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Foreign Exchange

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This document is based on foreign exchange division of a bank.



Internship Report On Functions of Foreign Exchange of Jamuna Bank Limited (JBL)

Submitted B! Tazizur Tazizur Rahman ID: 01-18 Batch: First

Submitted "o! Md. Abul Kashem Assistant r!"ess!r 

Date !" #ubmissi!n: De$artment !" Mana%ement In"!rmati!n #&stems Facult& !" Business #tudies 'ni(ersit& !" Dha)a

Letter of Submission Date: Au%ust1*+ ,010 Md. Abul Kashem Assistant r!"ess!r  De$artment " Mana%ement In"!rmati!n #&stems MI#/ 'ni(ersit& !" Dha)a Sub#ect!  #ubmissi!n !" internshi$ re$!rt.

Dear #ir+ This is t! in"!rm &!u that I ha(e c!m$leted m& internshi$ re$!rt !n the t!$ic $Functi!ns !"  "!re "!rei% i%n n echa echan% n%ee !" amu amuna na Ban) Ban) 2td 2td% !" Ban%lad Ban%ladesh esh.. I ha(e ha(e c!m$le c!m$leted ted m& intern internshi shi$ $ attachment $eri!d 3ith amuna Ban) 2td. re$arin% this re$!rt+ I ha(e c!llected in"!rmati!n "r!m all a(ailable s!urces in the m!st realistic and $r!"essi!nal 3a&. 3a &. In 3ritin% this re$!rt+ I ha(e "!ll!3ed the instructi!ns !" m& !r%anizati!n 3hile at the same time c!nsul c!nsultin tin% % m& instit institute ute su$er( su$er(is! is!r. r. I ha(e ha(e endea(! endea(!red red t! the utm!st utm!st $!tenti $!tential al and limite limited d c!nstraints t! $r!4ect the re$!rt as re"lecti(e as $!ssible. I earnestl& h!$e that this re$!rt 3ill meet &!ur s$eci"icati!n 3!uld be deli%hted t! "urnish &!u 3ith an& clari"icati!n i" re5uired.

Than)s and Re%ards 6!urs 6!urs Trul& ------------------------------Tazizur Tazizur Rahman/  BBA $r!%ram 1th Batch/ R!ll n!.&'' De$artment !" Mana%ement In"!rmati!n #&stems 'ni(ersit& !" Dha)a

Letter of Submission Date: Au%ust1*+ ,010 Md. Abul Kashem Assistant r!"ess!r  De$artment " Mana%ement In"!rmati!n #&stems MI#/ 'ni(ersit& !" Dha)a Sub#ect!  #ubmissi!n !" internshi$ re$!rt.

Dear #ir+ This is t! in"!rm &!u that I ha(e c!m$leted m& internshi$ re$!rt !n the t!$ic $Functi!ns !"  "!re "!rei% i%n n echa echan% n%ee !" amu amuna na Ban) Ban) 2td 2td% !" Ban%lad Ban%ladesh esh.. I ha(e ha(e c!m$le c!m$leted ted m& intern internshi shi$ $ attachment $eri!d 3ith amuna Ban) 2td. re$arin% this re$!rt+ I ha(e c!llected in"!rmati!n "r!m all a(ailable s!urces in the m!st realistic and $r!"essi!nal 3a&. 3a &. In 3ritin% this re$!rt+ I ha(e "!ll!3ed the instructi!ns !" m& !r%anizati!n 3hile at the same time c!nsul c!nsultin tin% % m& instit institute ute su$er( su$er(is! is!r. r. I ha(e ha(e endea(! endea(!red red t! the utm!st utm!st $!tenti $!tential al and limite limited d c!nstraints t! $r!4ect the re$!rt as re"lecti(e as $!ssible. I earnestl& h!$e that this re$!rt 3ill meet &!ur s$eci"icati!n 3!uld be deli%hted t! "urnish &!u 3ith an& clari"icati!n i" re5uired.

Than)s and Re%ards 6!urs 6!urs Trul& ------------------------------Tazizur Tazizur Rahman/  BBA $r!%ram 1th Batch/ R!ll n!.&'' De$artment !" Mana%ement In"!rmati!n #&stems 'ni(ersit& !" Dha)a

*E+L,R,"IOI a""irm that the Internshi$ Re$!rt titled 7Functi!ns !" F!rei%n echan%e !" amuna Ban)  2imited 2imitedB2/ B2/ bein% submitte submitted d "!r the internshi$ internshi$ $art !" BBA $r!%ram $r!%ram is the !ri%inal !ri%inal 3!r) carried !ut b& me. It has n!t "!rmed the $art !" an& !ther re$!rts submitted as internshi$ re$!rt either in this !r an& !ther 'ni(ersit&. 'ni(ersit&.

Than)s and Re%ards  6!urs Trul& ------------------------------Tazizur Rahman/  BBA $r!%ram 1th Batch/  R!ll n!.&''

I certi"& that the declarati!n made ab!(e b& the candidate is true.

.d/ ,bu0 1ashem Assistant r!"ess!r  De$artment !" Mana%ement In"!rmati!n #&stems 'ni(ersit& !" Dha)a

Super2isor3s +ertification

The Internshi$ Re$!rt " Tazizur Rahman Title as

7Functi!ns !" F!rei%n 9chan%e !" amuna Ban) 2imited B2/

Is a$$r!(ed and acce$ted in 5ualit& "!rm.

.d/ ,bu0 1ashem Assistant r!"ess!r  De$artment !" Mana%ement In"!rmati!n #&stems 'ni(ersit& !" Dha)a

,ckno40edgement #uccess"ul c!m$leti!n !" an& 3!r) needs ins$irati!n+ %uidance+ and "inancial and l!%ical hel$ "r!m !thers. M& stud& is n!t behind this theme. In $re$arin% this re$!rt+ di""erent $ers!ns ha(e etended their hel$in% hands t! me. It 3!uld ha(e n!t been $!ssible "!r me t! $re$are this re$!rt

3ith!ut their hel$. I am (er& much "!rtunate t! %et the sincere %uidance and su$er(isi!n "r!m a number e$erienced $ers!ns.

First !" all+ I 3!uld li)e t! e$ress m& indebtedness and dee$ sense !" %ratitude t! m& h!n!rable su$er(is!r Asstt. r!"ess!r Md.Abul Kashem+ De$artment !" Mana%ement In"!rmati!n #&stems+ 'ni(ersit& !" Dha)a+ 3h!se sch!lastic su$er(isi!n+ )ind and 3h!le hearted %uidance+ 3arm ad(ice and enc!ura%ement ha(e enabled me t! $re$are this re$!rt.

I am indebted t! The #eni!r Assistant ice resident and Mana%er Md. Masudur Rahman !"  M!ti4heel Branch !" amuna Ban) 2imited hel$ t! d! m& internshi$. I als! li)e t! than) all !""icers !" M!ti4heel Branch "!r %i(in% me su%%esti!ns and "acilitatin% m& internshi$ re$!rt.

I 3!uld li)e t! c!n(e& m& than)s t! all !ther !""icers "!r their (aluable su%%esti!ns and c!ntributi!ns that ha(e hel$ed me much in $re$arin% this re$!rt.

I am %rate"ul s$eciall&+ 3ith #um!n Kumer+ Mahbubur Rahman+ Md. Anisur Rahman 3h! are hel$ed me t! $re$are this re$!rt b& b & $r!(idin% necessar& data and in"!rmati!n.

.;;;;;;;;;; Tazizur Rahman BBA r!%rams 1th batch/ R!ll: 01-18  De$artment !" Mana%ement In"!rmati!n #&stems 'ni(ersit& !" Dha)a

Executi2e Summar At $resent ar!und <0 $ri(ate =!mmercial Ban)s are !$eratin% in Ban%ladesh. amuna Ban)  2imited is !ne !" the leadin% third-%enerati!n ban)s in Ban%ladesh. amuna Ban) 2imited be%an its 4!urne& !n >rd une ,001 under the c!m$anies Act+ 1**?. amuna Ban) 2imited c!ncludes all t&$es !" c!mmercial ban)in% acti(ities. The c!re business !" the ban) c!m$rises !" 3!r)in% ca$ital "inance+ $r!4ect "inance+ de$!sit ban)in%+ im$!rt+ e$!rt and c!r$!rate "inance. The ban)  is als! renderin% $ers!nal c!nsumer/ credit+ ser(ices related t! l!cal and "!rei%n remittances. The ban)@s strate%& is t! %raduall& c!(er the t!tal arena !" ban)in%.

amuna Ban) 2imited is hi%hl& ca$italized ne3 %enerati!n Ban) 3ith an Auth!rized =a$ital and aid- u$ =a$ital !" T) 1<00.00 milli!n and T) >*0.00 milli!n res$ecti(el&. =urrentl& the Ban)  has  branches. M!re branches are $lanned t! be !$ened s!!n.

F!rei%n 9chan%e de$artment !$erates the im$!rts and e$!rts secti!n. It in"!rms the cust!mer  h!3 t! !$en 2C= "!r e$!rtin% and im$!rtin% %!!ds and $r!(ide di""erent t&$es !" 2C=+ Im$!rt+ and 9$!rt F!rm t! the cust!mer. ith the aim !" $r!(idin% e""icient and reliable remittance "acilit& thr!u%h ban)in% channel t! n!nresident Ban%ladeshi+ B2 is al3a&s tr&in% t! increase its remittance business all !(er the 3!rld. B2 is tr&in% t! ma)e a br!ad based remittance arran%ement 3ith (ari!us re$uted echan%e h!uses. Eeneral ban)in% de$artment $er"!rms the c!re "uncti!n !" ban) !$erates the da& t! da& transacti!n. It deals 3ith Acc!unt !$enin% secti!n+ =hec) =learin%+ =ash+ Remittance and acc!unt secti!n. =redit de$artment !" this ban) handles the 2ease items+ lease $eri!d+ 2ease de$!sit+ =redit $!lic& and strate%ies etc. It in"!rms the cust!mer ab!ut its $r!cedures !"  sancti!nin% credit and !thers. amuna Ban) 2imited has a str!n% mana%ement c!nsistin% !" a number !" e$erienced and s)ill !""icials. A %r!u$ !" de(!ted and 3ell- trained em$l!&ees and 3!r)in% hard t! render the best ser(ice t! the clients. The unattracti(e salar& structure !" the ban) has been a ma4!r $r!blem "!r  B2 thr!u%h!ut these &ears. 2imited 3!r) "!rce and lac) !" mar)etin% acti(ities ha(e als! ham$ered the !$erati!ns !" B2.

I" the mana%ement !" B2 can !(erc!me the dra3bac)s and c!me- u$ 3ith e""ecti(e mar)etin% and "inancial strate%ies+ amuna Ban) 2imited 3ill s!!n turn int! a leadin% ri(ate =!mmercial Ban) in Ban%ladesh.

