INTERNSHIP REPORT

ON

FOREIGN EXCHANGE ACTIVITIES OF

SOCIAL ISLAMI BANK LIMITED

Submitted to:

Emran Khan
Lecturer
Department of English

Faculty of Humanities and Social Science

Daffodil International University

Submitted by:
Kazi Maria Rahman
ID: 193-10-2124
Department of English

Date of Submission: 25.05.2023

*This internship report has been submitted in partial fulfillment of the requirements for awarding
the degree B.A. (Hons) in English.

©Daffodil International University

 Letter of Transmittal
25 May,2023
The Supervisor
Emran Khan
Lecturer
Department of English
Daffodil International University
Subject: Submission of Internship Report.

Dear Sir,

With due respect, I am submitting my Internship report on the topic titled “Foreign Exchange
Activities of Social Islami Bank Limited” as a partial fulfillment of my B.A in English Program.
It is my pleasure to inform you that the report contains about Foreign Exchange Activities of Social
Islami Bank Ltd, Dhanmondi Branch, where I worked as an intern for three months.
Due to time constraints, I have tried as much as possible to avoid giving any vague information. If such
arises I am prepared to clarify them.

Therefore, I sincerely hope that you will appreciate my effort.

Sincerely yours,

Kazi Maria Rahman

ID :193-10-2124
Batch: 48
Department of English
Daffodil International University

©Daffodil International University II

 Student’s Declaration

I am Kazi Maria Rahman, student of Daffodil International University ,hereby declare that the internship
project work entitled ‘Foreign Exchange Activities of Social Islami Bank.’ submitted to Daffodil
International University as a part of my B.A. (Hons) in English curriculum is a report of an original work
done by me under the supervision of MD. Emran khan, Lecturer, Daffodil International University. This
report has not been previously submitted for any purpose like examination, journal etc

Kazi Maria Rahman

ID :193-10-2124
Batch: 48
Department of English
Daffodil International University

©Daffodil International University III

 Supervisor’s Declarations

Dear student,
I, am Emran khan certify that Kazi Maria Rahman,ID:193-10-2124, Batch-48 was assigned by the
Department of English, Daffodil International University under my supervision to fulfill her internship
report. She joined Social Islami Bank Ltd. to complete her three months of internship. Her internship
topic is ‘Foreign Exchange Activities of Social Islami Bank’. I’d also like to thank Social Islami Bank
Ltd for giving her the opportunity to complete her internship at their organization. This internship report
is prepared under my supervision and has not been submitted to anywhere for any other purpose.

I hope this study and experiences that she gathered will help her in building up her career.

Emran Khan
Lecturer
Department of English
Daffodil International University

©Daffodil International University IV

 Acknowledgement

At first, I would like to express my gratitude to Almighty Allah who has given me the opportunity to
go through the total process of internship and to write a report in this regard.

I would like to mention some people with due respect and honor who assisted me, without any hesitation to
complete my Internship report within the due time. Therefore, I would like to thank them a lot all from the
bottom of my hearts. In this procedure, at first, I would like to thank my honorable supervisor Emran Khan,
Lecturer (Daffodil International University for giving me very structured guidance and an exceptionally
well-arranged schedule to complete my report.

Most importantly I would like to give my thanks to honorable Md. Mahabub Hasan (Senior Principal
Officer) sir &. MD Emdad Hasan (officer), who were always helpful and ready to guide to the right path if
I’ve faced any difficulties during the period of my internship.

I was closely attached with them during my internship period. Without their help this project would have
been difficult to complete.

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 Table of Content
Letter of Transmittal ................................................................................................................... iii
Student’s Declaration ................................................................................................................... iv

Supervisor’s Declarations ............................................................................................................ v

Acknowledgement ......................................................................................................................vi

List of Table ................................................................................................................................. x

List of Figure............................................................................................................................... xi

Chapter 1-Introduction ............................................................................................................ 1

1.1 Origin of the Report ............................................................................................................. 2

1.2. Broad objectives ................................................................................................................. 2

1.2.1 Specific objectives ......................................................................................................... 2
1.3 Limitations ........................................................................................................................... 3

