is extended to its customers to enable them to avoid risk

43 | P a g e
arising out if theft, loss etc. A Remittance is an important service provided by banks to customers
as well as non-customers. Since it is not a free service it is a source of income for the bank.

 Parties involve in remittances:

Four parties involved in remittance:

 Remitter
 Remit tee
 Issuing Bank/ Institution
 Paying Bank

Remitter
One who initiates, or requests for a remittance. The remitter comes to the issuing or originating
branch, asks for a remittance to be made, and deposits the money to be remitted. The bank
charges him a commission for this service. He may or may not be the branch’s customer.
Remit tee
A Remit tee is also called the beneficiary, or the payee. The person in whose name the remittance
is made. A remit tee is also the one who receive the payment.
Issuing Bank/ Institution

The bank or institution that sends or affects the remittance, through demand drafts, telegraphic
transfers, or mail transfers.

Paying Bank/ Institution

Paying Bank also knows as the drawer branch. The branch in which the instruments were drawn.
It has to make the payment (usually located in a different city country).

4.10 Mode of Foreign Remittance Services:

Remittance is sent formally through various ways such as demand draft, travelers check,
telegraphic transfer, postal order, direct transfer, Automated Teller Machine etc. Remittance is
money sent from one person to another in any form generally to another country. The Bank
44 | P a g e
provides this facility in various ways. The customer can choose any mode of remittance
depending on the time available for sending the remittance. Given below is the list of the
common remittance options.

Mode of Remittance Normal Time Taken

Instant Transfer Instantaneously.

Online remittance 1 to 5 days depending on the mode of online

remittance chosen.
Speed remittance Within 1 day.
SWIFT 1 to 3 days depending on the location of
beneficiary branch.
Draft / Cashier's Cheque 7 days to 28 days.
International Money Order 7 days to 28 days.

Foreign Currency Cheque 7 days to 28 days.

4.11 Process of Sending & Receiving Foreign Remittance:

 Sender went to an operator from which he/she want to send the money.
 Fill up the application form.
 Deposit the money in that particular countries currency.
 A PIN number will be generated.
 Remittance received by the authorized branch/bank.
 Customer will provide the PIN to the officer.
 Verified the PIN.
 Verified the NID.
 Prepare the voucher.
 Take the signature of the customer.
 Cross check the information.

4.12 Remittance Sending & Receiving Process of Prime Bank Limited:

From the analysis of the bank I found out that following process followed when there a
remittance has occurred.

A. Sending Process

B. Receiving Process

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  Client or Sender: The person who send the money.

 Money Transfer Operator: Sender needs to select an operator from which he/she send
the money. There are so many operators involving in remittance operation such as RIA,
Western Union etc.

 Application for Cash Deposit: Remitter needs to apply for deposit the cash.

 Deposit Foreign Currency: He/she needs to deposit money in the particular countries
currency.

 Passing by Related Officer: Officer related to this operation passing the order of
remittance.

 Generated a PIN: A PIN number will be generated after pass the order.

 Convert Into Local Currency: after completing above things currency will change into
the receiver countries currency.

 Foreign Remittance: Foreign remittance will be received by the receiving country.

 Provide a PIN Number: The receiver will provide the PIN number.

 Verified the PIN: The PIN number need to verify by the officer.

 Verified the Customer ID: Customer will provide a ID & officer need to verified it.

 Prepare the Voucher: Prepare the voucher to pay the customer.

 Cross Checking: Cross the information before paying it to the customer.

 Pay to the Customer/to their Account: If all the documents are OK then pay it to the
customer or send it to customer account.

4.13 Documents of Remittance Work:

Following documents & paper need for remittance work-

 Receiver should have provide a PIN number.

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  Give his/her information.

 Showing his ID’s to the officer.

 Cross match the information & ID’s.

 If all going right then pay to the customer.

