Foreign Exchange Operations of BASIC Bank Limited

Foreign exchange operations Of BASIC Bank Limited
Chapter 1 Introduction
1.1: Authorization of the study:

Banking is one of the most important sectors for countrys wealth building activities. Commercial banks are certainly profit making Financial Institutions. These institutions play great role in the money market of every economy. Due to recent financial crisis (Particularly in U.S.A, G.B, EU, Japan), globalization, technological innovation and deregulation in the banking system all over the world has been changing rapidly. Now a days banks have to compete in the market place not only with local institutions but also with foreign financial institutions. The course under BBA program is designed with an excellent combination of theoretical and practical aspects. The whole course is divided into eight semesters of 6 months each. After completion of 8th semester consisting of theoretical exposure, the students are sent to different organizations to obtain some practical exposure in different sectors which would help them in taking up more professional courses in MBA. As a student of BBA, I have assigned to BASIC Bank Limited, Bangshal Branch for my practical orientation. As our program director directed us to present the report in a way that would be based on the personal observations from the department I worked in. I have described the department by the following way: 1.1.1 Understanding: In this part I have tried to be acquainted with every nook and cranny of foreign exchange section of BASIC bank Limited, Bangshal Branch. 1.1.2 Things are done here: In this part I have tried to see the things which are being done in each section, i.e.; Loans and advance section, General banking section and foreign exchange section.
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Foreign exchange operations Of BASIC Bank Limited 1.1.3 Personal observations: In this part I have tried to present my personal observations from foreign exchange section. I had an opportunity to be acquainted with the practical banking prevail in the Bangshal branch, BASIC Bank Limited. I have tried my best to show the knowledge which have been acquired in my practical orientation period. 1.2: Objectives of the study: The Prime objectives of the study are to gather practical knowledge regarding banking systems and operation. This practical orientation gives us a chance to coordinate the theoretical knowledge with the practical experience. The following are the objectives for this practical orientation in bank: To get an overall idea about the Foreign exchange Business of BASIC Bank Limited. To apply theoretical knowledge in the practical field. To help the students in taking up professional courses in the MBA program. To describe the organizational structure, management, background, functions and objectives of the bank and its contribution to the national economy. To achieve overall understanding of BASIC Bank Limited. To analyze the financing systems of the bank to find out any contributing field. To examine the profitability and productivity of the bank. To acquire knowledge about the every day banking operation of BASIC Bank Limited. To understand the real management situation and try to recommend for improving existing problems.
1.3: Schedule of internship:

Following schedules of the internship program were fixed by Manager of Bangshal Branch of BASIC Bank Limited. nd 10 May to 10th June 2010 General Banking Section 11th June to 10th August 2010 Foreign Exchange Section
Table :1.Schedule of internship. 1.4: Coverage of the study:

The report covers the following areas. Overview of BASIC Bank Limited Terms used in foreign exchange operations Foreign exchange operations of BASIC Bank Limited
1.5: Methodology of the study:

From my educational background I have learnt different methodology to collect data from different sources and analyze them. With the objective to make my report sound one, I have the opportunity to implicate my educational knowledge in practical field. I have collected data from many sources. Such as:
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5.0.1
Sources of Data
5.0.1.1 Primary Sources
Personal Interview Face-to-face conversation and in depth interview

with the respective officers of the branch. Personal observation Observing the procedure of banking activities followed by each department. Daily diary
Practical work exposures on different areas of the branch. Informal conversation with the clients or customers.
5.3.1.2 Secondary Sources
Annual report (2006, 2007, 2008 & 2009) of BASIC Bank Ltd. Periodicals Published by Bangladesh Bank. Different publications regarding Banking functions and foreign exchange
operation
Internet will also be used as a theoretical source of information. Use of different theories to make the report more relevant. Printed Materials: This study is mostly dependent on the printed
materials which may include the books, newspapers, magazines, journals, directories, annual reports, Bangladesh bank publications, BASIC Bank Ltds Annual Report etc
Internet: Internet was another major secondary source that we have used
to collect related information to conduct the study.
Newspapers: We have collected some information from the various

dailies and business articles. 1.5.2: Data analysis and Interpretation: Both quantitative and qualitative analysis will be performed on the findings. The quantitative analysis will be done on the trend of export- import, growth pattern of export-import, pre and post facilities provided for easing the
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Foreign exchange operations Of BASIC Bank Limited export-import operations. Qualitative analyses will be based on the macroeconomic variables and foreign exchange policy provided by Bangladesh bank, the central bank of Bangladesh. Different statistical tools will be used for the analysis of the findings.
1.6: Limitations of the study:

To provide current information and to make the report read-worthy, support from various sources is essential. In spite of having my wholehearted effort, I could not collect some information required at the time of the study. So this study is not free from the following limitation: Due to unavailability of latest annual report (Annual report 2009), I have to prepare the report on the basis of annual report 2008.As a result, analysis, presentation of data may not show the existing position/present condition of BASIC Bank Limited. For the whole internship I had only 90 days, out of which I get 61 days because of late commencement of internship program, which were totally insufficient. So I faced time shortage extremely. Lack of previous experience to prepare this type of report and it is totally new to me as an intern. Foreign exchange division follows Uniform Customs and Practice for Documentary Credits (UCPDC), but within this short period, I was totally stunned to understand. Learning all the banking functions within just two months was really difficult. Another limitation of this report is Banks policy of not disclosing some data and information for obvious reason, which could be very much helpful.
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Chapter 2 Overview of BASIC Bank Limited

2.1: Background of the bank The Bank of Bangladesh Small Industries & Commerce Limited (BASIC) established as Banking Company under the Companies Act 1993 on the 2nd of August, 1988, started its operations from the 21st of January, 1989. The Banking companies Act 1991 govern it. At the outset, the Bank started as a joint venture enterprise of the Bangladesh Credit Commerce (Bcc) foundation with 70 percent shares and Government of Bangladesh (GOB) with the remaining 30 percent shares. The BCC Foundation being non functional following the closure of the BCCI, the Government of Bangladesh took over 100 percent ownership of the Bank on 4 th June 1992. The bank was established as the policy makers of the country felt the urgency for a bank in the private sector for financing Small scale Industries (SSI). BASIC is unique in its objectives. It is a blend of development and Commercial Banks. The memorandum and Articles of Association of the Band stipulate that 50% of Loan able funds shall be invested in Small and Cottage industries Sector. Table 1: Banks Capital Position Authorized capital (million taka) 2000 2.2 Functions The Bank offers Term Loans to industries especially to Small-Scale enterprise. Full fledged commercial banking Service including collection of deposit, short term trade finance, Working capital finance in processing an manufacturing units and facilitating international trade. Financing & Technical support to Small Scale Industries (SSI) in order to enable them to run their enterprises successfully. Micro Credit to the urban poor trough Linkage with NGOs with a view to facilitating their access to the formal financial market for the mobilization of resources. Paid up capital (million taka) 1455.30 Total reserve & surplus up to 2010(million taka) 2468.65
*The Bank is required to transfer 20 percent of its net profit before Tax to Capital Fund as per the Banking Companies Act 1991
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Financing in import and export business like other commercial Banks. General banking facility like Certificate of Deposits, Fixed Deposits Receipts,
Savings account, Short Term Deposits, Foreign Currency Account etc are available here.
At a Glance of BASIC Bank Limited

NAME Date of incorporation Date of inauguration of operation Registered office Head Office Logo Name of the chairman of the Board Name of Managing Director Number of Branches Services provided Paid up capital Profit after tax and provision Ownership Banking software used Technology used Earnings per share E-Mail Website SWIFT Number of Authorized Dealer Table 2: At a Glance of BASIC Bank Limited 2.3 Corporate Strategy Mr.Sheikh Abdul Hye Bacchu. Mr. AKM. Sajedur Rahman. 32 Deposit scheme, Credit facility and foreign exchange services Taka 1455.30 million Taka 648.85million Government of Bangladesh CASTLETM Member of SWIFT 44.59 basicho@citechco.net www.basicbanklimited.com BKSIBDDH 15 BASIC BANK LIMITED August 2, 1988 January 21, 1989 Bana Shilpa Bhaban 73, Motijeel Commercial Area Dhaka-1000, Bangladesh. Sena Kalyan Bhaban(6th floor) 195, , Motijeel Commercial Area Dhaka-1000, Bangladesh.
Financing establishment of Small units of industries and business and facilitate

their growth. Small Balance sheet size composed of quality assets. Steady and sustainable growth.
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Investment in a cautions way. Adoption of new banking technology

2.4 Organizational Goal

To employ funds for profitable purposes in various fields with special emphasis on small-scale industries. To undertake project promotion to identify profitable areas of investment. To search for newer avenues for investment and develop new products to suit such needs. To establish linkage with other institutions which are engaged in financing micro enterprises?
2.5 Organizational Structure To achieve its organizational goals, the bank conducts its operation in accordance with the major policy guidelines laid down by the Board of Directors, the highest policy making body. The management looks after the day-to-day operation of the bank. 2.5.1 Board of Directors The Government holds 100% ownership of the bank. The Government of Bangladesh appoints all the directors of the Board. The Secretary of the Ministry of Industries is the chairman of the bank. Other directors of the bank are high government and central Bank executives. The Managing Director is an ex.-officio member of the Board of Directors. There are at present 7 directors including the Managing Directors of the Board. The present Board of Directors of the Bank consists of the following members.
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NAME OF BOARD OF DIRECTORS