Chapter 2: INSTITUTIONAL OVERVIEW OF SIBL ........................................................... 4

2.1 History of SIBL ...................................................................................................................5
2.2 Vision of SIBL .....................................................................................................................5
2.3 Mission of SIBL ................................................................................................................... 6
2.4 Corporate culture of SIBL .................................................................................................... 6
2.5 Corporate social responsibilities (CSR) of SIBL .................................................................. 7
2.6 Divisional structure of SIBL ............................................................................................ 7
2.7 Organizational structure of SIBL ...................................................................................... 8

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Chapter 3: Methodology and Processing................................................................................. 10
3.1 Methodology ..................................................................................................................... 11
3.2 Sources of Data ................................................................................................................. 11
3.3 Primary Data…………………………………………………………………………….11
3.4 Secondary Data…………………………………………………………………………..12

Chapter 4: Analysis & Discussion of study objectives ......................................................... 13

4.1 To identify the foreign exchange activities & operations of SIBL ...................................................... 14
4.2 To analyze LC (Export- Import procedures) of SIBL............................................................. 17
4.3 To evaluate the foreign remittance management procedure of SIBL.................................................. 20

Chapter 5: Internship Activities ..................................................................................................... 24

5.1 Work, workflow, People Met & my own Experience............................................................. 25
5.2 My Job Responsibilities .......................................................................................................... 26
5.3 Linkage between work-Internship topic ................................................................................. 26

Chapter 6: Findings, Recommendations & Conclusions ............................................................. 27

6.1 Findings of the Study .............................................................................................................. 28
6.2 Conclusion .............................................................................................................................. 28
6.3 Recommendations ................................................................................................................... 29

Books & References .................................................................................................................... 30

Appendices ................................................................................................................................... 31

©Daffodil International University VII

 List of Table

Table Page Number

Table 1: Inter-bank Exchange Rates as on Jan 22, 2023 Page No: 15
Table 2: Cross-rates as on September 6, 2021 Page No: 15
Table 3: Import Performance of last 5 years Page No :19
Table 4: Export Performance of last 5 years Page No: 20
Table 5: Foreign Remittance Performance of last 5 years Page No:22

©Daffodil International University VIII

 List of Figure
Figure Page Number
Figure 1: Divisional Structure Page No: 7
Figure 2: Organizational Structure Page No: 8
Figure 3: Ways of data collection Page No: 11
Figure 4: Functions of Foreign Exchange Department Page No: 16
Figure 5: L/C Process Flow-chart Page No:18
Figure 6: Figure 6: Import Performance of last 5 years Page No: 19
Figure 7: Export Performance of last 5 years Page No: 20
Figure 8: Foreign Remittance Performance of last 5 years Page No: 23

©Daffodil International University IX

Chapter One: Introduction

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 1.1 Origin of the Report

I work as an Intern in the Social Islami Bank, Dhanmondi Branch, for studying only 3 months. After study
I have to make a Report. The report covers the Bank’s Foreign Exchange Activities. So, the report covers
“Foreign Exchange Activities of Social Islami Bank Limited”.
In this 21st century, there is a huge competition between the bank sectors because there are so many banks
and these banks hold their reputation by providing the best services. Also, they focus on customer service
as well as how to deal with customer in a best way. It has been my practical experience in a bank.
Theoretical knowledge and practical experience stand for the opposite. Theoretically, we can get an idea
on the other hand practical experience gives us an entire knowledge and we face both good and bad
experiences. So this practical experience will help me to build up my future career and also improve some
skills. Through this customer dealing experience, can easily improve communication skill, language skill,
professional grooming, time management, self-confidence and different thoughts as well as ideas.
As a fully licensed commercial bank, Social Islami Bank Limited is being managed by a highly professional
and dedicated team with a long experience in banking. They constantly focus on understanding and
anticipating customer needs. As the banking scenario undergoes changes so is the bank and it repositions
itself in the changed market condition.

1.2. Board Objectives:

The broad objective is to know about the Foreign Exchange Activities of Social Islami Bank Limited

1.2.1 Specific Objectives:

➢ To show the process of an internship in a bank.

➢ To create a relationship between academic knowledge and working experiences.

➢ To identify the foreign exchange activities & operations of Social Islami Bank of
Bangladesh Limited.
➢ To analyze LC (Export- Import procedures) of Social Islami Bank Limited.

