CHAPTER-1

INTRODUCTION
1

1.1 Origin of the Report:
Internship program is a prerequisite for acquiring BBA degree. Before completion of the degree, a student must undergo the internship program. Internship program is a perfect blend of the theoretical and practical knowledge. As the classroom discussion alone cannot make a student perfect in handling the real business situation, therefore it is an opportunity for the students to know about real life situation through this program. This program consists of three phases: • • • Organization orientation to acquaint at the intern's as with structure, function and performance of the organization. The project work pertaining to a particular problem or problems matching with the intern's area of specification and organization's requirement and The report writing to summarize the intern’s analysis, findings and achievements in proceeding two phases.

1.2 Objectives:
The basic objective of the report is to see how Prime Bank Ltd. is handling the General banking and credit operation. Part A: Organization Part   Exploring various features of Prime Bank Limited (PBL) Analysing the performance of PBL Finding out the general banking and credit operation, practiced by PBL Review and analyze the classified loan /NPL of Bangladesh and PBL with that of standard

Part B: Project Part  

1.3 Scope:
The study would focus on the following areas:

2

 

General banking and credit operation of PBL & Portfolio (of loans or advances) management of PBL

Each of the above areas would be critically analyzed in order to determine the efficiency of PBL’s general banking and credit operation system.

1.4 Sources of Information:
Information collected to furnish this report is both from primary and secondary sources. The primary sources are:     Practical desk work Face to face conversation with the officers Face to face conversation with the clients Relevant file study as provided by the concerned officer

The secondary sources are:  Different Circulars issued by the Head Office, Prime Bank Limited and Bangladesh Bank   ‘Credit Manual’, published by PBL Annual Reports of PBL

1.5 Methodology:
The study requires a systematic procedure from selection of the topic to final report preparation. To perform the study data sources are to be identified and collected, they are
Identifying and presented in to be classified, analyzed, interpreted Data Sources a systematic manner and key Selection of the Topic

points are to be found out. This overall process of methodology is given in the form of flowchart that has been followed in the study.
Collection of Data

Classification, Analysis, Interpretation and Presentation of Data

Findings of the Study

3 Final Report Preparation

Selection of the topic: The topic selected for the study was assigned by the Prime Bank official. 4 . Collection of data: Primary data are collected through 100% physical inspection as there is no provision and scope for using sampling technique. Classification. D. analysis. To meet up the need of data primary data are used and the study also requires interviewing the officials and staffs where necessary. C. interpret and presentation of data I used some graphical tools to understand them clearly. Before assigning the job it was discussed with me so that I can prepare a well-organized internship report.Figure 1: Flow chart of methodology A. analyze. B. interpretation and presentation of data: To classify. Identifying data sources: Essential data sources both primary and secondary are identified which will be needed to complete and workout the study.

iii. 5 . 1. Recommendations are suggested thereafter to overcome the problems. F. ii. A period of twelve week was not sufficient to collect and understand the insights of whole Credit Operation. some limitations were yet present there: i. Findings of the study: After scrutinizing the data problems of the study are pointed out and they are shown under concerned heads.6 Limitations: Though I tried my level best to produce a comprehensive and well-organized report on the general banking and credit operation system of Prime Bank Ltd.. Banks policy did not permit to disclose various data and information related to Credit Portfolio. Final report preparation: On the basis of the suggestions of our honourable course teacher some deductions and additions are made and final report is prepared thereafter. Recent data and information on different activities of Prime Bank Limited was unavailable.E.

CHAPTER-2 6 .

From the very beginning. Dhaka-1000.Why Choose Prime Bank Ltd. Now in ten years of its operation.1 Prime Bank in a Sketch: In this background of liberalization of economic policies in Bangladesh. its branches stood at thirty-seven and a new branch start its operation two months ago on April 15. It renders all types of commercial banking services to the customers of all status in the society with in the stipulations laid down in the Bank Company Act-1991 and rules and regulations formed by Bangladesh Bank from time to time. Motijheel Commercial Area. Prime Bank Ltd. Its slogan is “Prime Bank Ltd. The bank started operation its business through four branches.000 million and paid up capital of Taka 400 million. The Chairman of the Bank is highly professional people having wide experience in domestic and international banking are managing the bank. was incorporated on 12th February 1995 as a consequence of relent less and dedicated efforts of a group of entrepreneurs having excellence of experience and exposure in the different field of industry. the office had been shifted to Adamjee Court (annex building). The bank has made a significant progress within a very short time due to its very competent board of directors. and Bangladesh. trade and commerce of the country. dynamic management and introduction of various 7 . – a bank with a difference". Rajuk Avenue. It is a full licensed scheduled commercial bank set up in the private sector by a group of highly successful entrepreneurs in pursuance of the government to liberalize banking and financial services. the bank has adopted the policy of diversifying its business. Under the dynamic leadership of the Chief Executive Officer. Prime Bank emerged as a new commercial bank to provide efficient banking services with a view to accelerating socio-economic development of the country. 2. Motijheel Commercial Area. It started operation as a commercial bank in the private sector on the 17th April 1995 with its registered office at 5. 2005? Prime Bank has an authorized capital of Taka 1. the bank earned profit within December 1995 and raised its reserve. Later.

To cope with the challenge of the new millennium it hired experienced and well-reputed banker of the country from the inception.customers friendly deposit and loan products. So the motto itself is self-explanatory to deliver the vision of the bank. The bank has efficient and dedicated professional and equipped with modern technology to provide the best service in the need of the people and thus to realize its vision. Prime Bank limited is prepared to meet the challenge of the 21st century well ahead of time. including the Chairman. published by Bangladesh Bank for the last consecutive five years.2 Vision of the Bank: “A Bank with a difference” is the motto of Prime Bank Limited.” 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” 8 .” Mission: “Continuous improvement in our business policies and procedures. At present bank has 13 Directors. So the Bank defined: Vision: “To be the most efficient Bank in terms of customer service profitability and technology application. 2. The bank holds the first position in the CAMEL rating. cost reductions through integration of technology at all levels.

carry on. managing and distributing the issue of stocks.Strategic Priorities: “To have sustained growth. maintain. To establish.       9 . and other securities To finance the international trade both in Import and Export To develop the standard of living of the limited income group by providing Consumer Credit To finance the industry. To develop saving attitude and making acquaintance with modern banking Facilities. The objectives of the Prime Bank Limited are as follows:   To be market leader in high quality banking products and services. To participate in the industrial development of the country to encourage the new and educated young entrepreneurs to under take productive venture and demonstrate their creativity and there by participate in the economic development. transact and undertake all kinds of investment and financial business including underwriting. trade and commerce in both the conventional way and by offering customer friendly credit service Active excellence in customer service through providing the most modern and advance technology in the different spheres of banking. debentures. broaden and improve range of products and services” 2.3 Goals and Objectives of the Bank: The objectives of the Prime Bank Limited are specific and targeted to its vision and to position itself in the mindset of the people as a bank with difference.

Management hierarchy of Prime Bank Limited: Managing Director (MD) Deputy Managing Director (DMD) Senior Executive Vice President (SEVP) Executive Vice President (EVP) Senior Vice President (SVP) Vice President (VP) Senior Assistant Vice President (SAVP) Assistant Vice President (AVP) First Assistant Vice President (FAVP) Senior Executive Officer (SEO) Executive Officer (EO) Principal Officer (PO) Senior Officer (SO) Management Trainee Officer (MTO) Junior Officer (JO) 10 .

M.R.D General Service Division Monitoring & Inspection Division Computer Division 11 .Organogram of Prime Bank Limited: Board of Directors Executive Committee of the Board Policy Committee of the Board Managing Director Board Secretaria t Board Audit Cell Senior Executive Vice President D.D Corpora te Affairs Division Research & Developm ent H.D Marketing Division Investment Division Internationa l Division Public Relation Treasury Division Unit Credit Commit tee F.A.

Lease Finance 3. Hajj Savings Scheme (HSS) 5.5 Loan Products: The prime bank is offering the following loan and advance product to the client for financing different purpose that fulfil the requirements of the bank and have good return to the investment as well as satisfy the client. Non Resident Taka Account 13.4 Depository Products: Prime Bank Limited is now offering 14 depository products for mobilizing the savings of the general people. The loan and advance products are as the following: 1. These deposit products are: 1. STD Account 10. which have achieved wide acceptance among the people. Small & Medium Enterprise 12 . Foreign Currency Deposit Account 12. Senior Citizens’ Scheme (SCS) 6. Current deposit Account 9. Non Resident Foreign Currency Account (NFCD) 14. Consumer Credit Scheme 2. Educational Saving Scheme 4. Hire-Purchase 4. Saving deposit Account 8. Multi Currency Account 11. Non Residents Investors Account 2. There are also accounts for force saving from the exporter that is called Reserve Margin from the export bill. Monthly Benefit Deposit Scheme(MBDS) 3. Fixed Deposit 7.2. Contributory Saving Scheme (CSS) 2.

5. House Building Finance Scheme (Corporate Client) 6. For delivering faster service the bank has introduced online banking service. Prime Bank Master Card Credit Card 7. Import Financing 10.6 Other Products The Bank has its concentration for new product and developed service for satisfying its customer and increasing its customer base. Industrial Financing 2. They prefer now faster service with least cost. Prime Bank Visa Credit Card 8. They are:     Online Banking Services SWIFT services L/C Delivery Services Locker Services 13 . There are other new products and services that PBL has lately introduced. Export Financing 11. Working Capital Financing 9.

Chapter-3 14 .

