report on foreign exchange(1)

CHAPTER ONE

1.1 Background of the Study

The prosperity of a country depends upon its economic activities. Like any other sphere of modern socio-economic activities, Banking is powerful medium of bringing about socio-economic changes of developing country. Agriculture, commerce & industry provide the bulk of a countries wealth. Without adequate Banking facility these three cannot flourish. For a rapid economic growth a fully developed banking system can provide the necessary boost. The whole economy of a country is linked up with its banking system.The functions of the bank are now wide and diverse. The customers come from all walks of life, from a small business to a multinational corporation having its business activities all around the world. The banks have to satisfy the requirements of the different customers belonging to different social groups.

1.2 Origin of the Report

This report is prepared as per internship requirement of my master of Business Administration (MBA) program of the Premier University Chittagong. I worked Two month from 6th February-16th April 2014 in Shahjalal Islami Bank Ltd. Agrabad Branch, Chittagong. In two months I have through various Banking activities. This report is a brief overview of those daily activities I have done during the internship period.

1.3 Objectives of the report

The objective of the report is to evaluate the foreign exchange performance of Shahjalal Islami Bank Ltd. The specific objectives are:

1. To know about the mechanism of Foreign exchange of Shahjalal Islami Bank Ltd.

2. To know about the Import service of Shahjalal Islami Bank Ltd.

3. To know about the export service of Shahjalal Islami Bank Ltd.

4. To know about the foreign remittance service of Shahjalal Islami Bank Ltd.

Practices of Foreign Exchange ServicePractices of Foreign Exchange Service Page 2

5. To know about foreign exchange performance of SJIBL, Agrabad Branch.6. To find out some problems of foreign exchange of Shahjalal Islami Bank.7. To gives some suggestion for overcome these problems.

1.4 Methodology of the study

The report was largely involved in accumulation of information from the published materials and also from the website of data mining guide. This prepared by using both primary and secondary data.

1.5 Sources of Data

Primary sources: Personal observation Discussion with the employees Work in different departments

Secondary sources: Published Documents Office circular

1.6 Scope of the Study

This report provides emphasis on the performance of “Foreign Exchange” service of Shahjalal Islami Bank Ltd. This report assist me to gain a robust and prevailing information and Importer, Exporter & non residents satisfaction level of Shahjalal Islami Bank Ltd. from its existing customers.

1.7 Limitation of the Study


Today’s world is an information village. All the information is being made available within a click distance. Bangladesh is still lacking in this regard. In preparing this report I have found that data are not available for people. As being an intern, it also created some problems, due to the bank policy of maintaining secrecy and also because I did not get the opportunity in all departments. The employee of different section remains busy with their daily work, it was difficult for them to find time for me to give briefs about banking norms. But the employees have given me practical ideas whenever they were free. Load of work place was also barrier to collect sufficient data and time of internship is also not enough.


CHAPTER TWO Company profile


2.1 Introduction

Shahjalal Islami Bank is named after the name of a Saint Hazret Shah Jalal (R.) who dedicated his life for the causes of peace in this world and hereafter and serves the humanity. The prime objective of Shahjalal Islami Bank is to serve the people is to attainment of their economic goal and success in life here and hereafter. Shahjalal Islamic Bank Ltd. stands not only for material well being but also ethical development of its customers.

2.2 Overview of the company

Shahjalal Islami Bank Ltd. is the name of a saint Hazrat Shah Jalal (r.)who dedicate his life for the causes of peace in this world and hereafter and served the humanity. Shahjalal Islami Bank Ltd. stands not only for materials wellbeing but also for ethical development of the customers.In the backdrop of economic liberation financial sector reforms, a group of highly successful entrepreneurs conceived an idea of floating an Islamic Bank with different outlook. For them, it was competence, excellence and consistent delivery of reliable service with value products. Accordingly Shahjalal Islami Bank Ltd. was created 1st April 2001 and commencement of business started of 10th may 2001. As a fully licensed Islami Bank, professional and dedicated team is meaning SJIBL with experience in Banking.SJIBL has already made significant progress within a very short period of its existence. The purpose of the Bank is to become “The Bank of Choice” in the communities. SJIBL offers all kinds of commercial, corporate and professional banking service covering all segments of society within the framework of Islamic Shariah , rules and regulations as lay down by Bangladesh Bank.


2.3 Corporate profile

Company Profile in Brief

Name Shahjalal Islami Bank LimitedChairman A.K. AzadManaging Director Farman R. Chowdhury

Registered Office2/B, Uday Sanz,, Gulshan South Avenue,Gulshan-1,Dhaka-1216

Auditors M/S. Syful Shamsul Alam & CoTax Advisor M/S K.M Hasan & Co.Legal Advisor Hasan & AssociatesLegal Status Public Limited Company.

Nature of Business Commercial, Corporate, Investment & Retail Banking

First meeting of the promoters held on 4th September, 2000.Date of Certificate of Incorporation 1st April, 2001.

Date of Certificate of Commencement of Business 1st April, 2001.

Banking License received on 18th April, 2001.First Branch License received on 24th April, 2001Inauguration held on 10th May, 2001.Authorized Capital Tk.80.00 core.Paid up Capital Tk.20.50 core.Number of Branches (as on 20.06.2010) 52Telephone No. 88-02-9570812, 7160591Fax No. 88-02-9570809, 9553562Website www.shahjalalbank.com.bd

2.4 Objectives Of Shahjalal Islami Bank


http://www.shahjalalbank.com.bd/

From time immemorial Banks principally did the functions of moneylenderers or “mohajans” but the functions and the scope of modern banking are now-a-days very wide and different. They accept deposits lend money like their ancestors, nevertheless their role as catalectic agent of economic development encompassing wide range of services is very important. Business Commerce and industries in modern time cannot go without banks. There are people interested to abide by the injunctions of religion in all sphere of life including economic activities. Human being is value oriented Social Science is not value neutral. Shah Jalal Islami Bank believes in moral material development simultaneously other objectives of

Shahjalal Islami Bank include: To established interest-free & welfare oriented Banking system. To help the poverty alleviation and employment generation. To contribute the sustainable economic growth. To established justice in whole economy and business. To established participatory banking instead of banking of debtor

creditor relationship.

2.5 Feature of Shahjalal Islami Bank Ltd.

There are many reasons behind the better performance of Shahjalal Islami Bank Ltd. then other newly established banks:

The inner environment of all branches is well decorated The Bank provide loan to customers with easy and flexible

condition then the other do L/C commissions and other charges are relatively low then

other banks The bank has established correspondent relationship with

many foreign banks.

