8/13/21 04:14 PM

Welcome to Our
Presentation

1
 Import L/C Opening Procedures at Al-
Arafah Islami Bank Limited

( A Study on Uttara Branch)

2 8/13/21 04:14 PM
8/13/21 04:14 PM

Meher Nigar Bushra

ID:13102081

Faria Hossain
ID:13102129

3
4 1 Introduction Part

2 Organization part

3 Topic part

4 Task part

Research
5
methodology

6 Analysis part
8/13/21 04:14 PM
8/13/21 04:14 PM

Introduction Part

5
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Introduction

A group of 20 noted and

Started journey on 18 Operating Ceremony on Adedicated
group of 20 noted and
Islamic
Started
Junejourney
1995 on 18 Operating Ceremony
27 September 1995 on dedicated Islamic
personalities
June 1995 27 September 1995 personalities

A continuous profit and

A continuous profit and
declared a good Shahriah Based Bank
declared a good
technology Shahriah Based Bank
technology

6
8/13/21 04:14 PM

Aim of the Report

AAclear idea about the Import L/C

clear idea about the Import L/C
Opening
OpeningProcedures
ProceduresofofAIBL.
AIBL.

7
8/13/21 04:14 PM

Objective Of the report

Specific Objectives

Broad
Objectives

8
8/13/21 04:14 PM
Scope of the Report

Determining
Clear real time Banking Proper
experience condition, Inspired the guideline to
about the total environment, clients to open a remove all the
management import L/C L/C. problems
system of AIBL opening
procedures

9
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Limitation of the Study

Lack of Length of No fund or

Lack of Load at the Time Limited
intellectua internship sponsorshi
records workplace constraints Information
l thought program p

10
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Ethical Consideration

Non-
Confidentialit True Honesty and discriminator Higher level
Privacy APA format
y information transparency y & accepted of objectivity
language

11
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Organization Part

12
 Date of Registration 18 June, 1995

8/13/21 04:14 PM
1st Branch Motijheel Branch, Dhaka
Opening Ceremony 27 September, 1995
Category Commercial
Type Private
Origin Local
Head Office 36 Dilkusha C/A
Dhaka-1000, Bangladesh
Phone: 7123255-7, 9568007, 956935
Fax: 880-2-9569351
SWIFT Code ALAR BD DH
Chairman Alhaj. Abdus Samad
Managing Director Md. Habibur Rahman

Overview of AIBL
Authorized Capital 15,000.00 Million

Paid-up Capital 9,469.58 Million

Local Partnership of Capital 100%
Equity 19,236.07 Million
Deposit 169,887.08 Million

Investment 162,503.14 Million

Number of Employees 2,810
Number of Branches 138
Number of Shareholders 44,427
Official Logo

13 Website www.al-arafahbank.com
8/13/21 04:14 PM

Corporate
Governance

Board of
Board of Directors Management Team
Committee

14
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Chairman

Vice Chairman

Board of
Director
Directors
Managing Director

Company Secretary
15
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Executive Committee

Board of committee
Board Audit Committee

Risk Management Committee

Shariah Supervisory
Committee

16
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Management Team

Assistant Vice
Managing Director
president

Company Secretary Vice president

Deputy Managing
Senior Vice president
Director

Executive Vice
Principal
president

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Senior Vice Assistant

Principal Junior Officer Officer

Assistant Vice Field

Officer
Principal Coordinator
Operational
Network
Senior
Messenger
Principal Senior Officer
Come Guard
Officer

Senior
Principal
Executive
Officer
Officer

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19
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20
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Internal Environment

Organizational Structure

Corporate Culture

Organizational Activities

Core Competences

21
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Corporate Structure
Senior Vice President

Second Vice President

General Banking Senior Investment department Foreign Exchange in Charge

Officer Senior Officer Officer

Cash officer Document Officer Second in Charge

Officer
Customer relation Knowledge Officer
Officer Bill Officer

Dealing Officer
Clearing Officer Export Officer

Passing Officer Import Officer

Knowledge Dealing Officer

22 Officer

Knowledge Officer
8/13/21 04:14 PM

Corporate Culture

Common
Values
Common Cli
e
e sk Cli nts c
a n D k
s u i ck ValuesF Feinr om
ts
Q ion le xi e
Cle n De i sk b Fir st com
ea dQeuc c oinng Flex ility st e
Cl m
e caiski ibili
ty
d n g

