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AN INTERNSHIP REPORT

ON

General Banking & Foreign Exchange ActivitiesOf IFI Bank !i"ite# Of

$a%ran Baar Branch

Sk' $allol Ah""e#

I() R*BA +,+-+.,/-

Department of Business Administration

Northern University Bangladesh

NORTHERN 0NI1ERSIT2 B A N G ! A ( E S H

1



AN INTERNSHIP REPORT

ON

General Banking & Foreign Exchange ActivitiesOf IFI Bank !i"ite# Of

$a%ran Baar Branch

Supervised By

*#' !3tfor Rah"an

Associate Professor & Coordinator of BBA Program



Prepared by

Sk' $allol Ah""e#

I() R*BA +,+-+.,/-



Date !"#"$#11


!



!ETTER OF TRANS*ITTA!

Date

%d# utfor 'ahman

Associate Professor & Coordinator of BBA Program



S345ect) !etter of Trans"ittal

Dear Sir(

) am delighted to submit my internship report titled 6General Banking & Foreign

Exchange Activities of IFI Bank !i"ite# of $a%ran Baar Branch7 as a part of my

'%BA degree re*uirement# ) have completed a three month internship at )nternational

+inance )nvestment & Commerce Ban, imited( -hich -as a -orth-hile e.perience for

me as it -as in such as estimated organi/ation# 0hrough out the completion of the report (

) come to ,no- about many things regarding the current -orld of ban,ing and their

practices especially in the electronic ban,ing sector# ) believe that this internship program

has enriched both my ,no-ledge and e.perience#

) enoyed -or,ing on this report and if you have further *ueries concerning the report(

place let me ,no-#

Sincerely yours(

Sk' $allol Ah""e#

I() R*BA +,+-+.,/-



2



ERTIFIATION

3ith regard to this report titled

4General Banking & Foreign Exchange Activities of IFI Bank !i"ite#

of $a%ran Baar Branch7

submitted by Sk' $allol Ah""e# for the degree of *asters of B3siness

A#"inistration' )t is certified that the report is accepted in *uality and form and allo-ed

to be presented in internship viva voce#

888888888888888

*#' !3tfor Rah"an

Associate Professor & Coordinator of BBA

Program


888888888888888

Internshi9 o""ittee hair"an


ST0(ENT (E!ARATION

5



) here by declare that the internship report titled

6An Internshi9 Re9ort on General Banking & Foreign Exchange Activities of IFI

Bank !i"ite# of $a%ran Baar 4ranch7

is prepared by me from my e.perience during three months internship -ith )+)C Ban,

imited 6a-ran Ba/ar Branch# ) also declare that the paper has not been presented by me

or other person any -here else#

Sk' $allol Ah""e#

)D '%BA "$"!"1$7!

Department of business Administration


7



Exec3tive S3""ar:

%odern ban,ing is an outcome development driven by changing financial activities and

life style# )t offers the -idest range of financial services especially credit( savings and

payment services and performs tile -idest rang of financial functions of any business

firm in the economy# By definition ban,s collects deposit from the money holder and

invest in accumulated saving of the depositor in the form of credit and other financial

services to the clients# At one hand ban,s pay interest to the depositors and on the other

hand it gets interest at a higher rate from the borro-ers to reali/e profit#

So -e find that money -or,s both input and output of the ban,ing industry# 0he

important feature of ban,ing operation is to develop a good image of trust-orthiness to

deal -ith money of the depositor#

)+)C Ban, is the third generation ban, in the gro-ing ban,ing sector in Bangladesh# 0he

ban, has been able to earn a good name in industry for its high *uality service# )n the

)+)C Ban, td ) have found out the tas, of satisfying the depositor group and the

borro-er group is the first priority and the ban, does this in a -ay smarter than any other

in the industry# 3ith a term of ban,ers that comprises of e.perience as -ell as vigor of

youth( the ban, strives for a customer oriented ban,ing culture( -ith a prudent leading(

helping in e.port import of product and attracted deposit schemes# 0he foreign e.change

department of )+)C Ban, is plying a vital role for developing the e.port import business

in Bangladesh day by day# 0he management of )+)C Ban, limited has been focusing on

these ,ey issues for ensuring a better base for their Ban, stand on#

As a pare of my internship program ) got a chance to -or, at this ban, for a period of

three month# During this period ) have learned about this organi/ation and its -or,ingenvironment -hich inspired me to do -or, on the topic#



0able of Contents

ha9ter No' Title Page No'

ha9ter

One

Intro#3ction to the Re9ort

1#1 Scope of the Study 1!

1#! =eneral 9bective 1!

1#2 Specific obectives 1!

1#5 Significance of the Study 12

1#7 %ethodology of the report 12

1# imitation of the study 15

ha9ter

T%o

Overvie% or Profile of IFI

Bank !i"ite#!#1 )+)C Ban, Profile 1

!#! Company vision 1!#2 Company mission 1

!#5 9bectives 1

!#7 Corporate )nformation 1?

!# Structure of the 9rgani/ation 1$

!# Board of directors 1$

!#? Division !"

!#$ 9rgan gram of )+)C Ban, !!

!#1" ierarchy of the 6a-ran Ba/ar

Branch %anagement

!2

!#11 9fficers list of )+)C Ban, 6a-ran

Ba/aar Br

!5

!#1! Branches of )+)C Ban, 0D !

!#12 ocation of Branches !

ha9ter

Three

Internshi9 Position &

(3ties2#1 Duties & 'esponsibilities as an

intern

21

2#! Account 9pening 21

2#2 Clearing section and posting

che*ue :N)6AS<

21

2#5 Provide information any type of

customer

21

2#7 Pay order issue 2!

2# 'eceiving and sending letters 2!

2# )ssuing che*ue boo, 2!

2#? +oreign .change 2!

2#$ etter of credit EC 2!

?




2#1" 9pening of Bac,8to8Bac, EC 22

ha9ter

Fo3r

Anal:sis & Fin#ings

5#1 'etail Ban,ing 275#! Consumer +inance 27

5#2 S% Ban,ing 27

5#5 Personal Ban,ing 27

5#7 Corporate Ban,ing & institutionalBan,ing

27

5# Custodial Service 2

5# )nternational 0rade %anagement 2

5#? Cash %anagement 2

5#$ )nstitutional Ban,ing 2

5#1" 0reasury 2

5#11 Capital %ar,et 2

5#1! lectronic Ban,ing 2

5#12 +oreign .change Business 2

5#15 )+)C Ban, imited N9S0'9accounts#

2

5#17 9nline Branch Ban,ing 2?

5#1 S-ift 2?

5#1 )nformation 0echnology in

Ban,ing 9peration

2?

5#1? Profitability and Shareholder

Satisfaction

2?

5#1$ Product Decision 2$

General Banking Practice Of

IFI Bank !t#

51

5#!#1 0ypes 9f Account 5!

5#!#! Pre re*uisite of opening an

account

5

5#!#2 Ne- Deposit Products 7"

5#!#5 Demand Draft :DD< )ssue 71

5#!#7 Pay 9rder 7!

5#!# Clearing Section 72

Foreign Exchange B3siness of

IFI Bank

1

5#2#1 )ntroduction !

5#2#! Definition of +oreign .change 2

5#2#2 +oreign 0rade and +oreign.change

$




5#2#5 Principles of +oreign .change 5

5#2#7 egal Basis of +oreign .change

0ransactions

5

5#2# +unctions of +oreign .change 75#2# Definition of EC

5#2#? 0ypes of EC

5#2#$ Parties to a etter of Credit ?

5#2#1" Contents of the EC "

5#2#11 Procedures of 9pening a EC 1

5#2#1! Documentary etter of Credit

:)mportE.port Documentation<

!

5#2#12 9perational Processes in )+)C

Ban,s +oreign .change

Department

7

+indings $5)ndustry Analysis $7

S390 Analysis $7

Conclusion and recommendation 1"

'ecommendations 1"

Bibliography 11"

1"



Chapter One

Introduction To The R eport

11



.'. Intro#3ction;Sco9e of the st3#:)

The %BA internship program is a re*uired course for the students -ho are postgraduating from the Business Administration Department of Northern University# )t is a

28credit course -ith duration of 1! -ee,s# Students -ho have completed all the re*uired

courses :at least 5? credit hours< are eligible for this course#

In my internship program( ) have attached to a host organi/ation named )+)C Ban,

imited for 1! -ee,s# %y internal supervisor is the head of the )+)C Ban, imited(6a-ran Ba/ar Branch# ) am -or,ing in the foreign e.change division of the organi/ation#

3ith the permission of my internal supervisor ) am going to -or, for my report on a

topic named 4General Banking & Foreign Exchange Activities of IFI Bank !i"ite#

of $a%ran Baar Branch7'

I+)C Ban, td has been operating in this industry since 1$?2 and belongs to the first

generation of private ban,s to be incorporated since the independence of Bangladesh#

0oday it holdFs the No# ! position in the CA%FS rating conducted by BangladeshBan,# And in this report ) -ill try to figure out -hat sort of management approach

actually helped )+)C Ban, to achieve this position as -ell as the approach related toforeign e.change division#

!# 9bective of the 'eport

.'-' General O45ective:

To gain practical ob e.periences and vie- the application of theoretical ,no-ledge in

the real life

.'<' S9ecific O45ectives:

Presentation of an introduction about )+)C Ban, imited#

Products and services of )+)C Ban, imited

Ban,Fs competitive condition -ithin the industry#

To revie- the strengths and -ea,nesses of the ban,#

urrent assessments and future directions#

Foreign e.change trend at )+)C Ban, imited#

To suggest -ays of improving the service standard that accommodates a rapidly gro-ing

customer volume#

1!



.'=' Significance of the St3#:

Ban,ing sector has emerged as the ,ey source for the people to borro- or to save money

for last t-o decades# People rely heavily on different ban,s to save their earnings and

borro- money from the ban, -hen they re*uire money in emergency# 0here are almost

72 ban,s in Bangladesh# 9ut of that number( 2! ban,s are private ban,( 7 ban,s are

government ban,( ban,s are development speciali/ed ban, and $ ban,s are foreign

ban, # So( -e can see that there are lots of players in this industry# So( surviving in this

sector is a challenge for every ban,# A little bit of mista,e or casualty can put the ban,

do-n and can thro- the ban, out of the sector# So( ban,s need to be its absolute best to

survive successfully in this sector#

*y study can contribute to the organi/ation to some e.tent# 0he inspections that ) -ill

conduct can demonstrate an idea about ho- ban,Fs customers thin, about the ban,Gs

services especially foreign e.change services and ho- satisfied they are -ith the e.istingfacilities of the ban,# At the same time the ban, can ,no- that ho- satisfied its

employees are -ith the e.isting system of the ban,#

Based on my assessment result and analysis( the company can then change according to

the need and can sustain for a longer period of time by enoying the loyalty and

satisfaction of their customers and better performance of its employees and though a

good management team# %y findings from the study -ill also assist the management and

the e.perts to come up -ith effective and valuable decision helping the ban, to combat

more effectively -ith their competitors#

Ex9ecte# fin#ings

ontaining service facility in the ban, helps the Ban, to be competitive in the Ban,ing

sector#

.'/ *etho#olog: of the re9ort

(ata So3rces)

To carry out the proposed study( ) -ill utili/e both primary and secondary data sources#

12



Pri"ar: (ata So3rces) +or the proposed study( ) -ill collect primary data by ta,ing

intervie-s of some ban, officials in order to get the information regarding foreign

e.change services as -ell as the real picture of the ban,#

Secon#ar: (ata So3rces) ) -ill collect the internal secondary data from the ban, itself#

.ternal secondary data -ill be collected from the -ebsite of the ban,#

(ata ollection *etho#)

Simple and straightfor-ard *uestions -ill be as,ed to the respondents in the intervie- for

the purpose of my report# Data -ill be collected -ith the cooperation of the employees

and clients of )+)C Ban, imited#

(ata Anal:sis & (ata Presentation Techni>3e)

After collecting data( ) -ill follo- a comprehensive screening process# ) -ill sort out

incomplete and biased data and -ill delete from the data ban,# ) -ill use graphical

presentation -ith percentage#

?' !i"itation of the St3#:

The respondent may be uninterested to ans-er the *uestions#

Time -ill be a maor constraint in accumulating all sorts of information in an organi/ed

-ay#

onfidentiality of data -ill be another ,ey barrier that -ill be faced during the conduct of

this study# As every organi/ation has their o-n secrecy that is not revealed to others( so

ac*uiring the absolute ra- information -ill be a difficult and almost impossible tas, for

me#

!arge8scale research -ill not be possible due to constraints and restrictions of both time

period and by the organi/ation as -ell#

15



Commercial Corporate and Personal Ban,ing services covering all segments of society

-ithin the frame-or, of Ban,ing Company Act and rules and regulations laid do-n by

our central ban,# Diversification of products and services include Corporate Ban,ing(

'etail Ban,ing and Consumer Ban,ing right from industry to agriculture( and real state to

soft-are#

-'-' o"9an: vision)

To be the best Private Commercial Ban, in Bangladesh in terms of efficiency( capital

ade*uacy( asset *uality( sound management and profitability having strong li*uidity#

-'<' o"9an: "ission)

To build )+)C Ban, limited into an efficient( mar,et driven( customer focused institution