2.6 Mission of SJIBL


TO be the premier financial institution in the country providing high quality products and service backed by latest technology and a team of highly motivated personal to deliver excellent service and to stand out as a pioneer Islami Banking institution in Bangladesh and contribute significantly to the national economy. And also to provide quality service to customer, to set high standards of integrity, to make quality investment, to ensure sustainable growth in business.

2.7 vision of SJIBL

To be an unique modern Islamic bank in Bangladesh and to make significant contribution to the national economy and enhance customers trust and wealth, quality investment s, employees value and repaid growth of Shareholders equity.


CHAPTER THREE

An Overview Foreign Exchange Business

Introduction

Foreign exchange means exchange of foreign currency. H.E Evitt define “Foreign Exchange” as the means and methods by which right to wealth expressed in terms


of currency of one country are convert into right to wealth in terms of the currency of another country. International trade are a common occurrence and normally benefit both the exporter and importer. In many countries, international trade account for more than 20% of their national income.

Foreign Exchange department is international department of the bank. It deals with globally and facilities internationally tread through its various services. It bridges between import and export.

The trade among various countries causes for close linkage between the parties involved. In Bangladesh, the bank that facilities such transaction is reoffered to as authorised dealer certified by Bangladesh Bank.

International trade demands a flow of both goods from seller to buyer payment from buyer to seller. This flow of goods and payments is done through credit instrument, for example, letter of credit, Bills of exchange etc.

3.1 Definition of foreign trade & Exchange:

The foreign trade &business of a country involves activities of buying & selling of or exchange of goods & services between two countries. The means it refers to trade between the residents of between two countries.

To understands foreign exchange business, one should know the meaning of foreign exchange; It means, it’s process or system of conversion of one national currency into another and of transferring money from one country to another.(Dr. Paul Einzing)

3.2 Foreign Exchange Regulation Item:


1. Local regulation for foreign exchange

Our foreign exchange transaction is being controlled by the following rules & regulation:

Foreign exchange regulation act 1947:

To regulate foreign exchange, Bangladesh bank has published a book namely “guideline fir foreign exchange transaction” volume -1&2. It is amended after every five years.

Bangladesh bank issues foreign exchange circular from time to time to control export, import & remittance business.

Ministries of commerce issues export & import policy giving basic formalities for export & import business.

Some CCI & E issues public notice for any kinds of change in foreign exchange transaction Bangladesh bank published two volumes in 1996. This is compilation of the instruction to be followed by the authorised dealers in transaction related to foreign exchange.

Regulation of foreign exchange:

There are also some international organisations influencing our foreign exchange transaction. Few of them are discuss bellow:

International chamber of commerce (ICC) is a worldwide nongovernmental organization of thousands of companies. It was founded in 1919. ICC has issued some publications lime UCPDC, URC etc. Which are being followed by all the member countries. There is also an international business disputes.

3.3 Functions of Foreign exchange department of SJIBL:


Export:

1. Pre-shipment advances.2. Purchases of foreign bills.3. Negotiating of foreign bills. 4. Export guaranties.5. Advising /Confirming letter of credit.6. Advances for deferred payment.7. Advance against bill for collection.

Import:1. Opening of letter of credit.2. Advance bills.3. Bills for collection.4. Import loan & guarantees.

Remittance:1. Insurance of DD, MT, TT etc.2. Payment of DD, MT, TT etc.3. Insurance & enhancement of travel’s cheque.4. Sale & enhancement of foreign currency notes.5. Maintaining on non-resident account

3.4 Types of Exchange rates

Direct Quotation or pence rate Indirect Quotation or foreign currency rate Cross rate Spot rate Forward rate


Causes of Exchange rate fluctuation Commercial transactions Inflation Capital Investment Short term capital movement Stock exchange transaction Speculation

Settlement of exchange rateAs we all know that in Bangladesh the dollar rate is floating- the dollar rate determines by market that means on the basis of demand and supply. And every day we have been seeing the dollar exchange rate in the daily newspaper. There are two rate one is BC sell and TT buy rate. But commercial bank does not follow the rate. Every commercial bank has own foreign exchange division. They determine what will be the exchange rate on day to day basis. Once they are determining the exchange rate they sent the rate to their branch office. So it is determined by the foreign exchange Division of head office.

3.5 Letter of credit

The uniform custom & practice for documentary credit (UCPDC) article 2, published by international chamber of commerce (1993) revision, publication no. 500 defines documentary credit as follows:

“Any agreement, however named and described, whereby the issuing bank acting at the request and on the instruction of a customer or its own behalf,

1. Is to make a payment to or to the order of third party or is to accept and pay bill of exchange drawn by the beneficiary, or


2. Authorizes another bank to effect such payment, or to accept and pay such bill of exchange,

3. Authorizes another bank to negotiate, against stipulated documents, provided that the terms and conditions are complied with.

3.6 Reasons for opening L/C

Exporter advantage Importer advantage

Payment certificate Immediate negotiation of the

bills Certainty regarding the

observance of FAX restrictions

Advance in this sector is secured.

Integrity and credit worthiness exposed to the exporter.

Bills are assured to be paid at the fulfillment of the L/C terms & conditions.

It is less expensive than other methods of purchasing goods from abroad.

3.7 Practice to letter of credit:

A letter of credit issued by a bank at the request of an importer in favor of an exporter from whom he has contracted to purchases some commodities or services. Generally the letter of credit is transmitted to the beneficiary through a bank of beneficiary’s country. Therefore, parties of letter of credit are mainly:

Importer/ Buyer/ Applicant:

The person or body who apply to the bank for issuing the L/C is treated an importer.

Issuing bank or opening bank:


The bank which opens / issues letter of credit on behalf of the importer is treated as the issuing bank.

Advising or notifying bank:

The bank through which the L/C is advised to the beneficiary (Exporter) is treated as advising bank. The advising bank acts only as an agent of the issuing bank having no engagement on their part.

Exporter/ Seller/ Beneficiary:

Beneficiary of the L/C is the part in whose favor the letter of credit is issued.

Confirming bank: It is the bank which adds its confirmation to the credit and it done at the request of issuing bank.

Negotiating bank:

The bank, which is negotiates documents and pays the amount to the beneficiary when, present complying credit terms treated as negotiating bank. Normally negotiating bank is the banker of the beneficiary.

Reimbursing bank/Paying bank:

The bank nominate in the credit by the issuing bank to make payment against stipulated documents, complying with the credit terms. Normally issuing bank maintains accounts with the reimbursing bank.

3.8 operation of letter of credit


Send document & bill of exchange.