00 million as on December 31. Over the last nine years.2 Capital & Reserve: The bank started with authorized capital of Tk. the paid-up capital has increased substantially.1000. 2004. During this small period of time it has become able to secure and hold the first position in the CAMEL rating for the last several years including this year too.100. 3. Though it started its operation few years back.986.00 million only.51 million in 2004. With the active support and guidance from the Government. The Bank has built up a strong reserve base over the nine years. reserves fund increased to Tk. 15 .1.00 million by passing a special resolution in the bank’s 5th extra ordinary General Meeting held on 07th February. Against Tk. it has achieved the trust of the general people and made reasonable contribution to the economy of the country by helping the people investing allowing credit facility. Paid-up capital was then Tk. the bank has earned the status of a leading bank in terms of both business and goodwill. 2005. PBL increased it’s authorized capital to Tk. The paid-up capital stood at Tk. In its ten years operations.00 million in 1995.Prime Bank at a Glance 3.45 million only in 1995.4000. This paid up capital is one of the strongest in the Banking industry. This consistent policy of building up reserves has enabled the bank to maintain better capital adequacy ratio as compared to others.1000.1 Performance: The Prime Bank Limited is probably the most successful private sector Commercial Bank in our country. PBL has been showing a steady and improved performance.

3. in Million 4911.04 percent in 2004. PBL introduced an attractive senior citizen scheme to encourage investment of pension and gratuity fund for a reasonable return *Deposit mix on December 31. 2004 as compared to Tk.37 3578. Fixed Deposits are the main component of deposits contributing about 45.04 4323.24 million as of December 31.62 Items Current and other deposits Savings bank deposits Fixed deposits Short term deposits Deposit schemes Bills payable Table 2: Deposit mix of PBL 16 .73 7. It has targeted both the lower income group and higher income groups as well.50 12. which gained popularity among the public. 2004 was as follows: Serial No. PBL has introduced different saving schemes. The Bank’s deposit grew by 37.23 million in 2003. 2. 20483. Customer deposits of the bank grew by 33 percent. Tk. The growth was supported by branch network and high standard of services provided to customer.3 Deposits: The customer base of the PBL is large in its kind in any other commercial bank. 4.40 453.75 45. PBL’s mobilized total deposits of Tk.86 1966.40 1. 1.73 percent of the total deposits. For mobilizing saving. 5. 3.60 Percentage of total deposits 17. 28069.93 12835.00 15. 6.

22 million in 2003.6 Sources of Fund: The sources of fund of the Prime Bank Limited. 23219. The growth rate of the import business was 44% and the main items of industrial machineries. The bank continues to explore and diversify its loan distribution with the objective of efficient use of resources and take utmost precaution to safeguard it. paid up capital.2004 as compared to Tk16492. Appendix) 3. 36747 million and 19502 million during 2004. Reserve fund and other liabilities. Moreover. Bone Crust.67 million as of December 31. The bank has performed total Tk. Tobacco.3. which was 422 previous year. Total import and export business transacted was Tk. 3. PBL starts participating in syndicated loan and achieves huge success in this area.The loan and advance distributed by PBL has shown an increasing trend but the classified loan is satisfactory. The remittance department is the efficient one in the banking industry. (Ref: Fig-6. The Bank has formulated its policy to give priority to small and medium businessmen while financing large-scale enterprises through consortium of banks. The growth rate of export business was 18% percent and the items of export were RMG. The bank increased its number of foreign correspondents to 441 in the year 2003. commodities and other consumer products.5 Foreign Exchange Business: The Bank has done a significant amount of Foreign Exchange business and that played a vital role in the overall performance of the bank. The total loans and advances of the Bank stood at Tk. PBL participates in foreign exchange market through the help of Reuters. Deposit is the 17 . Leather. Betel-Nut etc.80 million of foreign exchange business in 2004. Shrimp. Jute. like other bank the sources of fund comes from deposit.56248. raw materials.4 Loans and Advances: The Prime Bank Limited is making loans and advances in different areas.

(Ref: Fig-3.8 Interest Income: The bank is earning a satisfactory interest income and non-interest income as well.30% during year 2004. the good performance of Prime Bank made sure that the banks share price remained in a respectable position. Even though the capital market of the country has been suffering over the last few years. Fixed Assets and Liquid Assets. Appendix) 18 . The net interest income was grown by 31. loans and advances increase by 31% and 37% respectively in 2003 and 2004.48 million respectively. Appendix) 3. (Ref: Fig5.9 Profitability and Shareholder Satisfaction: The bank had been one of the most profitable in the banking sector.main sources of fund followed by paid up capital. Investments. Net investment income from Islamic Branches increased during the year by 42.93 million and 26303.80 million at the end of 2004. The bank's return on assets (ROA) crossed 3. The equity capital was Tk 2239. Appendix) 3. 19241. loans and advances at the end of 2003 and 2004 stood at Tk. 3. (Ref: Fig-4. The growth was mainly driven by increase in loans and advances. Investments.75 percent in the year 2004.16 percent. Investments.7 Uses of Fund: PBL has used its fund in Loans and advances.

CHAPTER-04 19 .

Analysis of the Deposit Schemes Bank is the largest mobilize of surplus domestic savings. The savings rate in Bangladesh is one of the lowest in the world. for self-employment we need investment and for investment we need savings. depend only on the quantum of income but largely depend on the habit of savings of the people. The investment in its turn helps industrialization leading towards creation of wealth of the country. savings help capital formations and the capital formations help investments in the country. The more the growth of savings.00% for the year 2008. we need self employment. savings is considered the very basis of prosperity of the country. We have formulated the following Savings Schemes: Contributory Savings Scheme Education Savings Scheme Short Term Deposit Double Benefit Deposit Scheme Monthly Benefit Deposit Scheme Fixed Deposit Scheme Lakhopati Deposit Scheme Foreign Currency Account 20 . In the other words. the more will be the prosperity of the nation. The savings do not. Financial Institutions responsible for mobilization of savings should offer attractive Savings Schemes so that the marginal propensity to save increases. And the wealth finally takes the country on road to progress and prosperity. In order to improve the savings rate. Interest rate of Savings Deposit Account is 6. For poverty alleviation. of course. As such.

03.1 Contributory Savings Schemes (CSS): This is a Savings Scheme in which a person gets the opportunity to build up savings by contributing monthly instalments and receives an attractive fixed amount at the end of a specified term. The Deposit shall be for a period of 5 years. rule of taxation. A brief chart of lump sum amount and monthly pension installments payable are shown below: 04. Minimum size of monthly installment shall be Tk. The Scheme is designed to help the fixed income group to save money and build up a sizable fund with which they can go for some income generating venture to improve the quality of their life and/or meet any future financial obligations. 25. The salient features of the Scheme are given below: 01. Maximum installment size shall be Tk. Lump sum amount shall be paid after maturity or monthly Pension shall be paid for the next 5 years according to the size of deposit. the Bank reserve the right to deduct Income Tax. At present Income Tax on interest will not be applicable but in future for any change in Govt. The depositor will have the option to choose any installment size at the time of 21 . 1000/-. 05.000/02.and multiplies of Tk. 500/.Resident Foreign Currency Deposit Account Non-resident Taka Account House Building Deposit Scheme Non-resident Foreign Currency Deposit Account Non-resident Investors Taka Account Prime Millionaire Scheme 4.

b. No benefit or interest shall be allowed for pre-mature encashment within one year. Advance payment of any number of installments is 11. If the account is closed after one year of its opening. Normally no withdrawal shall be allowed before maturity. the customer will cease to remain within the purview of the scheme and scheme will be treated as a Savings Bank deposit and interest will be paid on the deposited amount at prevailing SB account rate subject to completion of 1 (One) 13. and in absence of nominee. When a depositor fails to deposit any installment. 08. he/she will be allowed to do so. the account will cease to be operative and the amount deposited so far shall be paid to the nominee. A person can open more than one account for different size of installments at any branch of the Bank. 06. acceptable. 10. But. In case of death of a depositor. Loan may be allowed up to 80% of the deposited amount against lien on the same after at least 2 (Two) years of regular payment of installments and minimum limit of 14. 500/-. the loan shall be Tk. year of its opening. 50. or maximum Tk. 09. he/she will have to pay a fine @5% of the overdue amount payable at the time of depositing the next installment 12. Account in the name of minors can be opened too under the Scheme. in the following manner: a.opening of an Account and will not be allowed to change the size of installment afterwards.000/-. The monthly installment shall be payable by the 8th day (in case of holiday the next working day) of every month. 22 . 07. The specified amount on maturity at any slab shall be paid after one month from the date of deposit of the final installment. if any depositor intends to withdraw his/her savings due to certain unavoidable reasons before 5 years. to the legal heirs of the deceased as per rules in force. When a depositor fails to pay 3 (three) consecutive installments at any point before five years term. interest shall be allowed on the deposit at prevailing Savings Deposit rate.

debiting their CD/SB accounts maintained with the concerned Branch. With this end in view. the children are deprived of getting the desired level of education because of the inability of the parents to meet their educational expenses. Colleges and Universities out of the benefit of a small amount of savings with the Bank at an opportune moment.15. 16. 18. But the parents would not feel any difficulty to defray such expenses if a proper financial planning is made much ahead of time. 17. Prime Bank Limited has introduced a Savings Scheme entitled “Education Savings Scheme” in accordance with the principles of Islamic Sariah i. At the time of opening account under CSS customer shall refer his/her SB account number for transferring his/her pension amount or may open SB A/C at the time of maturity for getting monthly pension amount. no charge will be realized for such service. The clients are encouraged to give standing instructions to the Bank to deposit the monthly installments. The salient features of the Scheme are given below: 23 . in case of need of any depositor. The Bank at its discretion may allow inter branch transfer of the A/C under the Scheme. Moreover.2 Education Savings Scheme: The educational expenses particularly the expenses for higher education are sharply increasing day by day in our country. The scheme provides a unique opportunity to the parents to make a future provision for the educational expenses of their children when they enter into Schools. Normally no statement of the account will be served to the depositor. we are receiving demands from the Islamic minded people of our country for an attractive Savings Scheme on the basis of Islamic Sariah so as to encourage them to save in Islamic way for education of their children.e. on the basis of profit and loss sharing. charge @ Tk. 4. In that case.. 10/.per year / per statement shall be realized as cost of paper. Sometimes.

