Foreign Exchange Operations of Mutual Trust Limited

A Comparison with Dutch Bangla Bank Limited, Jamuna Bank

Limited and Southeast Bank Limited
 A Report on
Foreign Exchange Operations of Mutual Trust Limited
A Comparison with Dutch Bangla Bank Limited, Jamuna Bank
Limited and Southeast Bank Limited

Submitted to:
Mrs Manna Akter Lina
Assistant Professor
Department of Business Administration
Dhaka City College

Submitted by:
Raihan Kabir Bhuiyan

Id 246
Management B
BBA 19
Dhaka City College

Date of Submission: January 31, 2022

 Letter of Transmittal

31st March, 2022

Mrs. Manna Akter Lina

Assistant Professor
Dept. of Business Administration
Dhaka City College
Subject: Submission of report.
Honorable Madam,

Here is the report that I assigned on the topic “Foreign Exchange Operations of Mutual Trust
Limited - A Comparison with Dutch Bangla Bank Limited, Jamuna Bank Limited and
Southeast Bank Limited”. The report has been completed by the knowledge that we have
gathered from the course “Comparative Management”. While preparing this report I have
followed your instructions.

I am thankful to all those persons who provided us important information and gave us valuable
advices. I express my special gratitude to you for dedicating your valuable time, expert
guidance and support. I would be happy if you read the report carefully and I will be trying to
answer all the questions that you have about the report.

I have tried my label best to complete this report meaningfully and correctly, as much as
possible. I do believe that our tiresome effort will help you to get ahead with this sort of venture.
In this case it will be meaningful to us. However, if you need any assistance in interpreting this
assignment please contact us without any kind of hesitation.

Sincerely yours,

Signature
Raihan Kabir Bhuiyan
ID 246
Management B
BBA 19
Dept. of Business Administration
Dhaka City College

I
 Acknowledgement

At the very first I am pleased to convey my gratefulness to Almighty Allah as he provides me

the capability to prepare this report properly.

I would like to thank my course instructor, Mrs. Manna Akter Lina for guiding me throughout
the course of this report. She was there to help me every step of the way, and her motivation is
what helped me complete this report successfully. I thank all the teachers who helped me by
providing the equipment that was necessary and vital, without which I would not have been
able to work effectively on this report.

I would also like to express my sincere gratitude to my friends and parents, who stood by me
and encouraged me to work on this report.

Then I would like to heartfelt gratitude to Mutual Trust Bank Ltd, Dutch Bangla Bank Ltd,
Jamuna Bank Ltd, Southeast Bank Ltd for giving me a chance to complete my report, for
allowing me to gather information and helping me every possible way in preparing the report.

II
 Executive Summery
As a part of my under graduation program, I was assigned to make a report on Foreign
Exchange Operations of Mutual Trust Limited - A Comparison with Dutch Bangla Bank
Limited, Jamuna Bank Limited and Southeast Bank Limited. In banking industry of
Bangladesh these banks are renowned. The major objective of this report is to investigate the
forign exchange operation of these banks. It is a descriptive research in nature. Most of the data
are collected from both primary and secondary sources. But major parts of the report are
prepared by secondary data. This report has reviewed almost all relevant departments of
Accounts, IT, Production, HR and Admin and Management. First chapter introduces the origin
of this report, objectives, limitations, methodology of this study. Second chapter is about the
overview of the company, mission, vision, objectives, product. Third chapter is the main
chapter and it is all about the analysing part. In this part, the report mentioned and described
all the activities those are undertaken in foreign exchange operation. Last chapter is the
conclusion part. Here, the report pointed out some findings of that factory and then
recommended some solutions to those findings. Lastly, I gave the sources from which I took
all the information and then the appendix part.

III
 Table of Contents

No. Particular Page

Ch 1 Introduction 1
1.1 Origin of the Report 2
1.2 Objective 2
1.3 Methodology 3
1.4 Scope 3
1.5 Limitation 4
Ch 2 Company Overview 5
2.1 Overview of Mutual Trust Bank Ltd 6
2.2 Overview of Dutch Bangla Bank Ltd 14
2.3 Overview of Jamuna Bank Ltd 18
2.4 Overview of Southeast Bank Ltd 23
Ch 3 Analysis & Evaluation 28
3.1 Foreign Exchange 29
3.2 Foreign Exchange Market 12
3.3 Exchange & Trade Control 13
3.4 Risk Involve in Foreign Exchange 14
3.5 Foreign Exchange Operations 14
3.6 Letter of Credit 15
3.7 Foreign Remittance 29
3.8 Foreign Currency Account 40
3.9 Imports of MTB, DBBL, JBL & SBL 44
3.10 Exports of MTB, DBBL, JBL & SBL 45
3.11 Foreign Remittance of MTB, DBBL, JBL & SBL 46
3.12 Average Imports of MTB, DBBL, JBL & SBL 47
3.13 Average Exports of MTB, DBBL, JBL & SBL 48
3.14 Average Foreign Remittance of MTB, DBBL, JBL & SBL 49
Ch 4 Finding, Recommendation & Conclusion 50
4.1 Finding 51
4.2 Recommendation 52
4.3 Conclusion 53

IV
 List of Tables

No. Particular Page

1 Imports of MTBL, DBBL, JBL, SEBL 44

2 Exports of MTBL, DBBL, JBL, SEBL 45

3 Foreign Remittance of MTBL, DBBL, JBL, SEBL 46

V
 List of Figures

No. Particular Page

2.1 Organizational Structure of MTB 8

2.2 Organizational Structure of DBBL 15

2.3 Organizational Structure of JBL 19

2.4 Organizational Structure of SBL 25

3.1 Comparative Import 44

3.2 Comparative Export 45

3.3 Comparative Foreign Remittance 46

3.4 Comparative Average Import 47

3.5 Comparative Average Export 48

3.6 Comparative Average Foreign Remittance 49

VI
 Acronyms / Abbreviation

MTB = Mutual Trust Bank Ltd

DBBL = Dutch Bangla Bank Limited
SEBL = Southeast Bank Ltd
JBL = Jamuna Bank Ltd
FC A/C = Foreign Currency Account
LC = Letter of Credit
ICC = International Chamber of Commerce

VII
Chapter-1

Introduction

1
 1.1 Origin of the Report

In today’s world only academic education does not make a student perfect to
become competitive with the outside world, we also need to gather practical
knowledge. Due to Covid-19 pandemic we could not do Internship program. So we
have made Project Report. Making such Project Report is highly needed to gain
idea, knowledge and experience. From this program student get the opportunity to
learn facing the real business world. This report is an internship report prepared as a
requirement for the completion of BBA Program of Dhaka City College under the
curriculum of National University, Bangladesh. The primary goal of this report is to
provide the job exposure to the student and an opportunity to implement theoretical
knowledge in real life situation. The program covers a period of 8 weeks.