3.9 Different types of L/C (chart):


INDENTURE

IMPORTER

Send invoice to the Importer

Goods shipmentEXPORTER

APPLICATI

Importer comes to the bank, pay to the bank and collect the documents to unloaded the goods from port

Send documents for shipment of goods

Send documents for collection bill

Payment to exporter

ISSUING BANK

L/C opening, Advising & confirmation

Pay to the negotiating bank

NEGOTIATING BANK

REIMBURSING BANK


L/C

According to forms

According to payment

Revocable Irrevocable Sight Deferred

Revolving Transferable Straight Stand by Back to Back

Circular Anticipation

Chapter Four

Import section

Introduction:Practices of Foreign Exchange ServicePractices of Foreign Exchange Service Page 19

Bangladesh imports a large number of goods from foreign households. Imports of goods into Bangladesh is regulated by ministry commerce and industry in terms of the import & export (control) Act 1950, with import policy orders issued by annually and public notices issued from time to time by the office of the chief controller of import and export (CCI&E).

4.1 Who can do import business?

A person having import registration certificate (IRC) can do import business.

4.2 Import procedure through SJIBL:

To Import through SJIBL, a client has to obtain import registration Certificate (IRC). It requires to the following certificate:

Al-Wadia Current account IRC(Valid) Indent / pro-forma invoice Membership certificate of chamber of commerce TIN & VAT Registration certificate Other papers as required The certificate from associate of market.

4.3 Workings in import department:


The following things are done in this department:- Total supervision of import department (Cash / Back to Back L/C).

Foreign correspondence related to above.

Payment of Back to Back L/C and endorsement of Export L/C against payment.

Follow-up Back to Back overdue bills.

Correspondence regarding Back to Back L/C and cash L/C.

Maintenance record of related L/C documents.

Audit compliance.

Endorsement of Export L/C when opening.

Batch checking.

All corresponding related to Back to Back L/C with Head office and Foreign.

Correspondent.

Supervision of checking, Lodgments & retirement of Import documents under Back to Back L/C.

Issuance of shipping guarantee (bank L/C).

IMP from Fill-up (Cash L/C) Information Negotiating Bank about maturity date of Back to Back

L/C.


Balancing of accepting liability.

Statement of outstanding accepted import bills under Back to Back L/C.

Credit report.

Preparation of monthly foreign exchange business, position.

L/C lodgment.

Differed payment (cash)

Checking of cash L/C documents.

L/C retirement.

Proof sheet L/C Margin and Contingent liability (cash L/C).

IMP Form:

This form is prepared for maintaining account of the money, Which goes outside the country for the purpose of payments. This form is required by Bangladesh Bank. It is an application for permission under 4/5 of the foreign exchange regulation act 1947 to purchase foreign currency for the payment of Import.

IMP form has four copies:1. Original copy of Bangladesh Bank.


2. Duplicate copy for authorized dealers. It is issued for processing exchange control copy of bill entry or certified invoice.

3. Triplicate copy for authorized dealer’s record.

4. Quadruplicate copy for submission to the bank in case of import where documents are retired.

Following documents are sent with IMP form: 1. Letter of credit authorized dealer.

2. One copy of invoice.

3. Indent copy/ Performa invoice.

The following information is including in the form-IMP:

1. Name and address of the authorized dealer.

2. Amount of the foreign currency in words and figures.

3. Name and address of the beneficiary.

4. L/C authorized form number and date.5. Registration number of L/C authorized form with Bangladesh

bank, and description of the goods.

4.4 Import mechanism:


According to Import and export control act 1950, a person should be competent Importer to exporter. The chief controller of Import & export office provides the registration certificate (IRC) to the Importer. After the Importer has to secure a credit authorization (LCA) from Bangladesh Bank and the importer will be a qualified importer. After that the importer is the person who request or instruct s Shahjalal Islami Bank Ltd. the opening bank is to open L/C. Therefore the importer is also called opener or applicant of the credit.

4.5 Importer application for L/C limit:

An importer submits an application to departments of foreign exchange Shahjalal Islami Bank Ltd. furnishing appears in the appendix of this report.

1. Full particulars of bank account.2. Nature of business.3. Required terms & conditions.4. Goods to be imported.5. Offered security.6. Repayment schedule.

A credit officer scrutinizes this application and accordingly prepares a proposal- called credit limit proposal (CLP) and forward it to be the Head office credit committee (HOCC). If the committee satisfied, the limit proposal sanctioned and returns back to the branch. Thus the importer is entitled for the limit.

4.6 Procedure of opening L/C to import:


To open an L/C the requirements of an importer are:1. He must have an account in SJIBL.2. He must have Importer registration certificate (IRC).3. Report on past performance with other bank. SJIBL

collect this report from Bangladesh bank.4. CIB (credit information bureau) report from Bangladesh

bank.5. A personal approved by the meaning of executive of the

bank. It is necessary only when the L/C amount is small or there is no limit.

6. If the L/C amount is large or there is a limit, then an approval from Bangladesh bank is needed. Usually this approval is needed for amount more than one core.

Opening of the L/C means, at the request of the applicant (importer), issuance of a L/C in favor of the beneficiary (Exporter) by a bank, which opens or issue L/C called L/C opening bank or issuing bank. Throughout this report the term “opening bank “conveys the same meaning.

4.7 Accounting treatment for opening L/C:

For opening L/C, importer will apply to the issuing bank. In that case, importer is called applicant or opener. After opening an L/C bank will create contingent liability. In that case, the accounting posting will be the following: Contingent liability Dr. Customer liability Cr.

Then the issuing bank will give another entry Payment against document (PAD) Dr. SJIBL General A/C Cr. Exchange gain Cr.


SJIBL general account is a miscellaneous account. It will be created by this entry SJIBL created a liability. He has to the money to the advising bank. And the gain made by the transaction is shown at exchange gain account. All these entries are made after receiving some documents from the exporter, the above procedure is called lodging. After giving the above entry, importers pay the money and collect the document. Party account Dr. PAD account Cr.4.7 Margin & bank charges: Party account Dr. Margin account Cr. Commission Cr. Postage Cr. L/C commission and other charges are realized from the party before as FCC. FCC includes the foreign bank charges. Amount of FCC is kept separately in an account and this entry may be received as when the debit advice received from the foreign correspondent by passing voucher for actual amount. If there is any shortfall, the same is to be realized from the party.

4.8 Liability of issuing Bank:

As per article 9(a) of UCPDC 500, an irrevocable credit constitutes a definite undertaking of the issuing bank, provided the stipulated comply with the terms and conditions of the credit.