854/.shall be payable or education allowance @ Tk. On maturity a lump sum amount of Tk. 5. 05. 03. The instrument shall be issued for a period of 5 years term. 02. shall be obtained at the time of opening the account. the amount of instrument will be paid to the nominee or. The instrument will be acceptable as collateral security against any investment subject to registering lien with the issuing Branch. Normally no withdrawal will be allowed before maturity. 50. in the absence of a nominee. If the accounts/deposits are closed/encashed after one year of its opening.and multiples thereof but maximum limit of Tk. 04. 85.shall be payable on the basis of deposit amount for next 5 years starting from the completion of the term as per following table. Deposit of Tk. 10.000/. No benefit including interest shall be allowed for pre-mature encashment within one year.382/. The Scheme shall be implemented through all our branches.000/. A specially designed Receipt shall be issued for the deposit under the Scheme in the same manner as issued in case of FDR. Income Tax @10% on interest may be deducted at source at the time of payment of lump sum amount which is given bellow: 06. 50. But if any depositor 09. Photograph of the Nominee and Ultimate Beneficiary. b. the instalments to his ward on monthly instalment basis as stipulated in the scheme. Separate Application form specially designed for the purpose shall be obtained duly filled in and signed by the depositor. to the legal heirs of the depositor on 24 .00. if any.01. 1. Branches shall use the ESS receipts that used for existing scheme. To avail the monthly allowances the depositor is required to surrender the savings instrument to the Bank duly discharged with a written instruction to the Bank to pay 07. intends to withdraw his/her deposit before maturity.per month per Tk. 11. the following rules will be applicable: a. benefit shall be allowed on the deposit at normal Savings Deposit rate.000/at a time will be acceptable under the Scheme. 08. In case of death of the depositor. though it is specially designed for Islamic Banking branches. duly attested by the depositor.

Local as well as foreign payments may be made freely from foreign currency accounts.3 Foreign Currency Account: Bangladesh nationals residing abroad. production of succession certificate. the receipt should be surrendered to the Bank on maturity duly discharged by the nominee and duly authenticated by the legal guardian. No payment in foreign exchange can be made to or on behalf of any resident in Bangladesh. unless generally or specifically authorized by Bangladesh. foreign firms registered abroad and operating in Bangladesh or abroad.12. Payments from these accounts received by residents. 4. must be converted into Taka. • Foreign exchange earned through business done or services rendered in Bangladesh can not put into this account. 13. Credits to a foreign currency account may be made against inward remittances of foreign exchange in any form or by transfer from another FC account. In case of instrument is lost the procedure for issuance of the duplicate will be the same as applicable in case of loss of FDR. and foreign missions and their expatriate employees in Bangladesh can open Foreign Currency (FC) accounts. as admissible under the rules of the scheme. 25 . But if the nominee after the demise of the depositor intends to continue the deposit to enjoy the monthly educational allowance for five years. • • • • Banks may pay interest on such accounts at rates determined from time to time. foreign nationals residing abroad or in Bangladesh.

US dollar. • • • • • • Sale proceeds of currency notes. The account may be opened in pound sterling. drafts etc. The account may be maintained as long as the account holder desires. Euro or Japanese yen. For the same purpose foreign exchange may also be transferred from these account to foreign currency account maintained with other banks. Account holder may operate the account himself or nominate other persons in Bangladesh for this purpose. brought into Bangladesh by the account holder while on temporary visit to Bangladesh provided foreign exchange in excess of US$ 5000 (or its equivalent) is duly declared to the Customs on Form FMJ at the time of their arrival. FC Accounts of Duty Free Shops: Foreign Currency Account in the names of the Diplomatic Bonded Warehouse (duty free shops) licensed by the custom authorities may be opened on the following conditions: • Foreign exchange received only on account of sale of merchandise may be credited to this Account. No initial deposit is required to open this account.FC Accounts of Overseas Bangladesh Nationals: • Bangladesh nationals working abroad or proceeding abroad to take up employment may open foreign currency accounts. • Funds lying to the credit of FC accounts of Bangladesh nationals can be utilized for import of goods and commodities as per Import Policy announced by the Government from time to time. • • 26 . Foreign exchange may be sent abroad only for the purpose of import of merchandise by the bonded warehouse. These accounts should ordinarily be fed by remittances by account holder himself but funds sent by other wage earners may also be placed to the credit of such accounts. traveller’s cheques.

• Only foreign exchange received from the donors/donor agencies to meet expenses of the project can be credited to these accounts. FC Accounts of Bangladeshis Working in Foreign organizations: • Foreign currency accounts may be opened in the names of resident Bangladesh nationals working in foreign/ international organizations operating in Bangladesh provided their salary is paid in foreign currency. FC Accounts of Joint Venture Contracting Firms: • Local and joint venture contracting firms employed by foreign donors/international donor agencies to execute projects in Bangladesh may open foreign currency accounts as per terms of the approved contracts. • Such accounts may be credited only with the foreign currency portion of the salary and debited for all approved current transactions like cost of travel. medical treatment etc.• Foreign exchange from these accounts may be freely converted into Taka at current exchange rates. debits to such accounts being subject to same conditions as mentioned above. • All expenses in foreign exchange as per relevant contract may be met from these accounts. 27 . • Foreign currency accounts may also be credited with consultancy fees/honoraria received in foreign currency by the above mentioned category of residents. education for children.

etc. but .4.(Taka twenty-five lac) shall be acceptable under the Scheme. depositor intends to withdraw his deposit before maturity due to certain unavoidable reasons.000. and in the absence of nominee.00. the deposit will not be encashable before 5 (Five) years.00.4 Fixed Deposit Scheme: This type of deposit should be kept for a fixed term or period. maximum Tk. .00. the account shall cease to be operative and the . 25. 02 The Deposit shall be for a period of 5 (Five) years. 04 Payment of monthly profit shall start from the subsequent month after a clear .000.00 (Taka twenty five thousand) and multiples thereof. b.000/. 1. Investment of fund of Trusts and Foundations. amount deposited so far shall be paid to the nominee. But if any . • • The scheme is designed for the benefit of the persons who intend to meet the monthly budget of their families from the income out of their deposit.000. which award monthly scholarships/ stipends to students. The salient features of the Scheme are given below: 01 Deposit of Tk.00 per Tk. benefit shall be allowed on the deposit at existing normal Savings Deposit rate. refundable on maturity. 06 Normally. Monthly Benefit Deposit Scheme: This is a Deposit Scheme where the depositor gets monthly benefit out of his deposit. No benefit including interest shall be allowed for pre-mature encashment within one year. 28 . The Principal amount is . 25. he would be allowed to do so in the following manner: a. 1. to the legal heirs of deceased as per rules in force. If the accounts / deposits are closed/ encashed after one year of its opening. 05 In case of death of a depositor. Prime Bank Limited deals with the following terms deposit. 03 Profit shall be paid on monthly basis @ Tk. minimum gap of 30 days from date of deposit.

the procedure for issuance of a duplicate will be the . the depositor must have a separate Savings Bank Account with the branch wherein the benefit on the amount so deposited shall be credited every month. 09 The Receipt will not be transferable. from time to .per Tk. 07 Separate Application Form specially designed for the purpose shall be obtained . . 10 Advance against lien on such Receipt can be allowed up to 80% of the deposit . 13 In case the instrument is lost.5 Non-resident Foreign Currency Deposit Account: • All non-resident Bangladesh nationals and persons of Bangladesh origin including those having dual nationality and ordinarily residing abroad are entitled to maintain interest bearing time deposit account named "Non-Resident Foreign Currency Deposit (NFCD) Account" with the Authorized Dealers (ADs). the monthly benefit shall be credited . 12 Payment will be made after deduction of taxes as fixed by the Govt. to the concerned Overdraft/Loan. the difference shall be realized from the principal deposit amount. if and when necessary. N.B. If the amount of monthly profit already paid exceeds the amount payable at normal Savings rate. the same manner as issued in case of FDR. 1.per month for Senior Citizens. time. duly filled in and signed by the depositor.c.000/. 11 During the period of such Overdraft/ Loan. Senior Citizens will get 0. 4.50% higher rate of interest as permissible for all other deposits of our Bank. In addition to this. bearing normal rate of interest prevalent at the time on Overdraft/ Loan. same as applicable in case of loss of FDR. 08 A specially designed Receipt shall be issued for the deposit under the Scheme in . 29 . Monthly benefit shall be Tk. 00. 1042/.