Pr PEr thEi thi

k i
ma

Pr xcelle
& &

ofe ofecs cs
Ide Ideew ew
sskk

ofe nc
e
ds ds
as as
N N

Me MeewNew

ssi ssi
Dee
D

th o th o

s si e
on on
eenn

on
al al
Opp

al
O

23
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Organizational Activities

CSR
Activities
Informatio
n
Human
technology
Resource
Operation
& Logistics
Marketing
Finance

24
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Core Competencies

Enthusiastic
employee
Excellent
Standard
Managem
Location
ent
Core
Competencies
High
Strong commitm
Brand ent of
Qualified customer
&
experienc
ed human
resource
25
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Products & services

• Individuals Cash Credit • Non Resident Locker

Services
Investment
Deposits

Foreign Exchange
• •
Account • Secured Overdraft Foreign • Agent Banking
• Joint Accounts • Bank Guarantee Currency • ATM Card
• Partnership • Long Term and Account
Short Term • Non Resident
• VISA Credit
Accounts Financing Card
• Public/Private BDT Deposit • Letter of Credit
• House Building Account
Limited Loan • Western Union
Company • Resident
Foreign and other
• Different types money transfers
of Deposit Currency
Deposit
Account
• Foreign
Currency
Deposit
Account

26
 Internal Factors Weight Ratting Weighted Comments
Score
8/13/21 04:14 PM S1. Bank reputation .09 4 .36

S2. Corporate Culture .09 5 .45

S3. Team Work at Mid-level & .08 4 .32

Lower level

S4. Quality .12 5 .6 Appreciable quality

S5. Efficient Management .13 5 .65 All the levels of

management are solely
directed

IFAS
S6. Human Resource Expertise .10 4 .4

S7. Financial Strength .10 4 .4

Sub Total .71 3.18

W1. Limited Workforce .09 5 .45 Employees are burdened

with extra workloads and
works late hours without
any overtime facilities

W2. Liquidity Crisis .08 4 .32

W3. Lack of Qualified System .12 5 .6 Do not have any

Operators background academic
knowledge on computer
applications

Sub Total .29 1.37

28 Total 1.00 4.55

 External Factors Weight Ratting Weighted Comments
8/13/21 04:14 PM Score
O1. Government support .08 3 .24

O2.Evolution of Online Banking .12 4 .48

O3. Diversification .15 5 .75 Pursue a diversification

strategy in expanding its
current line of business
O4. Product line proliferation .15 5 .75 AIBL can expand its
product line to enhance its
Sustainable Competitive
Advantage (SCA)

EFAS
Sub Total .50 2.22

T1. Multinational Banks .12 5 .6 Multinational banks and

their rapid expansion
poses a potential threat
T2. Upcoming Banks .08 4 .32

T3. Mergers and acquisitions .08 4 .32

T4. Contemporary Banks .12 5 .6 Carrying out aggressive

campaign to attract
lucrative corporate clients
T5. Political Instability .10 5 .5

Sub Total .29 2.34

29 Total 1.00 4.56

 8/13/21 04:14 PM

SFAS

30
 IFAS Strength Weakness
S1. Bank reputation W1. Limited Workforce
8/13/21 04:14 PM S2. Corporate Culture W2. Liquidity Crisis
S3. Team Work at Mid- W3. Lack of Qualified
level & Lower level System Operators
S4. Quality
S5. Efficient Management
S6. Human Resource
Expertise
EFAS
S7. Financial Strength
Opportunities (S1+ O1) (W1+ O1)
O1. Government support Government support With the government support
O2.Evolution of Online facilitates the long-term AIBL can spread its branch
Banking vision that build a strong all over the country
O3. Diversification bank reputation. (O2+ W3)

TOWS
O4.Product line (S2+S3+S5+S6+O2) By the modification of
proliferation AIBL’s Friendly corporate qualified system operators
culture, expertise with team AIBL can evaluate online
work and efficiently banking.

Matrix management will help to

evaluate online banking.
(S4+S7+O3+O4)
(O3+O4+W2)
By applying the diversified
strategy and product
Diversified strategy and proliferation AIBL can
product line proliferation reduce liquidity crisis.
with best quality will make
AIBL financially strong.

Threats (S1+S2+S3+S4+S5+S6+ (W1+W2+W3+T1+T2+

T1. Multinational Banks S7+T1+T2+T3+T4) T3+T4)

31
T2. Upcoming Banks AIBL has strong brand With the increase of strong
T3. Mergers and image, friendly corporate branch network, best quality
acquisitions culture, best quality and products and diversified
T4. Contemporary Banks efficient management. By strategy with qualified
8/13/21 04:14 PM

Financial Analysis

32
8/13/21 Particular 2011 2012 2013 2014 2015

04:14 PM Authorized Capital 10,000.00 10,000.00 15,000.00 15,000.00 15,000.00

Shareholders' Equity (Capital & Reserve) 11,989.11 14,050.69 16,091.17 18159.52 19,236.07

Deposits 82,186.98 118,683.39 140,980.55 166,851.17 169,887.08

Investment 77,714.95 106,650.42 125,715.39 146,740.36 162,503.14
Total Income 11,332.59 16,692.58 19,723.41 22,211.79 21,079.94
Total Expenditure 7,005.81 11,937.04 14,774.85 15,878.34 14,719.79
Performance

Profit Before Tax 3,946.62 3,944.10 4,360.41 4,486.59 4,563.47

Profit After Tax 2,198.75 1,945.41 2,276.68 2,324.95 2,465.88
Fixed Assets 968.13 2,394.62 2,517.22 2,661.11 3057.38
Current

Total Assets (Excluding off-balance sheet 106,768.18 149,320.36 173,161.63 210,439.79 229,106.66
items)

Import Business 76,112.10 71,931.70 85,915.00 101,244.70 107,049.80

Export Business 52,202.10 58,476.60 68,980.30 75,843.90 79,362.90
Total Capital 13,047.90 14,804.73 16,625.37 18,914.03 23,072.51
Total Capital Ratio 13.47 11.75 14.66 14.03 16.65
Number of Shares Outstanding 589,337,199 713,098,010 834,324,671 946,958,503 946,958,503

Earnings per Share (Taka) 2.79 2.03 2.46 2.20 2.36

33 Price Equity Ratio (Times)

Dividend per Share
2.26 1.23 0.99 0.78 0.72
 8/13/21 04:14 PM Indicator Year 2014 Year 2015 Growth %
Shareholder 18,159.52 19,236.07 5.93
Equity
Deposits 166,851.17 169,887.08 1.82
Investments 146,740.37 162,503.14 10.74

Growth Total Income

Total
22,211.79
15,878.34
21,079.94
14,919.79
(5.1)
(6.03)

Concern expenditure
Operational 6333.45 6360.15 0.42
Profit
Import 101,244.70 107,049.80 5.73
Export 75,843.90 79,362.9 4.64
Bank Guarantee 3,365.27 4,471.41 32.87
34 Remittance 8,541.10 9,498.00 11.20
8/13/21 04:14 PM

Shareholder Equity
Shareholder Equity
In Million Taka
25,000.00

20,000.00
19,236.07
18,159.52
16,091.17
15,000.00
14,050.69
11,989.11
10,000.00

5,000.00

0.00
2011 2012 2013 2014 2015

From the year 2011 to year 2015, the Shareholder Equity shows upward trend.

35
8/13/21 04:14 PM
Deposits
Deposits Growth
Million of Taka
180,000
166,851.17 169,887.08
160,000
140,000 140,980.55
120,000 118,683.39
100,000
80,000 82,186.98
60,000
40,000
20,000
0
2011 2012 2013 2014 2015

From the year 2011 to year 2015, the deposits show upward trend

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8/13/21 04:14 PM
Investment
Investment Growth
Million in taka
180,000.00

160,000.00 162,503.14
146,740.36
140,000.00
125,715.39
120,000.00
106,650.42
100,000.00

80,000.00 77,714.95

60,000.00

40,000.00

20,000.00

0.00
2011 2012 2013 2014 2015

General investment of AIBL from the year 2011-2015 showed a favorable growth
37
8/13/21 04:14 PM
Total Income & Expenditure

Total income & Expenditure

In Million Taka
Income Expentidure
25,000.00
22,211.79
21,079.94
20,000.00 19,723.41
16,692.58 15,878.34
15,000.00 14,774.85 14,919.79