As on March 31, 2009
Name & Designation of Board of Directors [1] [2] [3] Mr.Dewan Zakir Hussain Mr. Mohammad Dr. Mahbub Ahmed Chairman Mahmubur Director BASIC Bank Limited Rahman BASIC Bank Limited & & Director Joint Secretary Secretary BASIC Bank Limited Ministry of Finance Ministry of Industries & Govt. Of the Peoples Govt. of the Peoples Chairman republic of Bangladesh. Republic of Bangladesh Bangladesh Small and Cottage Industries Corporation(BSCIC) [4] [5] [6] Mr. Md.Ehsanul Mr. Mostofa Mr. Asaduzzaman Hoque Mohiuddin Khan
Director Director Executive Director
BASIC Bank Limited

Director General Chief Advisers Office
&
BASIC Bank Limited Joint Secretary

&
BASIC Bank Limited

&
Ministry of Commerce Govt. of the People Republic of Bangladesh
Executive Director Bangladesh Bank.
[6] Mr. AKM. Sajedur Rahman. Managing Director BASIC Bank Limited.
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Foreign exchange operations Of BASIC Bank Limited Head Office Dhaka. Company Secretary Mr.Md.Mesbaul Haque Company Auditor ACNABIN Chartered Accountants Table 3: Board of Directors
2.5.2 Management
The management is headed by the Managing Director. He is assisted by the General Manager and Departmental heads in the head office. BASIC is different in respect to hierarchical structure from other bank in that it is much more vertically integrated as for as reporting to the chief Executive is concerned. The Branches in charge of the Bank report directly to the Managing Director and for functional purposes, to the Head of Department consequently, quick decision making in disposal of cases is ensured. [ORGANOGRAM OF BASIC BANK]
CHAIRMAN
BOARD OF DIRECTORS MANAGING DIRECTOR
GM
GM
(Admin)
(Operation)
GM
(Audit & Inspection)
International Division
Credit Division
Establishment
DEVELOPMENT
& Branch Control
Central Accounts
Industrial Credit Division
Personal Division
Deputy General Manager

Assistant General Manager.
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Manager Deputy Manager Assistant Manager Senior Officer Officer Assistant Officer
Clerical Staff:
Banking Staff Go-down Staff
Non-Clerical Staff: Messenger Staff Security Staff
2.6 Resource & Capabilities

BASIC is well prepared to and capable of meeting the demand for a broad range of banking services. It has got adequate resources, both human and physical, to provide the customers with best possible services.
2.6.1 Physical and Technological Resources

A great deal of investment for devolving the physical resource base of the bank has been made. BASIC has its presence in all the major industrial and commercial hubs of Bangladesh in order to cater the needs of industry and trade. At present, there are Thirty two conveniently located branches throughout Bangladesh. There are 11 branches in the capital city of Dhaka, 7 in Chittagong and one each in Narayangonj, Narshingdi, Rajshahi, Saidpur, Bogra, Khulna, Jessore, Sylhet, Moulivibazar, Barisal, Comilla, Gazipur, Sirajgonj and Dewanghat. Major features of these branches:
Fully computerized accounts maintenance. Well-decorated and air-conditioned facilities. A fully operational computer network, which is currently being implemented. The work of LAN and WAN installation to facilitate fast communication between
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Foreign exchange operations Of BASIC Bank Limited the branches and the head Office is in progress to facilitate any Branch Banking and ATM Services.
Money counting machine for making cash transaction easy and prompt. Fifteen out of thirty two branches are authorized dealers of foreign exchange. This facilitates speedy disposal of transaction of export and import trade.
2.6.2 Human Resources

BASIC has a well-diversified pool of human resource, which is composed of personnel with high academic background. Also, there is a positive demographic characteristic. Most employees are comparatively young in age yet mature in experience. As at end 2008 the total employee strength was 735l. The Bank follows a strict recruitment policy in order to ensure that only the best people are recruited. The Bank, so far, has recruited four batches of entry-level management staff, all of whom have got excellent academic background. The number of employees has increased gradually to 601, 651, 721,735 and 776 at the end of 2005, 2006, and 2007 ,2008,2009 respectively. Table 4: Employee progress of BASIC Bank Limited YEAR 2005 2006 2007 Number of 601 651 721 Employees 2008 735 2009 776
Figure 1: Employee position of BASIC Bank limited
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2.6.2.1: Recruitment The Bank follows a strict recruitment policy in order to ensure that only the best people are recruited. The bank, so far, has recruited four batches of entry-level management staff, all of who have got excellent academic Background. 2.6.2.2: Training Intensive training program, on a regular basis, is being imparted to employees of both management and non-management levels to meet the challenges in the banking industry and to help employees to adapt the changes and new working conditions. Human resource is the main driving force and quality human resources are the key sources for the success of today's banking business. Keeping this view in mind and recognizing the importance of training for professional excellence BASIC Bank Ltd. has established its own training cell in 2005 with modern facilities.
2.6.3 Financial Resources

Like any other financial intermediaries, BASIC is no exception in performing its core function viz. Mobilization of fund and utilizing such mobilized fund for profitable purposes. 2.6.3.1 Mobilization of Funds The main sources of fund for BASIC are: 1) Deposit 2) Borrowing (1) Deposit: Deposit is the mainstay of BASICs sources of fund. Following usual practices, it collects deposit through: Current Deposit Saving Deposit Fixed Deposit Others (Margin A/c, Retention quota A/c etc.)
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Figure 2: Deposits mix of BASIC Bank Limited in 2007 (2) Borrowing for Development Finance: Apart from deposit BASIC received funds from the following sources: Bangladesh Bank. Asian Development Bank. KfW (Kreditanstalt fur Wieder-aufbau- Credit Institution for Reconstruction), a German Development Bank. All of these funding sources fund are for relatively longer period. Receiving the credit lines from ADB and KfW has been recognition of BASICs highly satisfactory performance. Table 5: Borrowing for Development Finance (Taka In million) Year 2006 2007 2008 Amount 830.06 1385.81 1708.40 2.6.3.2 Utilization of Funds Utilization of banks fund was more of less satisfactory during the year 2007. Given the difficult economic situation, the management of bank focused on the consolidation and quality of assert rather than in growth. The total assets of the Bank increased to Taka 38,773.91 million at end 2007 from Taka 29,417.09 million in the previous year. The growth rate was 31.81 percent. Deposit rose from Taka 31,947.98 million (82.40% of total liabilities) in 2007 to Taka 24,084.65 million (81.87% of Total liabilities) in 2006 showing a growth rate of 32.65 percent. 267.3.2.1: Banks Assets 2009 2875.16
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Foreign exchange operations Of BASIC Bank Limited During the year 2009, total assets of the bank decreased by 2.87percent to Taka 45,308.31 million from Taka 46,651.53 million in 2008.This decrease of assets caused for withdrawal of deposits of BTRC Taka 3,897.24 million over the year.The deposits of BTRC reduced to Taka 2,121,54 million at the end of 2009 from Taka 6,018.78 million at the year 2008.As expected,loans & advances comprised the largest share in the assets portfolio of the Bank constituting 64.03% Balance sheet of BASIC Bank Limited as on December, 31, 2009
BASIC Bank Limited Balance Sheet (Partial) As on 31.12.2009 Particulars Property and Assets Cash Balance with other Banks and financial institutions Money at call and short notice Investments Loans And Advances: Fixed Assets including premises: Other Assets: Deferred Tax Assets Non-Banking Assets Total assets Amount (BDT) 2424.89 59061.78 180.00 63338.73 29261.53 232.66 964.33 14.25 45308.32 100% %
Table 6: Balance sheet as on December, 31, 2009 2.7Performance of Bank The performance of BASIC has been satisfactory since its inception in respect to all the measurement parameters, a good year for the Bank again. It performed fairly in 2009in spite of severe competition in the banking sector of the country. The Board of Directors was happy with the overall performance of the Bank, particularly for maintaining quality of assets and improving shareholders value. During the year 2009, total assets of the Bank stood at Taka 45,308.31 million against Taka 46,651.53 million in 2008 registering a decreased by 2.87%.This decreased of assets caused for withdrawal of deposit of BTRC Taka 3,897.24 million over the year. As expected for a bank, loan and advances comprised the largest share in the assets portfolio of the Bank constituting 64.03% .Investment & Balances with other banks and financial institutions were the second & third largest constituents being 13.87% & 12.92% of the assets portfolio respectively.Money at call and short notice were 0.39% of total assets.. Performance and position of BASIC Bank Limited are shown in the next page. 2.7.1 Dividend
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In the year 2009the Bank declared 7 bonus share against each 20 shares amounting to Tk.509.36 million subject to approval of the Bangladesh Bank.
BASIC Bank Limited Head Office, Dhaka

BUSINESS POSITION OF BASIC BANK LTD AT A GLANCE
Table 7:
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BASIC BANK LIMITED GROWTH AT A GLANCE
(Taka in million)
SI.
# 1 01. 02. 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22
Particulars
2 Paid Up Capital Total capital Capital surplus/(deficit) Total Assets Total Deposits Total loans & Advances
Total contingent liabilities & commitments Credit-deposit ratio Percentage of classified loans against total loans and advances Profit after tax and 648,853,399 provision Amount of classified 1,421,346,629 loans and advances Provision kept against 523,394,422 classified loan Provision surplus / _ (deficit) Cost of funds 7.58% Interest earning assets 40,172,871,71 6 Noninterest bearing 5,135,444,209 assets Return on investment 12.67% Return on Assets .1.41% Incomes on Investment 761,821,420 Earnings per share Net income per share Price earning ratio 44.59 44.59 N/A
Position as Position as on on 2009 2008 3 4 1,455,300,000 1,309,770,000 4,293,562,623 3,374,923,929 1,108,492,823 568,128,029 45,308,315,92 46,651,534,174 5 34,501,698,26 38,368,237,432 5 29,261,534,34 27,269,131,180 2 16,069,084,64 10,808,780,318 3 84.81% 71.73% 4.83% 4.59% 549,953,737 1,251,209,878 415,840,591 _ 8.36% 44,004,968,114 2,646,566,060 9.81% 1.30% 674,076,716 37.79 37.79 N/A
Position as on 2007 5 1,247,400,000 2,947,858,896 663,726,896 38,773,905,83 6 31,947,979,10 1 22,263,349,60 8 10,189,525,37 3 69.69% 3.25% 282,965,086 723,233,815 436,543,180 _ 8.31% 35,046,030,90 0 3,727,874,936 7.89 % .83 % 206,480,219 22.68 22.68 N/A
Position as on 2006 6 945,000,000 2,489,523,909 619,126,000 29,417,094,939 24,084,659,391 19,000,004,688 8,579,394,196 78.89% 3.70% 554,138,494 703,269,923 323,218,141 _ 6.77% 26,469,275,536 2,947,819,403 5.78 % 1.94 % 225,733,106 58.64 58.64 N/A
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2.8: Orientation of BASIC Bank Limited, Bangshal Branch:

BASIC Bank Limited, Bangshal Branch is located in 230, North south road, Bangshal, Dhaka-1000. The branch consists three divisions (General banking, Loans and Advances and Foreign Exchange) and I worked in Foreign Exchange division. The In-charge of the branch is Assistant General Manager and the lower rank is assistant officer. The positional hierarchy of BASIC Bank Limited, Bangshal Branch is given bellow: Deputy General manager (1) Assistant General Manger (1) Manager (3) Assistant Manager (7)
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Foreign exchange operations Of BASIC Bank Limited Officer (6) Assistant Officer (1) Staff (5)
Graphical Presentation
Figure 3: Combination of Deposits & loans and Advances
Figure 4: Gross income & Expenditure
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Figure 5: Amount of profit before & after tax
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Foreign exchange operations Of BASIC Bank Limited Figure 6:Year-wise Loan portfolio
Figure 7: Core capital position of BASIC Bank Limited.
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Figure 8: Classified loan during 2007
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Chapter 3 Terms used in foreign exchange operations

Foreign exchange, like foreign trade, is a part of economic science. It deals with the means and methods by which rights to wealth in one countrys currency are converted into those of another country. By the same token, it covers the methods used for conversion, the forms in which such conversions take place and the causes which render this conversion necessary. Foreign Exchange means exchange foreign currency between two countries. If we consider Foreign Exchange as a subject, then it means all kind of transactions related to foreign currency. In other words foreign exchange deals with foreign financial transactions.
Activities of Foreign Exchange:

There are three kinds of foreign exchange transactions: Import
Export Remittance
3.1 Import:
Under the import policy of Bangladesh the Importer has get the valid Import Registration Certificate (IRC) from the Chief Controller of Import & Export (CCI&E). 3.1.1 Letter of credit:Letter of credit (L/C) means its an undertaking by issuing bank on behalf of the buyer/applicant/impoter to pay certain amount at the seller/beneficiary/exporter s for performing certain activitics(transaction/purchase) under some agreed condition. Types of documentary credit: Documentary credit may be of three types-
Recoverable credit Irrecoverable credit Add confirmed credit
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3.1.2 Recoverable credit: This type of credit can be cancelled or amended at any time by the issuing Bank without prior notice to the seller. It is not in use. 3.1.3 Irrecoverable credit: This type of credit cant be cancelled or amended by the issuing Bank without agreement of parties concerned thereto. All the credits issued in our country are of recoverable nature. 3.1.4 Add confirmed credit: When a third Bank provides guarantee to the beneficiary to make payment, if issuing Bank fail to make payment, the L/C is called confirmed L/C. In case of a conformed L/C a third Bank adds their confirmation to the4 beneficiary, to make payment, in addition to that of issuing Bank. Confirmed L/C gives the beneficiary a double assurance of payment. 3.1.5 Special documentary letters of credit: The following five major steps are involved in the operation of a documentary letter of credit: Opening Advising Amendment Presentation Settlement 3.1.6 Import Financing: The post import finance extends the import credit in the following forms:
PAD (Payment against documents) LTR (Loan against trust receipt) LIM (Loan against imported merchandise 3.2 Export:
Under the export policy of Bangladesh, the exporter has to get the valid export registration certificate (ERC) from chief controller of export & import (CCI&E). The ERC is required to renew every year. The ERC number is to be incorporated on export Form & other paper connected with exports.
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3.2.1 Receiving the letter of credit: After getting contract for sale, exporter should ask the buyer for L/C clearly starting terms & condition of export & payment. 3.2.2 Procuring the materials: After knowing that the L/C has opened in his favor, the next step for 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 (local or abroad) he has to open Back-to-Back L/C. 3.2.3 Back-to-Back L/C: Back-to-Back L/C is one type of L/C, which is opened against lien on a valid export L/C. It is opened for inland & abroad as well. Bank will supply the following papers/documents for opening a Back-to-Back L/C. L/C application form LCA form IMP form Charge document papers
The above papers must be completed, filled & signed by the party thereto. The party will submit the entire filled document along with application in printed form of the designated Bank which is also an agreement between application & the Bank. 3.2.4 Export Financing: An export is who exports the goods to another customer whether in domestic country or in abroad. In exporting the stipulated goods he may require financing. So export financing may be required at two stages. Pre shipment credit Post shipment credit
3.2.4.1 Pre shipment credit: Pre shipment credit is the credit, which is given to finance the export activities of an exporter for the actual shipment of goods. The purpose of each credit is to meet the working capital needs from the procuring of raw materials to the transportation of goods for the export the foreign country. Before sanctioning of that credit the Bank
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Foreign exchange operations Of BASIC Bank Limited takes into consideration the credit worthiness, export performance of the exporters together worthiness all other information required for sanctioning the credit in accordance with the existing rules & regulations. 3.2.4.2 Post shipment credit: There is a time gap between export of the goods and realization of the proceeds. So exporter may require finance in that period to continue his business. So Bank may finance against export documents ensuring the following: Export documents comply with the credit terms Partys past performance is satisfactory Any other security in case of exporting under contract
3.3 Foreign Remittance:

Foreign remittance means remittance of foreign currencies from one place/person to another place/person. In broad sense, foreign remittance includes all sale and purchase of foreign currencies on account of Import Export, Travel and other purposes. However, especially foreign remittance means sale & purpose of foreign currencies for the purposes other than export and import. BASIC Bank Limited performs the remittance function with different countries. It maintains the foreign remittance in the following form:
Foreign Demand Draft Inward Outward

3.3.1 Foreign Demand Draft (FDD): A foreign demand draft is a negotiable instrument issued by a Bank drawn on other Bank with another country the instruction to pay a certain amount to the beneficiary on demand. Remittance through demand draft may be inward or outward. 3.3.2 Inward Remittance: Inward remittance refers to the extent where the bank makes payment to the client against foreign demand draft. Bank will make payment to the client by verifying the, test number, and signature of the authorized officer. 3.3.3 Outward Remittance: It refers to the extent where by the bank issues foreign demand draft. The bank charges TK.300 per Demand Draft.
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Foreign exchange operations Of BASIC Bank Limited Two forms are used for Outward Remittance of foreign currency such as: IMP Form: All outward remittance on account of Imports is done by from IMP. TM Form: For all other outward remittance from TM is used.
Chapter 4 Foreign exchange Operations 4.1: Introduction:

The foreign exchange has played a vital role in the last decade or so in guiding the purchase and Sale of goods, services and raw materials globally. Every country has certain natural advantages and disadvantages in producing certain commodities while they have some natural disadvantage as well in other areas .As a result, we find that some countries need to import certain commodities while others need to export their surpluses .Foreign trade brings the fruits of the earth to the homes of the humblest among the countries .These transactions are the basis upon which international trade is made. As more than one currency is involved in foreign trade, it gives rise to exchange of currencies, which is known as Foreign Exchange .The term Foreign exchange has three principal meanings .Firstly, it is a term used referring to the currencies of other countries on terms of any single one currency .To a Bangladeshi, Dollar, Pound Sterling, etc. are foreign currencies and as such foreign exchanges. Secondly, the term also commonly refers to some instruments used in international trade, such as bill of exchanges, drafts, travelers cheques and other means of international remittance. Thirdly, the term foreign exchange is also quite often referred to the balance is foreign currencies held by a country. In the fiscal year 2007-2008, Bangladesh economy was confronted with serious challenge, among others, the impact of divesting floods, the excessive price hike of oil, global financial crisis and some other importable in the international market, in addition to the termination of the multi fiber arrangement (MFA). To cope with these challenges, the government and the Bangladesh Bank adopted a series of policies to enhance the resilience of the economy, while maintaining macro economic stability. These polices significantly
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Foreign exchange operations Of BASIC Bank Limited contributed toward maintaining real Growth Rate of Bank 5 percent in the fiscal year 2007-2008. Again, Foreign Exchange deals with the means & methods by which rights to wealth in one country's currency are converted into those of another currency. It is a part of economic science of foreign trade. By the same view, it covers the methods used for conversion, the forms in which such conversions take place and causes which render these conversions necessary. In Bangladesh, we have the unit of money is 'Taka' for domestic transaction; also have other obligations by exchanging foreign currencies. To meet-up the obligation that arise import of goods & services from other countries, other foreign necessity, that part of the economic science, which deals with the conversion of domestic currency into foreign currency for the purpose of setting international obligations, is called Foreign Exchange. There are three types of modes of foreign exchange market, which are as follows:
Export Finance Import Finance Foreign Remittance Foreign trade finance:

So far the bank has established correspondence relationships with as many as 22 foreign banks in order to facilitate foreign trade. The Bank handled total export business of Taka19887.7 million and import business of Taka 33976.6 million in 2009. The Banks import business grew by 80.53 percent and export falls at 89.30 percent respectively. Major items of exports were ready made knit & woven garments, sweater, jute products, leather and leather goods, handicrafts etc. Items of import included mainly industrial raw materials, garments accessories, and capital machinery, raw cotton, electronic consumer goods, chemicals, tyres and tubes, reconditioned vehicles, bicycle spare parts, food items such as rice, wheat, garlic, onion, sugar, chilly,flat rolled product of iron or non alloy steel and other essential commodities.
4.1.1: EXPORT FINANCE:

In case of export business finance is perceived as one of the important elements. It is linked to nearly all the stages of conversion cycle- procurement of raw materials, processing of goods, packing storage, transportation to the port, shipment to the buyer, assembling of shipping documents & finally, collection of payments. The term Export
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Foreign exchange operations Of BASIC Bank Limited Finance should therefore mean moneys needed by an exporting farm at each stage of the conversion cycles.
4.1.1.1: Export financing sectors of BASIC Bank Limited:

Export financing can play a vital role in the development process of Bangladesh. With earning on export we can meet our import bills. The export trade is always encouraged because the major portion of foreign exchange earning is derived from export. Because of shortage of adequate capital exporters have to come in contact with commercial bank and financial institution to get finance from them. BASIC bank Limited as a state-owned scheduled bank provides certain facilities to the exporters to boost up export earnings. The traditional & non-traditional sectors in which BASIC Bank Limited provides export-financing facilities are as follows: Ready Made Garments in all sorts. Jute manufactures Fish & Prawns. Hides, Skins & Leather. Fertilizer ,tea etc.
4.1.1.2: Export financing system of BASIC Bank Limited:

Bangladesh as a developing country depends mainly on foreign exchange earning for its development activities. The major portion of foreign exchange earnings is derived from export obviously, to boost export, government provide certain incentives to the exporters namely: Export Financing Development Financing Export Credit Guarantee Scheme Export performance benefits Duty draw back Rebate on duty & tax Income tax rebate Insurance premium rebate Conditional cash subsidy to Garments Industry , vegetables, handicrafts etc
4.1.1.3: PRE-SHIPMENT & POST-SHIPMENT:

In BASIC Bank Limited export finance is required by the exports at two stages namely Pre-shipment & Post-shipment stages:
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Foreign exchange operations Of BASIC Bank Limited Pre-shipment: It is required to purchase of raw materials, to meet cost of production, procurement of exportable goods, packing, transport, payment of insurance premium, inspection fee, freight charges, ware housing etc. 2. Post-shipment: It is required by the exporters after actual shipment of goods in order to bridge the period between shipment of the goods and receipts of sales proceeds from abroad. An exporter owns resource may not be adequate to meet all such expenses. So he / she has to come in contact with commercial bank and financial institutions to get finance from them. As a state owned scheduled bank BASIC Bank Limited provides credits to exporters at a consideration rate of interest as an export promotion measure as per government directive. 1.
4.1.1.4: PRE-SHIPMENT FINANCING OF FOREIGN EXCHANGE:

The classes of pre-shipment financing extended to the exporters by the BASIC Bank Limited are as follows: 4.1.1.4.1: Export Cash Credit - Pledge: This facility is allowed for a short period. Under this credit the exportable goods are kept under the effective control of bank either at exporter's go down or bank own go down. 4.1.1.4.2: Export Cash Credit - Hypothecation: This advance is allowed for a short period or 3 to 6 months mainly to purchase raw materials or for procurement of exportable goods.
:Bank only deals with documents:Documents & Security to be obtained for this purposes
are-
Export registration certificates (ERC) Bank usually charge documents to be signed by exporter or his / her duly authorized agent. Confirmed irrevocable export letter of credit or firm contract made by the buyer with the exporter. Insurance coverage Collateral securities. 4.1.1.4.3: Packing Credit: This facility is generally extended when the goods become ready for shipment for a very short period usually from the date of dispatch of the stock from the go down up to the date of actual shipment of the goods that is for the transit period of shipment for further purchase of raw materials or procurement of exportable goods by exporter.
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Foreign exchange operations Of BASIC Bank Limited 4.1.1.4.4: Back to back letter of credit: Pre-shipment facilities are also credited in the form of back to back letter of credit.When the beneficiary of an export letter of credit is not the actual manufacturer or producer of exportable goods mentioned in the relative export letter of credit as securities with his/her banker for procurement of exportable goods to enable him/her to execute the export letter of credit and such letter of credit is called inland back to back letter of credit.
4.1.1.5: POST-SHIPMENT FINANCING OF FOREIGN EXCHANGE:

Post shipment financing refers to the credit facilities extended to the exporters by BASIC Bank Ltd after actual shipment of the goods against export documents. BASIC Bank Ltd generally finance the exporters at post shipment stage after verifying the credit worthiness and export performances of the exporters as well as the reputation and financial soundness of the foreign buyers provided the shipping documents are drawn strictly in accordance with letter of credit terms and in accordance with foreign exchange regulation in force.
Post shipment financing is extended to the exporters by the following terms: Negotiation of export documents under letter of credit. Purchase of askance bills drawn on D. A. basis. Providing loan against export bills tendered collection. Discounting of export bills. 4.1.1.7: Export Development Fund:
The main objective of creating an export development fund at the Bangladesh Bank is to assure a continued availability of foreign exchange to meet the import requirement of non-traditional manufactured items, this facility is available to the non-traditional exporters, particularly newer exporters, exporters diversify into higher value export and exporters diversify into new markets. An exporter identified above is eligible on the basis of the conditionally stated below: -
One must be an exporter of non-traditional manufacturing items. The value added of these products could be 20% except in the case of garments where it
has to be 30% & above.
The loan should be utilized in the case of importing raw materials for manufacturing the
exportable products.
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The exporter must have an export letter of credit. One must create a back-to-back for importing raw materials. The period of loan is 180 days. 4.1.1.8: Scrutiny of Export Document:
After the shipment of goods the exporters submit export documents to authorized dealer for negotiation of the same. As bankers deal with documents only, not with commodity they are required to be very much careful about the genuineness and correctness of the documents evidencing shipment of the respective commodities. The bankers are to ascertain that the documents are strictly as per the terms of letter of credit. Before negotiation of the export bill, the bankers are to scrutinize and examine each & every document with great care. Negligence in the part of the bankers may result in non-repatriation or delay in realization of proceeds as incorrect documents may put the importers abroad into unnecessary troubles. The scrutiny procedure is as follows:
II III IIII IVI VI
Scrutiny of Draft or Draft of Exchange. Scrutiny of invoice. Scrutiny of shipping bill. Scrutiny of Insurance. Scrutiny of other documents.
4.1.2: IMPORT FINANCE:

All over the world there is no country, which can meet its requirements from its own sources. Some imports raw materials, some finished goods & some food products or other commodities. As it is in export & import are invariably conducted through commercial banks. BASIC Bank Limited is engaged to extend the facilities to the importers. After getting the completed registration, application for opening letter of credit is made through a bank where applicant has a current account. An importer is required to fill up import application form & letter of credit authorization form (LCAF) & importer has to deposit margin money to the bank from 5% to 40% of the import value, depending on the credibility of the importer. After the letter of credit is established the exporter after executing the export, submits the negotiable document through its bankers and in terms of exporters bank submit the documents to the corresponding bank of the importer's bank in the country. If the documents are found correctly fulfilling all the terms & conditions stipulated in the letter of credit the
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Foreign exchange operations Of BASIC Bank Limited corresponding bank of import's bank will realize payment that will debited to the importer's account. In banking term this is known as PAD and the importer has to pay the PAD amount in 30 days with the bank interest rate@13%. After 30 days when importer is unable to pay the PAD amount, he can take documents but the PAD turns into Loan against Trust Receipts (LTR)
4. 2.1.1: Import financing sectors of BASIC Bank Ltd:

BASIC Bank Limited is one of the financers of import business in our country. In extend credit, grant and other facilities BASIC Bank Ltd finance to the following sectors:
Machinery & transport equipment. Petroleum & petroleum products Textile, yarn, fabrics, article & related products Chemicals Bicycle parts Iron & steels. 4.2.1.2: Import financing system of BASIC Bank Limited:
Document to be needed are Registration of import Income tax registration certificate
Partnership deed in the cases of partnership concern Certificate of registration with the register of joint stock companies Articles & Memorandum of association in the case of limited companies. Nationality certificate & Bank certificate Ownership documents in place of business Trade license from the relevant authority. Survey clearance from the relevant authority Other documents prescribed in the import policy. 4.2.1.3: Import Registration Certificate (IRC):
In case of import, IRC is the first necessity for the importer. The IRC is not required for import goods by government departments, Local authorities, statutory bodies, recognized educational institutes, Hospitals. In addition, registration is not required for import goods, which do not involved remittance of foreign exchange like -medicine, reading materials etc. can be imported without IRC by the users within monetary limit.
4.2.1.4: IMPORT PROCEDURE:
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Imports & Exports (control) Act 1950 regulates the import & export trade of the country. There are a number of formalities, which on 'importer has to fulfill before import goods. The importer follows the following steps:
The buyer & the seller conclude a sales contract provided for payment by
documentary credit.
The buyer instructs his / her bank i.e. issuing bank to issue a credit in favor of the seller i.e.
beneficiary.
The issuing bank asks another bank usually in the country of the seller, the advice or
confirms the credit.
The advising or confirming bank informs the seller that the credit has been issued. As soon as the seller receives the credit and is satisfied that he / she can meet its terms &
conditions, he/she are in a position to load the goods & dispatch them.
The seller then sends the documents evidencing the shipment to the bank where the
credit is available i.e. the nominated bank. This may be the issuing bank, or the confirming bank, bank named in the credit as the paying, accepting or negotiating bank.
The bank if other than the issuing bank, sends the documents to the issuing bank, The issuing bank checks the documents and if they meet the credit requirement either Affect payment in accordance with the terms of the credit either to the seller if
s/he has sent the documents directly to the issuing bank or to the bank that has made funds available to him/her in anticipation. Or
Reimburses in the pre-agreed manner the confirming bank or any bank that has paid,
accepted or negotiated under the credit.
The bank checks the documents against the credit. If the documents meet the
requirements of the credit, the bank then pay, accept or negotiate accordingly to terms of credit. In case of a credit available by negotiation, issuing bank or the confirming bank will negotiate with recourse; another bank including the advising bank has not confirmed the credit, which negotiates will with recourse.
When the documents have been checked by the issuing bank and found to meet the
credit requirements, they are released to the buyer upon payment of the amount due or upon other terms agreed between importer & the issuing bank.
The buyer sends transport documents to the carrier who will then proceed to deliver
the goods.
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4.2.1.5: IMPORT SCRUTINY:As we know bank only deals with dpcuments sothe import bills consist of the following documents & the order of their scrutiny should be as below: Forwarding schedule of negotiating bank. Bill of exchange. Commercial Invoice (Before shipment). Bill of lading Insurance cover note Certificate of origin Packing List PSI Report (CRF- Clean Report of findings) Pro-forma Invoice (After shipment) Any other documents.
Lodgment:
a) Intimation should be given to the party in time. b) Conversion of foreign currency in to Bangladesh Currency. c) Entry in PAD (payment against document) register d) Entry in Letter of Credit opening register by rounding the letter of credit number with date. e) Scrutinize the shipping documents meticulously. f) Inform the importer to deposit balance amount of letter of credit and to release the necessary documents. g) Enter the shipping documents in inward foreign bills register.
4.2.1.6: Import Bills Retirement:

) Banker will prepare & pass retirement vouchers. ) Importer will deposit the claim amount. ) Certifying Invoices. ) Passing & prepare the vouchers. ) Entry in the register. ) Endorsement in the Bill of Exchange and Transport documents i.e. Bill of Lading; T.R. etc. ) Accounting treatment of voucher passing: Party's A/C ..............................Dr. Margin on import A/C. ................Dr. PAD A/C.Cr.
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Foreign exchange operations Of BASIC Bank Limited Interest & other charges A/C.................Cr. ) At the end of the total procedure, taking the retirement of import bills or clearing certificate from the bank, the importer will clear the goods from the port through the clearing & forwarding agent. ) On the other hand, completing the above all steps the issuing bank will prepare "foreign exchange transaction schedule" and send one copy to international division of Head Office and another one copy to reconciliation.
4.2.1.7: DOCUMENTS USED IN FOREIGN EXCHANGE: Letter of Credit (L/C):

It is the most important and commonly used in connection with foreign trade. Letter of Credit is an undertaking by a banker of the importer to the exporter, to the effect that the amount of the L/C will be duly paid. The banker on behalf of the importer issues the L/C in favor of the exporter (beneficiary) and forwards the same to the exporter to the effect that the bill drawn by him shall be duly accepted and paid. It creates confidence in the mind of the exporter so far as payment of the bill is concerned. It is also facilitate the exporter to get the benefit of discounting the bill before the date lf maturity.
Bill of Exchange:
A Bill of Exchange is an instrument in writing, containing an unconditional order, signed by the maker, directing a certain person to pay on demand or on fixed or determinable future time a certain sum of money only to or to the order of a certain person or to the bearer of the instrument. From the definition - we get the features of bill of exchange. In generally there are three parties like- Drawer: The person who prepare the bill; Drawee: The person who is ordered for the payment in future specified time; Payee: The person who is the amount of bill receiver as per the order of the drawer to the drawee.
Bill of Lading:
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Foreign exchange operations Of BASIC Bank Limited A bill of lading is a document that is usually stipulated in a credit when the goods are dispatched by sea. It is evidence of a contract of carriage, is a receipt for the goods, and is a document of title to the goods. It also constitutes a document that is, or may be, needed to support an insurance claim. The detail on the bill of lading should include:
A description of the goods in general terms not inconsistent with that in the credit. Identifying marks & numbers (if any). The name of the carrying vessel. Evidence that the goods have been loaded on broad. The ports of shipment & discharge. The names of shipper, consignee and name & address of notifying party. The number of original bills of lading issued. The date of issuance.
A bill of lading specifically stating that goods are loaded for ultimate destination specifically mentioned in the credit. Commercial invoice: A commercial invoice is the accounting document by which the seller charges the goods to the buyer. A commercial invoice normally including the following information: Date Name & address of buyer & seller. Order or contract number, quantity & description of the goods, unit price and the total price. Weight of the goods, number of packages and shipping marks & number. Terms of delivery & payment. Shipment details.
Certificate of origin of goods:

A certificate of origin is a signed statement providing evidence of the origin of the goods.
Inspection certificate:
This is usually issued by an independent inspection company located in the exporting country certifying or describing the quality, specification or other aspects of the goods, as called for in the contract and / or the letter of credit. The buyer who also indicates the type of inspection usually nominates the inspection company he /she wish the company to undertake.
Insurance policy or Certificate:

The insurance certificate document must:
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Foreign exchange operations Of BASIC Bank Limited Be specified in the credit Cover the risks specified in the credit. Be consistent with the other documents in its identification of the voyage and description of the goods. Unless otherwise specified in the credit: a) Be a document issued and / or signed by an insurance company or its agent, or by underwriters. b) Be dated on or before the date of shipment as evidenced by the shipping documents or establish that cover is effective at the latest from such date of shipment. c) Be for an amount at least equal to the GIF value of the goods and in the currency of the credit.
Pro-forma invoice or indent:

Simply speaking, it is a Seller's quotation or agreement between seller & buyer. In this-the seller declared the rate, quantity, quality, manufacturing & other information about goods and that accepted by buyer. .
Other Documents are: Packing list; Master's receipt.
1. DOCUMENTARY CREDIT:
In simple terms a documentary credit is conditional bank undertaking of payment. Expressed more fully, it is written undertaking by a bank (Issuing Bank) given to the seller (Beneficiary) at the request and in accordance with the instructions of the buyer (applicant) to effect payment (i.e. by making a payment or by accepting or negotiating bills of exchange) up to a stated sum of money, within a prescribed time limit & against stipulated documents. These stipulated documents are likely to include those required those required for commercial invoice, certificate of origin, insurance policy or certificate and bill of lading or combined transport document. There are various types of documentary credits. A revocable credit can be amended or cancelled at any time without prior warning or notification to the seller.
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Foreign exchange operations Of BASIC Bank Limited An irrevocable credit can be amended or cancelled only with the agreement of all parties. As there are often two banks involved the issuing bank & the advising bank, the buyer can ask or an irrevocable credit to be confirmed by the advising bank. If the advising bank agrees, the irrevocable credit becomes a confirmed irrevocable credit. There are four types of documentary credits according to payment methods: 1. Sight credit 2. Acceptance credit 3. Cash credit 4. Deferred payment credit
2. DOCUMENTARY LETTER OF CREDIT:

The documentary Letter of Credit is an arrangement where by a bank (issuing bank) acting at the request of a customer (applicant of the Letter of Credit): a) To make payment to or to the order of other person (the beneficiary) or to pay accept or negotiate Bill of Exchange (Drafts) drawn by the beneficiary. b) Authorizes such payment to be made or such drafts to be paid, accepted or negotiated by another bank against stipulated documents, provided the terms & conditions of the Letter of Credit are complied with.
Procedure of documentary credit:
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Seller
Advising / Confirming Bank
Issuing Bank
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Details of the diagram:

a) b) c) d) e) f) The buyer & the seller conclude a sales contract providing for payment by documentary credit. The buyer instructs his / her bank i.e. issuing bank to issue a credit in favor of the seller i.e. beneficiary. The issuing bank asks another bank, usually in the country of the seller, to advice or confirms the credit. The advising or confirming bank informs the seller that the credit has been issued. As early as possible the seller receives the credit & is satisfied that he / she can meet its terms and conditions, he / she is in a position to load the goods and dispatch them. The seller then sends the documents evidencing the shipment to the bank where the credit is available in bank. This may be the issuing bank, or the confirming bank, or any bank named in the credit as the paying, accepting or negotiating bank, or it may be the advising bank or any bank willing to negotiate under the credit. The bank checks the documents against the credit. If the documents met the requirements of the credit, the bank will pay, accept, or negotiate according to the terms of the credit. In case of a credit available by negotiation, the issuing bank or the confirming bank will negotiate without recourse. Any other bank including the advising bank if it has not confirmed the credit, may negotiate, same for payment. The bank if other than the issuing bank sends the documents to the issuing bank The issuing bank checks the documents and if they meet the credit requirements, either Effects payment in according with the terms of the credit, either to the seller if he / she have sent the documents directly to the issuing bank or to the bank that has made funds available to him in anticipation. Or Reimburses in the pre-agreed manner the confirming bank or any bank that has paid, accepted or negotiated under the credit. When the documents have been checked by the issuing bank and found to meet the credit requirements, they are released to the buyer upon payment of the amount due, or upon other terms agreed between him / her & the issuing bank. The buyer sends the transport document to the carrier who will then proceed to deliver the goods.
g)
h) i)
j)
k)
4.2.1.9: LETTER OF CREDIT (L/C):

Letter of Credit is an undertaking by a banker of the importer to the exporter, to the effect that the amount of the L/C will be duly paid. The banker on behalf of the importer issues the L/C in favor of the exporter (beneficiary) and forwards the same to the exporter to the effect that the bill drawn by him shall be duly accepted and paid. It creates confidence in the mind of the exporter so far as payment of the bill is concerned. It is also facilitate the exporter to get the benefit of discounting the bill before the date lf maturity.
4.2.1.9.1: Parties of Letter of Credit transaction:

Issuing Bank: It is the buyer's bank. The bank that agrees to the request of the applicant and issues its letter of credit in terms of the instructions of the applicant. Advising Bank: It is the seller's or beneficiary's Bank. The bank usually situated in the seller's or beneficiary's country (most of the time with which there exists corresponding relationship with the buyer or issuing bank), request to advice the credit to the beneficiary. Confirming Bank: Sometimes issuing bank request advising bank or another bank to add confirmation to the letter of credit. When that bank do this then such bank is called confirming bank. So advising bank can be act as confirming bank. Reimbursing Bank: This is the bank that is nominated by the issuing bank to pay (it is also known as paying bank) or to accept drafts. It can be situated in another country. In this connection it is to say that American Express Bank & HSBC act as reimbursing bank in case of BASIC Bank Ltd. The account, which maintains BASIC Bank Ltd with HSBC & American Express Bank, is called "Nostro Account" and in rivers the account, which is maintained by HSBC & American Express Bank with BASIC Bank Ltd, is called "Vostro Account" Negotiating Bank: The bank, which makes payment to the exporter after scrutiny, the documents submitted by the exporter with the original letter of credit then it is called Negotiating Bank. Nominated Bank: The bank that is nominated by the issuing bank to pay (nominated bank is known as paying bank) or to accept drafts (nominated bank is known as accepting bank) or to negotiate (nominated bank is known as negotiating bank). Usually the advising bank is request & authorized to be the nominated bank unless the credit allows negotiation by any bank. Seller: Beneficiary of the letter of credit is seller.
4.2.1.9.2: Classification of Letter of Credit or Basic forms of documentary letter of credit:

The letter of credit can be either revocable or irrevocable. It needs to be clearly indicated whether the letter of credit Revocable or Irrevocable. When there is no indication then the letter of credit will be deemed to be a revocable L.C. The details are as follows: Revocable letter of credit: A revocable credit is one, which can be amended or cancelled by the issuing bank. At any moment without "prior notice" to the beneficiary. So this is clear that revocable credit can be revoked any time without prior notice. Irrevocable letter of credit: An irrevocable credit is one, which cannot be cancelled or amendment able any time without the consent of each party. Through this letter of
credit the issuing bank gives a definite, absolute and irrevocable undertaking to honor its obligations, provided the beneficiary complies with all the terms & conditions of the credit. Government letter of credit: That letter of credits, which are done by the Defense Ministry and other Ministries of the government. Master or mother letter of credit: The L.C. which come from out side the country to the exporter from importer that is mother or master letter of credit. Other classes of letter of credit: Revolving letter of credit: When the L.C. is used again & again in same amount for a specific period of time that is called revolving letter of credit. Transferable letter of credit: Exporter can transfer his / her right of letter of credit in full or partly to a third party. In generally, the exporter is not the supplier but act as a middleman with in the supplier & importer. Back-to-Back latter of credit: The letter of credit, which done by the security of mother letter of credit. Clean or open letter of credit: The letter of credit, which provides assurance of payment bill of exchange without submission, of any export documents that is called clean letter of credit. Confirmed letter of credit: When the Irrevocable letter of credit issued by issuing bank to the exporter as assurance of the L.C., then as per advice or documents the authorized representative or representative bank's provide assurance or payment guarantee that is confirmed letter of credit. At sight letter of credit: That letter of credit which expires ninety days i.e. with in this period the documents must be sending to the negotiating bank. Deferred payment letter of credit: That letter of credit which expires one hundred & eighty days i.e. with in this period the documents must be send to the negotiating bank. Contract letter of credit. Refinance Letter of Credit. Marginal Letter of Credit. Traveler's Letter of Credit.
4.2.1.9.3: Classification of Letter of credit as per function:

) )
L/C under cash Back to back L/C
LETTER OF CREDIT IN CASH:
Introduction: After getting back the LCA (Letter of Credit Authorization) Form duly registered by Bangladesh Bank, BASIC Bank Limited Foreign exchange Section Branch as letter of credit opening bank can open letter of credit at the request & on the instruction of the importer.
Justification for fitness of letter of credit opening:

Application from importer. Bio-data of the applicant. Current account opened by the applicant in the branch. Supplier's acceptance & rate of goods. Is it a banned item or not? Contract on prescribed form of bank (stamp TK. 150). Performa invoice from supplier. Steps in letter of credit opening: On receiving the documents or papers from the importer the letter of credit opening bank is to perform the following functions in connection with opening the letter of credit: A. To scrutinize the documents thoroughly and to consult with import policy, Bangladesh Bank & International Division's circular. B. To prepare an "offering sheet". This offering sheet is nothing but a prescribed office note on which the branch manager will sanction the margin to be obtained from the importer. C. Commission against opening of the L/C is determined on the basis of tenure of the L/C i.e. for how long the bank is going to take the liability on behalf of the importer D. If the L/C transmitted through SWFIT/TELEX the related charges should be picked up from the respective charges schedule. E. Exchange rates for the respective currency should be picked up automatically form the treasury module. F. Margin is the amount and the percentage of the total L/c value that the applicant has agreed to provide before opening of L/C as his equity participation. The margin should be in local currency. G. If there is any FCC on applicant account which should be deducted as per charges schedule. H. To make entry in "letter of credit opening register". To dispatch the letter of credit as follows: First & second copy - Advising Bank, which in turn forward The original copy to the exporter Third copy - Reimbursing Bank. Fourth & Fifth copyImporter Sixth copyC.C.I. & E. Seventh to Ninth copyLetter of credit opening bank's copy.
Required documents for letter of credit opening: Proposal letter (in proposal letter it must be mentioned that - price of goods, CCI & E
registration, pass book number, LCA form dully filled in signed & sealed, Import form full set, insurance policy & addendum, P.I. number). Application and agreement for irrevocable LC with adhesive stamp of TK.150. Import license HS. Code. TIN. VAT registration. Indenting certificate. Performa invoice - two copies (with in this it indicate - Performa bill no. & date, item, particulars, quality, quantity, rate, and amount of goods, total invoice value (E &O.E.) LCA (Letter of Credit Authorization) form for industrial consumer - four copies. (With in this - IRC number, total amount) Signature of Director of the firm and manager of BASIC Bank Ltd. IMP form - Four copies (by this the declaration of the firm's directors) Money receipts of insurance policy. After preparing the procedure the bank provide offer in prescribed "offering sheet". Approval certificate of Bangladesh Bank on behalf of the importer.
Particulars involved in offering sheet: Name of the party, Sanctioned limit, Facility applied for letter of credit (amount &
previous outstanding). Forward exchange Foreign bills purchased. Guarantees. Trust receipts. Clean packing credits. Advance against imported goods. Goods particulars Import license Margin already at credit. Margin to be obtained. Guaranteed by. Balance of current account. Average Balance of bank account. Net worth of the firm. Customs duty.
Country of export. Other conditions.
Vouchers issued when the offer letter accepted by the bank:

Margin voucher. Liability voucher.
4.3.1: FOREIGN REMITTANCE

Remittance is the sending of money etc. to a distance. Foreign remittance is the sums of foreign currency to a distance from one place another place i.e. country to country. The person who is the receiver of the remittance is remittee. The person who is the sender of the remittance is remitter or remiitor. There are two types of foreign remittance, which are as below: Foreign inward remittance Foreign outward remittance
4.3.1.1: Foreign Inward Remittances:

The remittance of freely convertible foreign currencies which BASIC Bank Ltd Foreign Exchange Section is receiving from abroad against which the authorized dealers making payment in local currency to the beneficiaries may be termed as foreign inward remittance.
4.3.1.1.1: Mode of inward remittances:

The term inward remittances includes not only remittances by TT., MT., Drafts etc. but also purchases of bills, purchases of drafts under travelers letter of credit and purchases of travelers cheques. Foreign currency notes against which payment is made to the beneficiary also a part of inward remittances. Thus the following are the Mode of inward remittances: TT: Telegraphic Transfer. MT.: Mail Transfer. FD: Foreign Drafts. TC: Travelers Cheque. Foreign currency notes.
4.3.1.1.2: Purpose of inward remittance:
The purpose of remittance is of various reasons. Such as: For family maintenance. Realization of exports proceeds. Gift. Donation. Export brokers commission.
Reporting to Bangladesh Bank:

On the last working day of each month the transaction during the month to be reported to Bangladesh Bank through the following schedule: Schedule -J-l / 0-3 for TK. 5000 & above. Inward remittance voucher-1/04 for below TK. 5000.
4.3.1.2: FOREIGN OUTWARD REMITTANCES:

The remittance in foreign currency which is being made from our country to abroad is known as foreign outward remittance.
4.3.1.2.1: Mode of outward remittance:

Thus the following are the Mode of outward remittances: TT. Telegraphic Transfer. MT: Mail Transfer. FD: Foreign Drafts. PO: Payment Order TC: Travelers Cheque. Foreign currency notes.
4.3.1.2.2: Approval of Bangladesh Bank:

Bangladesh Bank provides permission or approval for outward remittances to the applicants who are to lodge an application for the purpose on the following prescribed forms with an authorized dealer who forwarded the same to Bangladesh Bank for approval: The IMP form (cover remittances for imports). Form T/M (Traveling & Miscellaneous).
4.3.1.2.3: Issuance procedure of FD, MT. & TT.:

To prepare the instrument.
To make entry in DD, MT, TT issued register. To prepare draft advice in duplicate one for drawee bank & one for reimbursing bank. To make entry in draft advice dispatched register. To send reimbursement authority in case of MT & TT. T o prepare FET schedule.
4.3.1.2.4: Issuance procedures of traveler cheque:

To verify the approved T / M form or Bangladesh Bank permit. To issue TC by obtaining signature of the purchaser on the TC. To endorse in the passport. To prepare FET schedule. To make entry in the travelers cheque issue register. The TC issuing slip of the issued TC to be sent to that bank (whose TC issued) With reimbursement instruction.
4.3.1.2.5: Issuance procedure of foreign currency notes: To verify the approved T.M form or Bangladesh Bank permit. To issue foreign currency notes by endorsing in the passport. Voucher preparing with accounting treatment: Party's account.......................................Dr. Foreign Currency Notes on Hand A/C Cr. 4.3.1.2.6: Monthly statement to Bangladesh Bank:
On the last working day of each month, the transactions of outward remittance during the month are reported to Bangladesh Bank.
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4.4.1: FOREIGN EXCHANGE BUSINESS POSITION:
Export & import business of BASIC Bank Limited: BASIC Bank's expertise in International Banking has a record of in-house growth over more than one decade. With limited network of branches at home and also a few correspondent banks worldwide it is handling the export-import business including homebound remittances. The following graph shows year-wise export-import business of BASIC Bank Limited. Though both export and import are increasing day-by-day, imports exceed exports which ultimately drastically hit the countrys negative Balance of Trade.
Figure 9: Export & Import position
4.4.1.1: Performance of Foreign exchange business of BASIC Bank Limited The following table shows year-wise performance of foreign exchange operations consisting item-wised income generating avenues. All the figures
show positive growth which generally signals foreign exchange business as a profitable business in Bangladesh. Within all the income avenues, income from exchange gain shows highest figure in taka value. Growth rate here was 48.92%. Income from Letter of Credit and Letter of Guarantee were the second and the third largest among the income avenues respectively.
Table 9: Income from foreign exchange business of BASIC Bank limited Particulars 2004 2005 2006 Foreign bill Purchased 460,581 360,461 654,329 Local bill Purchased 3,833,860 4,485,557 8,646,784 Remittance 7,730,748 7,702,293 7,968,002 Letter of Guarantee 14,160,897 21,397,445 23,360,370 Letter of Credit 66,555,289 75,284,688 96,433,989 Bills for Collection 2,846,448 4,078,047 8,747,327 Acceptance 5,195,369 7,048,898 8,747,327 Export bill 442,527 538,912 599,694 Miscellaneous(includes 1,353,563 2,387,148 3,312,449 commission on sale of PSP,TC 102,579,282 123,283,450 157,649,764 (II Total 129,977,023 114,610,826 149,640,436 (II Exchange gain (Profit on exchange trading) Total (A)+(B) 232,556,305 237,894,276 307,290,200
2007 628,965 9,041,451 8,280,081 39,869,621 106,869,561 10,792,897 10,792,897 570,415 6,491,052 191,235,959 222,845,221 414,081,179
Revenues earnings from foreign exchange section are now graphically presented.
Figure 10: Income from Foreign bill purchased shown
Figure 11: Income from Local bill purchased shown
Figure 12: Income fromRemittance shown
Figure 13: Growth of income from remittance shown
Figure 14: Income from Letter of Guarantee
Figure15: Income from Letter of Credit
Figure 16: Income from Bills for collection
Figure 17: Income from acceptance
Figure 18: Income from Export bill shown
Figure 19: Income from Exchange gain (Profit on exchange trading)
Figure 22 shows the growth of income from exchange gain consisting profit on exchange trading only. In 2005 growth was negative, but in 2006 & 2007, exchange gain shows positive trend.
Figure 20: Growth of Income from Exchange gain
Chapter 5 Foreign Exchange management

5.1: Foreign Exchange risk management
Foreign exchange risk is defined as the potential change in earnings arising in market prices. The market directly affects each countrys bond, equities, private property, manufacturing, and all assets that are available to foreign investors. Foreign exchange rate also play a vital role in determining who finances government deficits, which buys equities in companies and literally affects and influences the economic scenario. Due to high risk market the role of treasury operations is crucial. As per Bangladesh Banks guidelines the bank has segregated the Front and back office of treasury operations. Front office independently conducts the transactions and the Back office is responsible for verification of the deals and passing of their entries in the books of accounts. All NOSTRO accounts are reconciled on monthly basis and all foreign exchange transactions are revalued at market to market rate as determined by Bangladesh Bank. 5.2: Foreign currencies translation: Foreign currencies translations are converted into equivalent taka using the ruling exchange rate on the date of transactions. Foreign currencies balances held in US dollar at the year end are translated into taka currency at the weighted average rate of inter bank market as determined by Bangladesh Bank. Balances held in foreign currencies other than US dollar are converted into mid value of the selling and buying rate of the last transaction date of the year of the bank.
Chapter 6 Findings of the study
6: The findings obtained from the study on Foreign Exchange Operations Of Basic Bank LTD. are follows:
At present, Bank rate is 5%. At present, statutory liquidity ratio (SLR) is 18% and Cash reserve ratio (CRR) is 4.5%. At the end of 2008, Bangladesh Bank (BB) instructed the commercial banks for doubling their paid-up capital and reserves to BDT 4 billion from the existing BDT 2 billion by August 11, 2011. At the end of 2008, Bangladesh Bank (BB) allowed the commercial banks to show a maximum of 50% of the revaluation reserves of the government securities held by them to meet their capital adequacy requirement. At the end of 2008, Bangladesh Bank (BB) slashed interest rates on its housing sector refinancing scheme to 9% from existing 10%. BB increased the amount of monthly income of an applicant up to BDT 0.05 million from BDT 0.03 million to qualify for loan of maximum BDT 2 million for housing purpose. At the end of 2008, Bangladesh Bank (BB) set new definition for SMEs. In the manufacturing sector and in the service and trading sector, total fixed asset excluding land and building has been set at BDT 0.05 million BDT 15 million and BDT 0.05 million BDT 5 million, respectively, for the small enterprises. In the manufacturing sector and in the service and trading sector, total fixed asset
Cash reserve ratio (CRR) and statutory liquidity ratio (SLR) with Bangladesh bank
excluding land and building has been set at BDT 15 million BDT 200 million and BDT 5 million BDT 100 million, respectively, for medium enterprise. At the end of 2008, Bangladesh Bank (BB) raised the allocation for the re-financing scheme aimed at facilitating development of Small and Medium Enterprises (SMEs) to BDT 5 billion from BDT 3 billion. BoP situation continues to maintain surplus in Q1 At the end of 2008, the country's overall balance of payments (BoP) continued to maintain a surplus position during the first quarter (Q1) of the current fiscal mainly due to higher surplus in current account balance. "Despite deficit in the trade balance current account balance recorded a larger surplus of USD 366 million during July-September, 2008 compared to the surplus of USD 99 million in the same period of 2007 due mainly to larger current transfers of USD 2.517 billion," BB said in its Major Economic Indicators: Monthly Update - November, 2008. The overall balance also showed a surplus of USD 64 million during the period compared to the surplus of USD 203 million of the corresponding period of the previous fiscal. As a state-owned scheduled bank, BASIC Bank Ltd. is playing an important role toward the growth and economic development of Bangladesh. BASIC Bank Limited is a blend of development and commercial banking functions.
have been maintained as per rule. At the end of the year 2009, Banks capitalization stood at 11.30% for Tier-I and 13.48% for total capital against the total risk weighted assets exceeding the required minimum level of 5% and 10% respectively. Thus the bank was able to maintain the confidence of investors and depositors while providing a lucrative return to the Government, the sole shareholder of the bank. One of the prime features/objectives of BASIC Bank Limited is 50% of Loan able funds shall be invested in Small and Cottage industries Sector. During the year 2009, it has disbursed 60% loans to Small and medium industries (SMI) and 91% loans to Small and Medium enterprise (SME). Recovery rate of loans and advances is 97% which indicates sound performance of the bank management.
Total assets of the bank dereased by (2.08%) to Taka ,.45,308.32 million from taka
46,651.54 million in 2009.
Loans and advances comprised the largest share in the asset portfolio of the bank
constituting 17.34%
Deposit falls from Taka 38,368.24 million (87.86% of total liabilities) in 2008 to
Taka 34,501.70 million (83.37% of Total liabilities) in 2009 showing a fall rate of 10.08 percent.
The total Loans and Advance of the Bank for the year 2009 was Tk. 29,261.13
against Tk. 27,269.13 million in 2008.
The loan to deposits liabilities stood 84.81% in 2009 as against 71.07% in 2008. SMI/SSI loan and micro credit to total loan stood 56.73% in 2007 as against 53.43%
in 2006.
The Net Profit after tax and provision of the Bank for the year 2009 was Tk.
648.85million as against Tk.549.95 million in 2008 which is Tk.98.9 million higher than the previous year. BASIC Bank Ltd. Training cell provides training facilities to its medium and junior level officers of the bank and also provides executive development and internship program. Uses online banking system in most of the branches.
In order to measure corporate performance, the bank presents Economic Value
Added (EVA) statement in its annual report every year which is an estimate of the amount by which earnings exceed or fall short of the required minimum return for shareholders or lenders at comparable risk. It is also the best measure of a firms intrinsic value and the best tool of aligning management and owners interest. BASIC Bank Limited provides value added statement in its annual reports which indicates how the value is created and distributed among different stakeholders of the bank. There are mainly three types of audit conducted in the BASIC Bank Limited. They are as follows Internal Audit Bangladesh Bank Audit External Audit
There are three types of modes of foreign exchange market, which are: Export Finance,
Import Finance & Foreign Remittance. Foreign Exchange section of BASIC Bank Limited Branch does import operations out of above-mentioned foreign exchange activities vastly.
With limited network of branches at home, volume of export-import business