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1.3 Limitations

In spite of my best effort, I am sure of some lacking prevailing in this report. These are caused by some
limitations that are enumerated below:
❖ The duration of my internship program is only three months. The allocated time is not sufficient for
me to gather knowledge and to make the study a complete and fruitful one.
❖ For the lack of our practical knowledge, some shortcoming may be available in the paper.
❖ Some data could not be collected for their confidentiality and official secrecy.
❖ The rate of success of my study may be limited, as I might have failed to collect proper information
due to lack of my experience.
❖ Some analysis hampered for the inadequacy of data provided by the officials.

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 Chapter Two:

Institutional overview of SIBL

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 2.1 History of SIBL:
Social Islami Bank Limited is a well-known Shari’ah based Islami bank in Bangladesh. The founder of
SIBL is Mahbub ul Alam. At first it was established as Social Investment Bank Limited on 22
November 1995. After it converted to Social Islami Bank Limited. It has a large popularity in
Bangladesh. It has 172 branches also 22AD branches, 104 sub branches and 200 agent banking outlets
up to October, 2021. The headquarters of SIBL is in the City Center, Motijheel. The CEO of this bank
is Zafar Alam. SIBL is also a generation commercial bank which follows the Shariah’ Principles. It has
two subsidiary companies. One is SIBL Securities Ltd and the other one is SIBL Investment Ltd. It
provides banking and financial services. The activities of this bank is divided into some parts. Some of
them take the responsibility of the financial side. Some of them keeping all the records. Some people
work in field and handle clients. The financial institution observes all the financial agreements and
developing the economic growth. Marketers also can be benefited by SIBL. They can develop their
creative project through this bank. The bank was open from 9.30 am to 7.00 pm and the services of the
bank was started from 10.00 am to 4.00 pm. Recently government has changed the schedule. Now the
bank is open from 8.30 am to 6.00 pm and the services of the bank is started from 9.00 pm to 3.00 pm.
Bank close on Friday and Saturday because these are government’s holidays.

2.2 Vision of SIBL:

By ensuring the highest standard of clients services through updated information technology, making due
contribution to the national economy and establishing themselves firmly at home and abroad as a front ranking
bank of the country are their cherished vision. Social Investment Bank Ltd started its journey with the concept
of 21st Century Islamic participatory three sector banking model:

• Formal Sector- It focuses on commercial banking with the latest technology.

• Non-Formal Sector- It focuses on family empowerment.
• Voluntary Sector- Increase social capital mobilization by CASH WAQF and others.
• “Reduction of Poverty Level” is their vision which is started with the commitment of “Working together
for a Caring Society”

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 2.3 Mission of SIBL:

SIBL gives effort to their activities and adding a new proportion to their banking services in both home and
abroad. Along with this they are giving the best priority to their clients ensuring all the commitments to serve
the society. They want to build up a strong client services in national and international and reached their goal.
They have some mission:
• The latest technology with high quality financial services.
• Fast, Accurate and Satisfactory.
• Economic growth strategy.
• Introducing innovative Islamic Banking products.
• Encouraging and empowering real poor families.
• Support for the social benefit organizations.

2.4 Corporate culture of SIBL:

This Bank is one of the most disciplined Banks with a distinctive corporate culture. Here the employees
believe in shared meaning, shared understanding and shared sense making. They can see and understand
events, activities, objects and situation in a distinctive way. They mound their manners and etiquette,
character individually to suit the purpose of the Bank and the needs of the customers who are of paramount
importance to us. The people in the Bank see themselves as a tight knit team/family that believes in working
together for growth. The corporate culture we belong has not been imposed; it has rather been achieved
through our corporate conduct.