Mutual Trust Bank Limited is a place where I could learn the business dealings.
This organization has created a positive image to the customer’s mind by providing
better service. This bank has introduced some modern banking scheme that has got
high market demand.

1.2 Objective of the study

There are mainly two objectives behind the preparation of this report- primary
objective and secondary objective.

Primary Objective: To fulfill the partial requirement of achieving BBA degree from
Dhaka City College under National University of Bangladesh.

Secondary Objectives:

 To present an overview of foreign exchange division of MTBL.

 To appraise performance of foreign exchange division of MTBL.

 To appraise foreign exchange activities of’ MTBL.

 To know about what kinds of risk the bank is facing in the foreign exchange

2
 transaction.
 To develop practical knowledge about foreign exchange.

 To have an overall concept about foreign exchange activities relating to

import, export, outward and inward remittances, buying and selling of foreign
commission etc. come under the purview of foreign exchange business.
 To identify problems of foreign exchange division of MTBL.
 To learn about the import and export dealing of business organization.

1.3 Methodology of the study

The study requires a systematic procedure from selection of the topic to final report
preparation. To perform the study, the data sources are to be identified and
collected, they are to be classified, analyzed, interpreted and presented in a
systematic manner and key points are to be found out. The overall process of
methodology is given below:

Due to Covid-19 Pandemic, this report is mainly prepared by the secondary sources
of information.

Secondary data

 Relevant books, Newspaper, Journals etc.

 Annual reports
 Periodicals published by Bangladesh Bank.
 Monthly reports and published documents
 Office circular and other published papers, documents and reports
 Various brochures
 Various type of statement
 Various register books
 Various printed form

1.4 Scope of the study

MTBL is one of the leading banks in Bangladesh. The report covers the background,
functions and mostly the foreign exchange system of the bank. The scope of the
study is just to acquaint with the foreign exchange scenario of MTBL. Here I tried to
learn about Foreign Exchange business of business keeping money task, how the

3
 L/C is opened and how the import and fare are finished. Territory and issue are
secured by this report incorporate significance of remote trade, capacity of outside
trade division.

1.5 Limitations of the report

Due to Covid-19 pandemic, this report is written mainly on the basis of secondary
sources through online, reports, books, statements. So, no perfect study is conducted
to measure the viability of the report. The following are some other limitations –

 Limitation of time was one of the most important factors that shortened the
present study.
 Lack of respondents was the major problem that created many confusions
regarding verification of conceptual questions.
 Confidentiality of data was another important barrier that was faced during the
conduct of this study.
 Insufficient books, publications, Facts and figures narrowed the scope of
accurate analysis.
 MTBL does not have rich and wealthy collection of various types of Banking
Related Books and Journal.

4
 Chapter-2
Company Overview

5
 2.1 Overview of Mutual Trust Bank Limited

2.1 History of Mutual Trust Bank Limited

Mutual Trust Bank Limited (MTBL) is a Public Limited Company by shares in

Bangladesh, with commendable operating performance, directed by the mission to
provide with prompt and efficient services to clients. The Company was incorporated
on September 29, 1999 under the Companies Act 1994 as a public company limited
by shares for carrying out all kinds of banking activities with Authorized Capital of
Tk. 38,00,000,000 divided into 38,000,000 ordinary shares of Tk.100 each. The
Company was also issued Certificate for Commencement of Business on the same
day and was granted license on October 05, 1999 by Bangladesh Bank under the
Banking Companies Act 1991 and started its banking operation on October 24, 1999.
As envisaged in the Memorandum of Association and as licensed by Bangladesh
Bank under the provisions of the Banking Companies Act 1991, the Company started
its banking operation and entitled to carry out the following types of banking
business:

(i) All types of commercial banking activities including Money Market operations.

(ii) Investment in Merchant Banking activities.

(iii)Investment in Company activities.
(iv) Financiers, Promoters, Capitalists etc.

(v) Financial Intermediary Services.

(vii) Any related Financial Services.

The Company (Bank) operates through its Head Office at Dhaka and 49
branches and 5 SME Service Centers.

6
 2.1.1 Vision

Mutual Trust Bank's vision is based on a philosophy known as MTB3V. We

envision MTB to be:

 One of the Best Performing Banks in Bangladesh

 The Bank of Choice

 A Truly World-class Bank

2.1.2 Mission

It aspires to be one of the most admired banks in the nation and be recognized as an
innovative and client-focused company, enabled by cutting-edge technology, a
dynamic workforce and a wide array of financial products and services.

2.1.3 Core values

Shareholders– Create sustainable economic value for our shareholders by
utilizing an honest and efficient business methodology.

Community- Committed to serve the society through employment creation,

support community projects and events and be a responsible corporate
citizen.

Customers- Render state-of-the-art service to their customers by offering

diversified products and by aspiring to fulfill their banking needs to the best
of their abilities.

Employees– They rely on the inherent merits of the employee and honor our
relation as a part of this renowned financial institution. They work together to
celebrate and reward unique backgrounds, viewpoints, skills and talents of
everyone at the workplace, no matter what their job is.

7
2.1.4 Organizational Structure of Mutual Trust Bank
Limited

Fig: 2.1 Organizational Structure of Mutual Trust

Bank Limited

8
 2.1.5 Products and Services

MTBL has launched a number of financial products and services since its
inception. Among these, Monthly Savings Scheme, Family Maintenance
Scheme, Double Benefit Deposit Scheme, Quarterly Benefit Deposit Scheme,
1.5 Times Benefit Deposit Scheme, Advance Benefit Deposit Scheme,
Consumer Credit Scheme, Small Loan Scheme, Lease Finance Scheme,
Overseas Employment Loan Scheme, Car Loan Scheme, Home Loan Scheme
and SME Loan have received wide acceptance among the people.

1. Retail Banking

a) Deposits

 Current Deposit Account

 Saving Deposit Account

 Fixed Deposit Account

 Double Benefit Deposit Scheme

 Mashik Sanchay Prakalpa

 Family maintenance Deposit

 Quarterly Benefit Deposit

 Scheme

 1.5 times Benefit Deposit

 Scheme

 Advance Benefit Deposit

 Scheme

 Special Savings Scheme

 School Banking

 Educational Planning Deposit

 Scheme

9
  Super Benefit Deposit Scheme

b) Loan

 Consumer credit

 scheme

 Doctor credit scheme

 Rural planning scheme

 Lease Financing

 Any purpose loan

 Educational loan

 Car loan

 Home loan

 House furnishing loan

 Cottage loan

 Polli loan

c) Cards

 Dual card

 Debit Card

 Prepaid

 Supplementary Card

 Visa Card

2. Corporate Banking

 Short term finance

 Long term finance

 Real estate finance

10
  Import finance
 Work order finance
 Export finance
 Structured finance
 Loan syndication

3. SME Banking
 Chaka
 Annaynna
 Chalti Muldhan
 Single payment Loan
4. Foreign Trade Business
 Foreign correspondents
 Nostro Accounts

