INTERNSHIP REPORT

ON
The Performance of Foreign Exchange Department of Janata Bank Limited,
DMCH Corporate Branch
[An Internship Report for the Partial Fulfillment of the Requirements for the BBA 2019]

Submitted To
Department of Finance and Banking
Jatiya Kabi Kazi Nazrul Islam University

Supervised By

Monty Adittya
Assistant Professor
Department of Finance and Banking
Jatiya Kabi Kazi Nazrul Islam University

Submitted By

Md. Shamim Ahmed Khan

ID. No: 16132637
Registration No: 5053
Session: 2015-2016
Department of Finance and Banking
Jatiya Kabi Kazi Nazrul Islam University

Department of Finance & Banking

Jatiya Kabi Kazi Nazrul Islam University
Trishal, Mymensingh

Submission Date: 20-08-2020

 Letter of Transmittal

Date: 20th August, 2020

Monty Adittya
Assistant Professor
Department of Finance and Banking
Jatiya Kabi Kazi Nazrul Islam University

Subject: Prayer for the submission of an internship report.

Dear Sir,
With due respect that, I am delighted to submit my internship report on “
The Performance of Foreign Exchange Department of Janata Bank Limited, DMCH
Corporate Branch”. This report gives me vast experience and valuable knowledge about
the Foreign Exchange Performance of Janata Bank Limited. I had tried my best to collect
information on this report.
Finally, I would like to thank you for your valuable guidance and support in preparing
this report. I would be grateful for any clarification when required. I will be highly
obliged if you are kind enough to approve this report and provide your valuable judgment
on it.

Sincerely yours

Md. Shamim Ahmed Khan

ID. No: 16132637
Registration No: 5053
Session: 2015-2016
Department of Finance and Banking
Jatiya Kabi Kazi Nazrul Islam University

i
 Certificate of Supervisor

This is to certify that Md. Shamim Ahmed Khan is a student of BBA program, ID No:

16132637 has been successfully completed his internship program entitled “The

Performance of Foreign Exchange Department of Janata Bank Limited, DMCH

Corporate Branch”. Under my supervision as a partial fulfillment of the award of BBA

program, major in Finance and Banking from Jatiya Kabi Kazi Nazrul Islam University.

He has done his job according to my supervision and guidance. He has tried his best to do

this successfully. I think this program will help him in the future build up his career.

I wish his success and prosperity.

Signature

_________________

Monty Adittya
Assistant Professor
Department of Finance and Banking
Jatiya Kabi Kazi Nazrul Islam University

ii
 Student’s Declaration

I do hereby solemnly declare that the report entitled “The Performance of Foreign
Exchange Department of Janata Bank Limited, DMCH Corporate Branch” embodies the
results of my own effort after completion of 90 days work at Janata Bank Limited
perused under the supervisor of Monty Adittya, Assistant Professor, Department of
Finance & Banking, Jatiya Kabi Kazi Nazrul Islam University. I also confirm that this
report is only prepared for my academic requirement not for any other purpose.

It has not been previously submitted to any other university/college/organization for an

academic qualification/certificate/diploma or degree.

I further affirm that the work reported in this internship is original and no part has been
previously submitted to any books or in any other universities.

…………………………….

Md. Shamim Ahmed Khan

ID. No: 16132637
Registration No: 5053
Session: 2015-2016
Department of Finance and Banking
Jatiya Kabi Kazi Nazrul Islam University

iii
 Acknowledgement

To prepare this report a significant amount of document and informational inputs from
several sources were involved. There are a number of people I would like to take this
chance to convey my sincere gratitude to those without whose blessing and cooperation
this report would not have been possible. At beginning I will start my report by showing
respect and give praise to our almighty Allah who takes care about me to finished report
successfully.
I give thanks to our honorable teacher Monty Adittya, Assistant Professor, Department of
Finance & Banking, Faculty of Business Administration, Jatiya Kabi Kazi Nazrul Islam
University, Trishal, Mymensingh-2224, Bangladesh who gives me such an attractive
prospect to make a report on “The Performance of Foreign Exchange Department of
Janata Bank Limited, DMCH Corporate Branch” as well as helped me in every step
accomplish my report and try to provide me a fair practical knowledge as should as it
possible.
In the preparation of this internship report, I acknowledge the encouragement and
assistance given by a number of people from Janata Bank Limited. I am grateful to Abdul
Kader Mirdah, Billal Hossain, Md. Shaheen Khan, and I also like to thank all the
Department staffs of the divisional office of Janata bank Limited for their valuable
suggestions giving me helpful support and assurance. At last, I want to show my
gratefulness to all the respondents who spared their precious time in answering my
questions.

Lastly, I thank all the people for their help directly and indirectly to complete my report.

iv
 Executive Summary

The main objective of this report to show the contribution of Janata bank limited (JBL) in
the sector of import, export, and remittance earning on national earning. JBL’s
performance is not dissatisfactory but the remittance earning is not increasing as the
rising national remittance curve. After analyzing the data of JBL’s import, export and
remittance earnings process this report has suggested that JBL lacks in foreign currency
collection structure. Its remittance earning is increasing but the increase is far below the
national remittance increase. JBL should take up to the mark structural change in service
to cope with the national trend and help Bangladesh earn more remittance analyzes the
risk of investment on Janata Bank Limited.
Janata Bank Ltd is a government-owned bank with numerous branches spreading all over
Bangladesh. It collects remittances from Non-resident Bangladeshi (NRB) from different
countries and transfers the currency in BDT to the destined location. Here I have tried to
describe the remittance processing structure of JBL. Along with this, the study included
the changes made by globally accepted protocol wired transfer service SWIFT. In
addition, this study included the analysis of import-export performance.
Finally, the foreign exchange market is the backbone of international trade and global
investing. JBL should increase strong network with overseas Exchange Companies and
Banks in a different part of the world to ensure better remittance services for its
customers and online Banking in every branch to promote remittance, In case of letter of
credit (L/C) opening, Bank should provide low margin facility to clients. More Import
and export item can be included JBL can provide Consulting facility by an expert group
of officials for foreign exchange, In case of payment of remittance, they should introduce
debit card.

