report on partex

CCHAPTERHAPTER- ONE- ONE

INTRODUCTION

Islami Bank Bangladesh Limited.

------------------------------------------------------------- ------------------------------------------- 1 | P a g e AN OVERVIEW ON FOREIGN EXCHANGE OPERATION OF IBBL

1.0 Background of the Study

This report was done as part of the requirement for successful completion of the internshipThis report was done as part of the requirement for successful completion of the internship

program. Exposure to the business world and acquiring practical work experience was theprogram. Exposure to the business world and acquiring practical work experience was the

primary objective of this assignment. I was attached with IBBL Bank ltd. For myprimary objective of this assignment. I was attached with IBBL Bank ltd. For my

internship. The report focuses on internship. The report focuses on Foreign exchange operation as I was attached with that as I was attached with that

division during the tenure of my internship. The topic for this report was decided upondivision during the tenure of my internship. The topic for this report was decided upon

after approval by my faculty advisor Mohammad Rakib Uddin Bhuiyan lecturer ofafter approval by my faculty advisor Mohammad Rakib Uddin Bhuiyan lecturer of

Northern UniversityNorthern University BangladeshBangladesh.

1.1 Scope of the Study

The scope of this paper is to discussion of various aspects of Foreign exchange operation

of IBBL.

Foreign exchange profile of the selected banks.

Foreign exchange Remittance Procedure.

Import policy.

Export policy

Letter of credit

Analysis of the findings and recommendation.

1.2 Objectives of the Study

The first objective of writing the report is fulfilling the partial requirements of the BBA

program. The main purpose of this study is to have a better orientation on Foreign

Exchange business performances of the bank. In this report, I have attempted to give an

overview of Foreign Exchange Operation of Islami Bank Bangladesh Limited . Following

are the other objectives

To familiar the history and operations of Islamic Banking in Bangladesh.

To show overall Foreign exchange proposal, appraisal procedures, documentation system of IBBL and Conventional Banks.

To show an overview of Foreign Exchange Operation of IBBL. To show the differences with conventional banking regarding Foreign exchange

aspects


To identify strength and weakness of Foreign exchange of IBBL.

1.3 Methodology

The study is performed based on the information extracted from different sources

collected by using a specific methodology. First of all I selected the topic of the report

then I had to collect information relating to the topic by primary and secondary sources

and through personal interview. After gathering the information I had to determine the

procedure of research and sampling plans. After gathering all the information I required, I

have come up with an expected result of the report.

Population

All the Branches of IBBL located in everywhere in Bangladesh has been taken into

consideration as population.

Sample:

Islami Bank Bangladesh Ltd, New market Branch.

1.4. Sources of Information Source of data of this report can be divided into two categories:

Primary Sources: Practical experience of banking. Training, workshop & seminar. Related files, books study provided by the officers concerned.

Secondary Sources: Research papers, training materials, magazines. Annual Report ,Audit Reports of IBBL Banking related text books, Relevant books, Research papers, Newspapers and

Journals, Manuals. Class notes of IBTRA, Website of IBBL.

1.5 Limitations of the Study From the intention to make the report realistic and properly accepted this report has been conducted. However, many problems appeared in the way of conducting the study. During the study it was not possible to visit the whole area covered by the bank although the financial statements and other information regarding the study have been considered. The study considers following limitations:

The study does not cover critical analysis and implementations of comparative

study in an intensive manner.


During my internship program up to date information was not published.

The time of this study was very inadequate to obtain depth knowledge in every

department.

Another limitation of this report is Bank’s policy of not disclosing some data and

information for obvious reason, which could be very much useful.

This study completely depended on official records and annual reports.

Confidentiality of data was another important barrier that was confronted during

the conduct of this study.

Rush hours and business was another reason that acts as an obstacle while gathering data

Lack of proper knowledge about internship title.


CCHAPTERHAPTER- TWO- TWO

AN OVERVIEWAN OVERVIEWOFOF

ISLAMI BANK BANGLADESH LTD.ISLAMI BANK BANGLADESH LTD.


Islami Bank Bangladesh Limited

2.0 What is Islamic Bank?

An Islamic Bank is a financial institution that operates with the objectives of

implementing and materializing the economic and financial principles of Islam in the

banking arena.

The definition of Islamic Bank as approved the General Secretariat of the OIC is stated in

the following manner. “An Islamic Bank is a financial institution whose status, rules and

procedures expressly state its commitment to the principle of Islamic Shariah and to the

banning of the receipt and payment of interest on any of its operations.”

According to Islamic Banking Act 1983 of Malaysia, “Islamic Bank is a Company which

carries on Islamic banking business. Islamic banking business means banking business

whose aims and operations do not involve any element which is not approved by the

religion of Islam.”

2.1 Why Islamic Bank?

The objective of Islamic banking is not only to earn profit, but to do good and welfare to

the people. Islam upholds the concept that money, income and property belong to Allah

and this wealth is to be used for the good of the society in general and human being in

particular.

Islamic banks operate on Islamic principles including profit and loss sharing, strictly

avoiding interest, which is the root of all exploitation and is responsible for large scale

inflation and unemployment.

An Islamic bank is committed to try its best to do away with disparity and establish justice

in the economy, trade, commerce and industry, build socio-economic infrastructure and

employment opportunities.

2.2.1 Introduction of IBBL.

Islami Bank Bangladesh is one of the pioneer private commercial bank of Bangladesh. It

was incorporated on 13.03.1983 as a public company with limited liability under company

act, 1913. The Bank started its business from 30.03.1983. IBBL is based on Islamic

Sharia’h. It is the first Islamic Bank in Southeast Asia. Now, it is the leading private

commercial Bank in Bangladesh. IBBL is committed to do its all activities in interest free


profit sharing by complying Islamic Shari’ah. IBBL through its steady progress and

continued success has, by now, earned the reputation of being one of the leading private

sector banks of the country.

2.2.2 Mission of IBBL

To establish Islamic banking through the introduction of a welfare oriented banking

system and also ensure equity and justice in the field of all economic activities, achieve

balance growth and equitable development through diversified investment operations

particularly in the priority sectors and less developed areas of the country. To encourage

socio-economic uplift and financial services to the low income community particularly in

the rural areas.

2.2.3 Vision of IBBL

The vision of IBBL is to always strive superior financial performance, be considered a

leading Islamic Bank by reputation & performance.

To establish & maintain modern banking techniques.

To ensure soundness & development of financial system based on Islamic

principles.

To build–up a strong & efficient organization with highly motivated

professionals.

To work for the benefit of people& encourage savings in the form of direct

investment

Ensuring stability in financial system with accountability, transparency

&integrity.

2.2.4 Functions of IBBL

The functions of Islami Bank Bangladesh Limited are as under:

To maintain all types of deposit accounts.

To make investment.

To conduct foreign exchange business.

To extend other banking services.

To conduct social welfare activities through Islami Bank Foundation.

2.2.5 Aims & Objectives


To conduct interest –free banking

To establish participatory banking instead of banking on debtor – creditor

relationship.

To invest on profit and risk sharing basis.

To accept deposits on Mudaraba & Al-Wadeah basis.

To establish a welfare-oriented banking system.

To extend co-operation to the poor, the helpless and the low-income group for

their economic upliftment

To play a vital role in human development and employment generation.

To contribute in achieving the ultimate goal of Islamic economic system.

Alleviating poverty through Zakat and profit sharing micro-finance.

2.2.6 Islamic Banking in Bangladesh

In August 1974, Bangladesh signed the Charter of Islamic Development Bank and

committed itself to reorganize its economic and financial system in accordance with

Islamic Shari‘ah. Earlier in November 1980, Bangladesh Bank, the Central Bank of the

country sent a representative to study the working of several Islamic banks abroad.

In November 1982, a delegation of IDB visited Bangladesh and showed keen interest to

participate in establishing a joint venture Islamic band in the private sector. They found a

lot of work had already been done and Islamic banking was in a ready form for immediate

introduction. Two professional bodies Islamic Economics Research Bureau (IERB) and

Bangladesh Islamic Bankers’ Association (BIBA) made significant contributions during

the formative stage of Islamic bank in the country.

At last, the long drawn struggle to establish an Islamic bank in Bangladesh come to a

reality and Islami Bank Bangladesh Limited was established in March 1983 in which 19

Bangladeshi nationals, 4 Bangladeshi institutions and 11 banks, financial institutions and

government bodies of the Middle East and Europe including IDB and two eminent

personalities of the Kingdom of Saudi Arabia joined hands to make the dream a reality.

Later other seven Islamic Banks, different Islamic Insurance Companies and Financial

Institutions were established in the country.

2.2.7 Corporate Information: 31.12.2009


Islamic Bank Bangladesh Limited is a multinational Joint Venture Public Limited

Company engaged in commercial banking business based in Islamic Shari‘ah with 57.36%

foreign shareholding having largest branch network (211 brunches) among the private

sector Banks in Bangladesh. It was established on the 13th march 1983 as first Islamic

Bank in the South East Asia.

Date of Incorporation 13th March 1983 Inauguration of 1st Branch, Local Office, Dhaka. 30th March 1983

Formal Inauguration 12th August 1983 Authorized Capital Tk.10,000.00 millionPaid-up Capital Tk.4752.00 millionShare of Capital: a)Local Shareholders b)Foreign Shareholders

40.42%59.58%

Equity Tk.17932.00 millionZones 10Branches 211

Deposits Tk.195720.00 million (As on 31st

December’08)

Investments Tk.208430.00 million (As on 31st

December’08)

Foreign Exchange Business: Tk.342440.00 million (As on 31st

December’08)Number of Shareholders 31130Manpower 9260IPO 1985Listed in Dhaka Stock Exchange 19851st Rights Share issue 19892nd Rights Share issue 19963rd Rights Share issue 20004thRights Share issue 2003Opening of 50th Branch 26th November 1991 Opening of 100th Branch 12th June 1997Opening of 150th Branch 30th November 2004Joining/Agreement with CDBL 29th December 2004IDB President visit 31st August 2007IBBL Mudaraba Perpetual Bond issue 25th November 2007

Inauguration of Broker House 1st January 2008(Source: - Annual Report 2008)


N.B- Annual Report 2009 has not published in internship duration.