including homebound remittances is increased day-by-day. The Banks financing of import business increased from taka 17,804 million in 2006 to Taka 21,266.5 million in 2007 registering growth of 19.45 percent. On the other hand, banks export finance increased to Taka 16,795 million in 2007 compared to Taka 15,464 million in 2006- a growth of 8.61%. During first half of FY08, exports, import payments and remittances receipts increased by 4.43% to US$6,495.92 million, 15.90% to US$9,599.80 million and 26.24% toUS$4,827.31 million against US$6,220.61 million, US$8,282.50 million, and US$3,824.04 million respectively during the same period of the previous year. Total official foreign aid disbursement
increased by 3.6% to USD 1,625.0 million in FY07 from USD 1,568.0 million received in FY06. Besides, SWIFT is being used in the AD Branches and the head office of the bank for trade finance-related operations like documentary credit, documentary collections, fund transfer, guarantee, etc. with optimum security. Reuters services are being used at the head office for offering the best exchange rates to its customers as well as for other treasury functions. For Bangladesh Banks exchange control purpose, online L/C monitoring systems is performed daily by inputting details of L/C information with the following Applicant name & address Beneficiarys name & address Foreign currency amount Date of issue of L/C Date of expiry and place of L/C H.S code (Harmonized system code) Description of goods (Quantity, per unit price, total amount) Letter of Credit Authorization form (LCAF) number and date Origin of the goods Name of the Pre Shipment Inspection (PSI) company The liquidity & profitability condition of this branch is standard. It is a leading bank of Bangladesh but it has limited marketing strategy in its management policy. It is a leader in call money market in Bangladesh as well. Most of the employees are loyal to the organization, so they are focused on the customer satisfaction, where customers are the life of the banks.
Chapter 7
Recommendations
As an internee of BASIC Bank Ltd I have some recommendations. These are: Banks should establish a review process to examine the changing circumstances of borrowers to determine the position of loans. Attention devoted to these loans is more likely to result in proper action to safeguarded the Banks position and to assist the borrower to take appropriate steps in their business to bring back loan performing. Here some recommendations are made to enrich the foreign exchange policy, credit policy and practices of the bank:
II
Customer Services should be enhanced: Every banks prime objective is to satisfy its client. Increased customer services are must for it. In Bangladesh all foreign banks and some private commercial banks are now providing excellent services like: ATM, Credit card, phone banking, and super saving facilities and other fast service facilities to its client. But in that area BASIC has taken limited steps. As such they are loosing its valuable client to those which are providing these services. So BASIC should improve its service portfolio and should introduce more technology-oriented services to its customer.
II
Marketing for selling the services should be encouraged: Most of the employees of BASIC or the top management of it is not very much interested for marketing for BASIC Bank. Door to door or business to client relationship is not maintained in this respect. The reason behind this may be that, no incentives are given for this job. So, special incentive schemes should be introduced for mass marketing of services.
II II II
The Bank should develop an effective database needed for analyzing Foreign Exchange Business. More specifically, the Bank should develop sectors wise export-financing Letter of Credit (L/C) opening system for the importer should be easier.
II II
For customer's convenience, BASIC Bank Ltd. should provide more personnel to deliver faster services to the customers. Proper communication system and maintenance of files & machineries like phone, computer, fax, and photocopier need to be ensured in all branches. Though some branches have these kinds of facilities. To ensure error free faster services, the bank should be fully computerized and internet- based.
II
II Research & Development activities should be taken into consideration. I II Effective strategies must be undertaken against defaulters. III Office should be fully decorated to attract clients to take its services. I II More employees are to recruit. For the better service, training is must and
according to the skill and education background of employee needs to be positioned.
III The Bank should absolutely maintain on its own rules and procedures. III The Bank should introduce reward system for good borrowers as well as punishment
for bad borrowers.
III The Bank should apply modernized Marketing Information System. III The Bank should act without any kind of political influence. III The time to reach Permanent Position from probation period takes almost two years,
which is a very long time process as I considered and it should be less than two year.
III Some Officers of the bank are not self-motivated. They should be self-motivated by
training. BASIC Bank Limited has only 32 branches, which are not so satisfactory to serve the country widely. It requires more branches throughout the country.
III Some banking operations are still operated in manual basis rather than computer
system that take more time.
III Computer should be used in all their activities.DD, TT takes more time to operate. It
should minimize time. On line banking may be encouraged.
III Management should be careful about high liquidity ratio:

As per Bangladesh Bank inspection report it has been revealed that, most of the branches are keeping more funds in their hand, which are affecting the profitability. Also the conservative approach of the bank is affecting its profitability. As such the bank now should involve more of its strength to find new investment area and let its idle funds to be used.
III We require some valuable information for the purpose of making Internship report
but these kinds of information is not available. We strongly suggest helping us in this matter.
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Chapter 8 Conclusion
From the practical implementation of customer dealing procedure during the whole period of my practical orientation in BASIC Bank Limited I have reached a firm and concrete conclusion in a very confident way. I believe that my realization will be in harmony with most of the banking thinkers. It is quite evident that to build up an effective and efficient banking system to the highest desire level computerized transaction is necessary condition but not the sufficient condition. For proper functioning of the banking systems, corporate governance is desired at highest level. Reviewing the report and from the experience of the two months with the bank under internship program, I can say that BASIC Bank Limited is a potential and promising bank in the banking sector in Bangladesh. As desired, its functions and activities in the economy are being aligned with the objectives set by the Government of Bangladesh since its inception. After getting Authorized Dealers license from the authority of Government of Bangladesh, BASIC Bank Limited finds foreign exchange business as a profitable and challenging business. Though, income from loans and advance shows the highest amount/percentage of total income, some loans and advances are indirectly created from foreign exchange section, such as PAD, LTR, LIM, Local Documentary Bills Purchased (LDBP), Foreign Documentary bills Purchased (FDBP) which shows high level of income generating avenues from BASIC Bank Limited. The effective and efficient Foreign Exchange Business of the Bank helps in the continuous growth and progress of national economy. Through the foreign exchange operations and all other banking activities, BASIC Bank Limited is, no doubt, playing a vital role not only in the micro economic sector but also in macro economic sector of Bangladesh. We hope, the successful walkway of BASIC Bank Limited will remain continuous for a long time and become an example in the banking sector in our country.
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REFERENCES Ali Syed Ashraf,Foreign Exchange & Risk Management, First Mowla Brothers
Edition, May 2005,Mowla Brothers,Dhaka.
A Dictionary of Business (2003), 3nd edition, Oxford University Press.

Annual Report of BASIC Bank Limited(Published-2007) Annual Report of BASIC Bank Limited(Published-2006) Annual Report of BASIC Bank Limited(Published-2005)
Monthly Business review published by IDLC finance Ltd. Vol. 4 Issue 12, December 2008. Corporate Governance Issues in Bangladesh: A survey of the Annual Reports The Bangladesh Accountant,January-March,2006,pp 95-99
Hossain ,Dewan Mahboob & Khan ,Arifur Rahman (2006), Disclosure on
Guidelines for foreign exchange transaction of Bangladesh Bank (Volume 1 & 2). Monthly Statement of BASIC Bank Limited, December, 2008 Various Official Records of BASIC Bank Limited. The Daily Prothom Alo-January 14, 2009. Foreign Exchange and Financing of Foreign trade Import Policy2006-2009 Export Policy2006-2009 Export-Import (Control) Act1950 http://www.basicbankbd.com http://www.bangladeshbank.com
http://www.idlc.com
Consultation with the Following Persons *Md. Ghulam Sayeed Khan (Manager) *Md. Mahedi Hasan(Assistant manager) *Md.Maqsud Hossain(Assistant manager)
Annexure-A
The commodities which required mandatory PSI are set by the circulars issued by the customs. There are at present four zones to conduct the PSI over the world for Bangladesh. These are following. Table 9: SL no. (1) 01 02 03 04
Name of PSI Agency (2) SGS Societe Generale Surveillance S.A Switzerland. Bureau Veritas (BIVAC) International S.A, France OMIC Overseas Merchandise Inspection Co. Ltd, Japan Intertek International Limited, UK
Block (3) A and C B D E
Block-wise name of the countries: Block A: India Block B: China, Thailand, Korea (N & S), Philippines, Cambodia. Block C: Pakistan, Nepal, Bhutan, Sri Lanka, Maldives, Myanmar, Afghanistan, Indonesia, Malaysia, Singapore, Iraq, Iran, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia,
Syria, U.A.E., Egypt, Ethiopia, Nigeria, Kenya, Ghana, Bahrain, Uzbekistan, Azerbaijan, Tajikistan, Tunisia, Morocco, Sudan, Algeria, Libya, Yemen, Turkmenistan, Brunei, Tanzania, Albania. Block D: Japan, Hong Kong, Vietnam, Taiwan, Australia, New Zealand, Solomon Islands, Fiji, Kiribati, Vanuatu, Papua N. G. Block E: Canada, U.S.A., South Africa, Seychelles, Zimbabwe, Norway, Turkey, UK, Italy, Netherlands, Belgium, Switzerland, Germany, Denmark, Spain, France, Ireland, Sweden, Other European Countries, Czech Republic, Estonia, Lithuania, Latvia, Poland, Romania, Russia, Slovenia, Ukraine, Argentina, Brazil, Chile, Mexico, Peru, Uruguay, Venezuela, and countries, rest of the world which is/are not included in the other Blocks.

Foreign Exchange Operations of BASIC Bank Limited

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Foreign exchange operations Of BASIC Bank Limited

1.1: Authorization of the study:

1.3: Schedule of internship:

Table :1.Schedule of internship. 1.4: Coverage of the study:

1.5: Methodology of the study: