Internship Report

ON
“Foreign Exchange Operation of EXIM Bank Limited, Banani Branch”.

Supervised By:

Roushanara Islam
Assistant Professor
Department of Finance
Jagannath University

Submitted by:

H.M.Mahmud
ID: M-18150203757
Batch: 15th (B)
Major: Finance
Program: EMBA
Department of Finance
Jagannath University

Masters of Business Administration

Jagannath University

Date of Submission:
 Letter of Transmittal

Dated:
Roushanara Islam
Assistant Professor
Department of Finance
Jagannath University

Subject: Submission of Internship report on “Foreign Exchange Operation of EXIM Bank

Limited, Banani Branch”.

Dear Madam,
This a great pleasure to submit my internship report on Analysis of Foreign Exchange
Operation of EXIM Bank Ltd at Banani Branch. It was a golden opportunity for me to gain
knowledge and practical experiences regarding the procedures and functions while working at
the Banani Branch of EXIM Bank Ltd. So, I firmly believe that, these knowledge and
experiences will help me in my professional life.

I have tried hard to fulfill your expectations by sharing details of each and every topic and
avoiding unnecessary amplification of the topics.

Therefore, I will be very much glad to hear from you for further clarification.
Sincerely yours,

……………………
H.M.Mahmud
ID: M-18150203757
Batch: 15th (B)
Major: Finance
Program: EMBA
Department of Finance
Jagannath University
 Student Declaration

I would like to declare with utmost faith and integrity that the Internship Report on “Foreign
Exchange Operation of EXIM Bank Limited, Banani Branch”. Contains the result of my
own research works. It was prepared by using primary and secondary data, pursued under the
supervisor of Roushanara Islam, Assistant Professor, Department of Finance, Jagannath
University.

I further confirm that the report is original and no part or whole part of the report has been
submitted to, in any form, any University or institution for any degree or any other purpose.

..................................
H.M.Mahmud
ID: M-18150203757
Batch: 15th (B)
Major: Finance
Program: EMBA
Department of Finance
Jagannath University
 Certificate of Supervisor

This is certified that, H.M.Mahmud, ID: M-18150203757, Batch: 15th (B), Major: Finance,
Program: EMBA, Department of Finance, Jagannath University. He has completed an
internship program at EXIM BANK LIMITED under my supervision which is fulfillment of
partial requirement of obtaining EMBA Degree.

I wish his success in all his future endeavors.

…………………………
Roushanara Islam
Assistant Professor
Department of Finance
Jagannath University
 Acknowledgement

My acknowledgement begins with thanking my academic Roushanara Islam, Assistant Professor,

Department of Finance, Jagannath University who has provided me suggestions for making this
Final Internship Report. I like to thank sir for his generous cooperation and supervision that made
me really confident about the desired outcome of my internship report.

I would like to show my warm hearted gratitude to the whole EXIM Bank Limited. Which has
provided me with great deal of information’s, adequate data and finally cooperated me for the
accomplishment of the report successfully. I would like to thank each staffs of the different
Department. I am especially grateful to Md. Badsha Mia, (SAVP & Relationship Manager) for
invaluable support and direction that lead me to the successful completion of my internship report.
I have done my whole internship period under him and really grateful to him for a big time for
helping me in my each and every step of work at office. I am also grateful to Rahul Amin, Sr.
Assistant vice President & Operation Manager, Tanvir Mohammad Jashim ,Assistant Vice
President, Md Masud Rana, Principal Officer, Ms. Nusrat Jahan Laboni, Senior officer &
Munsurul Islam Foreign Exchange Department, Sumiya Jannat, Junior Officer General Banking
Department for his valuable suggestions that make me confident to walk my desire way to
construct my report.

I am very much thankful to EXIM Bank Limited and its management specially the employees of
the entire Department for their cordial support to prepare this difficult study with important
information and data. Without them it would not possible for me to complete this difficult task. I
got all necessary guidelines, cooperation and advice from them to complete this complicated task
 Executive Summary
The internship is designed to bridge the gap between the theoretical Knowledge and real life
experience. It is designed to have a practical experience while passing through the theoretical
understanding. The report is combination of Three months of internship program with EXIM
Bank Ltd, Banani Branch.
This report has been segmented into five different chapters. The first chapter contains
Introduction, An Overview of the Banking sector, Origin, Objective, Methodology, Scope,
limitations of the Report.
At present in Bangladesh private commercial bank are thirty seven, state owned banks are nine.
One of the private commercial Bank is EXIM Bank Ltd where I done internee. EXIM Bank a
third generation progressive Shariah based private commercial Bank having 109 Branches all over
the country with excellent workings environment, corporate culture and steady growth in its
business.
Foreign Exchange Operation of EXIM Bank, Contains Import, Export and Foreign remittance
department contains inward and outward remittance. From the beginning of the report, the entire
foreign trading activities relating to Export and Import has been described. All the clauses and
steps are clearly mention in his report. The details about Import Registration Certificate (IRC),
Function of Import section, Export Section, Export Registration Certificate (ERC), Function of
Export Section, Remittance, Import Performance, Export Performance, Foreign Remittance,
Within these chapters details about the functioning and practices of EXIM Bank has been
described and how the bank assist to exporter through financing.
Though the Balance of payment of Bangladesh is negative but both export and import are
increasing year to year. Import business increase by 0.80% in 2019 compare to 2018
Import business increase by 0.80% in 2019 compare to 2018 by handling 43,418 number of
import letter of credit. In year 2019, EXIM Bank received BDT 4026.62 million (equivalent USD
0.05 billion) as wage earners remittance by handling 81246 number of transaction. There was
6.90% growth of inward remittance in the year 2019 compare to 2018. Export, Import and
Remittance all these are increase compare than the previous year.

The small number of exporter and importer is not enough to achieve the goal. So EXIM Bank
Limited should offer more facilities to attract their clients. EXIM Bank Limited should take
necessary step to spread the import business procedure to all divisions and make the import
business easier and comfortable.
 Table of Contents

Particulars Page No:

Letter of Transmittal
Acknowledgement
Supervisor certificate
Executive summary
Chapter-01: Introduction
1.1 Introduction
1.2 An overview of Report
1.3 Origin of the Report
1.4 Objective of the Report
1.5 Methodology of the report
1.6 Scope of the Report
1.7 Limitations of the Report
Chapter-02: Overview of the Organizations
2.1 Overview of the EXIM Bank
2.2 Historical Background of the EXIM Bank
2.3 Corporate Information (EXIM BANK):
2.4 Objective of the EXIM Bank
2.5 Special Products and Services of EXIM Bank
2.6 Organization Vision
2.7 Organization Mission
2.8 SWIFT Service:
2.9 SWIFT Network
2.8 Organism of Head Office
2.10 Organizational structure in EXIM Bank:
2.11 Organogram of EXIM Bank
Chapter-032: Foreign Exchange Operation of EXIM Bank Limited
3.1 Introduction:
3.2 Foreign Exchange Regulation Act, 1947
3.3 Letter of Credit (LC):
3.4 Types of Letter Of Credit:
3.5 The process of opening L/C:
3.7 Document require for Opening L/C:
3.8 Import Registration Certificate (IRC)
3.9 Function of Import section:
3.10 Export Section:
3.11 Export Registration Certificate (ERC)
3.12 Remittance:
3.13 Inward Remittances:
3.15 Foreign Outward Remittance
Chapter-04: Analysis Performance of Foreign Exchange Department
4.1 Remittance:
4.2 Export business:
4.3 Import business:
4.4 Overall Foreign Exchange business:
Chapter-05: Findings of the report, Recommendations, Conclusion:
5.1 Findings of the report:
5.2 Recommendations:
5.3 Conclusion:
References
Chapter-01
Introduction
1.1 Introduction
Bank is very old institution that is contributing toward the Development of any economy and
is treated as an important service industry in the modern world. Economic history shows that
development has started everywhere with the banking system and its contribution towards
financial development of a country is the highest in the initial stage. Modern banks play an
important part in promoting economic development of a country. Bank provides necessary
funds for executing various programs in the process of economic development. They collect
savings from large masses of people scattered throughout the country, which in the absence of
banks would have remained ideal and unproductive. These scattered amounts are collected,
pooled together and made available to commerce and industry for meeting the financial
requirements.