The branch may pay interest on deposits into account at euro-currency deposit rates advised by the Head Office. the amount of interest may be forfeited to the branch. pound sterling. The account is in the nature of term deposits maturing after one month. Euro or Japanese yen. during their assignments abroad may open such accounts. Accounts may also be opened with funds transferred from existing foreign currency accounts maintained by the wage earners with the ADs in Bangladesh. but shore staff posted abroad may open such accounts. In case of premature repayments. • Accounts may be opened against remittances in other convertible currencies after conversion of those into US Dollar. pound sterling. three months. other financial institutions including institutional investors and 100% foreign owned (A -Type) industrial units in the Export Processing Zones in Bangladesh. • • Bangladesh nationals serving with Embassies/High Commissions of Bangladesh in foreign countries as also the officers/staff of the Government/semi-Government departments/nationalized banks and employees of body corporate posted abroad or deputed with International and Regional agencies like IMF. Euro or Japanese yen. initially with minimum amount of US$ 1000 or pound sterling 500 or equivalent. The interest of deposits into this account is exempt from the Tax payable under Income Tax Act. • • • • • • The account holder may be allowed to freely repatriate the balance and the interest accrued thereon in foreign exchange to the country of his residence or 30 .• These accounts may be maintained in US dollar.000 or its equivalent in pound sterling. Euro or Japanese yen. IDB. • Crewmembers of the Bangladeshi shipping companies are not entitled to open such accounts. and ADB etc. Foreign nationals and companies / firms registered and/or incorporated abroad. World Bank. The minimum amount of time deposits in such cases should be US$ 25. six months and one year. banks. are also allowed to open and maintain NFCD account.

5. 4. at his option. (4) and (5) above can be credited to NITA. in Bangladesh. 2. Sale proceeds of the shares/securities purchased through the NITA may also be credited to the NITA. 4. net of taxes payable on such earnings of the non-resident holder. No loan facilities shall be allowed by the AD in the Non-resident Investor's Taka Accounts. convert the balance into Taka at the prevailing exchange rate. 6. The NITA can be operated by the account-holder himself or by a nominee. if any. 7. These balances are also freely remittable abroad in equivalent foreign exchange. received from the issuing company/institution may be credited to the NITA. No local funds from any sources other than those mentioned at (1). 3.6 Non-resident Investors Taka Account: 1. Dividends/interest earnings on the shares/securities bought through the NITA. with freely convertible foreign currency remitted from abroad through normal banking channel or by transfer of funds from the non-resident investor's foreign currency account. Balances in the NITA may freely be used to buy Bangladeshi shares/securities. including the AD itself. The non-resident investor shall open a Non-resident Investor's Taka Account (NITA) with any AD branches of Prime Bank Limited.7 Non-resident Taka Account: 31 .anywhere he chooses and may. 4.

Appendix 03 Income Tax on interest amount shall be as per Government rule on taxation and . and its organizations are. 4. treated as resident accounts and kept outside the scope of Exchange Control. 32 .12.• The Taka accounts maintained with banks in Bangladesh by private individuals.N.00 /Tk.890.00 for the tenor of 5/7/10 years respectively 02. • Non-resident Taka account may.8 Prime Millionaire Scheme: The salient features of the Scheme are given below: 01.7.00 /Tk. The depositor will have the option to choose any instalment size at the time of opening of the A/C. Ref: Table-6.465. 04. • The accounts of foreign nationals residing in Bangladesh and foreign firms and companies located and operating in Bangladesh and accounts of U. and will not be allowed to change the size of installment afterwards. Terminal amount on maturity shall be Tk. however. the Bank reserves the right to deduct Income Tax.570. firms and companies resident outside Bangladesh are known as Non-resident Taka Accounts. 05. be opened without prior permission of Bangladesh Bank for crediting the proceeds of remittances received from abroad through normal banking channel. Monthly installment shall be Tk.4. however. • Prior permission of Bangladesh Bank is necessary for opening non-resident Taka accounts. • The accounts of Bangladesh nationals who leave the country except those who hold office in the service of Bangladesh Government are required to be treated as non-resident Taka account so long they remain outside Bangladesh. A person can open more than one account. 10.00 lac.

06. The installment shall be payable by the 8th day (in case of holiday the next working day) of every month. Advance payment of any number of installments is acceptable. 07. Normally no withdrawal shall be allowed before maturity, If any depositor intends to withdraw his/her deposit due to certain unavoidable reasons before maturity (Min after one year) interest on the prevailing Savings Deposit rate may be allowed. 08. When a depositor fails to deposit any installment, he/she will have to pay a fine @5% of the overdue amount payable at the time of depositing the next installment or maximum Tk. 500/- . 09. When a depositor fails to pay 3 (Three) consecutive installment at any point of time before 2 years term, the customer will cease to remain within the purview of the scheme and scheme will be treated as a Savings Bank deposit and interest will be paid on the deposited amount at prevailing SB A/C rate subject to completion of 1 (One) year of its opening. 10. In case of death of a depositor, the A/C. will cease to be operative and the amount deposited so far shall be paid to the nominee, and in the absence of nominee, to the legal heirs of deceased as per rules in force. 11. The Bank at its discretion may allow inter branch transfer of the A/C under the Scheme. 12. The clients are encouraged to give standing instructions to the Bank to deposit the monthly installments, debiting their CD/SB accounts maintained with the concerned Branch. In that case, no charge will be realized for such service. 13. Normally no statement of the account will be served to the depositor. Incase of need of any depositor, charge @Tk.10/- per year / per statement shall be realized as cost of paper.

4.9 Resident Foreign Currency Deposit Account:

Persons ordinarily resident in Bangladesh may open and maintain Resident Foreign Currency Deposit (RFCD) accounts with foreign exchange brought in

33

at the time of their return from travel abroad.

Any amount brought in with declaration to Customs Authorities in form FMJ and up to US$ 5000 brought in without any declaration can be credited to such accounts. Proceeds of export of goods or services from Bangladesh or commission arising from business deals in Bangladesh shall not be credited to such accounts.

• •

Balances in these accounts shall be freely transferable abroad. Fund from these accounts may also be issued to account-holders for the purpose of their foreign travels in the usual manner (i.e. with endorsement in passport and ticket, upto US $ 1500 in the from of cash currency notes and the remainder in the form of TC).. These accounts may be opened in US Dollar, pound sterling, Euro or Japanese yen and may be maintained as long as the account holders desire. Interest in foreign exchange shall be payable on balances in such accounts if the deposits are for a term of not less than one month and the balance is not less than US$ 1000 or £ 500 or its equivalent. The rate of interest shall be one quarter percent (0.25%) less than the rate at which interest is paid on balances of bank in their foreign currency clearing accounts maintained with Bangladesh Bank.

• •

4.10 Short Term Deposit

A short term deposit (STD) account is a running account with amounts being paid into and drawn out of the account continuously.

These accounts are called Demand Deposits or Demand Liabilities since the banker is under obligation to pay the money in such deposits on demand.

34

These accounts are generally opened by Business Organization, Public Institution, and Corporate Bodies.

• •

An STD account may be opened by an individual person. It is an interest bearing deposit. Interest is calculated on daily basis as per Banks Prescribed Rate and is credited to account on half yearly basis.

35

Chapter-05

Foreign Exchange Division
WHY CHOSEN FOREIGN EXCHANGE
Foreign exchange is the means and methods by which rights to wealth in a country’s currency are converted into rights to wealth in another country’s currency. In banks when 36

we talk of foreign exchange, we refer to the general mechanism by which a bank converts currency of one country into that of another. Foreign Exchange Division (FED) is the international department Bangladesh Bank issues license to scheduled banks to deal with foreign exchange. These banks are known as Authorized Dealers. If the branch is authorized dealer in foreign exchange market, it can remit foreign exchange from local country to foreign countries. So Prime Bank, Principal branch is an authorized dealer.

Foreign Exchange is the means and methods by which rights to wealth in country’s currency are converted into rights to wealth in another country’s currency. In banks when we talk of foreign exchange, we refer to the general mechanism by which a bank converts currency of one country into that of another. Foreign Exchange Division (FED) is the international department/divisions. Bangladesh Bank issues license to scheduled banks to deal with foreign exchange. Those banks are known as Authorized Dealers. If the branch is the authorized dealer in foreign market, it can remit foreign exchange from local country to foreign countries.

5.1 Understanding of FED:
The goods and services sold by Bangladesh to foreign households, businessmen and Government are called export. The export trade of the country is regulated by the Imports and Exports (control) Act, 1950. There are a number of formalities, which an exporter has to fulfill before and after shipment of goods. The exports from Bangladesh are subject to export trade control exercised by the Ministry Of Commerce through Chief Controller of Imports and Exports (CCI & E). No exporter is allowed to export any commodity permissible for export from Bangladesh unless he is registered with CCI & E and holds valid Export Registration Certificate (ERC). The ERC is required to be renewed every year. The ERC number is to be incorporated on EXP forms and other documents connected with exports.

5.2 OBJECTIVE OF THE EXPORT
37

The corporate profile should include: • Company particulars. By working through each of these areas. according to the government’s Winning Exports: A Planning Guide. and freight specifications 5.3 Market Research 38 . country. so you can be better prepared to compete for export markets. packaging and promotional methods. and will be useful when introducing the business to potential customers. products or services.By now you should have analyzed your readiness to export and have done some market research. capabilities. Market Position Your export readiness and potential export success will build from your domestic operations and position in the market. product availability. and employees during your export development. distributors. history. • marketing and growth strategies—target markets. current market position. users. develop a corporate profile of your business. contact and competitor. Increasing export market advantage comes down to the five Cs: company. As a starting point. the marketing variables for your product or service and how you compare with the competition. contact information. Now it’s time to explore your competitive advantages and set your export objectives. any product adaptations. customer. its features and benefits. This document will outline your business functions. It will also become a valuable part of your export plan. price stability (all emphasizing your competitive advantages). • a description of your product or service. finance providers. • your current export objectives—export potential. credentials. we’ll work step-by-step to help develop and refine your export objectives. and how you intend to use these in selected overseas markets. preferred distribution.

