basic final report
TRANSCRIPT
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 1/95
1
1
An Internship Report
Analysis of Foreign
Exchange Banking Services
of
The BASIC Bank Limited
Bangladesh Small Industries & Commerce BankLimited
A State Owned Scheduled Bank
Limited
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 2/95
1
1
MARCH- 2010
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 3/95
1
1
Analysis of Foreign Exchange Banking Services
Of
The BASIC Bank LimitedBangladesh Small Industries & Commerce Bank Limited
AN INTERNSHIP REPORT
SUBMITTED B Y
RIFAT AREFIN RAJIBID # BBA - 02707401
BBA PROGRAM
27 TH
BATCH
IN PRACTICAL FULFILLMENT OF THE REQUIREMENT FOR
THE DEGREE OF
DEPARTMENT OF BUSINESS ADMINISTRATION
STAMFORD U NIVERSITY, B ANGLADESH
UNDER THE GUIDANCE OF AND SUBMITTED TO
MS. NUSRAT JAHANLECTURER
DEPARTMENT OF BUSINESS ADMINISTRATION
S TAMFORD UNIVERSITY, BANGLADESH
S TAMFORD UNIVERSITY, BANGLADESHMARCH- 2010
Stamford University, Bangladesh
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 4/95
1
1
744, Satmosjid Road, Dhanmondi, Dhaka-1209
To Whom It May Concern
This is to certify that, Rifat Arefin Rajib; a student of BBA program, Major in Finance,
Department of Business Administration, Stamford University, Bangladesh has completed the
internee report titled “Analysis of Foreign Exchange Banking Services of The BASIC
Bank Limited” successfully under my supervision.
I wish him every success in his life.
Supervisor
Nusrat Jahan
Lecturer Department of Business Administration
Stamford University, Bangladesh
Letter of Transmittal
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 5/95
1
1
Date:
Ms. Nusrat Jahan
Lecturer
Department of Business AdministrationStamford University, Bangladesh
Subject: Submission of Internee Report.
Dear Madam,
It is a great pleasure and privilege to present the internee report titled “Analysis of Foreign
Exchange Banking Services of BASIC Bank Limited” which was assigned to me as a
partial requirement for the competition of BBA Program.
Throughout the study I have tried with the best of my capacity to accommodate as much
information and relevant issues as possible and tried to follow the instructions as you have
suggested. I tried my best to make this report as much informative as possible. I sincerely
believe that it will satisfy your requirements. I however sincerely believe that this report will
serve the purpose of my internee program.
I am grateful to you for your guidance and kind cooperation at every step of my endeavor on
this report. I shall remain deeply grateful if you kindly take some pan to go through the report
and evaluate my performance.
My effort will be reworded only if it adds value to the research literature.
Rifat Arefin Rajib
ID # BBA - 02707401BBA Program27th BatchDepartment of Business AdministrationStamford University, Bangladesh
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 6/95
1
1
Student’s Declaration
I hereby declare that the report of internship namely “Analysis of Foreign Exchange
Banking Services of BASIC Bank Limited” by me after the completing of 3 (three) months
of internship with BASIC Bank Limited at Shanti Nagar Branch and a comprehensive
study of the existing activities of BASIC Bank Limited and its implementation.
I also declare that this paper is my original worked and prepared for academic purpose which
is a part of BBA and THE PAPER MAY NOT BE USED IN ACTUAL MARKET
SCENARIO.
Rifat Arefin Rajib
ID # BBA - 02707401
BBA Program27th BatchDepartment of Business AdministrationStamford University, Bangladesh
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 7/95
1
1
Supervisor’s Declaration
I hereby declare that the concerned report entitled “Analysis of Foreign Exchange Banking
Services of BASIC Bank Limited” is an original work by Rifat Arefin Rajib, ID # BBA
02707401, Major in Finance, Department of Business Administration, Stamford University,
Bangladesh, completed his internship under my supervision and submitted for the partial
fulfillment of the requirement of the degree of Bachelor of Science in Business
Administration (BBA) at Stamford University, Bangladesh.
Nusrat Jahan
Lecturer Department of Business AdministrationStamford University, Bangladesh
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 8/95
1
1
Head of the Department’s
Declaration
I hereby declare that the concerned report entitled “Analysis of Foreign Exchange Banking
Services of BASIC Bank Limited” is an original work by Rifat Arefin Rajib, ID # BBA
02707401, Major in Finance, Department of Business Administration, Stamford University,
Bangladesh, completed his internship and submitted for the partial fulfillment of the
requirement of the degree of Bachelor of Science in Business Administration (BBA) at
Stamford University, Bangladesh.
Md. Ifte kharul Alam
HOD (Finance)Department of Business AdministrationStamford University, Bangladesh
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 9/95
1
1
Preface
The discussing report is the terminal formalities of the internship program for the degree of
Bachelor of Science in Business Administration course of Department of Business
Administration of Stamford University, Bangladesh which is compact professional progress
rather than specialized. This report has prepared as per academic requirement of after the
successfully completion of 3 (three) months internship organized at BASIC Bank Limited,
Shanti Nagar Branch with the view to familiarized the students with the practicalimplementations of the knowledge provides the theoretical aspects of practical life.
It is my pleasure and great privilege to submit my report titled “Analysis of Foreign
Exchange Banking Services of BASIC Bank Limited” worked out at Shanti Nagar Branch
during November 2010 to February 2010.
As the presenter of this report, I have tried my level best to get together as much information
as possible to enrich the report while working at Foreign Exchange Department of BASIC
Bank Limited. I believe that it was a fascinating experience to work in the banking section
and it has enriched both my knowledge and experience.
However, after all this, as a human being, I believe everyone is not beyond limitation. There
might have problems regarding lack and limitation in some aspects and also some minor
mistake such as syntax error or typing mistake or lack of information. Please pardon me for
that mistake and clarify these of my further information on those matters.
Rifat Arefin Rajib
ID # BBA - 02707401
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 10/95
1
1
BBA Program27th BatchDepartment of Business AdministrationStamford University, Bangladesh
AcknowledgementFor the very first of all I would like to express my gratefulness and harmony to theALLMIGHTY ALLAH the supreme authority of the Universe, without Whom we would benothing. Next I would like to express my kindness to my Beloved Parent (MD. AnwarHossain & MRS. Rokeya Begum) whose continuous inspiration enrages me to make a rightmove in my life.
A single individual can achieve no noble objective. Words actually will never be enough toexpress how grateful I am nevertheless will try my level best to express my heart fullgratitude towards some respected persons for their advice, suggestions, direction andcooperation which have enabled me to have an experienced in the dynamic environment suchlike in banking sector.
First of all I would like to thank my supervisor Ms. Nusrat Jahan, without whose help,suggestion and cooperation the total report will be valueless.
The very first person of BASIC Bank Limited to whom I would like to convey my gratitudeis the Deputy General Manager MD. Wahidul Alam for his kind consideration to give me anopportunity to complete my internship at BASIC Bank Limited. I would also thankful toMD. Moktadir Hossain, Assistant General Manager of BASIC Bank Limited, (Shanti Nagar Branch), for his kind cooperation. I would also thankful to Ms. Fatema Khairunnesa,Assistant Manager of BASIC Bank Limited, (Shanti Nagar Branch) whose valuable adviceand kind cooperation helped me to gather more knowledge. The respected personnel are Ms.Nargis Sultana, Senior Officer, Md. A.B.M Khairul Kabir Chowdhury, Assistant Officer and Mr. Zubayer Babu, Officer, Foreign Exchange Department, Md. Shohag Islam,Officer and Mr. S. M. Aminur Rahman, Junior Officer, General Banking Department and
Md. Aslamul Hoque, Assistant Officer, IT Department.
I would like to mention the name of some grate persons who are very near to my heart, Ms.Dilara Alam Santona, BBA, Akhter Uddin Tushar, BBA, Mahammad Zahid Al-Helal,BBA, and Munir Hossain Chowdhury (Yead), LLB whose valuable advice and continuoussupport helped me most to make this report and gave me a way to submit it.
I would like to thank from the deep of my heart to those people who are related with makingof this report and make it a success.
At last but not the least, the Stamford University, Bangladesh for giving me an opportunity tocomplete my BBA degree and give me a scope to gather practical experience and enrich myknowledge.
May ALLMIGHTY ALLAH bless all of them.
Rifat Arefin Rajib
ID # BBA 02707401
BBA Program27th Batch
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 11/95
1
1
Department of Business AdministrationStamford University, Bangladesh
Executive Summary
BBA is a professional degree. To fulfill this degree Internship course is a associate course
which enable the students to gather practical experience where the student wants to make
his/her carrier. My internship course was assigned at BASIC Bank Limited, Shanti Nagar
Branch, under the supervision of Ms. Nusrat Jahan, Lecturer, Department of Business
Administration, Stamford University, Bangladesh. My internship was on the Foreign
Exchange Procedure of BASIC Bank Limited. So my report title is “Analysis of Foreign
Exchange Banking Services of BASIC Bank Limited” . So to recover the total financial
soundness and management skill I have tried to analyzed how they are operating their
banking system. A company’s main objective is to gain more profit to benefit its stakeholders
using a perfect management system. BASIC Bank Limited is not different from them. So myinternship report entitled “Analysis of Foreign Exchange Banking Services of BASIC
Bank Limited” refers how the bank drives its banking operation and how it benefits itself
and its stakeholders.
Foreign Exchange is vast concept in banking sector, which generates another source of profit
and gear up economic activities of the country. Moreover the uses of foreign exchange
activities have to be well organized and well executed to reap the benefits to Foreign
Exchange Department. So Foreign Exchange Department is more effective to help us to
understand the banking activities with other countries and also helps to understand a portionof the economic growth of the country.
This report on “Analysis of Foreign Exchange Banking Services of BASIC Bank Limited” .
This report gives a clear idea about the documents used in foreign exchange of BASIC Bank
Ltd. As my work place in BASIC Bank Ltd. Shanti Nagar Branch, in this report I specially
placed the documents and other data of Shanti Nagar Branch. This report is alienated into
Several chapters.
The first Chapter of this report deals with introduction, orientation of the report is carried
on, in the Second Chapter, an Overview of BASIC Bank Ltd. and its Shanti Nagar Branch
has been presented. The Next Chapter of the report deals with some theoretical concept
about Foreign Exchange Activities. In this section I had discussed documents used in
foreign department. And the Other Chapter of this report contains Literature Review,
Corporate Social Responsibility, Achievements, Analysis, Recommendations and
Conclusion which is drawn by analysis of whole report.
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 12/95
1
1
“Analysis of Foreign Exchange Banking Services of BASIC Bank Limited”
Contents Page
Introduction (Orientation of the report)
1.1_ Origin of the Report 15
Chapter-1 10 Executive Summary
1.2_Background of the Study
1.3_ Objective of the Study
1.4_Scope of the Report
An Overview of BASIC Bank Ltd.An Overview of BASIC Bank Ltd.