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2.5 Social responsibilities (CSR) of SIBL:

At least 2% of our annual profit of every year is put aside for the foundation to conduct Corporate Social
Responsibilities (CSR) activities. The mainstream CSR activities that are carried out through this
foundation are:

o Healthcare service.
o Scholarship program for brilliant poor student
o Education Promotion Scheme
o Helping people affected by natural calamities
o Helping people in slum areas
o Donation to educational institutions to setup computer lab
o Beautification of Dhaka City

2.6 Divisional structure of SIBL:

Figure 1: Divisional Structure

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2.7 Organizational structure of SIBL:

Figure 2: Organizational Structure

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 Chapter Three:
Methodology and Processing

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 ➢ 3.1 Methodology
I had three opportunities in my internship. Authority suggested that we can do our internship in an industry
or an institution. Also, they offered a thesis as well. There were some restrictions in the thesis and it is really
helpful for those people who are interested in the teaching profession. They can add their thesis book as a
plus point for higher education. Moreover, it is thoughtful for scholarships and Ph.D. However, my center of
attention was a bank job. Since my childhood, I always wanted to be a banker. My dream job is MTO in a
reputed bank. Therefore, I had decided that I would take internship in a bank. Fortunately, I got a chance to
do an internship in a private bank which is Social Islami Bank Ltd. Social Islami Bank is a Shari’ah based
Islami bank. I always prefer Islami banks at first. Because their rules and values maintain the Islamic rules.
Before my internship, I searched about some banks and I found that SIBL would be best for me. Because its
vision, mission and values are matched with my own interest. There were some rules which I had to
followed. There was a process and through this process I have completed my internship. At first I had to
choose an industry and then collected a formal approval letter from the department of English. Then I took
the letter and submitted it in the bank with my cv and other documents. Then I got a permission letter from
the bank. After that I was prepared for my three-month internship. My supervisor suggested me to note
down all the activities which I have done in my internship. Afterwards I got a certificate from the bank.

➢ 3.2 Sources of Data

Essential data sources both primary and secondary are identified which will be needed to complete and
work out the study. Information collected to furnish this report is both from primary and secondary sources.

SOURCE OF DATA

DATA DATA

Figure 3: Ways of data collection

➢ 3.3 Primary sources are:

• Practical work exposures from the different desks of various department of

the Branch covered.
• Face to face conversation with the officers and clients
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 • Exposure on different desks in the bank.
• File study

➢ 3.4 Secondary Sources are:

• Annual Report of Social Islami Bank Ltd.

• Gather knowledge about the bank from their banking website.
• Some internship report which has been prepared on banking sector.
• Publications obtained from different libraries and from internet.
• Different ‘Procedure Manual’ published by Social Islami Bank Ltd.
• Different circular issued by Head Office of Social Islami Bank Ltd. & Bangladesh Bank.

©Daffodil International University 12

 Chapter Four:
Analysis & Discussion of Study Objectives

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4.1 Identify the foreign exchange activities & operations of Social Islami
Bank Limited.
In this era of globalization, no country is self-sufficient. Every country has their own policies and
opportunities to trade goods and services with other countries. Countries now enjoy the liberation of trade.
Countries trade goods and services with each other. Countries which have cooperative advantage in any
goods sell those goods to other countries which have no comparative advantage producing those certain
goods.

A country has comparative advantage in producing a good when the country’s opportunity cost of
producing the good is lower than the opportunity cost of producing the good in another country. The pattern
of trade between countries is determined by comparative advantage. This means that even countries with
poor technologies can export the goods in which they have comparative advantage. This leads to the concept
of Export and Import. All countries experience gains from trade. That is, the utility of an importing or
exporting country is at least as high as it would be in the absence of international trade. When a country has
the best technology for producing a good, it has an absolute advantage in the production of that good.

Absolute advantage is not a good explanation for trade patterns. Instead, comparative advantage is the
primary explanation for trade among countries. A country has comparative advantage in producing those
goods that it produces best compared with how well it produces other goods. The Ricardian model explains
how the level of a country’s technology affects its trade pattern. It also explains the concept of comparative
advantage and why it works as an explanation for trade patterns. Countries that export goods to other
countries earn foreign currency and countries which import goods to other countries sell domestic currency.
A country’s terms of trade equal the price of its export good divided by the price of its import good. A rise
in a country’s terms of trade makes it better off because it is exporting at higher prices or importing at lower
prices. Money is the medium of exchange of goods and services. This whole process is under the Foreign
Exchange concept. The bank plays as an intermediary institution in this export-import process. Bank helps
the sellers and buyers to transact the money while exchanging the goods and services. Both domestic and
foreign companies complete the transaction through the bank. In this regard, foreign exchange department
plays a vital role in the bank and the economy of a country. No country can perform trade if the country
has no bank.

