1.

1 Origin of the Report

The "Research Methodology" course, which is a required component of the BBA program,
served as the basis for the report's preparation. The goal of this academic program is to
increase students' theoretical understanding of business administration, which serves as the
foundation for practical knowledge. When theoretical knowledge can be used in a practical
setting, it has achieved its purpose. With the aid of this program, we may give ourselves
more self-assurance that we can manage the realities of the professional world. This
program seeks to expose business students to a real-world business setting so that they may
watch and assess how well the theoretical ideas they have learned in class are being used.
The combination of theory and practice improves our knowledge and capacity for learning.
Getting involved with the organizations and with their activities is a great opportunity for
me. In addition, I conducted extensive secondary research to produce this paper from a
theoretical perspective. As a result, the assignment for the course "Research Methodology"
of the BBA program accredited by the National University of Bangladesh, titled "General
Banking Activities of EXIM Bank Limited," has been completed.

1.2 Objective of the report

The objective of the report is divided into two categories. There are general and specific
objectives.
General Objectives:
The report's primary objective is to provide an in-depth evaluation. An overview of EXIM
Bank Limited's general banking operations and how it operates. To understand more about
EXIM Bank Limited's investment management system and to assess the present state of
the bank's overall financial situation.
Specific Objective:
• To assess the performance and categorize problems related to general banking
activities of EXIM Bank Limited.
• To have a strong idea about Shariah Based Banking.
• To identify the key purposes of general banking.
• To imply theoretical knowledge into practical areas of work.
• To measure the customer opinions on service quality and customer satisfaction
towards the general banking activities.
• To make some suggestions to solve the problems of EXIM Bank Limited.
• To identify the investment activities of EXIM Bank Limited.
• To understand the existing mechanism of investment modes of EXIM Bank Ltd.
• To suggest remedial measures for the improvement of the whole process of the
Investment Department.

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1.3 Methodology of the Report
From the topic selection until the latter stages of preparation, the research demands a
methodical approach. Key points have been discovered after the data sources have been
identified and gathered, categorized, analyzed, evaluated, and presented systematically for
the study. Below are listed the methodology’s general processes:
Primary Sources:
• In this report, the primary source is not applicable.
Secondary Sources:
• Annual report of EXIM Bank Limited.
• Prior research reports.
• Internet as a source of information.
• Theoretical books relating banking sector.
• Website of the EXIM Bank Limited.
• Various documents from General Banking Department.

1.4 Scope of the Report

One of Bangladesh’s newer generation banks, EXIM Bank of Bangladesh Ltd., is essential
to the growth of a balanced and solid industrial, social, and economic sector in Bangladesh.
The organizational structure, history, purpose of the product, client happiness, and Bank
performance and its effects on the performance of the banking activities of EXIM Bank
Limited are all included in the report.

1.5 Limitation of the Study

It goes without saying that every study has some flaws. The study I conducted was very
important and took a lot of my time. The following are the limiting reasons that made it
difficult to function efficiently at the bank and, ultimately, to prepare my report:
• The company strictly protects the privacy of all of its financial and other
information.
• They are concerned about any kind of information leaking to their rivals. Therefore,
getting the right information from them was never easy.
• The banking authority's specified limits and limitations prevent large-scale analysis.
• The information from previous reports and annual reports was the sole source of
data for this study.
• The absence of adequate books, publications, journals, etc.
• It may not always be possible to find the most recent information.
• The analyst's viewpoint becomes the basis for every interpretation and conclusion
of the study's findings.
• The absence of the latest facts and information in statistics.
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2.1 Overview of EXIM Bank Ltd.
Islamic banking was first introduced in Bangladesh way in 1983 by foreign investors from
Saudi Arabia and Kuwait. Currently, eight full-fledged Islamic banks are operating with
1,068 branches in the country, says the latest data from Bangladesh Bank (BB). EXIM
bank is one of them.
EXIM stands for Export-Import Bank of Bangladesh Limited, as the name implies, is a
specialized commercial bank handling a substantial amount of import and export trades of
the country particularly readymade garments and its related backward and forward linkage
industries. It gives equal importance too to providing finances and facilities to the national
priority sectors like agriculture and small and medium enterprises. Along with all these
EXIM Bank is a private Bangladesh-based financial institution that provides banking
services like personal and business banking, loans, credit cards, online banking, investment
banking, and money transfer services. EXIM Bank is an Islamic Bank. All of its activities
are run as per the principles of Islamic Shariah. EXIM Bank wishes to be the trendsetter in
the compliance of the shariah rules in banking activities and at the same time be a model
Islami Bank. The Bank’s headquarter is situated in Dhaka.