v
 TABLE OF CONTENTS

Contents Page No:

Letter of Transmittal i
Certificate of Supervisor ii
Student’s Declaration iii
Acknowledgment iv
Executive summary v
1.1 Background 1-5
Chapter-1 1.2 Rationale of the Report 6
Introduction 1.3 Objectives of the Report 6
1.4 Methodology of the Report 7-8
1.5 Limitations 9
2.1 Literature Review 10
2.2 Foreign Exchange 10
Chapter-2 2.3 Import 10-11
Literature Review
2.4 Export 11-12
2.5 Remittance 12
2.6 Correspondent Banking 12-13
2.7 SWIFT 13
2.8 Letter of Credit 14
Chapter-3 3.1 work-Related 15-17
Activities Undertaken 3.2 Other Relevant Activities 17
Chapter-4 4.1 Import Performance 18-19
Foreign Exchange 4.2 Export Performance 20-21
Performance 4.3 Foreign Remittance Performance 21-22
4.4 Import , Export and Foreign Remittance 23
Performance
Chapter -5 5.1 Issues observed in the organization 24-25
Challenges 5.2 Mismatch 25
Chapter-6 6.1 Lesson learn from the internship program 26-27
Lessons Learned
from the Internship
Program
Chapter-7 7.1 Conclusions 28-29
Conclusion and
Recommendations 7.2 Recommendations 29-30

References 31

vi
 List of Table

Table No. Title Page No.

1 Janata Bank Limited at a Glance 3

2 Year-wise import 19

3 Year-wise export 20

4 Year-Wise Foreign Remittance 22

List of Figure

Figure No. Tittle Page No.

1 Organogram of Janata Bank Ltd 4

2 Import performance of JBL 19

3 Export performance of JBL 21

4 Foreign Remittance Performance of JBL 22

5 Comparison Import, Export and Foreign Remittance 23

vii
 Chapter One
Introduction
1.1 Background of the Study

Janata Bank Limited (JBL) is the second largest state-owned commercial bank in
Bangladesh. With the emergence of Bangladesh as an independent, sovereign state in
1971 after a devastating nine month war against the West Pakistani occupation army,
a war, full of blood and tears, trauma and pain of millions of our beloved ones, the
legacy of rebuilding the already broken financial base of the country was felt as an
urgent call of the day against a collapsed economic reality of a newly born state.

In order to rebuild the country‟s economy, measures had been taken to merge a
number of banks previously operated in this region and make new banks and this
initiative led to the formation of Janata Bank in 1972 by combining the erstwhile
United Bank Limited and Union Bank Limited under the Banks Nationalization Order
(President‟s Order No. 26) of 1972. In 15 November, 2007 Janata Bank got registered
with the Joint Stock of Registrars and restructured it as a public limited company with
the name Janata Bank Limited.

Including 4 overseas branches in United Arab Emirates Janata Bank runs its business
with 913 branches across the country having a big family of around 11,849 (As on
01.02.2019) employees with its head office located at Janata Bhaban at Motijheel
C/A, the heart of the capital city, Dhaka. At the end of 2017, the Bank held Deposit
BDT 649,440.78 million, Advance BDT 459,580.05 million with Authorized capital
BDT 30,000 million and Paid-up Capital BDT 23,140 million. Janata Bank Limited, a
corporate body trusted over the years, the 2nd largest (in respect of Deposits/Assets)
commercial bank in Bangladesh, has been playing a pivotal role in overall financial
activities of the country and is possessing a long heritage of discharging laudable
services to the society since her embankment immediately after the emergence of this
verdant rich alluvial soil as a sovereign, independent state. The contribution of the
Bank to the national economy and social reform has set the standard bar so high that
others in this business can‟t help aspire to touch the benchmark of success earned by
JBL. More so a matter of great honor is that the contribution, commitment, and
success of the Bank have been recognized with a number of prestigious awards by
national and international organizations of repute.

1
1.1.1Mission

Janata Bank Limited will be an effective commercial bank by maintaining a stable

growth strategy, delivering high quality financial products, providing excellent
customer service through an experienced management team, and ensuring good
corporate governance in every step of banking network.

1.1.2Vision

To become the effective largest commercial bank in Bangladesh to support socio-

economic development of the country and to be a leading bank in South Asia.

1.1.3Values of JBL and Overall Strategic Objectives

 Customer focus
 Integrity
 Teamwork
 Respect for the individual
 Quality
 Responsible citizenship

2
1.1.4 Janata Bank Limited at a Glance

Table: 1. Janata Bank Limited at a Glance

FEATURES VALUES
Name Janata Bank Limited
Genesis Janata Bank Limited, the 2nd largest State
Owned Commercial Bank (SCB) in
Bangladesh, is playing pivotal role in overall
financial activities of the country. The Bank
emerged as „Janata Bank‟ by combining the
erstwhile United Bank Limited and Union
Bank Limited under the Banks
Nationalization Order (President‟s Order -
26) of 1972 and was restructured as a limited
company in November, 2007. Since inception
in 1972 the Bank has commendably
contributed to the socio -economic
development of Bangladesh and helped
structuring solid financial ground of the
country as well. Janata Bank runs its
business with 912 branches across the
country including 4 overseas branches in
United Arab Emirates.
Registered Address Janata Bhaban, 110, Motijheel Commercial
Area Dhaka - 1000, Bangladesh.
Legal Status Public Limited Company
Chairman Luna Shamsuddoha
CEO& Managing Director Md. Abdus Salam Azad (F.F.)
Company Secretary Hussain Yeahyea Chowdhury
Date of Incorporation 21, May, 2007.
Authorized Capital BDT 30,000 Million
Paid up Capital BDT 23,140 Million
Face value per share BDT 100 per share
Shareholding Pattern 100% Share owned by the Government
Number of Employees 11,849 (As on 01.02.2019)
Banking license obtained 31 May 2007
from Bangladesh Bank
Phone +8802-9560000, 9566020, 9556245-49.
Fax 88-02-9554460, 9553329, 9552078
SWIFT JANBBDDH
Website www.jbl.com.bd, www.janatabank -bd.com.
Source: www.jbl.com.bd