+hapter'! Introduction

'/' Rationa0e of the Stud

As an indis$ensable $art !" BBA $r!%ram+ De$artment !" Mana%ement In"!rmati!n #&stems+ 'ni(ersit& !" Dha)a+ all the students ha(e t! under%! an internshi$ $r!%ram !" three m!nths durati!n in an& !r%anizati!n 3ith a (ie3 t! ac5uirin% $ractical )n!3led%e. The!retical Kn!3led%e is n!t en!u%h "!r a business student. There is a %a$ bet3een the the!retical )n!3led%e and $ractical )n!3led%e. ur internshi$ $r!%ram has been launched mainl& t! brid%e the %a$. 'nder this $r!%ram the students are re5uired t! 3rite re$!rt based !n !bser(ati!n and e$eriences durin% the c!urse !" 3!r). I 3as assi%ned t! amuna Ban) 2imited at M!ti4heel Branch t! c!m$lete the $r!%ram. This re$!rt is an !utc!me !" a stud& !n 7Functi!ns !" F!rei%n 9chan%e !" a =!mmercial Ban) 2imited. I 3as r!tated m!re !r less all the des)s !" B2 at M!ti4heel Branch t! learn their da& t! da& acti(ities.  amuna Ban) 2imited is the third %enerati!n mar)et leader in ban)in% sect!r in Ban%ladesh. The c!m$an& !""ers students the $er"ect !$$!rtunit& t! %ain !n-the-4!b e$erience b& su$$!rtin% and %uidin% them durin% their internshi$ $r!%ram in man& business areas. A"ter all the& )n!3 that t!da&@s students can be [email protected] m!st e""icient em$l!&ees. Thr!u%h internshi$ students  bec!me a3are !" !r%anizati!nal culture and learn h!3 t! sh!3 $r!"essi!nal ecellence t! a %reat etent. This learnin% hel$s them 3hen the& "inall& enter int! $ractical "ield.

'/5 Ob#ecti2es of the stud BBA $r!%ram is desi%ned t! $r!duce ban)in% eecuti(es 3h! are ca$able t! handle ,1st centur& ban)in%. #!+ as a student !" this $r!%ram+ 3e must ha(e t! )n!3 3hat is ha$$enin% in $ractice. #! !ne ma& "eel di""icult& i" he d!es n!t )n!3 3hat is ha$$enin% in ban). T! eradicate this sh!rtc!min%+ e(er& student !" the $r!%ram is $laced in ban)s a"ter the c!m$leti!n !" the!r&. M!st $recisel& 3e can identi"& the !b4ecti(es !" this re$!rt as "!ll!3s: o

T! a$$l& the!retical )n!3led%e in the $ractical "ield.


T! !bser(e the "uncti!ns !" %eneral ban)in% secti!n.


T! ha(e e$!sure t! the "uncti!ns !" credit secti!n.


T! ha(e e$!sure t! the "uncti!ns !" "!rei%n echan%e secti!n.


T! !bser(e the 3!r)in% en(ir!nment in c!mmercial ban).


T! stud& the eistin% !(erall ban)er cust!mer relati!nshi$.


Findin% "!rmal channels.


Anal&sis the trend !" "!rei%n remittance thr!u%h "!rmal channel.


M!ne& launderin% acti(ities.


r!blems !" in"!rmal channels.


Im$!rtance !" "!rmal channels.


Findin% the 3a&s t! increase "!rei%n remittance in Ban%ladesh.

'/6 Research .ethodo0og The meth!d!l!%& !" this re$!rt is t!tall& di""erent "r!m man& re$!rts. I ha(e em$hasized !n the  $ractical !bser(ati!n. Alm!st the entire c!nsists !" m& $ractical !bser(ati!n. hile $re$arin% the re$!rt+ I ha(e ta)en "r!m t3! s!urces:,rea of Stud!

M& $r!4ect 3as Ban)in% Acti(ities !" Eeneral+ F!rei%n Trade  =redit De$artment !" AM'GA Ban) 2imited 3ith #$ecial Re"erence t! M!ti4heel Branch.

7rimar Sources! rimar& s!urces include inter(ie3s and c!n(ersati!n 3ith !""icers and eecuti(es !" the ban) !"  di""erent di(isi!ns and de$artment.

Secondar Sources! #ec!ndar& s!urces !" in"!rmati!n include annual re$!rt+ internet+ %eneral re$!rt+ in(estment manual+ %eneral ban)in% manual+ "!rei%n echan%e manual+ Ban)in% related B!!)s+ selected  b!!)s 4!urnals and !ther $ublicati!n etc.

'/8 Organi9ation of the Report

The se5uence in 3hich the internshi$ re$!rt materials are arran%ed and b!und 4ust as "!ll!3s: 1. =!(er a%e  Title a%e ,. 2etter !" #ubmissi!n ,. Declarati!n >. #u$er([email protected] =erti"icati!n ?. Ac)n!3led%ement

. 9ecuti(e #ummer& . Table !" =!ntents . 2ist !" Table 8. 2ist !" Fi%ures 10. =ha$ters 11. Re"erences 1,. A$$endices

'/: Limitation of the Stud There 3ere s!me $r!blems 3hile I d!in% internshi$. A 3h!lehearted e""!rt 3as a$$lied t! c!nduct the internshi$ and t! brin% a reliable and "ruit"ul result. In s$ite !" ha(in% the 3h!lehearted e""!rt+ there eit s!me limitati!ns+ 3hich acted as a barrier t! c!nduct the $r!%ram. The limitati!ns 3ere:a. #!metimes I 3as assi%ned t! d! s!me 4!bs 3ith!ut e$lainin% 3h& this 3!r) is t! be d!ne. This situati!n has created a l!t !" $r!blems t! understand 3h& a s$eci"ic "uncti!n is  bein% $er"!rmed.

 b. An!ther $r!blem is c!ncerned 3ith data c!llecti!n. B2 starts "r!m 1*** + s! there are sh!rta%e !" su""icient data "!r c!m$arin%. M!re!(er+ the ban) has su$$lied me the annual re$!rt !nl& "!r !ne &ear. c. An!ther $r!blem is time c!nstraint. ? da&s are n!t su""icient time t! $re$are a c!m$lete internshi$ re$!rt.

+hapter5! *escription of the Organi9ation

5/' ,bout the Bank 

amuna Ban) 2imited B2/ is a Ban)in% =!m$an& re%istered under the =!m$anies Act+ 1**? 3ith its Head ""ice at rinters Buildin% ,nd  8th Fl!!r/+ + Ra4u) A(enue+ Dha)a-1000. The Ban) started its !$erati!n "r!m >rd une ,001.

amuna Ban) 2imited is a hi%hl& ca$italized ne3 %enerati!n Ban) 3ith an Auth!rized =a$ital and aid-u$ =a$ital !" T).1<00.00 milli!n and T).>*0.00 milli!n res$ecti(el&. =urrentl& the Ban) has 0 branches+ > #M9 branches  1 #M9 center. The Ban) underta)es all t&$es !" ban)in% transacti!ns t! su$$!rt the de(el!$ment !" trade and c!mmerce !" the c!untr&. B2s ser(ices are als! a(ailable "!r the entre$reneurs t! set u$ ne3 (entures and BMR9 !" industrial units. amuna Ban) 2td.+ the !nl& Ben%ali named ne3 %enerati!n $ri(ate c!mmercial Ban)


established b& a %r!u$ !" 3innin% l!cal entre$reneurs c!ncei(in% an idea !" creatin% a m!del  ban)in% instituti!n 3ith di""erent !utl!!) t! !""er the (alued cust!mers+ a c!m$rehensi(e ran%e !" "inancial ser(ices and inn!(ati(e $r!ducts "!r sustainable mutual %r!3th and $r!s$erit&. The s$!ns!rs are re$uted $ers!nalities in the "ield !" trade+ c!mmerce and industries. The Ban) is bein% mana%ed and !$erated b& a %r!u$ !" hi%hl& educated and $r!"essi!nal team 3ith di(ersi"ied e$erience in "inance and ban)in%. The Mana%ement !" the ban) c!nstantl& "!cuses !n understandin% and antici$atin% [email protected] needs. The scenari! !" ban)in% business is chan%in% da& b& da&+ s! the ban)s res$!nsibilit& is t! de(ice strate%& and ne3 $r!ducts t! c!$e 3ith the chan%in% en(ir!nment. amuna Ban) 2td. has alread& achie(ed tremend!us $r!%ress 3ithin !nl& t3! &ears. The ban) has alread& ran)ed as !ne !" the 5ualit& ser(ice $r!(iders  is )n!3n "!r its re$utati!n. amuna Ban) !""ers di""erent t&$es !" =!r$!rate and ers!nal Ban)in% #er(ices in(!l(in% all se%ments !" the s!ciet& 3ithin the $ur(ie3 !" rules and re%ulati!ns laid d!3n b& the =entral Ban) and !ther re%ulat!r& auth!rities.

5/5 Board of *irectors +hairman

1 Al-Ha4 Md. Rezaul Karim Ansari ;ice +hairman

,. Eazi E!lam Murt!za *irectors

>. Al-Ha4 M. A. Kha&er  ?. 9n%r. Md. Ati5ur Rahman .9n%r. A.K.M M!sharra" Hussain <. Fazlur Rahman

. E!lam Dasta%ir Eazi Bir r!ti)  8. A2-Ha4 Gur M!hmmed *. Md. Ta4ul Islam 10. #a)ha3at Abu Khair M!hammad 11. Md. Belel H!ssain 1,. Md. #ira4ul Islam ar!sha 1>. Md. M!hmadul H!5ue 1?. Farhad Ahmed A)and 1.#haheen Mahmud 1<.Kanut!sh Ma4umder  1.Md. Ismail H!ssain #ira4 18.A.#.M Abdul HalimInde$endent Dirtect!r/ Sponsors

Mr. Md. Irshad Karim .anaging *irector < +EO

Md. M!ti!r Rahman

5/6 JBL3s ;ision= .ission < +orporate Strateg

;ision T ob ec o me a L ea di n g Ba nk i n gI n s t i t u t i o nb yp l a y i n ga s i gni fi c antr ol ei nt he de v el opmentoft hec ount r y .

.ission The Ban) is c!mmitted t! satis"& di(erse needs !" its cust!mers thr!u%h an arra& !" r!ducts at a c!m$etiti(e $rice b& usin% state !" the art techn!l!%& and $r!(idin% timel& ser(ice s! that a suitable %r!3th+ reas!nable return and c!ntributi!n t! the de(el!$ment !" the c!untr& can be ensured 3ith a m!ti(ated and $r!"essi!nal 3!r)-"!rce.

+orporate Strateg 

9m$l!&ees !" B2 share certain c!mm!n (alues+ 3hich hel$s t! create a B2 =ulture.

The clients c!me "irst

#earch "!r $r!"essi!nal ecellence.

$enness t! ne3 ideas and ne3 meth!ds t! enc!ura%e creati(it&.

Juic) decisi!n ma)in%

Fleibilit& and $r!m$t res$!nse

A sense !" $r!"essi!nal ethics

5/8 Strategies 

T! mana%e and !$erate the Ban) in the m!st e""icient manner t! enhance "inancial  $er"!rmance and t! c!ntr!l c!st !" "und

T! stri(e "!r cust!mer satis"acti!n thr!u%h 5ualit& c!ntr!l and deli(er& !" timel& ser(ices

T! identi"& cust!mers credit and !ther ban)in% needs and m!nit!r their   $erce$ti!n t!3ards !ur $er"!rmance in meetin% th!se re5uirements.