Economy of Bangladesh is in the group of world’s most underdeveloped economies. One of

the reasons behind this may be its underdeveloped banking system. Government as well as
different international organizations have also identified that underdeveloped banking system
causes some obstacles to the process of economic development. So they have highly
recommended for reforming financial sector. Since 1990, Bangladesh Government has taken a
lot of reform activities to ensure high economic growth. In 1996, World Bank published
“Bangladesh: Agenda for Action” in which it has suggested lots of recommendations for
economic development of our country. These recommendations include special presentation
for reforming banking sector.

Bank plays a vital role in the economy by providing means of payment and in mobilizing
resources. Bank is the most important financial institution in the economy. The economic
development of a country depends on the development of banking sector. Today’s modern
banks are not only providing traditional banking but also expanding the many financial
services. In today’s world the life of the people directly or indirectly are within the arena of
banking whether conventional or Islamic banking. Although Islamic banking is not a newer
concept in Bangladesh as it has started its operation since 1983, very few people are aware
about its operation. But things are changing. Islamic Banking is also getting popularity in the
country.
Internship program is essential for every student, especially for the students of Business
Administration, which helps them to know the real life situation. For this reason a student
takes the internship program at the last stage of the bachelor’s degree, to launch a career with
some practical experience. Against this backdrop, I have completed my three months
internship in the EXIM Bank Ltd., Banani Branch, Dhaka which has helped me a lot to
understand the real life situation of banking business.

1.2 An Overview of the Banking Sector

After Independence of Bangladesh the Banking sector was restructured as a fall out of war of
liberation. Banking grew primarily in the public sector with main emphasis development
needs of the war-torn economy with gradual liberalization in subsequent years. It was
increasingly felt that Banks should be allowed in the private sector. In the 80’s for the first
time a number of
Banks in the private sector was allowed. Subsequently in the mid 90’s some more Banks in
private sector commenced operations. Finally 1999 3rd Generation of private sector Bank was
given permission to operate. As a result while up to 80’s public sector Banks dominated
financial sector, Banks in the private sector were given increased responsibility with the
passage of time. The share of deposits of Nationalized Commercial Banks (NCBs) in total
deposits, which stood at 89% in 1980 gradually, declined over the years to reach the level of
55% in 2000. Simultaneously, Private Commercial Banks (PCBs), which were responsible for
only 18% of deposits in 1985, this share increased gradually over the years to constitute about
one third of the total deposits of the country by the end of the millennium. But market share of
deposits of Foreign Commercial Banks (FCBs) did not change much during the last twenty
years. In the early 80’s, the share was 6% and it stood at 7% by the end of the century with a
relatively small branch network in the country.
Likewise share of NCBs in total advances of the country declined gradually from 80% in
1980 to reach the level of 47% by the end of year 2000. At the same time, share in advances
of the PCBs increased from 14% to 31% over the same period.
A break-up of deposits and advances indicates that share of rural branches contribute higher
share in advances. Rural deposits constitute slightly more than one-fifth of the total deposits
of the Banks. On the other hand, rural advances constitute around 17% of the total advances
of the Banking sector.

1.3 Origin of the Report

As a prerequisite for the EMBA at Jagannath University, I was required to complete an
internship in a suitable business organization and submit a report on my findings. I had been
selected to work as an Internee in Export Import Bank of Bangladesh Limited, Elephant Road
Branch for a period of 3 months from 1 st July, 2020 to 30th October, 2020. Md. Nurul Amin,
Executive Vice President, HR division, Export Import Bank of Bangladesh Limited appointed
me as an Internee. After discussion and getting consent, I started to work on the internship
titled “Foreign Exchange Operation of EXIM Bank”.

Without practical exposure, theory can never be fruitful. For this reason, EMBA program has
been designed in such a way that a student can get practical knowledge. A student needs to go
for practical orientation in some organization where his/her duty is to bear all the some things
from operations and activities of that branch. This internship report is generated under the
supervision of Roushanara Islam, Assistant Professor, Department of Finance, Jagannath
University.

1.4 Objective of the Report

The main objective of the report will be to provide an overview of the foreign exchange
operations of EXIM Bank Limited at Banani Branch with fulfilling the requirement of EMBA
program. However, the objective behind this study is something broader. Objectives of the
report are summarized in the following manner-
1. To provide an overview of EXIM Bank Limited.
2. To analyze Export- Import procedures of EXIM Bank Limited.
3. To identify the back to back letter of credit of EXIM Bank Limited.
4. To analyze the annual performances of export and import business of EXIM Bank
Limited.
 5. To evaluate the foreign inward and outward remittance of EXIM Bank Limited.

1.5 Methodology of the Study

The study requires a systematic procedure from the selection of the topic to final report
preparation. To perform the study, data sources are to be identified and collected, they are to
classified, analyzed, and presented in a systematic manner. This overall process of
methodology is given in the form of flowchart that has been followed in the study:

Selection of the Topic

Sources of Data
Classification, Analysis, Interpretation and Presentation of Data
Findings of the study
Final Report Preparation

a. Selection of the Topic: I selected the topic of my supervisor Md. Shahinur Sobhan
approved the topic. After having selecting the topic, I discussed with EXIM Bank
Branch on various aspects of general banking activities to prepare a well-organized
internship Report.
b. Sources of Data: information was collected to finish this report both from primary and
secondary sources.

1. Primary sources
 Face-to-face conversation with the respective officer of the branch.
 Face-to-face conversation with clients.
 Working in the customer service desk.

2. Secondary sources
 Annual reports of the EXIM Bank.
 Periodical published by Bangladesh Bank.
 Relevant file study as provided by the officers concerned.
 Website of Exim Bank
 Website of Exim Bank
 1. Classification, analysis, interpretation and presentation of data: To classify,
analyze, interpret and presentation of data, some arithmetic and graphical tools are
used to understand them clearly.
2. Findings of the study: In this stage, problems of the study are pointed out they are
shown under concerned heads. Recommendation are suggested thereafter to
overcome the problems.
Final report preparation: On the basis of the suggestion of our honorable Supervisor, some
deductions and additions are made and final report is prepared thereafter, As an internship
report it is considered as a long formal report, so the structure of a long formal report is
followed.

1.6 Scope of the Report

As I was sent to EXIM Bank Limited, Elephant Road Branch, the scope of the study is only
limited to this branch. The report covers details about EXIM Bank Limited (especially foreign
exchange operation)

1.7 Limitations of the Report

The time frame, 3 months, is insufficient to know all activities of the branch and prepare the
report.
1. It was very difficult to collect the information from various personnel for their job
constraint.
2. As some of the fields of banking are still not covered by our courses, there was
difficulty in understanding some activities.
3. Another limitation of this report is Bank’s policy of not disclosing some data and
information for confidential reason, which could be very much useful. Because of the
limitation of information,
4. Some assumptions were made. So there may be some personal mistake in the report.
Omissions and error may be there due to lack of my prior experience in preparing a
professional report like this one;
5. Nevertheless, I have tried utmost to avoid mistakes
 Chapter-02
Overview of the Organizations
2.1 Overview of the EXIM Bank
Ltd is the name implies a newly formed commercial Bank but is the 1st” of its kind in
Bangladesh. It has been incorporated in Dhaka, EX1M Bank as a public limited company and its
Head Office of the Bank is located at Symphony, Plot # SE (F) 9,Road #142, Gulshan Avenue,
Dhaka-1212, Bangladesh. In the world of consumerism the business organization of the world
strive for the consumers satisfaction as a number one business strategy whatever may be the
product of the organization, either service or non-service. Service is the product of Bank. There is
a saying that customer service starts rights right from the stairs of the Bank building. The guard at
the door is first person represents of the Bank, receives a customer with wishes in smiling face.

2.2 Historical Background of the EXIM Bank

EXIM Bank Ltd. was incorporated under the Companies Act 1994, on the 2nd June 1999.
EXIM Bank Ltd. believes in togetherness with its customers, in its march on the road to
growth and progress with service. As a commercial Bank we will do all traditional Banking,
business including introduction of a wide range of savings and credit products, retail Banking
and ancillary services with the support of modem technology and professional skills.

 The Export Import Bank of Bangladesh Ltd. commenced formal commercial Banking
operatic from 3rd August 1999 with the permission of Bangladesh Bank. The sponsors
of the Bank are leading business personalities and reputed industrialists.
 The Bank has a sound capital base; its Authorized Capital is Tk. 1000.00 Million
while its Initial Paid up Capital is Tk. 225.00 Million subscribed by the sponsors. To
solidify its capital by further the paid up capital will rise to Tk. 450.00 Million within
a reasonable period by pub offering of shares of the Company. The Bank will be
immensely benefited further more from the able leadership of the Chairman and the
valuable advice and guidance the advisor.
 Originally the name of the Bank was BEXIM Bank of Bangladesh Ltd. Later the
management BEXIM Bank of Bangladesh Ltd. changes the name of the Bank to
EXIM Bank Ltd. because the case lodged by BEXIMCO Group of Industries.
 The Board of Directors wants to carry out in the management all of this service
industry’s administration and credit portfolio independent without any undue influence
 from outside. The board will formulate policy and give policy directives to the
Management.

Transparency and accountability will be strictly ensured at all levels of the Bank. The Bank
will operate with integrity, competence and farsightedness abiding by all principles and
provisions laid down the Bank Company Act, 1991, the guidelines of Bangladesh bank.
Considering the inherent desire of the religious Muslims of Bangladesh, EXIM Bank Ltd. has
been decided to convert the entire conventional system of the Bank into Islamic Banking with
effect from 1st July, 2004.

2.3 Corporate Information (EXIM BANK):

(Information as per last Annual Report 2019)
Name of the bank : EXIM Bank of Bangladesh Limited
Status : Private Limited Company
Date of Incorporation : 2nd June, 1999
Inauguration of the first branch : 3rd August, 1999
Authorized Capital : Tk. 20,000.00 Million
Paid-up-capital : Tk 10,514.86 Million
Investment (General) : 118,219.99
Deposits : 140,369.66
Number of Shareholders : 139,482
Chairman : Mr. Md. Nazrul Islam Mazumder.
Managing Director : Dr. Mohammad Haider Ali Miah
Directors : 15
Number of Branches : 113 (Including SME/Agriculture)
Number of Employees : 1,919
Head Office : SYMPHONY, Plot No.SE (F)-9, Road No-142
Gulshan Avenue, Dhaka-1212, Bangladesh
Credit Rating : ‘A+‘(Adequate Safety)
2.4 Objective of the EXIM Bank
Bangladesh is now an integral part of global market. As such there is an urgent requirement
for Bangladesh to place the traditional Banking practices in harness with the global trades of a
free market economy by following international Banking customs, practices and standards.
Today clients of a Bank in Bangladesh are exposed as well as international markets. They
have to stay update with their practice and standards to meet the demands of achieving
harmony in the high standards of a free economy. Hence, by getting into both corporate and
retail Banking and rapid innovation and networking the Bank believes that it can accomplish
its goals.

The core objectives are:-

 To carry on, Transact, undertake and conduct the business of Banking in all its
branches and to transact and do all matters and things incidental there to in
Bangladesh and abroad.
 To receive, borrow or raise money on deposits, loan or otherwise, upon such terms as
the Company may approve and to hive guarantees and indemnities in respect of all
debts and contracts.
 To establish welfare oriented Banking systems
 To play a vital role in human development and employment generation.
 To invest money in such manner as may from time to time be thought proper.
 To carry on the business of buying and selling bullion, gold and other valuable assets.

2.5 Special Products and Services of EXIM Bank

Export Import Bank of Bangladesh Limited launched several financial products and services
since its inception. A them are Money Grower Monthly Saving Scheme, Steady Money
Scheme, Super Savings Scheme, Multiplus Savings Scheme. All of these have received wide
acceptance among the people.

 Mudaraba Money Grower Monthly Savings Scheme

The prime objective of this Scheme is to encourage people to build up a habit of saving. In
this Scheme one can save a fixed amount of money every month and receive substantial lump
sum of money after five, eight, ten or twelve years. Monthly installment rate is Tk. 500/-,
1,000/-, 2,000/- or 5,000/-
 Mudaraba Steady Money Scheme
Monthly Income Scheme: Under this Scheme, customer has to deposit a fixed amount of
money for five years and in return he will receive benefits on monthly basis. Benefits start
right from the first month of opening an account under the Scheme and will continue up to
five years when the depositor will get refund of his deposit. This scheme is an investment for
a steady return.
 Mudaraba Super Savings Scheme
Super Saving Scheme offers a small depositor to invest his fund (minimum 10.000/-) and fund
will be double in 6 (six) years period. This scheme will secure the future of the investment
with ease.
 Mudaraba Multiples Savings Scheme
Savings helps to build up capital and capital is the prime source of business investment in a
country. Investment takes the country towards industrialization, which eventually creates
wealth. That is why savings is treated as the very foundation of development. To create more
awareness and motivate people to save, EXIM Bank offers Multiplus Savings Scheme. Any
individual, company, educational institution, government organization,

Mudaraba Money Grower Monthly Savings Scheme (MSS):

Premature Encashment
 In case of premature encashment before 1 year no profit shall be paid.

 In case of premature encashment after 1 year but before maturity profit shall be paid at
savings rate.

Loan Advantage
 After three years of savings in this scheme the depositor (if an adult) is eligible for a loan
up to 80% of his deposited amount. In that case, interest rates on the loan will be
applicable as per prevailing rate at that time.
Mudaraba Steady Money Scheme (MIS):
Premature Encashment
 In case of premature encashment before 1 year no profit shall be paid.
 In case of premature encashment after 1 year but before maturity profit shall be paid at
savings rate.

Loan Advantage
 A depositor can avail loan up to 80% of the deposit amount under this scheme. In this
case, interest will be charged against the loan as per Bank’s prevailing rate. During the
tenure of the loan, the Monthly Income will be credited to the loan account until
liquidation of the loan amount inclusive of interest.

Mudaraba Super Savings Scheme (MSSS):

Premature Encashment
 In case of premature encashment before 1 year no profit shall be paid.
 In case of premature encashment after 1 year but before 3 years profit shall be paid at
Savings Rate plus 1%.
 In case of premature encashment after 3 years but before maturity profit shall be paid at
Savings Rate plus 1.5%.

Loan Advantage
 A depositor can avail loan up to 80% of the deposit amount under this scheme. In this
case, interest will be charged against the loan as per Bank’s prevailing rate.

Mudaraba Multiplus Savings Scheme (MPS):

Premature Encashment
 In case of premature encashment before 1 year no profit shall be paid.
 In case of premature encashment after 1 year but before 3 years profit shall be paid at
Savings Rate plus 1%.
  In case of premature encashment after 3 years but before 5 years profit shall be paid at
Savings Rate plus 1.5%.
 In case of premature encashment after 5 years but before 8 years profit shall be paid at
Savings Rate plus 2%.
 In case of premature encashment after 8 years but before maturity profit shall be paid at
Savings Rate plus 2.5%.

Loan Advantage
 A depositor can avail loan up to 80% of the deposit amount under this scheme. In this
case, interest will be charged against the loan as per Bank’s prevailing rate.

2.6 Organization Vision

The vision is ‘Together Towards Tomorrow’. Export Import Bank of Bangladesh Limited
believes in togetherness with its customers, in its march on the road to growth and progress with
service. To achieve the desired goal, it continues the pursuit of excellence at all stages with
continuous improvement, because, in EXIM Bank, it is believed the line of excellence is never
ending. The organization believes strategic plans and networking will strengthen its competitive
edge over others in rapidly changing competitive environment. Its personalized quality services to
the customers with trend of constant improvement will be the cornerstone to achieve operational
success.

2.7 Organization Mission

The Bank’s mission gives emphasis to:
 Provide quality financial services especially in Foreign Trade
 Continue a contemporary technology based professional banking environment
 Maintain corporate & business ethics and transparency at all levels
 Sound Capital Base
 Ensure sustainable growth and establish full value to the honorable stakeholders
 Fulfill its social commitments and
 Above all, to add positive contribution to the national economy
2.8 SWIFT Service:
The SWIFT Service helped in sending and receiving the messages and instructions related to
NOSTRO Account operations and L/C related matters. The banks have brought 11 of
branches under SWIFT network. Other branches will come under the network hopefully by
the 2005. SWIFT aims to provide a prompt and efficient service to help you gain the most
from our products. As a part of this service a documentation set is supplied with each product.
This Guide is a part of that documentation set and contains as comprehensive and as up-to
date a description of the product as possible.

2.9 SWIFT Network

SWIFT or the Society for Worldwide Interbank Financial Telecommunication is a cooperative
institution established in 1973 by a group of banks to manage their international
telecommunications activities. Now over 2900 member banks, and regularly processes in
excess of three million banking messages per day between banks in over 150 countries around
the world own SWIFT.

 With over 5900 connections among the world’s major banks, the chance is high that
for any given transaction the bank you are dealing with is a SWIFT user.
 The SWIFT network provides facilities for ensuring that messages are transmitted in
standard, internationally accepted formats,
 SWIFT is highly secure, with elaborate mechanisms to ensure that information
remains confidential, authentic and intact.

2.9.1. Local Remittance Section

The commercial Bank Remittance facilities to its customer is to enable them top avoid risk
rising out of profit or loss in cash carrying cash money to one place to another or making
payment to someone in another places. Banks take this risk remit the fund on behalf of the
customers to save them from any awkward happening through the network of their branches
and ensure payment to the beneficiary in exchange of a little bit benefit known as
commission. There are four mode of remitting money from one place to another.
 Figure: Local Remittance Section

Pay Order Issue:

Following procedure is maintained for the issuance of pay order (PO):
 Customer is given a PO form.
 After filling the form carefully, the customer is pays the money in cash or by cheques.
 The concerned teller then issue PO on its specific block. This block has three parts,
one for bank and another two for customer. ―A/C payee‖ crossing it’s sealed on all
PO issued by the bank. The teller then
 Writes down the name and address of the beneficiary on the main part of the PO
block. In other two part name and address of the customer is written.
 The teller gives an entry to the registry book and maintains the same number of PO
block.
 Two authorized officer signed the PO block.
 At the end customer is provided with the two parts of the PO block after signing of the
backs of bank‘s part.
Demand Draft Issue:
 Customer is supplied with DD form.
 Customer fill up the form, which includes the name of the drawer, name of the payee,
amount of money to be sent, commission, name of the drawee branch, signature and
address of the drawer.
 The customer may pay in cash or by cheques from his accounts 
 After the money is paid and the form is sealed and signed accordingly it is given to the
DD issuing desk.
 Bank part contains issuing date, drawer‘s name, payee‘s name and some of the money
and name of the drawee branch.

After finishing all the required information entry of the DD is given in the DD issuing register
and at the same time bank issues a DD confirmation slip is entered into the DD advice issue
register and a number is put on the confirmation slip form the same register. Later the bank
mails this advice to the drawer branch.

Telegraphic Transfer (TT):

Customer fills the TT form and pays the amount along with commission in cash or by
cheques. The concerned officer issues a coast memo after receiving the TT form with
payment seal, than signed it charge Tk. 40.00 and 15% of VAT on TT charge. The TT charge
will increase @ Tk. 1 for every Tk. 1000.00.

Mail Transfer (MT):

MT Issue: Following procedure is maintained while issuing a MT.
 Customer is supplied with MT form.
 Customer fill up the form which include the name of the drawer, name of the payee,
amount of the money to be sent, commission, name of the drawee branch, signature
and address of the drawer.
 The customer may pay in cash or by cheques from his account (if any).
  After the money is paid and form is sealed and signed accordingly it is given to the
MT issuing desk.
 Upon receiving the form the concerned officer issues a MT on a particular block
 MT block contain issuing date, drawer‘s name, payee‘s name, and sum of the money
and name of the drawee branch.