2.2 Historical Background of EXIM Bank Ltd.

Export-Import Bank of Bangladesh Limited was established in the year 1999 under the
leadership of Late Mr. Shahjahan Kabir, Founder Chairman who had a long dream of
floating a commercial bank that would contribute to the socio-economic development of
our country. He had a long experience as a good banker. A group of highly qualified and
successful entrepreneurs joined their hands with the founder chairman to materialize his
dream. Indeed, all of them proved themselves in their respective business as the most
successful star with their endeavor, intelligence, hard-working, and talent in
entrepreneurship. Among them, Mr. Nazrul Islam Mazumder who is an illuminated
business tycoon in the Garments business in Bangladesh became the Honorable Chairman
after the demise of the honorable founder chairman. He is also the chairman of the
Bangladesh Association of Banks (BAB). Under his leadership, BAB has emerged as an
effective forum for exchanging views on problems being faced by the banking sector of
Bangladesh and for formulating common policy guidelines for addressing such problems.
The Bank starts functioning on 3rd August 1999 with its name as Bengal Export Import
Bank Limited. On 16th November 1999, it was renamed Export-Import Bank of
Bangladesh Limited with Mr. Alamgir Kabir as the Founder Advisor and Mr. Mohammad
Lakiotullah as the Founder Managing Director respectively. Both of them have long
experience in the financial sector of our country. Through their pragmatic decision and
management directives in the operational activities, this bank has earned a secured and
distinctive position in the banking industry in terms of performance, growth, and excellent
management. Under the leadership of Mr. Lakiotullah, the Bank migrated all of its
conventional banking operations into Shariah Based Islami Banking in the year July 2004.
In the year 2006, Mr. Kazi Masihur Rahman became the Managing Director of the bank
when Mr. Lakiotullah left the bank after completing his successful 7 years as MD. Mr.

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Kazi served in the bank for the next five years. On 25th August 2011, Mr. Md. Fariduddin
Ahmed joined the bank as Managing Director. With his long banking experience, EXIM
Bank become a fully compliant Bank with adequate capital and good asset quality. After
retirement from Managing Director, he has been continuing his service for EXIM Bank as
Advisor since 27th July 2012.
Dr. Mohammed Haider Ali Miah succeeded Mr. Fariduddin Ahmed on July 25, 2012, and
has created a new dimension in EXIM history by becoming the first ever in-house
Managing director and CEO of the Bank.

2.3 Company profile:

Name of the Bank: EXIM Bank Limited
Status: Private limited company
Date of incorporation: June 02, 1999
The authorized capital of EXIM Bank: Taka 20,000.00 million
Paid-up capital of EXIM Bank: Taka 14,475.57 million
Total Deposit of EXIM Bank: Taka 421,705.98 million
Total number of employees: 3242
Total number of branches (including SME/Agriculture): 140
No of shareholders in EXIM Bank (31-12-2020): 58969
Chairman of EXIM Bank: Mr. Md. Nazrul Islam Mazumder
Managing Director & CEO of EXIM Bank: Dr. Mohammad Haider Ali Miah
Auditors: Ahmed Zaker & Co.
Head of Internal Audit: Mr. Shah Md. Abdul Bari
Credit Rating: “AA” (Double A indicating High Safety for Timely Repayment)
: “ST-2” (Indicating High Certainty of Timely Repayment)
Subsidiary companies of EXIM Bank: EXIM Exchange Company (UK) Ltd, EXIM
Exchange Company (Canada) Ltd, EXIM Islami Investment Limited (EIIL)
Location of Head Office: “SYMPHONY” Plot no. SE(F)-9, Road No.142, Gulshan
Avenue, Dhaka-1212, Bangladesh.

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2.4 Mission of EXIM Bank Ltd.
The Bank’s mission comprises:
• Extracting the full benefit of the Islamic banking system for its customers.
• Offering top-notch financial services, particularly in international trade.
• Keeping up with technological advancements in a professional banking
environment.
• Upkeep corporate and commercial ethics and openness at all levels.
• A strong capital base.
• Display team spirit and professionalism in the workplace
• Make its product superior and rewarding to its customers
• Become a trusted repository of customers’ money and their financial consultant
• Above all, to contribute to the national economy and fulfill corporate social
responsibility obligations.

2.5 Vision of EXIM Bank Ltd.

The mission statement of Exim Bank is "Together Towards Tomorrow". Exim Bank
Limited is committed to providing exceptional service while growing and progressing in
parallel with its cherished clients. Exim Bank concentrates on continual development at all
levels to achieve these targeted goals since they believe that the path to greatness is
unending. To get an advantage over rivals in the quickly changing competitive environment,
the company depends on its strategic plans, policies, and networking system. The key to
their operational success will be their customized quality offerings to the clients with a
tendency for ongoing improvement.

2.6 Corporate Culture

Over the last two decades, corporate culture has evolved into a crucial component of
business, and it now unquestionably plays a major influence in businesses, employee
behavior, and organizational operations. It has a significant impact on whether a firm
succeeds or fails. Furthermore, a company's favorable culture may provide it with a
significant edge over another firm. As a reputable bank, EXIM Bank Limited thinks that if
staff members are aware of their organizational culture, their working conditions would
improve. Additionally, it will gradually lift their spirits and result in greater levels of
cooperation, teamwork, information sharing, and receptivity to fresh ideas and perspectives.

2.7 Organizational Structure of EXIM Bank Ltd.

The management style of an organization determines its development, much as the
development of a bank can only happen with a strong management team. Exim Bank's
management is in charge of all the organization's resources. The personnel will have a

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forward-thinking approach, a professional attitude, and a reputation for integrity to realize
the ultimate goal of making Exim Bank the best financial institution in the nation.
The board of directors wants to vest in the management all executive powers necessary for
them to independently manage the credit portfolio and service industry administration
without excessive interference from other sources. The board creates policy and
communicates management-level policy directives. At every branch of the bank,
accountability and transparency are closely upheld. The bank company act of 1994 and the
Bangladesh Bank's guidelines both contain several principles and requirements that banks
must abide by to operate with integrity, competence, and foresight. The bank is dedicated
to conducting a simple, honest, and lawful banking operation.

2.8 Hierarchy of Position Structure of EXIM Bank

Managing Director & CEO

Deputy Managing Director

Senior Executive Vice President

Executive Vice President

Senior Vice President

Vice President

Senior Assistant Vice President

Assistant Vice President

Senior Principal Officer

Principal Officer

Exectuve Officer

Officer

Figure 01: Hierarchy of Position Structure of EXIM Bank

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2.9 SWOT analysis of EXIM Bank Ltd.
Strength
• EXIM Bank Limited, has the repute of existence as the provider of high-quality
facilities to its customers.
• It has grown quite rapidly in all spheres of banking services.
• It has given a comparatively greater yield on deposits in saving schemes than other
banks.
• Service controls are quite practical.
• The bank has already shown tremendous growth in the revenues and payment
subdivision.
• The number of deposits, loans, and advances is also increasing rapidly.
• The working environment is very amiable, interactive, and formal.
Weakness
• Lack of proper inspiration, training, and job rotation.
• Inadequate publicity and advertising of the bank's products and accomplishments.
• In general banking units, they follow the traditional banking system. The complete
general banking procedure is not fully computerized.
• According to individual customers, an opinion introducer is one of the
complications to open an account. If a person who is entirely new to the city wants
to initiate an account, it is a delinquent for him/her to assemble an introducer of
accounts holder.
Opportunities
• They can expand their marketing side to emphasize the branch.
• Furthermore, of those things, EXIM Bank Limited can announce superior corporate
patterns for the commercial client or offer who have a sophisticated income level
from the service holder.
• The Growth of the global economy and Bangladesh's foreign trade in the coming
years can provide tremendous growth opportunities.
• Small & Medium enterprises (SME) and retail banking can provide a real chance
for growth.
• Online banking facilities can make the operation of the bank more efficient.
• Expansion of banking services into other different services.
Threat
• The macroeconomic situation of the country can deteriorate.
• The reduction of BDT against major currencies (e.g. USD, EUR, JPY, etc.) is a
significant hazard to foreign exchange transactions and profitability.
• Intensifications of rivalry in the industry.
• All sustaining and upcoming multinational, foreign and private banks pose
enormous threats to EXIM Bank Limited.

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 • The little compensation package of the employees from the mid-level to the low-
level position is a reason for threats to employee motivation. As a result, quality
employees leave which affects the organization as a whole.
• The Government has been controlling industrial credit.

2.10 Products & Services of EXIM Bank Ltd.

Depository Products:
• Al-Wadiah current deposit
• Mudaraba savings deposit
• Mudaraba term deposit
• Mudaraba kotipoti Deposit Scheme
• Mudaraba Cash Waqf Deposit
• Mudaraba Hajj Deposit Scheme
• Mudaraba Double Benefit Deposit Scheme
• Mudaraba Pension Saving Deposit
• Exim Probashi Monthly Savings Scheme
• Exim Krishi
• Exim Ziadah
• Exim Ruhama
• Exim Shwapno
Investment products:
• Bai–Murabaha
• Bai–Muajjal
• Bai-Salam
• Mudaraba
• Musharaka
• Izara Bil Baia
• Local Documentary Bill Purchased
• Foreign Documentary Bill Purchased
• Quard
• EXIM farmer
• EXIM probashi Abasan
Foreign exchange products:
• Export Finance
• Import Finance
• Foreign Remittance
Service products:
• Online Banking

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• ATM & CDM Services
• Internet Banking (AISER)
• EXIM Wallet (AISER APPS)
• SMS Banking
• Card (Hajj, Travel, Remittance, Gift, Prepaid, Debit & Credit)
• Automated Clearing

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3.1 General Banking
All business concerns make a profit through selling either a product or service. A bank
does not produce any tangible product to sell nevertheless does offer a variety of financial
services to customers. General Banking Department is considered the direct customer
service center. It is the starting point of all banking procedures. This department portrays
one of the most important roles in commercial banks. And this department aids in taking
deposits and concurrently provides some ancillaries services and daily services to the
customers as well. Every day it receives deposits from clients and meets their demand for
cash by honoring cheques. It opens new accounts, demit funds, issue bank drafts, pay
orders, etc. Since the bank is confined to delivering this service every day, general banking
is also known as “Retail Banking”.

3.2 Components of General Banking

The foundation of all banking activities is general banking. The department is in charge of
giving consumers daily services. It creates new accounts, transfers money, sends bank
drafts, and pays orders, among other things. The general banking department strives to
offer rapid and honest services to its clients. It offers both frequent and occasional
consumers access to banking for the enjoyment of auxiliary services. In certain general
banking operations, bankers and clients who solely use one service from the bank have no
relationship. On the other hand, there are some clients that banks work with regularly.
There are eight divisions in general banking of EXIM Bank. General Banking consists of
the following sections:
• Account opening
• Account Closing
• Deposits Account
• Issuance of checkbook
• Issuance of Debit Card
• SMS Banking
• Clearing cheques.
• Provide foreign remittance services.