Fundamental of Foreign Exchange Policy

There are 3 fundamental aspects in the general mechanisms of foreign exchange:

• Every country has its own currency legal distinctive unit account.
• The exchange rate is affected by means of credit instruments e.g., draft, mail, transfer, telegraphic
transfer etc.
• Banks by bookkeeping entry carried out in the two centers concerned affect the conversion of one
currency into another.

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Activities of Foreign Exchange Department of a Bank

The Foreign Exchange department deals with foreign currency and the transaction of it. The

major jobs of this department are listed below:

● Issuing Letter of Credit (LC)

● Endorsing Dollar/Traveler ‘s Check

● Operating Foreign Remittance

● Maintaining Foreign Currency Account.

Exchange Rate of Taka

Exchange rates affect large flows of international trade by influencing the prices of goods in different
currencies, and also affect international trade in assets, via the prices of stocks, bonds, and other
investments.

Inter-bank Exchange Rates and Cross Rates on Jan 22, 2023

Currency Day’s Lowest Day’s Highest

USD 107 107

Table 1: Inter-bank Exchange Rates as on Jan 22, 2023

Currency Day’s Lowest Day’s Highest

EUR 115.6349 116.3090
GBP 130.4009 131.2890
AUD 74.4613 74.4827
JPY 0.8314 0.8397
SGD 81.2329 81.2576
EUR 115.6349 116.3090
GBP 130.4009 131.2890

Table 2: Cross-rates as on September 6, 2021

In the foreign exchange market, trillions of dollars are traded each day and the economic implications of
shifts in the market can be dramatic. Exchange rates of Taka for inter-bank and customer transactions are
set by the dealer banks, based on demand-supply interaction. Bangladesh Bank (BB) is not in the market
on a day-to-day basis, and undertakes USD purchase or sale transactions with dealer banks at prevailing
inter-bank exchange rates only as needed to maintain orderly market conditions.

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Inter-bank exchange rates are also used by BB for purchase and sale transactions with the Government and
different International Organizations. The USD/BDT buying and selling rates.

In Table 2 are highest and lowest inter-bank exchange rates at Dhaka. The cross rates of BDT with other
foreign currencies are based on NY and Dhaka closing exchange rates. The exchange rate of Bangladeshi
Taka against the US Dollars has dropped very slightly over the last few years (depreciation of 1.8% in
2023). However, the currency remains in a steady position in recent times. The country's exchange rate was
in a competing position comparing to its neighboring country's currencies. The Real Effective Exchange
Rate index remains elevated, which provides the currency's scope for depreciation to boost exports.

Functions of Foreign Exchange Department of SIBL

Figure 4: Functions of Foreign Exchange Department

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The bank, which is authorized by Bangladesh bank for dealing foreign exchange business on

the transaction under the FER Act, 1947 is called Authorized Dealer. The HOC Branch of

SIBL is an Authorized Dealer. In Social Islami Bank Limited foreign exchange is divided in to

three parts according to the major activities:

● Import and export oriented foreign exchange activities.

● Foreign Remittance Operation.

4.2 To analyze L C (Export- Import procedures) of SIBL

A letter of credit is an instrument issued by a bank to a customer placing at the letter’s disposal such as
agreed sums in foreign currency as stipulated. An importer in a country request his bank to open a credit in
foreign currency in favor of his exporter at a bank in the letter’s country. The letter of credit is issued against
payment of the amount by the importer or against satisfactory security. The L/C authorizes the exporter to
draw a draft under its terms and sell to a specified bank in his country. He has to hand over to the bank, the
Bill of exchange, shipping documents, and such other papers as may be agreed upon between the exporter
and the importer. The exporter is assured of his payment because of the credit while the importer is
protected because documents in respect of export of goods have to be delivered by the exporter to the paying
bank before the payment is made.

Types of L/C

A letter of credit (L/C) maybe two forms. These as below:

● Revocable letter of credit.

● Irrevocable letter of credit.

These are given below -

Revocable Credit: a revocable credit is a credit that can be amended or canceled by the issuing bank at
any time without prior notice.