2.1_Background of BASIC Bank 19
2.2_Functions & Corporate Strategy
2.3_Organizational Goals & Structure
2.4_At a Glance of BASIC Bank
15
16
16
20
20
22
Chapter-2
2.8_Organogram, Activities & Credit Rating
23
24
27
25
2.5_Progress at Glance (2004-2008)
2.6_Balance Sheet, Profit & Loss Account
2.7_Resources & Capabilities
1.5_ Methodology of the study
1.6_Limitation of the study
16
17
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 13/95
1
1
Overall Banking of BASIC Bank
3.1_General Banking 36
3.1.1_Accounts Opening Section
3.1.2_Accounts Section
3.1.3_Local Remittance Section
3.1.4_Collection & Clearing Section
36
39
39
41
Chapter-3
ContentsPage
2.9_Performance at a glance of Shanti Nagar Branch
3.1.5_Cash Section
3.2_Foreign Exchange Section- It’s meaning & Definition
41
43
33
Foreign Exchange Activities of BASIC Bank
4.1_ Foreign Exchange 45
4.2_Export Section
4.3_Import Section
4.4_Major Discrepancies
4.5_Foreign Remittance Section
47
49
54
58
Chapter-4
4.6_Identification of Documents (Foreign Exchange) 62
4.7_Appraisal of Export & Import Business 63
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 14/95
1
1
Page
Achievements, Recommendation & ConclusionAchievements, Recommendation & Conclusion
6.1_Achievements 79
Chapter-6
6.2_SWOT Analysis
6.3_Recommendation
6.4_Conclusion
6.5_Appendix
80
81
83
84
6.6_Bibiography 90
Contents
Corporate Social Responsibility
5.1_Corporate Social Responsibility-CSR
74
5.1.1_Financing SMI5.1.1_Financing SMI 74
Chapter-5
5.1.2_Sports & Culture
5.1.3_Disaster Relief
5.1.4_Education
5.1.5_Environment Protection
5.2_Professional Development & Achieving Employee Satisfaction
5.2.1_Stuff Welfare
5.2.2_Other Activities
74
74
75
75
75
76
76
4.8_Performence of Foreign Exchange Business 64
4.9_Schedule of Charges (Foreign Exchange) 70
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 15/95
1
1
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 16/95
1
1
1.1 # ORIGIN OF THE REPORT:
Now a day, education is not just limited to books and classrooms. In today’s world, education
is the tool to understand the real world and apply knowledge for the betterment of the
society as well as business. From education the theoretical knowledge is obtained from
courses of study, which is only the half way of the subject matter. Practical knowledge
has no alternative. The perfect coordination between theory and practice is of
paramount importance in the context of the modern business world in order to resolve
the dichotomy between these two areas. Therefore, an opportunity is offered by
Stamford University Bangladesh, for its potential business graduates to get three
months practical experience, which is known is as “Internship Program”. For the
competition of this internship program, the author of the study was placed in a bank
namely, “The BASIC Bank Limited”. Internship Program brings a student closer to the
real life situation and thereby helps to launch a career with some prior experience.
This paper is titled “Analysis of Foreign Exchange Banking Services of The BASIC Bank
Limited” originated from the fulfillment of the BBA program under Stamford University
Bangladesh. For the internship program, each student is attached with an organization. I have
prepared this report on BASIC Bank Limited (Shanti Nagar Branch) and their modern
banking operation with foreign exchange procedure where I have worked from 8 th November,
2009 during my internship; I had to prepare this report under the supervision of Ms. Nusrat
Jahan, Lecturer, Stamford University Bangladesh.
1.2 # Background of The StudyAny academic course of the study has a great value when it has practical application in the
real life. Only a lot of theoretical knowledge will be little important unless it is applicable in
the practical life. So we need proper application of our knowledge to get some benefit from
our theoretical knowledge to make it more fruitful when we engage ourselves in such field to
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 17/95
1
1
make proper use of our theoretical knowledge in our practical life, only then we come to
know about the benefit of the theoretical knowledge. Such an application is made possible
through internship. When theoretical knowledge is obtained from a course of study it is only
the half way of the subject matter. Internship implies the full application of the methods and
procedures through rich acquired knowledge of subject matter can be fruitfully applied in our
daily life. Such a procedure of practical application is known as internship. The case study is
titled “Analysis of Foreign Exchange Banking Services of The BASIC Bank Limited”.
As a student of BBA this study will be more significant in my practical life. I have worked
for three months at Shanti Nagar Branch of BASIC Bank Limited to complete the internship
program as an academic requirement.
1.3 # OBJECTIVES OF THE STUDY
(i) Main Objectives:
• The main objective of the study is to highlight on the major documents
used by BASIC Bank Ltd. While dealings with foreign exchange
banking to understand how the services are rendered.
(ii) Specific Objectives:
• To identify the documents used in foreign trade of BASIC Bank Ltd.
• To appraise export, import & remittance of the same bank.
• To identify problems of foreign exchange banking of the selected bank.
• To suggest suggestions for improvement of foreign banking of the given
bank.
1.4# Scope of the Report
This report will cover Analysis of Foreign Exchange Banking Services of BASIC Bank
Limited. It will give a wide view of the different stages of operational procedure of BASICBank Limited, starting from the Import, Export and Remittance with total Foreign Exchange
Procedures.
1.5# METHODOLOGY OF THE STUDY:
a. Primary Data were collected by the following ways:
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 18/95
1
1
• Direct communication with bank officials & clients;
• Exposure on different desk of the bank;
• Observing various organizational procedures.
b. The Main Secondary Sources from Which Data were Accumulated are asfollows:
• Annual Report of BASIC Bank Ltd;
• Periodicals published by the Bangladesh Bank;
• Different publications regarding foreign exchange operation;
• From Newspapers and Internet.
• Different Official Records of BASIC Bank Limited.
I have covered both head office and SHANTI NAGAR branch of BASIC Bank. But the body
of the report is prepared in the light of the branch. Only International Department (ID) part is
covered in the Head office.
1.6 # LIMITATIONS OF THE STUDY:
Despite all out co-ordination from the bank officials, I faced some limitations. The main
problem I faced in preparing the paper was the inadequacy and lack of availability
of required data. This report is an overall view of Foreign Exchange Operations of The BASIC Bank Ltd. But there is some limitation for preparing this report. These
barriers, which hinder my work, are as follows:
Difficulty in accessing latest data of internal operations.
Learning & gathering experience of all the banking functions was really tough.
Another limitation of this report is Bank’s policy is not disclosing some data and
information for obvious reason, which could be very much useful.
Large-scale research was not possible due to time constraints.
Non-availability of some preceding and latest data in a systematic way..
I was placed to this department for only 3 months of time and working like a regular
employee hindered the opportunity to put the better effort for the study.
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 19/95
1
1
With all of this limitation I tried my best to make this report as best as possible. So readersare requested to consider these limitations while reading and justifying any part of my study.
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 20/95
1
1
2.1# Background of The BASIC Bank:The BASIC Bank Limited (Bangladesh Small Industries & Commerce Limited) registeredunder the Companies Act 1913 on the 2nd of August 1988, started its operations from the 21 st
of January 1989. It is governed by the Banking Companies Act 1991. In 2001 the bank haschanged its earlier name Bank of Small Industries and Commerce Bangladesh Limited andthe changed name has been registered with the Register of Joint Stock Companies.
At the outset, the Bank started as a joint venture enterprise of the Bangladesh CreditCommerce (BCC) foundation with 70 percent shares and Government of Bangladesh (GOB)with the remaining 30 percent shares. The BCC Foundation being non functional following
the closure of the BCCI, the Government of Bangladesh took over 100 percent ownership of the Bank on 4th June 1992. Thus the bank is state-owned. However, the Bank is notnationalized; it operates like a private bank as before. The bank was established as the policymakers of the country felt the urgency for a bank in the private sector for financing Smallscale Industries (SSI).
BASIC is unique in its objectives. It is a blend of development and Commercial Banks. The
memorandum and Articles of Association of the Band stipulate that 50% of loanable funds
shall be invested in Small and Cottage industries Sector.
CAPITAL POSITION:
Authorized capital : Tk. 2,000 million
Paid up capital : Tk. 1309.77 million
Total Reserve and Surplus : Tk. 1681.39 million up to 31.12.2008
The Bank is requested to transfer 20 percent of its net profit before tax to Capital Fund as per
the Banking Companies Act 1991.
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 21/95
1
1
2.2 # Functions:
The Bank offers:
a. Term loans to industries especially to small-scale enterprise.
b. Full-fledged commercial banking services including collection of deposit, short-term trade
finance, working capital finance in processing and manufacturing units and financing and
facilitating international trade.
c. Technical support to Small Scale Industries (SSIs) I order to enable them to run their
enterprise successfully.
d. Micro-credit to the urban poor linkage with Non-Government Organizations (NGOs) ith
view facilitating their access to the formal financial market for mobilization of funds.
In order to perform the above tasks, BASIC works closely with the clients, the regularly
authorities the shareholders (GOB), banks and other financial institution.
CORPORATE STRATEGY
Financing establishment of small units of industries and business and facilitate their growth
Small Balance Sheet size composed of quality assets.
Steady and sustainable growth.
Investment in a cautious way.
Adoption of new banking technology.
2.3 # ORGANIZATIONAL GOALS
To employ funds for profitable purposes in various fields with special emphasis
on small scale industries.
• To undertake project promotion on identify profitable areas of investment.
• To search for newer avenues for investment and develop new products to suit such
needs.
• To establish linkage with other institutions which are engaged in financing micro
enterprises.
To cooperate and collaborate with institutions entrusted with the responsibility of
promoting and aiding SSI sector.
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 22/95
1
1
Organizational Structure:
To achieve its organizational goals, the Bank conducts its operations in accordance with the
major policy guidelines laid down by the Board of Directors, the highest policy making body.
The management looks after the day-to-day operation of the Bank.
A. BOARD OF DIRECTORS:
As stated earlier the government holds 100 percent ownership of the Bank. The Government
of Bangladesh appoints all the Directors of the Board. The secretary of the Ministry of
Industries is the Chairman of the Bank. Other Directors of the Bank are high Government
and central Bank executives. The Managing Director is an ex-officio member of the Board of
Directors. There are at present 7 Directors including the Managing Director.
B. MANAGEMENT:
The management is headed by the Managing Director. He is assisted by the Deputy
Managing Director, General Managers and Departmental Heads in the Head office.
BASIC is different in respect of hierarchical structure from other banks in that it is much
more vertically integrated as far as reporting to the Chief executive is concerned. The
Branch Managers of the Bank report direct to the Managing Director and, for functional
purpose, to the Heads of Departments. Consequently, quick decision making in disposal
of assess is ensured.
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 23/95
1
1
2.4 # At a Glance of BASIC Bank Limited
NAME BASIC BANK LIMITED
Date of incorporation August 2, 1988
Date of inauguration of operation January 21, 1989
Registered office Bana Shilpa Bhaban73, Motijeel Commercial AreaDhaka-1000, Bangladesh.
Head Office Sena Kalyan Bhaban(6th floor)195, , Motijeel Commercial AreaDhaka-1000, Bangladesh.