4.14 Parties in Remittance Work:

1. Sender: Person who send the money.

2. Operator: Foreign remittance operator.

3. Bank: Authorized bank who will provide the money or pay to the client.

4. Receiver: The person who received the money.

4.15 Foreign Remittance Inflow of Bangladesh:

Foreign remittance is a very important source of much needed foreign exchange in Bangladesh for the
economic development of the country. The amount is very large if we compare to other source from
where the foreign exchange are generated. Though the rate of foreign remittance inflow is ups & sown in
last few years still it is a very big source foreign exchange.

Year Remittance(In Million BDT)

2012-2013 1156460.78
2013-2014 1105823.62
2014-2015 1271342.40
2015-2016 1239885.19
2016-2017 1060375.13
Table: Foreign Remittance inflow of Bangladesh

In above table & graphical representation we can see the remittance inflow of Bangladesh in last
five years. We can see that the inflow of foreign remittance in Bangladesh is not in a very stable
position, in year 2012-2013 it’s in good position but in year 2013-2014 the inflow of foreign
remittance fall down again, in year 2014-2015 the inflow had a great increase, but again in year
2015 to 2017 the inflow of foreign remittance falling down.

47 | P a g e
Growth Rate of Foreign Remittance in BD

Year Growth Rate (In Percentage)

2012-2013 -
2013-2014 -4.38
2014-2015 14.97
2015-2016 -2.47
2016-2017 -14.48

Table: Growth Rate of Foreign Remittance in BD

We can say that the inflow of foreign remittance in year 2013-2014 is -4.38% which indicates
that the inflow of foreign remittance is decreasing. But in year 2014-2015 it was growing to
14.97% which indicates that the inflow of foreign remittance was in good position. But again in
year 2015-2016 and 2016-2017 suddenly it was fall down as 2.47% and 14.48% for various
factors like economic and other international problems.

4.16 Foreign Remittance Inflow of Prime Bank Limited:

Year Foreign Remittance (In Million BDT)

2012-2013 36890
2013-2014 42443
2014-2015 32628
2015-2016 39484
2016-2017 31679

Table: Foreign Remittance inflow of Prime Bank Limited

This is the last five years trend analysis of inward foreign remittance of Prime Bank Limited.
From this graphical representation it can easily identified the inflow of foreign remittance is
increasing from year 2012-2013 to year 2013-2014 but it was decreased in year 2014-2015 and
again it was increase in year 2015-2016. But again in year 2016-2017 it was decreasing
gradually. Because of some economic factors inward remittance is decreasing day by day, the
inflow is not in a stable situation.

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Growth Rate of Foreign Remittance Inflow of Prime Bank Limited

Year Growth Rate (In Percentage)

2012-2013 -
2013-2014 15.05
2014-2015 -23.12
2015-2016 21.01
2016-2017 -19.77
Table: Growth Rate of Foreign Remittance Inflow of Prime Bank Limited

From this growth analysis of bank we see that in the year 2013-2014 the inflow of foreign
remittance were 14.05%, in the year 2014-2015 it decrease 23.12%. Again in year 2015-2016 the
foreign remittance inflow increase 21.01% but in 2016-2017 again the inflow is decreased to
19.77%.Which indicates that the growth rate of foreign remittance inflow of Prime Bank Limited
is in a very volatile situation.

4.17 Foreign Remittance Inflows of Prime Bank Limited, Subid Bazar Branch,
Sylhet:

Year Foreign Remittance Inflows (In Million BDT)

2012-2013 68.75
2013-2014 79.75
2014-2015 120.15
2015-2016 159.46
2016-2017 108.54
Table: Trend Analysis of Five Years Foreign Remittance Inflows of Prime Bank Limited,
Subid Bazar Branch, Sylhet

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From this tabular and graphical representation we can see that the foreign remittance inflows of
Prime Bank Limited, Subid Bazar branch is increasing in year 2012-2013 to 2015-2016 but
suddenly in year 2016-2017 it’s decreasing.

Growth Rate of Foreign Remittance Inflows of Prime Bank Limited, Subidbazar Branch, Sylhet

Year Growth Rate (In Percentage)

2012-2013 -
2013-2014 16.00
2014-2015 50.65
2015-2016 32.71
2016-2017 -46.91
Table: Growth Rate of Foreign Remittance Inflows of Prime Bank Limited, Subidbazar
Branch, Sylhet

From the analysis of branch’s data, we can see that the growth rate of foreign remittance in
subidbazar branch in previous year was good but in 2016 the flow become negative. From year
2012-2013 to 2014-2015 the inflow of foreign remittance in subidbazar branch increased 16.00%
to 50.65% gradually but suddenly in year 2015-2016 inflow of foreign remittance in subidbazar
branch is decreased to 32.71% and it’s become -46.91% in the year 2016-2017.

4.18 Presentation of Foreign Remittance according to Company:

Company Name Inward Yearly Percentage

PBL Exchange 60%

Western Union 25%
RIA Fxonline 9%
Placid Express 5%
Other’s 10%

Prime Bank Limited, Shubid Bazar Branch Provide many company’s remittance, in the above
table shows that most common inward remittance companies and their average percentage.
The above chart represents the yearly most inward remittance companies. In the chart horizontal
axis represents the company name and vertical axis represents the percentage of inward
remittance. In the chart it is shown that Western union and PBL Exchange company send more
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money than others company. And these companies based on UK and Middle East country like
Saudi Arabia, Kuwait use western union.

4.19 Top Remittance Earning Counties:

Highest remittance earning countries position all over the world in 2015 is given below:

Top 10 Countries 2017 (Billion USD)

India 65
China 62
Philippines 32
Mexico 30
Pakistan 22
Nigeria 19
Egypt 18
Bangladesh 13
Vietnam 12
Ukraine 09
As per table we can see that Bangladesh ranked eight among top remittance receiving countries
& three in South Asian countries behind India & Pakistan who ranked first & fifth respectively
among top remittance receiving countries in the year 2017.

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 Chapter: 05

Task Completed During Internship Program

Task Completed During Internship Program

5.1 Definition of Internship:

Internship is a process to achieve practical knowledge about some theoretical lesson. Its most
important aspect is to acquire knowledge about the real position. As a practical subject,
Management needs some practical knowledge. Management of Business studies includes an internship
programs for its Bachelor of Business Administration (BBA) programs.

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According to Poling Efro (1977).

“Social Research is such a scientific effort which tries to discover new information through some
rational and organized system, which tries to examine the reliability of former information, and
which tries to make to new theories, systems and conceptions to understand and Explain a human attitude”.

Practical work is achieved to fulfill our knowledge. In practical work, we can realize some
problems and possible determinants of their solution.

5.2 Importance of Internship:

Goods and services are produced for the purpose of using in daily life. Similarly, Theoretical
knowledge is acquired for the purpose of applying in the practical life. The propensity of
application of theoretical knowledge in practical life successfully internship program is
absolutely necessary because theoretical knowledge will be fruitful if it can be applied in the
practical life. When we can implement the theoretical knowledge practically, we can say the
knowledge is successful; otherwise the achieved knowledge is valueless. Internship program is
the way of implementing the theoretical knowledge practically. However, the importance of
internship may be described in the following ways:

 As internship program is the practical implementation of the theoretical knowledge, it helps

to increase the quality and effectiveness of the trainer.
 We can only know the problems of an organization in directly through theoretical
knowledge, but we can know the nature of the problems, problems of the various departments,
methods of solving the problems through the practical training. So it is very important to
identify the problems and eradicate the problems.
 The trend of all activities is an organization becomes growing through practical training.
 To Innovate new technique of management.
 To realize the present condition of the institution.
 To make policy for development of the organization.
 It mentally prepares for their professions.

53 | P a g e
  Internship program acts as a bridge between theoretical knowledge and managerial
practice. Internship acts as a guideline during the service period.
 By internship program students can understand limitations, shortages and practicability of
their knowledge and thereby can take necessary action for removing these limitation and
shortages.

5.3 Internship experience:

This report has been done as per the requirement for successful completion of the Internship
program. Exposure to the business world and acquiring practical work experience was the
primary objective of this report. I was attached with National Bank Ltd at its Shibgonj Branch
for my internship. Through internship I got the basic idea about the corporate culture and
practices. It was a great experience. 01 May 2017 to 31 July 2017 these three month journey of
my internship with National Bank Limited was very delightful. I enjoyed a lot. All the stuffs of
the bank are very friendly and helpful. I was very lucky to get chance to experience in different
departments within these three months. Those are described below:

5.3.1 Front Desk:

The first department I worked was front desk. I was there from 1 st May to 24th May & May in
charge was Dilruba Akter (Assistant Officer) is also there to help me to understand my job. I
found Front Desk a little difficult. My job was to attain and help the clients directly. I had to help
clients by providing information, helping to fill up Account opening, DPS opening, MSS
opening, DBDS opening, SBDS opening, FDR opening, MBS opening, SSS opening forms etc.

5.3.2 Clearing:

The 2nd department I worked was clearing. May 25th to June 20 I was also appointed in clearing
department. My in charge was Salman Ahmed (Assistant Officer), and Raqibul Hassan (Officer)
in clearing department cheque from other banks transaction happens. My job was to entry those
transactions in a register and at the end of the day sum up the amount and check with the
automated amount from computer. The amount must be same.

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5.3.3 Cash Department:

I was in cash department from 21st June to 2nd July. My in charge was Salman Mahmud (Officer).
There were also some other stuff working in cash are Polash Kanti Paul (Assistant Officer), and
Salman Ahmed (Cash In Charge).My duty in cash was to entry cheque and deposits slips amount
and number in registers and give the serial number to the cheque and deposit slip according the
register entry number. There were two register one is to entry the cheque number and amount.
Another register is for entering deposit slips number. Cheques are entered in debit register
because with cheque bank gives money to customer which is debit and deposit slips are entered
in credit register because with using deposit slip customer deposit money to bank which is
earning for bank and that is why it is credited. At the end of the day I had to sum up register
individually and check them with automated amount get through the computer. The amount must
be some other wise it will be revised thoroughly and correct the mistake. Another job I did there
is sorting the cheque according the prefix of the account number. I had to also sort out the
Demand Payable Slip (DPS) according their type. There are three types of DPS; 3yrs, 5yrs and 8
yrs. 1 to 10 of every month are considered as DPS hour. Everyone becomes so busy. I got two
days of DPS hour and understand what actually happens. Those days I had to enter lots of
cheques, Deposit slips and sort a huge amount of DPS.I also entry the IPO Share items. I work
this in PC.

5.3.4 Accounts Department:

Accounts Department is under General banking. 3rd July to 20th July, I worked in accounts.
Within that period of time my in charge were changed two times because of their transfer. So I
get the chance to work with two in charge. In accounts first I got Zoha Afsana (Senior Officer),
she was also my onsite supervisor. Dilruba Akter (Assistant Officer) was my in charge. My main
job in accounts is sorting the voucher. After voucher sorting me had to attach them with related
supplementary. Voucher is actually proved of the transaction. There are various types of voucher
and they are categorized by different number. Which I had to separate and sort group wise.
Supplementary is the automated list of all transactions. Each of the transaction has related
voucher. My job was to attach them according the number and check the amount of transaction.

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In voucher and supplementary the amount will be same. Otherwise there must be some problem
which will be identified and revised. After attaching next job was balancing. Balancing means
doing sum and ensuring that debit and credit is equal. Next step is to make a cover page which is
a brown color hard paper. Then prepare it for binding in an organized format. It is prepared for
binding and I did another job was entry the amount date wise in a register.

5.3.5 Foreign Remittance:

The 5th department I worked was Foreign Remittance. July 23 rd to July 31st I was also appointed
in Remittance department. My in charge was Shaila Monower ( Senior Officer), and Raqibul
Hassan (Officer) in Remittance department Foreign Remittance from other Exchange Service
transaction happens. My job was to entry those transactions in a register and at the end of the day
sum up the Pin Number and check with the automated amount from computer. The amount must
be various.