5. E-banking
 Online banking
 Mobile banking
 SMS banking
 SWIFT
 Locker Facility

2.1.6 SWOT Analysis of Mutual Trust Bank Limited

The comparison of strengths, weaknesses, opportunities and threats is

normally referred to as a SWOT analysis. The central purpose of the SWOT
analysis is to identify strategies that align, fit, or match a company’s resources
and capabilities to the demands of the environment in which the company
operates. To put it in other way, the purpose of the strategic alternatives
generated by a SWOT analysis should be to build on company strengths in
order to exploit opportunities and counter threats and to correct company
weakens. I have found some aspects relating to the Bank’s strength,
opportunity, weakness and threats, which are more or less. I think affecting
the Bank’s performance in total, which are explained below:

Strengths:
 Top management
 Satisfactory asset quality.
11
  Good internal capital generation.
 Satisfactory operating efficiency
 Diversified product lines
 Low human resource turnover
 Experienced Management Team
 Favorable reputation in the banking
 industry
 Skilled Board of Directors
 High growth rate
 Interactive corporate culture
 provider of good quality services

Weaknesses:
 No long-term strategies
 Failed to provide a strong quality-
 recruitment policy in the lower and
 some mid-level position
 Service quality of this bank is good but
 not high as the customers’ expectation.
 Having a group of unsatisfied employees.
 Low promotional sector

Opportunities:
 Merchant banking or diversify into
Leasing and insurance sector.
 Investment in the Secondary market
 Opportunity in retail banking
 Expansion of its product line
 Enhance sustainable competitive
advantage

 Introduction of special corporate

 scheme for the corporate customers

Threats:
 Increasing cost of fund
 Increased Market competition
 Product Risk
 The default risks of all terms of loan
12
  The low compensation package of the
 employees from mid-level to lower
level position

2.1.7 Slogan
You Can Bank on Us

13
 2.2 Overview of Dutch Bangla Bank Limited
2.2.1 History of Dutch Bangla Bank Limited
DBBL is committed to building a more sustainable bank, a progressively responsible
company and conducting business in an increasingly sustainable way. In the process
of improving sustainability, impacts of our long-term and short-term decisions are
adequately considered in our business decisions. We feel proud that our largest digital
banking platform in the country including ATMs and Fast Tracks, our mobile banking
& agent banking operations underpinning widespread financial inclusions and our
CSR programs including the largest private sector scholarship programs are showing
the difference we are creating for our clients and communities in general.
DBBL continues to uphold its core values and pursue its vision of dreaming a
Bangladesh where "science and education, health and hygiene, clean and pollution
free environment and above all a society based on morality and ethics make all our
lives worth living". DBBL has been operating mobile banking services since 2011 to
reach the unbanked poor people of the country to bring them under financial services
network, who are deprived from traditional banking services, living mostly in rural
and remote areas.
A further extension of banking for mass people to reach even the remotest corner of
the country, DBBL has been operating agent banking services since 2015.

2.2.2 Vision

Dutch-Bangla Bank dreams of better Bangladesh, where arts and letters, sports and
athletics, music and entertainment, science and education, health and hygiene, clean
and pollution free environment and above all a society based on morality and ethics
make all our lives worth living. DBBL’s essence and ethos rest on a cosmos of
creativity and the marvel-magic of a charmed life that abounds with spirit of life and
adventures that contributes towards human development.

2.2.3 Mission

Dutch-Bangla Bank engineer’s enterprise and creativity in business and industry with
a commitment to social cause. “Profits alone” do not hold a central focus in the
Bank’s operation; because “man does not live by bread and butter alone”.

14
2.2.4 Core values
Dutch-Bangla Bank believes in its uncompromising commitment to fulfill its
customer needs and satisfaction and to become their first choice in banking. Taking
cue from its pool esteemed clientele, Dutch-Bangla Bank intends to pave the way for
a new era in banking that uphold and epitomize its vaunted marquees “Your Trusted
Partner”

2.2.5 Organizational Structure of Dutch Bangla Bank

Limited

Fig: 2.2 Organizational Structure of Dutch Bangla

Bank Limited

15
2.2.6 Products and Services

 Mobile Banking

 Remittance services

 Personal Banking

 SME Banking

 Personal Banking

 E-Banking

 Deposit & advance

2.2.7 SWOT Analysis of Dutch Bangla Bank Limited

Strengths:

 Largest banking service provider in the commercial bank and operate near
about 1000 corporate client.
 Qualified, hardworking& dedicated human resources

 Gets advantage for ATM card

Weaknesses:

 Low deposit rate and minimum balances are too high.

 Nonfunctioning ATM machines, delay for providing cards.

 Poor coordination & communication between Head offices and branches

Opportunities:

 If reducing its current fees & charges and positioning attractively, so DBBL
can attract more corporate client
 By offering more attractive interest rates, and lowering the minimum balances
eligible for interest, the bank can attract a lot of the old customers

16
Threats:

 At present Trust Bank, EBL and BRAC Corp are posing significant threats to
DBBL regarding retail and business banking respectively.
 Furthermore, the new comers in private banking sector are also coming up
with very competitive products.

2.2.8 Slogan
Your Trusted Partner

17
 2.3 Overview of Jamuna Bank Limited
2.3.1 History of Jamuna Bank Limited
Jamuna Bank Limited started its journey on 3rd of June in 2001. It has been approved
under the Bank Companies Act, 1991 of Bangladesh Bank. The head Office is
currently located at Hadi Mansion, 2, Dilkusha C/A, Dhaka-1000, and Bangladesh.
According to the criteria of digital banking, JBL is considered as a 3rd generation
bank.
The bank was built up by a gathering of nearby business visionaries and it gives a
wide range of help to exchange, trade, industry and generally business of the nation.
As a leading private bank, JBL is always ready to develop new policies for adopting
newly introduced challenges. By far all these years it has progressed by increasing the
number of clients and keeping satisfied them with committed service.

According to the latest report (2018), JBL is operating 128 branches all over the
country and the figure of its assets are follows:
Tk.167571.33 Million of deposits
Tk.19894.12 million of total capital
Tk.3.29 earnings per share

2.3.2 Vision
To become one of the best banking institute by serving people, offering the best way
of product and service and contributing the country’s economy.

2.2.3 Mission

Jmauna Bank Limited is committed to serve its’ customers through an array of

products at a competitive price by using diverse technology and fast service so that a
sustainable growth, reasonable return and contribution to the development of the
country can be ensured with a motivated and professional work-force.
2.3.4 Core values
The core values which JBL follows while it is operating are very specific and
customer friendly. According to setting up the best service and facing new challenges
there are some core values been set by the bank which are given below:

18
  Customer Focus Trust
 Integrity

 Commitment Business Ethics Quality

 Fairness Teamwork Respect

 Courtesy Harmony Unique Culture

 Responsible Corporate Citizen

2.3.5 Organizational Structure of Jamuna Bank Limited

Fig: 2.3 Organizational Structure of Jamuna Bank Limited

19
2.3.6 Products and Services
The Bank has an array of tailor made financial products and services. Such, products
are Monthly Savings Schemes, Consumer Credit Scheme, Lease Finance, and
Personal Loan for Women, and Shop Finance Scheme etc. JBL also introduced Q-
cash ATM cards for its valued customers giving 24 hours banking services through
Debit Cards. JBL offers the following services to its valued customer:

 Retail Banking

 Deposit Schemes

 Remittance and Collection

 Import and Export handling and Financing

 Loan Syndication

 Project Finance

 Investment Banking

 Lease Finance

 Hire Purchase

 Personal Loan for Woman

 24-hours Banking: Q-Cash ATM facility

 Islamic Banking

 Corporate Banking

 Consumer Credit Scheme

20
2.3.7 SWOT Analysis of Jamuna Bank Limited

Strengths:

 JBL provides fast and quality service compared to the others banks of this
country.

 JBL is operating 4th generation internet banking with automation process.

 Having very professional and experienced executives to solve the critical

problems.

 JBL has recently introduce mobile banking (Just Pay) and also a member of
SWIFT.

 Having renowned corporate clients and maintaining relationship for a long.

 JBL is popular for its CSR activities all over the country. Jamuna bank
foundation organizes free campaign on anti-drug movement, blood donation
program, free medical service, scholarship for the unprivileged students.

 Bank has high performance in foreign exchange department and financially

stable.

Weaknesses:

 JBL has lack of advertisement and promotional activities.

 Insufficient number of modern accessories for digital banking.

 In foreign exchange division JBL still follows analogue procedure while

receiving documents which is time consuming and create bad impression
towards the organization.

21
  JBL has no specific research and development division.

Opportunities:

 JBL can bring new innovation in product and servicers.

 JBL can establish more branches to capture more customer countrywide and
diversified their service.

 JBL can operate more smoothly by recruiting more skilled people.

 JBL can expand foreign exchange activities because they have already a big
number of exporter and importer on their faith.

Threats:

 New competitors and the risk in security system in overall banking system.

 Multinational and fast growing banks are capturing the market with new ideas
and technology.

 Political uncertainty and economical break down.

 Continuous pressure from government for reducing interest rate.

 New rules and policy of Bangladesh Bank.

 Problem in adjusting currency with foreign country

2.3.8 Slogan
Your Partner for Growth

22
 2.4 Overview of Southeast Bank Limited
2.4.1 History of Southeast Bank Limited
Southeast Bank Limited is a planned business bank in the private segment built up
under the ambit of Bank Company Act, 1991 and joined as a Public Limited
Company under Companies Act, 1994 on March 12, 1995. The Bank began business
keeping money activities on May 25, 1995. Amid this limited capacity to focus time
the Bank is fruitful in situating itself as a dynamic and dynamic money related
organization in the nation. The bank had been generally acclaimed by the business
network, from little business people to extensive dealers and mechanical
combinations, including the top of the line corporate borrowers for its forward –
looking business viewpoint and imaginative budgetary arrangements. Hence inside
this specific brief timeframe it has possessed the capacity to make a picture and win
noteworthy notoriety in the nation's keeping money area as a Bank with Vision.

Southeast Bank Limited has been authorized by the Government of Bangladesh as a

Scheduled business bank in the private division in compatibility of the approach of
advancement of saving money and budgetary administrations and offices in
Bangladesh. In perspective of the abovementioned, the Bank inside a time of 14 years
of its activity made a surprising progress and got together capital sufficiency necessity
of Bangladesh Bank. It has been developing quick as one of the pioneers of the new
age banks in the private part in regard of business and productivity as it is clear from
the budget summaries throughout the previous 14 years.

2.4.2 Vision

The straightforward idea is taken by the vital boss and administrators of any
association with the true objective to agree about the firm battle, which achieved as
time goes on. A strong perspective is assessed to pass on reason for mounting a total
mission. So the vision clarification is basic. It is used to get their longstanding
objectives. Their thinking is to stay as a pioneer keeping cash affiliation and
contribute in national spending plan.

23
 2.4.3 Mission

Southeast Bank Limited is especially nervousness about their task as various

assessments between chiefs must be uncovered besides decided through the task
explanation.

2.4.4 Core values

The core values of Southeast Bank Limited are;

 Integrity

 Respect

 Fairness

 Harmony

 Team Spirit

 Courtesy

 Commitment

 Service Excellence

 Insight and Spirit, Enthusiasm for Work and also Business Ethics.

24
2.4.5 Organizational Structure of Southeast Bank Limited

Fig: 2.4 Organizational Structure of Southeast Bank

Limited

25
 2.4.6 Products and Services

The products and services provided by Southeast bank are given below;
 Saving (SB)

 Short Term Deposit (STD)

 Fixed Deposit

 Pension Savings Scheme (P.S.S.)

 Education Savings Scheme (E.S.S.)

 Marriage Savings Scheme (M.S.S.)

 Savers Benefit Deposit Scheme (SBDS)

 Bearer Certificate of Deposits (3,6,12 months)

 Islamic Banking

 Consumer Credit Scheme (CCS)

 Equity & Entrepreneurship Fund (EEF)

 ATM Service

 Locker Service

2.4.7 SWOT Analysis of Southeast Bank Limited

Strengths:

 Sound Profitability and growth with good internal capital generation.

 High quality of asset.

 Quality products.

 Experienced and effective Management Team.

 Better infrastructure facilities.

 Good corporate culture and friendly working environment.

 Board with financial flexibility

 Very good reputation as a local bank

26
Weaknesses:

 Small market share.

 High concentration of fixed deposits.

 Marginal capital adequacy.

 Lack of effective marketing / promotional activities.

 Lack of full-scale automation.

 High concentration of large loans.

Opportunities:

 Scope of market penetration through diversified products.

 Regulatory environment favoring private sector development.

 Increasing trend in international business.

 Introduction of credit card and Tele-banking.

 Value addition in products and services.

Threats:

 Increased competition for market share in the common banking arena.

 Market pressure for lowering the lending rate.

 Global and local unstable political situation.

 Vulnerable Government regulations.

 Multinational banks with good services.

 Default culture all over the country.