Logo
Name of the chairman of the Board Mr. Sheikh Abdul Hye Bacchu
Name of Managing Director Mr. AKM. Sajedur Rahman
Number of Branches 33
Services provided Deposit scheme, Credit facility and Foreignexchange services
Paid up capital Taka 1309.77million (2008)
Profit after tax and provision Taka 747.10 million (2008)
Ownership Government of Bangladesh
Banking software used CASTLETM
Technology used Member of SWIFT
Earnings per share 41.99 (2008)
E-Mail [email protected]
Website www.basicbanklimited.com
SWIFT BKSIBDDHA015Number of Authorized Dealer 15
Table:1 At a Glance of BASIC Bank Limited
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 24/95
1
1
2.5 # Progress at a Glance (2004-2008)
Progress at a
glance2008 2007 2006 2005 2004
From the Balance Sheet (Million Taka)
Authorized Capital 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00
Paid-up Capital 1309.77 1247.40 945.00 810.00 675.00
Reserve and Surplus 1681.39 1349.17 1294.00 916.14 816.23
Shareholders' Equity 2,982.60 2,596.58 2,239.00 1,726.14 1,491.23
Fixed Assets 228.36 196.11 154.52 135.78 101.41
Total Assets 46,651.53 38,773.91 29,417.09 27,136.37 19,436.57
Deposits 38,368.23 31,947.98 24,084.65 22,325.58 15,509.18
Long- term Debt 1708.4 1385.81 830.06 937.51 839.61
Loans and Advances 27,269.13 22,263.35 19,000.00 15,339.35 12,000.15
Placement & Investment 15,653.2 13,560.92 8,212.23 10,236.82 6,098.51
From the Income Statement (Million Taka)
Gross Income 5,060.29 3,549.51 2870.32 2,228.21 1768.85
Gross Expenditure 3,526.18 2,741.37 1,858.69 1,599.77 1,241.63
Profit before Tax 1534.11 808.14 1,011.62 628.44 527.22
Profit after Tax 549.95 282.96 554.14 285.49 291.48
Tax Paid (Cumulative) 3,538.09 2,790.98 2,245.16 1,777.70 1,434.76
Others (Million Taka)
Import Business 27,359.77 21,266.57 17,804.27 14,094.96 12,508
Export Business 22,270.87 16,794.96 15,463.74 11,097.23 7,908
Financial Ratios (Percentage)
Capital Adequacy Ratio 12.02 12.91 11.98 11.66 12.49
Capital Fund to DepositLiabilities
7.81 9.23 10.34 10.36 10.47
Liquid Assets to DepositLiabilities
47.70 49.10 40.42 58.01 50.36
Loan to Deposit Liabilities 71.07 69.69 78.89 69.74 77.37
Earning Assets to DepositLiabilities
114.69 109.70 112.99 114.56 116.70
After Tax Return onAverage Assets
1.30 .83 1.94 1.23 1.70
Net Profit to Gross Income 10.87 7.97 19.31 12.81 16.48
Interest Magin Cover 137.08 176.80 211.72 214.56 205.07
After Tax Return on Equity 19.68 11.70 27.82 17.75 21.27
SMI/SSI Loan and
Micro Credit to Total Loan 59.32 56.73 53.43 67.00 62.21
Number of Branches 31 30 28 27 27
Number of Employees 735 721 651 601 578
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 25/95
1
1
2.6# Balance Sheet, Profit and Loss Account
. .
. 2003 2004 2005 2006 2007 2008
Property and Assets
Cash 741.36 1035.30 1134.50 1522.87 2125.01 2641.00
Balance with other banks and financial Institutions 2378.50 3765.55 4126.27 4191.36 6937.53 8485.18
Money at call and short notice 100.00 80.00 1570.00 750.00 1320.00 1480.00
Investment
Government 1831.31 2198.95 4486.54 3241.86 5271.30 5598.82
Others 52.10 54.00 54.00 29.00 32.00 89.00
. 1883.41 2252.96 4540.55 3270.86 5303.30 5687.82
Loans and advances
Loans ,cash credit, overdrafts etc. 8633.71 11293.25 13759.05 17075.59 20047.92 24344.73
Bills discounted and Purchased 648.48 706.88 1580.29 1924.40 2215.42 2924.39
... 9282.19 12000.14 15339.35 18999.99 22263.34 27269.12
Fixed Assets 73.48 101.40 135.78 154.52 196.10 228.36
Other Assets 307.33 201.18 289.91 498.74 579.14 764.29
Total Assets 14766.32 19436.56 27136.37 29388.34 38724.51 46651.53
Capital and Liabilities
Liabilities
Borrowings from other banking companies, agents
etc .690.95 839.61 937.51 830.06 1385.81 1708.40
Bills Payable 92.94 148.89 179.75 239.25 290.75 328.49
Deposit and other Accounts
Current Accounts and contingencyaccounts etc.
1398.11 1651.35 1890.61 2370.44 2867.19 2544.51
Saving Bank deposits 581.69 724.80 793.43 1007.79 886.30 955.50
Fixed deposits 9193.80 12984.11 19461.78 20467.16 27903.72 34539.72
. 11173.60 15509.17 22325.58 23845.39 31657.21 38039.73
Other Liabilities 1609.05 1596.50 2147.13 2263.37 2843.53 3592.29
Total Liabilities 13566.54 17945.29 25410.23 27178.07 36177.30 43668.93
Capital/ Shareholders' equity
Paid up Capital 450.00 675.00 810.00 945.00 1247.40 1309.77
Statutory Reserve 450.00 555.44 681.13 883.45 1045.08 1295.26
Other Reserves 40.00 40.00 40.00 40.00 40.00 40.00
Surplus in Profit and Loss Account 319.28 220.82 195.00 129.47 370.54 304.51
Total Shareholders' equity 1249.28 1491.26 1726.13 1052.92 2596.58 2982.59
Total capital and liabilities 14766.32 19436.56 27136.37 28230.99 38773.90 46651.53
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 26/95
1
1
Million Taka
2002 2003 2004 2005 2006 2007 2008
Interest Income 998.73 1219.39 1355.59 1781.04 2278.54 2866.57 3829.43
Interest on deposit and borrowings 599.25 692.08 816.98 983.98 1315.86 1928.47 2708.91
Net interest income 399.48 527.30 538.60 797.05 962.68 938.10 1120.51
Commission, exchange and brokerage 164.82 181.27 232.56 237.89 307.29 414.08 489.18
Other operating income 36.13 38.79 48.36 46.73 58.74 62.38 67.61
Total operating income 691.41 866.44 951.87 1244.22 1554.45 1621.05 2351.39
Salaries, Allowances etc 117.96 142.93 152.40 226.46 292.20 331.18 548.93
Depreciation and other non-cash
expenses23.47 23.74 26.42 33.37 43.17 44.83 52.94
Other operating expenses 67.65 83.38 83.82 111.65 39.23 44.79 53.44
Total operating expenses 209.08 250.05 262.45 371.48 462.44 529.94 817.27
Profit before provision 482.33 616.39 689.22 872.73 1092.01 1091.10 1534.11
Provision for loan & Advances 47.82 60.72 160.00 242.30 80.39 232.87 233.94Profit before tax 434.51 553.67 527.22 628.43 1011.62 808.14 1250.89
Provision for tax 182.97 317.28 235.74 342.94 467.46 545.83 747.10
Net income 251.54 236.39 291.74 285.49 291.74 282.96 549.95
Earning per share (Taka) 83.85 52.53 43.18 35.25 58.64 21.60 41.99
2.7 # RESOURCES AND CAPABILITIES
BASIC Bank Limited is well prepared to and capable of meeting the demand for a broad
range of banking services. It has got adequate resources, both human and physical, to provide
the customers with the best possible services.
Physical and technological resources
A great deal of investment for developing the physical resource base of the Bank has been
made. The Bank has its presence in all the major industrial and commercial hubs
of Bangladesh in order to cater to the needs of industry and trade. At present, there
are twenty-seven conveniently located branches throughout Bangladesh. There
are ten branches in the capital city of Dhaka, six in Chittagong and one each in Narayanganj,
Narsingdi, Rajshahi, Saidpur, Bogra, Khulna, Jessore, Sylhet, Moulvibazar, Comilla, and
Barisal.
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 27/95
1
1
Major features of these branches are:
• Fully computerized accounts maintenance.
• Well decorated air conditioned facilities.
• A fully operational computer network which is currently being implemented. The
work of Local Area Network (LAN) and Wide Area Network (WAN) installation
having reliable and secured communication between the branches and the Head
Office is in progress to facilitate any Branch Banking and ATM Services.
• Money counting machine for making cash transactions easy and prompt.
• Fifteen out of twenty six branches are authorized dealers of foreign exchange. This
facilitates speedy disposal of transaction of export and import trade.
•
Human Resources
BASIC Bank Limited has a well diversified pool of human resources which is composed of
people with high academic background. Also, there is a positive demographic characteristic -
most employees are comparatively young in age yet mature in experience. As of December
2003 the total employee strength is 523. The strength is 435 excluding the menial staff.
BASIC Bank Limited has been investing its resources with a view to developing an efficient
and professional work force. Two approaches are mainly used in this regard.
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 28/95
1
1
2.8 # ORGANOGRAM:
CHAIRMAN
Figure:1
GM
IndustrialCredit
Division
Personal
Division
Central
Accounts
Establishment
&
GM(Audit & Inspection)
DEVELOPMENT
GM
Credit
Division
International
Division
BOARD OF DIRECTORS
Manager
Deputy Manager
Assistant Manager
Assistant Officer
Senior Officer
Officer
Clerical Staff:• Banking Staff • Go-down Staff
Non-Clerical Staff:• Messenger Staff
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 29/95
1
1
Activities:
A. Industrial Credit
Million Taka1997 1408.25
1998 2028.50
1999 2062.19
2000 2735.50
2001 3769.00
2002 2735.50
2003 6252.00
2004 7691.20
2005 9987.502006 12243.56
2007 13901.40
2008 17226.40
Outstanding at year end
BASIC Bank's services are directed towards the entrepreneurs in the small industries sector.
A small industry, as per Industrial policy 1999 approved by the Cabinet, has been defined as
an industrial undertaking whose total fixed investment is less than Tk.100 million.
The industrial loan reflected a significant growth of 23.91 percent over the previous year.
Total outstanding industrial loans including term and working capital stood at Taka
17,226.40 million at the end of 2008 compared to Taka 13,901.40 million of 2007. Total
outstanding term loan stood at Taka 6,206.75 million as on December 31, 2008
compared to Taka 5,055.58 million in 2007 reflecting a growth of 22.77 percent. The
outstanding working capital finance extended to industrial units stood at Taka 11,784.08
million at the end of the reporting period compared to Taka 9,525.98 million in 2007.
Growth rate here was 23.70 percent. BASIC Bank's services are specially directed
towards promotion and development of small industries. Its exposure to small and medium
industries sector accounted for 56.52 percent of the total loans and advances. During the
year total of 87 projects were sanctioned term loan. Out of which 26 were new and the
rest were under BMRE of the existing projects. As on 31 December 2008, 801 projects
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 30/95
1
1
were in the portfolio of the bank. The textile sector including garments being one of the
major contributors to national economy dominated the loan portfolio of the Bank. Other
sectors financed include engineering; food and allied industries; chemicals, pharmaceuticals
and allied industries; paper, board, printing and packaging; glass; ceramic; and other non-
metallic goods and jute products. Recovery rate of project loan was 90.81 percent.
B. Commercial Credit:
The Bank also supports development of trade, business and other commercial activities in the
country. It covers the full range of services to the exporters and importers extending various
facilities such as cash credit, export cash credit, packing credit, short term loans, local and
foreign bills purchase facilities. As on December
31, 2008 total outstanding commercial loans stood at Taka
9,278.26 million Compared to Taka 7,681.74 million in 2007.
(Source: Annual Report 2008, BASIC Bank Ltd.)
Figure 1: Trend of Commercial Credit
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 31/95
1
1
C. Micro Credit:
BASIC Bank launched a Micro Credit Scheme in 1994. Micro Credit Scheme provides for the poor for generation of employment and income on a sustainable basis particularly in
urban and suburban areas. The Bank follows three systems of credit delivery.
These___are:
1. Lending to the NGOs who on-lend to their members. At present there are 15 such NGOs.
2. Lending direct to the targets groups or ultimate borrowers under the Bank’s own
management.
3. Lending direct to the member-borrowers and NGOs providing nonfinancial services like
group formation and monitoring and supervision on exchange for a supervision fee.
At the end of 2008, total amount of Taka 764.46 million remained outstanding as against
Taka 680.13 million in 2007. Recovery rate during this period remained at a satisfactory
level of 98.00 percent.
(source: Annual Report 2007, BASIC Bank Ltd.)
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 32/95
1
1
Figure 2: Trend of Micro Credit
D. Foreign Trade:
The bank achieved substantial growth in export in 2008 and the performance of the bank in
import business was also satisfactory. The Bank handled total export business of Taka27,359.77 million and import business of Taka 22,270.87 million in 2008. The export and
import business grew by 28.65 percent and 32.60 percent respectively. Major items of exports
were garments, jute products, textile, leather etc. Items of import included mainly industrial
raw materials, garments accessories, capital machinery, food items and other essential
commodities.
(Source: Annual Report 2007, BASIC Bank Ltd.)