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 Chapter: 06

Knowledge Gained During BBA Program to

Accomplish Each Task

Knowledge Gained During BBA Program to Accomplish Each

Task

6.1 Knowledge Gained During BBA Program:

As a student of business department; I learned many things from my BBA program; gained a
verity of knowledge through the class lectures; text book; assignment; presentation; viva; exams

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etc. while conducting my internship in Social Islami Bank Limited some of this knowledge was
very essential for practical professional life.

6.2 Principles of Accounting:

I completed the course named Principles of Accounting, which is my major subject. In

accounting course, I broadly understood the accounting system and procedure of any
organization. When I joining in a company, these course help me a lot. From this course I have
understand the basic terms of accounting such as debit, credit, journal, ledger, trail balance,
double entry system, financial statements, valuation and allocation etc, I found various types of
statement which was basically I learned from my academic course.

6.3 Principles of Management:

In this course I learned about different management principles (e.g. planning; organizing;
leading; controlling). Having a firm grasp of the principles helped me to analyze the issues
managers face maintaining the chain of command; evaluate manager’s responses and determine
alternative courses of action.

6.4 Banking and Insurance:

From the course “Banking and Insurance”; I learned about various types of account; such as
savings deposit account; fixed deposit account; current deposit account etc. when I joined in
internship and worked in Account Opening section; I applied my academic knowledge acquired
from BBA program. I also knew about the loan and advance from the course “Banking and
Insurance.”

6.5 Principle of Economics:

The theory of supply and demand is an organizing principle for explaining how prices coordinate
the amounts produced and consumed. The law of demand states that in general price and quantity
demanded in a given market is inversely related. That is the higher the price of a product the less
of it people would be prepared to buy of it (other things unchanged). As the prices of a

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commodity falls; consumers move toward it from relatively more expensive goods (the substitute
effect).

6.6 Organizational Behavior:

This course helped me on developing an understanding of practical implications of various

theories of human behavior at work. Specific things I learned include leadership; motivation;
teamwork; different personality issues etc. This course helped me in identifying the various
personality traits through observation and dealing in a proper and appropriate manner with them
work as a team member; self development etc.

6.7 Marketing:

In BBA program; I have completed two courses named “Principles of Marketing” &
“Marketing Management”. These two courses teach me how to behave with customer/client
that I performed in my internship. I provided necessary information to the customer/client
according to their query via phone.

6.8 Principles of Finance:

Principles of Finance are most important subject for BBA student. I learned from this subject
annuity, debt ratio, find out the ratios etc.

6.9 Business Communication:

Business Communication is a term that can be defined as the contact between the people within
the organization for the intention of carrying out the business activities. It is used to promote a
product, service or organization as well as pass on information within a business or work as an
official statement from a company. Business communication is nothing but the communication
between the people within the organization for carrying out the business activities. From this
course, I have learned the various types of applications, how to prepare different types of reports,

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memos, letters, agenda, etc. Therefore, this course helped me to communicate with different type
of people in the organizational and helped in writing application for internship.

6.10 Business Research:

This course helped me much in preparing this report. I learned many factors of preparing a report
from this course like selecting the appropriate courses for data collection, for the purpose,
collecting primary and secondary data, taking interviews, the structure of different kinds of
report etc. As we conducted a practical research work in this course, so I got huge knowledge
about writing a report. Therefore, this course has been too helpful for me to writing a report.

6.11 Other Courses:

I also gained knowledge from the course Introduction to Business, English Language 1 & 2,
which is very helpful to learned English. Business Math 1 & 2 from the subject that we have to
study well. In every situation, we need math. This subject is necessary for all.

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 Chapter-07
Findings, Recommendations
&
Conclusion

Finding, Recommendations Conclusion

7.1 Findings:

The project work has enriched my knowledge a lot. To have a clear picture about the foreign
remittance activities, personal observation and conversation with the employees of the
organization were conducted. While working, I always tried to keep my eyes and ears in
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knowledge as best as possible about the dealing of the officials with the clients. My novice
observation found the finding:
 Exchange rate is reasonable in Prime Bank Limited than other commercial bank.