11,332.59 11,937.41
10,000.00
7,005.81
5,000.00

0.00
2011 2012 2013 2014 2015

The total income of the Bank from 2014-2015 is showing a decrease by 1,131.85
recording negative growth of 5.1%.
Total Expenditure from 2014-2015 is showing a decrease by 958.55 recording
38 negative growth of 6.03%.
8/13/21 04:14 PM
Operating Profit
Operating Profit
in Million Taka
7000
6333.45 6360.15
6000

5000 4948.56
4755.54
4326.78
4000

3000

2000

1000

0
2011 2012 2013 2014 2015

AIBL attained Positive growth of 0.42% in respect of operating profit from 2014-

39 2015
8/13/21 04:14 PM
Foreign Exchange
Chart Title
Import Export
Guarantee Business Inward remittance Business
120000

107049.8
100000 101244.7

85915
80000 79362.9
76112.1 75843.9
71931.7 68980.3
60000 58476.6
52202.1
40000

20000
23120.4

6876.2 7042.5 8541.1 9498

1955.72 2006.61 3365.27 4471.41
0 1812.38
2011 2012 2013 2014 2015

Here we see that, Import Growth 5.73% in 2015

Export Growth 4.64% in 2015
40 Remittance growth 11.20% in 2015
8/13/21 04:14 PM

Ratio Analysis

41
8/13/21 04:14 PM
Return on Asset (ROA)

ROA
2.5

2 2.06

1.5 Series 1
1.3 1.31
1.1 1.08
1

0.5

0
2011 2012 2013 2014 2015

The graph shows the negative growth of .03%

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8/13/21 04:14 PM
Return on Equity Ratio

ROE
20
18.34 18
16
13.85 14.15 14
12.8 12.82
12 Series 1
10
8
6
4
2
0
2011 2012 2013 2014 2015

Here we can see that the increase growth is .02

43
8/13/21 04:14 PM
Price / Earnings Ratio (P/E)

P/E
16

14
13.55
12 11.97

10
Series 1
8 7.76
6.77
6 6.31

0
2011 2012 2013 2014 2015

Here the negative growth is .46

44
8/13/21 04:14 PM
Earnings per Share (EPS)

EPS
3
2.79
2.5 2.46
2.36
2.2
2 2.03

Series 1
1.5

0.5

0
2011 2012 2013 2014 2015

Here the increase growth is .16 million taka.

45
8/13/21 04:14 PM Net Profit Margin

Net Profit Margin

6.6

6.4 6.4

6.2

6
5.88
5.8
5.7
5.6
5.55
5.4
5.35
5.2

4.8
2011 2012 2013 2014 2015

Series 1

Here we can see that the negative growth is 1.05

46
8/13/21 04:14 PM

Topic Part

47
8/13/21 04:14 PM
Foreign exchange Department

Export

Foreign
Exchang
e

Import Remittance

48
8/13/21 04:14 PM
Import
• Different Import Policy:

 $2000 for actual user without permission,

 $2000-5000, approval of (CI&E).

 Above $5000, approval of (CCI&E).

 Import facility on the basis of direct payment.

 L/C must be irrevocable.

 Perishable items like food up to $7500 transported by road L/C is not required.

49
8/13/21 04:14 PM
Continued..

 Import without opening of any L/C:

 Books, Magazine, Publication.

 Import up to $5000 in case of payment from Bangladesh.

 Import under foreign aid.

 Pharmaceutical companies with prior approval of Drug Administration.

 Government sector bodies can import without any license, permit & IRC.

 Commercial import by cash payment only

50
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Registration Of Importer

• Questionnaire duly filled in & signed by the applicant.

• Trade license.
• Members from chamber of commerce or any other trade Association.
• Nationality certificate.
• Income tax registration certificate.
• Partnership deed/Certificate of registration with the register of joint stock
companies where applicable.

51
8/13/21 04:14 PM
Letter of Credit
Definition according to UCP:
 Credit means any arrangement
 constitutes a definite undertaking of the issuing bank
 honor complying presentation.