Irrevocable Credit: an irrevocable credit constitutes a definite undertaking of the issuing bank (since it
cannot be canceled without the agreement of all parties thereto). Provided that the stipulated documents are
presented and the terms and conditions are satisfied by the seller. An irrevocable credit can be either
confirmed or unconfirmed depending on the desire of the seller.

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This sort of credit is always preferred to revocable letter of credit.

Types of L/Cs provided by SIBL

SIBL Bank provides 4 different types of L/Cs to their customers. These are described below:

Back-to-Back L/C: Back-to-back events a letter of credit (L/C) is a credit that is opened on the
beneficiary's orders and order for the initial export L/C on the strength credit.

Revolving L/C: A revolving credit is one in which the balance of the credit is automatically extended for
each use, eliminating the need to redeem the credit each time. It can be resolved with respect to either Time
or Amount (i.e., total value of the credit)

Transferable L/C: A transferable credit is one that the original beneficiary can transfer in full or in part to
one or more "Second beneficiaries." It's mostly used where the first beneficiary doesn't really deliver the
products, but rather serves as a middleman between the producer and the eventual consumer.

Procedure of L/C

We can simply explain the procedures of transferring or issuing an L/C through a picture.

Figure 5: L/C Process Flow-chart

The Importer and the Exporter come to an agreement of purchasing goods and services. A transaction will
take place between them. After coming to an agreement, the Importer applies for an L/C to a local bank.
On the other hand, the Exporter provides documents to his or her advising bank. The advising bank then
forwards those documents to the issuing bank. The Issuing bank checks all the documents and verifies each
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of the documents provided by the Exporter. If the documents are authentic, the issuing bank sends those
documents to the Importer. At the same time, the Issuing bank sends the Letter of Credit to the Advising
bank. The issuing bank verifies the L/C provided by the issuing bank. Once the verification is done, the
Advising Bank sends the L/C to the Exporter. After getting the L/C in hand, the Exporter starts to export
their goods and services to the Importer.

Import Performance

In the year 2021, total import business of SIBL was BDT 280.09 billion (equivalent USD 3.305 billion) by
handling 52,934 number of import letter of credits. Import Business increased by 57.50 % in 2021compare
to 2020.

Table 3: Import Performance of last 5 years

Figure 6: Import Performance of last 5 years

Export Performance

In the year 2021, total export business of SIBL Bank was BDT 211.97 billion (equivalent USD 2.50
billion) from 56,228 number of export documents. Export business increased by 31.42% in 2021 compare

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to 2020.

Table 4: Export Performance of last 5 years

Figure 7: Export Performance of last 5 years

4.3 To evaluate the foreign remittance management

procedure of SIBL

This bank is an authorized dealer to deal in foreign exchange business. Regarding foreign exchange, a bank
must provide some services to the clients as an authorized dealer.

The basic function of this department are outward and inward remittance of foreign exchange from one
country to another country. In this process of providing this remittance service, it sells and buys foreign

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currency. The conversion of one currency into another takes place an agreed rate of exchange, which the
banker quotes, one for buying and another for selling. In such transactions the foreign currencies are like,
other commodities offered for sales and purchase, the cost (convention value) being paid by the buyer in
home currency, the legal tender. Remittance procedures of foreign currency There are two types of
remittance:

1. Inward remittance

2. Outward remittance.

1. Inward Foreign Remittance: Inward remittance covers purchase of foreign currency in the form of
foreign T.T., D.D, and bills, T.C. etc. sent from abroad favoring a beneficiary in Bangladesh. Purchase of
foreign exchange is to be reported to Exchange control Department of Bangladesh bank on Form-C.

2. Outward Foreign Remittance: Outward remittance covers sales of foreign currency through issuing
foreign T.T. Drafts, Travelers Check etc. as well as sell of foreign exchange under L/C and against import
bills retired.