3.3 The Procedures for Opening account

The banker-customer relationship begins with the opening of an account by the customer.
Opening an account binds the same into a contractual relationship. But the selection of us
customers is very crucial. Fraud and forgery of all kinds start by open with the of an account
by the customer(s). So, the bank takes extra care in its selection. EXIM Bank officer opens
different types of accounts at the request of clients. To open an account banker and client
make a contractual relationship. Though, the selection of a client for opening an account is
very critical for a bank. The procedure for opening an account is given below:

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Customer fillup the application
form in prescribe manner

After that customer need to fill

the specimen signature Card

For Individual, introducer is

needed

The officer verify the introducer

and the documents submitted

Issuance of deposite slip and the

deposite must be made in cash

After depositing the cash, a

cheque book is issued

Bank account has opened

Figure 02: Account Opening Process

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3.4 General Requirement for opening MSD/MSTD Account
There are a few general rules for opening all type of account which is as follows:
• Account opening form to be filled in and signed by the account holders.
• Introduction by an existing account holder with signature and account number or
any other person acceptable to the bank.
• Two copies of contemporary passport-size photographs of each account holder
attested by the introducer.
• One copy passport size photograph of nominee attested by the account holder.
Additional documents that are required for opening accounts:
The rules and regulations to open a new account may differ from person to person,
depending on the type of account the customer wishes to obtain. First of all, different
customers such as individual, joint, proprietorship, partnership, private limited company,
public limited company, associations, clubs, societies, trusts, etc. can open their various
types of accounts according to their requirements which are as follows:
Individual and Joint Account:
• A Copy of passport/ national ID card/ driving license/ office id/ word commissioner
certificate, any ID acceptable to the bank.
• Attested photocopy of passport with visa for foreign Currency Account.
• Joint account declaration form for the Joint account.
• TIN Certificate.
Proprietorship Account:
• Declaration form of sole proprietorship from the bank must be filled up,
• TIN Certificate,
• Submission a copy of the trade license.
Partnership Account:
• A Copy of the registered partnership deed,
• Submission of a copy of the partnership deed,
• Association letter duly signed by all partners,
• Copy of trade license,
• Photocopy of company TIN,
• List of partners with full address and phone number
For Private and Public Limited Company Account:
• A certified Copy of the Memorandum and Article of Association of the company
is needed
• A Certified Copy of the Certificate of Incorporation of the company
• In the case of a Public Limited Company, a Certified Copy of the Certificate of
Commencement is necessary

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 • Resolution for opening the account and authorization for its operation duly certified
by the Chairman/Managing Director of the company
• A copy of the updated Trade License of the company
• List of Directors along with the designation
• If it’s an insurance company, a Certificate of Registration is needed
• One copy of the updated TIN/VAT Certificate

3.5 The Procedures for closing account

The termination of an account may occur-
• If the customer is willing to close his/her account
• If EXIM Bank notices that the account is inactive for an extended period
• If EXIM Bank receives an order issued by the court
To close an account, clients will be requested to send an application along with the unused
leaves of the cheque books issued to them. Upon receipt of the application, the following
will be done-
• The signature of the account holder will be verified and the number of unused
cheque leaves will be noted
• Before the closing of the account, the branch-in-charge will approve the application
• After declaring the liability, if any, and incidental charges to be debited to the
account
• The standard cost is about Tk. 300 + 15% VAT. However, the closing charge of an
account within three months of introductory is Tk.500 + 15% VAT
• After debiting the incidental charges to the account, the customer will be requested
to draw the remaining balance from his/her account
• Then the “Account Closed” stamp will be affixed on the account opening form and
specimen signature cards of the customer
• After completing all the requirements, the application will be posted with the
account opening form and the specimen signature cards will be kept separately
under lock and key
• Finally, the authorized bank officer will destroy the unused cheque leaves of the
customer.

3.6 Deposit
Deposits are the foundation of a bank and they constitute its life-blood. EXIM Bank has
keen to follow a well-defined approach and plan to mobilize resources such as deposits.
With a growth rate of 6.68%, the total deposit of the Bank stood at Tk. 421,705.98 million
as on 31 December 2021 from Tk. 395,308.33 million as of 31 December 2020. This
growth in deposits has enabled the bank to further business opportunities. The Bank has
set its priority to mobilize no-cost and low-cost deposits, accordingly, low-cost and no-cost

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deposits have been increasing steadily. During the year 2021 total low cost, no cost deposit
stood at Tk. 115,698.70
With a collective effort, quality customer service, and financial inclusion, the bank
continues to maintain the growth of deposits. Continuous expansion of branch network,
competitive profit rate, innovative deposit products, use of sophisticated information
technologies, and skilled manpower are supporting the optimum growth of deposits.

3.6.1 Various types of deposit account

Several kinds of deposits are mentioned below-
• Mudaraba Savings Account (MSD)
• Current Deposits (CD)
• Term Deposits
• Deposit Schemes
Savings Account Current Deposits Term Deposits Deposit Schemes
Mudaraba Saving Al-Wadia Current • Mudaraba Term • Mudaraba Monthly
Deposit (MSD) Deposit (CD) Deposits (MTD) Savings
• Mudaraba • Mudaraba Super
Education Deposit Savings
• Mudaraba
Multiplus Savings
• Mudaraba
Millionaire Deposit
Scheme (MDS)
• Mudaraba Kotoite
Saving Scheme
• Mudaraba Su-
Grehini Monthly
Savings Scheme
• Mudaraba Femina
Monthly Savings
Scheme
• Pension Deposit
Scheme (PDS)

• EXIM Monthly
Hajj Deposit (MDH)
• Mudaraba Senior
Monthly Savings
Scheme
Figure 03: Various Types of Deposit accounts