2.2.8 Membership of Different Organization/Chamber

Local:

Bangladesh Institution of Bank Management (BIBM)

The Institution of Bankers Bangladesh (IBB)

Bangladesh Association of Banks (BAB)

Bangladesh Foreign Exchange Dealers' Association (BAFEDA)

Central Shariah Board for Islamic Banks of Bangladesh

International Chamber of Commerce- Bangladesh

Foreign:

International Association of Islamic Banks (IAIB), Jeddah, K.S.A.

Accounting and Auditing Organizations for Islamic Financial Institutions

(AAOIFI), Manama, Bahrain.

General Council of Islamic Banks & Financial Institutions (GCIBFI),

Manama, Bahrain (IBBL is a member of its Executive Council)

Society for Worldwide Inter-bank Financial Telecommunication (SWIFT).

2.3 SWOT Analysis of IBBL

SWOT Analysis:

SWOT Analysis is an important tool for evaluating the company’s Strengths, Weaknesses,

Opportunities and Threats. It helps the organization to identify how to evaluate its

performance and scan the macro environment, which in turn would help the organization

to navigate in the turbulent ocean of competition. The SOWT analyses of IBBL are

presented below:

2.4 Strength:

Adequate Finance: Islami Bank Bangladesh Ltd. has adequate finance. That is why

they need not to borrow money from Bangladesh Bank or any other banks.

More funds for Investment: For adequate financial ability they can provide loan to

the more investment clients.

-------------------------------------------------------------------------------------------------------- 10 | P a g e AN OVERVIEW ON FOREIGN EXCHANGE OPERATION OF IBBL

Honest and Reliable Employees: All of the employees of Islami Bank are honest

and reliable. They are always devoted themselves to the works for better customer

service. They have no corruption report.

It has vast years of experience since its establishment.

IBBL is only the Bank which is the pioneer of welfare banking system among all

other financial and banking organization.

At IBBL, the top management is the driving force and the think tank of the

organization where policies are crafted and often cascaded down.

IBBL provides its customer excellent and consistent quality in every service.

IBBL is a financially sound company.

IBBL utilizes state-of-the art technology to ensure consistent quality and operation.

IBBL provides its works force an excellent place to work.

IBBL has already achieved a good will among the clients.

IBBL has a research division.

2.5 Weakness

IBBL lacks well-trained human resource in some area.

IBBL lacks aggressive advertising

The procedure of credit facility is to long compare to other banks.

Employees are not motivated in some areas.

Absence of structured marketing and credit policy

Lack of coordination among the branches and Head Office.

2.6 Opportunities:

Emergence of E-banking will open more scope for IBBL.

IBBL can introduce more innovative and modern customer service.

Many branches can be open in remote location.

IBBL can recruit experienced, efficient and knowledgeable work force as it offers

good working environment.

The successful launching and needs to an Islamic Money Market in the country.

2.7 Threats:

The worldwide trend of mergers and acquisition in financial institutions is causing

problem.


Frequent taka devaluation and foreign exchange rate fluctuation is causing

problem.

Lots of new banks are coming in the scenario with new service.

Local competitors can capture huge market share by offering similar products.

Lack of skill personnel because of poor salary structure rather than other private

banks.

Unknown attitudes of the people about the Islamic Banking.


CCHAPTERHAPTER- THREE- THREE

INTERNSHIP POSITION AND DUTIES


Islami Bank Bangladesh Limited.

3.1 First day at office:

I have started my internship program at Islami Bank Bangladesh Limited, New market

Branch from 31st January 2010. First day I reached office at 9.30 am. At first I met with

the branch manager Md. Jalaluddin (VP) with my conformation letter and he introduces

me with the entire officer in the branch. After introducing he placed me into Foreign

Exchange department in where all activities including L/C opening, Remittance etc. are

done. At first day I worked till 6.00 PM.

3.2 Working hours:

I worked there as like a permanent employee. Everyone is supposed to be in the office

within 10 AM. I have to maintain the time line. Though there is a sign out time but most

of the employee worked in office till 6.00 PM.

3.3 Working environment:

Our branch located in front of Dhaka College it is a so busy environment in our branch.

The work environment of the branch is so nice and fruitful. There are 60 employees in the

branch. All are so coorporative and helpful. I had more opportunity to learn about the

banking activities in this branch.

3.4 Job rotation:

Our total duration was divided into total working days that came to a total working days of

2 months. By the rotationally I worked every sector in the branch. And the times were

distributed in the following manner:

Departments Duration

IBTRA Training session 17th January to 30th January 2010.

Foreign Exchange 31st January to 28th February 2010.

L/C Opening (Export & Import) 31st January to 13th February 2010

Remittance 14th February to 28th February 2010.

General Banking 1st March to 7th March 2010

Investment 8th March to 16th March 2010.


3.5 Working activities during my internship period:

The Following activities were done by me during my internship period.

3.5.1 Foreign exchange department:

My main focus was the foreign exchange department. In this part I was looking after the

foreign exchange related work. Always I tried to keep me busy with Mr. Ahmad Ulla

Officer of Foreign Exchange Department and tried to look carefully what is doing and

how. Basically I followed the dealings related to the points below:

Letter of Credit

Formalities,

Handling of Export Document,

Passing of different entries,

Posting of vouchers.

3.5.2 Account opening:

At the bank, account opening is the first and important for the bank authorities and client.

Most of the customers who come first time to open an account are not aware about the

procedures; in that cases I helped them to open the account smoothly. In this section I was

careful about the following

Mode of operation of different types of accounts,

KYC and their formalities for opening.

3.5.3 Cheque book issue:

I also work in cheque book issue in front desk. After receiving the requisition we cheek

the signature and issue cheque book. For 10 leaves book charge 10 taka, 20 leave 20 taka,

50 leaves 50 taka. But in most recent the branch provides micro cheque which is providing

by the main branch according the rules of Bangladesh bank. Now for the every leave the

bank charges 2.5 tk.

3.5.4 Demand draft issue:

By the DD any person can send money from one branch to another branch of IBBL. To

send the money he/she must fill up the IBBL prescribed form of DD and Paid


charge/commission receive DD block. All the information of DD is describe in the DD

form.

3.5.5 Inward and outward cheque clearing:

After seven days I am working in clearing section. Here I deal with two types of clearing,

Inward and outward clearing. The cheques of Islami Bank Bangladesh Ltd New Market

Branch which are deposit in other bank, those cheques are come in our branch for

collection. We posted that cheque and debit client’s account. I also return some cheque

because of insufficient fund, wrong entry, signature differ and other reason.

In outward clearing we received others bank, then we posted that cheque in the Software

which is provided by Bangladesh Bank. After that we send the soft copy of posted cheque

in Bangladesh Bank for clearing

3.5.6 Check the balance and provide bank statement

Sometimes many customers came to know their balance in their account. I provide their

balance information to use the Software. I also provide the monthly or six monthly basis

bank statements to the client by using the software.

3.6 Learning Points:

Two months internship is the partial fulfillment of the course and a field of achieving

some practical experience and combines that with academic knowledge. Accordingly I

have joined in Islami Bank Bangladesh Limited at New Market Branch. To say honesty it

is a nice and dynamic Bank in current business world. The bank has commendable

contribution to enrich my knowledge and experiences. At the time of working in the

practical world I have found huge discrepancies between my academic knowledge and

practical situation. During the internship period I have actively attempted to attain some

new aspects. But sometimes it was difficult enough to perform in an appropriate manner

due to lack of required assistance of the organization authority. During two months

internship period I have learned lots of things. Few of them are listed below:

How to open an account.

Issuing check book to account holders.

Requirements to become an account holder.

How to deposit the money into the bank.

Considerable factors to invest money in potential sector.


Requirement for investment.

Buying and selling process of foreign currencies.

How to opening LC, Back to back LC.

How to sue against detaulter.

Issuance of Credit card, promissory notes.

How to close an account.

How to maintain office time i.e. 10 am to 5 pm.

How to behave with the customers.

What are the basic reasons to dishonor a cheque.

Why the Cheque are sometimes crossed.

Working the two months as intern in IBBL enriched my knowledge and added some

technical quality in my experience; though I have learned lots of things, the bank could not

met what I have expected.


CCHAPTERHAPTER- FOUR- FOUR

FOREIGN EXCHANGE OPERATION OF IBBL


Islami Bank Bangladesh Limited. 4.1 Foreign Exchange Department:

Foreign Exchange Business of IBBL witnessed unprecedented challenge in the year 2008.

The challenge was particularly felt in import business in spite of starting the year with

good promise and high growth. Import business maintained more than 100% growth up to

June 2008 mainly due to high import of food grains, fertilizers etc. and price hike in some

cases up to 4 (four) times in the international market. This high volume of import business

resulted in creation of higher volume of investment in the form of special limits in favor of

different clients.

As a result, the import business growth took declining path from 94% in July to 23% in

December 2008 over the corresponding period. Export, Remittance and Treasury business

however maintained a steady growth except in the last 2 (two) months were month to

month growth fall considerably. This was due to the financial turmoil in the USA & EU.

They have however achieved the targets in those areas quite comfortably.

In this paper, I shall look back at the ups and down in foreign exchange business (import,

export, remittance & FEX dealing) of the bank in 2008, project the prospects of the

business in the coming year and suggest specific agenda in order to overcome the hurdles

and maintain a steady growth of the business in the New Year.