4.9 Advising of letter of credit:


Advising through a bank is a proof of evident authority of credit to the seller. The process of advising a credit consists of forwarding the original credit to the beneficiary to whom it is address. Before advising L/C, the advising bank must see the following points:

Signature of issuing officials on the L/C verified with the specimen signature book of the said bank when L/C received.

L/C test code is invariable be agreed and authenticated by two authorized officer.L/C is scrutinized thoroughly complying with requisites of concerned UCPDC provisions.

Entry made in the L/C advising register.

L/C is advised to the beneficiary promptly and advising charges recovered.

4.10 Advising bank liability:

Advising bank liability is fixed up in uniform customer and practice for documentary credit publication, 500.

Article 7(a): credit may be advised to a beneficiary through another bank without engagement on the part of the advising bank, but that bank if selects to advice to credit, shall take reasonable care to check the apparent authenticity of the credit which it advises. If the bank elects not to advice the credit, it must uniform the issuing bank without delay.

Article 7(b): If the advising bank cannot established such apparent authenticity it must inform delay, the bank from which the instruction


appear to have been advised that it has been unable to established the authenticity of the credit and if it elects to advised the credit it must inform the beneficiary that it has not been able established the authenticity of the bank.

4.11 The confirming bank

If the advising bank also adds its own undertaking to honor the credit while advising the same to the beneficiary, He become the confirming

bank, in addition becomes liable to pay for documents in conformity with the L/C terms and conditions.

4.12 The beneficiary varies the letter of credit:

1. The letter of credit terms are the conformity with terms of the original contract of the sell.

2. That no derogatory terms added to the letter of credit.

3. That he is in a position to ship consignment within the shipment date stipulated in the letter of credit.

4. That letter of credit ensures him payment upon tending of the export document.

5. The beneficiary sees any charge to contract of sale or if he feels any amendment, he informed the advising bank thereof.


4.13 L/C Amendment:

After opening of L/C, the importer may feel necessary delete, add or alter some of the clauses of the credit. All there charges are communicated to the beneficiary through some advising bank of the credit. Such changes or modification to a credit are termed as amendment to a letter of credit. Parties involved in a L/C, particularly seller and buyer cannot always satisfy the terms and conditions in full as expected due to some obvious and genuine reasons. The credit should be amended. SJIBL transmits the amended by the tested telex to the advising bank. In case of revocable credit it can be amended or cancelled by the issuing bank at any movement and without prior notice to the beneficiary. But in case of irrevocable letter of credit, it can neither be amended or cancelled

without consent of the issuing bank, the confirming bank and the beneficiary. If the L/C is amended, service charge and telex charge is debited from the parties account accordingly.

4.14 Consignment:

After the power amendment of L/C, the supplier will be willing to immediately start packing and will ship the goods when ready and obtained full set of bills of leading etc. From the carrier company and submit the same to the negotiating bank along with other documents that are called for in the credit. The shipping documents ususlly obtained are:

1. Bills of leading.

2. Consignment notes.

3. Truck receipt.


4. Bill of exchange.

5. Commercial invoice.

6. Certificate of origin.

7. Packing list.

8. Weight certificate.

A copy of declaration of shipment made to the insurance company & Pre-shipment inspection certificate from international reported surveyor.

4.15 Scrutiny of document by negotiating bank:

Negotiating bank scrutinizes the documents carefully with letter of credit terms in the following forms.

The credit is a force and the last date of shipment and negotiation has been expired.

Document presented are preciously called for.

The invoice correspondents with the dealers of all other documents submitted under the bill.

Insurance policy is properly stamp and made out and endorse it conformity with the condition. A complete set of bills of leading is ensured.


Reimbursement clauses is clear does not violate Exchange control regulation, if any.

4.16 Settlement of L/C:

The issuing bank also checks the documents and if the documents are found as per credit requirement, it will also give payment under three separate arrangements. Although three arrangements are discussed here separately for proper understanding, it is noteworthy to say that the applicant, on the very beginning of L/C application, mentions the mode settlement.

Settlement by payment:

Settlement by payment happened when the letter of credit contains the terms against payments as the mode of payment. Under DP arrangement, the beneficiary presents the documents to the negotiating bank. If satisfied, the negotiating bank makes payment to the beneficiary and then sends the documents to the issuing bank and claim reimbursement.

Settlement by acceptance:

Payments, from importer to seller, must be settled through acceptance mechanism if the letter of credit L/C contains the term “Documents against acceptance “. It means that payments will occur at some fixed future date after submission of documents and drafts. At maturity, reimbursement is obtained in the pre-arrange manner, subject to satisfy the credit requirements of the documents.

Settlement by negotiation:


This settlement procedures starts with the submission of documents by the seller to any negotiating bank in a freely negotiate the documents. If negotiation is restricted by the issuing bank only nominate bank can negotiate the documents .After scrutinized that the documents meet the credit requirement, the bank may negotiate the documents and give value to the beneficiary.

4.17 lodgment of the documents:

After receiving the documents from the exporters at first SJIBL it in the PAD register.PAD register contains date, PAD number, L/C number, and name of the drawer , name of the drawee, amount, and the number of copies of various documents, name of the imported items. The written procedure is called lodgment.

Accounting application: Whether the documents are paid or dishonored, the opening bank will reserve the liability entries in their book as under:

Contingent liability reversal voucher: Bank liability on L/C Dr. Customers liability on Cr.Voucher on lodgment on documents: Margin A/C on L/C Dr. Payments against documents Cr.

Margin amount transferred to PAD A/C: Party’s account Dr. PAD A/C Cr. Customer account debited for the remaining amount: PAD A/C Dr.


Head office general account Cr. Income A/C interest on PAD Cr.(Amount given to the head office international division and is credited)

4.18 Retirement of the documents:

The process of collecting documents from bank by the importer is called retirement of documents. The importer gives necessary instruction to the bank for retirement of the import bills or for disposal of the shipping documents to clear the imported goods from the customer authority. The importer meet instruct the bank to retire the documents by debiting his current account with the bank or by creating Loan against the trust receipt (LTR). Following steps are taken while retiring documents calculation of profit. Calculation of other charges, passing vouchers, entry in the register. Endorsement in the bills of leading , other transport and in the bills of exchange.

4.19 Import financing:

SJIBL generally follows some types of import Financing. This short of import financing greatly facilitate the import business and thus enable importer to have credit facilities from the bank.

4.20 Sources of finance:

Import may be allowed under the following sources of finance:

Cash


1. Cash foreign exchange (balance of foreign exchange reserve of Bangladesh bank)

2. Foreign currency accounts maintain by Bangladesh National working /

living abroad.