-ith good corporate governance structure#

ontinuous improvement in business policies( procedure and efficiency through

integration of technology at all levels#

-'=' O45ectives

To have a strong customer focus and to build a relationship based on integrity superior

services and mutual benefit#

To -or, as a team to serve the best interest of the group#

To -or, for continuous business innovations and improvements#

To value and respect people and ma,e decisions based on merits#

To provide recognition and re-ards on performance#

To have sustained gro-th( improved and -ide spectrum of products and services#

-'/' or9orate Infor"ation)

1



Na"e of the o"9an:) )nternational +inance )nvestment and commerce :)+)C< Ban,

td#

!egal For") )+)C Ban, imited -as incorporated in Bangladesh and registered -ith

oint stoc, companies and firms as a public company limited by shares#

o"9an: Registration N3"4er) 5$(Dated 9ctober "?(1$

Octo4er @ .,?) %emorandum and Articles of Association signed by the Sponsors#

Octo4er .@ .,?) )ncorporation of the Ban, and Certificate of Commencement of

Business#

C3ne -< .,@<) icense issued by Bangladesh Ban,#

C3ne -= .,@<) +ormal launching of the Ban, and Commencement of business from the

%otiheel Branch#

A3thorie# a9ital) >ear !"" I 06 7"" million( >ear !""? I 06 1"" million( >ear

!""$ I 06 727" million#

Pai# 09 a9ital) >ear !"" I 06 "#! million( >ear !""? I 06 1251#52 million(

>ear !""$ I 06 152#?" million#

A3g3st -, .,@?) )nitial Public 9ffering :)P9<

*arch - .,@?) isted -ith Dha,a Stoc, .change imited :DS<#

Nove"4er ./ .,,/) isted -ith Chittagong Stoc, .change imited :CS<#

*arket ategor:) A category

*arch .= .,@?) 17H Dividend declared in the 1"th A=% :+irst after the )P9<#

.,@? & .,,/) 0rading of Shares on DS and CS#

*arch -, -++@) 'egistered & purchase icense as Bro,erage ouse from Securities

and .change Commission :SC<#

Fe4r3ar: .- -++,: Start 9peration#

A9ril ./ -+..) Bro,erage ouse separate from )+)C Ban,#

*arch -, -+++) 'egistered as depository participant of CDB#

C3ne ./ -++<) 0rading of Shared started in Demat form in Stoc, .changes#

Tax Pa:er I#entification N3"4er DTIN) !1"8!""8"72( 0U( Dha,a#

1at Registration N3"4er) $"!1""15

C3ne <+ .,@?) Agreement -ith %>S)S Company for Core Ban,ing Soft-are %)S>S

A3#itors) Narayon Chandro 'oy & Company Chartered Accountants

Str3ct3re of the Organiation

1?



-'' Boar# of #irectors)

Board of directors of the ban, is a uni*ue combination of both private and =overnmentsector e.perience# Currently it consists of 1! directors# 9f them represent the sponsors

and general public and four senior officials in the ran, and status of additional

secretaryEoint secretary represent the government# %anaging director is the e.8officiodirector of the board#

Boar# of #irectors

.

%r# Salman + 'ahman Chairman

- %r# %ohammad utfer 'ahman Director

< %r# Aminur 'ahman Director

= %r# Syed Anisul u* Director

/ %r# %ohammed Nayem Syed Director

? %r# An-aru//aman Cho-dhury Director

%r# %onirul )slam Director

@ %r# %ahmudul u* Bhuiyan Director

, %r# Arastoo 6han Director

.+ %r# Syed %onurul )slam Director

.. %r# %ohammad Ali 6han( ndc Director

.- %r# %ohammad Abdullah %anaging Director

-'@' (ivision

1$



The operations and activities at the head 9ffice have been divided into fifteen divisions

or groupsJ each head by a =roup .ecutive -ho reports directly to the Chief .ecutive#

All divisions in ead 9ffice are re*uired to report to the respective =roup .ecutive# 0hename of the fifteen divisions and the divisional head are mentioned belo- 888

!"

+-'

H3"an Reso3rces (ivision

%r# Syed Kahidul )slam

S;P

+.'

o"9an: Secretar:s (ivision

%r# A#6#%# %o/harul a*ue

S;P

+<'

Finance & Acco3nts (ivision

%r# S#%# Abdul amid

S;P

+='

re#it Risk *anage"ent (ivision

%r# 3a,ar asan

;P

+/'

or9orate Banking & *arketing

(ivision

%r# +ariduddin Al %ahmud

;P

+?'

Treas3r: & International Banking

(ivision

%r# Shai,h 'ashid Ahmed

;P

+@'

or9orate o""3nication & S399ort

Service (ivision

%r# %d# Abul ossain

;P

+'

Internal ontrol & o"9liance (ivision

%r# Narayan Chandra 'oy

;P

+,'

Re"e#ial Asset *anage"ent (ivision

%r# A#6# % Shafi*ul AlamS;P

.+'

Infor"ation Technolog: DIT (ivision

%r# =opal Chandra =uha 'oyS;P

..'

Anti *one: !a3n#ering (ivision

%r# S#%# Abdul amid

S;P & CA%C9

.-'

a9ital *arket (ivision

%r# Ashim Cho-dhury

S;P



!1

.<'

ar# (ivision

%r# Shahahan 6abir

+;P

.='

!a% & !egal Affairs (ivision

%r# %d# Badrul Alam

SA;P

./'

*'(s Secretariat

%r# %# %o/ibar 'ahman

;P



2.11 Officers list of IFIC Bank Kawran bazaar Br:

!2



*r# 6a/i 9baidul Al +aru, :+# ;# P & %anager<

*r# %ehboob Alam Cho-dhury :SA;P<

*r# =a/i %d Kulfi*ur Borhan :A;P<

*rs# Shaila 'a//a*ue :A;P<

*r# Sha-a,at Ali :SS9<

*rs# 0ahmina Begum :9=81<

*s# Sitara 6hatun :9=81<

*r# A# 6# %# Abul 6alam A/ad :9=81<

*r# Abdur 'ashid :9=81<

*r# %d# Alamgir 6abir :9=81<

*r# %d# 0oaha :9=81<

*r# A# 0# %# Ashi*ur 'ahman :9=81<

*r# %d# 0anvirul )slam Prodhan :9=8)<

*r# %ostafi/ur 'ahman :9=8))<

*rs# +ar/ana >easmin :9=8))<

*rs# Sha/ia 'i,ta :9=8))<

*s# )smat Ara :Cash 9fficer<

*s# @obaida Nusrat :Cash 9fficer<

*r# shra, mahmud 6han :Cash 9fficer<

*r# %d# %a/bha Uddin :Cash 9fficer<

*r# %d# Salauddin :Cash 9fficer<

*s# 0ahmina Begum :Computer 9fficer<

!5

*r# 6a/i 9baidul Al +aru,

:+# ;# P & %anager<

*r# %ehboob Alam Cho-dhury

:SA;P<

*r# =a/i %d Kulfi*ur Borhan:A;P<

*rs# Shaila 'a//a*ue:A;P<

*rs# 0ahmina Begum:9=81<

*r# Abdur 'ashid:9=81<

*r# %d# 0oaha:9=81<

*r# %d# 0anvirul )slam Prodhan

9=8)

*r# Sha-a,at Ali:SS9<

*r# %d# Alamgir 6abir :9=81<

%r# A# 0# %# Ashi*ur 'ahman:9=81<

*rs# Sha/ia 'i,ta:9=8))<

*s# 0ahmina Begum:Computer 9fficer<

*s# Sitara 6hatun:9=81<

%r# A# 6# %# Abul 6alam A/ad:9=81<

%r# %ostafi/ur 'ahman:9=8))<

%rs# +ar/ana >easmin:9=8))<

%s# )smat Ara:Cash 9fficer<

*s# @obaida Nusrat:Cash 9fficer<

*r# shra, mahmud 6han:Cash 9fficer<

*r# %d# %a/bha Uddin:Cash 9fficer<

*r# %d# Salauddin:Cash 9fficer<



I+)C Ban, imited is being managed by highly s,illed professionals -ith long

e.perience in ban,ing# 0hey constantly focus in understanding and anticipating customer

needs and as the ban,ing scenario undergoes changes so does the ban,s operations( to bein par -ith the mar,et condition#

!7



No- -e -ould loo, into each of the four basic management activities Planning(

9rgani/ing( Staffing and eading & Controlling that the ban, practices( in order to stay

on top of its competitors#

-'.-' Branches of IFI Bank !T()

I+)C Ban, have $$ branches( "1 S% service center( "1 head office# Branches aredivided into division in Bangladesh and also have !5 branches in different country#

(ha,a division have 5 branches("1 head office# 1st branch -as started from motiheel

branch :Date !5#"#1$?2<#

hittagong division have 1$ branches# Ban,ing activities started from Agrabad branch

:Date !1#"#1$?5<#

R ashahi division 17 branches# Ban,ing activities started from 'ashahi branch :Date1!#"7#1$?7<#

$ hulna division have "$ branches# Ban,ing activities started from 6hulna branch :Date!7#"1#1$?<#

Barisal division has "1 branch# Ban,ing activities started from Barisal branch :Date!1#11#1$$1<#

Syhlet division have "? branches# Ban,ing activities started from Sylhet branch :Date1#11#1$?5<#

"1 has S% service center# A##) Dholai,hal :Date !#1!#!""$<

Others co3ntr:

Nepal L 17 Branches

Pa,istan L ! Branches and

Oman L Branches#

So( )+)C Ban, have total $ offices in Bangladesh

-'.< !ocation of Branches

!



Planning

I+)C Ban, has done its planning -ithin the purvie- of the corporate plan# 0he overall planning approach in )+)C Ban, is top8do-n# %anagement of )+)C Ban, td can be

categori/ed into t-o broader teams( one is the 0op %anagement group and other one is

the %id evel %anagement team# 0he top8level management team usually comprises of

the Board of DirectorFs -here the Ban,Fs Chairman heads the meetings#

!



!ong terms goals are usually discussed in these high profile meetings( -here the ban,

o-ners decides( for e.ample( -hat should be the targeted profit for the ne.t fiscal year#Such meeting usually ta,es place at least once every month( and is a -ay through -hich

the directors are updated about the current situation of the ban,# During their regular

meeting each month the directorFs tries to revie- the feedbac, from decisions givenearlier# Changes are made if needed and ne- issues are discussed# Sometimes these

meetings can ta,e place more than once in a month( in case of an emergency# +or

e.ample in ban,ing there are certain decisions that the Ban,s top management levelcannot ta,e on their o-n and concerns of the shareholders are of utmost importance# +or

e.ample( before giving out large syndicated loans to clients or before imposing ne-

interest rate of the ban,#

The %id evel %anagement team on the other hand deals -ith Short 0erm goals# 0hey

are here to see -hether the short terms goals are in line -ith the long8term targets#

%oreover they also provide solutions to everyday challenges that can come up all the

time# %ost of the employees in the mid management level are usually head of individual branches and is entitled -ith the responsibility to see the smooth operation of the branch#

Some mid level managers also head individual department and ) -ould be discussingabout in the 9rgani/ing section of the report

Organizing The term organi/ing for Ban,s is no different form any other business( it is the -ay

through -hich the day to day activities of the ban, are carried out for smooth operation#

)+)C Ban, has t-o approaches -hen it comes to organi/ing its business( one is the

Branch Based Approach and the other is the Department Based Approach#

In the Branch Based Approach( each individual branch is treated as a separate identity

and is head by a branch manager# 0he branch manager is directly responsible for the performance of that particular branch( and is liable to the top management# Profit targets(

deposit targets and others targets ali,e are all handed over to these individual branches

Hiring the right people for the right position is perhaps one the most important function

of any organi/ation and it is more so for ban,s since it operates in the service industry#

0his function of management is the responsibility of the uman 'esource Department for

)+)C Ban, td# Staffing not only deals -ith recruitment but is also involved in givingtraining to employees( performance appraisal and many other related activities#

R ecruitment in )+)C Ban, is t-o basic types( one is the hiring of fresh ne- graduates andother is the recruitment of e.perienced employee# very year ne- graduate students are

recruited at the entry level as Probationary 9fficer :P9< and as -ell as Computer 9fficer

:C9< E Cash 9fficer :CASE9++< depending on individual *ualification# +or each of thethis entry level post( applicants has to sit for several -ritten assessment before moving on

to a series of intervie-( from -here only the brightest are chosen# 9n the other hand

someone having previous ban,ing e.perience might not have to sit for any -ritten e.am

but is directly assessed by the top or mid level management through intervie-s#

!?