Figure 3: Growth of Import & Export
The Bank become a proud member of SWIFT (Society for Worldwide Interbank Financial
Telecommunication) that would pave the way to achieving uninterrupted communication
related to banking for international trade business and fund transfer.
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 33/95
1
1
E. Other Activities:
The Bank provides services for remittance, underwriting, guarantee, public offering of shares
etc. Then also provides funds to investment and leasing companies. Then Bank has recently
created a venture capital fund for equity support to innovative but risky projects.
C redit Rating
BASIC Bank Limited
Credit Rating Report (Entity Rating)
Year Long Term Short Term
2008 AA-1 ST-1
Credit Rating Information and Services Limited (CRISL) has assigned AA- (pronounced as
double A minus) rating in the long term and ST-1 rating in the short term to the Bank for the
year 2008
Banks rated AA- in the long term are adjudged to be of high quality, offer higher safety and
have high credit quality. This level of rating indicates a corporate entity with a sound credit
profile and without significant problems. Risks are modest and may vary slightly from time
to time because of economic conditions
Banks rated ST-1 in the short term are considered as the highest certainty of timely payment.
Short-term liquidity including internal fund generation is very strong and access to
alternative sources of funds is outstanding. Safety is almost like risk free Government short-
term obligations
BASIC Fortune
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 34/95
1
1
BASIC Bank Limited has launched a Monthly Deposit Scheme (BASIC Fortune) on April
14, 2009. At present, this scheme is available in the following online branches:
Bangshal, Dhanmondi, Karwanbazar, Uttara, Gazipur Chowrasta, Rajshahi, Rangpur,
Saidpur, Comilla, Jessore, Barisal, Chowmuhana, Sholashahar, CEPZ, Dewanhat, Dilkusha,
Narsingdi,Sirajganj, Moulovibazar, Mirpur, Babubazar, Tanbazar, Zindabazar, Bogra,
Gulshan, Khatunganj, Asadganj, Khulna, Shantinagar, Jubilee Road and Main branch.
2.9 # Performance at a Glance of Shanti
Nagar Branch:
i) Performance of Shanti Nagar Branch at a glance as on January 31, 2008
Table: 2
Ke y Areas Amount in Lac Tk.
Total Asset 4891.00Total Deposit 4352.16
Total Advance
2716.36
Import 85.32
Export 74.51Remittance inward 51.05
Remittance outward 45.59Total Income 35.67Total Expenditure 35.06Gross profit 0.61
Source: Shanti Nagar Branch, BASIC Bank Ltd.
ii) Deposit of Shanti Nagar Branch as on January 31, 2008 Table: 3
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 35/95
1
1
Type of Accounts Amount in LacTk. % of Total Deposits
Current Deposit 174.95 4.02%
Short Term Deposit
(STD)
11.40 0.26%
Sundry Deposit 37.80 0.87%
Term Deposit
3927.72 90.25%
Savings Bank Deposits 200.29 4.60%
Total Deposits 4352.16 100.00%
Source: Shanti Nagar Branch, BASIC Bank Ltd.
iii) Branch’s Foreign Exchange position as on January 31, 2008 Table: 4
Key Areas Amount in Lac Tk. % of total Business
Import 8885.32 D 53.38%
Export D74.51 46.62%
Remittance 0.00
Total 159.83 100.00%
Source: Shanti Nagar Branch, BASIC Bank Ltd.
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 36/95
1
1
3.1 #GENERAL BANKING
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 37/95
1
1
General banking is the starting point of all the banking operations. It is the department, which
provides day-to-day services to the customers Main Functions of general banking department
are the followings:
1. Accounts Opening Section
2. Accounts Section.
3. Local Remittance Section
4. Collection And Clearing
5. Cash Section
3.1.1 # ACCOUNTS OPENING SECTION
ACCEPTING DEPOSIT
Bank is a financial intermediary, which mobilizes fund from surplus unit and allocates it to
deficit unit. Surplus unit means the people who have surplus money and willingness to save.
Deficit unit means the people who need money for industry, trade, business, or for personal
use but don’t have sufficient money of their own for such purposes . Bank mobilizes the fund
by accepting deposits from depositors and allocates the fund by providing loan to borrower .
Banker-customer relationship begins with the opening of an account by the customer.
Opening of an account binds the same into a contractual relationship. But the selection of
customer is very crucial. In fact, fraud and forgery of all kinds start by opening of an account
by the customer (s). So, the bank takes extra care in its selection. One of the basic functions
of commercial banks is to accept deposits. For accepting deposits both demand and time,
BASIC Bank (Shanti Nagar Branch) offers the following types of accounts-
TYPES OF ACCOUNTS WITH TERMS AND CONDITIONS
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 38/95
1
1
This part covers only following types of accounts-
1. Savings Bank Account
2. Current Account
3. Short Term Deposit (STD) Account
SAVINGS BANK ACCOUNT
This deposit is primarily for small-scale savers. Hence, there is a restriction on withdrawals
in a week. Heavy withdrawals are permitted only against prior notice. Some Important Points
are as follows-
GENERAL CHARACTERISTICS
As per BB instruction 90% of SB deposits are treated as time liability and 10% of it as
demand liability
a. Minimum opening deposit of Tk.5000/= is required;
b. Interest is paid on this account. BASIC offers a reasonable rate of interest for SB
A/C.
c. Generally, banks require a 7-day prior notice if the total amount of one or more
withdrawals on any date exceeds 25% of the balance of the account unless is given.
d. The number of withdrawals over period of time is limited. Only two withdrawals are
permitted per week . If there are more than two withdrawals are made in a week, no
interest will be paid on rest amount for that month.
e. Generally householders, individuals and other small-scale savers are the clients of this
account
CURRENT ACCOUNT
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 39/95
1
1
Current account is purely a demand deposit account. There is no restriction on withdrawing
money from the account. It is basically justified when funds are to be collected and money is
to be paid at frequent interval. It is most suitable for private individuals, traders, merchants,
importers and exporters, mill and factory owners, limited company’s etc. Some Important
Characteristics are as follows-
a. A minimum balance of TK .5000 has to be maintained.
b. CD accounts are unproductive in nature as banks loanable fund is concerned.
Sufficient fund has to be kept in liquid form, as current deposits are demand liability.
c. Thus huge portion of this fund become non-performing. For this reason banks do not
pay any interest to CD Accountholders.
d. There is no restriction on the number and the amount of withdrawals from a current
account.
STD (SHORT TERM DEPOSIT) ACCOUNT
Normally various big companies, organizations, Government Departments keep money in STD
account. Frequent withdrawal is discouraged and requires prior notice. In BASIC, customers
usually give an instruction that their current account will be debited whenever its deposited
amount crosses a certain limit and this amount will be transferred to the STD account
COMMON FORMALITIES REQUIRED FOR EVERY ACCOUNT
Duly filled up Account Opening Form.
Introducer’s signature on Account Opening Form to be verified by Manager under
full signature.
Two copies of passport size photograph of account opener(s) duly attested by the
introducer.
3.1.2# ACCOUNTS SECTION
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 40/95
1
1
Accounts department maintains all records of transactions and all types of statement. At the
end of transaction hour all concerned section sends vouchers of transactions to this
department. Accounts department compares all figures/ amount, contents of transactions with
supplementary statement prepared by computer. If any discrepancy arises regarding any
transaction then this department reports to the concerned department. Following are theactivities of accounts department:
To record all transaction in the cash book.
• To record all transaction in the cash book.
• To prepare daily, weekly, monthly, half-yearly and yearly fund position.
• To prepare all kinds of statements related to Bangladesh Bank, Head office and
National Board of Revenue (NBR).
• To prepare monthly salary statement, provident fund statement and administrative
expenditure statement.
• To make charges for different types of duty.
3.1.3# LOCAL REMITTANCE SECTION
Cash remitting from one place to another is risky. So, Banks remit funds on behalf of thecustomer (s) to save them from any awkward happening through network of their branches.
There are three modes of remitting funds. These are–
Pay Order (PO)
Demand draft (DD)
Telegraphic Transfer (TT)
Call Deposit Receipt (CDR).
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 41/95
1
1
PAY ORDER (PO)
Pay order is an instrument, used to remit fund within a clearing zone. Unlike cheque, there is
no possibility of dishonoring PO. The PO can only be encashed through the branch that has
issued the instrument.
PAY ORDER ISSUING PROCESS
For issuing a PO, following formalities are to be maintained. These are-
• Duly filled up the application form by the customer.
• Deposit money either in cash or by cheque with necessary charges.
• Prepare the instrument and make necessary entries in the Bills Payable Register
where payee’s name, date, PO no. etc are noted.
•Deliver the instrument to the customer after scrutinized and approved byauthority by taking signature of the customer on the counterpart.
DEMAND DRAFT (DD)
DD is called ‘Banker’s Draft’. It is an instrument, issued by a particular branch, drawn on
another branch of the same bank, instructing to pay a certain sum of money. It is very popular
instrument for remitting fund from one corner of a country to another.
If DD amount is more than Tk.50000/=, a test code is given on IBCA. The a/c treatments will be-
When DD is issued:
Cash/Customer A/C……………………Debit
H/O A/C ‘X’ branch…………………………Credit
Income A/c commission………………..……Credit.
TELEGRAPHIC TRANSFER (TT)
Sometimes the remitter of the funds requires fund immediately. In that case, the banker is
requested to remit the funds telegraphically. Different modes are Telegram, Telephone, Telex
and Fax. Telegraphic Transfer is the most rapid and convenient but expensive method. The
drawer and the payee should have accounts with BASIC bank. TT is issued against cash,
cheque, and letter of instruction
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 42/95
1
1
3.1.4# COLLECTION AND CLEARING SECTION
Customers do pay and receives bill from their counter party as a result of transaction . BASIC
Bank Limited collects the bills on behalf of their customers. Collection mechanisms in
BASIC Bank are clearing, Outward Bill For Collection, Inward Bills for Collection.
CLEARING
When the bill is within the range of the clearinghouse it is sent for collection through clearing
section. As far as safety is concerned customers get crossed cheque for the transaction
Crossed check can’t be encashed from the counter; rather it has to be collected through
banking channel i.e., clearing. If a client of BASIC Bank received a check of another bank
which is located within the clearing range and deposit the instrument in his account at
BASIC Bank. Then BASIC Bank will collect the money through clearing house. After received the check BASIC Bank will credit client account. However, the amount is credited
in the customer a/c but he will not get the money until the check is honored.
3.1.5 # CASH SECTION
Cash is the lifeblood of all financial activities. Cash section is a very sensitive point of the
branch. This section deals with all types of negotiable instruments and it includes vault, used
as the store of cash, instruments. The vault is insured up to Tk.20 lac. Insured amount yet to
be enhanced to Tk. 40 lac. Operation of this section begins when the banking hour starts.
Cash officer begins his/her transaction with taking money from the vault, known as the
opening cash balance. Vault is kept in a more secured place. The amount of opening cash
balance is entered into a register. After whole days’ transaction, the surplus money remains
in the cash counter is put back in the vault and known as the closing balance. If the cash
s tock goes beyond this l imi t , the excess cash is then t ransfer red to BASIC
bank main branch. The main functions of this section are-
1. Cash Receipt
2. Cash Payment
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 43/95
1
1
CASH RECEIPT
Cash receipt procedure is given below-
i. The depositor first fills up the Deposit-in-Slip.
ii. Depositor deposits the money.
iii. Officer receives the money, counts and then enters in the Cash Receipt Register,
and finally signs with seal and dates the deposit-in-slip.