2.4.8 Slogan
A Bank with Vision

27
 Chapter-3
Analysis & Evaluation

28
3.1 Foreign Exchange:

Foreign Exchange Department is intercontinental division of the bank. It bargains

universally. It encourages worldwide exchange through its varying methods of
administrations. It connects among shippers and exporters. On the off chance that the
branch is confirmed merchant in foreign exchange advertise, it can dispatch foreign
exchange from nearby country to foreign country. This office predominantly bargains
in foreign cash. This is the reason this office is called foreign exchange office. The
term foreign exchange has diverse meanings in various settings. Now and again it is
alluded to as the procedure of change of one cash into another, occasionally as the
strategy of exchanging cash starting with one nation then onto the next (Fabozzi &
Modigliani, 1990). In Bangladesh is has a legitimate clarification as well. As far as
area 2(d) of the F. E. R. Act 1947, as adjusted in Bangladesh, foreign exchange
implies foreign cash and incorporates instruments communicated in foreign exchange,
all stores, credits and parity payable in foreign money just as foreign money
instruments, for example, Draft, TC, Bill of Exchange, promissory note, and Letter of
Credit payable in any foreign cash. The matter of foreign exchange is getting
progressively mind boggling and strongly focused. In any case, in the setting of
exceptional development of Bangladesh's outer segment, foreign exchange business
gives a test just as an incredible opportunity to quicken development of bank's own
business. This is the Institution that encourages global exchange installment as
keeping money channel is the method for repayments. Additionally, banks meet the
other need of foreign exchange exchanges of the general population of the nation as
they are approved to bargain in foreign endless supply of consent from Central Bank
under Foreign Exchange Regulation Act. All fares and imports are executed through
the mediation of banks. They influence the route through which exporter to can get
installment from merchant. Then again they make the installment for the shipper done
by the general population of Bangladesh. One next to the other, they give supported
and non-subsidized credit office in execution of International Trade.

29
3.2 Foreign Exchange Market:

Foreign Trade volume of the world has proceeded with a complex development in the
ongoing years and it is getting greater consistently couple with development of cross
outskirt trade and speculation (Brigham, 2008). On the worldwide scale, however
Bangladesh's offer in the field of universal trade and foreign trade is pitiful, the image
is none-the-less getting more brilliant step by step. The nation's fares are developing
at an empowering pace. Bangladeshi laborers abroad send near $ 14 billion every
year. The development in foreign trade and settlements has had its effects on the
foreign trade advertise. This developing business sector is to be sure an impression of
broadening of foreign trade exchanges in the nation.

3.3 Exchange and Trade Controls:

A vital component of foreign exchange business in Bangladesh is activity of exchange

control managed statutory by Bangladesh Bank under the Foreign Exchange
Regulation Act, 1947. This Act engages Bangladesh Bank to direct the task of foreign
exchange business by banks and different elements. Albeit a portion of the prohibitive
measures have either been lifted or facilitated, Bangladesh Bank's guidelines, tenets
directions still administer the whole array of foreign exchange exchanges. The
officers of the bank should cautiously peruse the “Guidelines for Foreign Exchange
Transactions-2018” issued by Bangladesh Bank and keep themselves side by side of
changes produced using time to time through Foreign Exchange Circulars and
Notifications. Bangladesh Bank has Foreign Exchange Departments in its workplaces
at Dhaka, Chittagong, Khulna, Rajshahi, Rangpur, Barisal, Sylhet and Bogura. The
Guideline for Foreign Exchange Transactions, the authorities will likewise need to
adapt to an assortment of tenets, directions, acts, principles, arrangements and decrees
while playing out their everyday work. Of them, vital ones are Import and Export
Policies of Government of Bangladesh, Income Tax laws, Company Laws, Negotiable
Instruments Act.1881, Sale of Goods Act, Law of Contracts, AML Act, UCP 600,
URR 725, URC 522, Incoterms 2010, ISBP and so forth. The International Division
and Foreign Exchange Departments will furnish themselves with these reference
books alongside other significant reading material and other foremost productions of
global Chamber of trade.

30
3.4 Risk involve in foreign Exchange Business (Frauds and
Forgeries):

Not all the potential customers moving toward the bank will be as reasonable and legit
as one might want them to be. Some might need to open letters of acknowledge for
imports for the aim of swindling the bank in plot with the recipient abroad. Some
would need the bank to back fare arranges that they don't expect to execute. There
would in any case be individuals endeavoring to trick the save money with
manufactured drafts, stolen voyagers' checks and fake monetary certificates and heap
different methods. Bank authorities ought to keep up strict cautiousness to make
preparations for these corrupt individuals. While attentive asks would be useful to
discover the honesty and financial soundness of neighborhood customers, the bank
may enquire with all-inclusive presumed association like Dun and Bradstreet about
reliability of foreign customers. Credit reports might be acquired from foreign
journalists about foreign exporters or shippers particularly when overwhelming
responsibilities are included. It must, nonetheless, be recalled that the majority of
these reports are reserved. One must build up an aptitude to find some hidden
meaning for a practical appraisal of the standing and worth of the organizations.

3.5 Foreign Exchange Operations:

Foreign exchange sector deals with foreign currency and the transaction of it. The
foremost jobs of this department are listed:

 Letter of Credit (for Export & Import)

 Foreign Remittance

 Foreign Currency Account

31
3.6 Letter of Credit (For Export & Import):

Letter of Credit is a certification, undertaking or duty to the recipient/exporter for

making installment issued by the issuing bank for the benefit of the endless supply of
a few conditions. As distance involved in international trade, buyers and sellers do not
know each other. It is difficult for both the buyers and seller to appreciate each other’s
integrity and credit worthiness. Apart from this, it is also difficult to know various
regulations prevailing in their respective countries regarding export and import. Thus,
the buyer wants to be assured of goods and sellers want to be assured of payments.
Central Banks, therefore assure these things to happen simultaneously by opening
Letter of Credit guaranteeing payments to seller and goods to buyer. By opening a
Letter of Credit on behalf of buyer in favor of seller, commercial banks undertake to
make payments to a seller subject to submission of documents drawn on in strictly
compliance with Letter of Credit terms giving title of goods to the buyer. It is a
conditional guarantee. The Letter of Credit thus constitutes one of the most important
methods of financing foreign trade.

 Is to make a payment to or the order of a third party (“the Beneficiary”), or is

to accept and pay bills of exchange (Draft’s) drawn by the Beneficiary,
 Authorizes another bank to effect such payment, or to accept and pay such
bills of exchange (Draft(s)),
 Authorizes another bank to negotiate,

Against stipulated document(s), provided that the terms and conditions of the Credit
and complied with.

On the other hand, Letter of credit can be defined as a “Credit Contract” whereby the
buyer’s bank is committed (on behalf of the buyers) to place an agreed amount of
money at the seller’s disposal under some agreed conditions. Since the agreed
conditions include amongst other things, the presentation of some specified
documents, the letter of credit is called Documentary letter of credit.

3.6.1 Types of Letter of Credit:

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

Which denotes only two types of Letter OF Credits:

32
 1. Revocable Letter of Credit:

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

2. Irrevocable Letter of Credit:

An irrevocable credit is a documentary credit, which cannot be revoked, varied or

changed/amended or cancelled without the consent of all parties- buyer (Applicant),
seller (Beneficiary), Issuing Bank, and Confirming Bank (in case of confirmed Letter
of Credit). Irrevocable Credit gives the seller greater assurance of payments, but
he/she remains dependent on an undertaking of a foreign bank.