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MSD (Mudaraba Saving Deposit):
Profit is payable to the customer in this savings account. The bank allows investors to open
an essential savings account by inspiring investments habit amongst the general public. As
the title indicates, these accounts are used and opened as savings accounts. Two types of
saving accounts are available entitling as "Single Saving Account," and "Joint Saving
Account." At Least, an amount of Tk. 1000/= is needed for opening this type of account,
and its charges yearly are Tk.250/=. A saver will be allowed to withdraw per week up to
25% of the balance of his account.
MTDR (Mudaraba Term Deposit Receipt):
It is a particular period deposit system, which does not repay until the maturity date of that
fixed period reaches. The bank provides higher rates of profit on such deposits. Usually,
customers are allowed to open this account for a period. Any mature person (individually
or jointly) having a sound mind can wish to open the MTDR account in any branch of Exim
bank with a deposit of minimum Tk10, 000/- and higher but multiple of Tk. 100.00. Several
accounts can be opened in the same name at the same o different branches of this bank.
Mudaraba Monthly Savings Scheme (MMSS):
It is a monthly delivery scheme that secures the future with fewer tensions and more ease.
Small savings today will provide consolation for the next day. Period of Savings and
Installment Rate Per Month are:
• The savings period is for 3,5,8,10, or 12 years and the payment is tk 500/, 1000/,
2000/, or 5000 accordingly.
• Bank has the right to change the weightage of the deposit.
Al-Wadia Current Deposit:
In Al-Wadia’s current account, no profit is payable and it has some benefits over savings
account for instance- no such withdrawal limit and overdraft facility. The minimum
account opening fee is Tk 2000. This amount must be maintained in the account. Besides
the account maintaining charge is 250 Tk and it is charged twice a year. If the balance falls
below Tk 2000/- then the bank will charge a minimum balance fee of 250 Tk.
Mudaraba Super Saving Scheme:
Mudaraba Super Saving Scheme helps to build up capital and it is a major source of
business investment in our country. To create more consciousness and motivate people to
save money, EXIM Bank Limited provides Super Saving Scheme to their customers. Any
person can open more than one account in a branch in his/her name or joint name. The
deposit can be made in multiples of Tk. 5,000. The deposit money will approximately
double in 5 years or 6 months.
Mudaraba Millionaire Deposit Scheme & Mudaraba Kotipoti Saving Scheme:
Here The investment period is for 3,5,8,10 & 12 years only and the Deposit is on a
scheduled payment basis. The Objectives of this deposit are:

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 • An organized savings scheme that benefits the customers and societies to maximize
their wealth by providing a significant return on their investments.
• It is a savings scheme that helps customers of all levels in generating a positive
contribution to their families by providing a fund for a family's financial difficulties.
Mudaraba Su-Grehini Monthly Savings Scheme:
It is a scheduled benefit scheme that assists the housewives of all contents & societies
maximization their affluence by providing an extraordinary return on their savings.
Mudaraba Femina Monthly Savings Scheme:
It is a proposed benefit scheme that supports female employees in making a helpful impact
on their families by providing funds in a family's economic crisis.
EXIM Monthly Hajj Deposit:
In terms of easy arrangements for performing Hajj, EXIM Bank Limited provides this Hajj
Deposit Scheme which is respectively for 5, 8, 10, 15, and 20 years with a small number
of deposits per month with 11% profit.

3.6.2 Five Years of Deposit growth of EXIM Bank

Five Years of Deposit growth of EXIM Bank is presented in a graph below:

500000
421705.98
395308.33
400000 355816.52
Tk. (in Million)

284026.11 300786.62
300000

200000

100000

0
2017 2018 2019 2020 2021
Years

Figure 04: Five Years of Deposit growth of EXIM Bank

With a growth rate of 6.68%, the total deposit of the Bank stood at Tk. 421,705.98 million
as on 31 December 2021 from Tk. 395,308.33 million as of 31 December 2020. This
growth in deposits has enabled the bank to further business opportunities. The Bank has
set its priority to mobilize no-cost and low-cost deposits, accordingly, low-cost and no-cost
deposits have been increasing steadily. During the year 2021 total low cost, no cost deposit
stood at Tk. 115,698.70.

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 SL. Particulars 2021 2020 Growth
No.
1 Mudaraba savings deposits 37,015.33 31,002.77 19.39%
2 Mudaraba Short notice deposits 34,063.76 30,037.01 13.41%
3 Mudaraba term deposits 196,577.41 183,166.99 7.32%
4 Mudaraba scheme deposits 109,429.87 112,175.53 -2.45%
5 Foreign currency deposits 2,891.84 2,593.54 11.50%
6 Al Wadeeah current and other deposit accounts 39,266.16 33,743.40 16.37%
7 Bills Payable 2,461.61 2,589.09 -4.92%
Total 421,705.98 395,308.33 6.68%

Figure 05: Comparison of 2020 and 2021 deposits growth

3.7 Issuance of Cheque book

A fresh cheque book is delivered to the account holder only against requisition on the
prescribed requisition slip attached with the cheque book issued previously, later the
account holder's signature verification or his duly authorized representative against proper
acknowledgment.
The In-charge of the departmental stocks of Cheque books will receive the request and
allow entering the DCBIR (Departmental Cheque Books Issued Register), and separate
foils in the register which are allotted for CD accounts Cheque Books of 20, 50, and 100
leaves. While the opening of an account, the customer is required to sign a Cheque Book
Requisition Slip. He/She will receive a cheque book only if the account opening form is
found complete in all respects. The person In-charge enters the name and account number
of the customer in the DCBIR against 20 of the particular Cheque Book series and keeps a
record on the computer. The requisition slip should be preserved as Vouchers. The
Processes of Issuance of Cheque book are:

Requisition slip occupied Bank issuance the new

up accurately along with the Banker verifies the slip. cheque book if everything
account number. is the right form

Enter the cheque book form

number in the register
book of the specific
customer’s name

Figure 06: Processes of Issuance of Cheque book

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3.8 SMS Banking
EXIM Bank launched SMS Banking services to provide immediate contact to client
account information at any time. Any mobile phone operator having an account with EXIM
Bank can get the service through the mobile phone upon registration. There are currently
7,01,031 users of SMS Banking services. The offers in SMS Banking are-
• Balance Inquiry
• Mini Statement
• Service Help
• Account Information

Figure 07: EXIM Bank SMS Services

Benefits of SMS Banking:

• Quick and easy control over the status of the bank account.
• SMS Banking Service of EXIM Bank is accessible for both corporate and
individual customers.
• Unlimited messaging service received regardless of the number of transactions of
the customer.

3.9 Cleaning Section

The clearing is a coordination by which a bank can assemble clients’ funds from one bank
to another through a clearing house.
It is a place where the representatives of different banks get together to receive and deliver
cheques to other banks.

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Usually, Bangladesh Bank performs the Clearing House in Dhaka, Chittagong, Rajshahi,
Khulna & Bogra. Where there is no branch of Bangladesh Bank, Sonali Bank arranges this
function.
As far as security is concerned clients get crossed cheques for the transaction. The principal
purpose of the clearing section is to operate with safety and security of economic
transaction of the financial instrument li DD, PO, check, etc. on behalf of the customers
through Bangladesh Bank Clearing House, Outside Bank Clearing (OBC), Inter Branch
Clearing (IBC). This segment examines in the following way:
• Whether the remunerating bank within Dhaka city.
• Whether the remunerating bank outside Dhaka city. Then these checks can be
cleared by OBC, OBC stands for an Outward bill for collection.
• Whether the remunerating is their branch. These checks can be cleared by IBC
(Inter Brunch Bill for Collection)
EXIM Bank LTD. is a scheduled Bank. According to Article 37(2) of Bangladesh Bank
Order, 1972, the banks, which are members of the clearinghouse, are called Scheduled
Banks. The scheduled banks clear the cheque drawn upon one another through the
clearinghouse.
This is an arrangement by the central bank where every day the representative of the
member banks gathers to clear the cheque. Banks for credit of the proceeds to the
customers‟ accounts accept cheques and other similar devices. The bank receives many
such tools during the day from account holders. Many of these instruments are drawn
payable at other banks.
Similarly, there would be many cheques drawn on this the messengers of other banks would
present bank and them at the counter. The whole process of collection and payment would
23 involve considerable labor, delay, risk, and expenditure. The place where the banks
meet and settle their dues is called the Clearinghouse.

3.9.1 Types of Clearing:

Inward Clearing
ddddd
Clearing House

Outward Clearing

Outward Clearing:
When the Branches of a Bank receive a cheque from its customers drawn from the other
Banks within the local clearing zone for collection through Clearing House, it is Outward

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Clearing. When a particular branch collects the financial instruments like PO, DD, and
Cheques within Dhaka city and not of their branch, then the Outward clearing will function.
The procedures of Outward Clearing are as follows:
• The instruments with schedules to the principal in the event of any of EXIM Bank
Bangladesh Ltd after issuing an Inter Branch Debit Advice (IBDA),
• Clearing stamps should be attached to the instruments,
• The authorized signature endorses instruments,
• The customer receives the duty signed instruments and also the branch code number
affixed on the instruments,
• Entry in the Outward Clearing Register,
• Receipt of an instrument with paying in slip,
• Checking of instrument & paying in slip,
• Affixing of seal,
• Special Crossing seal,
• Clearing Seal (Instrument & Paying in slip),
• Endorsement Seal with signature,
• Separation of the instrument from paying in slip,
• Sorting of instruments bank-wise and branch-wise,
• Preparing for schedule as per branch,
• Preparation Bank wise program,
• Preparation of clearing House sheet,
• Details of the instruments and vouchers are recorded in the "Outward Clearing"
register,
• Preparing the vouchers,
• Sending instruments to the main branch with the schedule.
Inward Clearing:
When the Banks receive cheques drawn on them from other Banks in the Clearing House,
it is Inward Clearing. When the checks of its customer are received for collection from
other banks, the following should be monitored very carefully;
• The cheque must be crossed.
• The amount both in words and the figure in the deposit slip should be the same, and
it should be adapted to the amount mentioned in words and figures in the checks as
well.
• The cheque should not carry a date older than the receiving date for more than
months.
• The collecting bank must check whether the endorsement is done properly or not.
• Instrument (DD/Cheque/PO) comes from the principal office.
• Entry in "Inward Register."
• Cheque- on the computer.
• DD-DD payable.
• Pay respective order register.
• Sing in the register by an authorized officer.

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 • Cancellation of the instrument.
• Send IBCA to the Local Office for the honored instrument.
• Send a Return memo, showing cause, to Office for the dishonored instrument.

