Assalamu Alaikum

Welcome to the
Presentation
on
Internship Study
 Presentation on

“Investment Management of EXIM Bank Bangladesh Limited -- A study on

CDA Avenue branch, Chattogram”

Presented By:

S.M Abdullah Al Jami Sadman

Metric ID: EB171080

Supervised By:
Shah Asadullah Mohd. Zobair
Lecturer,
Department of Economics &Banking

Department of Economics & Banking

International Islamic University Chittagong
 Export Import Bank of Bangladesh Limited.

The
Operating
AIBL Total The Board Profit of the
Established Branches of Directors Bank During
in year of AIBL Consists of the year 2019
1995 21 was TK.
is182 7,860.62
Million
 Objectives of the Study:

The prime objective of the study is to analyze the investment

management mechanism of Export Import Bank of Bangladesh
Limited.
The specific objectives of the study are as follows:

 To examine the investment Mechanism and policies of EXIM Bank

Ltd, CDA Avenue Branch.
 To analyze the investment risk of EXIM Bank Ltd, CDA Avenue
Branch.
 To evaluate the investment performance and its impact on
profitability of the EXIM Bank Ltd, CDA Avenue Branch.
 Methodology of the study

In order to conduct such a study, it is necessary to follow some specific methods.

I have nothing to do with the variables other than stating what EXIM bank’s CDA
Avenue Branch is doing for managing its investment operation.
Sources of Data:
All the relevant data regarding this report are collected from two sources.
Primary Sources of Data:
Primary sources of data include:
Face to face conversation with the bank officers & Practical work experience.
Secondary Sources of Data:
I have collected secondary data from the following sources:
• Annual Reports of EXIM bank
• Unpublished data from the EXIM bank, CDA Avenue Branch.
• Manuals of EXIM bank regarding investment business.
• EXIM banks website (www.eximbankbd.com).
 Figure of Total investment of CDA Avenue Branch: (in Million)

1483.77
1370.77 1400.84 1374.84

1137.14

2016 2017 2018 2019 2020

 Figure of Deposits of CDA Avenue Branch: (in
Million)

3523.56
3476.4

3367.56

3290.4
3256.2

2016 2017 2018 2019 2020

 Figure of Investment Deposit
Ratio:

41.68% 41.58% 42.68%

39.02%
34.92%

2016 2017 2018 2019 2020

 Investment Profit of CDA Avenue
branch (in crore):

11.45 11.56 11.67 11.7

8.94

2016 2017 2018 2019 2020

 Mode Wise Investment of CDA Avenue
Branch ,Year 2020 (Figures in Million
Taka) :

Musharaka Doc. Bill Inland investment $34.50

Izara Bill Baia Investment $46.01

Bai-Muajjal $1,038.22

Bai-Murabaha $244.03
 Findings
Every work has some findings; without findings the study cannot be finished successfully.
This report has been prepared focusing on investment department of the bank. The
findings of the study are summarized below:

• Decision making process of the bank is centralized. So it takes time to approve

investment proposal.

• Investment proposal are evaluated at the three stages:

 First at the branch level and they make a decision about the proposal.
 Second, the evaluated proposal by the branch are sent to the regional head office for
further evaluation.
 Third, the head office make the final decision about the investment and sometimes it
take more time which is harmful for the investment.

• The bank emphasizes corporate client for investment.

• The investment management terms and policies of the bank are effectively shaped with
all the rules and regulations of the Bangladesh Bank and Islamic Shariah.
• The investment and risk management committee of the bank is entrusted to comply with
the CRM guidelines,monitoring and updating the bank’s investment policy.
 Problems

After evaluation of investment practices of EXIM Bank Bangladesh

Limited, I have found some problems, which are given below:

 The terms & conditions of investment are not much familiar to

customers.
 The investment deposit ratio is low, which can create over liquidity
problem.
 No collateral received at the time of issuing credit card.
 Insufficient team of looking for new market or clients.
 Sometimes the clients do not repay the invested money or
outstanding balance in time and regular basis.
 Recommendations

After a complete analysis and implementation of the evaluation of investment practices of

EXIM Bank Bangladesh Limited, I would like to make some recommendations for the
improvement of the investment system based on the findings, which are descriebed below:

 The terms & conditions of investment of the bank should be made understanding and
simplified.
 The management of the bank should try to increase their total investment for keeping up
with the pace of the deposit growth.
 Bank should have strong team to recollect the investment fund.
 Bank should carefully treat some clients who don’t repay the invested money in time and
regular basis. So, the branch manager must take necessary steps to collect outstanding
balances as per bank rules accordingly.
 It may be a fair deal if the high-risk borrowers and the low risk borrowers should not have to
pay the same interest rate. Interest rate could be arranged according to the sum they borrow.
 The management should look for new customers by maintaining terms and policy of the
bank and try to avoid giving loan the political person who had bad reputation of loan repaying.
 A uniform guidelines for issuing credit card should introduce to collect collateral from
customers at the time of issuing credit card so that the bank can avoid risk.
Thank You