Leading and Controlling The current success of )+)C Ban, td is certainly because of its e.pert team of

management -hether it be the Branch %anager or the Department ead( each has their

e*ual shares in ma,ing this Ban, a success# 0he top management level of )+)C Ban, comprises of very e.perienced individual -ho has climbed up the corporate ladder from

-ithin the ban, itself or is someone -ho has been -or,ing at some other ban,s and is

e.perienced#

The head of each branch belongs to the mid level management unli,e the department

heads -ho usually belongs to the group higher in the corporate ladders# An employee

form the top management level is li,ely to be responsible for several small departmentsof the ban,( until and unless the department re*uires very high s,ills#

The e.ecutives from the mid and the top8level management is also responsible for the

-ell being of all the employees -or,ing under them# e or She has to ma,e sure that allthe employees are -or,ing in accordance -ith the company policy and is being fairly

treated# +or this appraisal function the manger of each branch has to fill out AnnualAppraisal 'eport :AA'< each year to evaluate the performance of individual employee(

based on -hich promotions( increment and bonuses are given out#

ha9ter Three

!$



Internshi9 Position & (3ties

<'. (3ties an# Res9onsi4ilities as an intern)

As a student of %BA program the re*uirement of my course ) -as assigned )+)C Ban,

td 6a-ran Ba/ar branch for my internship# ) -as assigned to -or, on general ban,ing

and foreign e.change activities# )n the internship period it is very important for any one

2"



-here practical e.perience gathered# )n the period of three months internship program )

have learn many things about general ban,ing and foreign e.change activities# very

employees helped me so much to understand the -or, easily# During my internship

period( ) have -or,ed in different sections li,e Accounts opening( Clearing( 'emittance(

Dispatch( EC opening etc# During my three months internship programs ) have -or,ed

1"#"" am to #"" pm at every -or,ing day#

As an intern ": acco"9lish"ents are as follo%s)

<'- Acco3nt o9ening) ) -or,ed first in )+)C Ban, in the account opening department#

ere ) learnt the procedure for opening an account( the documents that are need for

opening an account# )n )+)C Ban, imited there are various types of accounts# ere )

have -or,ed at least 17 days# 0his is important section of the ban,# )t deals -ith the

different products# 0hese products are the core sources of deposit# ere ) have ac*uainted

-ith different products that the ban, offers to ac*uire deposit# ) also have ac*uainted -ith

the chec,list of the account opening# ) have also learned the important steps regarding

account opening and account closing#

<'< learing section an# 9osting che>3e DNI$ASH) very day ) received several

che*ues from clients# ) also initial it the deposit slip and put branch seal and endorsement

seal in the che*ue# %y responsibility ensures account number and accounts holder name#

)n this section my last duty positioning the clearing che*ue in the computer#

<'= Provi#e infor"ation an: t:9e of c3sto"er) ) also provide any type of information

to the customer# ) tried my best to give the right information to the customer# 3here any

customer does not understand any thing tried to help them# %ost of the time ) gave them

information about account opening#

<'/ Pa: or#er iss3e) ) issued more than 2 or 5 pay order every day# At first customer is

supplied -ith P#9# form# After filling the form the customers pay the money in cash or

che*ue# 0he officer then issues P#9# on its specific bloc,# 0he bloc, has three parts one

for ban, and other t-o parts for customer#

21



<'? Receiving an# sen#ing letters) 0here are t-o type letters on the branch# 0he letter

come from outside or another branch those are received in in-ard boo, and a serial

number put in the letter and the other one is ban,s letter that sends to another ban, or

branch by putting also a serial number#

<' Iss3ing che>3e 4ook) +resh chec, boo, is issued to the account holder only against

re*uisition on the prescribed re*uisition slip attached -ith the che*ue boo, issued earlier#

After proper verification of the signature of the accountholder personally or to his duly

authori/ed representative against proper ac,no-ledgement# )tFs not so easy to issue a

che*ue boo,# ave to find out here the demanded che*ue and then have to record it# And

finally give the che*ue boo, to the customer and customer signature in the che*ue

discount file#

<'@ Foreign Exchange)

Ne- bac,8 to8 bac, EC opening and register boo, maintaining#

;oucher ma,ing or issuing#

Amendment of EC and register maintaining#

Acceptance of bill -hile bill received and maintaining register liabilities and

voucher issuing#

Bill purchase and register maintaining#

Performance registers of e.port and import EC maintaining#

<', !etter of cre#it !;)

0he duties( -hich ) have done in foreign e.change( are as follo-s#

Ne- bac,8to8bac, EC opening and register boo, maintaining#

;oucher creating#

Amendment of EC register maintaining#

Acceptance of bill -hile received and maintaining register liabilities and

voucher issuing#

2!



ha9ter fo3r

Anal:sis & Fin#ings

I+)C Ban, imited provides a full range of products and services to its customers( some

of -hich are mentioned belo- -ith a brief overvie- of the maor business activities#

25



='. Retail Banking

R etail Ban,ing is mass8 ban,ing facility for individual customers to avail ban,ing

services directly from our -ide branch net -or, all over the country# 3e provide one8stop financial services to all individual customers through our innovative products &

services to cater their need# 3ith a vie- to provide faster and more convenient

centrali/ed online ban,ing services( most of our branches have been brought under thereal time online ban,ing system# )+)C Ban, offers a -ide variety of deposit products(

loan product & value added services to suit your ban,ing re*uirements# Products and

services for individual customer include Consumer +inance( Deposit Product( Card( N'B Account( Student +ile( S%S Ban,ing etc#

='- ons3"er Finance

There are branches and finance centers under this division -ith a *ualitative -or,force of employees# Some of the services provided by this division are unsecured personal loans(

credit cards( and vehicle related lease etc#

='< S*E BankingThe gro-th of Small and %edium enterprises :S%s< in terms of si/e and number has

multiple effects on the national economy( specifically on employment generation( =DPgro-th( and poverty alleviation in Bangladesh# At present( Small & %edium nterprise

sector is playing a vital role in creation of ne- generation entrepreneurs and

Gntrepreneurs CultureG in the country# .perience sho-s that borro-ers of smallenterprise sector prefers collateral free loan since normally they cannot offer high value

security to cover the e.posure#

To facilitate S% sector of the country( )+)C Ban, provides collateral free creditfacilities to the small & medium entrepreneurs across the country -hose access to

traditional credit facilities are very limited# 3e are offering 17 different products for

selected target groups( such as 8 asy Commercial oan( 'etailers oan( %uldhan oan(3omen ntrepreneurFs oan( 0ransport oan( 3or,ing Capital oan( Proect oan( letter

of ContractorGs oan( BidderGs oan( 3or,ing Capital oan( Proect oan( etter of

=uarantee( etter of Credit oan against )mported %erchandi/e :)%<( oan against0rust 'eceipt etc#

='= Personal Banking

There are branches -ith highly *ualified -or,force provide various ,inds of loans(various types of accounts( che*ues( card money etc#

='/ or9orate Banking & instit3tional Banking

There are some branches under this division# 0he services provided by this division are

)nternational 0rade %anagement( )nstitutional Ban,ing( Custody( and Cash %anagement#

)+)C Ban, is providing a -ide range of financial services( offering specialist advice and products to corporate clients to meet diverse demands of changing mar,et scenario# 3e

have e.pertise to customi/e products & services to meet specific re*uirements of our

clients# 3e are committed to serve our customer -ith e.tensive branch net -or, all over

the country to e.pedite our clientGs business gro-th# 3e facilitate your business to face

27



the challenges and reali/e opportunities( no- and in the future# 9ur main focus is

relationship based ban,ing and understanding corporate & institutional business

environments#

Our e.perienced 'elationship %anagers & their team can respond to and anticipate your

needs and give you competitive business advantages# Products and services for commercial and business customers include 3or,ing Capital +inance( Proect +inance(

0erm +inance( 0rade +inance( ease +inance( Syndication oan etc#

='? 3sto#ial Service

I+)C Ban, imited e*uator fulfills its strategic commitment to provide custody and

clearing services# *uatorFs focuses are on the follo-ing

o""it"ent to >3alit:

(e#ication to c3sto"er nee#s

S3staine# invest"ent in 9eo9le an# s:ste"s

=' International Tra#e *anage"entThis division is operational throughout the group and )+)C Ban, tdFs core strength is

trade finance and services# 3ith an e.perience( )+)C Ban, has developed ,no-ledge of trade finance( -hich is -orld class# Principle services to importers include imports letter

of credit( import bills for collection and bac,8to8bac, letters of credit facilities# Services

provide to e.porters include e.port letters of credit( direct e.port bills( bonds( andguarantees#

='@ ash *anage"ent

I+)C Ban, recogni/es the importance of cash management to corporate and financialinstitutional customers( and offers a comprehensive range of services and li*uidity

management#

=', Instit3tional Banking

I+)C Ban, imited provides a -ide range of services to institutional clients( commercial(merchant and central ban,sJ bro,ers and dealersJ insurance companiesJ funds and

managers( and others# )t provides relationship managers -ho are close to their customers

and spea, local language# 0his -ide net-or, of institutional ban,ing facilities includes

transaction( introduction( problem solving and renders advice and guidelines on localtrading condition#

='.+Treas3r:

The 0reasury Division of )+)C Ban, is engaged -ith Cash %anagement( i*uidity

Planning and i*uidity Protection# )t is also conscious to protect all the ban,Fs Assets and

Profits against loss due to domestic as -ell as global financial realities( particularly)nterest and .change 'ate fluctuations# 0he 0reasury Department is also regarded as a

Profit Center( -hich generates income by trading instruments in the +inancial %ar,et#

0he 0reasury is constituted -ith -ell setup +ront 9ffice( %id 9ffice and Bac, 9ffice#

2



0o manage treasury unit as profit center( along -ith guidance from regulatory authorities(

the ban, e*uipped itself -ith clear policies( fit organi/ation structure( deployment of

trained staff( modern infrastructure facilities and technological initiatives#

Treasury operations had been consideration as an important avenue for income

generation purpose -ithin ead 9ffice# )n fact( in the past( income from treasuryoperation -as *uite si/able and significant to the total income generated by the ban,# 0he

treasury division publishes daily and -ee,ly currency ne-sletters( -hich provide

analyses of currency trends and related issues# Seminars and -or,shops are conducted for customers from time to time on foreign e.change related topics# )+)C Ban, is one of the

first local ban,s in Bangladesh to integrate treasury dealings of local money mar,et and

foreign currency under one 0reasury umbrella# 0he ban, has handled significant volumes

of treasury over the last several years# )+)C Ban,Gs Dealing 'oom is connected -ithautomated 'euters 0erminal facility thus enabling the ban, to provide for-ardEfuture

facilities to its corporate clients at a very competitive rate#

='.. a9ital *arketI+)C Ban, imited is devoted to capital %ar,et of the country and offers -orld standard

bro,erage services for individual and institutional investors# 0he Ban, is responsible for

origination of sales( buy and trading of securities of Capital mar,ets# )t aims to provide

relevant support to its customer -ith sophisticated and innovative financial solutions anddelivering the highest *uality of services# )t has a seat in Dha,a Stoc, .change imited#

='.- Electronic Banking

Electronic Ban,ing provides various types of support through a -ide range of operating

systems( s-eeping transactions accessions -ith the provisions of reporting features or

other special functions#

='.< Foreign Exchange B3siness

Over the years( foreign trade operations of the ban, played a pivotal role in the overall business development of the ban,# 0he ban, has established relationship -ith as many as

1" ne- foreign correspondents abroad and local correspondents 2"" only at ,a-ran

ba/ar branch last month April :!"11<# 0he ban, has also entered into remittance

arrangements -ith several ban,s and e.change houses#

5#15 )+)C Ban, imited have thirty :2"< N9S0'9 account overall the -orld #

A0 DAsian learing 0nion (ollar) Currency code number is ninety eight :$?<# Number of account has ten :1"<#

A0( DA3stralian (ollar) Currency code number is eleven :11<# Number of account

has to- :"!<#

A( Dana#ian (ollar) Currency code number is to- :"!<# Number of account hasone :"1<#

2



HF DS%iss Franc) Currency code number is thirty eight :2?<# Number of account has

to- :"!<#

E0RO ) Currency code number is eighty si. :?<# Number of account has three :"2<#

GBP D0'$' Po3n# Sterling) Currency code number is eighty ten :1"<# Number of

account has three :"2<#

CP2 DCa9anese 2en) Currency code number is seventy five:7<# Number of account hasthree :"1<#

0S( D0nite# State (ollar) Currency code number is one:"1<# Number of account has

eight :"?<#

and e.pects to handle increased volume of remittance business over the near future#

='./ Online Branch Banking

The ban, has set up a 3ide Area Net-or, :3AN< across the country to provide online

branch ban,ing facility to its valued clients# Under this scheme( clients of any branch

shall be able to do ban,ing transaction at other branches of the ban,# Under this system a

client -ill be able to do follo-ing type of transactions

ash -ithdra-al from hisEher account at any branch of the ban,#

ash deposit in hisEher account at any branch of the ban, irrespective of the location#

ash deposit in otherFs account at any branch of the ban, irrespective of the location#

Transfer of money from hisEher account -ith any branch of the ban,#

='.? SIFT

I+)C Ban, imited is one of the first fe- Bangladeshi ban,s( -hich have become

member of S3)+0 :Society for 3orld-ide )nter8ban, +inancial 0elecommunication< in1$$$# S3)+0 is a member8o-ned co8operative( -hich provides a fast and accurate

communication net-or, for financial transactions such as etters of Credit( +und

0ransfer etc# By becoming a member of S3)+0( the ban, has opened up possibilities for uninterrupted connectivity -ith over 27" user institutions in 1"" countries around the

-orld#

='. Infor"ation Technolog: in Banking O9eration

I+)C Ban, imited adopted automation in ban,ing operation# 0he main obective of this

automation is to provide efficient and prompt services to the ban,Gs clients# At present( all

the branches of the ban, are computeri/ed# At branch level( the ban, is using server8 based multi8user soft-are operating system to provide best security of automation#

='.@ Profita4ilit: an# Sharehol#er Satisfaction

The ban, had been one of the most profitable in the ban,ing sector# ven though the

capital mar,et of the country has been suffering over the last fe- years( the good

performance of )+)C Ban, made sure that the ban,s share price remained in a respectable position#

='., Pro#3ct (ecision DIn Bank

2?



Tight product decision in the tight time is essential for all organi/ation# )f focuses on

decision about product attributes branding( pac,aging( labeling and product support

services )+)C Ban, imited#

='-+ Pro#3ct Attri43tes(eveloping a product or service involves defining the benefits and design# )n case of

)+)C Ban, td# various deposit schemes are product#

='-. Ne% 9ro#3ct Planning Process

Ne- product planning is guided by customer needs analysis

2$

Packaging !a4eling 1ario3s

(e9ositSche"es

'S'S Attractive

Broch3res (istinction

fro" others

@+J !oan

Facilit: after <

:ears

Pro#3ct

S399ort

Service

Pro#3ct Attri43tes

Bran#inge



o""ercialiation

Screening & Eval3ation

B3siness Anal:sis

B3siness Anal:sis

3sto"er Nee#s

Anal:sis

I#ea Generation

Testing

Screening an# Eval3ation

5"



General Banking Practice Of IFI Bank !t#)

51



Acco3nt O9ening (e9art"ent

To establish a ban,er and customer relationship account opening is the first step#

9pening of an account binds the ban,er and customer into contractual relationship# But

selection of customer for opening an account if very crucial for a ban,# )ndeed fraud and

forgery of all ,inds start by opening account# 0herefore( the ban, ta,es e.tremely

cautions measure in its selection of customers#

5#!#1# 0ypes 9f Account

A ban, has to maintain different types of account for the different purposes# )+)C Ban,

limited offer the general deposit products in the form of various accounts#

Savings Account :SB<

Current Account :CD<

Short 0erm Deposit Account:S0D<

+i.ed Deposit Account:+D'< Special notice deposit:SND< Account:Short term deposit<

Pension savings scheme:PSS<

a!ing "cco#nt

Savings ban,s deposit is popular account maintained in ban,s# 0he different matters

relating SB account are described in the follo-ing discussion# 0he summary of the rulesand regulations to open a savings account is as follo-s

Any person or persons of more than 1? years having sound mind can open and operatethis account singly or ointly#

)nitial Deposit 0,# 7""#"" at rural branches & 0,# 1"""E8 for urban branches

-hich should be considered as minimum balance#

Competitive )nterest 'ate

5!



No e.tra hidden charge

Debit Card facility

S%S Ban,ing +acility

A0% facility

9nline ban,ing facility

Utility payment service

0ransfer of fund from one branch to another

Clubs( societies( sole proprietorship firms( partnership firms( imited

companies either public or private and other similar organi/ation are eligible to

open such account#

Depositors can not -ithdra-al less than 1"" per transaction#

)nterest -ill be calculated on the minimum balance in a month

3hen a che*ue is returned for -ant of fund for insufficient fund( a charge of 06

1""# )nterest -ill be created to partyFs account on half8yearly basis

Charges imposed for issue of che*ue boo, in the

SB AEC806#5"#"" :06#5#"" per leaf<( CD AEC L 06 5#"" per leaf#

C#rrent "cco#nt and $ort %erm &e'osit (%&) "cco#nt

*ost businessmen maintain current deposit account in order to ma,e their daily business

activities# 0his accountFs funds change most fre*uently than any other accounts because

customers use to -ithdra- and deposit funds in regular basis# 0he summary of the rules

and regulations to open a current account & short term deposit :S0D< accounts as follo-s

%inimum re*uired balance 0,# !"""E8#

Debit Card facility

A0% facility

9nline Ban,ing facility

S%S Ban,ing +acility

Utility payment service

0ransfer of fund from one branch to another

52



9pportunity for availing loc,er facility

A minimum deposit of 06#1"""#"" is needed to open a current account#

0he ban, charges an incidental charge of 06# 17"#"" for every si. :< months for

the maintenance of the account#

)ncase of closure of any account( the ban, deducts 06# !""#"" as closing charge

Fi*ed &e'osit "cco#nt (F&+)

The ban, allo-s people to ,eep their idle money secured and profitable as fi.ed deposit#

0he interest rate that the ban, offers to fi.ed depositors is as follo-s L

Fixe# #e9osit Rate

S9ecial Notice (e9osit DSN( acco3nt Dshort ter" #e9osit

S pecial Notice Deposit :SND< Account is opened for any

55

F(R D< *ONTHS & ABO1E

ess than 0,# 1""#"" crore 1!#""H

0,# 1""#"" crore and above $#7H

F(R D? *onths & a4ove

ess than 0,# 1#"" crore 1"#7"H

0,# 1#"" crore and above 11#""H

F(R D. 2ear

ess than 0,# 1#"" crore 1"#""H

0,# 1#"" crore and above but

less than 0,#7#"" crore

1"#7"H

0,#7#"" crore and above 1!#""H



0

10

20

30

40

50

60

June July August

Savings

Current

SND

individualEfirmEcompanyE+inancial )nstitutionsEsocietiesEclubsE0rustE

N=9sEBan,sECorporationsEAutonomous bodiesE government organi/ations

)nitial Deposit for opening account 0,# !7("""E8

SN( interest rate

!ess than Tk' .'++ crore -'++J

Tk' .'++ crore an# a4ove 43t less thanTk'-/'++ crore

-'/+J

Tk' -/'++ crore an# a4ove 43t less than

Tk' /+'++ crore

='++J

Tk' /+'++ crore an# a4ove 43t less than

Tk' .++'++ crore

-'++J

Tk' .++'++ crore an# a4ove -'++J

,ension a!ings "cco#nt (,)

I+)C Ban, is pleased to offer 2:three< E 7:five< >ears %onthly Savings plan -ith higher

return and monthly pension option at maturity# *onthly )nstallment option and Payment

after maturity( no- being offered under the scheme( are as under

57



Account opening of )+)C Ban, 6a-ran Ba/ar Branch +rom @une to August#

3e find from the graph that the savings account opening on @une that -as the last month

of fiscal year !"1"8!"11 is very high but on the other t-o months it is very lo-# 9n the

other side some SND:Special Notice Demand< accounts are opened in @une but in the

other t-o months it is near to /ero#

*onthl:

Install"ent

< :ears Ter"s / :ears Ter"s

A"o3nt 9a:a4leAfter "at3rit:

A"o3nt 9a:a4le After"at3rit:

0,# 7"" 0,# !"(?1 0,# 2?(125

0,# 1(""" 0,# 51(7! 0,# (!?

0,# !(""" 0,# ?2(1!7 0,# 1(7!(72

0,# 2(""" 0,# 1(!5(? 0,# !(!?(?"5

0,# 7(""" 0,# !("(?1! 0,# 2(?1(25"

0,#1"(""" 0,# 5(17(!5 0,# (!(?"

0,#17(""" 0,# (!2(527 0,# 11(55("!"

0,#!"(""" 0,# ?(21(!5 0,# 17(!7(2"0,#!7(""" 0,# 1"(2$("7$ 0,# 1$("($$

0,#7"(""" 0,# !"(?(11? 0,# 2?(12(2$$

5



>ou can receive full payment at maturity or option for a pension on monthly

basis to meet your needs#

0he scheme entitles you to have )ncome 0a. 'ebate to ma,e your savings

even more valuable#

)ncome 0a. 'ebate

%onthly installments of our PSS -ill *ualify as allo-able investment in

>early )ncome 0a. 'eturn# 0he account under this scheme -ill also be

e.empted from deduction of ta. on interest payable at source# o-ever( )f any

ta. or other =ovt# evy is payable under this Scheme in future the same shall

be deducted from the account#

-.2.2. ,re re#isite of o'ening an acco#nt:

The follo-ing documents are re*uired to open an account#

Di /eneral +e#irement For "ll "cco#nt:

1# Passport si/e photographs :t-o copies< duly attested by the introducer and

nominee duly attested by the account holder

!# Attested copy of passport ENationality certificate from the appropriate authority

Mup chairmanE-ord commissioner etc#0o be verified -ith originals

2# Personal information form:s<

5# 6no- >our Customer :6>C<

7# 0ransaction profile :Not applicable for Special Scheme and +i.ed Deposit<

# All applicable columns have been duly filled8in by applicant

(ii) ,ro'rietors$i' Concern("dditional +e#irement):

1# Attested copy of valid 0rade license Mto be verified -ith original

5



!# Proper seal to be used in the form and signature care

(iii) ,artners$i' Firm("dditional +e#irement):

1# Attested copy of registered partnership deed:to be verified -ith original<

!# ist of partners -ith their addresses#

2# Copy of 0rade icense#

5# Certificate of the registrar of firms in case of registered firms only :certified photocopy to be retained by ban, and original to be returned after

authentication<

(i!) Limited Com'an0 ("dditional +e#irement):

1# 0rue copy of the memorandum and articles of association of the

company duly certified by '@SC# "$# Attested copy of certificate of

incorporation#

!# Certified true copy of the certificate of incorporation of the company#2# Certified true copy of resolution of the Board of Directors of the

company for opening ban, account -hich should be consistent -ith the

Articles of Association#5# Certificate of commencement of business of the registrar of oint stoc,

company#

7# ist of directors -ith address along -ith form 1" & 1!## Copy of trade license#

# 0)N certificate

(!) ,ri!ate c$oolCollegeadras$a

1# Attested or certified copy of the constitution#

!# 'egistration certificate#

2# ist of all e.ecutive members :as per enclosed format<

5# 0-o copies of passport si/e photograph of the account operators :attested byintroducer or verified -ith passports<

7# Personal Enationality certificate of the account operators#

5?



# Personal profile of all members of the governing body managing committee#

# Board resolution regarding opening and operation of the account#

(!i) "ssociation Cl#b C$aritable instit#tion %r#st ociet0 (additional re#irement):

1# Certified true copy of the constitutionEByla-sE0rustEDeedE %emorandum andarticles of association#

!# Certificate of registration of the associationE ClubE CharityE 0rustE Society:certified photocopy to be retained by ban, and original to be returned after

authentication<

2# ist of members of the =overning BodyE .ecutive Committee of the

AssociationE ClubE CharityE 0rustE Society -ith their address

5# ist of Directors -ith address

7# Certified true copy of resolution of the =overning BodyE .ecutive Committee of

the associationE E ClubE SocietyE 0rust -hich should be consistent -ith theArticles of Association#

='-'<' Ne% (e9osit Pro#3cts)

5$



*onthl: Inco"e Sche"e D *IS

(e9osit once an# En5o: Higher Ret3rn on *onthl: 4asis

(e9osit Ter" Gross *onthl: Inco"e

0,# 7"(""" or

multiple2 >rs#

0,#27"#"" :i#e 0,#""#""

per lac<

(o34le Ret3rn (e9osit Sche"e D(R(S

noy higher return on your valuable )nvestment

IFI Bank is 9lease# to offer @ K 2ears (o34le Ret3rn(e9osit Sche"e D(R(S %ith s9ecial feat3re)

*ini"3"

(e9ositTer" Benefit

0,# !7("""? O

>rs#

Double return after ? O>ears#

:subect to deduction of 0a. & .cise

duty<

R emittance & bills section plays a very vital role in case of Ban,s Customer Service

Section# 'oles & 'esponsibilities of remittance section ,no-s no bound# 0he activities of local 'emittance are

)ssue and payment of Pay 9rder :P9<( Demand Draft :DD<( and Saving

Certificate )ssue :Sanchaypatra issue<

.ecution of )n-ard and 9ut-ard 0elegraphic 0ransfer :00<

Non client services li,e 0elegraphic transfer and Pay 9rder

+ollo- up -ith clients

)nternal and local collection of che*ue and bills

='-'=' (e"an# (raft D(( Iss3e)

7"



Sometimes customers use demand draft for the transfer of money from one place to

another# )t is must need for sending money out side Dha,a city# +or getting a demand

draft( customer has to fill up an application from# 0he from contains date( name and

address of the applicant( signature of the applicant( che*ue number :if che*ue is given for

issuing the DD<( draft number( name of the payee( name of the branch on -hich the DD

-ill be dra-n and the amount of the DD# 0he form -ill be duty signed by duly signed by

the applicant and by the authori/ed officer# )+)C Ban, imited change 17H commission

on the face value of DD as service change#

3 ont$ 'rofit Based anc$a0'atra (3,B)

(uration of this Shanchaya patra is 2 years# Any person -ho purchases this Shanchaya

patra can -ithdra- hisEher interest in every 2 month but capital can be -ithdra-n after

the maturity period# Any single individual can buy "2 %PB Shanchaya patra up to 06#7"

lac# And ointly can buy for up to 06# 1 crore#

Interest Rate) ..'/+J after < :ears

After every three :"2< month !(?7EI0,# 3ill be given against 1 ac# 0a,a#

PensioneerLs Sancha:a9atra)

(uration of this Shanchaya patra is 7 years# Any person -ho purchases this Shanchaya

parta can -ithdra- hisEher interest in every 2 month but capital can be -ithdra-n after

the maturity period# Any single individual can buy PensioneerFs Sanchayapatra up to

06#2" lac#

Interest Rate) .-'/+J after / :ear

After every three :"2< month 2(1!7EI0,# -ill be given against 1 lac 0a,a#

='-'/' Pa: Or#er

71



For issuing a pay order( the client is to submit an application in the prescribed form# 0his

form should be properly filled up and signed# 0he procedure of the issuing pay order is

similar to that of the 0elegraphic transfer# +or issuing pay order )+)CB changes

commission on the follo-ing rate8

Pa: Or#er D!ocal iss3ance No change for acco3nt hol#er Tk-+;

for nonc3sto"ers;clients

Pay 9rder :ocal< cancellation 06# !"E8 per instrument

)ssuance of Duplicate )nstrument 0,# 1""E8 per instrument plus stamp changes

for indemnity at actual#

Note No change for army personnel

SO0RE +rom intervie- -ith the )n8change of remittance department of )+)C Ban,

td#

Payment of pay order 0he pay order is present to the ban, either through clearance or for

credit to the clientFs account# 3hile payment( relative entry is given in the pay order

'egis tar -ith the date of payment#

Incase of collecting DD( P9( follo-ing things are to be carefully chec,ed

)nstrument of )+)C Ban, imited#

Crossing seal

Clearing seal

Branch name

Amount same in -ord and figure

Signature verification

Avoid the stop order P9(DD

7!