External economy Aid.

Commodity Exchange.

4.21 Types of import financing:

There are two types of import financing 1. Pre- import financing.2. Post import financing

Pre-import Financing:

1. Opening of L/C under case, loan / credit etc. at below 100% margin:

While importer opens L/C at 10% margin with a commercial bank indicates that the time of opening L/C, The importer concerned deposits

taka equivalent to 10 % of the L/C valued and the rest 90% will have the deposits at the time of taking delivery of bills from the issuing bank.

2. Opening Back to Back L/C:

Back to Back letter of credit may be define as a credit, which is opened at the instruction and request of the beneficiary of the original export L/C on


the basis of strength of that L/C. Ready-made garments industries and specialized textile unit are allowed the facilities of importing fabrics and other materials needed for manufacturing of garments/ specialized textiles against Back to Back L/C arrangement.

These are two types:

1. Foreign back letter of credit.2. Inland back to back letter of credit.

Post-import Financing:1. PAD (Payment against document):

On receipt of import bills against the L/C from the negotiating bank, the issuing bank scrutinizes the documents with the terms and conditioned of the L/C and if it is found completely in order, PAD loan in the name of the importer in order to reconcile the entries so debited by the reimbursing bank.

2. LIM (Loan against Imported merchandise):

LIM may be created at the request of the importer while he is not in a position to take delivery of import bills by making of entire bank dues. By creating LIM the name of the importer goods are cleared from the custom authorities by the L/C issuing bank the same at the go down under banks custody.

3. LTR (Loan against trust receipt):

a. Advanced against a trust receipt obtained from the customers are allowed to only first class tested parties when the documents covering an import shipment or other goods pledged to the bank as security are given without payment.


However, for such advances prior permission/ sanction from head office must be obtained.

b. The customer holds the goods or their sale-proceeds in trust for the bank till such time, the loan allowed against the trust receipt in fully paid off.

c. The trust receipt is a document that create the bankers lien on goods and practically amount to hypothecation of the proceeds of sale in discharge of the lien.

4.22 Major commodities which are imported by SJIBL, Agrabad Branch.

(In Taka)

2007 2008 2009Fabrics & accessories

1255290560 1569113200 1961391500

Scrap 527601600 627259680 586224000Rice 4398900 3799050 3999000Dates 8106480 9007200 10008000Clinker 72571444 80634937 89594375Camical 45961915 48380963 53756625Motor vehicles 153743948 139767225 215026500

Graphical presentation



CHAPTER FIVEExport Section

5.1 Introduction:Practices of Foreign Exchange ServicePractices of Foreign Exchange Service Page 38

Creation of the wealth in any country depends on the expansion of production & increasing participation in international trade. By increasing production in the export section we can improve the employment level of such a highly populated country like Bangladesh. Readymade textile garments, jute, jute made products, frozen shrimp, tea are the main goods that Bangladeshi exporters export to foreign countries. Garments sector is the largest sector that exports the lion share of the country’s exports. Bangladesh exports 40% of its readymade garments product in USA. They open export L/Cs here to exports their goods, which they open against the import L/Cs opened their foreign importers.

5.2 Export policy:

Export policy formulated by the ministry of commerce, GOB provides the overall guidelines & incentives for promotion of imports in Bangladesh. Export policies also set out commodities-wise annual target.The export oriented privet sector, through their representative bodies and chamber and consulted in the formulation of export policies and also represented in the various export promotion bodies set up by the Government.

5.3 Export procedures:

The import and export trade in our country regulated by the import and export (control) Act, 1950. Under the export policy of Bangladesh the exporter has to give valid export registration Certificate from the Chief controller of import & export. The ERC is required to renew every year. The ERC number is to incorporate on EXP forms and other papers connect with exports. For export exporter need to follow the following steps:

Registration of exporters:For obtaining ERC, exporters are required to apply the respective authority in the prescribed form with the following documents:-

Nationality & address certificate.


Memorandum & Articles of association, Certificate of incorporation in case of limited company.

Bank Certificate.

Income tax certificate.

Trade Licence certificate.

Any other documents as per contract & Export policies order. Securing the order:

After getting REC certificate the exporter may proceed to secure the export order. He can do this by contracting buyers directly or through agent. In this purpose the exporters may get help from:-

Licence officers.

Buyer’s local agent.

Export promoting organization.

Bangladesh Mission Abroad.

Chamber OF Commerce (local or foreign).

Singing the contract:

Exporter has to get contracted after communicating buyer, for exporting exportable items from Bangladeshi detailing commodity, quantity, price, shipment, insurance & marks, inspection & arbitration etc.

Receiving L/C:

After getting the contract for sale, exporter should ask the buyer for letter of credit clearly stating terms &condition of export & payment. The following are the


main points to be looked into receiving/ Collecting export proceeds by means of documentary credit:

The terms of L/C are the conformity with those of the contract.

The L/C is an irrevocable one, preferably confirmed by the advising bank.

The L/C allows sufficient for shipments & negotiation

Terms & conditions should be should be stated in the contract clearly in case of other mode of payment:

Cash in advance. Open account. Collection basis (Documentary/ Clean)

Procuring the materials: After making the deal and on having the L/C opened in his favour, the next step of the exporter is to set about the task of procuring or manufacturing the contracted merchandise. If the exporter has to procure the raw materials from another supplier he has to open Back to Back L/C.

Shipment of goods:

Then the exporter should take the preparation for the export arrangement for delivery of goods as per L/C and Inco terms, prepare & submit shipping documents for payment / negotiation in due time. Required documents for shipping:

EXP form.

ERC (Valid)

L/C copy.

Shipping instruction.

Transport documents.

Insurance documents.


Invoice.

Other documents.

Bills of exchange.

Certificate of origin.

Inspection certificate.

Quality Control Certificate.

Phytosanitary Certificate.

Final steps:

Submission of these documents are mandatory to the bank for negotiation for the shipment of goods.

5.3: Export procedure in flow chart:


Registration with CCI & E

Securing order from buyer or through agent

Receiving L/C from buyer’s bank through an advising bank in Bangladesh

Will the exporter be allowed any pre-shipment facility?

Yes

No

No

No

Yes

No

5.4 Parties to export transaction:

L/C issuing bank.

Importer.


Certificate of EXP. Form by authorised dealer (bank)

Make bank’s lien on the face of the original

Shipment of goods by the exporter

Preparation of export documents for submission to negotiating bank

Obtained necessary securities Dr. Packing credit Cr. Exporter A/C

Security export documents by the negotiating bank

Arrange shipment of goods through bankers approved C&F agent & instruct them to send original B/L etc to the bank directly

Are the documents in order?