3.9.2 Types of clearing house

There are two kinds of clearing houses. Those are
1. Normal clearing house:
• 1st house: 1st house usually stands from 10 a.m. to 11 a.m.
• 2nd house: 2nd house often stands after 3 p.m. and it is known as the return house.
2. Same day clearing house:
• 1st house: 1st house usually stands from 11 a.m. to 12 p.m.
• 2nd house: 2nd house usually stands after 2 p.m. and it is known as the return house.
Return House means the 2nd house where the representatives of the Bank meet after
3 p.m. to accept and distribute desecrated cheque, which is placed in the 1st
Clearing House.
Bank Cheque may be dishonored for any one of the following reasons:
• Inadequate deposit.
• Amount in figure and word differs.
• Cheque out of date/post-dated.
• Payment stopped by the drawer.
• Payee's authorization irregular.
• Drawer's signature differs.
• Crossed cheque to be presented through a bank.
• Other specific reasons not mentioned above.
The dishonor cheque entry in the Return Register & the party is informed about it. Party’s
signature is required in the return register to deliver the dishonored cheque. After the
duration, the returned cheque is sent to the party's mailing address with Return Memo. If
the cheque is not honored due to the insufficiency of funds, then EXIM Bank charges a
25/=as penalty.
The Responsibility of the concerned officer for the Clearing Cheque:
• Crossing of the cheque.
• Computer posting of the cheque.
• Clearing seal & proper endorsement of the cheque.
• Separation of cheque from the deposit slip.
• Sorting of cheque Firstly bank-wise and then on branch-wise.
• Computer print 1st branch-wise & then bank-wise.
• Preparation of 1st Clearing House computer validation sheet.
• Examine the computer validation sheet with the deposit slip to justify the computer
posting.
• A copy of the computer posting on the floppy disk.
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3.10 Remittance Section
The word “Remittance” means the distribution of money from one place to an additional
place through a post and transmits. Money-making banks represent this facility to their
clients using unloading money from one branch of the bank and making an easier
arrangement for payment to another branch within the country.
The main function of the remittance department is to transmit the money from one place to
another to minimize the risk associated with handling cash. There are three ways of paying
funds:

3.10.1 Payment order (PO):

It is a non-negotiable acclaim document. It is usually used as a substitute for cash. It can
also be recycled for the safety of the loan. A bank concerns the pay-order in terms of a
quantified charge to safely altercation of money. For transmitting money, pay-order can be
used as cheques where the client of other banks can easily credit through clearing the pay-
order.
This is an appliance allotted by the branch of a bank for permitting the customer to
remuneration a certain amount of money to the order of an individual/ association/
branch/workplace within the same clearinghouse area of the pay order-issuing branch.
Pay order has various kinds of features:
• The issuing branch and the paying branch must have to be the same.
• Application for payment within the clearing house area of the issuing branch.
• This may be open or can be crossed.
Procedures for pay order payments:
• Examine genuinely the pay order.
• Enter in to pay order register and give contra entry.
• Debit if fund ok for payment.
The procedure of the P.O. issue:
For issuing a pay order the client is to submit an Application to the Remittance Department
in the prescribed form properly filled up and duly signed by the applicant. The processing
of the pay order Application form, deposit of cash/cheque at the Teller’s counter and finally
issuing an order, etc. Applicant must fill up the pay order, form. Charges for P.O as follows:
Amount (Tk) Charges (Tk) Postage Charge Total (Tk)
Fee (Tk)
1- 10,000 25 4 29
10,001- 1,00,000 60 9 69
1,00,001- Above 120 18 138
Figure 08: Charges for P.O

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3.10.2 Demand Draft (DD)
DD is similar to the telegraphic transfer except using an application note for moving money
from branch to branch of EXIM Bank.
DD is a kind of bill of exchange. It is the most commonly used way of inland remittance.
It is a complete instruction of the bank to pay a certain amount of money from one branch
to another branch as per the application. While transferring money safely from one city to
another, individuals use DD since it can transfer money between the different branches of
the same bank easily and fast. If a significant total is required to be moved from one place
to another, then a customer can request to do the DD and bear it to his destination instead
of cash. Charges of DD are as follows:
Amount Percentage of Charges
0-250000 15%
Figure 09: Charges of D.D

The issuing procedure of D.D:

• Acquiring demand draft application form which is correctly filled in and signed by
the applicant,
• Receiving the amount of transfer as per suggested from the commission and postage
charge,
• Inserting test number,
• Entering the D.D. register,
• Issuing advice to the payee branch.
Payment procedure of D.D:
• Examining generally of the D.D. viz. the Amount, verify the signature, request, test,
series, etc.
• Entering in the DD payable register,
• Verifying with the IBCA (Inter Bank Credit Advice),
• Passing necessary vouchers.

3.10.3 Telegraphic Transfer (TT)

Telegraphic Transfer is an instrument for transferring money by a telephonic message or
telex from one bank to an alternative of unlike locality or from one branch to another branch
of the altered place of the same bank. Mostly, it is an instruction from the importer’s bank
to the exporter's bank or some other bank in the exporter's country to a named person. And
it's not available now.
Telegraphic Transfer is the most speedy and convenient but expensive method. There are
different types of telegraphic transfer such as Fax, Mobile, Telephone Telex, and Telegram.