0est ,ey verification# DD over 06# !7""" must have test ,ey#

%aintenance of P9E00EDD issue and payable boo,s#

Balancing at the end of the month#

='-'?' learing Section

Backgro3n# Histor: an# I"9le"entation of A3to"ate# learing Ho3se

Pro5ect of the Bank

As a part of moderni/ing the countryFs payment systems( Bangladesh Ban, has been

-or,ing to implement the Automated Clearing ouse Proect and has announced recently

that same -ill go live on "#1"#!"1" i#e# Bangladesh Automated Che*ue Processing

System :BACPS<# Another part of the proect i#e# Bangladesh lectronic +und 0ransfer

Net-or, :B+0N< -ill be implemented later on# Accordingly( BACPS -ent live on

"#1"#!"1"# 0hat means BACPS systems started from "#1"#!"1"#

It may be noted here that( !:t-o< basic components of Automated Clearing ouse Proectincludes Bangla#esh A3to"ate# he>3e Processing S:ste" DBAPS and

Bangla#esh Electronic F3n# Transfer Net%ork DBEFTN# )nitial implementation

program of Bangladesh Ban, -as

.' Bangla#esh A3to"ate# he>3e Processing S:ste" DBAPS'

!# Bangla#esh Electronic F3n# Transfer Net%ork DBEFTN#

0here are !:t-o< types of operational procedure for BACPS as under

Centrali/ed System 3here instruments are being scanned and transmitted from

single point#

72



Decentrali/ed System 3here instruments are being scanned and transmitted from

different branches#

(ifferent implementation stages of the proect are as under

Printing of %)C' :%agnetic )n, Character 'ecognition< compliment che*ue

& other security instruments & its circulation#

A dedicated communication lin, -ith Bangladesh Ban,#

ard-are & soft-are solution for AC proect :BACPS & B+0N<#

PB% :Participant Ban, %odule< & 0raining of participating ban,s# :Provided by

Bangladesh Ban,<

=o live -#e#f# "#1"#!"1"

Bangladesh Ban, from time to time has communicated the revised time frame for

implementation of the proect and advised the Scheduled Ban,s to complete the above

mentioned tas, by follo-ing the -or, procedure mentioned bello-

In%ar# learing

It is re*uired that a ban, has to have the ability to receive che*ue images and data

electronically# 0he ban, must process these images and data return the DA0A only of the

4return items electronically# 0herefore( prior to the live operation of clearing( the ban,

must establish the communication lin, to the Bangladesh Ban, for receipt of dataEimages#

Put in place the computer system to receive and process the in-ard clearing# ach ban,

-ill be provided a piece of soft-are by Bangladesh Ban, at no charge called the

Participating Ban,Fs %odule :PB%<# Ban, has to purchase the necessary infrastructure

:PC and access to communications< to run this soft-are#

75



O3t%ar# learing

Ban,s are re*uired to put in place their e*uipment and soft-are to capture the che*ue

images and data and transmit the same to the BAC electronically# 0here are many -ays

of handing this operation# A ban, typically has to purchase che*ue scanning e*uipment

-hich could range from small des,top scanner version -hich reads 2"817" items per

minute# 0he ban, also needs speciali/ed and proven soft-are for the preparation of

correctly balanced out-ard clearing batches# 0hese batches are then transmitted

electronically to the BAC through the ban,Fs PB% # Data entry and balancing has to be

handled by operators sitting at computer terminals#

The PB*

The PB% is an electronic gate-ay or interface bet-een a ban, and the BAC -hich

does validation( encryption and digitally signs the electronic files -hich -ill be

transmitted over the proprietary( secure net-or,# 0his ma,es the transmission secure and

conforms to international standards# )t is necessary for each ban, to put in place

interfaces to integrate the data received from the PB% and presented to the PB% into

their o-n internal systems#

Banglades$ "#tomated C$e#e ,rocessing 0stem (B"C,)

77



O9erating Proce#3re

Ite"s an# Instr3"ents Eligi4le for BAPS

: i < Savings Ban, Account Che*ue#

:ii< 'efund 3arrant

:iii< Pay 9rder

:iv< =ovt# Che*ue

:v< Credit Card Che*ue

:vi< +oreign 0a,a Demand Draft

:vii< +ractional Dividend 3arrant

:viii< Current Account Che*ue

:i.< Ban,erFs Che*ue

:.< Cash Credit Account Che*ue

:.i< Dividend 3arrant

:.ii< Demand Draft

:.iii< =ift Che*ue

:.iv< )nterest 3arrant

7



tandardized Instr#ments Common Feat#res

Paper CBS81 :e.p 'efund & Dividend 3arrant<

Si/e #7 Q 2#7

Uniform Design

Personali/ation

%icroprint

rasable )n,

%)C' Code ine

01 !ight

!ASSIFIATION OF BAPS E!IIGB!E ITE*S

7



%$e B"C, C$e#e 4n!elo'e Creation 'rocess)

M+.L ) Nor"al

M+/L ) On0s D9ossi4le f3t3re o9tion

M..L ) High 1al3e# Ite" Dollection t:9e set 4: Presenting Bank onl:

M-.L ) Nor"al Ret3rn

M<.L ) High 1al3e# Ret3rn

learing Sessions

learing in#o% 3t Offs

Submission 'eturn Settlement

'egular Clearing 12"" hrs 1?"" hrs 1?"1 hrs

igh ;alue Clearing 1!"" hrs 15"" hrs 15"1 hrs

'etry( if necessary( -ithin 1!2" pm for '; and 115" am for ;

BAPS T:9e

1# O3t%ar# learing) 0his means sending information to BACPS#

!# In%ar# learing) 0his means receiving information to BACPS#

Ret3rn Reason o#es

7?



Code 'eason 'e8Presentable:'<

Non 'e8Presentable:N<

"1 )nsufficient +und '

"! Amount in figure and -ord differs N"2 State Che*ue N

"5 Post dated Che*ue '

"7 Dra-ers signature differs N

" Payment stopped by dra-er N

" )tem represented too often N

"? )ncompleteEmissing endorsement '

"$ +orget endorsement N

1" %aterial alteration8payee name N

11 %aterial alteration8amount N1! %aterial alteration8data N

12 %aterial alteration8multiple fields N

15 +orget or unauthori/ed signature N

17 %issing signature '

1 %issing corporate stamp '

1 )ncorrect amount '

1? )tem sent to the -rong ban, '

1$ )mage does not meet usability standards '

!" Piggybac, image ' !1 )RA failure '

!! Account unavailable :closed( fro/en( invalid

etc#<

N

!2 Present -ith the physical document '

!5 )tem missing advice '

!7 Duplicate )tem8previously paid N

! )ncorrect payee N

! igh value item presented to an ineligible

branch

N

learing Section of IFI Bank !i"ite#

This department has t-o main obs# 0hey are as under

1# 9ut-ard che*ue clearing

7$



!# )n-ard che*ue clearing

O3t%ar# he>3e learing)

henever any branch of )+)C Ban, limited receives a che*ue to be collected from any

other ban,( Ban, arranges the che*ues separately by the name of different ban, and then

it send to the respective ban, for clearance -ith the use of the clearinghouse#

Before clearing

)+)C Ban, td general AEC Debit

Clint AEC Credit

After the che*ue is honored by the collecting Ban,

)BCA AEC Debit

)+)C Ban, td general AEC Credit

If the che*ue is bounce or dishonored

Clint AEC Debit

)+)C Ban, td general AEC Credit

In%ar# he>3e learing

This is opposite flo- of the out-ard che*ue clearance# 3hen other ban, sends( the

che*ue to )+)C Ban, td# +or the clearing through CA')N= 9US the techni*ue

follo-ed by )+)C Ban,#

Foreign Exchange B3siness of IFI Bank

"



Intro#3ction

The report is based on the current +oreign .change 0rend for )+)C Ban, td# )t deals

-ith .port( )mport and 'emittance services that the ban, provides( giving us the current

1



trend of business in each of this areaFs# )n addition in8depth analysis of statistical data

covering the types of commodities( amount of foreign currency that is being traded has

also been covered in this report# But first let us ta,e a loo, at the role of foreign trade in

Bangladesh#

Foreign 0rade plays an important role in the economic advancement of every nation# So

the government of almost all developing countries including Bangladesh focuses on the

import and e.port relations of foreign countries# )n our country( the foreign trade is

controlled by Bangladesh Ban, under the )mport and .port Control Act( 1$7"# ere any

importer and e.porter -ho are not registered -ith CC) & are not allo-ed to import the

goods in the country or e.port goods to other countries# 3hile the foreign .change

Business -as becoming more comple. and bounded by more rules and regulations( the

EC is one type of underta,ing that could reduce the ris, and legali/e the contract

bet-een buyer and seller# And through the EC( the contract bet-een the importer and

e.porter is given a legal shape by the Authori/ed Dealer8the ban,# As the ban,s are

included in the process( the contract becomes more reliable for both the importer and

e.porter to both the parties# 3hile through the EC a reputed ban, guarantees the

payments for imported goods on the behalf of the importer( the e.porter gets the

security for payment #0herefore ( the etter of Credit constitutes one of the most

important methods of foreign trade# All documentary credits covering imports into

Bangladesh are subected to the provisions of UCPDC7"" :Union Customs and practices

for documentary credit 1$$2 revision )CC Publication 7""<#

='<'-' (efinition of Foreign Exchange

Foreign .change is a process( -hich is converted one national currency into another and

transferred money from one country to other countries#

!



According to %r# # # vitt# +oreign .change is that section of economic science

-hich deals -ith the means and method by -hich right to -ealth in one countryGs

currency are converted into rights to -ealth in terms of another countryGs currency# )t

involved the investigation of the method( -hich e.changes the currency of one country

for that of another( the causes -hich rented such e.change necessary the forms -hich

e.change may ta,e and the ratio or e*uivalent values at -hich such e.changes are

affected#

Foreign e.change is the rate of e.change in the both countriesF currency#

='<'<' Foreign Tra#e an# Foreign Exchange

International trade refers to trade bet-een the residents of t-o different countries#

Each country functions as a sovereign State -ith its set of regulations and currency# 0he

difference in the national of the e.porter and the importer presents certain peculiar

problems in the conduct of international trade and settlement of the transactions arising

there from# )mportant among such problems are

Da Different countries have different monetary unitsJ

D4 'estrictions imposed by countries on import and e.port of goodsJ

Dc 'estrictions imposed by nations on payment from and into their countriesJ

D# Differences in legal practices in different countries#

='<'=' Princi9les of Foreign Exchange

The follo-ing principles are involved in +oreign e.change

i 0he entire system

2



ii 0he media used

iii 0he monetary unit

='<'/' !egal Basis of Foreign Exchange Transactions

Foreign e.change transactions are performed under some legal regulations( as follo-s

• +oreign .change 'egulation Act L 1$5

• )mport and .port Control Act8 1$7"

• Customs Act81$$

• 0he uniform customs and practices for documentary Credit :UCPDC< L 1$$2

revision & )nternational Chamber of Commerce Publication no L 7""( is also an

important la- for settlement of terms and conditions bet-een e.porter and

importer in international trade#

• )mport Policy )ssued by %inistry of Commerce

• .port Policy )ssued By %inistry of Commerce

• )nternational 'ules )ssued by )nternational Chamber of Commerce :)CC<E

Uniform 'ules and Practices

• Different +oreign .change Circulars issued by Bangladesh Ban,

='<'?' F3nctions of Foreign Exchange

The Ban, actions as a media for the system of foreign e.change policy# +or this reason(

the employee -ho is related of the ban, to foreign e.change( specially foreign business

should have ,no-ledge of these follo-ing functions 8

5

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i 'ate of e.change

ii o- the rate of e.change -or,s

iii +or-ard and spot rate

iv %ethods of *uoting e.change rate

v Premium and discount

vi 'is, of e.change rate

vii Causes of e.change rate

viii .change control

ix Convertibility

x .change position

xi )ntervention money

xii +oreign e.change transaction

xiii +oreign e.change trading

xiv .port and import letter of credit

xv Non8commercial letter of trade

xvi +inancing of foreign trade

xvii Nature and function of foreign e.change mar,et

xviii 'ules and 'egulation used in foreign trade

xix .change Arithmetic

='<'' (efinition of !;

On behalf of the importer if the Ban, underta,es to ma,e payment to the foreign ban, is

,no-n as documentary credit or letter of credit#

A letter of credit is an instrument issued by a ban, to a customer placing at the letters

disposal such agreed sums in foreign currency as stipulated# An importer is a country