T! re(ie3 and u$date $!licies+ $r!cedures and $ractices t! enhance the abilit& t! etend better ser(ice t! cust!mers.

T! train and de(el!$ all em$l!&ees and $r!(ide them ade5uate res!urces s! that cust!mers needs can be reas!nabl& addressed.

T! $r!m!te !r%anizati!nal e""ecti(eness b& !$enl& c!mmunicatin% c!m$an&  $lans+ $!licies+ $ractices and $r!cedures t! em$l!&ees in a timel& "ashi!n

T! culti(ate a 3!r)in% en(ir!nment that "!sters $!siti(e m!ti(ati!n "!r im$r!(ed  $er"!rmance

T! di(ersi"& $!rt"!li! b!th in the retail and 3h!lesale mar)et

T! increase direct c!ntact 3ith cust!mers in ! rder t! culti(ate a cl!ser relati!nshi$  bet3een the ban) and its cust!mers.

5/: Ob#ecti2es of Jamuna Bank Limited 

T! earn and maintain =AM92 Ratin% #tr!n%

T! establish relati!nshi$ ban)in% and im$r!(e ser(ice 5ualit& thr!u%h de(el!$ment !"  #trate%ic Mar)etin% lans.

T! remain !ne !" the best ban)s in Ban%ladesh in terms !" $r!"itabilit& and assets 5ualit&.

T! intr!duce "ull& aut!mated s&stems thr!u%h inte%rati!n !" in"!rmati!n techn!l!%&.

T! ensure an ade5uate rate !" return !n in(estment

T! )ee$ ris) $!siti!n at an acce$table ran%e includin% an& !"" balance sheet ris)/

T! maintain ade5uate li5uidit& t! meet maturin% !bli%ati!ns and c!mmitments.

T! maintain a health& %r!3th !" business 3ith desired ima%e.

T! maintain ade5uate c!ntr!l s&stems and trans$arenc& in $r!cedures.

T! de(el!$ and retain a 5ualit& 3!r)-"!rce thr!u%h an e""ecti(e human Res!urces Mana%ement #&stem.

T! ensure !$timum utilizati!n !" all a(ailable res!urces

T! $ursue an e""ecti(e s&stem !" mana%ement b& ensurin% c!m$liance t! ethical n!rms+ trans$arenc& and acc!untabilit& at all le(els.

5/> Financia0 7erformance of Jamuna Bank Limited 5/>/'/ 7ROFI"

In ,00* AM'GA Ban) 2imited has earned an !$eratin% $r!"it !" T) 1*1?., milli!n as a%ainst T) 10?0.,0 milli!n !" ,008. The $r!"it a"ter taati!n  $r!(isi!n st!!d at T) *,>+1,>+,0 in ,00* a%ainst T) ?*+?>+*,> !" ,008.

0 2009

$eratin% r!"it Fi%ure-01

Operating Proft

5/>/5/ *E7OSI" ,-* *E7OSI" .I?!

In the &ear ,00*+ due t! man& uncertainties !n ec!n!mic "r!nt+ si%ni"icant $ressures !n ec!n! mic  $er"!rmance and am!n% !thers the ad(erse im$act !" %l!bal ec!n!mic crisis+ declinin% trend in interest rates+ B2 3as able t! increase its cust!mers c!n"idence and m!bilized a t!tal de$!sits !"  ta)a >,+1+,8+18 a%ainst t!tal de$!sit !" ta)a [email protected]=6&@=A6>='8'.

T o t a l

D e p o s i t



5/>/6/ +,7I",L S"R+"RE!

AM'GA Ban) 2td c!mmenced its !$erati!n !n une 0>+ ,001 3ith the auth!rized ca$ital !"  T). 1<00.00 milli!n !rdinar& shares !" T) 100 each and the ban) started !$erati!n 3ith a s!und ca$ital base !" T). >*0.00 milli!n. In ,00* the $aid u$ ca$ital !" the ban) st!!d at ta)a 1<,188,00. The 5uantum and brea)-u$ !" ca$ital !" the ban) are as "!ll!3s: Am!unt Ta)a/ articulars "ier I +apita0

,00* 6&:8'868A8/&&

,008 5'6'&5&5A'/&&

aid u$ =a$ital #tatut!r& Reser(e

1<,188,00.00 81<?*?*0.00

1>1>,<,00.00 0>8>*?>>.01

Retained 9arnin%s









#hare remium Am!unt "ier II +apita0

Eeneral r!(isi!n Maintained A%ainst 'nclassi"ied 2!an  Ad(ances Eeneral r!(isi!n Maintained A%ainst "" 

Operating Proft

Balance 9$!sure





T!tal ca$ital Tier I Tier II / Table- 01

5/>/8/ LO,-S ,-* ,*;,-+ES

In F6,00* a"ter the ad(erse im$act !" ec!n!mic crisis declinin% trend in interest rate B2+ c!ntinued t! e$l!re its area !" credit and 3as success"ul t! build u$ a sizable 5uantum !" credit 3hich st!!d at ta)e 32287.66 as !n >1.1,.,00*+ re%istered an !(erall increase b& >.?8 $ercent !(er ,008. The t!tal credit as !n >1st December ,008 3as ta)a 21036.86. .

Loan & Advances 40000 30000

Loan & Advances

20000 10000 0 2009 2008 2007 2006 2005


5/>/: "ota0 ,ssets

A t!tal assets st!!d at ta)a ?8>0.* in ,00* 3hich is >.*8 L hi%her than that !" ,008.The si%ni"icant increase in assets 3as achie(ed due t! rise in l!ans and ad(ances+ in(estments+ m!ne& at call and sh!rt n!tice+ cash and balances 3ith !ther bands and "inancial instituti!n.

Total Asset 60000  ,oa- Asse

40000 20000 0 2009






+ha ter6! Literature Re2ie4

Foreign Exchange Ban)s $la& a (er& im$!rtant r!le in e""ectin% "!rei%n echan%e transacti!ns in a c!untr&. Mainl& transacti!ns 3ith !(erseas c!untries are res$ect !" im$!rts e$!rts and "!rei%n remittance c!me under his $ur(ie3 !" "!rei%n echan%e transacti!ns. Ban)s are the (ital sect!r b& 3hich such transacti!ns are e""ectedCsettle. =entral Ban) rec!rds all s!rts !" "!rei%n echan%e transacti!n e""ected b& the Ban)s and !ther auth!rized 5uarters are t! be re$!rted re%ularl& (iz. dail&+ "!rtni%htl&+ m!nthl& 5uarterl&+ &earl& etc/ t! Ban%ladesh Ban). In the B2+ rinci$al branch Foreign Exchange "!rei%n echan%e de$artment $la&s a (ital r!le t! earn the ban)s maimum $r!"it. This de$artment is classi"ied acc!rdin% t! their acti(ities. Expor

ov. 'ecor


#ac$ o #ac$


(rivae 'ecor

)*+ard %e"iance

!n+ard %e"iance

Fig! Organi9ation Structure of Foreign Exchange

B2 "!rei%n echan%e de$artment has "!ur sub-secti!ns. Im$!rt secti!n+ e$!rt secti!n. ne secti!n "!r bac) t! bac) and the "!urth !ne is "!rei%n remittance secti!n. An AEM is the char%e !" the im$!rt and "!rei%n remittance secti!n an!ther AEM is in the char%e !" the e$!rt secti!n. A"ter c!m$letin% the Eeneral ban)in% I ha(e $laced in the im$!rt secti!n. A"ter c!m$letin% the im$!rt secti!n+ I 3ent t! the e$!rt and then "!rei%n remittance de$artment. I had started m& 3!r) at im$!rt de$artment "r!m the issuin% !" '= des). I ha(e tried t! $ut m& e$erience in m& diar&. M& !bser(ati!ns in this de$artment are %i(en bel!3.

In Foreign Exchange di2ision fo00o4 some transaction 

F!rei%n 9chan%e Re%ulati!n Act 1*?.  Im$!rt and 9$!rt =!ntr!l Act 1*0 

=ust!ms Act 1*<*

6/'/ Import hile d!in% e$!rt-im$!rt !r !(erseas business+ s!me di""iculties ma& arise. Because the $ers!n 3h! bu&s the %!!ds im$!rter/ and 3h! sells the %!!ds e$!rter/ is !" di""erent =!untries. #! there ma& rise $r!blems. M!re!(er+ the transacti!ns !ccur thr!u%h di""erent currencies. #! "!r 

minimizin% the $r!blem !" "luctuati!n !" the (alue !" di""erent currencies+ Internati!nal =hamber  !" =!mmerce I==/ established s!me re%ulati!n. 3hich ha(e t! be "!ll!3ed thr!u%h !ut the 3!rld. These re%ulati!ns are called '=D= 'ni"!rm =ust!ms  ractice "!r D!cumentar& =redit/. Acc!rdin% t! '=D=+ im$!rter must !$en a '= "!r im$!rtin% an&thin% "r!m abr!ad. 2etter !" =redit is a %uarantee %i(en b& the issuin% ban) t! the ad(isin% ban) in "a(!r !" the e$!rter that in case !" "ailure !" %i(in% $a&ment b& the im$!rter+ issuin% ban) 3ill $a& the m!ne& t! the ad(isin% ban).

Tpes o' importer


Private $ector

"ommercial (#inished Products!

Industrial (raw Materials, machineries etc!

Actual %sers

#ig Tpes o' Importers "ommercial   #!me client im$!rts (ari!us t&$es !" %!!ds "!r c!mmercial $ur$!ses mainl& "!r 

l!cal c!nsum$ti!n i.e "!r direct c!nsumers and industries.

Industrial  #!me industrialist im$!rt ra3 materials and !ther indirect materials "!r their  !3n industrial c!nsum$ti!n as 3ell as t! su$$l& there!" !ther industries.

Actual users  This t&$e !" cust!mers im$!rt (ari!us t&$es !" %!!ds "!r their !3n c!nsum$ti!n.

6/5/ Banks In2o02ed In Foreign Exchange "ransactions! hile im$!rtin%+ im$!rter at "irst 3ill !$en a '= "r!m his c!untr& ban). This ban) is called issuin% ban). Issuin% ban) 3ill transact re%ardin% this 3ith an!ther ban) that is established at the e$!rters c!untr&. This ban) is called ad(isin% ban ). A"ter recei(in% the '= "r!m the issuin% ban)+ ad(isin% ban) 3ill call the e$!rter. 9$!rter 3ill c!llect it and ma& %i(e it t! the ban) in 3hich he maintains his transacti!ns. This ban) is called ne%!tiatin% ban). Ge%!tiatin% ban) 3ilt c!llect the m!ne& "r!m an!ther ban) that is called reimbursin% ban). hile $a&in% the '= m!ne&+ issuin% ban) and ne%!tiatin% ban) 3ill select an!ther ban) that is acce$table t! the b!th ban)s. This ban) is called reimbursin% ban). Issuin% ban) 3ill $a& the m!ne& t! the reimbursin% ban). Ge%!tiatin% ban) 3ill c!llect it "r!m the reimbursin% ban). Reimbursin% ban) is a ban ) !" e$!rters c!untr&.