Liability of the Issuing and Conforming Banks:

An irrevocable credit constitutes a definite undertaking of the Issuing Bank, provided

that the stipulated documents are presented to the Nominated Bank or to the Issuing
Bank and that the terms and conditions of the credit.

3.6.2 Types of L/Cs provided by Bank:

Back to Back L/C:

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

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

33
 1. Foreign Back-to-Back Credit.

2. Local Back to Back Credit

Revolving L/C:

A revolving credit is a credit, which provides for the credit to be renewed

automatically after use without the need to renew the credit every time. It can be
resolved with respect to either:

1. Time

2. Amount (i.e. total value of the credit)

Transferable L/C:

A transferable credit is a credit, which can be transferred in whole or part by the

original beneficiary to one or more “Second beneficiaries”. It is normally used when
the 1st beneficiary does not supply the goods himself, but acts as an intermediary
between the supplier and the ultimate buyer.

3.6.3 Documentary requirement for opening L/C:

 Copy of Trade License with import permission

 Original Import Registration Certificate (IRC) & Passbook with Current Year
Renewal
 Indenter Registration Certificate if necessary

 Copy of TIN Certificate with update return

 Copy of VAT Certificate

 Up to date Credit Report of Beneficiary if the L/C amount over USD10,000.00

 CIB (Credit information bureau) Report which will be collected from

Bangladesh Bank
 Party Application in their letter head pad

 Proforma Invoice duly accepted by L/C Applicant

34
  L/C application from supplied by Bank duly filled in & signed by Applicant

 Insurance Cover Note with Money Receipt & VAT certificate

 LCA Form supplied by Bank which is signed by Applicant

 IMP Form supplied by Bank which is duly filled in & Signed by Applicant

 L/C margin which is approved by Head Office

 Commission, Vat, Stamp, Misc. & Swift/Courier Charge as prescribed by

H.O.
3.6.4 Opening L/C:
Necessary entries to be given in the L/C opening register by allocating a L/C number
and following vouchers are to be passed for completion of opening transactions at BC
selling rate (spot).

3.6.5 Issuing the Letter of Credit:

Usually a Letter of Credit contains the following information and terms and
conditions:

 Charges;

 Country of origin of goods;

 Currency and amount;

 Date and place of the expiry of the Documentary Credits;

 Description of goods and quantity;

 Documents required for negotiation;

 Instruction for negotiating bank;

 Last date of shipment;

 Letter of Credit Authorization (LCA) number, IRC (Import Registration

Certificate) number and Harmonized System (HS) code;
 Mode of Carrying –Air/Ship/Truck;

 Name and address of beneficiary;

 Name and address of the advising bank;

 Name and address of the applicant;

35
  Name of the issuing Bank and Branch;

 Negotiating bank preferably freely negotiable in any bank;

 Number of Letter of Credit and date of opening;

 Payment Term-Sight;

 Period of Negotiation;

 Period of presentation;

 Port of Loading and port of Discharge;

 Reimbursing Bank and payment mode;

 Terms and conditions regarding Transshipment and Partial Shipment;

3.6.6 The Letter of Credit (L/C) Process

 The various steps involved in the operation of a letter of credit are described as
follows. Please refer to Figure below for an elaborate illustration.
 The importer and exporter have made a contract before a L/C has been issued.

 The importer applies for a L/C from his banker known as the issuing bank. He
may have to use his credit lines.
 The issuing bank opens the L/C that is channeled through its overseas
Correspondent bank, known as the advising bank.
 The advising bank informs the exporter (beneficiary) of the arrival of the L/C

 Exporter ships the goods to the importer or other designated place as stipulated
in the L/C.
 Meanwhile, the exporter also prepares his own documents & collects transport
documents or other documents from relevant parties. All these documents will
be sent to his banker, which is acting as the negotiating bank.
 Negotiation of export bills happens when the banker agrees to provide him
with finance. In such case, he obtains payment immediately upon presentation
of documents. If not, the documents will be sent to the issuing bank for
payment or on an approval basis as in the next step.
 Documents are sent to the issuing bank for reimbursement or payment

 Issuing bank honors, it's undertaking to pay the negotiating bank on condition
that the documents comply with the L/C terms and conditions.

36
  Issuing bank releases documents to the importer when the latter makes
payment to the former or against the latter's trust receipt facility.
 The importer takes delivery of goods upon presentation of the transport
(usually shipping) documents.

3.6.7 Parties Involved in Letter of Credit (L/C):

The Applicant:

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

The Issuing Bank:

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

The Advising Bank:

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

The Beneficiary:

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

The Confirming Bank:

The confirming bank confirms that the issuing bank has issued a L/C. The confirming
bank becomes directly obligated on the credit to the extent of its confirmation and by
confirming, it acquires the rights and obligations of an issuer. The advising bank
usually does L/C confirmation or a third bank in the beneficiary’s located.
37
The Negotiating Bank:

The bank that agrees to examine the documents under the L/C and pay the beneficiary
is called the negotiating bank. Typically, the advising bank is nominated as the
negotiating bank.

Reimbursing Bank:

The bank nominated by the issuing bank to provide reimbursement to the negotiating
bank or the payee bank is referred to as the reimbursing bank.

3.7 Foreign Remittance

Foreign remittance is the transfer of foreign currency from one nation to another
nation. Actually, foreign remittance is purchase and sale of freely convertible foreign
currencies as permissible under exchange control regulations of the country. Foreign
remittance is very important for the country as valuable foreign exchange is involved
in the transfer mechanism.

3.7.1 Types of Remittance:

There are two types of foreign remittance

1. Foreign Inward Remittance

2. Foreign Outward Remittance

3.7.2 Foreign Inward Remittance:

Remittance comes from foreign countries to our country is called inward remittance.
To the bankers or Ads inward remittance means purchase of foreign currency by
authorized dealers. Usually, inward remittances are received by draft, mail transfer,
TT, purchase of foreign bills& traveler’s cheque, export bills; basically, these are the
formal channels of receiving inward remittance. A local bank also receives indenting
commission of local firm also comes under purview of inward remittance.

3.7.3 Collection procedure:

 To make entry in Foreign Bills Collection Register

 To prepare forwarding Schedule in Quadruplicate

38
  To prepare vouchers on realization of proceeds Payment Procedure

 To check up the custom declaration

 To consult purchase agreement

 To obtain the signature of TC and to verify the same with the previous
signature of the beneficiary on the TC

 To make entry register for TC and Drafts purchased

 To prepare vouchers and FET schedule

 Lastly send for collection

3.7.4 Cancellation of Inward Remittance:

Any inward remittance which has already been reported to the Bangladesh Bank,
being subsequently cancelled, either in full or part, because of non-availability of
beneficiary.