7



the seller# An irrevocable credit can be either confirmed or unconfirmed depending on the

desire of the seller# 0hus sort of credit is al-ays performed to revocable letter of credit#

Sometimes( letter of credits are mar,ed as either -ith recourse to dra-erF or -ithout

recourse to dra-erF#

Transferre# !;) A transferable credit is one that can be transferred by the original

beneficiary in full or in part to one or more subse*uent beneficiaries# Such credit can be

transferred once only# +ractions of a transferable credit can be transferred separately(

provided partial shipments are not prohibited#

Revolving !;) 0he revolving credit is one( -hich provides for resorting the credit to the

original amount after it has been utili/ed# o- much time it -ill be ta,ing place must be

specially mentioned in the creditT 0he revolving credit may be either cumulative or non8

cumulative#

Re# la3se !;) 3hen the clause of the credit authori/ing the negotiating ban, to

provide pre8shipment advance to the beneficiary is printed typed in red( the credit is

called 4'ed clause letter of credit#

Back to Back !;) 0he bac, to bac, credit is a ne- credit opened on the basis of an

original credit in favor or another beneficiary# Under bac,8to8bac, concept( the seller as

the beneficiary of the first credit offers it as security to the advising ban, for the issuance

of the second credit# 0he beneficiary of the bac,8to8bac, credit may be located inside or

the outside the original beneficiaryFs country#

Antici9ator: !;) 0he anticipatory credits ma,e provision for pre8shipment payment to

the beneficiary in anticipation of his effecting the shipment as per EC condition#

?',' Parties to a !etter of re#it



A letter of credit is issued by a Ban, at the re*uest of an importer in favour of an

e.porter from -hom he has contracted to purchases some commodity or commodities#

0he importer( the e.porter and the issuing ban, are parties to the letter of credit# 0here

are ho-ever( one or more than one ban,s that are involved in various capacities and at

various stages to play an important role in the total operation of the credit#

i< 0he opening Ban,#

ii< 0he Advising Ban,#

iii< 0he Buyer and the Beneficiary#

iv< 0he paying Ban,#

v< 0he negotiating Ban,#

vi< 0he confirming Ban,#

i The o9ening Bank) 0he opening Ban, is one that issues the letter of credit at the

re*uest of the buyer# By issuing a letter of credit it ta,es upon itself the liability to pay the

bills dra-n under the credit# )f the drafts are negotiated by another ban,( the opening

Ban, reimburses that Ban,# As soon as the opening Ban,( issuing a letter of credit :EC<(

it e.press its underta,ing to pay the bill or bills as and -hen they are dra-n by the

beneficiary under the credit# 3hen the bills are presented to or -hen antic is received that

bills have been presented to a paying or negotiating Ban,s its liability matures#

ii The A#vising Bank) 0he letter of credit is often transmitted to the beneficiary through

a ban, in the letters country# 0he ban, may be a branch or a correspondent of the opening

ban,# 0he credit is some times advised to this ban, by cable and is then transmitted by it

to the beneficiary on its o-n special form# 9n the other occasions( the letter is sent to the

ban, by mail or tele. and for-arded by it to the e.porter# 0he ban, providing these

services is ,no-n as the advising ban,# 0he advising ban, underta,es the responsibility

of prompt advice of credit to the beneficiary and has to be careful in communicating all

its details#

iii The B3:er an# the Beneficiar:) 0he importer at -hose re*uest a letter of credit is

issued is ,no-n as the buyer# 9n the strength of the contract that he ma,es -ith the

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e.porter for the purchase of some goods that the letter of credit is opened by the opening

ban,#

0he e.porter in -hose favour the credit is opened and to -hom the letter of credit is

addressed is ,no-n as the beneficiary# As the seller of goods he is entitled to receive

payment -hich he does by dra-ing bills under the letter of credit :EC<# As soon as he

has shipped the goods and has collected the re*uired documents( he dra-s a set of papers

and presents it -ith the documents to the opening ban, or some other ban, mentioned in

the EC#

iv The 9a:ing Bank ) 0he paying ban, only pays the drafts dra-n under the credit but

under ta,es no opening ban,( by debating the latter accounts -ith it if there is such an

account or by any other measured up( bet-een the t-o ban,ers# As soon as the

beneficiary has received payment for the draft( he is out of the picture and the rest of the

operation concerns only the paying ban, and the opening ban,#

v The Negotiating 4ank) 0he negotiating ban, has to be careful in scrutini/e that the

drafts and the documents attached there to be in conformity -ith the condition laid do-n

in the EC# Any discrepancy may result in refused on the part of the opening ban, to

honor the instruments is such an eventuality the negotiating ban, has to loo, bac, to the beneficiary for refund of the amounts paid to him#

vi The onfir"ing Bank) Sometimes an e.porter stipulates that a EC issued in his

favor be confirm by a ban, in his o-n country# 0he opening this country to add its

confirming to the credit the ban, confirming the credit is ,no-n as the confirming ban,

and the credit is ,no-n as confirmed credit#

='<'.+' ontents of the !;

$



Ban,s normally issued letter of credit :EC< on forms -hich clearly indicate the ban,s

name and e.tent of the ban,s obligation under the credit# 0he contents of the EC of

different Ban,s may be different #)n general EC contains the follo-ing information8

i Na"e of the 43:er) -ho is also ,no-n as the accounted since it is for his account that

the credit has been opened#

ii Na"e of the seller) 3ho is also ,no-n as the beneficiary of the credit#

iii *o"ent of the cre#it) 0his should be the value of the merchandise plus any shipping

charges intent to be paid under the credit#

iv Tra#e ter"s) Such as +#9#B and C)+8

v 0enor of the Draft -hich is normally dependent upon the re*uirements of the buyer#

vi Ex9iration #ate) 3hich is specified the latest date documents may be presented# )nthis manner or by including additionally a latest shipping date( the buyer may e.ercise

control over the time of shipment#

vii (oc3"ents re>3ire#) 3hich -ill normally include commercial invoice consular or

customers invoice( insurance policies as certificates( if the source is to be effected by the

beneficiary and original bills of lading#

viii General #escri9tion of the "erchan#ise) 3hich briefly and in a general manner

duly describes the merchandise covered by a letter of credit#

='<'..' Proce#3res of O9ening a !;

0he importer after receiving the proforma invoice from the e.porter( by applying for the

issue of a documentary credit( the importer re*uest his Ban, to ma,e a promise of

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0he documents sho-n under are ,no-n as e.port documents form the importerGs side#

0hese are 8

Di Bill of Exchange) 0he bill of e.change is that particular instrument through -hich

payment is effected in trade deals internal and international# 0he payment for the goods is

received by the seller through the medium of a bill of e.change dra-n on the buyer for

the amount depending on the contract# )t is a negotiable instrument# 0here are five main

parties involved in a bill of e.change# 0hey are 8

Da Dra-er

D4 Dra-ee

Dc Payee

D# ndorser

De ndorsee

Dii Bill of la#ing) A bill lading is a document of title to goods entitling the holder to

receive the goods as beneficiary or endorsee and it is -ith the help of this document on

receipt from the e.porter that the importer ta,es possession of the goods from the

carrying vessel at the port of destination#

Diii Air%a: 4ill ; Rail%a: recei9t) 3hen goods to be transported are small in bul, or

re*uiring speedy delivery or those are perishable in nature on the deal is in bet-een the

neighboring countries then mode of transports other than shipping may be resorted to far

the carriage of the goods Air-ays bill E 'ail-ay receipt ta,e place of Bill of lading

depending on the nature of the carrier#

Div o""ercial invoice) )t is the sellerGs bill for the merchandise# )t contains a

description of goods( the price per unit at a particular location( total value of the goods(

pac,ing specifications( terms of sale( letter of credit( bill of lading number etc# 0here is

no standard form far a commercial invoice# ach e.porter designs his o-n commercial

invoice form# 0he invoice is made out by the seller under his signature in the name of the

buyer and must be submitted in a set of at least 2 copies# )ts main purpose is to chec,

!



-hether the appropriate goods have been shipped and also that their unit price( total

value( mar,ing on the pac,age etc# are consistent -ith those given in other documents#

Dv Ins3rance 9olic:) )n the international trade insurance policy is a must to cover the

ris, of loss on consignments -hile they are on seas( roads( and air-ays# 0he insurance is

the responsibility of the buyers :consignee< under +AS( +9B and C&+ contracts and of

the seller :consignor< under C)+ contract# 0he policy must be of the type as specified in

the relative contract E credit# 0he policy -ould be for the value of C)+ price plus 1" :ten<

percent to cover the e.penses and that is re*uired to be obtained in the same currency as

that of the credit and dated not later than the date of shipment -ith claims being payable

at the destination# )t must be properly stamped# i,e a bill of lading it must be negotiable

and be endorsed -here it is payable to order#

Dvi ertificate of origin) 0his is a certificate issued by a recogni/ed authority in

e.porting country certifying the country of origin of the goods# )t is usually by the

Chambers of commerce# Some times( it is certified by local consul or 0rade

'epresentative of the importing country as per terms of the credit#

Dvii Packing list) 0he e.porter must prepare an accurate pac,ing list sho-ing item by

item( the contents of the consignment to enable the receiver of the shipment to chec, thecontents of the goods( number and mar,s of the pac,age( *uality( per pac,age net -eight(

gross -eight( measurement etc#

Dviii eight"ent an# *eas3re"ent) )ssued by recogni/ed authority :li,e chambers of

commerce and industry< in e.porting country certifying correct -eightment and

measurement of the goods e.ported#

Dix Bill of entr:) A bill of entry is a document -hich contains the particulars of the

imported goods as -ell as the amount of customs duty payable#

The ex9orters s34"it the follo%ing 9a9ers;#oc3"ents to the Negotiating

4ank)

2



i< Bill of e.change E Draft#

ii< Bill of lading#

iii< Air-ay bill E 'ail-ay receipt#

iv< ommercial invoice#

v< Insurance policy#

vi< ertificate of origin#

vii< Pac,ing list#

viii< eightment & measurement list#

i.< Other etc#

0he negotiating ban, after received the above documents E papers then this ban, scrutiny

the documents# 0he negotiating ban, sends the original shipping documents to the ECopening ban, and ,eeping the second copy -ith the negotiating ban,#

Pa:"ent Against (oc3"ents DPA(

Ban,s deal in documents and not in goods# )f the shipping document against the EC is in

order then the EC opening ban, must have to payment to the foreign ban, -ithin 2 days

or ! hours according as Uniform Customs and Practice for Documentary Credit

:UCPDC< 7"" of revision of )CC#

)f the shipping documents have any discrepancy( then the EC opening ban, informed to

the negotiating ban, -ithin days# 9ther-ise( the shipping documents have not

discrepancy# )f the importer have not ade*uate founds in the ban, account then the ban,

payment to the foreign ban, against the shipping documents#

='<'.<' O9erational Processes in IFI Banks Foreign Exchange

(e9art"ent

0he )nternational Division placed at the )+)C Ban,Fs head office at %otiheel is the

bac,bone of all international transaction that is conducted through the various branches

5



of the ban,# A total of !! branches of )+)C Ban, have the license to carry out

international trade functions# ach of these AD branches have foreign e.change

department -hose sole purpose is to carry out cross border transaction demanded by the

customers#

0he functions of such +oreign .change Department can be divided into three

sections

:a< Import Section

:b< E.port Section( and

:c< The +oreign 'emittance Section

0he follo-ing is a brief description of each of these sections#

Im'ort ection

This section deals -ith the import of foreign commodities into Bangladesh# )t starts -ith

the opening of an EC till the payments are made to the foreign e.porters# 0he import

section is in turn is divided into t-o divisions# 9ne division loo,s after Sight EC and

another one loo,s after Bac, to Bac, EC# 0he Basic difference bet-een these t-o types

of EC is that( sight EC re*uires at sight payment for the imported items( the buyer

should pay -ithin three days of documents arrival# And on the other hand( the issuance

period for Bac, to Bac, credit can range from t-o months to even a year depending on

the EC terms#

4*'ort ection

All .port departments of )+)C Ban,Fs branches are e*uipped -ith facilities that -ould

help an e.porter ship their good beyond the nationFs boundary( thus earning foreign

currency for the country and maority of such customers for )+)C Ban, td are involved

7



in the 'eady %ade =arments sector -ith only a fe- e.porting other different

commodities#

Foreign +emittance ection

Foreign remittance can be stated as the purchase and sale of freely convertible foreign

currency as admissible under .change Control 'egulations of the country# )n-ard

remittance is the purchase and out -ard remittance is the sale of foreign currency#

+or purchase of foreign currency through )+)C Ban, imited( an application must be

made to a specific AD branch and Bangladesh Ban,# 0he application form is called )%P

form if the purpose is import payments or for other purposes( the 0% +orm is used

such as re*uest for foreign currency in case of dollar( 0#C :0raveler Che*ue< +oreign

Demand Draft:+#D#D<(0elegraphic 0ransfer:0#0<(etc# )f the ban, is empo-ered to

approve the application( it affects the sale of foreign e.change and if the transaction

re*uires prior Approval from Bangladesh Ban,( the 0#% form is for-arded to Bangladesh

ban,# )n )+)C Ban,( the mode of remittances are ban, draft( mail transfer and ta,a

remittances#

Res3lts an# I"9lication

Every year the foreign transaction of )+)C Ban, ltd has been on the rise contributing

more and more to the countryFs economic gro-th# And the last fe- years -ere no

different -ith significant rise in remittance during the first four months of !"11# o-ever

the import and e.port didnFt sho- any signs of restrains and neither did it sho- any

changes in terms of commodities being traded( as the volume of trade ,ept on increasing#

=iven belo- is a graph sho-ing the foreign e.change trade of )+)C Ban, during the past

fe- years



So3rce) Annual report !""

3e see that there is a sharp rise in +oreign 0rade business bet-een !""7 and !""

sources from annual report -hich had continued into !"11 as -e -ill see in the upcoming

portion of this report#

DaEx9ort

E.port is perhaps the most import form of international trade( because it is a -ay through

-hich a country can bring in foreign currency to increase its foreign reserve and gain a

favorable balance of payment# )+)C Ban, imited is as efficient at conducting .port

operation li,e any other services that they provide# 0hey no- have !! AD branches(

-hich has the authority to carry out e.port operations# ;arious sorts of commodities are

e.ported abroad through )+)C Ban,s but 'eady %ade =arment consists of most of the

e.ports( earning huge amount of foreign reserve every year# =iven belo- is the monthly

brea, do-n of e.port for the year !""$( !"1" and the first four months of !"11#



1al3e of Ex9ort DA"o3nt in !ac 0S(

>ear

%onth

!""$ !"1" !"11

@anuary $1#27 72#2" ?$2#!

+ebruary 27#" 7$$#! 15!#"$

%arch ?"5#1? ?1#7$ 1""1#1

April "?#? 7$7#" ??5#$

%ay ?5#$ !7?#1$

@une 1#! 12$#!!

@uly 21#5 !#1!

August 5#"" ?25#"5

September 2"#?7 77#72

9ctober 5$#?1 !$#71

November !#21 7#

December 77#"? $25#!5

0otal $?5#5" 1"1#2 !$!!#"5

Average 7#2 ???#57 2"#71

1al3e of Ex9ort for the 2ear -++, -+.+ an# -+.. DCan3ar: to A9ril

So3rce) Annul 'eport !""$( !"1"(

Before -e go in to any details regarding the chart( it is important that -e have a clear

concept about the t-o modes of e.port payments that is practiced in international trade

-orld-ide# 9ne is the Sight bill( -here the e.porter are paid at sight for the products

they ust e.ported and the other one is the Usance Bill( -here the e.porter gets their

payment after a certain period of time depending on the EC terms and condition# Usance

bills or Deferred Bills are usually for ra- materials or semi finished products that are

e.ported from Bangladesh( and once they reach their final destination they undergo

further processing#

As -e ta,e a closer loo, at average column of the chart -e -ill see that the average value

is increasing every year( and more importantly the average value of e.port for the first

four months of !"11 by itself has surpassed the average value of both the year !""$ and

?



!"1"# 0his gives us hope that !"11 could be a very promising year for Bangladesh in

terms of e.port# =iven belo- is a bar graph of the same chart displayed above( and form

here ) can dra- some more conclusion about e.port at )+)C Ban, td#

1al3e of Ex9ort in ter"s of 0S(

So3rce) Annul 'eport !""$( !"1"

By loo,ing at the bar graph above -e can again emphasi/e on the fact that the first four

months e.port of !"11 by itself loo,s very promising and -e can only -ait and see ho-

much e.port is done in this year# +rom here( -e can also conclude that Sight Bills are

more common than Usance Bills in Bangladesh( -hich simply means that finish products

are mostly e.ported from Bangladesh#

$



The Ta4le Sho%n Belo% Gro%th of Ex9ort !; O9en in IFI Bank

!i"ite#)

2ear

*onth

!; O9ene# in

-++,

!; O9ene# in

-+.+

!; O9ene# in

-+..DCan3ar: to

A9ril

@anuary !2! !!1! !!72

+ebruary !"! !!1$ !!51

%arch !7$! !22 !?2

April !1$1 !!$7 !22!

%ay !!" !7

@une !2!? !52$

@uly !1 !175August 1$! !!?

September 1$ 1$2

9ctober 17$1 1?"5

November !2" !!12

December !2"1 !52?

0otal !"2? !75$ $!

Average !1$#?222222 !!$7#7 !517#7"


N3"4er of Ex9ort !; O9en

?"



Gra9h Sho%n *onthl: Ex9ort !; O9en of -++, -+.+ & -+.. D.st Fo3r

*onth


Total Ex9ort !; O9ene# at IFI Bank !t#2ear -++, 2ear -+.+ Percentage Gro%th

-?+<@ -/=, ?J

/rowt$ in 4*'ort LC o'en d#ring 255962515

ven though -e have seen some changes in the type and amount of Commodities being

e.ported from Bangladesh( the value of total goods being e.ported from the country has

surprisingly e.perienced a gro-th of almost H#

D4I"9ort

?1



Import is another primary form of foreign trade( -here foreign commodities are brought

into the country for consumption# )+)C Ban,s has been providing this services to its

client since it began operation in 1$?# ;arious sorts of commodities are imported in to

Bangladesh from +ast %oving Consumer =oods to Capital %achinery# 0he table sho-n

belo- gro-th of )mport EC open in )+)C Ban, imited

2ear

*onth

!; O9ene# in

-++,

!; O9ene# in

-+.+

!; O9ene# in

-+..DCan3ar: to

A9ril

@anuary 1551 17 1$11

+ebruary 12?! 1!"5 1771

%arch 1$5? !"2 1$$7April 177 151 15!

%ay 17$" 17!

@une 15?1 17!2

@uly 21!? 151

August 1!$ 1$!!

September 1725 1

9ctober 125 1?21

November 15 157

December 2"1! 17$7

0otal !15" !"2? "$$

Average 1?2#$1 1$#222222 15#7


N3"4er of I"9ort !; O9en

?!



Gra9h Sho%n *onthl: I"9ort !; O9en of -++, -+.+ & -+.. D.st Fo3r

*onth


Above -e sho-n EC open are increases month to month( reason behind such consumer

behavior is the fact that foreign products are thought to have higher *uality than local

ones by our local people# 0he Second reason could be China( -ho is gaining mar,et all

over the -orld by introducing all sorts of goods at a very cheap price#

0he pie chart sho-n in the ne.t page -ill give us clearer graphical presentation on the

matter#

Total I"9ort !; O9ene# at IFI Bank !t#

2ear -++, 2ear -+.+ 2ear -+..DCanA9ril-.=+ -+<?@ +,,

A1) .@<',.??? .?,'<<<<<< .='/

/rowt$ in Im'ort LC o'en d#ring 25596251562511

?2



)mport .port and 'emittance EC Amount :USD< of )+)C Ban, 6a-ran Ba/ar Branch+rom @une to August

.port is very high in the month of @une because it is the last month of fiscal year and

ne- budget -ill effect the ta. rate# So importers import their product early# 'emittance

supply is improving in August before the id festival

Number of import EC of )+)C Ban, 6a-ran Ba/ar Branch +rom @une to August

)nconsistency of opening number of EC bet-een three months# )n the month of @une the

number of EC opening is highest and the ne.t month @uly is lo-est#

So3rce) 6a-ran Ba/ar Branch

?5

Number of LC

!5

46

0

20

40

60

June July

"0

August

13

"ne "ly Agst

Import

#$port

Remitance



ven though -e have seen some changes in the type and amount of Commodities being

imported into Bangladesh#

0he pie chart belo- -ill provide us -ith further insight and comparison bet-een the

commodities that has been imported during !""$ and !"1"#

Percentage of #ifferent o""o#ities 4eing I"9orte# #3ring -++, & -+.+


?7

LC #$ene% in 200&

CONSUMER

GOODS 11

% INTERMEDIATEGOODS 8

%

INDUSTRIAL

RAWMATERIALS

52

%

PETROLEUM

&PETROLEUM

PRODUCTS

0

%

CAPITAL MACHINERY

10

%

OTHERS

12

%

MACHINERY FOR MISC.

INDUSTRIES

7

%

LC #$ene% in 2010

CONSUMER

GOODS 15

%INTERMEDIATE

GOOD

S 7

%

INDUSTRIAL

RAWMATERIALS

50

%

PETROLEUM

&PETROLEUM

PRODUCTS

0

%

CAPITAL MACHINERY

9

%

MACHINERY FOR

MISC.

INDUSTRIES7

%

OTHERS

12

%



No- if -e -ant to compare the volume of different genre of goods being imported -e

-ould see that most of the imports in Bangladesh are industrial ra- materials and it

represents almost 7"H of the total imports# 0hen -e have Consumer =oods contributing

to 17H of the total import#

/rowt$ in 4*'ort 7 Im'ort LC o'en d#ring 255982515 7 2511(1st Fo#r ont$s)


Dc Re"ittance

IFI Ban, has been providing its customer remittance services since its early operation#

%ost of the remittance that comes into Bangladesh is from the %iddle ast# Until

recently( )+)C Ban,s remittance service didnFt gain popularity as they didnFt have proper

net-or, -ith e.change houses aboard# o-ever things have changed no-( most of the

ban,s branches no- have a separate des, for 3estern Union# 0hey also have net-or,s

-ith Spot Cash( -hich has net-or,s all around the globe ust li,e 3estern Union#

=iven belo- is a chart sho-ing the monthly in-ard of +oreign Currency in terms of USD

at )+)C Ban, imited

?



Re"ittance In%ar# DA"o3nt in !ac 0S(

>ear

%onth

!""$ !"1" !"11

@anuary 5#1 157#! !#77

+ebruary #?1 7#"$ $#25

%arch ?1#" $!#2" #!5

April !#?" ?7#12 !#2$

%ay 5#1 ?#!5

@une 1"1#7" ?2#"@uly 111#2 ?"#?

August 11$#$? 1#"

September 11$#$" 1"#2$

9ctober ?!#$$ 155#"

November $$#1? $"#51

December 1"!# ?$#!2

0otal 11"?#51 115!#7 !"#7!

Average $!#27 $7#!!"?2222 #2

ont$l0 Inward of Foreign C#rrenc0 in %erms of &


A"o3nt in !ac 0S(

-++, -+.+ Gro%th

Inflo% of

0S(

..+@'=. ..=-'?/ <'.+J

Percentage Gro%th in inflo% of Foreign Re"ittance

+rom the above t-o tables -e can conclude that the in-ard of foreign currency is

increasing every year at )+)C Ban,# 0he gro-th bet-een !""$ and !"1" -as about

?



2#1"H# 0he inflo- of foreign currency has ta,en a leap# )f -e loo, at the first four

month of !"11( -e -ill see that the figures during those months are much higher than the

same months of the previous year# As ) have told you earlier( the main reason behind this

is the ne- net-or, that )+)C Ban, has set up -ith different e.changes houses around the

globe# %oreover( such high figure could also be due to the regular increase in foreign

remittance over the years( as more and more people are option to -or, outside

Bangladesh# 0he bar graph belo- gives us a much clearer vie- about the inflo- of

remittance#

??



;earl0 Inflow of Foreign C#rrenc0 2559 and 2515 ("mo#nt in Lac &)So3rce) Annul 'eport !""$( !"1"

*onthl: Inflo% of Foreign 3rrenc: D0S(

Over < 2ear Perio#

*onthl: Inflo% of Foreign 3rrenc: fro" -++, till -+.. D. st Fo3r *onths

So3rce) Annul 'eport !""$( !"1"(

?$

'nflo( of )SD *

1+10",41

1+142,65

2&0

5"0

"!0

1160

'nflo( of )SD 1+10",41 1+142,65

200& 2010



No- if -e loo, for some trend in terms of 'emittance from the line graph belo-( -e

-ould see that there is no specific patterns in8bet-een the years( only that the 'emittance

amount increase each year# But( the most interesting finding is that the inflo- of foreign

'emittance increases sharply as the year begins to come to an end( starting from

September# 0his leads us to conclude( that Non 'esident Bangladeshis :N'B< prefers to

send more amount of money at the end of every year( maybe because of the bonuses or

other year end monetary benefits that they might get during those periods#

Re"ittance O3t%ar# DA"o3nt in !ac 0S(

>ear

%onth

!""$ !"1" !"11

@anuary ??#7! 1#7! #2

+ebruary #"1 7#? #7!

%arch 7!#$1 ?#" #22

April 2#!1 1#5? 7#7?

%ay 75#7 2#15

@une 7#1" $#?

@uly 5#"5 ?"#!2

August 7#2 5#11

September !#$ 2#7$

9ctober #2! 2#7

November ?2#?1 ?#$!

December #5? 1#"

0otal ?"5#2? ?1#" 2"#1

Average #"21 ?#""7 #$


A"o3nt in !ac 0S(-++, -+.+ Gro%th

O3tflo%

of 0S(

@+='<@ @.?'+? .'=/-J

Percentage Gro%th in o3t%ar# of Foreign Re"ittance

$"



2earl: O3t%ar# of Foreign 3rrenc: -++, an# -+.+ DA"o3nt in !ac 0S(


*onthl: O3t%ar# of Foreign 3rrenc: D0S(Over < 2ear Perio#

$1

#utflo( of )SD *

"04,3""16,06

2&0

5"0

"!0

1160

#utflo( of )SD "04,3" "16,06

200& 2010



*onthl: Inflo% of Foreign 3rrenc: fro" -++, till -+.. D. st Fo3r *onths


A"o3nt in !ac 0S(

2earl: In%ar# an# o3t%ar# of Foreign 3rrenc: fro" -++, till -+.. D. st Fo3r

*onths


Foreign Re"ittance Tren#

$!