3
1.1.5 Organizational Hierarchy of JBL

Chairman

Managing Director

General Manager

Deputy Manager
Organogram of Janata Bank

Deputy General
Manager
Assistant General
Limited

Manager
Senior Principal
Officer

Principal Officer

Senior Officer

Officer

Sub Accountant

Senior Cleark

Figure: 1. Organogram of Janata Bank Ltd.

4
1.1.6 Services/Products Offered by JBL
Janata Bank Ltd provides all commercial banking services to its clients focusing on
the national interest and sustainable growth. The major fields of its activities may be
represented as below:
Deposit Products
 Current Deposit Account
 Short Term Deposit Loan
 Fixed Deposit
 Foreign Currency Deposit
 Monthly Savings Scheme
 Janata Bank Double Deposit Scheme
 Monthly Profit Based Savings Scheme
 Janata Bank Savings Pension Scheme
 Janata Bank Deposit Scheme
 Education Deposit Scheme
 Medical Deposit Scheme
 Janata Bank Special Deposit Scheme
 Savings Bank Deposit Account
Credits Products
 Term Loan
 Trade Finance
 Import Finance
 Export Finance
 SME Financing Micro Credit
 Agriculture & Rural Credit Consumer Credit
 Home loan
 Loan for Merchant Banking
E- Service
 Speedy Remittance Western Union Money Transfer
 Automated Clearing
 Internet Banking
 ATM Banking

5
1.2 Rationale of the Report
Although the total B.B.A. program combines an excellent blend of theoretical and
classroom knowledge but aside this internship program facilitates a student to bring
light on their theoretical knowledge to apply this in the practical ground. This report
has been prepared as a requirement of the internship program. As a student of BBA
program, assigned to the internship period with a topic an Evaluation of Foreign
Exchange Activities of Janata Bank a leading and outstanding commercial based bank
in the area of banking business, allows many fresh graduates to get a real taste of
actual banking activities of various departments every year. According to the needs &
demands of the society and the country as a whole, the bank invests money in
different update business sectors. The Bank participates in different activities aiming
at creating jobs, implementing development projects taken by the Government, and
developing infrastructure.
1.2.1 Importance of the Report

Bangladesh is considered as a developing country in the world. The economy of this

country has a lot left to go further and there are lots of scopes for massive
improvement. In an economy like Bangladesh, Foreign Exchange can play a major
role to improve the economic condition of the country. The banks play the role of an
intermediary that can mobilize the excess fund from surplus sectors to provide
necessary financing, to those sectors, which need a proper go-ahead for the sound
development of the economy. This report is a total effort to reflect a clear idea about
the strategies, activities, and performance of Bangladesh regarding Foreign Exchange
Business.
1.3 Objectives of the Report

Objective of the study acts as a bridge between the starting point and the goals of the
study. The main purpose of the report is to get a clear idea about the management of
and Foreign Exchange of Bangladesh as well as Janata Bank Limited. In order to do
that need to specify objectives:
 To know about the Letter of Credit (L/C) procedures of Janata Bank Limited.
 To know about the fill up the export permission (EXP) form of the bank.
 To know about the foreign remittance of JBL.
 To suggest some recommendations for the smooth operation of JBL.
 To know the import and export performance of JBL.
6
1.4 Methodology of the Study

The study is descriptive in nature. The study would be based on a detailed discussion
on the Foreign Exchange Activities of Janata Bank Limited. Throughout the study, the
use of different types of research methods to find out the proper and correct
information. For preparing this, collected information from different departments of
the Foreign Exchange Activities of Janata Bank Limited was used. To conduct a
research study, what is necessary is to design the framework and select the
appropriate research methodology. A research design is simply a framework or a plan
for a study that may be used as a guide in collecting analyzing data. There are various
methods of conducting the research, such as the Interview Method, Observation
Method, Historical Method, Statistical Method, Questionnaire Method, and the like.
The information was collected from both primary and secondary sources of data.
Regarding the information required was collected within the organization from the
Corporate Division of Janata Bank Limited.

Primary data
 Practical desk work.
 Unofficial Face to face conversation with the respective officers and clients.
 Personal observation.
Secondary data
 Study on Annual Reports of Janata Bank Limited.
 Online data from the JBL website.
 Different journals regarding Janata banking.
 Different books and articles.

Target population
The target population of the study is all officers and customers of Janata Bank
Limited, DMCH Corporate Branch. Existing individual customers of Janata Bank Ltd.
Sample size
 Employee 20
 Customer 25

Sampling Technique:
Convenience sampling has been used.

7
Questionnaires

This research was conduct to sort out whether the customers of JBL are satisfied with
the service of foreign exchange proved by JBL. So a questioner has been prepared for
this research to determine the satisfaction level of the customers of Janata bank
Limited. To do that, 7 questions were prepared for the survey. Here are those 7
questions.
1) Whether the staffs and employees of the foreign exchange department are
helpful to customers?
2) What about the relationship between employees and customers?
3) Whether the employees in this bank punctual and all services are provided in
time?
4) What about the foreign exchange online services provided by Janata Bank
Limited?
5) What about the service charge?
6) What about the forex service JBL offers?
7) Is the Bank disclosing necessary information to its customers?

Sample Frame
Individual customer those who come to Janata Bank and have an account or financial
relation with the bank.