CASH PAYMENT
Some important check points for making the payment are as follows-
1. Endorsement
Endorsement is done by putting signature of the drawer on the back of the negotiable
instrument for the purpose of negotiation. By ‘blank endorsement’, an order instrument is
made as ‘bearer’
2. Crossing
Generally two types of crossing are practiced, namely- General Crossing and Special
Crossing. Basically it gives a direction to the paying bank not to pay the check amount
over the counter. General crossing includes ‘A/C payee’ crossing only. Drawing two parallel and transverse lines do it. On the other hand, special crossing is like general
crossing but in addition bank name is also mentioned. This gives the direction to the
same to pay the check only to the banker, whose name appears in the crossing or to his
agent.
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 44/95
1
1
3.2# Foreign Exchange- its meaning and definition:
Foreign exchange refers to the process or mechanism by which the currency of one country is
converted into the currency of another country. Foreign exchange is the means and methods by which rights to wealth in a country’s currency are converted into rights to wealth in
another country’s currency. In banks when we talk of foreign exchange, we refer to the
general mechanism by which a bank converts currency of one country into that of another.
Foreign trade gives rise to foreign exchange. Modern banks facilitate trade and commerce by
rendering valuable services to the business community. Apart from providing appropriate
mechanism for making payments arising out of trade transactions, the banks gear the
machinery of commerce, especially in case of international commerce, by acting as a useful
link between the buyer and the seller, who are often too far away from and too unfamiliar
with each other. According to foreign exchange regulation act 1947, “Anything that conveys
the right to wealth in another country is foreign exchange”. Foreign exchange department
plays significant roles through providing different services for the customers. Opening or
issuing letters of credit is one or the important services provided by the banks.
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 45/95
1
1
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 46/95
1
1
4.1 # Foreign Exchange :
Foreign Exchange means foreign currency and it includes any instrument drawn, accepted,
made or issued under clause (13), Article 16 of the Bangladesh Bank Order, 1972. All
deposits, credits and balances payable in any foreign currency and draft, travelers cheque,letter of credit and bill of exchange expressed or drawn in Bangladeshi currency but payable
in any foreign currencies.
Bangladesh Bank issues Authorized Dealer (AD) license by observing the bank’s
performance and also the customers associated with the bank for conducting foreign
dealings.
Figure: 4
I m p o r t S e c t io n E x p o r t S e c t i o n R e m i t t a n c e S e c t i o n
F o r e i g n E x c h a g e
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 47/95
1
1
Foreign Exchange
Export Import Remittance
1. Export L/CScrutiny
2. BTB L/Copening
3. Acceptance ofBTB LC
4. Payment ofBTB LC
5. Export BillNegotiation &Repatriation ofExport proceed.
6. Statement,
Returns &Correspondence related toExport.
1. L/C Opening2. Document
checking3. L/C Payment
(Lodgment andretirement)
4. Statement,Returns related toImport
1. Inward &Outward
Remittance2. Statement,
Correspondence &Returns related toRemittance
1. Overall supervision of Local billnegotiation
2. Purchase of Local Bill3. Adjustment of Local Bill
2. Cash Incentive
1. L/C advising & Transfer
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 48/95
1
1
Figure: 5 Foreign Exchange Market Operations
4.2 # Export Section :
Foreign Exchange Regulation Act, 1947 nobody can export by post and otherwise than by
post any goods either directly or indirectly to any place outside Bangladesh, unless a
declaration is furnished by the exporter to the collector of customs or to such other person as
the Bangladesh Bank (BB) may specify in this behalf that foreign exchange representing the
full export value of the goods has been or will be disposed of in a manner and within a period
specified by BB.
Bangladesh exports a large quantity of goods and services to foreign households . Readymade
textile garments (both knitted and woven), Jute, Jute-made products, frozen shrimps, tea are
the main goods that Bangladeshi exporters exports to foreign countries. Garments sector is
the largest sector that exports the lion share of the country's export . Bangladesh exports most
of its readymade garments products to U.S.A and European Community (EC) countries.
Bangladesh exports about 40% of its readymade garments products to U.S.A. Most of the
exporters who export BASIC Bank are readymade garment exporters. They open export L/Cs
here to export their goods, which they open against the import L/Cs opened by their foreign
importers.
SCRUTINY AND NEGOTIATION OF EXPORT BILL
Bank deals with documents not with goods. The bankers are to ascertain that the documentsare strictly as per terms of L/C. Before negotiation of the export Bill the bankers are toscrutinize and examine each and every document’s with care. Negligence on that part of the bankers may result in non repatriation or delay in realization of export proceeds are incorrectdocuments may put the importers abroad into unnecessary troubles.
The scrutiny of the Bill of Exchange (Draft) and other related documents should ensure
that.
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 49/95
1
1
The documents are presented for negotiation before the expiry of the relative credit.
The amount does not exceed the amount available under the credit.
All the documents stipulated in the L/C are submitted.
The corrections and alteration are properly authenticated in all documents.
Export documents checking:
i. General verification:
a) L/C restricted or not
b) Exporter submitted documents before expiry date of the credit.
c) Shortage of documents etc.
ii. Particular verification:
a) Each and every documents should be verified with the L/C.
iii. Cross verification:
a) Verified one documents to another.
While checking the export documents following things must be taken in
consideration.
L/C terms:
Each and every clause in the L/C must be complied with meticulously and ensure the
following:
i. That the documents are not state.
ii. That the documents are negotiated within the L/C validity, it a credit expire on a
recognized bank holiday its life is automatically become valid up to the next works
day.
iii. That the documents value does not exceeds the L/C value.
Draft/Bill of Exchange
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 50/95
1
1
Draft is too examined as under.
i. Draft must be dated
ii. It must be made out in the name of the beneficiary’s bank or to be endorsed to the bank.
iii. The negotiating bank must verity the signature of the drawer.
iv. Amount must be tallied with the invoice amount.
v. It must be marked as drawn under L/C No……. dated……. issued by…….Bank.
Presentation of export documents for negotiation:
After shipment, exporter submits the following documents to BASIC Bank for negotiation.
a. Bill of Exchange or Draft; b. Bill of Ladingc. Invoice
d. Insurance Policy/Certificatee. Certificate of originf. Inspection Certificateg. Consular Invoiceh. Packing Listi. Quality Control Certificate j. G.S.P certificate
4.3 # Import Section :
Imports are foreign goods and services purchased by consumers, firms & Governments inBangladesh. To import, a person should be competent to be a ‘importer’. According toImport and Export Control Act, 1950, the Office Of Chief Controller Of Import and Export provides the registration (IRC) to the importer.
BASIC Bank checks the documents. The usual documents are,-
i. Invoice
ii. Bill of lading
iii. Certificate of origin
iv. Packing list
v. Weight list
vi. Shipping advice
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 51/95
1
1
vii. Non-negotiable copy of bill of lading
viii. Bill of exchange
ix. Pre-shipment inspection report
x. Shipment certificate
Import Procedures:
1. Registration with CCI&E
a. For engaging in international trade, every trader must be first registered with the
Chief Controller of Import and Export.
b. By paying specified registration fees and submitting necessary papers to the
CCI&E. the trader will get IRC (Import Registration Certificate).After obtaining
IRC, the person is eligible to import.
2. Purchase Contract between importers and exporter:
a. Now the importer has to contact with the seller outside the country to obtain the
proforma invoice / indent which describes goods.
b. Indent is got through indenters a local agent of the sellers.
c. After the importer accept the preformed invoice, he makes a purchase contract
with the exporter declaring the terms and conditions of the import.
d. Import procedure differs with different means of payment. In most cases import payment is made by the documentary letter of credit (L/C) in our country.
3. Collection of LCA form:
Then the importer collects a Letter of Credit Authorization (LCA) form BASIC Bank, Shanti
Nagar Branch.
4. Opening a Letter of Credit (L/C)
In international environment, buyers and sellers are often unknown to each other . So
seller always seek guarantee for the payment for his goods exported. Here is the role of bank . Bank gives export guarantee that it will pay for the goods on behalf of the buyer .This guarantee is called Letter of Credit. Thus the contract between importer and exporter is given a legal shape by the banker by its ‘Letter of Credit’ .
a. Parties to Letter of Credit
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 52/95
1
1
1. Importer ( Buyer)/ Applicant
2. The issuing Bank (Opening Bank)
3. The Advising Bank ( Notifying Bank)
4. Exporter /Seller ( Beneficiary)
5. Confirming Bank
6. Negotiating Bank
7. The paying/Reimbursing? Accepting/Remitting Bank
Applicant:
The person/Body who requests the bank (opening bank) to issue the letter of credit. As
per instruction and on behalf of applicant, the bank opens L/C in line with the terms and
condition of the seller contract between the buyer and the seller.
Opening /Issuing Bank:
The Bank which open /issue letter of credit on behalf of the applicant/importer. Issuing
bank obligation is to make payment against presentation of documents drawn strictly as
per terms of the L/C.
Advising /Notifying Bank :
The Bank through which the L/C is advised / forward to the beneficiary (exporter). The
responsibility of advising bank is to communicate the L/C to the beneficiary after
checking the authority of the credit. It acts as an agent of the issuing bank without having
any engagement on their part.
Beneficiary:
Beneficiary of the L/C is the party in whose favor the letter of credit is issued. Usually
they are the seller or exporter.
Confirming Bank:
The Bank which under instruction the letter of credit adds confirmation of making
payment in addition to the issuing Bank. It is done at the request of the issuing having
arrangement with them. This confirmation constitutes a definite undertaking on the part
of confirming bank in addition to that of issuing bank.
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 53/95
1
1
Negotiating Bank:
Negotiating Bank is the bank, which negotiates the bill and pays the amount of the
beneficiary. The advising bank and the negotiating bank may or may not be the same.
Sometimes it can also be confirming bank .
Reimbursing/Paying Bank:
The Bank nominated in the letter of credit by the issuing bank to make payment
stipulated in the document, complying with reimbursing bank.
b. Application For L/C limit:
Before opening L/C, importer applies for L/C limit. To have an import L/C limit, an
importer submits an application to the Department of BASIC Bank Limited
furnishing the following information, -
i. Full particulars of bank account maintained with BASIC Bank Shanti Nagar
branch.
ii. Nature of business
iii. Required amount of limit
iv. Payment terms and conditions
v. Goods to be imported
vi. Offered security
vii. Repayment schedule
A credit Officer scrutinizes this application and accordingly prepares a proposal (CLP) and
forwards it to the Head Office Credit Committee (HOCC). The Committee, if satisfied,
sanctions the limit and returns back to the branch. Thus the importer is entitled for the limit.
c. The L/C Application:
After getting the importer applies to the bank to open a letter of credit on behalf of
him with required papers.
i. Documentary Credit Application Form:
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 54/95
1
1
BASIC Bank provides a printed form for opening of L/C to the importer . This form is
known as Credit Application form. A special adhesive stamp is affixed on the form .
While opening, the stamp is cancelled. Usually the importer expresses his desire to open
the L/C quoting the amount of margin in percentage.
ii. Proforma Invoice: It states description of the goods including quantity, unit price
etc.
iii. The insurance cover note: The name of issuing company and the insurance number
are to be mentioned on it.
iv. The Letter of credit authorization (LCA) form: LCA form should be duly attested.
v. The Form-IMP.
vi. Tax Information Certificate
vii. Forwarding for Pre-Shipment Inspection (PSI):
Importer sends forwarding letter to exporter for Pre-Shipment Inspection . But all
types of goods do not require PSI.
5. Securitization of L/C Application:
The BASIC Bank Official scrutinizes the application in the following manner, -
a. The terms and conditions of the L/C must be complied with UCPDC 500 and
Exchange Control & Import Trade Regulation.
b. Eligibility of the goods to be imported.
c. The L/C must not be opened in favor of the importer .
d. Radioactivity report in case of food item.
e. Survey report or certificate in case of old machinery
f. Carrying vessel is not of Israel or of Serbia- Montenegro
g. Certificate declaring that the item is in operation not more than 5 years in case of car .