*onth ise Tren# of Foreign Re"ittance

Given 4elo% is a co3ntr: %ise 4reak#o%n of inflo% of Foreign Re"ittance at IFI

Bank !i"ite#'


$2



Fin#ings

The dataFs used in this report are of the last fe- years onlyJ it ranges form !""$ till the

first four months of !"11# ence the statistical analysis that ) get from this small base of

numerical dataFs might not be viable in the long run# %oreover( these dataFs themselves

are thought to have some discrepancies( hence may not provide us -ith the right

conclusion#

*y aim in doing this proect -as to figure out the current trend of +oreign .change at

)+)C Ban, td( so that it could be used as an e.ample for the overall foreign e.change

transaction of our economy# But ho-ever( )+)C Ban, only represents a tiny fraction of the

foreign transaction that ta,es place in Bangladesh( and hence is not a strong indicator of

the overall economy#

hile analy/ing the import dataFs ) have used numerical values from EC opening

segments only and not the EC payment dataFs# But in realty not all ECFs opened are

fully carried out( some ECFs may get cancelled( as a result my analysis is e.posed tosuch discrepancies#

No matter -hatever the challenges are in the area of +oreign 0rade( )+)C Ban, is fully

e*uipped to face any obstacle# +or the last 7 >ears they have hold the Number ! position

in the Bangladesh Ban,s CA%S rating#

As the economy of Bangladesh is increasing so is the country foreign trade and )+)C

Ban,s li,e al-ays have played its role in ma,ing sure that things go smoothly# o-ever(

since s,y is the limit( the ban, is still evolving every day striving to provide its +oreign

.change customer and others -ith the best possible service#

E.port( )mport and 'emittance are all sho-ing positive trends even after the global

challenges that -e are facing today# yped fuel and rice price all over the -orld along

$5



-ith the countryFs o-n political instability couldnFt bring do-n the nations economy and

!"11 still seems to be another promising year for us#

In#3str: Anal:sis

In our country( the ban,ing sector today is undergoing significant changes -ith respect to

regulations( business ris,s( modus operandi( and level of services# 0here has been

increasing pressure on the commercial ban,s today to reduce lending rates# Ban,s are

also being challenged by re*uiring to create provision at the rate of 1 H :one percent< on

no funded credit portfolio# +urthermore( retail ban,ing and small enterprise segment of

credit portfolio re*uire a loan loss provision reserve to the tune of !H :t-o percent<#

Above all( the Ban, %anagement is faced -ith the most important goal to ensure an

acceptable level of return on shareholdersG investment#

SOT Anal:sis

The Ban,Fs strength and competitive capabilities can be sho-n by the S390 analysis#

0he S390 analysis is grounded in the basic principle that strategy L ma,ing efforts must

aim at producing a good fir bet-een a companyFs resource capability and its e.ternal

situation#

$7



SOT Anal:sis of International Finance Invest"ent an# o""erce

DIFI Bank !t# at a Glance

Potential Reso3rce Strength Potential Reso3rce eaknesses

=ood-ill

Strong Board of Directors

S,illed mployee

Better Service

ess mployee 0urnover

uge Authori/ed +und

uge 'eserve +und

3or, %anually

imited 9nline ban,ing facility

ac, of A0% facility

ac, of internet ban,ing facility

$



uge geographic coverage

Strong Promotional activity

Potential o"9an: O99ort3nities Potential External Threats

=ood chance of e.panding

geographically -ithin Bangladesh#

9pportunity to ta,e mar,et share

a-ay from rivals by offering ne-

innovative product or services#

ntry of ne- commercial ban,s &

merchant ban, etc#

Competitors are offering more

innovative products and services

regularly#

Bargaining po-er of customer is

increasing#

Continuous devaluation of money#

Potential Reso3rce Strength in (etails)

$



Potential Reso3rce

Strength

(etails

=ood-ill 3ith )ts high *uality financial service )+)C Ban, has no-

established itself as one of the leading and strongest of

private sector Bangladeshi ban,s

Strong Board of

Directors

0he sponsors of )+)C ban, are reputed personalities in the

field of trade and commerce and their sta,e ranges from

shipping to te.tile and finance to energy etc#

S,illed mployee )+)C Ban, imited follo-s a strict screening system during

appointing their employees follo-ed by a very rigid

training period# ach and very employee of )+)C Ban,

imited has to go through on the ob training for time to

time basis#

Better Service )+)C Ban,Fs continuous firm commitment to e.cellent

customer service helped the ban, to attain the remar,able

gro-th in many lines of business# )+)C Ban, td# 9ffers all

,inds of Commercial Corporate and Personal Ban,ing

services covering all segments of society -ithin the

frame-or, of Ban,ing Company Act and rules and

regulations laid do-n by central ban,# Diversification of products and services include Corporate Ban,ing( 'etail

Ban,ing and Consumer Ban,ing right from industry to

agriculture( and real state to soft-are#

ess mployee )+)C Ban, firmly believes that consistently strong

$?



0urnover performance of the ban, is the result of the team of

committed ,no-ledgeable team of employeeFs thus human

resource most valuable asset of the ban,# )+)C ban,

provide the employees right amount of motivation -hich

helps )+)C ban, to achieve less employee turnover#

uge 'eserve +und According to the Annual report of the year !""$ authori/ed

capital of )+)C Ban, imited is 727" %illion 0,#

uge geographiccoverage

According to the Annual report of the year !"1" reserve

fund of )+)C Ban, imited is uge#

Strong Promotional

activity

Currently )+)C ban, has more then $7 branches all over

Bangladesh#

)+)C Ban, al-ays tries to promote their products through0;C( Ne-s Paper advertisements( Direct Sales .ecutive

etc#

Potential Reso3rce eaknesses in (etails

$$



mployeeturnover

tendency

high

%ar,eting

policy

)nsufficient

of paid up

capital

%ost of theemployeesare not

adapted inonline

ban,ing

ac, of

A0%

Ne-

comers is

on ban,ing

3ea,ness

Potential Reso3rce eaknesses (etails

3or, %anually %ost of -or,s of =eneral Ban,ing is done

manually# i,e issuance of Che*ue boo, or

any other instrument( -hich is( time

consuming and has high chances of

mista,es#

imited 9nline ban,ing facility Not all branches of )+)C Ban, td have

online facilities( -hich detain them from

better serving their customers#

ac, of A0% facility ac, of A0% facility is another -ea,ness

of )+)C Ban, td# 0his ma,es )+)C Ban,

td less competitive then other P;0 Ban,s

those -ho have A0% facilities#

ac, of internet ban,ing facility )+)C Ban, td donFt Provide internet

ban,ing facilities to its customers#

1""



Potential o"9an: O99ort3nities in (etails)

1"1



Potential o"9an: O99ort3nities (etails

=ood chance of e.pandinggeographically -ithin Bangladesh#

Although )+)C Ban, td has more than $7

branches all over Bangladesh it still have

scope of increasing its business by

e.tending geographically#

9pportunity to ta,e mar,et share

a-ay from rivals by offering ne-

innovative product or services#

)+)C Ban, td can introduce ne- product

and services li,e internet ban,ing( any time

ban,ing( insurance service in order toincrease its mar,et share#

1"!



Potential External Threats in (etails)

Potential External Threats (etails

ntry of ne- commercial ban,s(

leasing companies and merchant

ban, etc#

Ne- Commercial ban,s and leasing

companies li,e Dutch Bangla( Citi NA(

SBC( SCB( )DC etc could became a

threat in the -ay of )+)C Ban, tdFs

gro-th

Competitors are offering more i,e Dutch Bangla have their A0% booth

1"2

9pportunity

Big net-or, through branches %ar,et capture through branch Aggressive product



innovative products and services

regularly#

around every corner( All the accounts of

SBC( SCB( Citi NA have online facilities#

Bargaining po-er of customer is

increasing#

Numbers of private ban,s are increasing

day8by8day thus the choices of customers

are increasing day by day#

Continuous devaluation of money# Continuous devaluation of money is

another threat for ban,ing business#

1"5



=lobal

'ecessio

n

Political

System

'aising of

Ne-=eneration

Ban,

=ovt#)nterferenc

e

;iolence

0hreat

oncl3sion An# R eco""en#ation

1"7



Amidst all these changes during !"1"( )+)C Ban,s business gre- across all areas of our

operations( despite high commodity and energy prices( intensified competition in the

financial service sector and changing socio8economic conditions# 0he Ban, did -ell as

compared to the mar,et in terms of profit and turnover# Superior performance in each

operational area -as achieved# =ross revenue of the Ban, gre- by 57 percent to reach

0,# 1"("?2 million -hile operating profit increased by 72 percent to arrive at 0,# 2(!7

million#

)+)C Ban, td is Ga ban, -ith a differenceG( and during year !"1"( the mission -as once

again very -ell reflected both in terms of *uantitative as -ell as *ualitative measures by

securing superior performance in terms of operational gro-th( profitability( moving

to-ards implementation of the state8of the8 art ban,ing soft-are solution( and e.panding

the net-or, by opening a handful of ne- branches at potential locations# During the

immediate past year( 0he ban, has been consistently rated as the best local commercial

ban, in the country#

0he Ban, has devised appropriate strategies and listed priorities that -ould be

implemented during year !"1" so that the Ban, continues to perform better# 0he Ban,

no- has a net-or, of $7 branches in Bangladesh( other country Nepal L 17 Branches(

Pa,istan L ! Branches and 9man L Branches#

R eco""en#ations

1"



e all ,no- that there is al-ays room for improvement and s,y is the limit# ven

thought the +oreign .change services that )+)C Ban, td is providing is top notch( there

is more they can do in order to ma,e their services even better and of international

standards# =iven belo- are some recommendations that the Ban, may benefit from(

• Increase t$e n#mber of <ostro "cco#nts:

Nostro Accounts are +oreign Currency accounts that the ban,s hold -ith foreign Ban,s

operating in different courtiers# )f they increase the number of such account then(

payments for EC could be easily made through those accounts rather than for-arding the

foreign currency through other foreign ban,s( -hich results in higher e.penses#

• "#tomation

)+)C Ban, has already brought soft-are called %)S>S( famous ban,ing soft-are -hich

is no- being implemented to all of its branches# But ho-ever the employees are still

struggling to conduct foreign e.change services through this soft-are because of its

comple.ity# And as a result valuable time and energy is being -asted -hile conduction

such foreign e.change services# Some further simplification and modification to the

soft-are might actually help the ban, gain momentum in providing international trade

services li,e .port( )mport and 'emittance#

• Increase Limit on LC =al#e

very C has limits on its total value( imposed on them according to the Bangladesh

Ban,s regulations( and based on the ris, factors# o-ever the Ban,s stills has the

authority to ma,e some changes to the limit -ithin a certain specified range# ence( if

1"



)+)C Ban, is more fle.ible than it can open more ECFs -ith higher values thus

increasing their profitabilityJ ho-ever in this case they -ould be ta,ing more ris,#

•

+ate of interest on L%+

Payments for ECFs could also made through pre arranged credit facilities that the

customer may have -ith the Ban,# Usually( the rates of interest on these credits are

e.cessively high -hich actually discourages the customers# 'educing interest on such

credit facilities -ould actually induce the clients to do more global trade thus increasing

the ban,s profit as -ell as the -ell being of the countryFs conomy#

• LC margin BB

Before opening an EC a customer is re*uired to pay the ban, a certain percentage of the

total EC value in advance( called the margin# )f )+)C Ban,s reduces the rate of margin

then perhaps they can attract more customers# At the moment( Companies -ith good

relationship -ith the ban,s only benefits -ith lo-er margin level over others#

• +ed#ce C$arges

)n order to do any ,ind of foreign trade -hether be it remittance( .port or even )mport

charges are applicable every-here# Charges includes( S3)+0 charges :Charge for

sending the EC electronically<( Document andling Charges( Stamps Charges as -ell as

;A0# )f such charges could be reduced )+)C Ban, -ill definitely attract more customers#

• +ela* restriction on certain 'rod#cts

1"?



)+)C Ban, has put some restriction on the import of certain products due to bad

e.perience form the past# )f they could -ard of their fear and start importing such

products again they -ould definitely be adding fe- more figures to the ban,s profit#

R eferences

1"$



@acson( S# & Schuler '#:!""<# 9verall Ban,ing 9peration A Partnership Perspective(

South8 3estern Publishing#

Smigel( # %# :!""7<# Basic =eneral Ban,ing & +oreign .change Business( Delhi'epli,a Press Pvt ltd# Noe( '# A# :!""7<# +oreign .change Business( Ne- yor,

%c=ra-8 ill#

Bank P34lications)

)+)C Ban, td :!"1"< Academic calendar )+)C( Dha,a

)+)C Ban, td :!""<( Annual 'eport( )+)C( Dha,a#

)+)C Ban, td :!""<( Annual 'eport( )+)C( Dha,a#

)+)C Ban, td :!""?<( Annual 'eport( )+)C( Dha,a#

)+)C Ban, td :!""$<( Annual 'eport( )+)C( Dha,a#

)+)C Ban, td :!""1"<( Annual 'eport( )+)C( Dha,a#

# )+)C =eneral Ban,ing Policy Boo,#

e4 site)

---#ificban,#com 1? :Accessed on 17E"$E11( 1"#!7 pm<

http://www.ificbank.com/

http://www.ificbank.com/

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