6/6/ 7rocedure of Opening LC+! 2C= is a %uarantee %i(en b& the issuin% ban) !n behal" !" the bu&er t! the ad(isin% ban) ma)in% the seller as bene"iciar&. The $r!cedure !" !$enin% a 2C= is i.

A$$licant has t! a$$l& "!r !$enin% 2C= b& a $rescribed "!rm.


A$$licant has t! submit the 2etter !" Indent !r 2etter !" r!"!rma In(!ice.

Letter of Indent!  Man& sellers ha(e their a%ent in sellers c!untr&. I" the c!ntract !" bu&in% is made bet3een the bu&ers and the a%ent !" the sellers then it is called 2etter !" Indent. . Letter of 7roforma In2oice : I" the c!ntract is made directl& bet3een the bu&ers and the sellers then it is called the 2etter !" r!"!rma In(!ice.


A$$licant has t! submit IR= Indent!rs Re%istrati!n =erti"icate/. It is a certi"icate

 bein% rene3ed e(er& &ear. This certi"icate is necessar& i" the c!ntract is made  bet3een the bu&ers and the a%ents !" the sellers. IR= is !" t3! t&$es - =M and IGD. =M is %i(en "!r c!mmerce $ur$!se and IGD is %i(en "!r industrial  $ur$!se. ii.

A$$licant has t! submit 2=AF 2etter !" =redit Auth!rizati!n F!rm/


A$$licant has t! submit insurance d!cument.


A$$licant has t! $re$are FRM-IM.


Recentl&+ there has been made a $r!(isi!n t! %i(e a certi"icate named TIG Ta a&ers Identi"icati!n Gumber/. Taati!n de$artment issues this certi"icate. .


Then a"ter $r!$er scrutin& ban) 3ill !$en a 2C=.

hile !$enin% 2C=+ im$!rter must )ee$ certain $ercent>%e !" the d!cument (alue in the ban) as mar%in.

6/8 ReDuirements for opening ,n LC+! T! !$en a 2C= the re5uirements !" an im$!rter are: a. He must ha(e an acc!unt in B2  b. He must ha(e im$!rters Re%istrati!n =erti"icate IR=/ c. Re$!rt !n $ast $er"!rmance 3ith !ther ban)+ B2 c!llects this re$!rt "!r Ban%ladesh Ban). d. =IB =redit In"!rmati!n Bureau/ re$!rt "!r Ban%ladesh Ban). e. A $r!$!sal a$$r!(ed b& the meetin% !" eecuti(e c!mmittee !" the ban)+ it is necessar& !nl& 3hen the 2C= am!unt is small !r there is n! limit. ". I" the 2C= am!unt is lar%e !r there is a limit+ then an a$$r!(al "!rm Ban%ladesh Ban) is needed. 'suall& this a$$r!(al is needed "!r am!unt m!re than !ne cr!re.

6/:/ Foreign Exchange .echanism T! ha(e an im$!rt 2C= limit+ an im$!rter submits an a$$licati!n t! the De$artment !" A%rani Ban) "urnishin% the "!ll!3in% in"!rmati!n: 1. Full $articulars !" ban) acc!unt ,.

Gature !" business

>. Re5uired am!unt !" limit ?. a&ment terms and c!nditi!ns . E!!ds t! be im$!rted <. ""ered securit& . Re$a&ment schedule

A credit ""icer scrutinizes this a$$licati!n and acc!rdin%l& $re$ares a $r!$!sal =2/ and "!r3ards it t! the Head ""ice =redit =!mmittee H==/. The =! mmittee+ i" satis"ied+ sancti!ns the limit and returns t! the branch. Thus the im$!rter is entitled "!r the limit.

6/>/ "he LC+ ,pp0ication! B2 $r!(ides a $rinted "!rm "!r !$enin% !" 2C= t! the im$!rter. This "!rm is )n!3n as 2etter !"  =redit A$$licati!n "!rm. A s$ecial adhesi(e stam$ is a""ied !n the "!rm. hile !$enin%+ the stam$ is cancelled. 'suall& the im$!rter e$resses his desire t! !$en the 2C= 5u!tin% the am!unt !" mar%in in $ercenta%e. The im$!rter %i(es the "!ll!3in% in"!rmati!n+ 1. Full name and address !" the im$!rter. ,. Full name and address !" the Bene"iciar&. . >. Dra"t am!unt. ?. A(ailabilit& !" the credit b& si%ht $a&ment acce$tanceN  Ge%!tiati!n de"erred $a&ment. #. Time bar 3ithin 3hich the d!cuments sh!uld be $resented. <. #ales t&$e =IFCFBC=F/ . Brie" #$eci"icati!n !" c!mm!dities+ $rice+ and 5ua ntit&+ indent n!. etc. 8. =!untr& !" !ri%in. *. Ban%ladesh Ban) Re%istrati!n n!. 10. Im$!rt 2icense I 2=AF n!. 11. IR= n!. 1,. Acc!unt n!. 1>. D!cuments re5uired. 1?. lnsurance c!(er n!te C !lic& n!.+ date+ am!unt. I . Game and address !" Insurance =!m$an&.

1<. hether the $artial shi$ment is all!3ed !r n!t. 1. hether the Transshi$ment is all!3ed !r n!t. 18. 2ast date !" shi$ment. 1*.1ast date !" ne%!tiati!n. 20. ther terms and c!nditi!ns i" an&. ,1.hether the c!n"irmati!n !" the credit is re5uested b& the bene"iciar& !r n!t.

"he abo2e information are gi2en a0ong 4ith the fo00o4ing documents

1. r!"!rma In(!ice statin% descri$ti!n !" the %!!ds includin% 5uantit&+ unit $rice etc. ,. The insurance c!(ers n!te+ issuin% c!m$an & and the insurance number. >. F!ur set !" IM F!rmO

6/@/ "he Letter Of +redit ,uthori9ation (L+,) Form! The 2etter !" credit auth!rizati!n 2=A/ "!rm c!ntains the "!ll!3in%s1. Game and address !" the Im$!rter. ,. IR= n!. and 6ear !" rene3al. >. Am!unt !" '= a$$lied "!r B!th in "i%ure and in 3!rd/. ?. Descri$ti!n !" items/ t! be im$!rted. . IT= Gumbers/C H# =!de. #tam$ and si%nature !" the Im$!rter 3ith seal.

6// FormI.7! The F!rm-IM c!ntains the "!ll!3in%s1. Game and address !" the Auth!rized Dealer. ,. Am!unt !" remittance t! be $ermitted i.e.+ '= am!unt/. >. 2=A "!rm number+ Date+ and alue in T). ?. Descri$ti!n !" %!!ds+ 5uantit&. . In(!ice (alue in F!rei%n =urrenc& i.e.+ UC am!unt/. <. =!untr& !" ri%in. . !rt !" #hi$ment.

8. Game !" #teamerN Airline i.e.+ B& R!adN B& #hi$N B& Air/. *. !rt !" Im$!rtati!n.  

Indentors name and address. 10. [email protected] re%istrati!n number 3ith ==I  9 and Ban%ladesh Ban). 11. Full name and address !" the A$$licant. 1,. Re%istrati!n number !" the A$$licant 3ith ==I  9. 1>. T&$e !" l=AF.

6/A/ Securiti9ation of LC+ ,pp0ication! The B2 ""icial scrutinizes the a$$licati!n in the "!ll!3in% manner+ '/ The terms and c!nditi!ns !" the 2C= must be c!m$lied 3ith '=D= 00. 5/ 9chan%e =!ntr!l  Im$!rt Trade Re%ulati!n. 6/ 9li%ibilit& !" the %!!ds t! be im$!rted. 8/ The 2C= must n!t be !$ened in "a(!r !" the im$!rter. :/ Radi!acti(it& re$!rt in case !" "!!d item. >/ #ur(e& re$!rt !r certi"icate in case !" !ld machiner& @/ =arr&in% (essel is n!t !" Israel !r !" #erbia- M!ntene%r! / =erti"icate declarin% that the item is in !$erati!n n!t m!re than  &ears in case !" car.

6/'&/ 7recautions taken b officer before issuing 2C= ! A"ter submissi!n !" d!cumentar& 2etter !" =redit a$$licati!n "!rm+ the c!ncerned !""icer  scrutinizes the terms and c!nditi!ns that menti!ned in a$$licati!n. He must chec) the "!ll!3in% thin%s '/ 1. hether the terms and c!nditi!ns !" 2C= a$$licati!n are c!nsistent 3ith 9chan%e =!ntr!l and Im$!rt Trade re%ulati!n+ '=D=-. 5/ 2C= must n!t be !$ened in "a(!r !" the im$!rter !r his a%ent 6/ 2C= must be si%ned b& the im$!rter a%reein% all terms and c!nditi!ns

a. menti!ned in the a$$licati!n 8/ Indentin% re%istrati!n number  :/ hether IM "!rm dull& "illed and si%ned

>/ alidit& !" IR= @/ Insurance c!(er n!te 3ith date !" shi$ment / The H# c!de !" the %!!ds A/ The balance !" the acc!unts !" the im$!rter  '&/ The %!!ds are n!t "r!m Israel and (essels t! be used is n!t !" Israel ''/ The issuin% !""icer 3ill tr& t! )ee$ as much mar%in as $!ssible

6/''/ ,mendment of Letter Of +redit! arties in(!l(ed in a 2C= ,  $articularl& the seller and the bu&er cann!t al3a&s satis"& the terms and c!nditi!ns in "ull as e$ected due t! s!me !b(i!us and %enuine reas!ns. In such a situati!n+ the credit sh!uld be amended. B2 transmits the amendment b& tested tele t! the ad(isin%  ban) .In case !" re(!cable credit+ it can be amended !r cancelled b& the issuin% ban) at an& m!ment and 3ith!ut $ri!r n!tice t! the bene"iciar&. But in case !" irre(!cable letter !" credit+ it can neither be amended n!r cancelled 3ith!ut the a%reement !" the issuin% ban)+ the c!n"irmin%  ban) i" an&/ and the bene"iciar&. I" the 2C= is amended+ ser(ice char%e and tele char%e is debited "r!m the $art& acc!unt acc!rdin%l&.

6/'5 ,dding +onfirmation! =!n"irmati!n is %i(en b& the Add c!n"irmin% Ban). An Add c!n"irmati!n letter c!ntains the "!ll!3in%s-1. 2C= G!.-,. 2C= am!unt->. Items t! be im$!rted ?. Game and address !" the A$$licant . Game and address !" the Bene"iciar&<. Ten!r-. Date !" shi$ment8. Date !" 9$ir&P  *. !rt !" 2!adin%10. !rt !" Dischar%eP  11. =har%es !n 3hich $art&/P  1,. Game !" the Ad(isin% Ban)P  1>. Game !" Reimbursin% Ban)-1?. Game !" =!n"irmin% Ban)P 

6/'6/ *ispatching the Import LC+! A"ter !$enin% !" im$!rt 2C=+ B2 $rinci$al branch dis$atches the 2C=. $rinci$al branch sends an !ri%inal c!$& !" the 2C= "!r ne%!tiatin% and a c!$& t! the ad(isin% ban) "!r ad(isin%. It als! sends reimbursin% ban) "!r reimbursement.