Examination of shipping documents:
One of the basic principles of documentary credit is that all parties deal with document and
not with goods (Articles 6 of UCPDC-600). That is why the documents should be scrutinized
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 55/95
1
1
properly. If any discrepancy in the documents is found, that is to be informed to the party . A
checklist may be followed for examining the documents.
4.4# Major Discrepancies:
GENERAL
1. Late shipment2. Late presentation3. L/C expired4. L/C over-drawn5. Partial shipment or transshipment beyond L/C terms.
BILL OF EXCHANGE (B/E)
1. Amount of B/E differ with invoice.2. Not drawn on L/C issuing Bank.
3. Not signed4. Tenor of B/E not identical with L/C.5. Full set not submitted.
COMMERCIAL INVOICE (C/I)
1. Not issued by the Beneficiary.
2. Not signed by the Beneficiary.
3. Not made out in the name of the Applicant.
4. Description, Price, quantity, seals terms of the goods not corresponds to the Credit.
5. Not marked one fold as Original.
6. Shipping Mark differs with B/L & Packing List.
PACKING LIST
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 56/95
1
1
1. Gross Wt., Net Wt. & Measurement, Number of Cartoons/ Packages differ with
B/L.
2. Not market one fold as Original.
3. Not signed by the Beneficiary.
4. Shipping marks differ with B/L.
BILL OF LADING/ AIRWAY BILL ETC (TRANSPORT DOCUMENTS)
1. Full set of B/L not submitted.
2. B/L is not drawn or endorsed to the Order of BASIC BANK LTD.
3. “Shipped on Board”, “Freight Prepaid” or “Freight Collect” etc. notations are not
marked on the B/L.4. B/L not indicate the name and the capacity of the party i.e. carrier or master, on whose
behalf the agent is signing the B/L.
5. Shipped on Board Notation not showing name of Pre-carriage vessel/intended vessel.
6. Shipped on Board Notation not showing port of loading and vessel name (In case B/L
indicates a place of receipt or taking in charge different from the port of loading.)
7. Short Form B/L
8. Charter party B/L
9. Description of goods in B/L not agree with that of Invoice, B/E & P/L
10. Alterations in B/L not authenticated.
11. Loaded on Deck.
12. B/L bearing clauses or notations expressly declaring defective condition of the goods
and / or the packages.
OTHERS
1. N.N. Documents not forwarded to buyers or forwarded beyond L/C terms.
2. Inadequate number of Invoice, Packing List, B/L & Others submitted.
3. Short shipment Certificate not submitted.
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 57/95
1
1
INVOICE
It is to be scrutinized to ensure the following:
1. The Invoice is addressed to the Importer.
2. The full description of merchandise must be given in the invoice strictly as per
L/C.
3. The price, quality, quantity, etc. must be as per L/C.
4. The Invoice must be language in the language of L/C.
5. No other charges are permissible in the Invoice beyond the stipulation on the
L/C.
6. The amount of draft and Invoice must be same and within the L/C value.
7. If L/C calls for consular invoice, then the beneficiary’s invoice is not sufficient.
8. Number of Invoice will be submitted as per L/C.
9. The shipping mark and number of packing list shown in the B/L must be
identical with those given in the Invoice and other documents.
10. The Invoice value must not be less than the value declared in EXP Forms.
11. Invoice amount must be correct on the basis of price, quantity as per L/C.
12. Invoice amount, indicate sale terms/ Income terms VIZ FOB, CFR, CIF etc.
13. Consular Invoice must be stamped by the local consulate/embassy of the country
to which the goods are imported.
OTHER DOCUMENTS
Beneficiary statement, VISA/Export License issued by EPB, Certificate of Origin, Weight
Certificate, Packing List, Inspection Certificate.
Certificate of analysis, quality certificate, MCD duly signed and any other documents
required by L/C each of these certificates/documents conform to the goods invoice and are
relevant to L/C.
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 58/95
1
1
Negotiating Bank will check the above documents whether it is as per L/C or not. If
Negotiating Bank find everything in order or as per export L/C, bank will negotiate the
document and will disburse the generated fund as per Banks norms.
If the Negotiating Bank will find any discrepancies in the documents they will send the
documents on collection or they can negotiate under reserve by the request of the exporter or
they can seek permission/Negotiation authority from issuing Bank to allow Negotiating Bank
to negotiate the documents despite the discrepancies. L/C issuing Bank will inform the
matter to buyer, if the buyer accepts the discrepancies mentioned by Negotiating Bank,
issuing bank will authorize the Negotiating bank to negotiate the discrepant documents.
COLLECTION DOCUMENTS
Normally negotiating Bank will send the documents on collection basis mainly for the
following discrepancies:
1. L/C expired;
2. Late shipment;
3. Late presentation;
4. L/C overdrawn;
5. Unit price differ between L/C and Commercial Invoice;
6. Consignee Name and address differ between L/C and other documents;
7. Discrepancies in B/L;
8. Any other Major discrepancies.
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 59/95
1
1
4.5# Foreign Remittance Section:
The basic function of this department are outward and inward remittance of foreign exchange
from one country to another country. In the process of providing this remittance service, it
sells and buys foreign currency. The conversion of one currency into another takes place at
an agreed rate of exchange, in where the banker quotes, one for buying and another for
selling. In such transactions the foreign currencies are like any other commodities offered for
sales and purchase, the cost (convention value) being paid by the buyer in home currency, the
legal tender.
Workings of this department:
Overall supervision of Foreign Remit. Dept.
Foreign TT payment & Purchase of F. Drafts, preparations of F.B.P. (Foreign Bill
Purchased).
Issuance of outward TT & FDR
Issuance of proceed responding certificate (PRC).
Foreign Collection, Bangladesh Bank Clearing Check Collection, which comes from
all branch of BASIC Bank Limited.
Withdrawal from F.C. A/C.
Encashment of T.C. & Cash Dollar and Sterling Pound.
Deduction of Tax and VAT. On behalf of Bangladesh Bank.
Preparation of related statements including convertible Taka Accounts.
Preparation of IBCA & IBDA and Balancing of Collection and other special
assignment as desired by Department in charge.
Balancing of Account Statements.
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 60/95
1
1
Compliance of audit & inspection.
Statement of all related works submitted to Bangladesh Bank .
Inward Foreign Remittance:
Inward remittance covers purchase of foreign currency in the form of foreign T .T., D.D, T.C.
and bills etc. sent from abroad favoring a beneficiary in Bangladesh . Purchase of foreign
exchange is to be reported to Exchange control Department of Bangladesh bank on Form-C.
Outward Foreign Remittance:Outward remittance covers sales of foreign currency through issuing foreign T .T. Drafts,
Travelers Check etc. as well as sell of foreign exchange under L/C and against import bills
retired. Sale of foreign exchange is reported to Exchange control Department of Bangladesh
Bank on form T/M.
Foreign exchange means foreign currency and includes all deposits , credits and balances
payable in foreign currency as well as foreign currency instruments such as Drafts, T.C.s, bill
of exchange, and Letters of Credit Payable in any Foreign Currency. All foreign exchange
transactions in Bangladesh are subject to exchange control regulation of Bangladesh Bank .
Foreign Remittance Department deals with the following instruments:
Cash
Remittance
(Dollar /
Pound)
Sell
Bank sells Dollar/Pound for using in abroad by the
purchaser. The maximum amount of such sell is
mentioned in the Bangladesh Bank publication of
‘Convertibility of Taka for Currency Transactions in
Bangladesh.
Purchase
Bank can purchase dollar from resident and non –
resident Bangladeshi and Foreigner. Most dollars
purchased comes from realization of Export Bill of
Exchange.
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 61/95
1
1
Telex
Transfer Outward TT
It remits fund by tested TT via its foreign
correspondence bank in which it is maintaining its
NOSTRO Account.
Incoming TT
It also makes payment according to telegraphic message
of its foreign correspondence bank from the
corresponding VOSTRO Account.
Foreign
Demand
Draft
Foreign
Demand
Draft
Bank issue Demand Draft in favor of purchaser or any other
according to instruction of purchaser. The payee can collect it for
the drawee bank in which the Issuing bank of Demand Draft holds
its NOSTRO Account. Bank also makes payment on DD drawn on
this bank by its foreign correspondence bank through the VOSTRO
Account. The procedure concerning issue of FDD is same as issue
of Travelers check except that the customer is not required to
submit his passport.
Following steps to be followed in payment of FDD:
At first the FDD is to be crossed.
Serial number is given.
Forwarding letter to the bank with which the bank has
agreement.
Party is given the cash or his account is credited.
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 62/95
1
1
From the above discussion we may conclude the Foreign Exchange Procedures as following:
(11) Document Placement
Offers Proforma Invoice (1)
Offers Indent (1)
Request for Forward Document
L/C opening (2) (8)
Present Inform about L/C
Documents (6) (5)
After Shipment
Forward L/C
(4)
Present Document
Order Claim for (9) (10)
Of (3) Payment Payment Payment
Importer
IssuingBank/Opening
Bank
Exporter
Local Agent
Port
AdvisingBank/Negotiating
Bank
Foreign A/C maintainingBank/
Reimbursement Bank
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 63/95
1
1
Figure: 6 Foreign Exchange Procedures
4.6 # Identification of Documents Used in
Foreign Exchange Banking:
The following Documents are used in Export:
• Bill of Exchange or Draft;
• Bill of Lading
• Invoice
• Insurance Policy/Certificate
• Certificate of origin
• Inspection Certificate
• Consular Invoice
• Packing List
• Quality Control Certificate
• G.S.P. certificates
The following Documents are used in Import:
• Invoice
• Bill of lading
• Certificate of origin
• Packing list
• Weight list
• Shipping advice
• Non-negotiable copy of bill of lading
• Bill of lading
• Certificate of origin
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 64/95
1
1
The following documents are used in Foreign Remittance:
• Certificate of origin
• Remittance application
• ID card
4.7 # Appraisal of Export & Import Business of BASIC Bank Limited:
BASIC Bank's expertise in International Banking has a record of in-house growth over
more than one decade. With limited network of branches at home and also a few
correspondent banks worldwide it is handling the export-import business includinghomebound remittances.
The following graph shows year-wise export-import business of BASIC Bank Limited.
Though both export and import are increasing day-by-day, imports exceed exports
which ultimately drastically hit the country’s negative Balance of Trade.
Figure 7: Export & Import position
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 65/95
1
1
4.8 # Performance of Foreign ExchangeBusiness of BASIC Bank Limited
The following table shows year-wise performance of foreign exchange operations consistingitem-wised income generating avenues. All the figures show positive growth which generally
signals foreign exchange business as a profitable business in Bangladesh. Within all the
income avenues, income from exchange gain shows highest figure in taka value. Growth rate
here was 48.92%. Income from Letter of Credit and Letter of Guarantee were the second and
the third largest among the income avenues respectively.
Income from foreign exchange business of BASIC Bank limited
Particulars 2004 2005 2006 2007
Foreign bill Purchased 460,581 360,461 654,329 628,965
Local bill Purchased 3,833,860 4,485,557 8,646,784 9,041,451
Remittance 7,730,748 7,702,293 7,968,002 8,280,081
Letter of Guarantee 14,160,897 21,397,445 23,360,370 39,869,621
Letter of Credit 66,555,289 75,284,688 96,433,989 106,869,561
Bills for Collection 2,846,448 4,078,047 8,747,327 10,792,897
Acceptance 5,195,369 7,048,898 8,747,327 10,792,897
Export bill 442,527 538,912 599,694 570,415Miscellaneous(includescommission on sale of PSP,TC
1,353,563 2,387,148 3,312,449 6,491,052
(A)Total 102,579,282 123,283,450 157,649,764 191,235,959
(B) Exchange gain
(Profit on
exchange trading)
129,977,023 114,610,826 149,640,436 222,845,221
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 66/95
1
1
Total (A)+(B) 232,556,305 237,894,276 307,290,200 414,081,179
Revenues earnings from foreign exchange section are now graphically presented.