Data Processing
The data has been collected from the customers through face to face interviews. After
that, data has been processed in the following ways.

 Customer's answers are categorized according to their personal information,

present banking habit, experience, preference, attitude, behavior about Janata
Bank Limited.
 After that customers answer are recorded as compiled.

Data Analysis
Simple descriptive nature of data analysis was applied.

8
1.5 Limitations of the Study

Some data and information for obvious reasons that could be very much essential.
From the beginning to the end, the study has been conducted to make it a complete
and truthful one. But there is some limitation for preparing this report.

 Difficulty in accessing the latest data of internal operations.

 Some information has withheld to retain the confidently of the Bank.
 Very inadequate time to make an in-depth inference about foreign exchange
business.
 Large-scale research was not possible due to constraints and restrictions posed
by the organization.
 Part of the original structure was written from individual perception and it may
vary from person to person.
With all this limitation tried best to make this report as best as possible. So readers are
requested to consider these limitations while reading justifying any part of this study.

9
 Chapter Two
Literature Review

2.1 Literature Review

A literature review or narrative review is one of the two main types of review articles,
the other being the systematic review. It is a scholarly paper, which includes the
current knowledge including substantive findings, as well as theoretical and
methodological contributions to a particular topic. Literature reviews are secondary
sources and do not report new or original experimental work.

2.2 Foreign Exchange

Foreign exchange is the exchange of one currency for another or the conversion of
one currency into another currency. Foreign exchange also refers to the global market
where currencies are traded virtually around the clock. Foreign Exchange is a process
which is converted one national currency into another and transferred money from
one country to another country (Smith, Walter, and DeLong, 2012). Foreign exchange
refers to the process or mechanism by which the currency of one country is converted
into the currency of another country (Fatemi and Salvatore, 1993). According to the
foreign exchange regulation act 1947, “Anything that conveys the right to wealth in
another country is foreign exchange”. The foreign exchange regulation Act 1947,
states that foreign exchange means foreign currency and it also includes any
instrument drawn, accepted, made or issued all deposits, credits, and balances payable
in any foreign currency and any draft, travelers cheque letter of credit and bill of
exchange expressed or drawn in Bangladesh currency but payable in any foreign
currency. Foreign trade gives rise to foreign exchange and modern banks facilitate
trade and commerce by rendering valuable services to the business community. In
banks, foreign exchange means the general mechanism by which a bank converts
currency of one country into that of another (Clark and Ghosh, 2004).

2.3 Import

In a simple form, a Foreign exchange market is a place in which foreign exchange

transactions take place. An import is a good or service brought into one country from
another. The word "import" is derived from the word "port" since goods are often
shipped via boat to foreign countries. Along with exports, imports form the backbone

10
of international trade. If the value of a country's imports exceeds the value of its
exports, the country has a negative balance of trade. Countries are most likely to
import goods that their domestic industries cannot produce as efficiently or cheaply as
the exporting country. Countries may also import raw materials or commodities that
are not available within their borders. For example, many countries import oil because
they cannot produce it domestically or cannot produce enough to meet demand. Free
trade agreements and tariff schedules often dictate which goods and materials are less
expensive to import. Bangladesh imports many products from other countries every
year and Imports in Bangladesh increased to 465.30 BDT Billion in January from
382.25 BDT Billion in December of 2018. Imports in Bangladesh averaged 79.17
BDT Billion from 1976 until 2019, reaching an all-time high of 465.30 BDT Billion
in January of 2019 and a record low of 0.57 BDT Billion in November of
1976(Trading economics,2020).

2.4 Export

An export is a function of international trade whereby goods produced in one country

are shipped to another country for future sale or trade. The sale of such goods adds to
the producing nation's gross output. Exports are one of the oldest forms of economic
transfer and occur on a large scale between nations that have fewer restrictions on
trade, such as tariffs or subsidies. Most of the largest companies operating in
advanced economies derive a substantial portion of their annual revenues from
exports to other countries. The ability to export goods helps an economy grow. One of
the core functions of diplomacy and foreign policy between governments is to foster
economic trade for the benefit of all trading parties. Exports are a crucial component
of a country‟s economy. Exports facilitate international trade and stimulate domestic
economic activity by creating employment, production, and revenues. As of 2019, the
world‟s largest exporting countries in terms of dollars are China, the United States,
Germany, Japan, and South Korea. China has exports of approximately $2.2 trillion in
goods, primarily electronic equipment, and machinery. The United States exports
approximately $1.6 trillion, primarily capital goods. Germany has exports of
approximately $1.4 trillion, primarily motor vehicles. Japan has exports of
approximately $683 billion, also primarily motor vehicles. Finally, South Korea has
exports of approximately $552 billion, primarily electronics, machinery, and motor
vehicles. Exports in Bangladesh increased to 232.60 BDT Billion in March from

11
212.01 BDT Billion in February of 2019. Exports in Bangladesh averaged 42.96 BDT
Billion from 1972 until 2019, reaching an all-time high of 240.22 BDT Billion in
August of 2017 and a record low of 0.05 BDT Billion in February of 1972(Trading
economics,2020).
2.5 Remittance

In Bangladesh, Remittances refers to inflows of migrants‟ and short-term employee

income transfers. Remittances from more than 10 million citizens abroad are very
important for Bangladesh and garment exports are a key source of foreign exchange.
Saudi Arabia has been the largest source of remittances, followed by UAE, Qatar,
Oman, Bahrain, Kuwait, Libya, Iraq, Singapore, Malaysia, the US, and the
UK(Trading economics,2020).A remittance is the funds an expatriate sends to his or
her country of origin via wire, mail, or online transfer. These peer-to-peer transfers of
funds across borders are economically significant for many of the countries that
receive them. Remittances have played an increasingly large role in the economies of
small and developing countries. Since the late 1990s, remittances have exceeded
development aid, and in some cases make up a significant portion of a country's gross
domestic product (Fahmida Khatun,2017). Remittances in Bangladesh increased to
1202.85 USD Million in December from 1180.44 USD Million in November of 2019.
Remittances in Bangladesh averaged 1201.42 USD Million from 2012 until 2019,
reaching an all-time high of 1504.98 USD Million in May of 2018.A record low of
856.87 USD Million in September of 2017.

2.6 Correspondent Banking

A correspondent bank is a bank that provides services on behalf of another, equal or

unequal, financial institution. It can facilitate wire transfers, conduct business
transactions, accept deposits, and gather documents on behalf of another financial
institution. Correspondent banks are most likely to be used by domestic banks to
service transactions that either originate or are completed in foreign countries, acting
as a domestic bank's agent abroad. Generally speaking, the reasons domestic banks
employ correspondent banks include the limited access to foreign financial markets
and the inability to service client accounts without opening branches abroad.
Correspondent banks can act as intermediaries between banks in different countries or
as an agent to process local transactions for clients when they are traveling abroad. At

12
the local level, correspondent banks can accept deposits, process documentation, and
serve as transfer agents for funds. The capability to execute these services relieves
domestic banks of the need to establish a physical presence in foreign countries.

Janata Bank Limited always aims at increasing its foreign exchange business. The
bank has been doing international banking with all major banks in the world. It has
been, however, handling the bulk of international businesses with the following five
multinational banks:

 Citibank N. A.
 American Express Bank Ltd.
 Standard Chartered Bank
 HSBC
 The Chase Manhattan Bank
 Belfius Bank
 First Gulf Bank

2.7 SWIFT

SWIFT stands for the Society for Worldwide Interbank Financial

Telecommunications. SWIFT means High-value payment market infrastructures focus
primarily on security and resilience to support time-critical payments, efficiency to
have the right trade-off between risks and cost. Liquidity cost reduction by early
finality, easy collateral coverage, and better liquidity management through real-time
interactive services Balancing cost, efficiency, and risk are your key requirements,
and SWIFT meets them with a reliable, secure, and reusable messaging infrastructure,
supporting international and proprietary standards. More than 62 high-value payments
clearing and settlement systems covering more than 90 countries and carrying more
than 240 million payments a year, rely on SWIFT for secure messaging services and
common message standards essential to their smooth operation. The Bank has become
a member of SWIFT Alliance Access, a multi-branch secure financial messaging
system provided by the Society for Worldwide Interbank Financial
Telecommunication [SWIFT], Belgium. With the activation of the SWIFT system the
Bank enjoys instant, low-cost, speedy, and reliable connectivity for L/C transactions,
fund transfers, message communication, and other worldwide financial activities.

13
2.8 Letter of Credit

A letter of credit (L/C) is a letter from a bank guaranteeing that a buyer's payment to a
seller will be received on time and for the correct amount. In the event that the buyer
is unable to make the payment on the purchase, the bank will be required to cover the
full or remaining amount of the purchase. Due to the nature of international dealings,
including factors such as distance, differing laws in each country, and difficulty in
knowing each party personally, the use of letters of credit has become a very
important aspect of international trade.

14
 Chapter Three
Activities Undertaken

3.1 Works-Related

This internship program was at DMCH Branch and this three-month journey of my
internship with Janata Bank Limited was very amusing. It was enjoyable works and
staffs and officers of the bank are very cordial to me. Working in the foreign
exchange department was challenging. Such as:
 L/C opening procedure
 Fill up the EXP form
 Export register book update
 Export performance register book update
 Online EXP postings
 Export proceeds realization
 Online import permission (IMP) posting.

In my 3 months internship, I have got various kinds of experience in the export

procedure, banking systems, operations procedure, customer relationship, etc.
A different aspect of job performance:
There few specific responsibilities I have performed in foreign exchange. Details of
performed responsibilities followed base on the acquired knowledge of referred
functions.
3.1.1 Online EXP posting: Exporters exports commodity against specific EXP
number which is issued by the bank and after realization of export proceeds banks
have to report about this to Bangladesh Bank through online posting.
3.1.2 Back to Back L/C opening: Sometimes to complete export exporters have to
buy raw material and accessories from another supplier by opening Back to back L/C
which is back to back L/C. It is a new credit in favor of another beneficiary.
Sometimes the beneficiary seller of credit himself is unable to supply goods specified
in the L/C and required to purchase from another supplier by opening second credit.
As an intern, I observed activities of almost all departments accept cash and loan
division.

15
3.1.3 Procedure of a letter of credit from a walk-in client to L/C

To open an import L/C with Janata Bank Ltd an importer is required to submit the
documents:

• A bank account with Janata Bank Ltd.

• The applicant has to have an IRC certificate (import registration certificate).
• Tax‟s payer's identification number (TIN).
• Pro-forma invoice
• Membership certificate from a recognized chamber of commerce and industry
or registered trade association.
• Properly filled letter of credit authorization form (LCA) signed by the importer.
• L/C application duly signed by the importer
• One set of IMP form
• Insurance cover note with money receipt
• VAT registration certificate in case of commercial imports
• Attested photocopy of allocation letter by allocation authority, administrative
ministry specifying the source, amount, purpose, and validity of the import.
• Other documents required by the chief controller of imports and exports.
• Importer might have to submit a report of solvent performances with other
banks to Janata Bank Ltd.
• Credit information bureau (CIB) report from Bangladesh bank.
• A proposal approved by the executive committee of the bank in case L/C
amount is small.
• An approval letter from Bangladesh Bank if L/C amount is large usually for
amounts more than 100,000,00TK.

3.1.4 Preparing Daily basis Vouchers.

Janata banks almost every activity with money is involved with vouchers. From
deposit, loan, branch salary, pension, withdrawal pay order every task is recorded in
vouchers. Moreover, every employee has to keep their voucher sighed by the manager
to finish that work. So I got this work from 3rd day to the last day of my internship.
Daily basis fixed deposit transactions are generated from each employee regularly.
My task is to record them in the vouchers. There are two types of vouchers debit and
credit.

16
3.1.5 Cheque Book providing & requisition service

As the role of an intern, I was assigned to do this work. The assistant office (AO) was
on leave for two months and the manager gave me this opportunity for this task. This
branch follows a procedure to maintain the cheque. Cheques are kept in the vault. In
the self, there is a sequence to keep the cheque book. So I had to keep it that way.
When clients ask for the cheque book I did the following steps:
 look for his name
 time of opening account
 bring cheque from the vault
 send clearing division for the verification
 give the cheque
 take signature in the register book
 Salary sheet recording
I was not allowed to prepare the salary sheet in core banking software but did the draft
in MS Excel. Of course, I was directed on what to do. Mainly, I had to work on the
previous month‟s sheet. I had to add or change for the increment, loan, a new charge,
etc. From the printed copy I had to keep the record in the “Salary Sheet Register
book” and attach the revenue stamp if the salary is paid.

3.2 Other Relevant Activities

 Voucher arranging, tallying and recording by checking the number of records

that have been charged or credited, check the record holder mark, name et
cetera.
 Printed out the transaction listing of the previous day for checking the Debit
and Credit voucher.
 Separation of Debit and Credit voucher.
 Enroll the whole vouchers in the enlist book after checking the voucher with
the trial rundown of the branch in points of interest. Here the measure of Debit
and Credit will be the same however the number can vary. After check
demand, a list of cheque book holders name with a/c no are given to write
down in cheque book register.
 Stamping different sorts of documents with authorization and give
authorization seal.

17
 Chapter Four
Foreign Exchange Performance

4.1 Import Performance:

Through quite a good number of Authorized Dealer Branches and 1239. Foreign
correspondents worldwide Janata Bank Limited has been extending the full range of
import and relevant financial facilities.

4.1.1 Import Items

1. Capital types of machinery and industrial raw materials.
2. Fuel and Lubricants.
3. Intermediate goods.
4. Consumer durable, spare parts, and equipment.
5. Consumer goods: Food & Food Grains, Baby food, Petroleum, CDSO (Crude
Degummed Soya bean Oil), CPO (Crude Palm Olin) Oilseeds, Cement Clinker,
Construction Materials, Fertilizer, Chemicals and many other goods permissible by
Import by Import Policy of the country.

4.1.2 Facilities Offered

1. Opening of L/C at competitive/ reasonable margin and commission.
2. Interest at concession rate on import finance to the prime customers & interest
rebate facilities.

4.1.3 Import:
Keeping in consideration the importance of industrialization Janata Bank is
consistently and firmly extending its support in the import business. The Following
year-wise financial involvement table showing a sharply rising trend indicates Janata
Bank's import business performance.

18
 Table: 2. Year-wise import

Year BDT (Taka) in Million

2010 183,744.00
S
2011 197,285.00
o
2012 188,284.00
u
2013 176,671.00
r
2014 144,556.80
c
2015 147,181.80
e
2016 : 126,650.00
2017 143,582.20
2018 J 220,413.70
2019 B 213,522.80
Source: Annual Report 2010 to 2019

Import Performance of JBL

250,000.00

200,000.00

150,000.00

BDT (Taka) in Million

100,000.00

50,000.00

0.00
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Figure 2: Import performance of JBL

19
4.2 Export performance:
To boost up country's export, Janata Bank Limited has been providing different kinds
of assistance to exporters. Some of which are as under:-
 Providing Pre-Shipment and Post-Shipment Finance, Export Guarantee and
bonding facility, etc.
 Concessional rate of interest for export finance.
 Back to Back L/C under bonded warehouse facility.
 Sight & Unasked L/C against Firm Contract for import of raw materials.
 Sight L/C under EDF
 Exporter's Retention Quota A/C both interest-bearing and non-interest-bearing.
 Banking at Export Processing Zone.
 Scope for the establishment of an export-oriented industry by 100% foreign
investment and by joint-venture.
 The sole bank to disburse the Government Export Promotion Fund against the
export of Computer Software & Data Entry Processing.
 Undergone an agreement with Bangladesh Bank to obtain funds from Government
EEF (Equity & Entrepreneurship Fund) to build up entrepreneur's equity.
 Providing services to the exporter by utilizing most modernized technology like
Swift, Reuters, Internet, Fax, etc.
Table: 3. Year-wise Export

Year BDT (Taka) in Million

2010 118,515.00
2011 153,758.00
2012 156,525.00
2013 153,252.00
2014 154,079.70
2015 145,373.60
2016 154,454.20
2017 139,920.90
2018 114,681.00
2019 145,370.20

Source: JBL Annual Report 2010 to 2019

20
 Export performance of JBL
180,000.00

160,000.00

140,000.00

120,000.00

100,000.00

80,000.00 BDT (Taka) in Million

60,000.00

40,000.00

20,000.00

0.00
2010201120122013201420152016201720182019

Figure 3: Export performance of JBL

4.3 Foreign Remittance Performance:

Commission for issuance of Taka Drafts from our UAE branches has been reduced
and re-fixed from AED 10.00 to AED 4.00 and commission for issuance of TTs
drawn on Bangladesh and payable at any bank branch are re-fixed at AED 12.00 from
AED 30.00.
Commission for issuances of Taka drafts at UAE branches has been reduced
irrespective of amount.1% interest above the normal savings deposit rate is offered to
SB accounts receiving foreign remittance.
There are several types of Accounts and US Bonds.
 Non Resident Foreign currency Deposit Account(NFCD)
 Resident Foreign Currency Deposit Account (RFCD)
 Non-Resident Investor's Taka Account (NITA)
 Wage Earners Development Bond (WEDB)
 US Dollar Investment Bond and US Dollar Premium Bond (US Bonds)