Ask exporter to remove discrepancies

Are all the discrepancies remove?

Informed opening bank about discrepancies

Negotiation documents Dr. FDBD Cr. Exporters A/C Cr. P.C A/C

Do they all negotiation?

Dispatch documents with reimbursement instruction

Send the documents for collection with reimbursement instruction. Pass liability voucher and entry into FDBC register

Check whether your’s A/C with foreign bank created

Send reminder to paying bank

Has it been created?

Retire FDBP Dr. H.O A/C foreign bank Cr. FDBP? Exporters A/C Cr. Income A/C exchange earning reverse liability voucher

L/C advising bank.

Confirming bank.

Negotiating bank.

Paying bank/ Negotiating bank.

5.5 Add confirming bank:

Bank may add additional confirmation to export L/C where there is a specific instruction from L/C issuing bank to do so. Additional confirmation to L/C gives the seller a double assurance of payment. Bank’s requirement of adding confirmation:-

Issuing bank should be reputed bank.

Credit line/ Arrangement with the L/C issuing bank.

L/C clauses are to be acceptable to the confirming bank.

Approval from the component authority of adding confirmation of export L/C.

Confirmation charges are to be recovered as per rules.

5.6 EXP forms:

All exporters must be declared on the EXP form. On EXP form statutory declaration is furnished by exporter before shipping goods to


countries outside Bangladesh & certificate on it is given by the banker. The EXP forms issued in quadruplicate and numbered serially.

5.7 Receipt of Export L/C & Advising thereof:

Signature of foreign banks on the L/Cs verified when airmail

export L/C received from the correspondence specimens signature books.

If the export L/C is intended to be & operative cable L/C test invariable be agreed and authenticated by two authorised officers.

L/C scrutinized thoroughly complying with the requisite of concerned UCPDC provisions.

Attentions drown to the opening bank to any clause which contravenes exchange control regulations.

Entry made in the L/C advised register.

Credit advised to the exporter promptly and advising charges is recovered.

EXP form issued only account of genuine parties after verifying their ERC when presented duly signed by exporter certified by authorised officer of the bank.

Entry in the EXP certificate register introduced as per specification of ECD Bangladesh bank.

Reminders send to the exporters if the relative documents are not submitted in time against EXP already certified by us.

Export bills are scrutinized meticulously with L/C terms & conditions.

Negotiation made on the same day or on the following day positively under information to international division, Head office.


Submission of duplicate copy of EXP form within 15 days from the date of negotiation of documents as per requirement of the ECD Bangladesh bank.

Submission of triplicate copy of EXP form to ECD Bangladesh bank with monthly returns.

Follow-up a proper which is kept on the bills negotiated under L/Cs and payments in time.

Bills negotiated under guarantee be followed up and got realised.

Counter guarantee from the export is obtained in case of negotiation of discrepant documents.

Export proceeds realization certificate be issued only against documents negotiated without discrepancy.

5.8 Check Points:

The bank should check the bill of leading other documents.

5.9 Packing credit:

Packing credit is allowed complying with the instruction issued by ECD, Bangladesh bank in F.E circular.

For Covering a particular shipment adjustable upon negotiation/ purchases of relative export documents. in the form of limitation for a particular period adjustable periodically.


Broadly in the following forms:-

Export cash credit (Hypnotisation).

Export cash credit (Pledge).

Export cash credit against trust receipt.

Packing certificate

Back to Back letter of credit (inland & foreign).

Credit against red-clause letter of credit.

5.10 Check point for allowing packing credit:

That the exporter is duly registered with CCI & E holding valid ERC.

Credit worthiness of the export be judged where applicable with reference to the financial statement.

Past export performance (if any).

That the export L/C is genuine, irrevocable valid, containing standard terms & conditions and is of first class foreign bank lien due marked on it, where required, the status of the bank should also be ascertained. Reimbursement clause is carefully noted to serve the purpose.

That the terms of credit do not violate exchange control registration of the country.

If needed the buyer’s credit worthiness is verified through foreign correspondent.


Credit requirement of the party must be within the set norms of credit restriction.

That charge document applicable to the type of credit allowed is obtained prior to allowing facilities.

ECG coverage is obtained where applicable.

That all terms and conditions as per sanction advice or as it applicable with regard to intention of control securities are complied with etc

5.11 Export financing:

Export constitutes an important part of a bank’s activities. Exporter requires financial services at four different stages of their export operation. During each of pause exporters need different types of financial assistance depending on the nature of the export contract.

Pre-shipment credit.

Post-shipment credit.

Pre-shipment credit: Pre-shipment credit is given to finance activities of an exporter prior to the actual shipment of the goods for export. Before allowing such credit to the exporters the SJIBL takes into consideration about the credit worthiness, export performance of the exporters, together with all necessary information required for sanctioning the credit in accordance with the existing rules & regulations. Pre-shipment credit is given for the following purpose:-

To meets working capital needs

Cash for local procurement and meeting related expenses.

Packing & transporting of goods for export.


Payment of insurance premium.

Inspection fees.

Freight charges etc.

Post-shipment of credit:This types of credit refers to the credit facilities extended to the exporters by the bank after shipment the goods against export documents. Necessity for such credit arises when the exporter cannot effort to wait for long time for without paying suppliers. Before extending such credit, it is necessary on the part of bank to look into carefully the financial soundness exporters & buyer’s as well as other relevant documents connected with the export in accordance with the rules &regulation in force. SJIBL extend the post-shipment credit to the exporters through:-

Negotiation of documents under L/C:

The documents for negotiation generally includes:-

Bill of exchange or draft.

Bill of leading.

Insurance policy.

Invoice.

Certificate of origin.

Inspection certificate.

Any other documents specially called for the letter of credit.

Export foreign documentary bill purchase:

Sometimes the client submits the bill of export to bank for collection the payment of the BTB L/C. In that case, SJIBL purchase the bill and collect the money from exporter. SJIBL subs tracts the amount of bill from BTB


and gives the rest amount to the client in case or by creating his account or by the pay order. For this purpose SJIBL maintains a separate register named FDBP register. This register contains the following information:-

Date.

Reference number.

Name of the drawee.

Name of the collecting bank.

Conversion rate.

Bill amount both in figure & taka.

Export form number.

Export L/C number.