Figure 8: Income from Foreign bill purchased shown
Figure 9: Income from Local bill purchased shown
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 67/95
1
1
Figure 10: Income from Remittance shown
Figure 11: Growth of income from remittance shown
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 68/95
1
1
Figure 15: Income from Letter of Guarantee
Figure12: Income from Letter of Credit
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 69/95
1
1
Figure 13: Income from Bills for collection
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 70/95
1
1
Figure 14: Income from acceptance Figure 15: Income from Export bill shown
Figure 17: Income from Exchange gain (Profit on exchange trading)
Figure 18 shows the growth of income from exchange gain consisting profit on exchangetrading only. In 2005 growth was negative, but in 2006 & 2007, exchange gain shows positive trend.
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 71/95
1
1
Figure 18: Growth of Income from Exchange gain
BASIC Bank Limited
4.9 # Schedule of Charges Related toForeign Exchange
February-2010
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 72/95
1
1
Item Amount/Rate
1 Letter of Credit(a) L/C opening commission at sight i) 0.40% Per Quarter i) 0.40% Per Quarter
ii) Minimum Tk 500
(b) L/C opening Commission under Aid/Loan/Grant/Barter/Credit other than Deferred i) 0.40% Per Quarter ii) Minimum Tk 1000
(c) Usance Back to Back L/C opening Commission i) 0.40% Per Quarter ii) Minimum Tk 1000
(d) L/C opening Commission under Deferred payment
i) 0.50% Per Quarter ii) Minimum Tk 750
(e) L/C's at 100% Cash Margin i) 0.25% Per Quarter i) 0.25% Per Quarter
(f) Acceptance commission under deferred payment
i) 0.40% Per Quarter and 0.20% for local acceptance ii)Minimum Tk 750
Mailing Charge
2 If L/Cs are transmitted by
(a) Registered mail At actual(b)Courier Service At actual
SWIFT Charge
3 (a) If L/C is transmitted by full text SWIFT At actual
Amendment of L/C
4 (a) If Amendment includes increase of valueor extension of time
Same as L/C opening Commission
(b) Other Amendments Tk 750
(c) Amendment of L/C by mail Tk 750 + Mail Cost At Actual
(d) Amendment of L/C by courier service Tk 750 + Courier Cost At Actual
(e) If Amendment of L/C transmitted bySWIFT Tk 750 + SWIFT Charge At Actual
Foreign Correspondence Charges
5 (i) On beneficiaries account No charge. In case of nonpayment of charge by the beneficiary, actual charge to berealized from the importer
(ii) Foreign correspondent charges for negotiation and reimbursement
At actual
6 Charges for handling discrepant importdocuments
$50 for foreign document, Tk 500 for localdocument
7 Inquiry Fees relating to L/C s At actual
8 Collection of credit report on the beneficiaryof LCs
At actual plus +SWIFT Charge At Actual
9 Interest on PAD Interest rate applicable for commercial lending/as per sanction
Import Transactions
10 a) IMP Tk 100 per set
b) LCA Tk 150 per set
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 73/95
1
1
c) L/C application form Tk 300 (Plus cost of adhesive , stamp inaddition to above charges)
Export Transactions
11 a) Negotiation/Collection commission for export bills
0.15%
b) Advising L/Cs (both foreign & local) tolocal beneficiary
Tk 750 (Negotiable by Head Office)
c) Advising amendment of L/Cs(local &foreign)
Tk 750 (Negotiable by Head Office)
d)Transfer of export L/C (per endorsement/transfer)
Tk 750
e) Adding of confirmation to L/Cs advised byBASIC
At Actual
f) Overdue interest on FBP or LBP Int to be recovered beyond 21 days againstsight billsand beyond usance period against usance bill @ commercial interest rate as per schedule of interest/Bangladesh Bank Directives/Sanction Advice
g) Mailing on export document by post At Actual
h) Mailing of export document by courier At actual
i) SWIFT charges for sending paymentinstructionor reimbursement
At actual
Export Transaction
12 a) Issuance of "EXP" Form Tk 100 per set
b) Issuance of PRC Tk 500 or negotiable by HO management
c) Issuance of any other certificate Tk 500
d) Cash incentive document processing
charge
0.20% on disbursed amount, Min Tk
500/Bangladesh Bank DirectivesForeign Bank Guarantee
13 a) Issuance of Foreign Guarantee 0.50% per Qtr + Commission and charges of foreign correspondents + SWIFT charges AtActual
b) Issuance of Counter Guarantee 0.50% per Qtr/Negotiable with Counterpart +SWIFT charge At Actual
c) Issuance of shipping guarantee in absenceof original import document provided 100%margin in cash is built
Tk 1000
Foreign Remittances (Inward)
14 a) Collection of foreign currency plus
Draft/Cheque/TC drawn on Banks outside postage/courier charges Bangladesh
At actual as per foreign Bank's charge
Foreign Remittances (Outward)
15 a) Issuance of TC Ruling TT/OD selling rate plus 1% commission
b) Issuance of cash(FC) Ruling TT,OD Selling Rate
c) Issuance of FDD Ruling AT TT, OD Selling Rate
d) Cancellation of FDD/Cheque drawn onBangladesh Bank
Tk 300 per instrument plus SWIFTcharge/Postage
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 74/95
1
1
f) Issuance of TT abroad TT,OD Selling Rate + SWIFT Charge At Actual
Student (Studying Abroad)
16 a) File opening and handling charge For SAARC Country :Tk 1500For Other than SAARC Country :Tk 2500
Others
17a) FC DD on Bangladesh Bank Tk 300 per instance
b) Issuance of counter FC draft in favor of local bank
Minimum USD 50 and Maximum USD 100
c) Disposal of remitted fund on A/C of homeremittance
a) In local areas charges of PO & postage b) Other areas charges of DD/TT plus postage/SWIFTc) Same charges through IBCA also
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 75/95
1
1
5.1 # Corporate Social responsibility (CSR)
Today, Corporate Social Responsibility (CSR) is a fundamental part of business. The notion
of CSR is gaining fast acceptance globally as every business should have its contribution
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 76/95
1
1
voluntarily to the society, to its customers, to employee, to the communities and to the
environment. CSR is an obligation beyond statutory obligation and BASIC Bank Ltd.
Believes that such obligation paves the opportunity to build better relationship with all
stakeholders. BASIC Bank Limited a state owned scheduled bank, adjudged as one of the
soundest banks in Bangladesh is running on slogan “Serving People for Progress”. The sloganmanifests the commitment of the bank to comply its social responsibility. Recognizing the
importance of CSR and being a socially responsible organization BASIC Ban took some
initiatives stated below:
5.1.1 # FINANCING SMI
The bank is unique in its object. It is statutorily obligated towards the promotion and
development of small and medium industrial sector. As per mandate of memorandam.50% of
loan able fund of the bank also put emphasis on the interests of stakeholders, give due
consideration to sustainable development of communities and environment issues in all
aspect of its operation.
5.1.2 # SPORTS AND CULTURE
As part of corporate social responsibility the bank engage itself in sponsoring sports. The
bank sponsored “26th and 27th National Junior Chess Championship” and “ Inter-district
National Women Handball Tournament-2007”.
5.1.3 # DISASTER RELIEF
BASIC Bank provide donation to people affected by natural calamities. In 2007 the bank
contributed Tk.25.00 lac as donation to the Chief Adviser’s Relief & welfare fund for the
flood affected people. Another Tk.25.00 lac of donation was made to the Chief Adviser’s
relief & welfare fund for SIDR affected people.
5.1.4# EDUCATION
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 77/95
1
1
BASIC Bank patronizes meritorious students. “BASIC Bank gold Medal” was introduced by the
bank for the meritorious students of the department of banking, University of Dhaka. Besides
BASIC Bank has been accommodating internship facility for the fresh and meritorious graduates
from public and private universities and different business school to give them on job and practical
experience about banking. Such program helps the participants to choice and plan their carried
more confidently. In 2008 a total of 144 students were given same facility.
5.1.5# ENVIRONMENT PROTECTION
As a part of CSR contribution BASIC Bank is adopting environmentally responsible practice
in its operation. In its business operation BASIC Bank always consider the effects of bank’s
financed projects on environment. This issue is included as a part project appraisal.
Fuel driven vehicles are a major cause of air pollution and fuel procurement is a major source
of expenditure of foreign currencies. Keeping these dual issues in mind we have been
financing 23 CNG refueling projects of which 09 in 2008. These projects are environment
friendly, pollution free and saving foreign currencies.
5.2 # PROFESSIONAL DEVELOPMENT & ACHIEVING EMPLOYEE
SATISFACTION
Efficient human resources are real capital of an institution and professional development is a
must for banking career. Banking environment is changing regularly, employees have to face
new challenges and compliance issues are getting momentum. To attain sustaince issues are
getting momentum. To attain sustainable growth employees must gain regular training and
education. To strengthen the capacity and sharpen the skills and productivity of our
employees to face these changing situation and new challenges, we regularly arrange training
on professional and contemporary banking issue. The bank recognizes the valuable
contribution of its employees made to the bank. BASIC Bank invests substantial amount in
training and its training institute arrange regular training program and seminar to strengthen
the knowledge, competence and expertise of the employee to face challenges in this steeply
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 78/95
1
1
competitive market. Besides a good number of employees were also attended training,
workshop and seminar organize by different organization at home and abroad on various
issues. In 2008 we trained total 556 employees of our bank of which 11 was trained abroad.
5.2.1# STAFF WELFARE
Staff welfare is an issue that receives topmost importance in BASIC Bank Ltd. Has a
benevolent fund. Along with giving retirement benefit another objective of the fund is
contributing for humanitarian works. The bank sanction grant from this fund for treatment of
its employees and their dependents. BASIC Bank has introduced a Superannuation fund
instead of attractive retirement benefit for the employees. Deserving candidates are also
given promotion and increment regular. We are also contemplating to introduce performance
awards.
Employee satisfaction is a key indicator of the attitude of the employee towards their work
environment. So the bank always tries to give its employees healthy, clean and congenial
atmosphere in the work place.
5.2.2# OTHER ACTIVITIES:
Apart from above the bank sponsored Baishakhi Fair-1415 to encourage development of
small and Cottage Industries by contributing Tk. 3,00,000.00. The bank also sponsored th
alumni get together of English department Alumni Association, University of Dhaka by
contributing Tk.50, 000.00 only. The 10th anniversary program of American Alumni
Association was also sponsored by the bank by contributing Tk.50, 000.00 only.
The bank is also committed to perform the following activities in the coming days as a part
of its responsibility to the society.
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 79/95
1
1
• Important product and service that promote sustainability and reduce adverse
environmental impact.
• Offer high value added products and service
• Forest unrestricted work working atmosphere showing equal respect for all casts and
creeds and irrespective of gender.
• Arranging vocational training for the unemployed
• Ensure that all of our projects have Effluent Treatment plant(ETP)
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 80/95
1
1
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 81/95
1
1
6.1 # Achievements:
The performance of BASIC Bank Limited has been satisfactory since its inception in respect
of all the measurement parameters.
The total assets of the Bank increased to Taka 46,651.53 million at the end 2008 from Taka
38,773.91 million in the previous year. The growth rate was 20.31 percent. Deposit rose from
Taka 31,947.98 million in 2007 to Taka 38,368.23 million in 2008 showing a growth rate of
20.09 percent. Loans and advances stood at Taka 27,269.13 million as on December 31, 2008
against Taka 22,263.35 million at the end of 2007, recording a growth rate of 22.48 percent
compared to 23.86 percent in the previous year. All out efforts were made to improve therecovery rate and control non-performing loans and advances. Although the recovery rate of
project loans remained stable in the neighborhood of 96 percent the proportion of non-
performing loans to total loans increased to 3.25 percent in 2008 from 3.70 percent in 2007.
Emphasis on the maintenance of quality of assets remained the centerpiece of the Bank's
business strategy.
Year 2008 was a period of high growth in loans and advances with 22.48 percent increase
compared to 23.86 percent increase in 2007. Growth of industrial finance was moderate and
loans to small and medium industries were 23.91 percent of total loans and advances. The
industrial loan of Tk. 17226.40 million was distributed among 13 sectors. Textile sector
registered the highest concentration being 36.24 percent of industrial loans and 23.59 percent
of total loans. Textile sector is followed by: food & allied industries - 13.73 percent of
industrial loans and 8.94 percent of total loans, chemical & allied industries - 12.97 percent
of industrial loans and 8.44 percent of total loans and engineering - 11.44 percent of
industrial loans and 7.45 percent of total loans.
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 82/95
1
1
6.2 # SWOT Analysis :
The SWOT analysis comprises of the organization’s internal strengths and weaknesses and external
opportunities and threats. SWOT analysis helps to identify the current position of the organization. A
SWOT analysis of BASIC Bank Ltd. has been done below:
Strengths
First-class management
Initially being a specializedbank, it caters to theneeds of an entire target
market Low customer base
ensures dedicatedattention to eachcustomer
Low service charges withno hidden cost
Strong internal co-ordination
Friendly environment
Weaknesses
Heavily dependent onhead office for decisionmaking
No foreign branches
Most of the branches aresituated in urban areas
Low rate of interest ondeposits
Very few ATM Booths
Small range of offerings
Not enough promotionalactivities
SWOTAnalysis
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 83/95
1
1
Figure 19: SWOT Analysis of BASIC Bank Ltd.
6.3 # RECOMMENDATIONS
___________
I had the practical exposure in BASIC Bank Ltd. for just twelve weeks, with my little
experience in the bank in comparison with vast and complex banking system, it is very
difficult for me to recommend. We have observed some shortcomings regarding operational
and other aspects of their banking. On the basis of my observation we would like to
recommend the following recommendations-
Threats
Increased competition byforeign and local banks
Political involvement in
decision making Forecast of low growth in
national economy due toadverse world economicsituation and recession
Opportunities
Enlarging business byopening new branches inrural areas
Innovation of new services Increasing demand for
import, export and L/Cthrough properpromotional activities
Fully utilizing incentivesprovided to governmentbanks
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 84/95
1
1
1. Document discrepancy charge var ies f rom cus tomer to cus tomer . They
don’t charge to prime customer. We think that the bank should review
the cus tomers ' behavior for a per iod of t ime and should develop a
certain policy in this regard.
2. When they calculate loan against documentary bil l , they provide dollar
rate $65.Which is lower than other bank . We think they should increase
the dollar rate.
3. In case of Expor t L/Cs, the Government encourages the expor ters bygiving different faci l i t ies l ike tax-cuts . We think the bank should also
think about such type of facilities to be given to the Exporters because
Bangladeshi Exporters like Readymade garments Exporters are going to
face a tuf f s itua tion in coming year s f rom the exporter s of o ther
countries.
4 . I n cas e o f Expor t L /Cs, s omet imes cus tomers i ns is t t o g ive t he ir
payments though their documents are found discrepant. In some cases,
Bank has to give payment to these customers for different reasons. But
i t lessens the credibil i ty of the Bank. We think the Bank should be as
s tr ic te r a s p os si bl e a bo ut g iv in g p ay me nt s a ga in st d is cr ep an t
documents without hurting the customers.
5. Over burden of work and i l l defined assignment unable the employee to
discharge thei r dut ies in cool manner . I t i s a lso creates a hazardous
si tuation in the work process. So al l the employee should be assigned
with proper and specific assignment.
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 85/95
1
1
6. They should expand thei r bus iness more balancing way which means
they should not focus on a particular industry like readymade garments
industries.
7 . To c ommun ic ate with the Neg otia ting Ba nk, Adv ising Ban k.
Reimbursing Bank the branch uses SWIFT. As well as these media the
Bank could use the E-mai l , which i s cheaper and fas ter than those
media.
8 . BASIC Bank Ltd . now us ing sof tware and tha t i s Kas tl e. I t i s very
dedicated software. It has real time online banking, ATM facilities andE-banking and lot of more. So we think i t wil l be a great progress for
the bank.
I think the Management should employ at least few more employee in foreign trade
department as I have seen from my practical experience that many customers wait for a long
time for any service as they see that only one concerned official is doing their best to meet
the requirements of the customers but as the foreign trade procedure is designed with many
small tasks.
6.4 # CONCLUSION _______________________________
This is a well-established statement that practical situations always differ from theoretical
explanation. During my internship period with BASIC Bank Limited almost all the desks
have been observed. And I have found theory deviates from the practice more or less though
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 86/95
1
1
three months are not enough time to find out all the discrepancy between theory and practice.
Among all experiences some noticeable observations are described below:
The officers were mostly courteous, friendly in nature and eager to help despite the
tremendous workload.
As a 100% Government owned bank, BASIC Bank is trying it’s best to extend their service
to the public.
A very working environment was remaining in the BASIC Bank Ltd., (Shanti Nagar Branch).
During my long relationship with (Shanti Nagar Branch), it is found that the (Shanti Nagar
Branch) provides all kinds of commercial banking services to its customers. Foreign
Exchange department rendering all the services related to international trade and remittance.
It is well established that theory without practice is blind. During the practical orientation I
have observed the function of General Banking, Foreign Exchange, and Credit department of
BASIC Bank which will help me a lot to understand the overall banking.
Out of the above discussion a conclusion can be drawn after saying that, the present customer
dealing procedure is quite well at this moment. The computerized transaction makes the
system efficient and effective.
6.5 #
Appendix_______________________________
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 87/95
1
1
Questioner for Bank Officials:
1. What type of transaction is higher in the Foreign Exchange department of (Shanti Nagar Branch)
Export Import
Remittance
2. In Export Division, What type of transaction is higher?
Local Bill (Demand Export),
Foreign Bill.
3. Which made of Export financing is popular according to your opinion?
Cash credit/Packing Credit
Export Development Fund (EDF)
Inland Documentary Bill Purchase (IDBP),
Foreign Documentary Bill Purchase (FDBP).
4. After the shipment, what is the popular manner of dealing Foreign Bills?
FDB for Collection FDBP.
5. What type of transaction takes more time to be executed?
Cash credit/Packing Credit
Export Development Fund (EDF)
Inland Documentary Bill Purchase (IDBP),
Foreign Documentary Bill Purchase (FDBP).
6. After the shipment, what is the popular manner of dealing Local Bills?
IDB for Collection
IDBP.
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 88/95
1
1
7. In case of FDBP, What is the average time required for the adjustment of a billsPurchased?
At sight (21Days)
30 to 60 Days
60 to 90 Days 90 to 180 Days.
8. In case of IDBP, What is the average time required for the adjustment of a bill purchased?
At sight (21 days )
30 to 60 Days
60 to 90 Days
90 to 180 Days.
9. In case of Foreign Bills, What Proportion of your Clients (Exporter) generally takesReshipment Credit?
Bellow 30%
30 to 60 Days
50 to70%
Above 70%.
10. ----------------------- Post shipment credit?
Bellow 30%
30 to 50
50 to 70%
Above 70%.
11. In case of Demand Export, What proportion of your clients (Demand Exporter) generallytakes post shipment credit their Back-to-Back L/C?
Bellow 30%
30 to50
50 to70%
Above 70%.
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 89/95
1
1
12. Which service is more Risky----------------?
Cash Credit (CC) / Packing Credit (PC)
Export Development Fund (EDF).
IDBP FDBP,Why--------------------------------------?
13. Which service is more Profitable for BASIC Bank Ltd? According to your Opinion? Why –IDBP, FDBP------------------------.
Cash Credit (CC) / Packing Credit (Pc)
Export Development Fund (EDF)
IDBP
FDBP,Why-------------------------------------?
14. Do you think the volume of Export financing transaction is increasing day by day inBASIC Bank Ltd?
Yes, but in negligible number
No not at all
Average number of defaulter
Relatively large number of defaulter.
15. What according to you should be done to increase the volume of Export financingtransaction and to ensure client Satisfaction in the upcoming days?
Providing best service
Recruiting more employees
Simplifying the financing procedure
Adding value (reducing the rate of interest/ changes etc.)
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 90/95
1
1
Questioner for Bank Clients:
1. What type of services do you get from the foreign exchange department of BASICBank Ltd.?
Export
Import
Remittance.
2. How long have you been engaged with BASIC Bank Ltd. in Conducting ForeignExchange Transaction?
Less than 1 year
1 to 5 years
More than 5 years.
3. What is the type of your organization?
Knitting & Dying
Textiles & Fabrics
Readymade Garments Others.
4. For What Purpose do you visit this Branch?
LC Advising
LC Opening
Export Financing
Import Financing.
5. Which of the following factors influenced you to choose this bank?
Better service Quality
Financial Benefits (lower interest rare, change etc)
Prior corporate Relationship (like syndication loan, group financing etc)
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 91/95
1
1
Others (like conveniently location attractive organization promotion, suggestionof peer group etc.
6. As Compared to other bank, what do you find here?
Superior service quality & good customer dealing
Inferior service quality & good customer dealing
Moderate service quality & good Bad customer dealing Indifferent.
7. As an Export Oriented Industry, What types of transaction does your organization domost?
Foreign Export
Local Export (demand export)
8. For which type of transaction does your organization take the financial help (facility of selling documentary Bills) of the bank?
Foreign Export
Local export (demand export)
Both
9. Which mode of Export Financing is more complex according to your opinion?
Cash Credit /Packing Credit
Export Development Fund
IDBP,
FDBP.
10. Which mode of Export Financing is popular according to your opinion?
Cash Credit/ Packing Credits
Export Development Fund
IDBP,
FDBP.
11. As compared to others, what is the proportion of outstanding Loan of your Organization?
Low
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 92/95
1
1
High
Moderate
12. Compared to others, how is loan recovery rate of your organization?
Good
Moderate
Bad.
13. Are you satisfied with the services received from BASIC’s Foreign Exchangedepartment?
Highly satisfied Moderately Satisfied
Un- satisfied, Indifferent.
14. Which services will increase the number of client &their satisfaction?
Reducing interest etc
Improving service Quality
Relaxing the Export Financing Procedure
Strengthening the Client- Bank Relationship.
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 93/95
1
1
6.6 #
Bibliography ____________________________
Reading Materials for Foreign Exchange and Financing in International Trade Course
--------------- BASIC Bank Limited.
A Dictionary of Banking and Finance ---------- L. R. Chowdhury.
Annual Report of BASIC Bank Limited.
Foreign Trade and International Market --------- C. L. Gupta.
Guidelines for foreign exchange transaction of Bangladesh Bank (Volume 1 & 2).
Monthly Statement of BASIC Bank Limited, December, 2008
Various Official Records of BASIC Bank Limited.
Foreign Exchange and Financing of Foreign Trade
Ali Syed Ashraf,”Foreign Exchange & Risk Management ”, First Mowla Brothers
Edition, May 2005, Mowla Brothers,Dhaka.
A Dictionary of Business (2003), 3nd edition, Oxford University Pre
Hossain, Dewan Mahboob & Khan, Arifur Rahman (2006),” Disclosure on Corporate
Governance Issues in Bangladesh: A survey of the Annual Reports” The Bangladesh
Accountant,January-March,2006,pp 95-99
Marketing Research for Business Students by Mark
Marketing Research by Naresh K. Malhotra
http://www.bangladeshbank.com
http://www.basicbankbd.com
http://www.idlc.com
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 94/95
1
1
7/28/2019 BASIC Final Report
http://slidepdf.com/reader/full/basic-final-report 95/95