4.2 Meaning of Foreign Exchange:

Foreign Exchange means currency & trade exchange say conversion of one to another.

This is a part of economic & Science. This is a big deal divided into different currencies

instrument such as Draft, Traveler Cheque, bill of exchange business including sell,

purchasing of currency notes & TC etc. Currency Exchange means the conversion of one

Currency into another currency.

4.3 Foreign Exchange Market

Foreign Exchange market means the places where foreign currency is bought & sold. In

this more that supply, currency value. Alternately following are the features of foreign

exchange market:

Bank & client.

Different Banks in the same foreign exchange market.

Different Bank & Schedule Bank of the same country.


Different Control Bank.

4.4 Overall Process of Foreign Exchange Business:

Like all modern banks, IBBL also operates in the area of the foreign exchange business. In

this perspective, IBBL performs the following tasks:

Opening letter of credit (L/C) against commission for importing industrial,

agricultural and other permissible items under Islamic Shariah and Import policy.

Opening letter of credit on the principle of Mudaraba sale, on the principle of

Musharaka sale and under wage earner scheme.

Handling of export / import document.

Negotiation of export / import document when discrepancy occurs.

Financing in import under MPI (Mudaraba Post Import).

Financing to export on profit or loss sharing.

Handling Inward and Outward remittance.

IBBL is playing a very important role in the foreign Exchange business of the country.

The foreign trade handle by the bank may be classified as under:

1. Import Business

2. Export Business

3. Foreign Remittance.

Letter of Credit & its Classification:

The first thing that is required to run foreign exchange business is letter of credit. A letter

of Credit is a conditional undertaking of payment by the issuing bank to the beneficiary.

As per UCPDC, there are two types of L/Cs:

Revocable

Irrevocable

Parties to an L/C.:

Issuing Bank/Importer’s Bank/Applicant’s Bank.

Supplier/Beneficiary/Exporter.

Confirming Bank (if any)

Documents required for opening L/C:

Branch will supply the following paper/documents to the client before opening of the L/C:

L/C application form


LCA Form

IMP Form

Agreements (as applicable)

Charge documents etc.

The above papers must be completed and filled in and signed by the party and verified by

the branch.

Application for L/C;

At first the interested parties apply for opening L/C along with the required papers and

documents.

Sanctioning L/C:

Upon receipt of the application, dealing officer will initiate office note covering the

following:

Whether the client has valid limit.

Whether the proposal is within the limit or within the power of Branch incumbent.

The item to be imported is permissible.

Whether Credit Report of the supplier obtained as per instructions of the

Guidelines.

Market Report of the goods.

Competitive price of the goods

The indent bears the Indent Registration Certificate (IRC) number & Bangladesh

Bank permission of the Indenter.

The indent bears the signature of Agent & Importer.

On being satisfied, Branch will issue a letter of credit on behalf of the importer and send

the same to the beneficiary through any of our Correspondent banks.

Obtaining credit report of the Supplier/ Beneficiary:

The AD should obtain confidential report of the Suppliers/Beneficiaries from their

branches or correspondents abroad or in their discretion satisfy them-selves as to the


standing, means by consulting standard books of reference issued by International Credit

Agencies.

Advising & Disposal of L/C copies:

L/Cs should normally be typed in Bank’s printed format in manifolds The Original L/C is

to be sent to the advising Bank for beneficiary & 2nd copy to the above bank at the same

time for their own purpose, 3rd copy for importer, 4th copy for reimbursing bank 5th & 6th

copy for office copy of the bank, 7th copy for IBW.,8th copy for CCI & E & 9th copy for

Bangladesh Bank.

Cash security for L/C:

Cash Security is to be obtained before opening of the L/C from the client as per sanction

of the L/C or as per requirement of Bangladesh Bank & that should be posted under the

heading Sundry deposit (Security L/C Cash) & recorded in the Security Deposit Register

party wise as well as L/C wise.

Realization of Bank charges:AD will realize commission & Bank charges at the time of Opening L/C as per Head

Office circular.

Maintenance of L/C Opening Register:

Particulars of the L/C to be recorded in the L/C opening register (B-56) putting L/C

numbers chronologically.

Amendment of L/C:

After opening of L/C amendments may be effected only if all the parties concerned are

agreeable i.e. the beneficiary, the importer, the issuing bank. For any amendment, the

importer must request the opening bank in writing duly supported by revised indent/pro-

forma invoice etc. where necessary.

4.5 Snap Shot of Overall Performance of Foreign Exchange Business of IBBL


The two decades of foreign exchange business of the bank has been a success story. By

now, Islami Bank has established itself as one of the leading banks of the country in

foreign exchange business. As the bank continues to cover different milestones in its

success journey, total foreign exchange business of the bank stood at TAKA

599,370.55million at the end of 2007, with a share of 50.47% in Import, 24.49% in export

and 25.02% in remittance maintaining a good balance between inflow and outflow of

foreign currency for the country. The bank made 2nd highest contribution in the countries

import and remittance with 10% and 20% share respectively while in export the bank’s

contribution was the highest among the Private Commercial Banks (PCB) with a share of

around 10%. The bank has been playing a vital role in industrialization of the country and

earning valuable foreign exchange for the country from export and remittance services.

The table below shows the picture of foreign exchange business of the bank in the last 25

years with growth trend-

Table: Foreign Exchange Business of IBBL: Fig. in Million Taka

Year Import Export Remittance Total F. Ex

Business

Growth Rate

1983 10.80 - - 10.80 -

1984 861.60 63.70 443.80 1369.10 -1985 979.42 265.00 492.38 1736.80 27%1986 1800.61 622.42 1172.71 3595.74 107%1987 1578.45 971.15 1424.64 3974.24 11%1988 2015.30 1349.70 1125.40 4490.40 13%1989 3394.90 1543.80 901.60 5840.30 30%1990 3917.70 2588.30 1339.90 7845.90 34%1991 6204.27 3966.58 1814.13 11984.98 53%1992 8778.51 4948.81 2028.59 15755.91 31%1993 8612.70 5841.64 2402.51 16856.85 7%1994 14623.43 7790.42 2943.00 25356.85 50%1995 21218.38 11015.75 2447.21 34681.34 37%1996 17874.80 11766.40 3328.30 32969.50 -5%1997 17370.00 14469.40 4806.00 36645.40 11%1998 20238.30 14894.30 6360.60 41493.20 13%1999 20396.00 14798.00 8415.00 43609.00 5%2000 25327.00 16889.00 7644.00 49860.00 14%2001 25,907.00 16,082.00 9,879.00 51,868.00 4%.2002 33,788.00 16,673.00 14,670.00 65,131.00 26%2003 46,237.00 21,738.00 16,668.00 84.643.00 30%2004 59,804.00 29,151.00 23,669.00 112,624.00 33%2005 74,525.00 36,169.00 36,948.00 147,642.00 31%2006 96,870.00 51,133.00 53,819.00 201,822.00 37%


2007 1,37,086.00 66,690.00 84,123.00 2,87,899.00 43%2008 1,68,329.00 93,500.00 1,40,420.00 3,95,193.00 27%

4.6 Performance of Foreign Exchange Business in 2008

2008 has been a very challenging year for IBBL in respect of foreign exchange business.

Although we made a good start in the beginning of the year and made good progress up to

the 1st half of the year, we had to curtail the growth due to the compelling situation of

bringing down the investments in line with the capital position of the bank. The financial

crisis in the USA & Europe also played its role. Export & Remittance business were

unaffected throughout the year except in the last 2 months. Our Summarized performance

in F.EX Business is shown as under:

(Million Tk.)

Achievement 2008 Business plan 2009

Business Target Achievemen

t

% of

achievement

Growth Target

Amount % of

growth

Import 199,000 168,329 85% 23% 244100 45%

Export 93,500 93,920 100% 41% 131500 40%

Remittance 126,500 140,420 111% 67% 211000 50%

In 2008 our market share stood at 10.25%, 9.56% & 23.07% in import, export &

remittance respectively while in 2007 it was 10.83%, 7.82% & 18.59%. The success is due

to the relentless efforts of the branch managers and their teams.

4.4.1 IMPORT BUSINESS

Import business involves transactions in foreign exchange. By foreign exchange we

generally mean foreign currency like US Dollar notes, Great Britain Pound etc. Bank notes

or what we commonly call foreign currency notes however, do not play any significant

role in settlement of international transactions. The term foreign exchange is used in

broader sense as a process of conversion of one currency into another. Foreign Exchange

and Foreign Trade is a part of economic science; it deals with the means and method by


which rights to wealth in one country's currency are converted into those of another

country.

As our Bank is an Islami Bank, we have to abide by the principles of Islamic Shariah. Our

branches have to follow the internal circulars of the bank in respect of import business and

this guidebook. All of our AD Branches are instructed to follow this guide book at the

time of foreign exchange dealings. Any subsequent amendment, modification, addition of

foreign exchange circulars issued by Bangladesh Bank and our Head Office also to be

followed by the AD Branches.

4.4.2 Requirement for Import:

General Instructions on Import:

Unless otherwise specified, any Item, which does not appear either in negative

or in restricted list of Import Policy Order (IPO), shall be freely importable.

Unless otherwise specified, Item(s) included in negative list cannot be imported.

Any Item included in restricted list shall be importable only on fulfillment of the

conditions specified by the competent authority (CCI&E) against the item.

Goods from countries banned by IPO or goods originating from those countries

shall not be importable. Goods shall not also be importable in the flag vessels of

those countries.

Pre-shipment inspection (CRF) is mandatory for import of any item other than

export oriented & Tax free items.