Honor means:
 To pay at sight
 To incur a deferred payment undertaking and pay at maturity
 To accept a bill of exchange (draft) drawn by the beneficiary and pay at maturity
 All letters of credits are IRREVOCABLE CREDIT
52
8/13/21 04:14 PM
Types of L/C

 Revolving L/C  Transferable L/C

 Irrevocable L/C  Deferred L/C
 Confirmed L/C  At Sight L/C
 Unconfirmed L/C  Red Clause L/C
 Restricted L/C  Bank to Back L/C
 Unrestricted L/C  Standby L/C

53
8/13/21 04:14 PM

Parties Involve in L/C

Main Parties: Other Parties:

i) The issuing bank i) The applicant
ii) The confirming bank ii) The advising bank
iii) The beneficiary iii)The nominated paying /negotiating/
accepting bank
iv)The reimbursing bank
v)The transferring bank (if any)

54
8/13/21 04:14 PM Documentation required for opening L/C
 Application form duly signed by applicant with LCAF
 Bank Account
 A photocopy of the membership Certificate of the Chamber of Commerce Of the related
business community,
 A photocopy of the Import Registration Certificate (IRC),
 A photocopy of the trade License (has to update),
 Value Added Certificate (VAT) number,
 A copy of Proforma Invoice or Indent,
 Tax Identification Certificate (TIN)
 Certificate of Incorporation,
 Memorandum of incorporation,
 Insurance Cover Note,
55  IMP Form
8/13/21 04:14 PM
L/C Application

 Full Name and Address of the Beneficiary,

 Brief description of goods keeping conformity to the L/C indents,
 Currency amount of L/C, Unit price quantity, quality of goods,
 Origin of the goods,
 Mode of transport,
 Last date of shipment.

56
8/13/21 04:14 PM
Examination of L/C Application

o the terms and conditions of the L/C application are consisted with exchange
control and import trade regulation, UDPDC-600.
o goods are eligible to import.
o The L/C must not be opened in favor of importer,
o Goods are not of Israel and vessel used is not of Israel,
o Indenting registration number,
o Insurance cover note with date of shipment,
o Whether IRC up date or not,
o Radioactive report in case of food items.
o Whether IMP form dully filled in and signed,

57
8/13/21 04:14 PM
Continued

o Whether liability is under appropriate limit,

o In case of car, the life is not more of5 years.
o In case of old machinery, surveyor certificate whether asked,
o Credit report of beneficiary in case L/C value of more than USD $20,000.
o Description of goods in the application relevant with the indent P.I. or import
control,
o Whether transcription and partial shipment is allowed.
o Margin for L/C will also be determined.

58
8/13/21 04:14 PM
Accounting treatment of L/C opening

Description Debit Credit

Party A/C Dr.
Margin on L/C Cr.
Commission on L/C(
0.40% of total value) Cr.
Vat (15% of
Commission) on L/C Cr.
FCC A/C Cr.
Stamp A/C Cr.
Postage Charges Cr.
Telex/SWIFT charges Cr.

Customer’s Liability Dr.

Banker’s Liability Cr.

59
8/13/21 04:14 PM
L/C Transmitting

Tele AIBL use SWIFT when L/C is disposed

x
 First two copies transmitted to the advising bank
One copy to the importer.
SWI
FT  One copy to Head office.
 One copy to the Bangladesh Bank.
 One copy is retained as office copy.
Cour  One copy to the C.C.I. &E
ier

60
8/13/21 04:14 PM
Negotiating

Bank
Negotiating
Required negotiates Bank
bank
Documents the drafts forwards
Beneficiary reimburses
are send to making drafts to
receives L/C the amount
Negotiating payment to L/C issuing
paid against
Bank the bank
the draft
beneficiary

61
8/13/21 04:14 PM

Amendment of Letter of Credit

Amendment can be done for many reasons under some guidelines which are given
below:
 For Extension date of shipment.
 For Extension of draft amount within L/C limit.
 Change in specification of goods, value or quantity to be imported.

62
8/13/21 04:14 PM

Receiving Documents

 Bill of Exchange
 Commercial Invoice
 Bill of Lading
 Certificate of Origin
 Inspection Certificate
 Packing List
 Insurance Document
63
8/13/21 04:14 PM
Scrutiny of the Documents

– Documents have been negotiated within the negotiation period.