Advances against export bills surrendered for collection:

Bills drown under L/C, without any discrepancy in the documents, generally negotiated by the bank & the exporter gets the money from the bank immediately. But the bill is not eligible for negotiation, the exporter may obtained advance from the bank against the security of export bill. In addition to the export bill, bank may ask for collateral security like a guarantee by a third party and registered mortgage of property.

5.12 Export incentives:

Rate of interest in export financing.


Export credit facility for 180 days, 270 days export for tea, leather and frozen food.

Bonded warehouse facilities to 100% export oriented industry.

No overdue interest on FBP is to be charged for negotiation of export documents drawn strictly as per L/C.

Duty free import of capital machinery for 100% export oriented industry.

Credit card facility.

Duty draw back facility.

Export credit guarantee scheme.

Export development fund.

Cash assistance/ Cash Incentives.

Voucher to be passed: Disbursement: Dr. Temporary advance against cash incentives Cr. Exporter A/C

Adjustment: Dr. Head office A/C (cash incentives) Cr. Temporary advance against cash incentive Dr. Exporter’s A/C Cr. Income A/C Int. On temporary advance against cash incentives

5.13 Overdue export bills:


Full foreign exchange proceeds of export must be received by exporter in four months. Overdue causes must be reported to Bangladesh bank by authorised dealer in prescribed form as per rules.

5.14 Transfer export L/C:

A transferable LC can be transferred to second beneficiary at the request of original beneficiary and transfer may be once only.

The credit can be transferred only on the terms & conditions specified in the original credit with the exception of

I. The amount of the credit II. Unit price expiry, period of shipment.

Accounting procedure: When the export proceeds realize then that following vouchers are passed:-

Dr. General A/CCr. Exchange gain A/CCr. Clients A/C

To make such payment SJIBL adjust the loan payment against the acceptance provided by the importer’s bank.

5.15 Major commodities which are Exported

SJIBL export readymade garments & Brass metal.Table: total export of SJIBL Agrabad branch, Chittagong in 2009.

Commodities 2007 2008 2009


RMG 224.01 235.8 262Brass Metal Scrap

33.2 36.8 40



CHAPER –SIX

REMITTANCE SECTION


6.1 Foreign remittance:

Foreign remittance means purchase and sale of freely convertible foreign currencies and admissible under exchange control regulation of the country. Purchase of foreign currencies constitutes inward foreign remittance and sale of foreign currencies constitute outward foreign remittance.

6.2 Types of foreign remittance:

There are two types of foreign remittance.

Foreign inward remittance. Foreign outward remittance.

6.2.1 Inward foreign remittance:


Inward foreign remittances mean remittance received in Bangladesh from abroad through normal banking channel in the form of F.T.T, F.M.T & F.D etc. Issued by foreign banks on any authorised dealer in Bangladesh. Inward foreign remittance is one of the major sources of the foreign currency reserve of the country and order to encourage inflow of remittances through banking channel from the non-residence Bangladeshis. Shahjalal Islami Bank Limited provides quality service for reputation & collection of remittance with the help of its foreign correspondence and trained personal. Remittance services provided by Shahjalal Islami Bank Limited are:

Process / collection of cheque / Draft, TT, MT, in USD, GBP, EURO, AUD, and JPY.

Check points for inward foreign remittance:

TT: T.T must be authenticated by banks concerned officer. The following points must be seen in payment of T.T:-

Name of the remitting bank.

Amount in foreign currency. Test number, Date and foreign name of the branch with whom test applied.

Name of the beneficiary and A/C number.

Name of the beneficiaries bank/ branch with address.

Name of the remitter.

Name of covering bank in absence of drawing arrangement with remitting bank.

Value date of remittance.


Purpose of remittance.

Entry in the FTT paid register.

6.2.2 Outward foreign remittance:

Issuing of FDD, TT, MT in USD,GBP, EURO, AUD & JPY

Issuance of AMEX travellers cheque in USD.

Handling of student file of the student going abroad for educational purpose in USD, GBP, EURO, AUD and JPY.

Checking points of outward remittance:

Application for foreign currency draft of remittance by means of telegraphic transfer (T.T).

Demand note/ Invoice where Bangladesh bank permission is not required.

T/M from duly filled in and signed by the applicant.

Declaration of the applicant in respect of foreign currency previously consumed by him.

Permission from Bangladesh bank for remitting foreign currency exceeding normal quota as per standing circular of Bangladesh bank.

Validity of permission must be seen if approved by ECD, Bangladesh bank.

6.3 Remittance under WES


This means inward remittance earned by earners residing and earning abroad the sending their earning through banking channel which is entitled to have the exchange rate under WES as fixed by Bangladesh bank which is normally higher than the official rate.

6.4 Foreign Currency Account

An account opened and maintained by authorised dealers inn currencies other than Bangladeshi Taka. Without prior approval from Bangladesh bank FC A/C may be opened in US dollar, great Britain Pound, Japanese Yean, and EURO. Shahjalal Islami Bank Limited provides different A/C services as prescribed by the guidelines of the central bank and offer competitive interest rate for those accounts.

Foreign currency account (FC) may be in the form of :-

Non-Resident foreign currency deposit account (NFCD).

Resident foreign currency deposit account (RFCD).

Private foreign currency account.

Convertible & Non-convertible Taka account.

Private Non-Residential Taka account.

Non-Resident Non-Convertible Taka account.

6.5 Salient feature of FC account:

The salient features of FC account are:

Opened without initial deposit.


Remains operative even if operation not made for a particular time.

Bears no interest.

Operations generally transfer in nature.

The account opened provisionally if some particulars not finished but subject to subsequent realization to make the F/C account workable.

Both the account holder and nominee can operate the account.

First transaction normally takes place when the remittance deposited.

Entire remittance from abroad is free from income tax.

6.6 Papers/ documents required for opening the foreign currency account:

The following papers/ Documents are obtained for opening F.C account:-

Account opening form dully filled in & signed.

Photocopy of 1st seven pages pass-port & Visa.

Photocopy of the employment contract executing with the foreign employer.

Letter of authority for nominee.

Three passport size photograph of the nominee duly attested by the account holder.

Specimen signature card which is used both for the account holder and the nominee holder. Any person intending to open F.C account from abroad may send all the aforesaid papers accepting original passport duly attested by the authorised dealer in Bangladesh.


Any other printed information/ Documents if required.

6.7 Remittance Received Other Than WES:

Remittance from abroad may be received which will not be allowed wage earns benefit. These are:-

Remittance by the foreign national.

Foreign company or firm.

Bangladesh companies or farm operating business abroad.

Gift etc.