21
 Table: 4. Year Wise Foreign Remittance

Year BDT (Taka) in Million

2010 52640.00
2011 72285.00
2012 100089.00
2013 103982.00
2014 106677.00
2015 101348.00

2016 90082.00
2017 72022.00
2018 76078.00
2019 79044.00

Source: JBL Annual Report 2010 to 2019

Foreign Remittence Performance of JBL

120000

100000

80000

60000 BDT (Taka) in Million

40000

20000

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Figure 4: Foreign Remittance Performance of JBL

22
4.4 Import, Export & Foreign Remittance Performance in the graph:

250,000.00

200,000.00

150,000.00
Import
Export
100,000.00 Foreign Remittance

50,000.00

0.00
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Figure 5: Comparison Import, Export & Foreign Remittance

23
 Chapter Five
Challenges

5.1 Issues observed in the organization

For example, customers came to deposits money. They stand by the line, but the
person who takes the responsibility to accomplish this task of the bank has no
punctuality. Sometimes customers need to stay stand by the line for a long at Janata
Bank Limited, DMCH Corporate Branch. During my internship saw some challenges
of the organization. At the same time, it is very hard to know all of the challenges of
the organization within this few time.

 Environmental problem. A business environment is a big issue to run the

business successfully. A combination of an internal and external factor is
called the business environment. At Janata Bank, I saw, they do not have
many rules and regulations that should be maintained with the clients and the
customers period. It gives bad feelings or dissatisfaction of the organization.

 They do not invest in different projects. As a result profit, market share does
not grow to compare to others. Moreover, there is occur huge corruption in a
different department. Employees are also got opportunities to do exploitation
because of the poor managerial chain.
 Another big problem is that they do not take any specific marketing step for
their existing service. For example, last year they launch RTGS (Real Time
Gross System). Under this service, customers can deposits their money from
another bank account through the mother bank account. It‟s a new service and
very helpful for the customer. But we even don‟t know about this service.
Here is the lack of promotional activities.
 If they take steps for some promotional activities like leaflet, online
advertisement, arranging some seminar about RTGS, then it will be great for
them and the customer will easily get their service as well as the customer will
attract by getting this service and also the number of customers will increase
day by day. But the matter of sorrow that they do not take such kind of
activities.

24
  They do not have new product for the customer. They give services based on
their obsolete idea.
 They do not have much ATM booth. It is an important sector for today‟s
world. But they do not concern of it.
 Wasteful aspects inside the activities of the bank.
 Absence of allure to more youthful, Student, princely potential clients.

5.2 Mismatch
I have experienced mismatch with my academic courses while I was doing my
internship program.

 University can organize workshops for their students before the internship
program so that students can get an idea and be prepared for the challenges and
problems they will face while doing their internship. Moreover the university
should give practical knowledge along with the theoretical information to the
students.
 Department can arrange business seminars more often so that the students can
build up their knowledge about the practical job life by listening to different
successful corporate person.
 In JBL mostly worked on core banking software (CBS) or entrepreneur resource
software (ERP).But in my basic computer course I only learned about Microsoft
office.

25
 Chapter Six
Lessons Learned from the Internship Program

6.1 Lesson learned from the internship program

For my BBA graduation, I had to do an internship at Janata Bank Limited. It is a part
of my BBA program. Last few years, I learned a lot of academic knowledge about
business, but it was necessary for me to know about practical knowledge. The
internship is a way to know about it. Every single second taught us many different
things. From my joining to till, I learned many different things. For example,

 L/C opening
 EXP form fill up
 IMP postings
 Account opening
 Issuing check book to account holders
 Requirements to become an account holder
 Requirements for retail‟s special deposit
 Requirements for loan o How to deposit money into the bank
 Considerable factors to invest money in potential sector
 How to close an account
 Issuance of credit card
 The basic reasons to dishonoring a cheque, and
 Other important foreign exchange issues.

There was some behavioral issue which I have learned throughout my internship
program which may help in my further career growth.

 Be punctual: My office time starts at sharp 10 am. Every day I tried to present
at the time. My supervisor Billal Hossain always guides me and teaches me
about the rules and regulations. He also always attends his desk before 10 am.
He was that punctual at his timing as well as his assigned work. For this, he
has a reputation among the employees. I saw him and thought about him,
punctuality is one of the most important things to be a good employee.

26
  Team work: Team work is a very big issue. As a professional I need to be
very cordial to my teammates to be successful. I always should try to be
within the group and work within the group. At the end of the day, team
success will be my success.
 Updating Myself: I always should look for updating myself to get efficiency
in my profession. Learning and gathering knowledge may post myself in better
position.
 Showing Utmost Dedications: Whenever I didn‟t understand of any work or I
didn‟t understand what to do now, just sitting idle- I have to speak up and ask
my supervisor right away about my course of action for the time.
 Make connection or networking: I need to make connection with people. It
broaden my knowledge at the same time extend my network. That will help in
my corporate life to extend my professional skills.
 Ask questions: As an intern firstly when I joined, I do not know anything. I
have to learn some rules and regulation. I have to ask him. If I do not asked
him, I won‟t be able to know the things. So, whenever get difficulty for
understand, keep asking.
 Adopt new skills: Build up skill that may be good my future corporate life is
more important. I saw my superintendent Billal Hossain, how he controlled
the pressure of work.
 Learning from co-workers: Quick learning is a must in any sort of thing;
otherwise it will just annoy the other person. I have to act and response
quickly but smoothly in my internship period too. How to act, response, talk,
following corporate culture, values, timeliness, meeting deadline etc. are some
essential qualities one need to have or have to quickly adapt with. Knowing
company history is also important and knowing as details as possible about the
company is an advantage.

For completing the BBA program, I did a lot of courses. Every course and course
tutor gave us business knowledge. One of them is organizational behavior, through
this course I learned many things. From my internship, I just faced these things, not
completely, but mostly. Because only these few months are not enough for learning
these immense things.