6/'8/ ,d2ising the import LC+! Ad(isin% a 2C= thr!u%h a ban) is a  proof !" a$$arent authenticit& !" the credit t! the sellerCbene"iciar&. The ad(isin% $r!cess !" a 2C= c!nsists !" "!r3ardin% the !ri%inal credit t! the  bene"iciar& t! 3h!m it is addressed. Be"!re "!r3ardin% the ad(isin% ban) has t! (eri"& the si%natures !" the !""icers !" the 2C= !$enin% ban) B2/+ and at the same time ensures that the terms and c!nditi!ns !" the 2C= are n!t in (i!lati!n !" the eistin% 9chan%e =!ntr!l Re%ulati!ns. In such act !" ad(isin%+ the ad(isin% ban) d!es n!t underta)e an& liabilit&.

6/':! Lodgment < Retirement Section! 2!d%ment means retirement !" "unds. I" the d!cuments recei(in% "r!m the ne%!tiatin% ban) B2  $rinci$al branch als! scrutinize the d!cuments. The !""icer care"ull& eamines the "!ll!3in%  $!ints: In2oice! '/ The in(!ice sh!uld c!ntain 5ualit& t 5uantit& t unit $rice+ t!tal (alue 5/ The number !" c!$ies sh!uld eactl& meet the re5uirement !" the credit 6/ The shi$$er must si%n all the c!$ies Bi00 of 0ading! '/ It must be dul& si%ned and end!rsed. 5/ It must state $a&ment !" "rei%ht. i" the in(!ice $rice is !n =F basis the bill !" ladin%

must be mar)ed QFrei%ht aidQ and "rei%ht is $a&able at destinati!n. QFrei%ht t!. a&Q is mar)ed !n BI2

+ertificate of Origin!

It sh!uld $r!(ide e(idence !" the %!!ds as s$eci"ied in the credit. it is issued b& the =hamber !"  =!mmerce !" bene"iciar&s c!untr&. Bi00 of Exchange! '/ Is the Bill !" 9chan%e dra3n in the lan%ua%e !" the credit 5/ Is the bill !" echan%e $r!$ert& $re$ared acc!rdin% t! the credit c!n diti!ns !n a si%ht !r

time basis/ and dra3n !n the s$eci"ied ban) 6/ Is it $r!$ert& dated and si%ned 8/ Is the am!unt in "i%ures c!rres$!nded eactl& 3ith the am!unt in 3!rd :/ D!es it c!ntain SI the $rescribed n!tati!ns and clauses

An& !ther d!cuments such as ei%ht and Measurement =erti"icate+ Insurance =erti"icate. ac)in% list etc. as sti$ulated in the credit must be eamined be"!re ne%!tiati!n. A"ter scrutin& !" these d!cuments+ i" there is an& discre$anc& in the d!cumentQ the !""icer 3ill  $r!m$tl& ad(ise the im$!rter and the ne%!tiatin% ban) and as)s them t! recti"& these discre$ancies. But i" there is n! discre$anc&. Then he 3ill $re$are s!me (!uchers.

6/'>/ 7ament 7rocedure of the Import *ocuments! This is the m!st sensiti(e tas) !" the Im$!rt De$artment. The ""icials ha(e t! be (er& much care"ul 3hile ma)in% $a&ment. This tas) c!nstitutes the "!ll!3in%:

A. Date !" $a&ment: 'suall& $a&ment is made 3ithin se(en da&s a"ter the d!cuments ha(e been recei(ed. I" the  $a&ment is bec!me de"erred+ the ne%!tiatin% ban) ma& claim interest "!r ma)in% dela&.

B. re$arin% sale mem!: A sale mem! is made at B.= rate t! the cust!mer. As the T.T  .D rate is $aid t! the ID+ the di""erence bet3een these t3! rates is echan%e tradin%. Finall&+ an Inter Branch 9chan%e Tradin% =redit Ad(ice is sent t! ID.

=. Re5uisiti!n "!r the "!rei%n currenc&: F!r arran%in% necessar& "und "!r $a&ment+ a re5uisiti!n is sent t! the Internati!nal De$artment. D. Transmissi!n !" tele: A tele is transmitted t! the c!rres$!ndent ban) ensurin% that $a&ment is bein% made.

6/'@ Export Section In the 9$!rt secti!n+ t3! t&$es !" 2C= s are !$ened-N 

Bac) t! Bac) 2C=

9$!rt 2C=

6/'A Back! "o Back LC+! A bac)-t!-bac) mechanism in(!l(es t3! se$arate 2C=s. ne is master e$!rt 2C= and an!ther is  bac)-t!-bac) L/C. !n the stren%th !" Master e$!rt 2C= Ban) issues Bac) t!-Bac) L/C. Bac)-t!-Bac) 2C= is c!mm!nl& )n!3n as Bu&in% 2C=. !n the c!ntrar&. Master 9$!rt 2C= is )n!3n as #ellin%.

6/5&Features of Back to Back LC+! 

Is an im$!rt 2C= t! $r!cedure %!!ds ra3 materials "!r "urther $r!cessin%.


Is !$ened based !n 9$!rt L/C.

Is a )ind !" 9$!rt Finance

9$!rt 2C= is at #i%ht but Bac)-t!-Bac) 2C= is at 'sance.

 G! mar%in is re5uired t! !$en Bac)-t!-Bac) 2C=.

6/5'/ +heck0ist to open Back to Back LC+!  

A$$licati!n is re%istered 3ith ==I  9 and has b!nded 3areh!use license. The Master 2C= has ade5uate (alidit& $eri!d and has n! de"ecti(e clause.

2C= (alue shall n!t eceed the admissible $ercenta%e !" net FB (alue !" relati(e Master 2C=.

'sance $eri!d 3ill be u$ t! 180 da&s. a$ers re5uired !$enin% Bac)-t!-Bac) 2C=:


Im$!rt Re%istrati!n =erti"icate  9$!rt Re%istrati!n =erti"icate. 2C= A$$licati!n  2=A "!rm.

Insurance !lic& a IM "!rm.

In additi!n t! ab!(e "!ll!3in% $a$ers are re5uired "!r Read&made Earments Industr&-

B!nded areh!use license.

Ju!ta all!cati!n letter "r!m 9B 3here a$$licable/

2etter !" disclaimer "r!m landl!rd i" rented $remises.

/ Steps to issue BacktoBack LC+! 

btain all re5uired $a$ers.

=hec) the credit limit.


re$are !""erin% sheet i" re%ular credit line is n!t a(ailable. a. Mar) lien !n the master 2CC.


Issue the L/C.

6/55 7ament under Back to Back LC+! a/ a&ment at maturit& !ut !" e$!rts $r!ceeds.  b/ In case !" e$!rt "ailure !r n!n-realizati!nCsh!rt realizati!n !" e$!rt $r!ceeds+ "!rced l!an i.e. A has t! be created in !rder settle the Bac)-t!-Bac) L/C  $a&ment.

6/56/ 7recautionar measures! a Inclusi!n the clause "!r re-#hi$ment Ins$ecti!n =erti"icate. a #hi$$in% %uarantee under n! circumstances. a/ Discre$ant d!cuments shall n!t be acce$ted. b) r!$er care re%ardin% amendments !" Master L/C.

"he f0o4 chart on BacktoBack L/C .echanism!

Bu&er '#A 2td. Instruct his ban) t! issue the 9$!rt 2l= in "a(!r !"  Ban%ladesh Earments ltd

B2 issues Bac)  t! Bac) 2C= and "!r3ards the same t! Tai3an Tetile 2td. thr!u%h a Tai3anese Ban) 

'#A ban) issues the L/C  and F!r3ards the same t! Bang0adesh through a Bank/

garments Bang0adeshi

I Ban%ladesh Earments 2td. #ubmits his 9$!rt 2C= 3ith a re5uest t! his ban)+ sa& B2 "!r lien !" the 9$!rt L/C  and t! issue Bac) t! Bac) 2C= in "a(!r !"  Tai3an Tetile 2td

Bac)-t!-Bac) 2C= is essentiall& a sel"-li5uidatin% transacti!n. 'suall& a Ban) issuin% Bac) t! Bac) 2C= has n! c!llateral !r c!m"!rt t! rel& u$!n+ ece$t the master 2C= . there"!re Ban)  !""icials c!ncerned+ sh!uld be "ull& a3are !" the inherent ris) in(!l(ed in this t&$e !" businesses and are ad(ised t! issue Bac) t! Bac) 2C= !nl& "!r the 3ell )n!3n cust!mer !" the Ban) and !"  und!ubted inte%rit&.

6/58 Reporting "o Bang0adesh Bank! At the end !" e(er& m!nth+ the re$!rtin% re%ardin% the "!ll!3in% in"!rmati!n is mandat!r&. A. Fillin% !" 9-,I-, schedule !" -1 cate%!r & 3hich c!(ers the entire m!nth Am!unt !" im$!rt+ cate%!r& !" %!!ds. =urrenc&+ c!untr& etc. B. Fillin% !" 9->C-> schedule "!r all char%es+ c!mmissi!n 3ith TIM "!rm. =. Dis$!sal !" IM "!rm+ 3hich includes+

'/ ri%inal IM is "!r3arded t! Ban%ladesh Ban) 3ith in(!ice and Indent. 6/ Du$licate IM is )e$t 3ith the Ban) al!n% 3ith the bill !" entry =erti"ied In(!ice. 8/ Tri$licate IM is )e$t 3ith the Ban) "!r !""ice rec!rd. :/ Juadru$licate is )e$t "!r submissi!n t! Ban%ladesh Ban) in case !" im$!rts 3here

d!cuments are retired.

6/5:/Export LC+ The !ther t&$e !" 2C= "acilit& !""ered b& B2 9$!rt 2C=. Ban%ladesh e$!rts a lar%e 5uantit& !"  %!!ds and ser(ices t! "!rei%n h!useh!lds. Read&made tetile %arments b!th )nitted and 3!(en/+  4ute+ 4ute-made $r!ducts+ "r!zen shrim$s+ tea are the main %!!ds that Ban%ladeshi e$!rters e$!rts t! "!rei%n c!untries. Earments sect!r is the lar%est sect!r that e$!rts the li!n share !"  the c!untr&s e$!rt. Ban%ladesh e$!rts m!st !" its read&made %arments $r!ducts t! '.#A and 9ur!$ean =!mmunit& 9=/ c!untries. 0Ban%ladesh e$!rts ab!ut ?0L !" its read&made %arments $r!ducts t! '.#A M!st !" the e$!rters 3h! e$!rts thr!u%h B2 are read&made %arment e$!rters. The& !$en e$!rt 2C=s here t! e$!rt their %!!ds+ 3hich the& !$en a%ainst the im$!rt '=s !$ened b& their "!rei%n im$!rters.

6/5>Forma0ities for Export LC+!

The e$!rt trade !" the c!untr& is re%ulated b& the Im$!rts and 9$!rts c!ntr!l/ Act+ 1*0. There are a number !" "!rmalities 3hich an e$!rter has t! "ul"ill be"!re and a"ter shi$ment !" %!!ds. These "!rmalities !r $r!cedures are enumerated as "!ll!3s.


9R=: The e$!rts "r!m Ban%ladesh are sub4ect t! e$!rt trade c!ntr!l eercised b& the Ministr& " =!mmerce thr!u%h =hie" =!ntr!ller !" Im$!rts and 9$!rts ==I  9/. G! e$!rter is all!3ed t! e$!rt an& c!mm!dit& $ermissible "!r e$!rt "r!m Ban%ladesh unless he is re%istered 3ith ==I  9 and h!lds (alid 9$!rt Re%istrati!n =erti"icate 9Re/. The 9R= is re5uired t! be rene3ed e(er& &ear. The 9R= number is t!  be inc!r$!rated !n 9 "!rms and !ther d!cuments c!nnected 3ith e$!rts.

5/ btainin% 9: A"ter ha(in% the re%istrati!n+ the e$!rter a$$lies t! B2 3ith the trade

license+ 9R= and the =erti"icate "r!m the c!ncerned+ E!(ernment r%anizati!n t! %etQ 9. I" the ban) is satis"ied+ an 9 is issued t! the e$!rter. An 9-F!rm c!ntains the "!ll!3in% $articulars+ a/ Game and address !" Auth!rized Dealer   b/ articulars !" the c!mm!dit& t! be e$!rted 3ith c!de c/ =!untr& !" destinati!n d/ !rt !" destinati!n e/ Juantit& "/ 2C= (alue in F!rei%n currenc& %/ Terms !" #ale h/ Game and address !" Im$!rterN =!nsi%nee i/ Bill !" 2adin%N Rail3a& Recei$tN Air3a& BillN Truc) Recei$tN !st arcel Recei$t n!. and date  4/ !rt !" #hi$mentN !st ""ice !" Dis$atch )/ 2and =ust!m !st l/ #hi$ment Date m/ Game !" the 9$!rter 3ith address n/ ==I  9s Re%istrati!n number and date !" the 9$!rter  !/ #ect!r ublic !r ri(ate/ under 3hich the 9$!rter "alls. 6/ #ecurin% the !rder: '$!n re%istrati!n+ the e$!rter ma& $r!ceed t! secure the e$!rt !rder.

This can be d!ne b& c!ntractin% the bu&ers directl& thr!u%h c!rres$!ndence.

8/ #i%nin% !" the c!ntract: hile ma)in% a c!ntract+ the "!ll!3in% $!ints are t!


menti!ned+ • • • • • •

Descri$ti!n !" the %!!ds. Juantit& !" the c!mm!dit& rice !" the c!mm!dit&. #hi$ment Insurance and mar)s Ins$ecti!n Arbitrati!n

The "!ll!3in%S $!ints are t! be l!!)ed "!r+ The terms !" the 2C= are in c!n"!rmit& 3ith th!se !" the c!ntract. The 2C= is an irre(!cable !ne+  $re"erabl& c!n"irmed b& the ad(isin% ban). The 2C= all!3s su""icient time "!r shi$ment and a reas!nable time "!r re%istrati!n. I" the e$!rter 3ants the 2C= t! be trans"erable+ di(isible and ad(isable+ he sh!uld ensure th!se sti$ulati!ns are s$eciall& menti!ned in the 2C=. .r!curin%- the materials: A"ter ma)in% the deal and !n ha(in% the 2C= !$ened in his "a(!r+ the net ste$ "!r the e$!rter is t! set ab!ut the tas) !" $r!curin% !r manu"acturin% the c!ntracted merchandise. <. Re%istrati!n !" sale: This is needed 3hen the items $r!$!sed t! be e$!rted are ra3 4ute and  4ute %!!ds. 8#hi$ment !" %!!ds: The "!ll!3in% are the d!cuments n!rmall& in(!l(ed at the sta%e !"  shi$ment+ i. ii. iii. i(. (. (i.

9 F!rm $h!t!c!$& !" re%istrati!n certi"icate $h!t!c!$& !" the c!ntract $h!t!c!$& !" the 2C= =ust!ms c!$& !" 9RF F!rm "!r shi$ment !" 4ute %!!ds and 9= F!rm "!r ra3 4ute. Frei%ht certi"icate "r!m the ban) in case !" $a&ment !" the "rei%ht at the $!rt !" ladin% is in(!l(ed. (ii. Rail3a& recei$t+ Ber% Recei$t !r Truc) Recei$t. (iii. #hi$$in% instructi!ns. i. Insurance $!lic&. A"ter th!se+ e$!rter submits all these d!cuments al!n% 3ith a letter !" Indemnit& t! B2 "!r ne%!tiati!n. An !""icer scrutinizes all the d!cuments. I" the d!cument is a clean !ne+

6/[email protected]/ Export Bi00 Scrutin Sheet!

The 9$!rt Bill #crutin& #heet c!ntains the "!ll!3in% $articulars+ '/ 9$!rters name 5/ resentati!n date !" d!cuments. 3.

2C= no.

8/ 9$ir& date :/ 2C= am!unt a(ailable >/ The date 3ithin 3hich the d!cuments t! be $resented @/ B' ABN F=R dated / #hi$ment date in the 2C= Dra"t date A/ In(!ice number and date '&/ 9$!rt 2C= n!+ date+ issued b& ''/ D!cuments re5uired in the 2C= c!ntract '5/ 2iabilit& $!siti!n '6/  Discre$ancies '8/  =alculati!n !" Bill am!unt 9$!rters Retenti!n Ju!ta+ =!mmissi!n+

and Mar%in/.

*ocumentar credit is fo00o4ing tpes! Re2ocab0e credit! A re(!cable credit is !ne 3here the issuin% ban)s at libert& t! re(!)e i e. cancels the credit at an& time. Irre2ocab0e credit! An irre(!cable credit is a d!cumentar& credit+ 3hich cann!t be re(!)ed+ (aried !r  =han%edCamended !r cancelled 3ith!ut the c!nsent !" all $arties- bu&er A$$licant/+ seller  Bene"iciar&/+ Issuin% Ban)+ and =!n"irmin% Ban) in case !" c!n"irmed 2C=/. As $er Article *a/ !" '=D= 00+ an irre(!cable credit c!nstitutes a de"inite underta)in% !" the Issuin% Ban)+  $r!(ided that the sti$ulated d!cuments are $resented t! the G!minated Ban) !r t! the Issuin% Ban) and that the terms and c!nditi!ns !" the credit are c!m$lied 3ith.

+hapter 8! Finding < *ata ,na0sis!

8/' Import!

The t!tal business handled b& the ban) in ,00* 3as ta)a ?<<8?.> milli!n c!m$ared t! ta)a >0>11.1 milli!n in the $recedin% &ear re%isterin% a %r!3th !" ta)a 11<>>.0,milli!n ?.0,  $ercent. A sizable [email protected] 3ere als! !$ened b& the ban) in the &ear un der re(ie3. The im$!rt items include machiner&+ c!nsumer %!!ds+ "abrics+ access!ries "!!d items etc.

2500 2000 1500 1000 500 0

Im$!rt 6ear












8/5 Export! The ban) handled e$!rt business 3!rth ,1?0.*? milli!n in the under re$!rt. In ,008 t!tal e$!rt business handled b& the ban) 3as an increase !" ta)a 18<1.?> milli!n . Thus there 3as an increase !" ta)a ,8*. milli!n in the e$!rt business handled b& the ban ) 1?.*8 $ercent !(er the $recedin% &ear . The ma4!r e$!rt item 3as read& made %arments a%r! based $r!ducts etc.

9$!rt 6ear












10 9 8 7 6 5 4 3 2 1 0

8/6+orrespondent Re0ationship!

(er the &ears the ban) has de(el!$ed bene"icial relati!nshi$ 3ith the "!rei%n c!rres$!ndents 3!rld3ide t! "acilitate the internati!nal trade !$erati!ns !" the ban). amuna  ban) limited has s! "ar established relati!nshi$ 3ith m!st leadin% internati!nal ban)s in 10 c!untries thr!u%h > c!rres$!ndents t! c!(er all im$!rtant "inancial centers !" the 3!rld. The ban) endea(!rs t! increase the net3!r) !" c!rres$!ndent relati!nshi$ 3ith m!re !(erseas ban)s+ "inancial instituti!ns t! cater t! the needs !" cust!mer %l!ball&. Dra3in% arran%ement 3ith !(erseas echan%e h!uses ha(e alread& been established "!r brin%in% in h!me remittance thr!u%h ban)in% channel. 9""!rts are under3a& t! e$and c!rres$!ndent relati!nshi$ "urther t! "acilitate the ban)in% %r!3in% "!rei%n trade transacti!n.

8/:/Remittance Business < Exchange ouse! amuna Ban) 2td. has a net3!r) !" branches in Ban%ladesh and m!re branches are %!in% t! be added t! net3!r) s!!n. Remittance ser(ices are a(ailable at all branches and "!rei%n remittances ma& be sent t! an& branch b& the remitters "a(!rin% their   bene"iciaries. Remittances are credited t! the acc!unt !" bene"iciaries instantl& thr!u%h 9lectr!nic Fund Trans"er 9FT/ mechanism !r 3ithin sh!rtest $!ssible time. amuna Ban) 2td. has c!rres$!ndent ban)in% relati!nshi$ 3ith all ma4!r ban)s l!cated in alm!st all the c!untriesCcities. 9$atriate Ban%ladeshis ma& send their hard earned "!rei%n currencies thr!u%h th!se ban)s !r ma& c!ntact an& ren!3ned ban)s nearb&  3here the& resideC3!r)/ t! send their m!ne& t! their dear !nes in Ban%ladesh. T! "acilitate sendin% m!ne& in Ban%ladeshi Ta)a directl&+ amuna Ban)  2td. has Ta)a Dra3in% Arran%ement 3ith man& ban)sCechan%e c!m$anies in di""erent c!untries. The e$atriate Ban%ladeshis ma& send their m!ne& in BDT thr!u%h the branchesCsubsidiaries !" amuna Ban) 

In !rder t! enc!ura%e 3a%e earner "!r remittin% "unds thr!u%h ban)in% channel and ensure sm!!th "acilities !" remittance B2 is ma)in% c!nstant e""!rt t! ma)e arran%ements 3ith re$uted echan%e h!use all !(er the 3!rld. The ban)@s such e""!rt are directed t!3ards increase !" remittance business s! as t! enhance the in"l!3 !" "!rei%n currenc&. ith this end in (ie3 B2 has alread& si%ned arran%ement 3ith the "!ll!3in% remittance [email protected]

       

lacid G.K. =!r$!rati!n '.#.A 9ur! Ban%lad M!ne& Trans"er 'K/ 2td Ra""les 9chan%e '.K/ 2td '.K  M!ne& 2in) '.K/ 2td '.K  M!ne& Eram a&ment #&stems+ '#A Rumana M!ne& #er(ices+'.K  Uen4 9chan%e =!.+Bahrain Fast Remit #dn Bhd+Mala&sia

The ban) is %!in% t! ha(e acc!rd 3ith s!me !ther re$uted echan%e h!uses !$eratin% in the di""erent "inancial hubs !" the 3!rld. F!r $r!(idin% su$$!rts t! [email protected] Remittance cell has alread& been established in the head !""ice 3hich is e5ui$$ed 3ith m!dern techn!l!%& "!r  ensurin% $r!m$t deli(er& !" remittance ser(ices  re$lies t! the 3a%e [email protected] and  bene"iciaries 5ueries. T!tal remittance business 3as ,<8 milli!n in ,00*.

8/>/Offshore Banking nit! An !""sh!re ban)in% unit !" a ban) is a deemed "!rei%n branch !" the $arent ban) situated in Ban%ladesh. The im$ressi(e %r!3th !" the ec!n!m& durin% the last c!u$le !" &ear and the "acilities $r!(ided t! the "!rei%n in(est!rs thr!u%h !$enin% !" s$ecial e$!rt ha(e attracted l!t !" "!rei%n in(est!rs in the c!untr& . amuna ban) ltd %!t Ban%ladesh ban $ermissi!n a%ainst rec!mmendati!n !" B9UA. T! establish [email protected] !"" sh!re ban)in% unit at [email protected] Eulshan  branch Dha)a $remise. The "uncti!ns !" B' 3ill be started (er& s!!n.

The B' unit 3ill be able t! m!bilize de$!sits "r!m  etend credit "acilities t! the industries !" all the 9[email protected] as 3ell as !btain "!rei%n currenc& "r!m "!rei%n ban)  c!rres$!ndent ban).

8/@/'&&G O4ned Exchange ouse ,broad! amuna ban) limited %!t Ban%ladesh Ban)@s $ermissi!n "!r establishin% 100L !3ned echan%e h!uses in "!ll!3in% re%i!ns !" "!ll!3in% re%i!ns !" "!ll!3in% c!untries.



nited Stated

  


 

2!nd!n Manchester  Birmin%ham Kuala 2um$ur  enan%

! +i-- he-p a*g"en in/o+ o oreign re"iance ino he co*nr or he-ping he expariaes o ro*e "one o near and dear ones eneciaries saing in #ang-desh hro*gh #an$ing hanne-. ,he process or esa-ishing he sa"e is in he progress.

8//Foreign Exchange Risk! F!rei%n 9chan%e ris) is de"ined as the $!tential chan%e in earnin% due t! chan%e in mar)et $rice .The "!rei%n echan%e ris) !" the ban) is minimal as 3ell as the transacti!ns are carried !ut ! n  behal" !" the cust!mers a%ainst underl&in% 2Cc c!mmitments and !therremittance re5uirementss.  G! "!rei%n echan%e $ur$!se !n ban)@s acc!untn 3as c!nducted durin% the &ear .All G!str! acc!unt rec!ncilied !n a m!nthl& basis and !utstandin% entr& be&!nd >0 da&s is re(ie3ed b& the mana%ement "!r [email protected] #te$s ha(e been im$lemented and s!me are in under $r!cess.

8/A/Export +ash +redit!


)*port "ash "redit



)*port "ash "rerdit 3000000 Expor ash rerdi




1000000 0 20092008

8/'&/Exchange Hain! Details

ear 5&&A

ear 5&&

+et )*change ain n "!rei%n =urrenc& ther 9chan%e  Get 9chan%e Eain


1,<8<8 2500000



2000000 1500000



1000000 500000 0 2009


8/''/-ostro account re0ated to foreign exchange transaction  G!str! acc!unt means 7!ur acc!unt 3ith &!u. A G!str! acc!unt is a "!rei%n currenc& acc!unt !"  a ban) maintained its "!rei%n c!rres$!ndents abr!ad. F!r eam$le+ '# D!llar Acc!unt !" B2 maintained 3ith =itiban)+ G.A+ Ge3 6!r)+ '#A is a G!str! acc!unt !" B2.

34.Mode o' pament o' e*port 5ills under L2"

A 'igh (a"en redi

eerred (a"en redi

Pament methods %nder L2"

egoiaion (a"en redi

At $ight Pament "redit In a #i%ht a&ment =redit+ the ban) $a&s the sti$ulated sum immediatel& a%ainst the e[email protected]$resentati!n !" the d!cuments.

+egotiation "redit

Accepance (a"en redi

In Ge%!tiati!n credit+ the e$!rter has t! $resent a bill !" echan%e $a&able t! him in additi!n t! !ther d!cuments+ that the ban) ne%!tiates.

De'erred Pament "redit In de"erred $a&ment+ the ban) a%rees t! $a& !n a s$eci"ied "uture date !r e(ent+ a"ter   $resentati!n !" the e$!rt d!cuments. G! bill !" echan%e is in(!l(ed. In G==B2+ $a&ment is %i(en t! the$art& at the rate !" D.A <0-*0-1,0-180 as the case ma& be. But the Head !""ice is $aid at T.T clean rate. The di""erence bet3een the t3! rates is the echan%e tradin% "!r the  branch

Acceptance credit In acce$tance credit+ the e$!rter $resents a bill !" echan%e $a&able t! him and dra3n at the a%reed ten!r that is+ !n a s$eci"ied "uture date !r e(ent/ !n the ban) that is t! acce$t it. The  ban) si%ns its acce$tance !n the bill and returns it t! the e$!rter. The e$!rter can then re$resent it "!r $a&ment !n maturit&. Alternati(el& he can disc!unt it in !rder t! !btain immediate $a&ment.

8/'6/Findings of Foreign exchange *epartment 

F!rei%n echan%e dealin%s are (er& sensiti(e because it in(!l(es currenc& trans"er "r!m !ne currenc& t! an!ther and ha(e t! ha(e (er& cauti!us "!r maintainin% the "!rmalities. But in "!rei%n echan%e secti!n 2C= !$enin%+ B2= creati!n+ 2!d%ment all these are maintained manuall& in di""erent re%ister 3hich is len%th&  c!st 3!rth&. It is n!t a %!!d  $ractice.

In case !" 9$!rt 2C=s+ s!metimes cust!mers insist the Ban)ers t! %i(e their $a &ments thr!u%h their d!cuments in s$ite !" discre$ant there!". In s!me cases+ Ban) has t! %i(e  $a&ment t! these cust!mers "!r di""erent reas!ns but ta)in% indemnit& b!nd.

Financin% t! the internati!nal trade is (er& crucial t! the ec!n!m& and as 3ell as it is ris)&. #!me time the %!(ernment im$!se restricti!n t! im$!rt s!me $r!ducts and t! e$!rt s!me $r!ducts. But s!me time it ma& ha$$en that the cust!mers under in(!ice t! im$!rt %!!ds "r!m !utside and (ice (ersa.

2ac) !" s!me technical )n!3led%e !" Internati!nal Trade Financin%.

343Methods o' Overcoming Miss masses 

For L opening #L creaion and -odg"en a-- hese are dea-ings sho*-d e done care*- and a-- he processes sho*-d e done +ih co"p*er.

 ,he #an$ sho*-d e as sric as possi-e ao* giving pa"ens agains discrepan doc*"ens +iho* h*ring he c*so"ers.

 ,he #an$ sho*-d no nance o ha peop-e +ho *nder invoice in case o i"poring & exporing i i *ndersands. ,he #an$ers "*s e a+are ao* his

*n+aned happening. And he sho*-d oserve he invoice o open a -eer o redi L:.

 ,he an$ sho*-d r o arrange "ore raining progra"s or heir o;cia-s. <*a-i raining +i-- he-p he o;cia-s o enrich he" +ih "ore recen ,o provide =*a-i service o he c*so"er i is necessar o have rained ea" o sa>.

Chapter Eight SWOT Analysis #T anal&sis is the detailed stud& !" an !r%[email protected] e$!sure and $!tential in $ers$ecti(e !"  its stren%th+ 3ea)ness+ !$$!rtunit& and threat. This "acilitates the !r%anizati!n t! ma)e their  eistin% line !" $er"!rmance and als! "!resee the "uture t! im$r!(e their $er"!rmance in c!m$aris!n t! their c!m$etit!rs. As th!u%h this t!!l+ an !r%anizati!n can als! stud& its current  $!siti!n+ it can als! be c!nsidered as an im$!rtant t!!l "!r ma)in% chan%es in the strate%ic mana%ement !" the !r%anizati!n.


AM'GA Ban) 2imited is mana%ed b& hi%hl& $r!"essi!nal $e!$le.

The mana%ement !" the ban) c!nstantl& "!cuses !n the understandin% and antici$atin% [email protected] needs and s!luti!n there!".

AM'GA Ban) 2imited has alread& achie(ed tremend!us $r!%ress 3ithin a sh!rt $eri!d !"  its !$erati!n. The ban) is alread& ran)ed as !ne !" the 5ualit& ser(ice $r!(iders and )n!3n "!r its re$utati!n.

The t!$ mana%ement !""icials !" amuna Ban) 2imited ha(e &ears !" ban)in% e$erience+ s)ill+ and e$ertise 3ill c!ntinue t! c!ntribute t!3ards "urther e$ansi!n !" the ban).

AM'GA Ban) 2imited has alread& achie(ed a hi%h %r!3th rate acc!m$anied b& an im$ressi(e $r!"it %r!3th rate in ,00. Its !$eratin% $r!"it is T) ?1*.*? milli!n as a%ainst T)  >08.8> milli!n !" ,00?. The number !" de$!sits and the l!ans and ad(ances are als! increasin% ra$idl&.

AM'GA Ban) has an interacti(e c!r$!rate culture. The 3!r)in% en(ir!nment is (er& "riendl&+ interacti(e and in"!rmal. And+ there are n! hidden barriers !r b!undaries 3hile c!mmunicate bet3een the su$eri!r and the em$l!&ees. This c!r$!rate culture $r!(ides as a %reat m!ti(ati!n "act!r am!n% the em$l!&ees.

AM'GA Ban) has the re$utati!n !" bein% the $r!(ider !" %!!d 5ualit& ser(ices t!! its+  $!tential cust!mers.

It al3a&s "!cuses !n l!3 and n! c!st de$!sits 3hich 3ill the %r!3th !" the ban) .

The ban) al3a&s ea%erness t! intr!duce ne3 de$!sit scheme and has alread& intr!duced hi%hl& lucrati(e and attracti(e de$!sit scheme t! enc!ura%e and The ban) credit "acilities mainl& c!ncentrated !n trade "inance+ A%riculture related sect!r+ $r!4ect "inance+ 3h!le and retail tradin% etc.

The Ban) intr!duced !n line branch ban)in%.

E,1-ESS! 

2ac) !" e$erience em$l!&ees in 4uni!r le(el !" mana%ement. .

The ban) "ailed t! $r!(ide a str!n% 5ualit&-recruitment $!lic& in the l!3er and s!me mid le(el $!siti!n. As a result the ser(ices !" the ban) seem t! be Deus in the $resent da&s.

The $!!r ser(ice 5ualit& has bec!me a ma4!r $r!blem "!r the ban). The 5ualit& !" the ser(ice at AM'GA Ban) is n!t hi%her than the Dha)a Ban)+ Brac Ban) !r Dutch Ban%la Ban) etc. But the ban) has t! c!m$ete 3ith the Multinati!nal Ban) l!cated here.

The Ban) d!es n!t !bser(e s!cial c!mmitment str!n%l&.

M!st !" the branches are n!t 3ell dec!rated.