Activities of this department

1. Issuance of TC, Cash Dollar /Pound

2. Issuance of FDD, FIT & purchasing, Payment of the same.

3. Passport endorsement.

4. Encashment certificate

5. F/C Account opening & filling

6. Opening of Export FC retention Quota A/C& maintain.

7. Maintenance of ledger of Cash Dollar, FC Deposit A/C & TC.

8. Maintain FBC register &follow up FBC.

In these processes of remittance, bank must have to make profit as a business institution. Profit is made in
two ways:

I. Commission charged

2. Difference in the buying and selling rate.

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Rate of exchange

This refers to the price of one currency expressed in terms of another currency. Rate of exchange is the rate
by which the relation among different foreign currencies is established in terms of local currency of that
country. In exercise of the power conferred by section three of exchange regulation ACT 1947, Bangladesh
has issued license to certain bank to deal in foreign exchange is called authorized dealer.

Spot rate: It is quoted for transaction where the foreign currency bought or sold is to be received or
delivered immediately. The current rate of exchange quoted in the foreign exchange market.
Forward rate: When a rate is applied to a future date it is called forward rate at which foreign
exchange can be sold or bought for delivery at a future time.
Cross rate: The rate of exchange quoted expressing the quotation for any two currencies in term of
a third.
SWAO: Sport rate against forward purchased or a spot purchase against forward rate.
Direct quotation: Rates are quoted in term’s foreign currency per unit of foreign currency.
Indirect quotation: Rates are quoted in terms of foreign currency per one unit of home currency.
Buying rate: Authorized dealer applies this at the time of purchasing / negotiation of export
document and payment against TT. MT, check and drafts required from abroad.
Selling rate: Authorized dealer applies this at the time of lodgment of import documents, realization
of LC margin from importer and other foreign exchanges transaction on overseas bank.
Forward rate at a discount: when forward rate is higher than that of spot rate.
Forward rate at a premium: when forward rate is lower than that of spot rate.

Foreign Remittance

SIBL received BDT 5.81 billion (equivalent USD 0.069 billion) as wage earners ‘remittance by handling 66,177
number of transactions in 2021. Inward Remittance was increased by 9.42 % in 2021 compare to 2020.

Table 5: Foreign Remittance Performance of last 5 years

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Figure 8: Foreign Remittance Performance of last 5 years

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 Chapter Five:
Internship
Activities

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5.1 Work, workflow, People Met & my own Experience
My time as the communications intern is coming to an end after working three months at the Social Islami
Bank Limited, Dhanmondi branch. This internship has enriched my knowledge and the skills I have learned
will help me to build a foundation for my future career. I have summarized below the most important
aspects of my experience.

The internship was beneficial to me for many reasons. To begin with, I have learned basic responsibilities of
a job such as punctuality, keeping a near perfect attendance record and understanding the consequences if I
did not finish my work. This was very different from regular assignments for classes because in university
we get a syllabus, schedules, friendly reminders from teachers and classmates and we are privileged with
extra time if its necessary.

I got a little experience about how that all ends when we get a real job. On the first day, there was an
induction program where I was introduced to SVP, my mentor and some other employees with whom I had
to work. I was very excited after my first meeting with my mentor. As he is very inspirational and work
oriented, it was helpful for me to adjust myself with the new work environment.

While working in the foreign exchange section of SIBL, I have learned that Foreign Exchange Department
of a bank plays very important role in a countries economic growth because international business is highly
depended on Foreign Exchange Department of a bank. It performs foreign exchange operations as well as
transactions. The main function of a forex department is to handle foreign inward and outward remittances
as well as buying and selling of foreign currencies. Foreign Currency Account (FCA) is maintained for
foreign transactions. While this department receives inward foreign remittance from the migrant workers
living and working abroad, it also processes foreign currency, traveler’s cheques, letters of credit and bills
of exchange. The Letter of Credit is a very important import document which is issued by this department
of a bank.

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5.2 My Job Responsibilities
Organizational Information: After completing this internship, I got a clear idea and knowledge about the
organization. Also able to know about their vision, mission, background, process etc. Moreover, now I can
visualize the strength, weakness, opportunity and threat of this organization.

File documentation: One of the important responsibilities regarding my internship was file documentation. I
had to collect and arrange various types of official document according to their importance. I had to
coordinate with colleagues to properly understand and perform this task.

Customer Service: This task helped me to learn how to convince people and enhanced my communication
skill. I have learned how to manage different kinds of customers at a time and I can assist with queries more
effectively.

Data collection: I had to collect various types of task related information, and enlisted them to the server.

Coordination among department: I had to coordinate with colleagues of different department of the
organization to complete my tasks.

Arraigning material for the in-house meeting: I had to collect different types of materials for meetings
during my internship in my organization.

Entry of information in office document and soft copy: I had to update the office documents I the system.
It improved my data entry and database management skills.

Professional Grooming: I have also improved my professional grooming and learned about the culture of
corporate life as well. I have learned that how to be professional. The environment of a corporate life is so
formal where should maintain etiquettes and manners.
✓ To maintain a formal appearance
✓ Communicate with a formal language
✓ Respect all the employee
✓ Be polite and control emotional intelligence
✓ Make a good relationship to everyone

5.3 Linkage between Work-Internship topic

There few specific responsibilities I have performed. These are:
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. It is new credit in favor of another
beneficiary. Sometimes beneficiary seller of a credit himself is unable to supply goods specified in the L/C
and required to purchase from another supplier by opening second credit.

From my little knowledge what I have observed and some recommendations are as follows:

Superior and subordinate’s relationship: I observed the friendly relationship between superior and
subordinate.

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 But some traditional superiors also exist who focuses more on work. They don’t much talk with subordinate
without any task related issues. There are some leaders who have power to control their subordinate with
motivation and care.

Organizational culture and behavior: I find the organizational culture and behavior in Social Islami Bank
Limited is more focused on ethical beliefs than paper rules and regulation. Every employee has positive
attitude about their work environment and maintains it properly.

Practical learning: Some skills which I have improved from my internship will help me for the life time.
• I have improved my communication skill. Before this internship I was very shy person. And also an
introvert. So it was quite hard for me to communicate with others. I felt very nervous when I communicate
with a lot of people. But after this internship my communication skill has improved. Now I can easily
communicate with others. And share my ideas, thoughts. As a result, many people inspire me and like my
ideas. I can handle clients and make a good relation between us.
• Then I have improved my time management skill. A few months ago, I was very lazy person. I could not
manage the time. Now I can utilize the time in a proper way.
• My confidence level has grown up after this internship. Sometimes I worked in a team. And shared my
own opinion. It helps me to gain the experiences as a team worker.
• I have learned technological skills as well. Like MS office, data entry, internet banking etc. All of these
learning will help me to achieve my goal. My experiences about this journey is so good and beneficial.

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 Chapter Six:
Findings, Recommendations &
Conclusions

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 6.1 Findings of the Study

As I am from English Department, I have some limitations in this study. Because I have chosen a different
industry which is not match with my department. I have faced some problems during the internship. Before
this, I had no idea about banking system and activities. I do not even know the process and how to open a
bank accounts. So, I took some day for learning. I started learning all of this which are included in banking
system.

6.2 Conclusion
While working as an intern of Social Islami Bank Limited, I have experienced my internship from the
perspective of learning and enhancing my interpersonal skills. This three-month internship program at
Social Islami Bank Limited will help me to understand more about how an organization runs its daily
activities. This experience will enrich my knowledge for my future endeavors.

Social Islami Bank Limited is committed to provide high quality financial services/products to contribute
to the growth of GDP of the country through stimulating trade and commerce. It aims to accelerate the pace
of industrialization, boosting up export, creating employment opportunity for the educated youth. Social
Islami Bank Limited makes a strong position through various activities and number of clients, amount of
deposit and investment money is increasing day by day.

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6.3 Recommendations

• The bank might arrange more training programs for their officials. As a result, quality training
will help the officials to enrich them with more recent knowledge of foreign exchange activities.

• Margin and commission on L/Cs vary from customer to customer. A few customers are allowed
to open L/C even with nil margin and fees commission. I suggest the bank should review the
customer transaction behavior for a period of time and should develop a certain policy in this
regard.

• Up to date banking software should be useful to give better service to the customers.

• Number of employees should be increase in foreign exchange section.

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 Books & References

1. Annual Report of Social Islami Bank Limited, (2021,2020,2019,2018,2017)

2. Prospectus of Social Islami Bank Ltd.

3. Different study material from BIBM.

4. Other Social Islami Bank Ltd. Publications.

5. https.www.facebook.com/SIBLDHAKA

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 Appendices

DATA ENTRY

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 LC FILE

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