Bills and Clearing Section

According to the article 37(2) OF Bangladesh Bank order, 1972, the banks which are the
number of clearinghouse are called as schedule banks. The schedule banks clear the cheques
drawn upon one another through the clearinghouse. This is an agreement by the central bank
where every day the representative of the member banks gather to clearing the cheques. Banks
for credit of the proceeds to the customer‘s account accept cheques and other similar
instruments. The bank receives many such instruments during the day form account holders.
Many of these instruments are drawn payable at other banks. As cheques payment order or
bill come from a bank with the range of local clearinghouse then it is sent for collection
through clearinghouse. The cheques may be crossed or not, if a customer of EXIM bank
deposits a cheques of another bank which is within clearinghouse, then the bank will credit
his account, and collect the cheques. Through the amount is credited in the customer‘s
account but will not get the money until the cheques is honored.

Essential things for clearing the instrument:

There are three Essential things for clearing the instrument:

(i) Crossing seal.

(ii) Endorsement seal
(iii) Clearing seal
2.8 Organism of Head Office

2.9 Organism of Elephant Road Branch:

2.10 Organizational structure in EXIM Bank:
Managing Director

Additional Managing Director

Deputy Managing Director

Senior Executive Vice President

Executive Vice President

Senior Vice President

Vice President

Senior Assistant Vice President

Assistant Vice President

Senior Principal Officer

Principal Officer

Executive Officer

Senior Officer
2.11 Organogram of EXIM Bank
 Chapter-03
Foreign Exchange Operation of EXIM Bank Limited
3.1 Introduction:

Foreign trade can be easily defined as a business activity, which transcends national Boundaries.
These may be between parties or government ones. Trades among nationals are a Common
occurrence and normally benefit both the exporter and importer. In many countries, International
trade accounts for more than 20% of their national incomes. In every international trade
transactions, there must be:
 An agreed products or services
 A sales contract
 Delivery details
 Proforma Invoice
 Shipping and delivery details
 Terms of payment
 Required documentation
 Insurance cover

Foreign trade can usually be justified on the principle of comparative advantage. According to
This economic principle, it is economic profitable for a country to specialized in the production of
that commodity in which the producers has the greater comparative advantage and to allow the
other country to produce that commodity in which it has the lesser comparative advantage. It
includes the spectrum of goods, services, investment, technology transfer etc. This trade among
various countries causes for close linkage between the parties dealing in Trade. The bank which
provides such transactions is referred to as rendering international Banking operations.
International trade demands a flow of goods from seller to buyer and of Payment from to seller
and this flow of goods and payment are done through letter of credit (L/C).
3.2 Foreign Exchange Regulation Act, 1947
Foreign Exchange Regulation (FER) Act, 1947 (Act No. VII of 1947) enacted on 11th March,
1947 in the then British India provides the legal basis for regulating certain payments,
dealings in foreign exchange and securities and the import and export of currency and bullion.
This Act was first adapted in Pakistan and then, in Bangladesh. The Act is reproduced.
Bangladesh Bank is responsible for administration of regulations under the Act. Bangladesh
Bank’s offices and their jurisdictions provide a list.

Basic regulations under the FER Act are issued by the Government as well as by the
Bangladesh Bank in the form of Notifications, which are published in the Bangladesh Gazette.
Notifications issued by the Bangladesh Government and the erstwhile Government of
Pakistan and the Bangladesh Bank and the erstwhile State Bank of Pakistan is reproduced.
Directions having general application are issued by the Bangladesh Bank in the form of
notifications, foreign exchange circulars and circular letters.

The major objectives of the act are to conserve the limited foreign exchange resources and to
ensure that the available foreign exchange is utilized only for priority requirements the
economic and financial interests of Bangladesh and the maintenance of the proper accounting
of foreign exchange receipt and payments. Bangladesh Bank is responsible for administration of
regulations under the Act. Bangladesh Bank reviews the exchange control measures from time to
time and revises the instructions on policy and measures, whenever necessary through different
Foreign Exchange (FE) circulars.
Authorized dealers in foreign exchange are required to bring the foreign exchange regulations
to the notice of their customers in their day-to-day dealings.

Authorized dealers at the level where transactions with the customers take place implement all
the regulatory amendments or changes. And so Authorized dealers are to ensure compliance
with the regulations by the customers. The ADs should report to the Bangladesh Bank any
attempt, direct or indirect, of evasion of the provisions of the Act, or any rules, orders or
directions issued they are under.
3.3 Letter of Credit (LC):
In case of any foreign trade requirement L/C is a must. As we know, there is no guaranteed
relationship between import and export. As a result, they use a media to secure their goods
and currency. So, Exporter and Importer use their respective bank as a media and L/C is a
legal obligation between Exporter and Importer. In case of a single L/C, it is necessary to
prepare six credit vouchers and one debit voucher. After preparing those vouchers it should be
sent to the computer section for computer entry.

3.4 Types of Letter Of Credit:

There are many types of Letter of Credits that are used in different countries of the world. But
International Chamber of Commerce (ICC) vides their UCPDC- 500, which denotes only two
types of LETTER OF Credits:

Figure: Forms of Letter of Credit

Revocable Letter Of Credit:
A revocable credit may be amended or cancelled by the issuing bank at any moment and without
prior notice to the beneficiary. That is to say, this type of letter of credit can be revoked or
cancelled at any time without consent of, or notice to the beneficiary. In case of seller
(beneficiary), revocable credit involves risk, as the credit may be amended or cancelled while the
goods are in transit and before the documents are presented, or although presented before
payments has been made. The seller would then face the problem of obtaining payment on the
other hand revocable credit gives the buyer maximum flexibility, as it can be amended or
cancelled without prior notice to the seller up to the moment of payment buy the issuing bank at
which the issuing bank has made the credit available. In the modern banking the use of revocable
credit is not widespread.

Irrevocable Letter Of Credit:

An irrevocable credit is a documentary credit, which cannot be revoked, varied or
changed/amended or cancelled without the consent of all parties- buyer (Applicant), seller
(Beneficiary), Issuing Bank, and Confirming Bank (in case of confirmed Letter of Credit).
Irrevocable Credit gives the seller greater assurance of payments, but he/she remains
dependent on an undertaking of a foreign bank.

Liability of the Issuing and Conforming Banks:

An irrevocable credit constitutes a definite undertaking of the Issuing Bank, provided that the
stipulated documents are presented to the Nominated Bank or to the Issuing Bank and that the
terms and conditions of the credit.

Types of L/Cs provided by the EXIM Bank Limited:

Back to Back L/C:

Back-to-Back L/C is defined as a credit, which is opened at the instructions and the request of
the beneficiary of the original export L/C on the strength credit. Back to.
Back is a term given to an ancillary credit, which arises where the seller‘s uses the credit,
granted to him by the Issuing Bank to its supplier. Sometimes Back-to-Back credit is called
Counter Veiling Credits, i.e. credit and counter credit.

There are two types of Back-to-Back credit:

 Foreign Back to Back Credit.
 Local Back to Back Credit.
Revolving L/C:
A revolving credit is a credit, which provides for the amount of the credit to be renewed
automatically after use without the need to renew the credit every time. It can be resolved
with respect to either:

 Time
 Amount (i.e. total value of the credit)

Transferable L/C:
A transferable credit is a credit, which can be transferred in whole or part by the original
beneficiary to one or more ―Second beneficiaries‖. It is normally used when the 1st
beneficiary does not supply the goods himself, but acts as an intermediary between the
supplier and the ultimate buyer.