And actually visiting your chosen markets is also a likely option (see Step 4. Determining ease of entry will depend on a company’s individual situation. are large or complex. riskiness. you can extend the life of a product that has already reached saturation point domestically. regulations and laws. and select initial markets with low risk and relative ease of entry. An important consideration when selecting your target market is the advantage offered by any particular export market for your product or service. and if you can achieve economies of scale or improve return on investment by extending sales in a larger market. have a familiar banking system. You will need to consider whether your local competitive advantages will be sustained in your proposed export market. whether. Austrade. culture or business practices. Ultimately you will want to identify one or two suitable overseas markets that have the potential to be developed quickly. More difficult markets tend to be further away. are geographically close. When choosing your export markets you will need to balance ease of entry with these market opportunities and establish which countries best match your business based on your research. Visiting Your Market in our upcoming May issue).Choosing your export markets will involve extensive market research in order to assess the best options and reduce risk. As well as your own market research. Easier markets tend to be similar to your domestic market in terms of language. through exporting. have a high level of regulation and complex import requirements or may be a relatively undeveloped market. 39 . state government trade departments. but there are some general characteristics. development costs and your interest in the market. industry associations and market research companies can help with this. which deem a country more ‘easy’ or ‘difficult’ to enter. You can determine the best match by considering the fit between your company and the market in terms of contacts. comfort levels. and similar rules.

selling to Australian-based trading houses or 40 . The key to your success will be to identify and meet the needs of these subgroups whose needs aren’t met by others in the marketplace—this is your competitive advantage. Examples of this type of arrangement include overseas buyers visiting Australia. You will need to determine whether your existing competitive advantage(s) can be transferred to your chosen export market. it’s important to have a clear idea of what drives customers to buy your products or services. your ability to respond quickly to customers. and your relationship with them and others in the industry. expectations and buying patterns.5. Your customers may have varying reasons for purchasing your product so it’s worth breaking down your customers into subgroups.5 Distribution Channel Choosing the best distribution channel for your exports will depend on your product/service. Generally speaking. in order to understand their needs. entering the export market will require some modifications to be made to your business to compete successfully overseas. the quality or value to customers of your product or service.4 Product and Research When choosing the products or services to offer in a new export market. and isn’t necessarily the result of a planned export approach. the local conditions in the overseas market and the long-term costeffectiveness and returns from each option. based on their different requirements. Your competitive advantages can be based on cost. There are several different distribution options: • Indirect exporting involves relying on a third party within Australia. 5.

A strong distribution strategy will encompass several alternatives in the one 41 . that buys your goods and sells them to the local market. • Manufacturing under license (MUL) is an agreement in which an exporter licenses its intellectual property to an overseas company. who then manufactures the goods or delivers the services as if they were their own. subcontracting products/services for an offshore project and appointing an Australian-based consultant or commission agent. They are paid by commission and usually organize the warranty and product service. usually based in your export market. Distributors are also responsible for marketing products. • Franchising involves an Australian franchiser entering an agreement with a franchisee overseas to use a developed business package. • Joint venture is a joint ownership arrangement between you and an entity overseas in which the partners’ shares can vary from 50-50 to a combination in which one partner is virtually a silent participant. Bear in mind that you can use a combination of distribution options. or on a non-exclusive basis.intermediaries. • A distributor is a company or other entity. based in the export market. to sell one or more related products. for a set fee or royalty. even within one country. • Direct exporting involves selling your products/services directly into the export market and dealing directly with your customers from an Australian base. • A representative agent is a sales agent. A greenfield investment implies setting up a business from scratch and requires the exporter to establish all the infrastructure necessary to operate the business. • One hundred percent offshore ownership can involve either establishing an overseas branch office or making a greenfield investment. which can have a significant impact on your export sales. Agents may work exclusively for your company.

5. as well as your point of difference. target country and future target countries. Your statement should be between one and three pages long and briefly cover the company’s export objectives. and do you currently understand customer buying patterns which may impact on your success? Once you’ve answered these questions. This will ensure short-term.7 Export Statement After identifying the five Cs and establishing your export objectives. and are there barriers to entry. and your initial distribution intentions. In assessing the market strength of your competition. weaknesses. you can deal with the outcomes by undertaking a competitive SWOT analysis. 42 . you will be able to incorporate these into an export statement. target customers. how big are they and what is their market share. While doing this. ask yourself how many direct competitors there are for your product or service. compared with your competitors. how well do your competitors meet the needs of customers and to what extent are customers currently satisfied. the key reasons for exporting. and what you hope to achieve. opportunities and threats. ask yourself what are the benefits offered to customers by your competitors.6 Market Channel Prime’ export success will be largely determined by the market strength of your competitors. Through brainstorming with management and key staff. who are these competitors. are there alternative products or services competing with yours. analyse your business’s strengths. low-risk cash flow is available for longer-term growth. competitors and your competitive advantages.market. and compare them with those of your competitors. to determine point of difference. which will impact on your success? Then. This will explain why you intend to export. also think of how your company appears in the eyes of your export customers. how you will go about it. what you are planning to export. 5.

43 . imports represents purchase of goods and services that not even produced or purchased but insufficient in a country. investment or government. International trade helps to produce domestic production.10 Import Procedure: Definition of Import: Import means goods and services purchased from foreign sources. 5.9 Authorized Dealership: The bank. These imports may be used for consumption.As you continue through the export process you will continually refine both your export objectives and your corporate profile. The following papers / documents are required for submission to CCI & E for Import Registration Certificate. Your export statement will become a critical part of your export plan. 1950 no person can indent. Whatever their use. Through public notice or import policy the chief controller of import and exports invites application usually for registration of importers. and amend your export statement accordingly. 1947 is called Authorized Dealership. import or export any goods in to Bangladesh except incase of exemption issued by the government of the Peoples Republic of Bangladesh. 5. Consumers get privilege through international trade. 5.8 Importance of Foreign Exchange Business in our Economy: • • • • International trade gives exchange opportunity of goods. Procedure for obtaining IRC: As per Import & Export control Act. So for doing import business at first every importer should obtain Import Registration Certificate. Natural assets of a country are to be utilized property. which is authorized by Bangladesh bank for dealing foreign exchange business on transaction under the FER Act.

Membership Certificate. Partnership Deed (For partnership firm) Certificate of Registration with the Register of Joint Co. & Articles and memorandum of Association in case of Limited Company. Income tax registration certificate with GM. Nationality Certificate. Bank Certificate. The duplicate copy of the same bearing the acknowledgement of CCI & E office of the receipt of the document is received by the bank and is preserved. Sales Contract. The nominated of the applicant will examine the papers/documents and verify the signature of the applicant and forward the same to the concerned office of the CCI & E with a ford wing schedule in duplicate though bank representative. 44 . Trade license. Import: Basis of • • • • • Performa invoice Indent. 5. Special trade agreement.• • • • • • • • Application form.11 Letter of Credit Definition of L/C: Letter of credit is an undertaking giving by the issuing Bank on behalf of its customers to pay a certain some of money to a certain person (beneficiary) on the fulfilment of certain terms of conditions as laid down in the letter. Barter system.

7. which are to accompany the bills. Green clause L/C. List of shipping document. Stand by L/C. 6. Revocable L/C. 45 . Red clause L/C 3. 5. 13. 2. Restricted L/C. The Clauses Contained In a L/C: • • • • • A clause authorizes the beneficiary to draw bills of exchange up to certain on the opener. Circular L/C. 4. Confirmed L/C. Instructions to the negotiating bank for obtaining reimbursement of payments under the credit. Transferable L/C. Description of the goods to be shipped An undertaking by the issuing bank that bills drawn in accordance with the conditions will be duly honoured.Classification of L/C: 1. Back-to-Back L/C. 10. 9. Devisable L/C. 11. Revolving L/C 8. 12. Straight L/C. Irrevocable L/C.

Parties involved in a Letter of Credit: Importer/Buyer Opening Bank Exporter/Beneficiary Advising Bank 46 .

Negotiating Bank Confirming/Reimbursing Bank 47 .

07 48 .958.938.7th June 2007 13. of L/C Opened July 2005.Position of Import L/Cs In Million US$ Particula rs No.18 15.7 2006 th June July 2006.

Exporter/Beneficiary: Exporter/Beneficiary is the party in whose favor the L/C is established. Opening/Issuing Bank: The opening/issuing bank is the bank which opens/issues a L/C on behalf of the importer. It is also called the importer's /buyer's bank. Advising /Notifying Bank The advising/Notifying bank is the bank through which the L/C is advised to the exporting country & it may be a branch of the opening bank or a correspondent bank. It may also assume the role of confirming and /or negotiating bank depending upon the conditions of the credit. Negotiating Bank: 49 .Importer/Buyer: Importer/Buyer is the party who opens L/C on behalf of exporter by issuing bank.

H. LCA number 50 . the stamp is cancelled.Negotiating bank is the bank that negotiates the bill & pays the amount to the beneficiary. L/C Application: Prime Bank Limited provides a painted form for opening of L/C to the importer. Date & place of expiry of the credit. The advising bank & the negotiating bank may or may not be one & the same. which would reimburse the negotiating bank. While opening. Whether the partial shipment is allowed or not. Sales terms (FOB/CIF/C & F). The mode of transmission of document (courier/mail/telex) Whether the confirmation of the credit is requested by the beneficiary or not. The type of loading (loading on boarding). code number of the goods to be imported. Availability of the credit by sight payment acceptance/deferred payment.S. The importer gives the following information is that form: • • • • • • • • • • • • • • • • Full name & address of importer. Reimbursing: Bank reimbursing bank is the bank. Brief description of the goods to be imported. A special stamp is attached on the form. L/C amount. It is to be nominated by the issuing bank. It has to carefully scrutinize the documentary credit before negotiation in order to see whether the documents apparently are in order or not. Shipping mark. The time bar within which the document should be presented. Account number. IRC number.

the credit should be amended. service & telex charge is debited from the party account.• • • • • • Insurance cover note. which gives description of the goods including quantity. 51 . The above information is given along with the following documents. Transmission of L/C: The ways of transmission of L/C are as follows i) Through SWIFT ii) Through Telex iii) Through DHL or FEDEX iv) Through Emergency Mail Service (EMS) Amendment of Letter of Credit: Parties involved in a L/C cannot always satisfy the terms & conditions in full as expected due to some unexpected reason. In case of revocable credit. Unit price etc. But in case of irrevocable L/C. it can neither be amended nor cancelled without the agreement of the issuing bank. In such a situation. it can be amended or cancelled by the issuing bank at any moment & without prior notice to the beneficiary. Country of origin. the advising bank & the beneficiary. Four set of IMP form. Issuing Company &the insurance number. Proforma Invoice. The insurance cover note. PBL transmits the amendment by tested telex to the advising bank. If the L/C is amended.