4.4.3 Registration of Importers & procurement of Import Registration Certificate

(IRC):

In terms of the Importers, Exporters, and Indenters’ (Registration) order- 1981, no person

can import goods into Bangladesh unless he is registered with the CCI&E or otherwise

exempted from the provision of the said order. Before any Letter of Credit (LC) is opened


or remittance made for imports into Bangladesh, AD branch should verify that the

importer is registered with the CCI&E or otherwise exempted from such registration. The

AD branch should ensure that the registration number of the importer is invariably

furnished on the IMP form. Where the importer is exempted from such registration, a

suitable mention of this fact should be made on the IMP form.

The CCI&E authority receives applications from the persons or institutions that are

interested to become importer. These persons are given Import Registration Certificate

(IRC) if they fulfill the criteria & submit application to the CCI&E along with papers

required by the CCI&E as under:

Nationality Certificate.

Certificate from the Chamber of Commerce & Industry/Registered Trade

Association

Bank Solvency Certificate

Trade License

Income tax paid Certificate (TIN Number

Any other documents required by CCI&E.

4.4.4 Import Formalities & Procedures

Application for Import: -

A valid importer will submit the following paper/documents to his Bank to open

an L/C:

L/C Application form duly signed by the importer with adhesive Stamp (the stamp

value may increase or decrease as per policy of the Govt.).

Indent/pro forma Invoice.

Insurance Cover Note

LCAF duly filled in & Signed by the importer

Membership Certificate from Chamber of Commerce/Trade Association.

Tax payment declaration

Charge documents such as Musharaka/Murabaha/Bai-Muazzal Agreement

IMP & TM form (Travel & Miscellaneous Form).


IRC, Pass Book, Trade license, Membership Certificate from the Chamber of

Commerce or their recognized /affiliated body in case of new customers.

VAT registration Certificate

Export L/C in case of Back to Back L/C

Any other paper/document that may deem necessary.

LC Authorization Form

The ADs are authorized to issue 'Letter of Credit Authorization Forms' (LCAFs) in

conformity with the IPO allowing imports into Bangladesh. LCAFs or import permits or

clearance permits are not required for imports by the Ministries and government

departments. The LCAFs available with the ADs, are issued in sets of 5 copies each. Of

these, the one marked "For Exchange Control Purpose" should be used for opening LC

and for effecting remittances. The ADs should be very careful about compliance with the

instructions of the Import Policy Order (IPO) and relevant Public Notices in the issuance

of LCAFs.

Authentication/Registration of LCAF:

When the importer submits LCAF (Letter of Credit Authorization Form) with other papers

to the Bank to open L/C, Bank will authenticate the LCAF, confirming the following:

IRC, renewal fee paid.

Item to be imported is eligible as per import policy /pass Book.

LCAF is duly filled in and signed by the importer.

Bank will endorse the value with particulars and equivalent Taka on the back of exchange

control copy of LCAF

Endorsement on LCA FormsAt the time of opening of L/C against a LCA form, full particulars should be endorsed on

the back of the Exchange Control copy of the relative LCAF form under stamp and

signature of the authorized official of the branch. The amount of Taka equivalent of the


L/C amount should be shown after converting the F.C. amount into taka at the ruling rate

of exchange.

Validity of LCA for shipment

Unless otherwise specified shipment of goods shall be made within seventeen months in

the case of machinery and spare parts and nine months in the case of all other items from

the date of issuance of LCA Form by bank or registration of L.C Authorization Form with

Bangladesh Bank Registration unit as the case may be.

Lodgment of Imports Bills:

Upon receipt of import documents it must be checked with L/C carefully and if it is found

in order, entry to be made in the Bill Register & necessary voucher to be passed putting

Bill number on the documents. This process is called lodgment. Documents must be

lodged immediately after receipt of the same.

Scrutiny/ checking of Import Bills:Documents normally consist of –

Financial document i.e. bill of Exchange/Draft.

Commercial documents i.e. invoice, packing list, Inspection Certificate,

Certificate of Origin, Export License, etc.

Transport documents i.e. Bill of lading, Air Way bill, Truck receipt, Railway

receipt & Postal receipt and

Insurance documents, Insurance advice etc.

Other documents

Intimation to the Importer:

Upon receipt of the shipping documents, Importer is to be advised with full particulars of

the date of lodgment with request to retire the document.

Refusal of documents by nominated bank / confirming bank / issuing bank: It may refuse

to honor or negotiate. It is the sole judgment of the issuing bank approach the applicant for

waiver of the discrepancies (Article –16.b)

Discrepancy Notice:


When Nominated Bank/ Confirming Bank/ Issuing decides to refuse to honor or to

negotiate it must give a single notice to the presenter within 5 banking days following the

date of its receive..

Retirements of Import Bills:

Then they retire the import bill according to the rules and regulations of the bank.

Realization of Bank dues:At the time of retirement, Bank will realize all dues & charges from the client as per Head

Office circular.

Endorsement of Import Documents & Delivery of Shipping Documents:

After realizing all charges & dues from the client, Bank will endorse the documents

favoring C&F agent / client, & hand-over the shipping documents

Payment of Import Duties, VAT etc. (In case of MPI)

At the time of taking delivery of goods from the port, custom duties, VAT, Port Charges

etc. will be paid by the L/C opening Bank through C&F Agent. For releasing goods

through port branch, they will issue IBDA for required amount and after receiving the

IBDA, L/C issuing branch will respond the same by debiting importers/clients investment

Account. Prior instructions along with documents are to be sent to clearing (Port) Branch

Approved methods of payments:

Letter of Credit may be established providing for payment to the beneficiary

located either in the country of origin of goods or in the country of shipment of

goods.

Letter of Credit may also be established providing for payment to the beneficiary

in a third country, not being the country of origin of goods or the country of

shipment, provided the Authorized Dealers are satisfied that the payment to the

beneficiary in a third country does not involve any extra expenditure.

Letters of Credit established as per the three above should provide for payment in

any of the following manners:

In any freely convertible currency like U.S. Dollar, EURO, Pound

Sterling, Japanese Yen etc.


In local currency of the country of the beneficiary or in the currency

of the country of origin/shipment of goods, or

In TAKA for credit to the non-resident bank account of the country

of the beneficiary or of the country of origin/shipment of goods.

For imports from the countries who are members of Asian Clearing

Union (A.C.U) – in Asian Monitory Union (AMU), Bangladesh

TAKA or in the currency of the supplier.

It is also not permissible to establish L/C providing for alternate countries of origin

of goods unless prior approval of the Bangladesh Bank is obtained.

Payments for imports under various commodity exchange agreements will be

governed by the instructions issued by the Bangladesh Bank from time to time.

4.4.5 Import & Export Business under Islamic Framework

The banking system aiming to achieve the goal of Islamic economy through setting a well

designed Islamic Monitory system. Regarding use of money or exchange of currencies

Islam has its clear-cut instructions through some distinctive guidelines. Avoiding interest

(Riba), restricting exploitation & speculation etc. are the major guidelines in this exchange

process. So Islamic Banking system is doing banking business under Islamic guide lines.

So, what are the guidelines of Islam for Foreign Exchange Business or how Foreign

Exchange Business is done under Islamic banking system?

4.4.6 Financing Foreign Trade:

In modern banking Foreign Trade is taken into a shape where customers are provided with

various products and services, by the bank. They get financial assistance at all stages of

their Import & Export trade from bank. Almost all such facilities can be provided under

Islamic mode. The general principles in financing import and export business are

elimination and avoiding of interest in all operation. The different Islamic modes are as

under:

Source of Finance for Imports:

Cash –

a. Cash foreign exchange (balance of foreign exchange reserve

with Bangladesh Bank)


b. Foreign currency account maintained by Bangladeshi nationals

working / living abroad.

External source (Commodity Aid. Loan, Credit or Grant)

Commodity exchange - Barter and Special Trading Arrangement

(STA):

Commercial importers and industrial consumers may utilize their respective shares under

Barter / STA as notified.

Import under the Special Trading Arrangements (STA) which are or were conducted with

prior approval / permission of the Government shall be subject to the specific procedures

laid down by the government in this respect. The provision of this paragraph will remain

effective only up to the time of completion of on-going agreements.

4.4.7 Import Finance

Mainly three types of import are done purpose wise.

Import of trading item for ultimate user or consumer.

Import of Raw materials or industrial item for further processing or further

production

Import of Capital Machinery & Capital Item.

In all types of import usually the importer take bank finance. Under Islamic modes,

finance can also be made for the first two types under Bai-Murabaha & Bai-Muajjal mode

and for the 3rd type under Hire-Purchase under Shirkatul Melk (HPSM) mode. Import

finance can also make under Bai-Salam or Musharaka or Mudaraba modes.

Islami Banks have to perform its all transactions related to import & export by abiding the

National and International rules/regulations in addition to its own

rules/regulations/guidelines etc.

Bai-Murabaha means "Sale on agreed upon profit" and in case of import we can do the

same practice. As per the procedure Bank purchase goods from foreign supplier and sale

to the importer/client. As per international banking practice and as per UCPDC goods

consigned to the opening bank i.e. the owner of goods is bank till transfer the ownership

by endorsement on the back of Bill of Lacing (B/L) or other transport document. Also as

per UCPDC payment claim by the supplier of the goods to the L/C opening bank through

drawing bill of exchange on Bank.


As per Islamic Banking practice import finance under Bai-Murabaha is made under single

deal covering the investment at L/C stage, Bills stage, and post import stage as under:

Murabaha Import L/C

Murabaha Import Bills

Murabaha post Import

IMPORT UNDER BAI-MUAJJAL

It is a Contract between a Buyer and a Seller under which the seller sells certain specific

goods (permissible under Shariah and law of the land) to the buyer at an agreed fixed price

payable at a certain fixed future date in lump sum or within a fixed period by installment.