3.5 The process of opening L/C:

3.6 Parties Involved in Letter Of Credit (L/C):

The Applicant:
The applicant is the party who approaches a bank in order to issue the L/C. Generally, the
applicant is an importer who reaches an agreement with the exporter before approaching
the bank to issue the L/C. The applicant is also normally obligated to reimburse the
issuing bank for any payments made under the L/C.

The Issuing Bank :

The bank issuing the L/C is known, as the issuing bank and it is usually the bank with
which the importer maintains an account. The issuing bank undertakes an absolute
obligation to pay upon presentation of documents drawn in strict conformity with the
terms and conditions of the L/C.

The Advising Bank:

The correspondent bank in the beneficiary's country to which the issuing bank sends the
L/C is commonly referred to as the advising bank. The advising bank simply advises the
L/C without any obligation on its part. However, the advising bank shall take reasonable
care to check the apparent authenticity of the credit that it advises.

The Beneficiary:
The beneficiary or exporter is the party entitled to draw payment under the L/C. The
beneficiary will have to present the required documents to avail payment under the L/C.

The Confirming Bank:

The confirming bank confirms that the issuing bank has issued a L/C. The confirming
bank becomes directly obligated on the credit to the extent of its confirmation and by
confirming, it acquires the rights and obligations of an issuer. The advising bank usually
does L/C confirmation or a third bank in the beneficiary‘s located.

The Negotiating Bank:

The bank that agrees to examine the documents under the L/C and pay the beneficiary is
called the negotiating bank. Typically, the advising bank is nominated as the negotiating
bank.
Reimbursing Bank:
The bank nominated by the issuing bank to provide reimbursement to the negotiating bank or
the payee bank is referred to as the reimbursing bank.

3.7 Document require for Opening L/C:

 L/C Application and agreement from duly filed and signed by proposed importer.
 Exchange control copy of L/C Authorization Form.
 Indent or Proforma Invoice (one kind of price list describing the details on the items
wanted to import.
 Insurance cover note with premium paid receipt.
 Offering Sheet.
 L/C opening sheet.
 L/C Forms (in set).
 L/C Amendment Form (in set).
 L/C Forwarding Form.
 IMP Form (set in quadruplicate).
 Liability Voucher.
 Voucher for L/C Advising Charge & Realizing of margin.

Amendment of L/C:
Parties involved in L/C, particularly the seller and the buyer cannot always satisfy the
terms and conditions in full as expected due to some obvious and genuine reasons. In such
a situation, the Credit should be amended. The bank transmits the amendment by tested
telex to the advising bank. In case of revocable credit, it can be amended or cancelled by
the issuing bank at any moment and without prior notice to the beneficiary. But in case of
irrevocable letter of credit, it neither be amended nor cancelled without the agreement of
issuing bank, the confirming bank (if any) and the beneficiary. If the L/C is amended,
service charge and telex charge are debited from the party account accordingly.
3.8 Import Registration Certificate (IRC)
The first thing one need to carry on a business of import is called Import Registration
Certificate. But registration is not required for import goods, which do not involved
remittance of foreign exchange like medicine; reading materials etc. can be imported without
registration by the users within monetary limit. Documents to be required for Import
Registration Certificate are as follows.

Income Registration Certificate

 Nationality Certificate
 Certificate from Chambers of Commerce and Industry Registered Trade
Association
 Bank Solvency Certificate
 Copy of Trade License
 Requisite fees

On receiving application, the respective CCI&E officer will scrutinize the documents and conduct
physical verification and issue demand note to the prospective importers to furnish the following
papers through their nominated Bank-

Original copy of treasury deposited as IRC fee

 Assets Certificate
 Affidavit from 1st class Magistrate
 Rent receipt
 Two passport size photograph
 Partnership deed in case of partnership firms
 Certificate of Registration, Memorandum and Articles of Association in case of
Limited Company
After scrutinizing and verifying, the nominated Bank will forward the same to the respective
CCI&E office with forwarding schedule in duplicate through Banks representative. CCI&E
then issue Import Registration Certificate to the Applicant.
3.9 Function of Import section:
Imp-Form:
The form IMP contains the followings-

Name and address of the Authorized dealers.

 Amount of remittance to be permitted (i.e. L/C amount)
 LCA form no. Date and value in Taka.
 Description of goods.
 Invoice value in foreign currency, (i.e. L/C amount)
 Country of origin.
 Port of shipment.
 Name of steamer / Airline (i.e. By road/ship/air)
 Port of importation.
 Indenter’s name and address.
 Indenter’s registration number with CCI & E and Bangladesh Bank.
 Full name and address of the applicant.
 Registration number of the applicant with CCI & E.
 Type of LCAF.

Import Procedures:
The procedures, which follows at the time of Import are as, follow-

The buyer and the seller conclude a sale contract provided for payment by documentary
credit.
 The buyer instructs his Bank (the issuing Bank) to issue a credit in favor of the seller /
Exporter / Beneficiary.
 The Issuing Bank then send messages to another Bank (Advising Bank /Confirming
Bank), usually situated in the country of seller, advice or confirms the Credit Issue
 The Advising / confirming Bank then informs the seller through his Bank that the
Credit has been issued.
  As soon as the seller receives the credit, if the credit satisfy him the he can reply that,
he can meet its terms and conditions, he is in position to load the goods and dispatch
them.
 The seller then sends the documents evidencing the shipment to the Bank where the
Credit is available (nominated Bank). This can be the issuing Bank or Confirming
Bank; Bank named in the Credit as the paying, accepting and Negotiating Bank.
 The Bank then checks the documents against the credit. If the documents meet the
requirements of the credit, the Bank then pay, accept or negotiate according to the
terms of credit. In the case of credit available by negotiation, Issuing Bank will
negotiate with recourse.
 The Bank, if other than the issuing bank, sends the documents to the issuing Bank.
 The issuing Bank checks the document and if they found that the document has meet
the credit requirements, they realize to the buyer upon payment of the amount due or
other terms agreed between him and the issuing Bank.
 The buyer sends transport documents to the carrier who will then proceed to deliver
the goods.

An importer is required to have the followings to import through the bank

 A bank account in the bank.
 Import Registration certificate.
 Tax Paying identification number.
 Performa invoice indent
 Membership certificate
 LCA (Letter of credit application) form duly attested.
 One set of IMP form.
 Insurance cover note with money receipts.
 Others

3.10 Export Section:

Literally, the term Export, we mean that carrying of anything from one country to another. On
the other hand Banker’s define Export as sending of visible things outside the country for
dale. Export Trade plays a vital role in the development process of an Economy. With the
Export earning, we meet our Import Bills.