Authorized Dealer must report the cancellation of inward remittance as an outward

remittance of form “T/M” required document are;

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

 The name and address of the beneficiary

 The amount of the purchase as effected

 Reasons for cancellation

3.7.5 Foreign Outward Remittance:

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

39
Outward remittance in favor of beneficiaries outside Bangladesh may be made in any
of the following manners-

Formal channel:

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

Informal Channel:

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

3.8 Foreign Currency Account:

It is possible to operate a foreign currency (Dollar) account. The account holder gets a
chequebook against the account and has to state the amount in respective currency.

Types of Account:

1. FC Account

2. Resident Foreign Currency Deposit Account

3. Non-resident Foreign Currency Deposit Account.

3.8.1 Currency in which FC A/Cs can be opened

FC Accounts can be opened either in

 Pound Sterling

 US dollar

40
  Euro

 Japanese Yen

3.8.2 Papers/ Documents required for opening FC A/C

For Bangladesh wage Earners

 Photocopy of 1st seven pages of valid passport and visa page

 Photocopy of employment contract/ appointment letter/ work permit.

 Two copies of passport size photograph of each account holder and nominee
duly attested.

For foreign National/ company/ Firm

 Two copies of photograph of account holder for individual operations of other

account holder.
 Copies of relevant pages of passport for individual and operators of other
account holder.
 Copies of service contract/ work permit, if any for individual.

 Copies of registration in Bangladesh with Board of investment/ Bangladesh

Bank for foreign/ joint venture firm.
 Copies of the memorandum and articles of Association/ Laws/ Bye Laws, etc.
on joint venture Agreement for joint venture co.

Mode of Operation:

Foreign currency A/c opened in the name of Bangladeshi nationals working

abroad or self-employee abroad can now be maintained as long as the current
holder desires. Such accounts may also be opened by the eligible persons
within six months of their return to Bangladesh.

Deposits:

41
 Credit to a foreign currency Account may be made against inward remittance
of foreign exchange in any form of transfer from another FC account on non-
resident taka accounts of bankers abroad. Portion of repatriated export
proceeds of Merchandize service export are allowed to credit to the exporters
retention quota account.

Withdrawals:

a. Payment may be made freely abroad from these FC accounts to the

extent of balance lying their in. Local disbursements may also be made
freely in Take from such foreign currency accounts.

b. Funds lying in FC accounts can be utilizing for import of goods and

commodities as per instructions issues by the CCI & E and Bangladesh
Bank.

c. No payment for foreign exchange may be made to or on behalf of any

resident in Bangladesh out of the FC account except foreign diplomats
or privileged person who has specific authority from Bangladesh Bank
to accept such payment.

42
3.9 Imports of Mutual Trust Bank Limited, Dutch Bangla Bank
Limited, jamuna Bank Limited & Southeast Bank Limited

Imports

Year MTBL DBBL JBL SEBL

(Taka in (Taka in (Taka in (Taka in
Millions) Millions) Millions) Millions)
2015 44,273 135047.1 65,454 80957
2016 51,593 135,113.40 89,988 102,115
2017 63,988 151,979.30 94,047 129,756
2018 78,420 167,371.30 112,240 148,677
2019 105,030 143,652.80 132,635 166,988
Table: 3.1 Imports of MTBL, DBBL,
JBL, SEBL

180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
2015 2016 2017 2018 2019

MTBL DBBL JBL SEBL

Fig: 3.1Comparative Imports (Taka in Millions)

Interpretation: From this graph we can see that, among the four banks Dutch Bangla
Bank is the leading bank in case of Imports, Southeast Bank is in second position,
Jamuna Bank is in the third position and Mutual Trust Bank is in the last position. All
banks Imports gradually increased.

44
3.10 Exports of Mutual Trust Bank Limited, Dutch Bangla Bank
Limited, Jamuna Bank Limited & Southeast BankLimited

Exports
Year MTBL DBBL JBL SEBL
(Taka in (Taka in (Taka in (Taka in
Millions) Millions) Millions) Millions)
2015 33,295 37341.87 18,617 28565
2016 38,641 39,563.35 21,407 32718
2017 45,727 44,873.24 25,489 36893
2018 51,524 52,754.39 31,001 43956
2019 55,839 57,269.85 49,456 50231

Table: 3.2 Exports of MTBL, DBBL,

JBL, SEBL

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0
2015 2016 2017 2018 2019

MTBL DBBL JBL SEBL

Fig: 3.2Comparative Exports (Taka in Millions)

Interpretation: From this graph we can see that, among the four banks Dutch Bangla
Bank is the leading bank in case of Exports, Mutual Trust Bank is in the second
position, Southeast Bank is in the third position and Jamuna Bank is in the last
position All Banks Exports gradually increased.

45
3.11 Foreign Remittances of Mutual Trust Bank Limited, Dutch
Bangla Bank Limited, jamuna Bank Limited & Southeast Bank
Limited

Foreign Remittances

Year MTBL DBBL JBL SEBL

(Taka in (Taka in (Taka in (Taka in
Millions) Millions) Millions) Millions)
2015 40893 95745 37548 39,299.10

2016 47643 108532 52391 48,740.50

2017 58695 117293 45923 60,708.50

2018 73732 129987 62863 64,665.84

2019 86496 136597 79456 95,405.40

Table: 3.3 Foreign Remittances of MTBL, DBBL,

JBL, SEBL

160000
140000
120000
100000
80000
60000
40000
20000
0
2015 2016 2017 2018 2019

MTBL DBBL JBL SEBL

Fig: 3.3Foreign Remittances (Taka in Millions)

Interpretation: From this graph we can see that, among the four banks Dutch Bangla
Bank is the leading bank in case of Foreign Remittances, Mutual Trust Bankis in the
second position, Southeast Bank is in the third position and Jamuna Bank is in the
last position. All Banks Foreign Remittances gradually increased.

46
3.12 Average Imports of Mutual Trust Bank Limited, Dutch Bangla
Bank Limited, jamuna Bank Limited & Southeast Bank Limited

160,000
146632.78
140,000
125698.6
120,000
98,873
100,000 MTBL
DBBL
80,000 68,661 JBL
60,000 SEBL

40,000

20,000

0
Fig: 3.4Comparative Average Imports (Taka in Millions)

Interpretation: From this graph we can see that, among the four banks Average
Imports of five years, the Average Import of Mutual Trust Bank is 68,661 Million the
Average Import of Dutch Bangla Bank is 1,46,632.78 Million, the Average Import of
Jamuna Bank is 98,873 Million and the Average Import of Southeast Bank Limited is
125698.6 Million.

47
3.13 Average Exports of Mutual Trust Bank Limited, Dutch Bangla
Bank Limited, jamuna Bank Limited & Southeast Bank Limited

50,000
45,005 46360.54
45,000
40,000 38472.6

35,000
29,194 MTBL
30,000
DBBL
25,000
JBL
20,000
SEBL
15,000
10,000
5,000
0

Fig: 3.5Comparative Average Exports (Taka in Millions)

Interpretation: From this graph we can see that, among the four banks Average
Exports of five years, the Average Export of Mutual Trust Bank is 45,005 Million, the
Average Export of Dutch Bangla Bank is 46360.54 Million, the Average Export of
Jamuna Bank is 29,194 Million and the Average Export of Southeast Bank Limited is
38,472.6 Million.

48
3.14 Average Foreign Remittances of Mutual Trust Bank Limited,
Dutch Bangla Bank Limited, jamuna Bank Limited & Southeast
Bank Limited

140000

117630.8
120000

100000
MTBL
80000
DBBL
61491.8 61,763.87
55636.2 JBL
60000
SEBL
40000

20000

Fig: 3.6Comparative Average Foreign Remittances (Taka in Millions)

Interpretation: From this graph we can see that, among the four banks Average of
Foreign Remittances of five years, the Average Foreign Remittances of Mutual Trust
Bank is 61,491 Million, the Average Foreign Remittances of Dutch Bangla Bank is
1,17,630.8 Million, the Average Foreign Remittances of Jamuna Bank is 55,636.2
Million and the Average Foreign Remittances of Southeast Bank Limited is 61,763.87
Million.

49
 Chapter-4

Findings, Recommendations and

Conclusion

50
4.1 Findings
To know the actual performance of MTBL, I have done different types of
analysis. Here I have prepared the results of analysis in a concise way to get an
overall idea of my study which are given below:

 Technological involvement is not sufficient in Foreign Exchange department.

As a result, some process takes a long time to perform, when it is needed.
 Sometimes clients are discouraged by the bank to open a new L/C due to
shortage of necessary documents.
 The Foreign Exchange Department of a Banks is strongly regulated by the
central bank of Bangladesh but due to lack of knowledge or experience of the
employees the rules are not always maintained properly.
 To open a new L/C, Bank takes long time for approval for a new customer.

 On the job training is not sufficient for the employees of foreign exchange
department.
 Provide little assistance in relation with foreign exchange to the small
entrepreneur comparing to large business houses.
 Limited promotional activities about foreign exchange services to increase
motivate its present and potential investment client.
 In case of average imports per year, MTBL was in the 4th position among the 4
banks where the amount of average import per year was 68,661 (Million).
 In case of average exports per year, MTBL was in the 2nd position among the 4
banks where the amount of average import per year was 45,005 (Million).
 In case of average foreign remittances per year, MTBL was in the 3 rd position
among the 4 banks where the amount of average import per year was 61491.8
(Million).

51
4.2 Recommendations
After analyzing the findings, I have some recommendations for MTBL. I think these
recommendations could be very helpful to earn profit and keep their position in the
banking sector stronger:

4.2.1 MTBL can be increased technological involvement in Foreign Exchange

department.
4.2.2 They can encourage clients to open a new L/C due to shortage of documents.

4.2.3 They can arrange different types of training related to Foreign

Exchange Operations to increase knowledge or experience of the
employees.
4.2.4 Bank can reduce long time procedure for approval for a new customer in
caseof Foreign Exchange.
4.2.5 They can provide more assistance in relation with foreign exchange
to thesmall entrepreneur comparing to large business houses.
4.2.6 Bank can increase their promotional activities about foreign exchange
servicesto increase motivate its present and potential investment client.
4.2.7 They can provide more offer to importers to attract them.

4.2.8 They can ensure quick payment to attract exporters.

4.2.9 Foreign exchange operations may be done in a better way.

4.2.10 MTBL may expand their foreign exchange operations in more branches.

4.2.11 Need to revise the Foreign Exchange related charges.

52
4.3 Conclusion

From the beginning of greater change in the world economic structure, Mutual Trust
Bank Limited is trying to develop banking sector through welfare and servicing to the
people. Mutual Trust Bank Ltd is committed towards the excellence in the service
with efficiency, accuracy and proficiency. Mutual Trust Bank, being a bank of twenty
first century, is also extending such contributions as to the advancement of the
socioeconomic condition of the country. Like of most of the commercial banks,
foreign exchange department is one of the most important departments of Mutual
Trust Bank Ltd. Perhaps, it is the most important department of the Bank. This
department is driving the bank from the front. MTBL actively takes place in foreign
exchange especially in export and import. Every year bank earns a lot of money by
issuing letter of credit and its growth rate increase at in increasing rate. Through the
import, export and foreign operations, this department is making a great contribution
to the bank and the economy as a whole. In this study it is found that MTBL has
reached the position by its commitment, people’s love and dedicated human resource.
Mutual Trust has been shown supremacy in all kind of banking operations in our
country. The competent management of Mutual Trust Bank Limited should come
forward to pragmatic strategic decision like-easy procurement, one stop service, and
time service customers’ services with sufficient logistics supports for future
betterment of the bank. Despite problems and weaknesses, therefore, it is better for
Mutual Trust Bank Ltd to think about their existing steps and take the necessary
initiatives to fix up the problems and imply the recommended steps to be successful
and become the market leader in near future. To conclude I must say that Mutual
Trust Bank Limited has immense potential in Bangladesh. It can play vital role in
bringing revolutionary changes in our life with both material and moral world and in
individual and collective level.

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 Bibliography

Books:
 Brigham, E. F. (2008). Financial Management Theory and Practice (12th
Edition). Mason, OH: Thompson South- Western

 Fabozzi, F. J; & Modigliani, F. (1990) Foundations of Financial Markets and

Institutions (3rd Edition). USA: Prentice Hall.

Annual Reports:
 Dutch Bangla Bank Limited, Annual Report- 2019
 Dutch Bangla Bank Limited, Annual Report- 2018
 Dutch Bangla Bank Limited, Annual Report- 2017
 Jamuna Bank Limited, Annual Report- 2019
 Jamuna Bank Limited, Annual Report- 2018
 Jamuna Bank Limited, Annual Report- 2017
 Mutual Trust Bank Limited, Annual Report- 2019
 Mutual Trust Bank Limited, Annual Report- 2018
 Mutual Trust Bank Limited, Annual Report- 2017
 Southeast Bank Limited, Annual Report- 2019
 Southeast Bank Limited, Annual Report- 2018
 Southeast Bank Limited, Annual Report- 2017

Web References:
 www.mutualtrustbank.com
 https://www.dutchbanglabank.com
 jamunabankbd.com
 www.southeastbank.com.bd
 https://www.bb.org.bd/
 https://www.assignmentpoint.com/bank-structure-of-mtbl.html
 http://www.msrblog.com/business/finance/dbbl.html
 https://www.slideshare.net/
 https://www.assignmentpoint.com/-southeast-bank-ltd.html
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