 When customers faces a problem the employees of Prime Bank Limited Subid Bazar
branch shows a sincere interest to solve it.

 The employees have a better knowledge about the entire services offered to the customer.

 PBL always gives individual attention to its clients.

 Employees of Prime Bank Limited Subid Bazar branch are very trustful and sincere to
their clients.

 A strong position in international Banking a great link with various foreign exchange
companies makes the process of collecting the foreign remittance easier to this bank.

 Remittance increases the earning of Prime Bank Limited Subid Bazar branch.

Some negative things I found that is-

 Prime Bank Limited, Subid Bazar Branch earned its highest remittance in 2015-2016. It
earned 159.46 million. It observes that due to declining pound rate and low earning of
nonresidential there was fall in the earning of remittance in year 2016-2017.

 Modern Technology equipment such computer is not sufficient in foreign remittance

department. Sometimes officers are facing network problem so that they couldn’t serve
the customer that time.

 Sometimes client face some difficulties in filling up the application form and
documentation while collecting money from the branch in PBL remittance division.

 There is no desk like handling customer complains.

7.2 Recommendations:
The bank management needs to have a clear operational efficiency and must through analyze the
scopes for further development in order to retain and attract new customers towards any

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particular branch of a bank. Therefore, it is vital for the commercial banks to closely monitor
their performance level, which comprises the functional units, that provides services to its
clients. To make better position in the industry banks need to expand some activities and should
give emphasis on some field and need to introduce new and diversified financial products to
provide wider option to customers.
Without having an effective customer base, it becomes difficult for any bank to compete and
sustain in the competitive market for the banking services. Before drawing the end I would like
to offer the following suggestions for bringing improvements at Prime Bank Limited:
Based on the finding some progression can be recommended in future. The recommendations are
given below:

 Prime Bank Limited should develop technological Skills of its employees. It should
establish its own networking system between its branches so that they can exchange their
information faster and efficiently.
 Prime Bank Limited should locate their branches in the important places of the rural area
so that most people will know about the Foreign Remittance Service of PBL.

 Fund sufficiency and server correctness is required while providing remittance services to
the clients.

 Branch should intensify its quality of client service. Customer services must be made
dynamic and prompt.
 In collecting remittance, documentation must be easier for helping the clients for
collecting money.

 The software in General Banking as well as foreign remittance should be upgrade.

 Bank may create a department of telephone call services from where customers can get
the necessary information about foreign remittance.

 Government and the different official channels should make them concern that channels
are more easy and safe to send money from abroad.

 It is suggested that the bank can enrich its banking services with more resources and IT
specialist.

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  It is essential for Prime Bank Limited to arrange more training and workshop programs
regarding foreign remittance Activities.

 The bank should give more attention on promotion and campaign activities.
 The Human Resource Department should look into the matter that the branches are well
staffed with the right people in the right position.
 The bank should adopt more technological devices to provide better services.

7.3 Conclusion:

After a prolonged observation in my three months long internship in Subid Bazar Branch of
Prime Bank Limited, I am very pleased to prepare this report. In this report, in this period, I have
tried to acquire the skills of customer relation & also tried to adapt the corporate culture, which is
very much different from academic courses of BBA. In this report, I have attempted to cover one
of the key areas of banking namely foreign remittance process in PBL contribute towards a lot in
the economic development of the country by the efficient distribution network of remittance. It is
quite satisfying to the customer. The banking service of PBL is being automated day by day &
PBL is preferred by customers for its service oriented business policy. I tried my best to
contribute to the branch office despite my above discuss limitations. The friendly work
environment provided at this particular branch of PBL has inspired me a lot to work even harder.

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 References

 Annual Report:

 Annual report of Prime Bank Limited.

 Report of Prime Bank Limited remittance department.

 Statement of foreign remittance of Prime Bank Limited.

 Websites:

 www.pblbd.com
 http://en.wikipedia.org/wiki/Remittance_to_Bangladesh

 http://internships.com/student/resources/basics
 http://en.wikipedia .org/wiki/Internship
 http://bangladesh-bank.org/aboutus/index.php

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