3.11 Export Registration Certificate (ERC)

Like any other business it needs Registration. The chief Controller of Import and Export
(CCI&E) makes export registration. For Registration, prospective Exporters required to apply
through Q.E.X.P from the CCI&E along with the following documents-
 Trade License 50
 Income Tax Clearance
 Nationality Certificate
 Bank’s Solvency Certificate
 Asset certificate
 Registered Partnership Deed

Export procedure:
A person desirous to export should make application to obtain ERC from CCLNE. Then the
person should take step for export purpose into the bank for obtaining EXP form. He must
submit following documents:
 Trade license
 ERC
 Certificate from concerned Government Organization

After satisfaction on the documents the banker will issue EXP form to the exporter. Now
exporter will be getting shipping and other documents from the shipment procedure. Exporter
should submit all these documents along with letter of indemnity to his bank for negotiation.
3.12 Remittance:

Figure: Remittance

3.13 Inward Remittances:

The term “Inward Remittances” includes not only remittance by T.T., M.T., Drafts etc., but
also purchases of bills, purchases of drafts under Travelers’ Letters of Credit and purchases of
Travelers’ Cheques.
The ADs may freely purchase foreign currencies or raise debits to non-resident Taka
Accounts of the respective bank branches and correspondents. Remittances equivalent to US$
2000 and above should be reported oil Form C attached to the appropriate schedule. However,
declaration on Form C by the beneficiary is not required against remittances sent by
Bangladesh nationals working abroad. The purpose of remittances should be clearly stated on
the Form C. Where the country of origin of funds and currency in which remittances received
are the same, the ADs may submit a consolidated Form C in respect of those remittances
attaching therewith a separate list showing details of remittances comprising the amount
reported on Form C. Remittances received against exports should be certified and reported on
EXP Forms. In case of remittance received in advance for exports the AD should obtain a
signed declaration from the beneficiary on the back of the “Advance Receipt Voucher”
certifying the purpose of remittance.
There is no objection to the ADs obtaining reimbursement from non-resident banks in freely
convertible foreign currency in respect of Taka bills and drafts purchased by them under
instructions from such a non-resident bank whether under Letters of Credit or under other
arrangements.

If an inward remittance already reported to the Bangladesh Bank is cancelled, either in full or in
part, because of non-availability of beneficiary, the ADs must report the cancellation of the
inward remittance as an outward remittance on TM form. The return in which the reversal of the
transaction is reported should be supported by a letter giving the-
 Reference of the return in which the inward remittance was reported
 Name and address of the beneficiary
 Amount and the reason for cancellation and
 Amount of the purchase as affected originally.

Inward Remittance:
 Telegraphic Transfer (TT)
 Mail Transfer (MT)
 Foreign Draft (FD)
 Payment Order (PO)
 Travelers Check (TC)
 Foreign Currency Notes

Collection procedure:
 To make entry in Foreign Bills Collection Register
 To prepare forwarding Schedule in Quadruplicate
 To prepare vouchers on realization of proceeds Payment Procedure
 To check up the custom declaration
 To consult purchase agreement
 To obtain the signature of TC and to verify the same with the previous signature of the
beneficiary on the TC
 To make entry register for TC and Drafts purchased
 To prepare vouchers and FET schedule
  Lastly send for collection
Cancellation of Inward Remittance:
In the event of any inward remittance which has already been reported to the Bangladesh Bank,
being subsequently cancelled, either in full or part, because of non-availability of beneficiary.

Authorized Dealer must report the cancellation of inward remittance as an outward remittance of
form ―T/M‖ required document are-

 The date of return in which the inward remittance was reported

 The name and address of the beneficiary
 The amount of the purchase as effected
 Reasons for cancellation

3.14 Foreign Outward Remittance

Remittance from our country to foreign countries is called outward foreign remittance. Sales
of foreign currency by the authorized dealer or formal channels may be addressed as outward
remittance. The authorized dealers must utmost caution to ensure that foreign currencies
remitted or released by them are used only for the purposes for which they are released.
Outward remittance may be made by appropriate method to the country to which remittance is
authorized. Most outward remittance is approved by the authorized dealer on behalf of
Bangladesh Bank.

 Telegraphic Transfer (TT)

 Mail Transfer (MT)
 Foreign Draft (FD)
 Payment Order (PO)
 Travelers Check (TC)
 Foreign Check (FC)
 Foreign Currency Notes
Outward remittance in favor of beneficiaries outside Bangladesh may be made in any of the
following manners-

Formal channel:
Fund transfer from one country to another country through official channels, i.e. banking
channel, post office, and other private service channels, such as- Western money order, Neno
money order etc.

Informal Channel:
Fund transfer from one country to another country through hand by hand or over telephone in
an unofficial channel like as ―Hundy‖. Remittance collected by informal ―Hundy‖ rings
operating in Middle East countries and UK are also used to finance illegal trade and
transactions.

Details about Remittance Most

Outward remittances are approved by the ADs, on behalf of the Bangladesh Bank following
declaration of Taka as convertible for current accounts payments from March, 1994. Only a
few remittances of special nature require Bangladesh Bank’s prior approval. All remittances
from Bangladesh to a foreign country or local currency credited to on resident Taka accounts
of foreign banks or convertible Taka account constitutes outward remittances of foreign
exchange. ADs must exercise greatest caution to ensure that foreign currencies remitted or
released by them are used only for the purposes for which they are released; they should also
maintain proper records for submission of returns to Bangladesh Bank as also for the letters
inspection from time to time. It is most important that, once forms have been approved by or
on behalf of the Bangladesh Bank, the ADs carry out the transactions only on behalf of the
original applicants for whom the forms were approved. Remittances made against permits or
approval letters of Bangladesh Bank should be reported on TM form. The AD must state on
the TM form the number of the permit against which the remittance has been made by him
and must certify that the remittance has been endorsed by him on the permit. The remittance
must be endorsed on the back of the permit giving the date of the remittance under the stamp
and signature of the AD. When the permit is exhausted or no longer required, it should be
returned to the Bangladesh Bank by the AD along with the TM form on which the last
remittance is reported. Original copies of all IMP forms, TM forms covering remittances
affected by the ADs must be submitted to the Bangladesh Bank along with the appropriate
Returns. In the event of any remittance, which has already been reported to the Bangladesh
Bank on the prescribed return being subsequently cancelled either in full or in part, the ADs
must report the cancellation of the outward remittance as an inward remittance. A letter giving
the following particulars should support the return in which the reversal of the transaction is
reported:
 The date of the return in which the outward remittance was reported.
 The name and address of the applicant.
 The amount of the sale effected originally.
 The amount cancelled.
 Reasons for cancellation.
 Chapter-04
Analysis Performance of Foreign Exchange
Department
4.1 Remittance:
Particular 2015 2016 2017 2018 2019
Remittance 5770.2 2889.48 3776.67 3766.6 4026.62

Graphical Presentation:

Remittance in million
7000
6000 5770.2

5000
3776.67 3766.6 4026.62
4000
2889.48
3000
2000
1000
0
2015 2016 2017 2018 2019
Remitance

Figure 1: Remittance in million

In year 2019, EXIM Bank received BDT 4026.62 million (equivalent USD 0.05 billion) as
wage earners remittance by handling 81246 number of transaction. There was 6.90% growth
of inward remittance in the year 2019 compare to 2018.