 G! ha(e an& !3n trainin% instituti!n "!r im$r!(in% the 5ualit& !" the em$l!&ees in this  ban).

In terms !" $r!m!ti!nal sect!r+ AM'GA Ban) has t! m!re em$hasize !n that. The& ha(e t! "!ll!3 a%%ressi(e mar)etin% cam$ai%n.

O77OR"-I"! 

In !rder t! marinatin% the internal c!ntr!l s&stem+ AM'GA Ban) has t! e$and it credit

 $!lic& %uidelines and $r!cedures "!r c!ntinu!us m!nit!rin% and u$%radin% !" dail&  ban)in% acti(ities. The mana%ement can c!nsider !$ti!ns !" startin% merchant ban)in% !r di(ersi"& int! leasin% and insurance sect!r.

$$!rtunit& in retail ban)in% lies in the "act that the c!untr&@s increased $!$ulati!n is %raduall& learnin% t! ad!$t c!nsumer "inance. The bul) !" !ur $!$ulati!n is middle class. Di""erent t&$es !" retail lendin% $r!ducts ha(e %reat a$$eal t! this class. #! a 3ide (ariet& !" retail lendin% $r!ducts has a (er& lar%e and easil& $re%nable mar)et.

There are man& ban)s in !ur c!untr&. In this c!m$etiti(e en(ir!nment AM'GA Ban)  must e$and its $r!duct line t! enhance its sustainable c!m$etiti(e ad(anta%e. In that  $r!duct line+ the& can intr!duce the !3n ATM t! c!m$ete 3ith the l!cal and the "!rei%n  ban). The& can intr!duce credit card and debit card s&stem "!r their $!tential cust!mer.

As a third %enerati!n ren!3n ban)+ amuna ban) can increase its net3!r) 3ith m!st internati!nal ban)s and "inancial instituti!ns

"RE,"S! 

All sustain multinati!nal ban)s and u$c!min% "!rei%n+ $ri(ate ban)s [email protected] en!rm!us threats t! AM'GA Ban) 2imited. I" that ha$$ens the intensit& !" c!m$etiti!n 3ill rise "urther and ban)s 3ill ha(e t! de(el!$ strate%ies t! compete against an !n sl!u%h !"  "!rei%n the ban)s.

The de"ault ris)s and delin5uent !" all terms !" l!an ha(e t! be minimizin% in !rder t! sustain in the "inancial mar)et. Because this ris) leads the !r%anizati!n t!3ards t!  ban)ru$t. AM'GA Ban) has t! remain (i%ilant ab!ut this $r!blem s! that $r!acti(e strate%ies are ta)en t! minimize this $r!blem i" n!t eliminati!n.

The l!3 c!m$ensati!n $ac)a%e !" the em$l!&ees "r!m mid le(el t! l!3er le(el $!siti!n threats the em$l!&ee m!ti(ati!n. As a result+ %!!d 5ualit& em$l!&ees lea(e the

!r%anizati!n and it e""ects the !r%anizati!n as a 3h!le.

Chapter Nine FI-*I-HS= RE+O..E-*,"IO-S ,-* +O-+LSIO A/' FI-*I-HS •

#!me cust!mers d! n!t understand acc!unt !$enin% "!rm  2C= !$enin% "!rm

#!me cust!mers are n!t interested !r n!t able t! 3rite D.D.+ =hec)+ $a& !rder (!ucher.

In the $resent mar)et situati!n+ 3here the c!m$etiti!n am!n% all $ri(ate c!mmercial  ban)s are (er& intense and hi%h+ the mana%ement !" amuna Ban) is "ailin% t! "ind !ut its ma4!r 3ea)nesses.

The ma4!r 3ea)ness !" amuna Ban) 2imited is its unattracti(e salar& $ac)a%e. The salar& $ac)a%e that amuna Ban) 2imited !""ers t! the em$l!&ees is relati(el& $!!r  c!m$arin% t! !ther c!m$etin% ban)s in the mar)et.

[email protected] ban)in% strate%& is n!t arran%ed in such 3a& that $r!(ides ecellent ser(ice t! its cust!mers and em$l!&ees.

The& ha(e t! trans"er data "r!m branch t! branch and branch t! head !""ice b& usin% $e!n and !thers.

Acc!rdin% t! s!me clients !$ini!n intr!ducer is !ne !" the $r!blems t! !$en an acc!unt. I" a $ers!n 3h! is ne3 !" the cit& 3ants t! !$en acc!unt+ it is a $r!blem "!r himCher t! arran%e an intr!ducer !" #B !r =D acc!unts h!lder. amuna Ban) 2imited "ails t! recruit e$ert and s)illed $ers!n because !" this l!3 salar& structure. There are s!me c!n%ested branches 3here m!dern technical e5ui$ment such as c!m$uter  and man$!3er are n!t su""icient. As a result ban)in% acti(ities are n!t d!ne $r!$erl&.

AM'GA Ban) [email protected] %i(e their attenti!n !n ad(ertisement. As a c!m$etiti!n mar)et it is t!! much im$!rtant "!r an& !r%anizati!n t! increasin% their ad (ertisements $r!cedure. AM'GA Ban) 2imited has limited 3!r)"!rce. As a result m!st !" the em$l!&ees are under hu%e 3!r)l!ad and ha(e t! 3!r) etra h!urs th!u%h n! !(ertime "acilit& is  $r!(ided t! them. #! the cause !" seri!us em$l!&ees dissatis"acti!n and result in em$l!&ee turn!(er. amuna Ban) 2imited cann!t $r!(ide A.T.M ser(ice t! its cust!mers $r!$erl&.

A/5 R E+O..E-*,"IO-S  Tr&in% t! ma)e th!se $e!$le understand 3h! d! n!t )n!3 h!3 t! !$en a ban) 

acc!unt. •

[email protected] human res!urces mana%ement $!lic& has t! identi"& the ri%ht c!mbinati!n !" s)ills+ )n!3led%e+ beha(i!r and (alues and utilize them "!r the 3el"are !" the ban). I" the& are established str!n% net3!r)in% s&stem 3ith their branches then it can easil& trans"er data 3ithin sh!rt time. I" the& cancel the intr!ducer s&stem then the& can c!llect m!re de$!sit thr!u%h ne3 acc!unt and it als! satis"ied the cust!mer. T! ma)e the $r!cess eas& and 5uic) the 3h!le s&stem sh!uld be c!m$uterized and ta)e m!dern c!mmunicati!n media "!r eam$le e-mail+ "a+ Internet sh!uld be used. [email protected] has t! ad!$t the m!st recent techn!l!%ies t! im$r!(e the 5ualit& !" ser(ice. A %r!u$ 3ell-trained and e$ert 3!r) "!rce is dedicated t! render the best ser(ice t! the cust!mers. [email protected] 3!r)in% en(ir!nment has t! ecellent "!r its em$l! &ees and cust!mers The mana%ement has t! intr!duce the !(ertime "acilit& "!r the em$l!&ees 3h! 3!r) hard etra h!urs a"ter their !""ice time. The mana%ement !" amuna Ban) 2imited has t! %i(e their attenti!n t! ta)e necessar& ste$s t! im$r!(e salar& structure. The mana%ement !" amuna Ban) 2imited must be identi"ied the 3ea)ness $!int t! ha(e in c!m$etiti!n in ban)in% sect!r.

A/6 +O-+LSIO A 2!t !" ne3 c!mmercial ban) has been established in last "e3 &ears and these ban)s ha(e made this ban)in% sect!r (er& c!m$etiti(e. #!+ n!3 ban)s ha(e t! !r%anize their !$erati!n and d! their  !$erati!ns acc!rdin% t! the need !" the mar)et. Ban)in% sect!rs n! m!re de$ends !n a traditi!nal meth!d !" ban)in%. In this c!m$etiti(e 3!rld this sect!r has trenched its 3in%s 3ide en!u%h t! c!(er an& )ind !" "inancial ser(ices an&3here in this 3!rld. The ma4!r tas) "!r ban)s+ t! sur(i(e in this c!m$etiti(e en(ir!nment is b& mana%in% its assets and liabilities in an e""icient 3a&. As an internee student in AM'GA Ban) Ban%ladesh 2imited at M!ti4heel Branch+ Dha)a+ I ha(e trul& en4!&ed m& internshi$ "r!m the learnin% and e$erience (ie3$!int I am c!n"ident that 1. m!nth internshi$ $r!%ram at AM'GA Ban) Ban%ladesh 2imited 3ill de"initel& hel$ me t! realize career in the 4!b mar)et. Durin% the c!urse !" m& $ractical !rientati!n I ha(e tried t! learn the $ractical ban)in% t! realize m& the!retical )n!3led%e+ 3hat I ha(e %athered and %!in% t! ac5uire "r!m (ari!us c!urses. It is %reat $leasure "!r me t! ha(e $ractical e$!sure !" AM'GA Ban) 2imited+ because 3ith!ut  $ractical e$!sure it c!uldnt be $!ssible "!r me t! c!m$are the the!r& 3ith $ractice. Thr!u%h the de$artments and secti!ns are c!(ered in the internshi$ $r!%ram+ it is n!t $!ssible t! %! t! the de$th !" each acti(ities !" branch because !" time limitati!n. #! !b4ecti(es !" the internshi$ $r!%ram ha(e n!t been "ul"illed 3ith c!m$lete satis"acti!n. H!3e(er+ hi%hest e""!rt has been %i(en t! achie(e the !b4ecti(es !" the internshi$ $r!%ram. #! in c!nclusi!n it can be said that e(er& !r%anizati!n has its $!siti(e as 3ell as ne%ati(es and in case !" AM'GA Ban) Ban%ladesh 2imited eistence !" the later !ne is less than the earlier !ne and as the mana%ement is determined t! reach the $ic) !" success it seems that in near "uture the ne%ati(es 3ill be eliminated. #i &ears is a (er& sh!rt s$an !" time and the !r%anizati!n+ 3hich can establish itsel" as !ne !" the m!st re$uted $ri(ate c!mmercial Ban) in the c!untr& 3ithin this sh!rt $eri!d deser(es s$ecial credit and 3ith their able leaders AM'GA Ban) 3ill reach the hi%hest le(el !" success (er& sh!rtl&. I 3ish the ban) all success $r!s$erit& in their "ield.


1. Annual Re$!rt !" amuna Ban) 2imited ,00*: ublished b&: Head !""ice !"  amuna Ban) 2imited+ Dha)a. ,. =redit Manual: ublished b&: Head !""ice !" amuna Ban) 2imited+ Dha)a >.

F!rei%n 9chan%e Manual: ublished b&: Head !""ice !" amuna Ban) 

2imited+ Dha)a. ?. !el Besis ,001/: Ris) Mana%ement in Ban)in%+ >rd editi!n+ Ge3&!r)+ h!n ile& Ins . Transacti!n in "!rei%n echan%e: rinci$les and ractice. ritten b&: M. A &usu"  and M. R #inha <. Ee!r%e H Hem$el and D!nald E #im!ns!n 1**8/+ Ban) Mana%ement and =ases th editi!n. Ge3&!r)+ #!uth- 3estern . eb: 333.4amunaban)bd.c!m . 8. ari!us "iles !" M!ti4heel Branch !" B2


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