CHAPTER SEVENForeign exchange performance

Of SJIBL Agrabad branch, Chittagong


7.1 At a glance of Foreign Exchange Division of SJIBL

Particulars 2008 (Amount in Taka) 2009 (Amount in Taka)Letter of credit(Cash) 976549000 1040914000Letter of credit (inland) 162337000 200000000Letter of credit(other) 473397000 570000000Back to Back L/C 176136000 190000000Commission received 11500000 15000000Exchange earnings 8898780 10000000



7.2 Foreign Exchange performance of SJIBL, Agrabad Branch of last six months.

7.2.1 Foreign cash & Back to Back L/C opened

July August September October November December

213020200 194425050 245675720 238892534 282063756 325922740



7.2.2 Local cash Back To Back L/C opened

In SJIBL, 2009, Agrabad Branch, Chittagong. (Amount in Taka)

July August September October November December93345435 75689712 101645325 117351973 120113594 125640720



7.2.3 Total Export bill Of SJIBL Agrabad Branch, Chittagong 2009 (Amount in Taka)

July August September October November December

263062517 346512250 285014302 323047590 355583112 389590747



7.2.4 Total Export, Import &Remittanc of SJIBL, Agrabad Branch In 2009

Amount in Taka Percentage in totalImport 292,58,00,000 47.14%

Export 322,00,00,000 48.33%

Remittance 28,10,33,000 4.53%



7.3 SWOT Analysis

SOWT Analysis:-

A SWOT analysis is a modern analytical tool that can help analyze a business to examine the interaction between the particular characteristics of your business and the external marketplace in which you compete. The internal portion of a SWOT analysis looks at the individual strengths and weaknesses of SJIBL. Similarly, the external analysis looks at the opportunities presented by the marketplace and the threats that SJIBL face in market.

7.3.1 Strength


Full-functioning computerized accounts maintenance.

SWIFT is being used for foreign trade related operations like letter of credit, fund transfer, guarantee, etc with optimum security.

Easy and prompt cash transaction by introducing Money counting machine

Healthy working facility

SJIBL provide ATM debit card and nonstop banking facilities.

7.3. 2 Weakness

Very Limited number of branch network

Some officials dealing with retail products have not been as a professional as a private bank does require.

Charges of statement or certificates are very high.

High ATM transaction cost

7.3. 3 Opportunity

It has real time online banking.

New Product Innovation

Technical support to Small Industries to help them to run their business successfully.

Credit card in dual currency

Establishment of new branches to enlarge the market

provide full range of commercial banking services


7.3.4 Threats

Increasing market competitors day by day

Restless political condition in Bangladesh

Market pressure for narrow down spread

Unexpected fluctuation of currency market


CHAPTER-EIGHT

8.1 Findings

I had practical experience in SJIBL for two months; with my little experience in banking I have observed some shortcoming regrading operation & other aspects of the bank’s foreign exchange business. These shortcomings are:-

1. It has been found that some times importer wants to deffered a sight LC and forces to bank to do it which is illigel.Importer does it only for late payment for the interest of client they do it.

2. LTR or liability trust Receipt only sanctioned by Head office. Branch office does not have the right to open LTR A/C for a value client which needs more time where the Head office does


not deal with client as well. Some times it has seen that the lead time is very high.

3. At the time of LC opening, sometimes it is found that some customers are over in limit. Then banksneeds to negotiate with the client for available fund limit. Then a little hassle arises.

4. In case of Export LCs, sometimes the customers insists to give their payment through their document are found discrepent. In some cases, bank has to give payment to these customers for different reasons like political & social. But it reeduce the creadibility of the bank.

5. On thae basis of my observation margin & commission on LC varies ffrom customer to customer.

6. Swift service connection of SJIBL is not available at all.

7. The of SJIBL freign exchange department is very conjusted. So the clients is feel comford or secure at the time of passing their documents.

8.2 Recommendations:

1. I think the requirement of importers to defered a sight LC should not go ahead. Because it will hurts bank’s reputation as well as goodwill.

2. I recommend transfering the right to open an LTR credit facility to the branch office with reduces the operation time.

3. To overcome the haressment of negotiating with clients for available funds, the bank should set some plans.

4. I think the bank should be stricter as possible about giving payments against discripent. Otherwise it hurts bank’s reputation.


5. A costomer is allowed to open a L/C with nil margins. I think that the bank should asses the client’s credit worthiness time to time and according to their worthiness bank should develop a new L/C for the client.

6. SWIFT service cunnection of SJIBL must be increased.

7. The space of SJIBL, Agrabad branch, foreign exchange department should be increased. So that, the clients are feel free, comford and secure at the time of their business.

8.3 Conclusion:

It was a great pleasure for me to do my internship program in an estemmed organization like SJIBL through my practical exposure in SJIBL, Agrabad Branch, Chittagog, for just three months. It provides me wide range of scope to observe the function of bank through the cordial assistance of its members.I had the scope to observe the function of banking system specially focoused on foreign exchange business.

Banking is a dinamic business. Today is best by momentous changes in vartuall in every facet of industrial activities. By assessing the current possition of the bank , any hindrances must be seen as challenge and not as treats. Any kinds problem must be taclet wisely & couragiously. The bank should maintain a well-structured communication from upper level to lower level. Each official should be valued and treated as a part Practices of Foreign Exchange ServicePractices of Foreign Exchange Service Page 72

of the bank and they must have the privilege to devote themselves for the betterment of services of the bank.

Overall, the bank must a positive attempt to be more outward looking in their goals and aware of what is happening. They must also amphasize on the domestic scenario more closely and analyze any certain trends and strategis of their competitors. The bank must accept any failure and think of them as an objective to pursue future goals instead of blaming such failures on other factors. I hope, inspite of my all limitations, this experience of sharing works with such working environment will help me a lot in my professional life.

References

Books: Brigham, E. F., & Houston, J. F. (2011), Fundamentals of Financial

Management, 10th Edition, Ohio, USA: Thomson South Western.

International Financial Management. 7th Edition, Jeff Madura.

Kothari, C.R. (2006), “Research Methodology, Methods and Techniques”, New Age International (P) Ltd., 2nd Edition.

Nwankwo G.O. (2001), Bank Management Principles and Practice, UK: Malthouse Press Limited

Pandey, I. M. (1979), Financial Management, Vikas Publishing House Pvt. Ltd, New Delhi, pp.109-116.

Redhead, K. and Hughes, S (1998), Financial Risk Management, India: Sower Publishing Company Ltd.

Shapiro A.C (2001), Multinational Financial Management, India: Prentice Hall Private Ltd., 4th Edition.

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