– The Bill of Lading/Air-Way Bill/ Railway receipt is not dated later than
the last date of shipment mentioned in the L/C.
– The L/C has not been amended or subjected to any special instructions,
which might alter the value of L/C

64
8/13/21 04:14 PM

Task Part

65
8/13/21 04:14 PM
Training Program

Theoretical
Practical Training
Training

66
8/13/21 04:14 PM
Theoretical Training

67
8/13/21 04:14 PM

Meher Nigar Bushra

ID- 13102081

68
 Practical Work Weeks and Date Supervisor’s Name
8/13/21 04:14 PM 1. Writing FDD, PO, TM and Week 1 & 2 Md. Amzad Hossain
IMP Form 25/9/16- 7/10/16 ( Senior Executive officer)
2. Have a Look on Opening L/C Week 3 & 4 Md. Milan Mia
and Back to Back L/C, 8/10/16- 21/10/16 (Principal Officer)
Requirement Check, Writing
Office Notes
3. SWIFT Message Writing Week 5 Md. Ziaul Huda Tapu
22/10/16-28/10/16 (Senior executive officer)
4. Input Debit and Washout Week 6 Tanvir Mustafa
Credit Amount, Document 29/10/16-4/11/16 (Executive officer)
Entry, Statement Writing.
5. Cutting Commission& Week 7 Jabbar Hossain

Practical Checking FC Fund

6. Dispatch Online entry of
5/11/16-11/11/16
Week 8
(Senior Principal Officer)
Md. Kamruzzaman

Training
Inland BTB L/C Opening, 12/11/16- (Management Trainee
18/11/16
Acceptance and Payment Officer)
7. Dispatch Online entry of Week 9 and 10 Md. Kamruzzaman
Foreign Import Transaction: 19/11/16- 2/12/16 (Management Trainee
 L/C Authorization Form Officer)
Entry
 L/C Contract Information
entry
 IMP Information Entry
 Bill of Entry

69 8. Review of All Works Week 11 & 12 Under above supervisors

Mentioned Above 3/12/16- 14/12/16
8/13/21 04:14 PM

Faria Hossain
ID: 13102129

70
 Practical Work Weeks and Date Supervisor’s Name
1. How to maintain customer relationship Week 1 Md. Alauddin Hossain
8/13/21 04:14 PM
25.09.2016-26.09.2016 Customer Service Officer
2. Account opening procedures Week 1 Md. Alauddin Hossain

27.09.2016- 02.10.2016 Customer Service Officer

3. Account closing procedures Week 2 Md. Alauddin Hossain

03.10.2016- 06.10.2016 Customer Service Officer

 
4.Writing FDD, PO, TM and IMP Form Week 3&4 Ziaul Huda Tapu

09.10.2016- 23.10.2016 (Senior Executive Officer)

 
5. Have a look on opening Master L/C and as well as Back to Back (BTB) L/C. Week 5 Md. Milan Mia

  24.10.2016- 31.10.2016 (Principle Officer)

6. Writing messages through SWIFT Week 6 Md. Milan Mia

  01.11.2016- 10.11.2016 (Principle Officer)

7. Cut the L/C commission charge Week 7 Ziaul Huda Tapu
(Senior Executive Officer)
  13.11.2016- 20.11.2016
8.Giving dispatch entry into Bangladesh Bank website Week 8 Md. Kamruzzaman

21.11.2016- 30.11.2016 (Management Trainee Officer)

 
9. Checking Foreign Currency (FC) Funds for payments was another repeated Week 9&10 Md. Amzad Hossain
task

71
01.12.2016- 13.12.2016 (Senior Executive Officer)
 
10. Doing regular and repeated tasks. Week 11&12  
8/13/21 04:14 PM

Research Methodology

72
8/13/21 04:14 PM
Problem Statement

To manage all L/C opening required

documents take time and create
delay of L/C Payment.

73
 8/13/21 04:14 PM   Weeks

Tasks 1 2 3 4 5 6 7 8 9 10 11 12

Initial research Plan                        

Introduction & Literature review                        

Fieldwork to collect Data for topic                        

Part

Project Interpretation & analysis of data                        

Timeline Hypothesis
development
and Questionnaire                        

Hypothesis testing                        

Findings & Recommendations                        

Report preparation                        

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8/13/21 04:14 PM

Budget Information

Particulars Amount

Transportation 5000

Lunch 6000

Cell phone and Internet Bill 1600

Printing, Photocopy & Binding 2000

Total 14600

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 ●
Clients who open
Population Sample ●
32 respondents
8/13/21 04:14 PM Sampling Information
L/C

Sampling
Procedures

76
8/13/21 04:14 PM Research Technique

Research
Research Contact Data Data
Instrumen
Type Method Sources Analysis
t

77
8/13/21 04:14 PM

Research Limitation

Busy
Confidentiality
Limited Time Schedule

Conducted
on Insufficient
Secondary Information
data

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Analysis Part

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8/13/21 04:14 PM
Hypothesis Development

HA: LC Amendment policy provided by AIBL is good.