27
 Chapter Seven
Conclusions and Recommendations
7.1 Conclusions

The last 3 months was quite intriguing to do internship at Janata Bank Limited,
DMCH Branch. Found out about the nature of actually working in a professional
environment. This internship program, in first, has been arranged for gaining
knowledge of practical banking and to compare this practical knowledge with
theoretical knowledge. Only three sections are covered in the internship program, it is
not possible to go to the depth of each activities of branch because of time limitation.
However, highest effort has been given to achieve the objectives the internship
program. A strong banking sector is critical to economic growth and development in a
developing country. A robust and well-functioning banking system facilitates the
efficient allocation of resources to individuals, organizations, and projects that can use
those resources effectively. The value of General Banking is immense. It„s the core
tool of banking as well as the base of banking. Other sections depend mostly in this
section. Janata Bank Ltd. has an established and most importantly a reliable foreign
exchange section. It fulfills the consumer needs in almost every case with its dignity
and honor. The company itself is well-organized as well as its officers. JBL is
developing its services to give a hard competition to other banks. Bank is a very
important and vital for economic development in mobilizing capital and other
resources. JBL is also contributing to the advancement of the socioeconomic
condition of the country. To keep pace with the current market and demand, JBL is
following several strategies and taking new initiatives, offering new products and
services to the customers. The bank should maintain well-structured communication
from upper level to lower level. JBL have a strong position in the competitive market.
As the economy of Bangladesh is increasing so is the foreign trade and JBL always
have played its role in making sure that things go smoothly. The bank is doing its best
to provide better Import, Export and Remittance services to the customers. Export,
Import is showing positive trends even after the global challenges that we are facing
today. However, the bank needs to improve its remittance and export as they were
better before. JBL is a third generation commercial bank in the country with
commendable operating performance directed by the mission to provide prompt and

28
different services to clients. JBL successfully celebrated its eight years of operation. It
provides a wide range of commercial banking services JBL has achieved success
among its peer group within a short span of time with its professional and dedicated
team of management having long experience, commendable knowledge and expertise
in conversation with modern banking.

7.2 Recommendations

As an internee it is very difficult for me to give any recommendation with my little

working experience but I have tried my best to give best recommendations for the
organization.
In collecting remittance, documentation must be easier for helping the clients for
collecting money.

 Fund sufficiency and server correctness is required while providing services to the
clients of NRB Remittance.
 The bank should arrange some more training programs for their officials. Quality
training will help the officials to enrich them with more recent knowledge of
International Trade and financing as well different banking activities.
 JBL should emphasize on its advertisement strategy to capture new customers.
 The bank must need the establishment of research and development (R&D)
department.
 Involvement of direct social investment. Reengineering its core business pattern.
 Security service must be established strongly and supervised properly.
 Proper arrangement of necessary equipment and materials needed in every desk of
each department for providing prompt service.
 JBL should accelerate the rate of technology adoption, along with investing in
training bank employees in appropriate use of technology In particular, all bank
employees should be trained on basic cyber-security precautions.
 SWIFT service should be introduced in each and every branch of the bank, which
will help to smoothen the foreign exchange operation of the bank
 Charges should be more transparent, by providing details breakup of the charges
stamp, postage, processing fees, etc.

29
 Bank should provide emphasis to make the documentation and filing process of
foreign exchange operation user friendly.
 User interface of JBL website should be improved and it should be updated in
daily basis.
 Attractive incentive packages for the exporter will help to increase the export and
accordingly it will diminish the balance of payment gap of JBL.
 International division of the bank should be focused to make relationship with the
renowned foreign banks.
 An efficient Management and Information System (MIS) is a must for JBL. Bank
can introduce more advanced MIS to mobilize its day to day activities. It will help
the employees to do their works more quickly and at the same time maintaining
their quality of work.
 Mass online banking service should be implemented in the bank and the bank
should go for mass on-line banking to meet the demand of the next century.
 The management should give more emphasis on the advertisement of the bank
about their operations and for this purpose the bank should set up query
desk/information booth for better customer services.

30
References
Bangladesh Exports. (n.d.). Retrieved February 3, 2020, from
https://tradingeconomics.com/bangladesh/exports.

Bangladesh Imports. (n.d.). Retrieved February 3, 2020, from

https://tradingeconomics.com/bangladesh/imports.

Clark, E., & Ghosh, D. K. (2004). Arbitrage, Hedging, and Speculation: The Foreign
Exchange Market. London: Praeger.

Foreign Exchange Guideline Vol 1. (n.d.). Bangladesh Bank . Retrieved from

http://www.bb.org.bd/aboutus/regulationguideline/foreignexchange.

Fatemi, K., & Salvatore, D. (1993). Foreign Exchange Issues, Capital Markets and
International Banking in the 1990s (1st ed.). London, U.K: Routledge.

Islam, N. (1976).Foreign Trade and Economic Controls in Development.

Connecticut: Yale University Press.

Janata Bank Limited. (2014). JBL Annual Report 2014. Retrieved from
http://www.jb.com.bd/about_us/annual_report.

Janata Bank Limited. (2018). JBL Annual Report 2018. Retrieved from
http://www.jb.com.bd/about_us/annual_report.

Janata Bank Limited. (2019). JBL Annual Report 2019. Dhaka: Janata Bank Limited.

Khatun, D. F. (2017). Safeguarding free flow of remittance. The Daily Star. Retrieved
from http://www.thedailystar.net/drivers-economy/safeguarding-free-flow-remittance-
1364857.

Kate L. T. (1972). A Manual for Writers of Term Papers, Theses and Dissertations.
Chicago: University of Chicago Press.

Smith, R. C., Walter, I., & DeLong, G. (2012). Global banking (3rd ed.). New York :
Oxford University Press.

31