Insufficient number of Commercial Invoice. If the documents are found in order. Submission of documents after expiry of Letter of Credit. Certificate of Origin. After receiving the documents.Presentation of the Documents: After the exporter /seller is being satisfied with the terms & conditions of the credit. Packing List. Unsigned document. Pre-shipment Inspection report. 52 . Insurance Cover Note. the bank will negotiate to the issuing bank. Then he/she has to present the documents evidencing dispatching of goods to the negotiating bank within the stipulated expiry date of the credit. Description of the goods is not consistent with that of L/C. Some important documents are not presented. the negotiating bank checks them against the credit. in our case with PBL. Shipment Certificate. PBL also checks the documents. Partial shipment is beyond L/C limited /terms. Bill of Lading. Commercial Invoice. The usual documents in a Letter of Credit are the following: • • • • • • • • Bill of exchange. he/she then proceeds to dispatch the required goods to the importer. Common Discrepancies of the Import Documents: Most common discrepancies that are found 'in import documents are giving below: • • • • • • • Wrong tenor shown in the bill of exchange.

endorsement is made on the bank of the B/F.as Received Payment & the B/L is endorsed as Please delivery to the order of M/S--------" under two authorized signatures of PBL's officers (P. if necessary. After repairing the necessary vouchers. Then the documents are given to the Importer. In this case. although both are part of the same business operation. Insurance cover note with money receipt. holders). Valid Import Registration Certificate (IRC) & Export Registration Certificate (ERC). Documents that are required to submit for opening a back-to-back L/C are given below: • • • • • • Master L/C.If any major discrepancy found in the document it is immediately informed the Importer for his opinion. It is intended that the exporter would substitute his own documents and ships the goods to the importer. L/C application & LCA form duly filled up & signed. the bank's main security is the original credit (selling credit) and the back to back credit (buying credit) is separate instruments independent of each other. Back-to-Back Letter of Credit: A back-to-back letter of credit is a new credit. It is different from die original credit based on which the bank undertakes the risk under the back-to-back credit. 53 . The supplier (beneficiary of the back to back credit) ships goods to the importer or supplies goods to the exporter and presents documents to the bank as if specified in the credit. Export L/C is marked lien and no margin is taken. and present documents for negotiation under the original credit. his liability under the back-to-back credit would be adjusted out of these proceeds. Proforma Invoice or Indent. Duly singed IMP form.A.

If lie is a new customer. 6.g. insurance policy) from relevant parties. he obtains payment immediately upon presentation of documents. 9. 4. he prepares his own documents and collects transport documents or other documents (e. The importer and exporter have made a contract before a L/C is issued. known as advising bank. which is acting as the negotiating bank.Various Steps involved in the Operation of Letter of Credit: 1. which is channelled through its overseas corresponding bank. Documents are sent to issuing bank (or reimbursement bank which is a bank nominated by the issuing bank to honor reimbursement from negotiation bank) for reimbursement or payment. Advising bank informs the exporter (the beneficiary) of the arrival of the L/C. 5. If not. All these documents will be sent to his banker. 3. Issuing bank opens the L/C. Negotiation of export bills happens when the banker agrees to provide him with finance. 54 . 2. Meanwhile. 10. 20% deposit on credit amount. Exporter ships the goods to the importer or other designated place as stipulated in the L/C. In such case. 8. margin deposit may be required: e.g. Importer applies for a letter of credit from his banker known as the issuing batik. He may have to use his credit lines. the documents will be sent to the issuing bank for payment or on an approval basis as in the next step. Issuing bank honors it's undertaking to pay the negotiating bank condition that the documents comply with L/C terms and conditions. 7. Issuing bank releases documents to importer when the letter makes payment to the former or against the latter's trust receipt facility.

which an exporter has to fulfil before & after shipment of goods. Bank Certificate. Payment of Registration fees and renewal fees in a Treasury Bill. Income Tax Clearance Certificate. an EXP issued to the exporter.5. The import and export trade in our country is regulated by the Imports & Exports (Control) Act.12 Export Procedure of PBL Export is one of the most important activities that can increase economic and social well being through transaction of goods and services from domestic economic agent to foreign economic agent for which domestic economic agents receive payments. For obtaining Export Registration Certificate Bangladeshi exporters are required to apply to die controller of Import & Export in the prescribed from along with the following documents: • • • • • • Nationality and assets Certificates. preferably in valuable foreign currency. There are some formalities. 1950. Trade License issued by the Municipal Authority. Memorandum and Articles of Associates and Certificate of incorporation in case of Limited company. the exporters have to get valid export registration certificate (ERC). 55 . The export procedure follows the following steps: Registration of Exporters: Under the export policy of Bangladesh. Obtaining EXP: After getting ERC the export applies to PBL (or any other commercial Bank) with trade license & if the bank is satisfied.

56 . He can do this by contacting the buyers directly through correspondence. Buyer's Local Agent. exporter should ask the buyer for letter of credit (L/C) clearly stating terms and conditions of export and payment. Signing the Contract: While making a contract. The following are die main points to be looked into for receiving/ collecting export proceeds by means of Documentary Credit: • • The L/C is an irrevocable one. In this purpose exporter can get help from: • • • • • • Liaison Offices. Trade Fair etc. the following points are to be motioned: • • • Price of the goods Describe of the goods Quantity of the goods Export Letter of Credit: After getting the contract for sale. Export Promoting Organization' Bangladesh Mission Abroad. preferably confirmed by the bank. Chamber of Commerce (Local & Foreign).Securing of Order: After getting the ERC the exporter may proceed to secure the export order. The L/C allows sufficient time for shipment and negotiation.

the next s for the exporters is to set about the task of procuring or manufacturing contracted merchandise. 57 . If documents are clean. An officer scrutinizes all the documents. • • • • • • • • • • • • EXP Form ERC (valid) L/C copy Customs duty certificate Shipping instruction Transport Documents Insurance Documents Invoice Bill of Exchange (if required) Certificate of origin Inspection Certificate Quality Control Certificate Now exporter submits all these documents along with a Letter of Indemnity PBL for negotiation. This is known as Foreign Documentary Bill Purchase (FDBP).Procuring the materials: After making the deal and on having the L/C opened in his favor. Shipment of goods: The following are the documents normally involved at the stage of shipment. PBL purchase the documents on the basis of bad customer relationship.

Full set of bill of lading not presented. Documents inconsistent with each other. Cuttings/alternations in documents not authenticated. Absence of signature. If the exporter is a new customer. If the banker is in doubt. on documents presented. Late shipment. 58 . Packing list not submitted.Forwarding Foreign Bills for Collection: • • • • If the documents have discrepancies. Notify party differs /not as per L/C stipulation. where required. Credit (L/C) expired. Bill of Lading does not evidence whether freight is paid or not. Foreign Documentary Bills of collection signifies that the exporter will receive payment only when the issuing bank gives payment. Certificate of country of origin not provided. Description of goods on invoice differs from that in the credit. Documents not presented 'in timed / stale bill if lading. Wightman certificate not presented. Common Discrepancies: PBL officials usually find the following discrepancies while checking the abovementioned documents: • • • • • • • • • • • • • • • • On board nation of in Bill of lading undated/ unauthenticated. Shipment effected from port other than that stipulated in the credit. Credit (L/C) amount exceeded.

00 0. 17. 7.30 8. Health certificate (fit for human consumption) not submitted.646. Unit price not mentioned in invoice. Export(2004-2008) Figure(in Million) 10.000.00 4.8.33 7.84 million which was TK. 557.776.557.000.967.00 8.296.771.000. 59 .000.00 4.000.776. 16. Total export business was TK.30 million in 2005.00 The volume of import business handled by the bank during 2006 was TK.00 million compared to Tk.00 6.30 million of the preceding year.• • • Inspection certificates not submitted.00 2.56 million. Total amount received by PBL in 2006 was more than US $ 52.559.65 4.00 2004 2005 2006 2007 2008 5.

Types of Remittance: • • • • • Between banks and non banks customer Between banks in the same country Between banks in the different centers.13 Local Remittance Carrying cash money is troublesome and risky. The main instruments used by the Prime Bank of remittance of funds are: 1.5. That’s why money can be transferred from one place to another through banking channel. Demand Draft ( DD) 3. This is called remittance. Telegraphic Transfer (TT) So the basic three types of local remittances are discussed below: Points Explanation Pay Order Pay Order gives the payee the right to claim payment from Demand Draft Demand Draft is an order of issuing bank on another branch of the same bank to pay TT Issuing branch requests another branch to pay specified money to the specific payee on demand by the issuing bank specified sum of 60 . Between banks and central bank in the same country Between central bank of different customers. Payment order ( PO) 2. Remittances of funds are one of the most important aspects of the Commercial Banks in rendering services to its customers.