IMPORT UNDER HIRE PURCHASE UNDER SHIRKATUL MELK (HPSM)

For import of machinery and other durable and reusable item import is made under HPSM

mode. HPSM is a mechanism as combination of three systems namely- Izarah, Shirkat and

Bai-(Purchase and Sale) Bank and client import the item jointly sharing money as per

agreement i.e. Shirkat Bank gives lease of their portion at an agreed rent. Bank Sale their

portion of the property gradually by receiving periodical payment from the client.

IMPORT UNDER MUSHARAKA.

Musharaka is the mode of investment where the equity participation of both the bank and

client is essential. In this case unlike Bai-mechanism no sale price is fixed. The profit

earned is shared between the bank and the clients at agreed ratio. In case of any genuine

loss arises then it will also be shared between the bank and the client as per equity ratio.

IMPORT UNDER MUDARABA

When the capital user/entrepreneur has no capital and the capital holder has got no direct

participation in the business, then such type of business is calling Mudaraba.

In case of import bank may finance under Mudaraba mode paying full cost of imported

goods. In such case bank may supervise the utilization of Capital, its return and operation

process involved. Client is under obligation to maintain all documentation and record of

sale and purchase of goods. Profit will be shared as per agreed ratio, and loss will be beard

if genuine by the bank.


4.4.8 Import under Back to Back L/C:Back-to-Back L/C is a L/C backed by another L/C i.e. this type of import L/C is opened

against lien of Export L/C/Mother L/C/Master L/C.

Classification of BB L/C:

Foreign BB L/C.

Inland BB L/C.

Procedure of opening of BB L/C:

Documents to be obtained from the client-

Preparation of Credit report on the client:

Preparation of BB L/C proposal:

Numbering of L/C in the L/C opening Register

Transmission of L/C:

Disposal of L/C copies

Realization of Bank Charges

Lodgment of BB Bills

Conveying of Acceptance

Payment/ settlement of BB Bills.

Realization of Bank dues and charges.

Collection/ Submission of Bill of Entries & Matching thereof

4.10 A Comparative analysis of Import Business of IBBLIf we analyze the scenario of 2008 in which the import business was conducted, we

find the followings:

High growth up to June, 2008:

The target growth for 2008 in import business was 45%. With the high growth of

import in the first four month of 2008 (167%, 143%, 135%, 173%) from January to

April in individual months which continued up to July in aggregate figures too due

to high volume of imports of fertilizers, food items, industrial raw materials etc., it

was presumed that we would be able to achieve the target-growth quite

comfortably. The figures may be seen from Table: Import


Comparison of Import: month to month 2007 & 2008

Sep

Oct

Nov Dec

Sep

Oct N

ov Dec

Feb

07

Jan

07

Mar

07

Apr 0

7

May

07

Jun

07

Jul 0

7

Aug

07Feb

08

Jan

08

Mar

08

Apr 0

8

May

08

Jun

08

Jul 0

8

Aug

08

0

5000

10000

15000

20000

25000

Mill

ion

Tk.

2007 7235 7537 7811 8602 10112 9634 10760 12281 11206 17,475 16898 17535

2008 19305 18337 18371 23490 14511 13719 10574 10804 10543 7429 9410 10217

Growth in amount 12070 10800 10560 14888 4399 4085 -186 -1477 -663 -10046 -7488 -7318

Growth in % 167% 143% 135% 173% 44% 42% -2% -12% -6% -57% -44% -42%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Table: Import

4.5.1 EXPORT BUSSINESS:

Export Business occupies a very important position in the Balance of Trade and Balance

of payment of the country. Export occupies an important position in the foreign exchange

business portfolio of the bank. In handling export business, certain Acts, guidelines, &

regulations have to be followed such as the Export Trade Control Regulation Act,

Guidelines for Foreign Exchange Transactions published by Bangladesh Bank and Export

Policy issued by Ministry of Commerce from time to time. At the same time, as a Shariah

based Bank, our export business should comply with the provisions/ principles of Islamic

Shariah. If any of the provisions of this guidebook contradicts in any way the government

rule or accepted international banking practice in that case the government rule or the

international banking practice (ISBP) will reign on this book. Any subsequent not covered

in this book must also be followed. If any area of foreign exchange business is not covered

in this book in that case the prevailing rules of Bangladesh Bank and international norms

have to be followed.

Definition and Classification of Export:

By export we generally mean selling of visible and invisible goods and services outside

the country against letter of credit, firm contract or Advance payment. Besides, local

supplies against Letter of Credit /contract through banking channel are also deemed as


export. However the local export does not need to be reported to Bangladesh Bank in the

schedules.

Types of Export:

Export must be executed under the following payment/settlement system

Export against L/C or firm contract

Export against Advance payment

Export under consignment basis

4.5.2 Export stage (Procedure to be followed for handling foreign export business):

Certification of EXP Forms

In order to avoid any loss of foreign exchange of the country, branch shall not certify any

EXP form unless they have satisfied themselves with regard to the following:

Arrangements have been made for realization of export proceeds within the

prescribed period.

Arrangements have been made for receipt of title to goods like Bill of Lading,

Airway Bill etc. by the branch on shipment of the underlying goods.

The EXP Form has been signed either by the exporter or his authorized

representative.

Formalities for Negotiation (FBN)/Collection of Payment (FBC) after execution of

export by the exporter.

Submission of Export Document/Bill by the exporter

Export bill is a set of documents prepared by the exporter/beneficiary after execution of

export as per requirement of export L/C/Sale Contract for receiving payment. The exporter

will submit the documents to the nominated bank along with the Duplicate, Triplicate and

the Quadruplicate copies of the EXP forms. Export bill may consist of:

Financial document i.e. Bill of Exchange/Draft,

Commercial documents i.e. Invoice, packing list, Inspection Certificate,

Certificate of Origin, Export License, etc

Transport documents i.e. Bill of lading, Air way bill, Truck receipt


Railway receipt & Postal receipt and

Insurance documents.

Any other document stipulated in the Credit.

Scrutiny /Examination of documents

Checking of Amendment of the L/C:

The following points should be considered:

Whether amendment(s), if any, have been accepted or rejected by the concerned

parties:

The beneficiary or other parties may have to be contacted for the matter.

The same may also be determined by an examination of the documents.

Bill of exchange/ Draft:

The following points should be considered:

It is drawn under the correct letter of credit.

Appears to be drawn and signed by the beneficiary

If the documents are under a transfer, drawn by the second beneficiary.

Tenor is in accordance with the terms of the credit.

Is correctly endorsed, (if necessary).

Amount in words is exactly equal to amount in figures, and both amounts indicate

the currency, as stipulated in the letter of credit.

Drawee is as required in the letter of credit.

Amount does not exceed the balance of the letter of credit or the amount

permissible under the letter of credit.

Amount agrees with that of the invoice, unless otherwise stipulated in the credit.

Does not appear to have been altered, but if so, that alterations have been

authenticated.

Contains any clause required in the letter of credit.

Checking of other documents:


Other documents have to be checked as per International standard banking practice

outlined in the latest I.C.C Publication No. 500 on Uniform Customs & Practice for

Documentary Credits. In addition, the International Standard Banking Practice (ISBP) for

the examination of documents under Documentary Credits, ICC Publication No. 645

should also be followed.

Recording of L/C particulars:

Full particulars of the L/C to be entered in the L/C Advising Register B-78 allotting

separate serial number for each L/C in the Register. The same serial number has to be

noted on the top left-hand corner of the printed L/C advising form or on the original L/C

itself as the case may be.

If we are not requested by the Issuing bank to add our confirmation the L/C, we must not

add our confirmation. In such cases, the matter should be explicitly noted for the

beneficiary by incorporating the following clause in our advising letter and/or in the body

of the L/C advising format as the case may be: ‘Since we have not been requested by the

opening bank to confirm the L/C, this advice conveys no engagement or

responsibility on our part’.

Negotiation/Purchase of documents

As per Art No. 10 (b) ii of UCPDC-500, Negotiation means the giving of value for Draft

and/or documents by the bank authorized to negotiate. After scrutiny of documents, if it is

found in order, bank may negotiate the documents. And office note should be initiated

note for taking decision negotiation & disbursement of fund.

Negotiation under Reserve

Bank may negotiate documents under reserve if not prohibited in the L/c and ask for

waiving of discrepancies from the L/C opening Bank/Applicant.

Purchase against indemnity or Sending on collection:

If the documents are not in order (discrepant), bank may purchase the documents against

indemnity depending on the past performance of the client or send the documents on

collection basis

Sending of documents to the L/C opening bank for payment:

Preparation of forwarding schedule:


After negotiation /receipt of the documents, the documents are to be sent for payment or

on collection basis. For this purpose a forwarding schedule (F-127) as to be prepared.

Specific instruction regarding A/C Number and Bank name where payment to be remitted

by the paying bank has to be mentioned. Two authorized officers must sign on the

Forwarding Schedule.

Endorsement of documents

Documents should be endorsed; especially bill of Exchange (draft) and full set Bill of

Lading in favor of L/C opening Bank or as per instruction in the Credit.

Dispatch of documents:

After proper endorsement and forwarding schedule duly filled in, the export documents

are to be dispatched to the L.C. issuing Bank or as per instruction of the credit through

banks enlisted/nominated courier/express mail service.

Ledger/Register/File maintenance

Export bill wise entry should be made in the export bill register (B-93). The FBN voucher

to be posted in the FBN ledger (B-79 bill wise and party wise). The bill wise file should be

maintained properly for record and follow up.

Documentation:

Branch will obtain usual charge documents from the exporter. Specially the General

Indemnity from the client. Branch may also obtain specific indemnity from the exporter

against discrepancy (ies) in the export bill.

Disposal of Duplicate EXP form:

Bank will forward the duplicate of the EXP form to the nearest controlling office of

Bangladesh Bank within 14 days of shipment.