HA: AIBL has a strong network with all the parties of LC provided by bank.
HA: AIBL always keeps a good attention to the expiration date of LC payments.
HA: L/C documentation system is good.
HA: Irrevocable L/C provided by AIBL is good.
HA: Transferable L/C provided by AIBL is good.

80
 8/13/21 04:14 PM
5 Points Likert Scale H1 H2 H3 H4 H5 H6

Strongly Disagree (1) 03 04 04 01 05 03

Disagree (2) 04 03 05 04 03 06

Neither Agree Nor 06 02 07 05 06 04

Disagree (3)

Agree (4) 09 13 09 15 8 09

Hypothesis Strongly Agree (5) 10 10

Calculation
07 08 10 10

Testing Total 115 118 106 124 111 113

Average ( ) 3.4 3.7 3.31 3.9 3.5 3.53

Standard Deviation 1.31 1.33 1.31 1.07 1.5 1.3

(S)

Z-Test Value 3.91 5.10 3.5 7.41 3.77 4.5

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 8/13/21 04:14 PM
Ho: LC Amendment policy provided by AIBL is not good.
HA: LC Amendment policy provided by AIBL is good.
HO: μ = 2.5
HA: μ > 2.5
n = 32
(√n=√32 = 5.66)

Hypothesis X = 3.4
S = 1.31
1 Zcal = (X –μ) / (S/√n)
= (3.4-2.5) / (1.31/5.66)
= 3.91

Interpretation: At, 95% Level of confidence by following Z distribution is Z.05 =1.645. Since,

82
Zcal > Ztab, so the null hypothesis is not accepted. Now, at the 95% Level of confidence, we
can estimate that LC Amendment policy provided by AIBL is good.
 8/13/21 04:14 PM Ho: AIBL has a weak network with all the parties of LC provided by bank.
HA: AIBL has a strong network with all the parties of LC provided by bank.
HO: μ = 2.5
HA: μ > 2.5
n = 32
(√n=√32 = 5.66)

Hypothesis 2 X = 3.7
S = 1.33
Zcal = (X –μ) / (S/√n)
= (3.7-2.5) / (1.33/5.66)
= 5.10

Interpretation: At, 95% Level of confidence by following Z distribution is Z.05=1.645. Since,

Zcal > Ztab, so the null hypothesis is not accepted. Now, at the 95% Level of confidence, we

83 can estimate that AIBL Bank has a strong network with all the parties of LC provided by bank.
 8/13/21 04:14 PM Ho: AIBL fails to keep a good attention to the expiration date of LC payments.
HA: AIBL always keeps a good attention to the expiration date of LC payments.

HO: μ = 2.5
HA: μ > 2.5
n = 32
(√n=√32 = 5.66)

Hypothesis X = 3.31
S = 1.31
3 Zcal = (X –μ) / (S/√n)
= (3.31-2.5) / (1.31/5.66)
= 3.5

Interpretation: At, 95% Level of confidence by following Z distribution is Z.05=1.645. Since,

Zcal > Ztab, so the null hypothesis is not accepted. Now, at the 95% Level of confidence, we
84 can estimate that AIBL always keeps a good attention to the expiration date of LC payments.
 8/13/21 04:14 PM Ho: L/C documentation system is not good.
HA: L/C documentation system is good.
HO: μ = 2.5
HA: μ > 2.5 H4
Strongly

n = 32 24% 3% 12%
Disagree

Hypothesis (√n=√32 = 5.66) 15%

Disagree

4 X = 3.9
S = 1.07
Neither disagree
nor Agree

Agree

45%
Zcal = (X –μ) / (S/√n) Strongly Agree

= (3.9-2.5) / (1.07/5.66)
= 7.41
Interpretation: At, 95% Level of confidence by following Z distribution is
Z.05=1.645. Since, Zcal > Ztab, so the null hypothesis is not accepted. Now, at the
85 95% Level of confidence, we can estimate that L/C documentation system is good.
 8/13/21 04:14 PM
Ho: Irrevocable L/C provided by AIBL is not good.
HA: Irrevocable L/C provided by AIBL is good.
HO: μ = 2.5
HA: μ > 2.5 H5
Strongly
n = 32 Disagree
31% 16%
Disagree
(√n=√32 = 5.66)
Hypothesis
9%
Neither
X = 3.5 disagree nor