Here we can see that the remittance business of EXIM bank fluctuate every year.
4.2 Export business:
Particular 2015 2016 2017 2018 2019
Export 120996.9 130353.41 134412.44 145796.4 147508.7
Business

Graphical Presentation:

Export Business
160000 145796.4 147508.7
130353.41 134412.44
140000 120996.9
120000
100000
80000
60000
40000
20000
0
2015 2016 2017 2018 2019

Figure 2: Export Business in million

In year 2019 total export business of EXIM Bank was BDT 147508.7 million (equivalent USD
1.96 billion) by handling 43,372 number of export documents. Import business increase by 0.80%
in 2019 compare to 2018.

In the year of 2015 to 2019 export business increase rapidly. The year of 2015 to 2019 earnings
increase 120996.9 to 147508.7 million taka on only export business.
4.3 Import business:
Particular 2015 2016 2017 2018 2019
Import 143314.4 135409.88 146795.57 152703.3 153930.51
business

Import business
160000

155000 153930.51
152703.3
150000
146795.57
145000 143314.4

140000
135409.88
135000

130000

125000
2015 2016 2017 2018 2019

Figure 3: Import Performance in million

In year 2019 total import business of EXIM Bank was BDT 153.93 billion (equivalent USD
1.96 billion) by handling 43,418 number of import letter of credit. Import business increase by
0.80% in 2019 compare to 2018.

Here we can see that import business earn 143314.4 million taka in the year of 2015. Then the
year of 2016 earn from import business are decrease. After the year of 2016 this import
business shows better performance than 2015. The year of 2017 to till the import business
earns profit.
4.4 Overall Foreign Exchange business:
Particular 2015 2016 2017 2018 2019
Foreign Exchange 270081.5 268652.68 284984.68 302266.4 305465.7
business

Foreign Exchange business

310000

300000

290000

280000
302266.4 305465.7
270000
284984.68
260000 270081.5 268652.68

250000
2015 2016 2017 2018 2019

Figure 4: Overall performance

It is the overall performance presentation graph of foreign exchange business.

From those graph we can easily see the difference performances of Foreign Exchange
department and the foreign exchange business of EXIM Bank Ltd shows the satisfactory
output for the banking sector. The figure clearly shows the overall performance of foreign
exchange department.
 Chapter-05
Findings of the report, Recommendations,
Conclusion:
5.1 Findings of the report:
After analyzing the Foreign Exchange performance analysis of EXIM Bank limited. It can be
said that overall performance of EXIM Bank is satisfactory. From comparative analysis and
findings of the study, the following generalized recommendation can be made for
improvement.
1. In the year 2019, BDT 153.93 billion (equivalent USD 1.96 billion) by handling 43,418
number of import letter of credit.
2. In the year 2019, EXIM Bank handled BDT 134.41 billion (equivalent USD 1.73
billion) export business from 39,169 numbers of export documents. Export business
achieved 3.11% growth in 2017 compare to 2016.
3. In the year 2019, Bank received BDT 3.78 billion (equivalent USD 0.05 billion) as
wages earners remittance by handling 74,433 number of transaction. Inward remittance
achieved 30.70% growth in the year 2019 compare to 2018.
4. The terms and conditions of Foreign Exchange BDT 153.93 billion (equivalent USD
1.96 billion) by handling 43,418 number of import letter of credit.hange division are
sometimes difficult to understand for the ordinary clients.
5. When a monetary authority buys or sells foreign exchange, it makes or accepts
payment in domestic currency by crediting or debiting commercial banks’ reserve
accounts at the central bank.
6. Lack of manpower slows down to provide better services to its clients.
7. Another important problem is some of the officials who are working in the Foreign
Exchange departments are not commerce background.
8. Some business people do not agreement with EXIM Bank Limited because of foreign
exchange rate is so high of EXIM Bank.
9. I have found that peoples are interested about that job which gives them more salary
and other facilities.
10. The EXIM Bank Limited send Officers for training in the BIBM but the silly mistakes
by the Credit officers in preparing statement of affairs or Office note is continuing,
inefficiency in initial appraising process of loan or other activities still persists.
5.2 Recommendations:
I have to make some recommendations based on the findings that I have got from my
research. The recommendation will help the bank to take necessary steps in order to increase
the satisfaction level of customers of EXIM Bank Limited.

1. The bank should be more computerized. It will speed up the activities and lead to
more customer satisfaction.
2. Promotional activities help an organization to reach its potential customers so more
and more advertising is necessary in order to draw the attraction of its customers.
3. The bank should recruit employees who are from commerce background as it gives
the employees a plus point.
4. Although, on-line banking is present in EXIM Bank Limited but it has to be
updated frequently.
5. If the bank reduces the foreign exchange interest rate then increase the foreign
exchange operation of EXIM Bank Limited.
6. Open the foreign exchange department at each and every branch of EXIM Bank
Limited.
7. EXIM Bank should give its employees more salaries, job securities and other
facilities to hold its existing expert and trained officers.
8. Margin and commission on L/Cs varies from customer to customer. A few
customers are allowed to open L/C even with nil margin and fees commission. I
think the bank should review the customer transaction behavior for a period of time
and should develop a certain policy in this regard
9. In case of L/Cs, sometimes customers insist on giving their payments though their
documents are found discrepant. In some cases bank has to give payment to these
customers for different reasons.
5.3 Conclusion:
As an internee of EXIM Bank Limited I have truly enjoyed my internship from the learning
and experience viewpoint. I am confident that this three months internship program at EXIM
Bank Limited will definitely help me to realize my further carrier in the job market. Export
Import Bank of Bangladesh Limited is a new generation bank. It is committed to provide high
quality financial services/products to contribute to the growth of GDP of the country through
stimulating trade and commerce, accelerating the pace of industrialization, boosting up
export, creating employment opportunity for the educated youth, poverty alleviation, raising
standard of living of limited income group and overall sustainable socio-economic
development of the country. Though it is a new bank, EXIM Bank Limited makes a strong
position through its varies activities. Its number of clients, amount of deposit and investment
money increases day by day. This bank already has shown impressive performance in
investment. The bank now should think to start new services and take different types of
marketing strategy to get more customers in this competition market of banking.
 Bibliography:

Books:
1. AHMED S.M.H, Artha Rin Adalat Ain 8th edition, New wari book corporation,
Bangladesh (2004)
2. Chowdhury L. A Text Book on Foreign Exchange, Fifth Edition, Dhaka: Provati
publication(2011),
3. LEOPOLD. A. BERNSTEIN, Financial Statement Analysis-Theory, Application and
Interpretation 5th edition, Lrwin, USA (1993)
4. P.N VARSHANEY, Banking Law & Pratices 19th edition, Sultan chand & Sons, India
(2003)
5. PETER ROSE, Commercial Bank Management, 6th edition, McGrow-Hill Education
New York (2001)

Reports:
 Annual Report of EXIM Bank Ltd, 2015
 Annual Report of EXIM Bank Ltd, 2016
 Annual Report of EXIM Bank Ltd, 2017
 Annual Report of EXIM Bank Ltd, 2018
 Annual Report of EXIM Bank Ltd, 2019

Web Reference:
 http://www.eximbankbd.com/deposit/Monthly_Saving_Scheme
 http://www.eximbankbd.com/
 https://en.wikipedia.org/wiki/Exim_Bank_%28Bangladesh%29
 International Business