Receive advice Commission Telephone + Charge Only commission Cheque may be dishonoured for any one of the following reasons: • • • • • • • • Insufficient fund. Confirm Payee A/C 3.money to payee on Payment from issuing branch only Within the clearinghouse branch. Payment from ordered branch Outside the clearinghouse area of issuing branch. Make payment 5.dated. Confirm that the DD 1. 1. Check the ‘Test Code’ 4. Other specific reasons not mentioned above. Make payment Commission + telex charge branch 2. 2. Drawer’s signature differs / required. Payment is Payment Process of the paying bank made through clearing demand. Confirm issuing is not forged one. Crossed cheque to be presented through a bank. 61 . Payment stopped by the drawer. Payee’s endorsement irregular / illegible / required. Amount in figure and word differs. Confirm with sent advice 3. Payee can also be the Telegraph /Telephone Payment from ordered branch Anywhere in the country Payment from Generally fund used to Remit area of issuing purchaser. Cheque out of date/ post. Confirm amount 4.

Remittance Procedures of Foreign Currency: There are two types of remittance: 1. the legal tender. 62 . The basic function of this department are outward and inward remittance of foreign exchange from one country to another country. Party‘s signature required in the return register to deliver the dishonor cheque.14 Foreign Remittance This bank is authorized dealer to deal in foreign exchange business.The dishonor cheque entry in the Return Register & the party is informed about it. the cost (convention value) being paid by the buyer in home currency. Inward remittance 2. The conversion of one currency takes place into another at an agreed rate of exchange which the banker quotes one for buying and another for selling. As an authorized dealer. In the process of providing this remittance service. it sells and buys foreign currency. the return cheque is sent to the party’s mailing address with Return Memo. 5. Outward remittance. In such transactions the foreign currencies are like any other commodities offered for sales and purchase. a bank must provide some services to the clients regarding foreign exchange and this department provides these services. After duration.

Purchase of foreign exchange is to be reported to Exchange control Department of Bangladesh bank on Form-C. as well as sell of foreign exchange under L/C and against import bills retired. If any unused leaf of TC is surrendered bank buys it from the customer.1. etc. All payments are made in local currency.D.. 63 .T. Modes of Remittance: The remittance process involves the following four modes: Bank sells Dollar / Pound for using in abroad by the purchaser. Customers can encase Issue Traveler’s Cheque (TC) Buying Of TC TC of the TC in abroad from the drawer bank. Outward Foreign Remittance: Outward remittance covers sales of foreign currency through issuing foreign T.C. 2. TC is alternative to holding cash and it provides better security than holding cash in hand. D. T. Travelers Check etc. sent from abroad favouring a beneficiary in Bangladesh. Most dollars purchased comes from realization of Export Bill of Exchange. and bills. The maximum amount of such sell is Cash Remittance Dollar/ Pound Purchase Sell mentioned in the Bangladesh Bank publication of ‘Convertibility of Taka for Currency Transactions in Bangladesh’.T. Banks generally buy only those TC. Drafts. Bank can purchase dollar from resident and non – resident Bangladeshi and Foreigner. TC is useful to traveller abroad. Inward Foreign Remittance: Inward remittance covers purchase of foreign currency in the form of foreign T.

The payee can collect it for the drawer bank in which the Issuing bank of Demand Draft holds its NOSTRO Account. It also makes payment according to telegraphic message of its foreign correspondence bank from the corresponding VOSTRO Account.Outward Telex Transfer TT Incoming TT It remits fund by tested TT via its foreign correspondence bank in which it is maintaining its NOSTRO Account. Bank also makes payment on DD drawn on this bank by its foreign correspondence bank through the VOSTRO Account. 64 . Bank issue Demand Draft in favor of purchaser or any other Foreign Demand Draft according to instruction of purchaser.

CHAPTER: 6 PERFORMANCE EVALUATION OF PRIME BANK 65 .

It helps the organization to identify how to evaluate its performance and scan the macro environment. Weaknesses. and Threats.SWOT Analysis Ratio Analysis Competitive Performance What is SWOT? 1. which helps the organization to navigate in the turbulent ocean of competition. 66 . Opportunities. SWOT is an important tool for evaluating the company's Strengths.

In SWOT. Location of your business. Opportunities and threats are external factors. 3. innovative product or service. Strengths and weaknesses are internal factors. For example: strength could be: • • • Your specialist marketing expertise. SWOT stands for strengths. 67 . opportunities. and threats. strengths and weaknesses are internal factors. A new. It is the first stage of planning and helps marketers to focus on key issues. SWOT analysis is a tool for auditing an organization and its environment. weaknesses.SWOT ANALYSIS Of PRIME BANK Internal Environment External Environment Strengths Weakness Opportunity Threats 2.

A weakness could be: • • • • • Lack of marketing expertise. Price wars with competitors. A competitor has a new. innovative product or service. Moving into new market segments that offer improved profits. in relation to your competitors). SWOT analysis can be very subjective. joint ventures or strategic alliances. Two people rarely come-up with the same final version of SWOT. A word of caution. Taxation is introduced on your product or service. opportunities and threats are external factors. TOWS analysis is extremely similar. A new international market. A market vacated by an ineffective competitor. In SWOT. Undifferentiated products or services (i.• • Quality processes and procedures. 68 . For example: An opportunity could be: • • • • • A developing market such as the Internet. Do not rely on SWOT too much. So use SWOT as guide and not a prescription. Poor quality goods or services. Damaged reputation.e. A threat could be: • • • • • A new competitor in your home market. Mergers. It simply looks at the negative factors first in order to turn them into positive factors. Competitors have superior access to channels of distribution. Location of your business. Any other aspect of your business that adds value to your product or service.

This facilitates the organization to make their existing line of performance and also foresee the future to improve their performance in comparison to their competitors. it can also be considered as an important tool for making changes in the strategic management of the organization. Always apply SWOT in relation to your competition i. opportunity and threat. STRENGTHS:  Prime Bank Limited has already established a favorable reputation in the banking industry of the country. Avoid complexity and over analysis SWOT is subjective. SWOT should always be specific. an organization can also study its current position. and where it could be in the future. As though this tool. SWOT analysis should distinguish between where your organization is today. • • • • • PRIME’S SWQT ANALYSIS SWOT analysis is the detailed study of an organization’s exposure and potential in perspective of its strength.Simple rules for successful SWOT analysis. Keep your SWOT short and simple. weakness. It is one of the leading private sector 69 .e. Avoid grey areas. better than or worse than your competition. • Be realistic about the strengths and weaknesses of your organization when conducting SWOT analysis.

potential customers. As a result the services of the bank seem to be Deus in the present days. Prime Bank has provided its banking service with a top leadership and management position. Prime Bank or Dutch Bangle Bank etc. The banks not have any long-term strategies of whether it wants to focus on retail banking or become a corporate bank. WEAKNESS:  The main important thing is that the bank has no clear mission statement and strategic plan. But the bank has to compete with the Multinational Bank located here.  Prime Bank Limited has already achieved a high growth rate accompanied by an impressive profit growth rate in 2001. Prime Bank has to expand their business portfolio.  The bank failed to provide a strong quality-recruitment policy in the lower and some mid level position. and expertise will continue to contribute towards further expansion of the bank. skill. The path of the future should be determined now with a strong feasible strategic plan. OPPORTUNITY:  In order to reduce the business risk. The top management officials have all worked in reputed banks and their years of banking experience.commercial banks in Bangladesh. The management can consider options of starting merchant banking or diversify into leasing and insurance sector.  Prime Bank has the reputation of being the provider of good quality services for its.  The poor service quality has become a major problem for the bank. The quality of the service at Prime Bank is higher than the Dhaka Bank. The bank has already shown a tremendous growth in the profits and deposits sector. 70 . The number of deposits and the loans and advances are also increasing rapidly.

Prime Bank has to remain vigilant about this problem so that proactive strategies are taken to minimize this problem if not elimination.  Opportunity in retail banking lies in the fact that the country’s increased population is gradually learning to adopt consumer finance. In this competitive environment Prime Bank must expand its product line to enhance its sustainable competitive advantage. Investment in the secondary market governs the national economic activity. All sustain multinational banks and upcoming foreign.  A large number of private banks coming into the market in the recent time. they can introduce the ATM to compete with the local and the foreign bank. Activity in the national economy controls the business of the bank. They can introduce credit card and debit card system for their potential customer. In that product line. So a wide variety of retail lending products has a very large and easily pregnable market. The activity in the secondary financial market has direct impact on the primary financial market. The bulk of our population is middle class. Banks operate in the primary financial market. 2. The default risks of all terms of loan have to be minimizing in order to sustain in the financial market. Because default risk leads the organization towards to bankrupt. If that happens the intensity of competition will rise further and banks will have to develop strategies to compete against an on slough of foreign the banks. Different types of retail lending products have great appeal to this class. THREATS: 1. private banks posse’s enormous threats to Prime Bank Limited. Calculation of Ratio Analysis 71 .

69 % 9.75 % 42.81% 8.57% 12.88 28.46 Competitive Performance Table.70 % 22.40 14.93 8.28 46.76 17.73% 14.26 % 6.69% 23.66 % 90.98 Profit Margin Ratio(PMR) Return on Assets(ROA) Return on Equity (ROE) (%) NI÷SALES 6.03 % 26.05 % 10.75% NI÷TA 3.93 % 10.Theoretical Aspect An asset that can be converted to cash quickly without having to reduce the asset prices very much NAME of the Bank Prime BANK Limited 2008 PARTICULAR FORMULA 2007 2006 2005 2004 INDUSTRY AVERAGE COMPANY AVER -AGE 10.8: Competitive Performance: Fiscal Year-2008 72 .82 NI÷SE 51.