Follow up/correspondence:

After dispatch of the documents branch will make proper follow up and make necessary

correspondences to realize/repatriate the proceeds in time. Branch will take up the case

with the L/C opening Bank if the documents are in order. branch will take up the matter

with the exporter if the bill was purchased under indemnity and payment refused by the

L/C opening bank. Correspondence will continue till repatriation of the proceeds. As per

Bangladesh Bank Foreign Exchange Guidelines, proceeds should be repatriated within 120


days of export. If the proceeds are not repatriated within the prescribed period, AD should

report that to Bangladesh Bank.

Accounting for realization:

Upon receipt of confirmation from the correspondent’s Local Rep. Office or from our

Head Office of payment of bill amount by the paying bank in the NOSTRO A/C, the

following voucher/entries has to be passed for adjustment of the Investment A/C:

Dr. IB General A/c Head Office, IBW (by Mid rate)

Cr. Foreign Bills Purchased / Negotiated (FBP/FBN) A/c

Cr. Exchange A/c.

Cr. Investment Income A/c (FBP/FBN)

Issuance of PRC: (Proceeds Realization Certificate)

The exporter/client may apply for PRC (Proceeds Realization Certificate) in writing in

their letterhead pad stating detailed information such as – (i) Export L/C number, (ii)

Invoice value, (iii) Realized value, (iv) Date of realization. If satisfied on checking, PRC

may be issued.

Payment of local agent commission.

At the time of negotiation, the amount of commission payable to the buying house/ local

agent should be kept in the marginal deposit account (Under Reserve), at the rate

mentioned in the transfer letter/condition. After realization of exports proceeds, local agent

commission is to be paid against application of the exporter(s).

Where the proceeds are received after collection, the local agent commission is to be paid

directly by debiting IB General A/C as per transfer instructions mentioned on the reverse

of the export L/C and as per request of the exporter.

Disposal of Triplicate & Quadruplicate of EXP Form

The Triplicate copy of the EXP form should be reported to Bangladesh Bank after

realization of proceeds in the month following the month of realization through schedule

A-1/01. The quadruplicate should be kept as office copy for record


4.5.3 Export Finance

Export means flow of goods and services produced within Bangladesh but purchased by

economic agent (individuals, firms & government) of other countries. In other words in

case of exports products sold outside the country. So getting payment against such sale

usually require different time span depending on the terms of sale contract or relative

payment terms of export L/C.

In view of above exporter require immediate fund and other financial facilities to execute

their export order. It is the bank who extends such facilities as needed by the exporter.

And facilitating export by financing exporter at different stages is now important part of

bank’s activities.

Exporter requires financial assistance at two stages namely

1. Pre-shipment stage &

2. Post–shipment stage

So, export finance is classified into two categories

1. Pre-Shipment finance

2. Post-Shipment finance

Different Islamic modes are there for financing export at two different stages as mentioned

above.

4.5.4 Pre-Shipment Finance under Islamic Modes:

Bank facilities/ investments at pre-shipment stage:

At pre-shipment stage exporter may require funded or non-funded investment/facility and

may approach/propose for such investment. The exporter may also apply for post shipment

investment after execution of export. The non-funded facility includes Back-to-Back L/C

facility/guarantee for import /procurement of raw materials for production of finished

goods (outlined in Import chapter). The funded Investment is required to procure finished

goods, processing/production of finished goods and meeting other working capital needs.


The funded investment need of the client may be met applying a number of modes.

Murabaha or bai-Muajjal (export) may be applied in case of commercial items. In case of

industrial items especially for RMG sector, Bai-Salam Investment mode is to be applied

The non-funded facilities are to be rendered as per Guidelines of Bangladesh Bank. The

Funded Investments of Bai-Salam, Bai - Murabaha and Bai Muazzal are to be rendered as

per respective manual(s) of the Bank.

Pre-shipment finance as the name suggest, given to finance the activities of an exporter

prior to the actual shipment of goods for export. The purpose of such finance is to meet

Working Capital needs starting from the point of purchasing raw materials to

transportation of goods for export to foreign country. Pre-shipment finance is given for the

following purposes.

Finance for local procurement of goods.

Procuring and processing of goods

Packing & transportation of goods

Payment of Insurance premium

Payment of utility bill

Payment of wages and salary

Freight charge.

Pre-shipment finance can be made under Islamic mode as follows.

Post Shipment Finance

Post shipment finance is made by the bank after shipment of the good by the exporter.

Exporter made/arranged all document as per the requirement of the L/C terms or as per


contract terms, then submit to their bank (IBBL in case of our exporter client). Upon

submission of the documents bank provide finance under the following modes:

Bai-as-sarf

Bank purchase the foreign currency value of the documents under Bai-As-Sarf: Foreign

Documentary Bill (FDB).

Bai-As-Sarf is a trading mechanism where the bank buy foreign currency from the client

at an agreed rate. In case of Bai-As-Sarf: FDB bank purchase the value of the export

documents expressed in Foreign Currency and paid equivalent taka in favor of the client.

The client will get net amount after adjustment of their respective liabilities, if any. After

realization of documents value from the issuing bank/importers bank abroad the FDB

liability will be adjusted and bank will earn exchange income from it.

Musharaka Documentary Bills (MDB) Inland:

In order to avoid the risk associated with the Foreign Currency Positions against purchase

of Inland Export Bills and at the same time to meet the finance need of the valued clients,

Islami Bank Bangladesh Ltd. introduced Musharaka mode of finance in place of Inland

Bills Purchased (IBP) as Post shipment finance. The new investment mode will be titled

“Musharaka Documentary Bills (MDB) inland”.

Apprehension of fall of export orders:

It was apprehended that orders will fall due to the financial crisis and closure of different

chain stores in USA & Europe which take the major share of exports from Bangladesh. It

is of course a bit early to comment conclusively in that way as the figures are yet to arrive.

On the other side, it is reported that due to high production cost in China, a good portion

of the low end orders are coming to Bangladesh which will compensate the fall of orders

in other RMG items.

Much will depend on success of the bailout efforts & the economic recovery plan that is

being taken in the USA and European Union. And also on the ability of the Bangladesh’s

export to attract low end orders at a comparatively low cost that china and other competing

country.

All these things combined, it cannot be said that everything would be positive in the

coming year. I propose as under:


Dealing with Discrepant documents

Discrepancies:

Any deviations or lapses of the documents with the L/C terms, the applicable provisions of

these rules and international banking practice to be treated as discrepancy

Scrutiny of Shipping Documents, handling of discrepant documents both Import &

Export related.

As per Article 5 of UCP-600 Banks deal with documents and not with goods, services or

performance to which the documents may relate.

Documents as per UCP

Commercial Invoice

Transport Document (B/L, AWB, TR & RR etc.)

Insurance documents

Bill of exchange (if L/C available by Acceptance).

Other Documents (As per requirement of the Credit)

Other Documents

These are the other documents:

Certificate of origin

Packing List

Inspection certificate

Shipping Advice

Carrier Certificate

Radio Activity measurement Certificate.

Pythosanitary Certificate

Fumigation Certificate

Weight Certificate/list

Beneficiary Certificate

Analysis Certificate and others

Complying presentation

As per UCP documents may be treated complying presentation if document fulfill the

following:

In accordance with the terms and conditions of the credit.


The applicable provisions of the UCP

International standard banking practice (ISBP-681)

Must not conflict with other documents or credit

Examination of Documents:

Bank has to examine / scrutinize the documents with reasonable care whether the

documents complied with the terms and conditions of the related L/C and international

standard banking practice as well as UCP.

Banks should examine a presentation on the basis of the documents alone to determine

whether or not the documents appear on their face to constitute a complying presentation,

as outlined in Article 14 (a) of UCP600.

Examination of draft

Examination of Invoice

Insurance:

Examination of B/L, AWB, TR, Rail Way Receipt & Post parcel receipt

Certificate of origin:

It should be signed, dated and properly titled.

It should be issued by the competent authority as called by the terms of

credit.

It certifies the country of origin and must indicate that the origin of the

goods is from the country as called by the L/C.

Description of merchandise in the certificate should be the same as that given in the

invoice.

Packing List:

Weight certificate / list

Inspection certificate

It is properly titled, signed and dated.

Examination of other documents:

Moreover, there weight list, inspection certificate, certificate of measurement, quality

certificate, chemical analysis etc. Which are often required as per contract. Each of these


documents should describe the goods invoiced as per L/C terms. These must be signed and

authenticated by the appropriate authority.

These certificates are usually dated before date of shipment.

Common discrepancies found in shipping documents

General:

a. Late shipment effected

b. Late presentation of documents

c. Early shipment i.e. shipment made prior to issuance of L/C or time

stipulated in L/C

d. L/C expired

e. L/C overdrawn

f. Partial shipment or transshipment effected in contrary to L/C terms.

Bill of exchange

Invoice

Packing list

Bill of lading:

Others:

i. Non-negotiable documents not forwarded as per L/C terms.

ii. Inadequate number of invoice, packing list, B/L etc. submitted.

iii. Short shipment certificate not submitted

iv. Certificate of origin differs with L/C terms.

v. Shipping Company Certificate regarding ownership of vessel not

issued

vi. LCA Form, IRC, HS Code and Export L/C number are not

mentioned in all documents as per L/C terms.

Realization formalities of export proceeds of bills with discrepancies

Discrepant export documents may be sent to the L/C opening bank on collection basis for

realization of export proceeds thereof


Discrepant export documents may be settled upon negotiation of he seller and

buyer

Discrepant export documents may be settled on discount upon negotiation between

the exporter and importer with prior permission of Bangladesh Bank

Searching of prospective new buyers at the importers country abroad for

selling out the consignment if the issuing bank refuse to accept discrepancies and

so refused by the importer.