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3.11 Locker Service:
EXIM Bank Ltd. is providing a facility of locker service to safeguard the valuable property
of customers. The person or the organization that has any account in a bank branch can
enjoy this service. They can keep their valuable assets in bankers’ custody. Customers have
the right to look after with a key to their locker provided by the bank. EXIM Bank maintains
the following types of lockers:
Locker Size Yearly Charge (Tk)
Large 5,500.00
Medium 4,000.00
Small 3,500.00
Security Deposit (Refundable): Tk. 5,000.00
Cost of key replacement: Tk.3,000.00

Figure 10: Locker Charges of EXIM Bank

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4.1 Findings
A bank is a financial institution. The service of a bank is considered its product. A bank is
a financial intermediary dealing in accepting surplus savings as deposits and extending
funds to those who can approach the bank with bankable projects. The number of funds
can be increased or decreased depending on the professional skill of the bank executives.
The efficiency of customer service is related to the progression of operation. Here I have
mentioned some key findings while studied on EXIM Bank:
• Less number of ATM booths:
So, if they want to subsist in the rivalry, they ought to announce online service as early as
possible.
• Need to be centralized:
Moreover, the EXIM Bank is much more centralized. For every work, the branch office
devours to get authorization from the head office. The head office tightly controls every
branch office. This dependence on head office reasons slows down their activities.
• Technologically no Updated:
The bank is not still technologically updated. Especially, in general, the banking
department follows the traditional banking system. The entire general business procedure
is not fully computerized.
• Introducer:
To open a new account, the customer should have an introducer. But sometimes the
customer may fail to manage references for opening an account. So, in that case, they may
sometimes lose their customer to initiate an account in that bank.
• Cash payment procedure is traditional:
Their cash payment procedure is traditional, like withdrawing money by using cheques
because their ATM card facility is very inferior to compete with other banks.
• Does not provide devotion on the advertisement:
Exim Bank does not provide devotion in the advertisement. For instance, in a competitive
market, it is too much essential for any organization to increase their advertisement
procedure.
Also, Some Positive findings of EXIM Bank Ltd are:
• The Islamic banking and Exim bank's financial performance is good.
• EXIM Bank’s customer satisfaction rating is adequate.
• EXIM Bank offers exceptionally high-quality services.
• EXIM Bank's service is reasonably priced.

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4.2 Recommendations
The banks are in reality service administrations. There are certain difficulties with general
banking events for EXIM Bank Bangladesh Limited. I'd like to provide several
recommendations and solutions to help EXIM Bank overcome its challenges about the
aforementioned subject as well as to enhance its performance in terms of general banking.
The ideas that follow are merely suggestions to improve performance to achieve customer
satisfaction and increase client loyalty to EXIM bank; they are not decisions. Now, the
following recommendations are listed:
• Branch needs to implement a feature that handles consumers more smoothly.
• Adding a completely computerized general banking system to provide speedier
service and please the consumers.
• Setting up a networking infrastructure inside the branches to quickly transport data.
• Discontinue the introducer method so that you can increase deposits into new
accounts and delight your customers.
• For easy comprehension, upgrading general banking conveniences rather than the
traditional banking system.
• Implementing cutting-edge technology and creating suitable programming to
provide captioned activities.
• When a consumer raises a concern, the bank should carefully consider it.
• The Bank must provide quick customer service to avoid haphazardness.
• The Bank should hire more people as needed to meet client demand. As soon as
possible the bank should launch more branches in Dhaka city as well as in other
cities of the country.
• There has no facility for working out for intern students. They can introduce
workspace or seminar for short-term period training for an intern that will enrich
the recital and knowledge of the intern students.
• Every branch should have their capability of the power system and internet
connectivity for diminishing the service downtime.

4.3 Conclusion
Since 1999, EXIM Bank Limited has been effectively running its operations. The bank has
already built-up goodwill and a positive reputation among its clients by providing fantastic
services. Each bank has its business practices and strategy. Some banks want to expand
and develop more quickly. On the other hand, some banks want to project the image of a
reliable bank. Additionally, EXIM Bank Limited has only recently begun operating in
Bangladesh. Even though the bank's financial analysis of its performance is highly positive
in Bangladesh's banking sector, it is anticipated that it will have a profitable future.
There are certain drawbacks to carrying out various jobs by hand, but these may be avoided
by involving more specialists in the decision-making process and by using instruments to
assess the moral character of the clients. There are opportunities to make it more effective
in the future for their advantage, but the bank is not now expanding a modern, systematic
technique for attracting its asset, which is why the results achieved so far are not realistic.

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The placement program intends to expand knowledge of practical banking and to compare
this concrete knowledge with academic experience. Due to several restrictions, it is
unlikely that the theoretical inquiry will lead to wisdom or each action of division.
Therefore, the goals of the research program have not been entirely satisfied. To meet the
goals of producing this report, however, the greatest effort has been made.
I believe that this report may serve as a roadmap for EXIM BANK LTD's future planning
and effective operation as it works to achieve its objectives in the cutthroat business climate.

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References
1. https://www.eximbankbd.com/
2. https://www.eximbankbd.com/report/ar2021.pdf
3. https://www.facebook.com/eximbankltd/
4. www.bannladesh-bank.org
5. Bangladesh Institute of Bank Management (bibm.org.bd)
6. https://assignmentpoint.com/internship-report-general-banking-activities-exim-
bank/
7. www.academia.edu
8. Other References:
• Newsletters published by EXIM Bank Ltd.
• Prospectus of EXIM Bank Ltd.
• Daily Statement of EXIM Bank Ltd.
• Monthly Report of EXIM Bank Ltd.
• Schedule Bank Statistics.
• Related Journals & Report.
• General Banking Manuals.

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