30 12. Al-Arafah Islami Bank Ltd. EXIM Bank 3. In Million) 40.631.296. NCC Bank Amount of Import in 2005 (Tk.Banks Name 1.10 21. 6. Prime Bank 2.60 16.21 26. Bank Asia 5.00 41.303. The City Bank 4.352.363.30 73 .432.

74 .

646. In Million) 52.625. Prime Bank 2. Bank Asia 5.39 31.40 17.639. NCC Bank Amount of Import in 2006 (Tk. 6.00 49.596.73 32. EXIM Bank 3. Al-Arafah Islami Bank Ltd.80 75 . The City Bank 4.9: Competitive Performance: Fiscal Year-2008 Banks Name 1.821.60 18.096.Table.

76 .

61 19.Figure – 12: Comparison of Growth rate Banks Name Growth Rate (%) 2007-2008 Prime Bank EXIM Bank The City Bank Al-Arafah Islami Bank Ltd.71 50.29 Analysis 77 .01 49. Bank Asia NCC Bank 30.24 20.00 8.

For example. whereas some other Banks has moved ahead just a littlie more.29%. whereas Prime Bank has increased their growth rate only 8. In this challenging situation to compete with other banks and to face the ever changing dynamic word of Import business Prime Bank should try to more concentrate on retaining their present growth rate and maintaining stability in the upcoming years. we can come to this point that Prime Bank has satisfactorily maintained its growth rate of the past few years and has kept its import business in a stable position.From all the data analyzed here. during the year 2007-2008 The City Bank has achieved a growth rate of about 50. Some Banks in contrast with Prime Bank has rapidly improved their market growth and position.24%. 78 .

Chapter: 7 79 .

‡ Recommendation of the Study ‡ Findings of the Study ‡ Conclusion 80 .

RECOMMENDATION 1) People have no way but to come to the NCBs for high financing. it will be better for the bank. so proper monitoring is necessary. The ways can be recommended as: o Skilled human resource o Proper training and technology savvy o Minimize risk at the root level o Smooth service and less time consumption regarding advance o Avoid force loan as minimum as it can. 4) A complain book for the employs. so the operation and way of getting loans and advance need to be much sharpened. if the authority does not tale care of it the percentage of switching other banks will become acute. 3) A company book regarding service offered by the bank and accountability and proper monitoring strengthen the services. 5) Interpersonal relationship needs to be built among the employees and superiors. 2) It can be recommendation that if all the branch of Prime Bank maintains a vivid account manual for the account holder. because each and every complaint form the customer has been received and complaints from the employees overlooked. 81 . 7) Absenteeism. Low salary divert employees to think other things. 6) It has been seen mat the orders and message does not convey to the designated person.

 Prime Bank Ltd.  Credit facilities of Prime Bank are more dynamic and less time consuming than other banks.  HR department of Prime Bank Ltd. All of these are well designed in this organization.  Personnel Research and Information system is created and updated based on branch information.  This Bank helps that customer who is engage in export & import business. The following general policy guidelines govern the implementation of the business strategy of Prime Bank with respect to credit & foreign exchange risk. Provides a better planning and compensation package to their employees which well enough compare to its peer group. 82 .8) Improved customer service and consequently satisfactory operational results of NCBs are also evident following competition from banks in the private sector. Findings of the Study: Prime Bank’s General Banking & Credit/Investment Departments missions are to actively participate in the growth and expansion of our national economy by providing credit & foreign exchange facility to viable borrowers. authority and systems will be organized and integrated across organization units and in individual jobs. has a well established HR department.  How tasks. efficiently delivered and competitively priced. consisting lots of talented personnel.

but is considered with extreme caution and also secured by first class or other acceptable collateral.  Bank requires that borrowers have a source of repayment established at the inception of the credit. and that any exception must be specifically addressed in the approval of credit.  It is follows the Islamic rules in every part of general banking.  Most of the Loan products of Prime Bank of similar types.  This Bank does not extend credit where it does not have the industry knowledge or highly specialized skills needed to properly evaluate the proposal.  General banking side provides different types of deposit & credit department extended loan facilities to the general customer. self-liquidating transactions.  This Bank unsecured lending practices favour extensions of credit for short term.  This Bank extends venture capital to start up business or to businesses. It is does not extend any credit facility against cheque or pledge of goods. This Bank makes loan only to reputable clients who are involved in legitimate business activities and whose income and wealth are derived from legitimate sources.  It is engages primarily in the extension of credit in Bangladesh Taka or in the same currency as the collateral. 83 . which are entirely dependent on new technologies.

Conclusion Lot of new commercial bank has established in last few years and the bank has made this banking sector very competitive. Modern banking is an outcome development driven by changing financial activities and lifestyle. attitude and methods in banking have undergone a marked change all over the world. We moved a long way from the time when the banks were deposit taking and money lending institution. It is great pleasure for me to have practical exposure it couldn’t be possible for to compare the theory with practice. Banking sector is no more depends on traditional system o banking. As an internee of Prime Bank Bangladesh. So objective of the internship program have not been fulfilled with complete satisfaction. 84 . Bangladesh has not lagged behind. Elephant Road branch I have truly enjoyed my internship from the viewpoint of learning and experience. banks have to organize their operations and do their operations according to their need of market. So. Through the department s and sections are covered in the internship program. Banks are required to participate in the nation building activities and act as agent for bringing about socioeconomic changes. I am confident that three months internship program in Prime Bank Bangladesh will definitely help me to realize career in the job market. it is not possible to go to the depth of each activities of branch because of time limitation. highest effort has been given to achieve the objectives f the internship program. However. The old concepts. During the course of my practical orientation I have try to learn the practical banking to realize my theoretical knowledge what I have gathered and going to acquired from my various courses.

So in conclusion it can be said that every organization has its positive as well as negatives and Prime Bank Bangladesh limited existence of the later one is les then the earlier one and as the management is determined to reach the pick of success it seems that in near future the negatives will be eliminated. Prime Bank Bangladesh limited is the first growing bank and its contribution in our economy is also considerable. Eight is a short span of time and the organization. We hope that Prime Bank will expand its services by expanding its branch all over the country.So in conclusion it can be said that every organization has its positive as well as negatives and Prime Bank Bangladesh limited existence of the later one is les then the earlier one and as the management is determined to reach the pick of success it seems that in near future the negatives will be eliminated. At last it can be said that. which can be established itself as one of the most reputed private commercial bank in the country within a short period deserves special credits and with their able leaders Prime Bank will the highest level of success very shortly. At last it can be said that. which can be established itself as one of the most reputed private commercial bank in the country within a short period deserves special credits and with their able leaders Prime Bank will the highest level of success very shortly. I wish the banks all success prosperity in their field. Eight is a short span of time and the organization. I wish the banks all success prosperity in their field. Prime Bank Bangladesh limited is the first growing bank and its contribution in our economy is also considerable. 85 . We hope that Prime Bank will expand its services by expanding its branch all over the country.

 References  ACRONYMS/Abbreviation 86 .

Singapore.com  www . Effective Business Communication. Harcourt Asia Pte Ltd Ninth Edition. Eugene (2007). sixth Editions.bangladeshbank. Investment analysis & Portfolio Management Harcourt College pvt ltd. Magazines & Reports:  Prime Bank. International Edition. Herta A (2006).com 87 .prime-bank. Annual Report 2005  Internet: www.  Reilly k. Thomson. Seven Editions. Frank & Brown C.  Madura jeff (2006). Annual Report 2006  Prime Bank.REFERENCES’ BOOKS Books:  Brigham F. 13th edition Besley and Brigham  Murphy. McGraw Hill Book Co. Fundamental of Financial Management Singapore. South Western.  Essential of Managerial Finance. International Financial Management United States of America. Annual Report 2007  Prime Bank. Keith (2004).

O: Units: 10 Million: 1 Core 1 Million: 10 Lac A/C AD Account Authorized Dealer Credit Information System Lending Risk Analysis Cash Reserve Requirement SLR: Statutory Liquidity Reserve Management Information System Automated Teller Machine Saving Bank Deposit Rural Credit Division Industrial Credit Division Nationalized Commercial Bank Telegraphic Transfer Demand Draft Credit Card Pay Order 88 .Abbreviation in this Report CIB: LRA: CRR: MIS: ATM: SB: RCD: ICC: NCB: T.C: P.T: D.D: C.

B/L BB BOE CCI & E CFR CIB CIF DD DP Note EPB EXP FC FDD FOB HS Code IBC IBCA IBDA IMP IRC L/C LCAF OBC PO PSI SWIFT TC TIN TR TT Bill of Lading Bangladesh Bank Bill of exchange Chief Controller of Import & Export Cost & Freight Credit Information Bureau Cost Insurance & Freight Demand Draft Demand Promissory Note Export Promotion Bureau Export Form Foreign Currency Foreign Demand Draft Free On Board Harmonized system of coding Inward Bills for Collection Inter Branch Credit Advice Inter Branch Debit Advice Import Form Import Registration Certificate Letter of Credit Letter of Credit Authorization Form Outward Bills for Collection Payment Order Pre Shipment Inspection Society for Worldwide Inter bank Financial Travellers Cheque Tax Identification Number Truck Receipt Telegraphic Transfer 89 .

STD FDR CC C&F CRF ERC IBCT LIM LTR PAD SOD UCPDC Short Term Deposit Fixed deposit receipt Cash Credit Clearing & Forwarding Clean Report Findings Export Registration Certificate Inter branch Credit Transaction Loan Against Imported Merchandise Loan Against Trust Receipt Payment Against Document Secured Overdraft Uniform Custom & Practice for Documentary Credit 90 .

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