At last if other wise any dispute arise such cases of dispute s shall have to be

settled upon appointing a solicitor in terms of UCP-600.

4.5.4 A Comparative analysis of Export Business of IBBL

If we analyze the scenario of 2008 in which the export business was conducted, we find

the followings:

Steady Growth: Export business achieved 101% of the target and maintained a steady growth all over the

year i.e. more than 41% up to December 2008 as against target growth of 40%.

Table : Export-1


Comparison of Export: at the end of each month cumulative of 2007 & 2008

07 07 07 07 07 07 07 07 07 07 07

0808

08 08

0808 08

0808

07

0808

080

20000

40000

60000

80000

100000

Mill

ion

Tk.

2007 4526 10149 15803 20665 25717 31031 36531 42017 47313 52828 59701 66690

2008 7730 14924 23372 31293 38339 46561 55582 63721 72477 78524 86,494 93,920

Growth in amount 3204 4775 7569 10628 12622 15530 19051 21704 25164 25696 26793 27230

Growth in % 71% 47% 48% 51% 49% 50% 52% 52% 53% 49% 45% 41%

Jan up to Feb

up to Mar

up to Apr

up to May

up to Jun

up to Jul

up to Aug

up to Sep

up to Oct

up to Nov

up to Dec

4.6.1 FOREIGN REMITTANCE

Foreign Remittance, mainly Wage Earners’ Remittance by Bangladeshi Expatriates plays

a vital role on overall economy of the country particularly on the Foreign Exchange

Reserve position. Foreign remittance also has its impact on the Balance of Trade and

Balance of Payment of the country.

Money coming in and going out in between countries may be regarded as Remittance.

Foreign Remittance: Remittances coming in and going out in between foreign countries

are called Foreign Remittance’’.

In other words ‘Remittance’ means sending/ transferring of fund through a Bank from one

place to another, which may be within the country or between two countries.

Types-of Remittance:

a) Inward Remittance

b) Outward Remittance

Both may be visible or invisible

4.6.2 Inward Remittance

Money or remittance coming in is called Inward Remittance

Various purposes of remittance

a) Family maintenance

b) Indenting commission

c) Donation

d) Gift

e) Foreign Investment

f) Export proceeds, etc.


Mode of Remittancei. T.T. = Telegraphic Transferii. D.D = Demand Draftiii. M.T. = Mail Transferiv. T.C. = Travelers’ ChequeV. P.O. = Payment Order.vi. Cheques.vii. Notes and Coins.

4.6.3 Maintenance of Inward remittance registers (FBC/FCDP/TT)

On receipt of the remittance or any instrument, entry to be made in Inward remittance

register mentioning serial no, date, name of beneficiary, issuing Bank, Name of Drawee,

Amount etc.

Procedure for payment of Inward remittance

To make payment, the following points are to be observed:

For Demand Draft:

D.D. must be original.

Name of Bank, Name of branch, date, Name and A/c number of the payee/

beneficiary, amount in word and figure must be mentioned.

The D.D. must be as per prescribed format or specimen copy supplied

earlier (if any) by the correspondent.

The amount is perforated.

Payment is not stopped.

Draft is not reported lost

Verification of drawers signature

Confirmation (Telex) from the issuing Bank, if the amount exceeds the

limit as per agreement made earlier

Indemnity Bond to be taken for FCDP.

Telegraphic Transfer:

The Message must be in original.

It must be authenticated under test or SWIFT message with MAC trailer.

Credit confirmation to be taken from IBW, HO.


T.T. must contain the name of bank, Name of branch, Name and A/c number of the

beneficiary. If the above point are in order payment may be made to the

beneficiary as soon as possible. In case of Express Remittance Scheme with Al-

Rajhi Banking and Investment Corporation, K.S.A., Local Office is to ensure the

payment within the following time frame as per Head Office, ID Circular No.6

dated 22.5.95.

i. Capital Area – 24 hours ii. Major cities –48 hours

iii. Other town –72 hours iv. Remote Areas-120 hours

4.6.4 Outward Remittance

Money or Remittance going out is called outward remittance. Outward remittance may be

made by TT, DD, MT, and TC etc. payment of import bills are also treated as outward

remittance Purpose of outward remittance

Travel/Tour/Visit.

Education.

Seminar/Workshop.

Fees

Family maintenance.

Remittance by Foreign shipping lines, Airlines, Courier services.

Dividend/gain of foreign company.

Hajj.

Salaries and savings by expatriates.

Import Payments.

Expenses of Offices opened abroad.

Remittance of Royalty and technical fees.

Operating expenses of Bangladesh shipping Corp. & Bangladesh

Biman.

Remittances against export claims.

Subscription to foreign media services.

Advertisement.

Bank charges. Etc

Travel

a) For Private Travel:


Private Travel quota entitlement of Bangladesh is nationals Total USD.3000 per Calendar

year for visit to countries other than SAARC (i.e. India, Pakistan, Sri-Lanka, Nepal,

Bhutan, Maldives and Myanmar).Quota for SAARC countries and Myanmar is USD.1000

per calendar year for Travel by Air and USD. 500 for travel by land. At a time Bank can

issue full amount of above quota if required. Cash dollar may be issued maximum USD.

600 per passport per travel. (This quota may be changed by Bangladesh Bank)

The amounts of travel quota mentioned above are prescribed for adults only. The minors

(i.e. below 12 years) are eligible for 50% of the annual ceilings of adults. Bonafied

requirements beyond these limits may also be allowed with the permission of Bangladesh

Bank.

b) Business Travel: (For Importers & Manufacturers):

Subject to an annual upper limit of USD. 5000, Importers are entitled to business travel

quotas @ 1% of their imports settled during the previous financial year.

Subject to an annual upper limit of USD. 5000, non exporting producers are entitled to

business travel quotas @1% of their turnover of the proceeding financial year as

declared in their tax returns.

c) For Exporters:

New Exporter: New exporters are entitled to a quota for USD. 6000 against

recommendation letter from EPB annually.

Old exporter's can use FCAD EXP retention quota A/c as per their requirement.

d) For foreign nationals:

The ADs may issue foreign currency TCs to foreigners without any limit and foreign

currency notes up to USD 300 or equivalent per person against surrendered of

equivalent amounts in Foreign Currencies.

Education:

Foreign Exchange may be remitted for studies abroad by Bangladesh Nationals in all

regular courses (Subject to being consistent with the Education policy of the Bank Govt.)

in recognized institutions. Authorized dealer branches have to open file for individual

student.


Quota for medical Treatment:

Foreign currency up to US$10000/- or equivalent may be released by the AD on the basis

of the recommendation of the medical Board set up by the Health Directorate and the cost

estimate of the foreign medical institution. Application for release of exchange exceeding

US$.10,000/- should be forwarded along with supporting documents to Bangladesh Bank

for Prior approval.

Releasing foreign exchange as Fees:

The ADs may release foreign exchange towards remittance of membership fees of foreign

professional and scientific institutions and fees for application, registration, admission,

examination (TOEFL, SAT etc.) in connection with admission into foreign educational

institutions on the basis of written application supported by demand notice / letter from the

concerned foreign institution showing the amount to be remitted.

Family maintenance Quota:

Outward remittance may be made by Bangladesh Nationals-to family members /

dependent parents, spouses and children living abroad with the permission from

Bangladesh Bank. A certificate issued by relevant Bangladesh embassy regarding the

beneficiary, extent of Income abroad along with the embassies recommendation as

required for this purposes.

Foreign nationals who are resident in Bangladesh and who have income in Bangladesh are

permitted to make monthly remittances to the country of their domicile out of their current

savings up to 50% of their income to cover their commitments abroad.

Foreign shipping lines / Air lines/Courier services Company:


These companies may remit their income after adjustment of the amount spent for local

disbursement and tax payable. Details as per Guidelines for Foreign Exchange

Transactions.

Dividend/ gain of Foreign companies / Share holders:

Dividend / profits / gains may be remitted abroad to the owner / share holders without

prior approval of Bangladesh Bank. Details as per Guidelines for Foreign Exchange

Transactions.

Hajj:

The Government of Bangladesh announces each year the scale/limit at which foreign

exchange may be issued to intending pilgrims for performing Hajj. Release of foreign

exchange for this purpose should be made as per instructions to be issued for this purpose

by Bangladesh Bank each year.

Remittance of salaries and savings by the expatriates:

Expatriates working in Bangladesh with the approval of the Government may remit

through an Authorized Dealer (AD) 50% of salary and 100% of leave salary as actual

savings and admissible pension benefits. No prior Bangladesh Bank approval is necessary

for such remittances.

Expenses of Offices opened abroad

Remittance of up to US$. 30,000/- or equivalent may be made annually to meet current

expenses of such offices opened abroad by a Commercial or industrial concern. Such

remittance may only be made in the names of concerned offices / Subsidiary companies

abroad.

Remittance of royalty and technical fees:


No prior permission of the Bangladesh Bank or BOI is required by the enterprises for

entering into agreement involving remittance of royalty, the technical know how or

technical assistance fees. Operational services fees, marketing commission etc. if the total

fees and other expenses connected with technology transfer do not exceed the following

limits:

For new projects, not exceeding 6% of the cost of Imported Machineries.

For ongoing concerns not exceeding 6% of the previous years sales as declared in

the income tax return

Operating expenses of Bangladesh shipping corporation and Bangladesh Biman are

allowed to make remittances to meet bonafide disbursements in foreign ports / foreign

stations without approval of Bangladesh Bank. Details as per Guidelines for Foreign

Exchange Transactions.

Remittance against export claims:

The ADs may remit export claims not exceeding 10% of the repatriated export proceeds

on the following accounts:

Short weight claim;

Quality Claim;

Part Shipment.