5 S = 1.5
19%
Agree

Agree
25%
Zcal = (X –μ) / (S/√n) Strongly
Agree

= (3.5-2.5) / (1.5/5.66)
= 3.77
Interpretation: At, 95% Level of confidence by following Z distribution is Z.05=1.645.
Since, Zcal > Ztab, so the null hypothesis is not accepted. Now, at the 95% Level of
86 confidence, we can estimate that Irrevocable L/C provided by AIBL is good.
 8/13/21 04:14 PM Ho: Transferable L/C provided by AIBL is not good.
HA: Transferable L/C provided by AIBL is good.
HO: μ = 2.5
H6
HA: μ > 2.5
n = 32 31% 9%
19% Strongly Disagree
(√n=√32 = 5.66) Disagree

Hypothesis 6
Neither Agree Nor
Disagree
X = 3.5 Agree
Strongly Agree

S = 1.3 28%
13%

Zcal = (X –μ) / (S/√n)

= (3.53-2.5) / (1.3/5.66)
= 4.5
Interpretation: At, 95% Level of confidence by following Z distribution is
Z.05=1.645. Since, Zcal > Ztab, so the null hypothesis is not accepted. Now, at the
95% Level of confidence, we can estimate that Transferable L/C provided by AIBL
87 is good.
8/13/21 04:14 PM
Findings
 From this study of H1 it is revealed that 9% respondents strongly disagree,
another 13% respondents disagree, 19% respondents neither agree nor disagree,
28% respondents are agree, 31% respondents strongly agree on LC Amendment
policy provided by AIBL Bank is good.

 From this study of H2 it is revealed that 13% respondents strongly disagree,

another 9% respondents disagree, 6% respondents neither agree nor disagree,
41% respondents are agree, 31% respondents strongly agree on AIBL Bank has
a strong network with all the parties of LC provided by bank.

 From this study of H3 it is revealed that 23% respondents strongly disagree,

another 14% respondents disagree, 19% respondents neither agree nor disagree,
25% respondents are agree, 19% respondents strongly agree on AIBL Bank
88 always keeps a good attention to the expiration date of LC payments.
8/13/21 04:14 PM Findings
 From this study of H4 it is revealed that 3% respondents strongly disagree,
another 12% respondents disagree, 15% respondents neither agree nor disagree,
46% respondents are agree, 24% respondents strongly agree on L/C
documentation system is good.

 From this study of H5 it is revealed that 16% respondents strongly disagree,

another 9% respondents disagree, 19% respondents neither agree nor disagree,
25% respondents are agree, 31% respondents strongly agree on Irrevocable L/C
provided by AIBL is good.

 From this study of H6 it is revealed that 9% respondents strongly disagree,

another 19% respondents disagree, 13% respondents neither agree nor disagree,
28% respondents are agree, 31% respondents strongly agree on Transferable L/C
provided by AIBL is good.
89
8/13/21 04:14 PM Recommendation
 L/C amendment policy is good. Though AIBL should make a policy so that the
second beneficiaries can’t avoid to carry its part of credit.
 Though AIBL keeps good relation with all the parties of L/C. They also should
provide better services within very short time. It will help them to build more
strong relation with clients.
 AIBL Bank always keeps a good attention to the expiration date of LC
payments. New software development will help them to remind regularly the
expiration dates of LC.
 Documents can receive through email from clients. It will able them to make
advanced documentation system.
 As Irrevocable L/C provided by AIBL is good, bank can reduce commission
charge to make it more attractive.
 Transferable L/C provided by AIBL is good. So AIBL should keep strong
90 communication with the second beneficiary bank.
8/13/21 04:14 PM

Do You
Have Any
Question …???

91
8/13/21 04:14 PM

Conclusion

92
8/13/21 04:14 PM

93