Details as per Guidelines for Foreign Exchange Transactions

Subscription to foreign media services:

On applications from the local newspapers. ADs may remit foreign exchange towards cost

of subscription of news items features articles of foreign news agencies. Remittance

should be made on the basis of (i) contracts entered into between the applicant and the

foreign news agency and (ii) NOC of the Ministry of information.

ADs may remit abroad costs / fees on account of their own subscription of foreign media

services such as Router monitor service without prior Bangladesh Bank’s approval.

Advertisement of Bangladeshi products in mass media abroad:


ADs may without prior Bangladesh Bank approval effect remittance towards cost of

advertisement of Bangladeshi products in mass media abroad. Remittance applications

from the companies / firms in Bangladesh should be supported by the invoice from the

foreign mass media concerned, and the applicant will have to submit copy of the

advertisement within one month of its issuance. The AD shall preserve the invoice;

application and advertisement copy for post facto checking by inspection officials of

Bangladesh Bank.

Bank Charges and Sundries

The ADs may affect remittances towards settlement of dues to foreign banks of bank

charges. Cost of cables & others incidental charges arising in their normal course of the

business without prior Bangladesh Bank approval. All such remittances should be reported

to the Bangladesh Bank on Forms TM along with appropriate return.

Taking out / bringing in of Bangladesh TAKA

Incoming / outgoing passengers may bring in / take out up to Taka 500 per person in

Bangladesh currency.

In all above cases for outward remittance T.M. form to be obtained and to be reported to

Bangladesh Bank on monthly basis.

N.B. The quotas / ceiling for our ward remittances are subject to change/revision for

which latest circulars amendments must be followed.

Sharing of FTT, FDD and Spot Cash in our foreign remittance business:

Spot cash product has revealed revolutionary potentials in foreign remittance business. So,

huge number of remittance shifted from Demand Draft arrangement to Electronic Fund

Transfer (EFT) arrangement. Out of EFT, Spot Cash facility gave a new dimensions to

remittance services. People can receive money without having any account in the branch.

More over possibility of fraudulent payment of Demand Draft has been minimized owing

to introduction of spot cash. Thus the branches have been being gradually relieved of the

risk of fraudulent payment of FDD as it reduced. But liquidity position of the branch

requires to be increased to render better spot cash services.


4.6.5 A Comparative Analysis of Foreign Remittances of IBBLAnalyzing the scenario of 2008 in which the remittance business was conducted, we find

the followings:

Good growth:Remittance increased in 2008 on an average more than 80% upo September compared to

corresponding period 2007. The figures may be seen from Table: Remittance. Reason for

increasing remittance is expansion of network by establishment of remittance arrangement

with Global Web-based Remittance Institutions, Banks and Exchange Houses in U.S.A,

Malaysia, Singapore, K.S.A, Oman, Bahrain, UAE, Kuwait etc and Development of

Service, Development of Automation including on line facility.

Table: Remittance


Comparison of Remittance: at the end of each month cumulative of 2007 & 2008

07 07 07 07 07 07 07 07 07 0707

0808

08 08

08 08

08 08

0808

08

07 08

0

50000

100000

150000

Mill

ion

Tk.

2007 5120 10691 16637 23139 29720 36512 43743 50350 58305 66079 74845 84143

2008 10437 20154 32215 43520 54227 66333 79204 91565 104799 115609 128652 140420

Growth in amount 5317 9463 15578 20381 24507 29821 35461 41215 46494 49530 53807 56277

Growth in % 104% 89% 94% 88% 82% 82% 81% 82% 80% 75% 72% 67%

Janup to Feb

up to Mar

up to Apr

up to May

up to Jun

up to Jul

up to Aug

up to Sep

up to Oct

up to Nov

up to Dec

CCHAPTERHAPTER- F- FIVEIVE

CONCLUSION AND RECOMMENDATIONS


Islami Bank Bangladesh Limited

5.1 Recommendation:

To ensure better customer services coping with the growth of overall business of

the Branch additional space may kindly be allocated immediately for the branch.

Business Discretionary power may be revised.

Expenditure ceiling may be revised considering the grade of the Branch.

Evening banking allowance may be increased.

Automation of Foreign Exchange portfolio.

Revision of Foreign Exchange related charges.


Arrangement of monthly /quarterly training courses /workshops for the clients

selected by the Branches in order to promote Investment clients of the desired

level.

Effective human resources should be placed at every department of IBBL for more

speedy and smooth banking operation. Women employee should be increase more

in order to deal women entrepreneurs for create demand for investment.

The Bank should disburse total invested money at once to the clients to achieve

full benefits of invested money.

To create syndicate banking system for foreign exchange business

Decision making process should be free of ambiguity and be time conscious

Ensure reasonable spread and return on assets.

Build good value for sponsors and shareholders.

Formulation of Recruitment / remuneration policy should be outstanding.

Eventually, it should be mentioned that IBBL is still very successful and

competitive in their customer service, banking operation, management process,

record keeping and overall activities of banking.

The Bank should go aggressive advertising and promotional activities to get a

broad geographic coverage.

To fulfill the vision of "mass banking" this Bank should grants investment

portfolio to new entrepreneurs /new businessmen new companies etc.

To remove image problem, IBBL should take various advertisement programs.

Literature on Islamic capital market may be preserved at IBTRA library.

Inclusion of more subjects based on the Quran and Sunnah in the Training courses

of the Islami Bank Training & Research Academy in order to develop human

resources having morally.

IBBL should initiates different investment modes according to changing /diverse

needs of clients by conducting huge Research and study.

IBBL should introduce update technology to render competitive banking service,

launching ATM, SWIFT and on line banking system in all of its branches.

5.2 Conclusion


IBBL is trying to develop banking sector through welfare and servicing to the people.

Islami economy and banking are bound together. IBBL has emerged facing the many

obstacles yet. This bank is trying to operate their activities according to Islam.

Most of the people in our country have a bad impression about IBBL’s operations

regarding indirect generation of interest, which means no difference between investments

of IBBL loan/credit/advance of conventional banks for this reason. They are not much

interested to investment with IBBL because majority of our people have no proper

knowledge about the activities of Islami banking as well as its investment mechanisms.

IBBL through its steady progress and continuous success has, by how, earned the

reputation of being one of the leading private sector banks of the country. The bank has

shown steady progress in this important sector. IBBL’s capital adequacy, deposits,

reserves, earning per share, export, import and remittances are increasing day by day. So,

no doubt IBBL is a growing profitable financial institution.

Interest free banking system is no more a concept. It is now a Reality, a dynamic system,

embodying a set of superior banking mechanism. More than 300 Islamic bank and

financial institutions are operating in different Countries throughout the world with a

marked success from this inception in our country in 1983. IBBL has been operating with

real and confidence in corporation with other conventional banks. Bringing a new concept

in such business sector, which is growing too rapidly in the world, is rally bold step. As a

large Islamic commercial bank, Islamic bank took various steps to create employment and

socio-economic development for the poor through Islamic shariah as well as to create an

overall climate for the introduction of large scale Islamic banking environment in

Bangladesh.

The significant growing of IBBL has encouraged the traditional banks to open Islamic

banking window, like –HSBC, Dhaka Bank Ltd., Prime Bank Ltd., The city Bank Ltd.

Though IBBL has reached the top position among the PCBs in our country, it has to more

concentrate its customers’ service to survive in the long run by facing the competitors’

strong strategies in banking era.

In my study I have found that IBBL has reached this position by its commitment, people’s

love and dedicated human resources. Islami Bank has been shown its superiority in all

kinds of banking operations in our country.


The competent management of IBBL should come forward to take pragmatic strategic

decision like –easy procurement, one stop service, and time savings customers’ service

with sufficient logistics supports for the future betterment of the Bank.

To conclude we must say that, Islami bank Bangladesh Limited (IBBL) has immense

potential in Bangladesh. It can play vital role in bringing revolutionary changes in our life

with both material and moral world and in individual and collective level.

BIBLIOGRAPHY

Books:

Khan Jb.Md.Omar Faruk (2003) “Foreign Exchange Mechanism-Import”, 9th Edition,

published by Ministry of Commerce.


Khan Jb.Md.Omar Faruk (2003) “Foreign Exchange Mechanism-Export”, 9th Edition,

published by Ministry of Commerce.

Hasan M Kabir (2003) “Text Book on Islamic Banking”, Islami Economics Research

Bureau, Dhaka.

Khondoker Md. Abdul Mazid “An overview on Foreign Exchange Operations of IBBL”,

Islami Economics Research Bureau, Dhaka.

Internet:

http://www. Islami Bank Bangladesh Ltd.com.bd,accessed on 17/01/2010 to 26/04/2010

(Time: Whenever data are needed).

http://www. Islami Bank Bangladesh Ltd.bd, vision & mission .asp .accessed 17/01/2010

to 26/04/2010 (Time: Whenever data are needed).

http://www.Foregin exchange operation.bd.Com on 17/01/2010 to 26/04/2010 (Time:

Whenever data are needed)

http://www.IBTR.bd.com on 17/01/2010 to 26/04/2010(Time: Whenever data are needed).

http://www.Islami Bank Bangladesh Ltdbank.pic.com on 17/01/2010 to 26/04/2010

(Time: Whenever data are needed).

Annual Reports/Prospectus:

“Annual Report 2008, Islami Bank Bangladesh Ltd” published by Islami Bank Bangladesh

limited, 2008.

“Annual Report 2007, Islami Bank Bangladesh Ltd” published by Islami Bank Bangladesh

limited, 2007.

“Islami Bank 25 years of Progress” published by Islami Bank Bangladesh limited

Prospectus of Islami Bank Bangladesh limited.

Printing & Brochures of Islami Bank Bangladesh limited.


http://www.Islami/

http://www.Foregin/