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Report on Janata Bank Limited

1.1 Introduction of the Study The primary purpose of this report is to get an idea a out the operations of !anata Ban" Limited# a second$generation an" of the country and ma"e an industry analysis on the an"ing sector of Bangladesh% Ban"s are profit & earning concern% The '(ord )Ban"* refers to the financial institution deals (ith money transaction% Ban"s collect deposits at the lo(est possi le cost and pro+ide loans and ad+ances at higher cost% The difference et(een t(o is the profit for the an"% ,ommercial an"s are the primary contri utors to the country% The re+enue earning sources of an"s are mainly loans and ad+ances% The credit facility can e of t(o types- funded and non$funded% .unded credit can e e/pensi+e for the an"s# as the an" has to pay interests% 0on$funded credit includes Letter of ,redit# (hich is the main source of income for the foreign e/change usiness%

If a an" can increase its import and e/port transactions# its profit (ill o +iously reach a higher le+el# as the costs are negligi le% This report is an attempt to reflect the position of !anata Ban" Limited in the an"ing industry procedures# policies and acti+ities (ith emphasis on foreign e/change usiness% 1. Background of the Study

After completion of 123 credit hours of BBA program demands a report on practical e/perience% Internship program is a must criterion for Bachelor of Business Administration 4BBA5 students# designed to put them in a challenging en+ironment of the rele+ant field# (here the students get sample opportunity to apply their theoretical "no(ledge into practical applications% 6uring the internship training# students ha+e the opportunity to adopt themsel+es into the particular en+ironment of the organi7ation% It pro+ides a uni8ue opportunity to see the reality of usiness during student life# (hich ena les them to uilding confidence and (or"ing "no(ledge in ad+ance of the start of their career% To fulfill this re8uirement e+ery uni+ersity of usiness arrange a program of internship% Here (e get a chance to apply our theoretical "no(ledge that (e ac8uired from class lectures# oo"s# 9ournals# case studies# seminar# pro9ect# (or"shop# etc and compare them (ith practical setting% 1.! Rational of the Report Ban" is a financial institution# (hich accepts money from its customers as deposit and gi+es money as loan to the orro(ers% A an" is financial intermediary a dealer in loans and de ts% : After completing my Bachelor of Business Administration 4BBA5 as a student of )Stamford ;ni+ersity*# I (anted to complete my Internship program from a reputed Ban" (hich (ould e helpful for my future professional career% I got the opportunity to perform my internship in the !anata Ban" Limited% I (as sent to Mohammadpur ,orporate Branch% It (as three months practical orientation program% This report is originated as the re8uirement of !anata Ban" Limited This is the last part of BBA program% As a graduated# it is essential to fulfill all# the re8uirements the program demand% <nly after preparing = su mitting the report this program ecomes completed% Internship is highly needed to gain practical idea# "no(ledge and e/perience% I ha+e selected .oreign >/change department of !anata Ban" Limited ecause here all international transaction occur through Import and >/port% And anyone can easily trade (ith other foreign countries through L?,% The report entitled )Performance = Acti+ities of .oreign >/change of !anata Ban" Limited* has een prepared as a partial fulfillment of BBA program authori7ed y the super+isor# .aculty of Business administration# Stamford ;ni+ersity% In today@s (orld only academic education does not ma"e a student perfect to ecome competiti+e (ith the outside (orld%

I had to prepare a report under the super+ision of Arif Ahmed Imran of this course# 6epartment of .inance# Stamford ;ni+ersity Bangladesh% <n the other hand# in charge of foreign e/change department of !anata Ban" Limited 4Mohammadpur ,orporate Branch5# super+ised me in the organi7ation% As an intern# I got the opportunity to perform my internship in the !BL% I (as sent to Mohammadpur ,orporate Branch% It (as three months practical orientation program% This report is originated as the re8uirement of !BL% 1." Specific #$%ecti&es To analy7e the real .oreign >/change performance of Bangladesh% To "no( the .oreign >/change Import and >/port guideline# police# rules and regulation of Bangladesh% 1.' Scope of the Report

This study (ould focus on the follo(ing areas of !anata Ban" Limited%

Actual .oreign Trade management of !anata Ban" Limited% <+er+ie( the current procedure of e/port = import management% <pening L, and maintenance of other formalities of foreign trade% <rgani7ational structures and responsi ilities of management% >ach of the a o+e areas (ould e critically analy7ed to determine the proper efficiency of !anata Ban"@s .oreign Trade Management system% 1.( #$%ecti&e of the Study

;pdating and li erali7ing the trade regime in accordance (ith the needs and re8uirements of the Aorld Trade <rgani7ation and glo ali7ation: >ncouraging la or$intensi+e 4especially female la or5 e/port$oriented production: >nsuring a+aila ility of ra( materials for manufacturing e/port goods: Increasing producti+ity and di+ersity of products: Impro+ing the 8uality of products: encouraging the use of modern# appropriate and en+ironment$friendly technology# producing high$end products# and impro+ing the design of the products: >nhancing efficiency and dynamism y using e$,ommerce and e$Bo+ernance:

Initiating ne( strategies for the e/pansion of the mar"ets for e/port products# ma"ing proper utili7ation of computer technology and encouraging all modern technologies including e$,ommerce: Assisting the de+elopment of necessary infrastructure# particularly for ac"(ard and for(ard lin"ages in order to encourage the production of e/porta le goods: Pro+iding all$out support to ne( e/porters as (ell as to e/isting e/porters: Assisting the de+elopment of a s"illed la or$force through proper training for managing international trade: and pro+iding ade8uate guidance to trade odies# usiness organi7ations# usiness people$and related indi+iduals in understanding the changing international trading system# etc% 1.) Research *ethodology

Analysis techni+ues Both 8ualitati+e and 8uantitati+e methods (ere applied for preparing this report% The data (ere analy7ed and presented y Microsoft e/cel and sho(s percentage# graphical presentation and different types of charts% Best effort (as gi+en to analy7e the numerical findings% Re+uired data The main focus is on numerical data in preparing the report% Also theoretical portion of the report has een used as the demand of the report% Analy7ing foreign trade management of a an"# oth theoretical and technical "no(ledge are necessary for e/ecution# then e+erything (ith accuracy% Sources of data, Sample information Main source of the information is annual report of !anata Ban" Limited# report of annual meeting# rochures and (e sites% The information incorporated in this report is hea+ily collected oth from the primary sources and as (ell as from the secondary sources. Primary sources of data The data collection has een accomplished directly from the different sectors of !anata Ban" head office% This is called primary source of data% Secondary sources of data

The secondary data is collected from annual report# distinguished conceptual matters# (e sites and se+eral pu lished matter as articles in different +ersions of printings% Secondary Sources are

Annual Reports of different years of !anata Ban" Limited% Bangladesh Ban" (e site <ther pu lished documents of !anata Ban" Limited% !anata Ban" (e site Respecti+e sectors of foreign matter of the head office% 1.- Limitation of the Study

.ime limitation, It (as one of the main constraints that affected co+ering all aspects of the study% Lack of Secondary Information, The import e/port data of Bangladesh is not much a+aila le o+er the net% Secondary source of information (as not sufficient for the completion of the report% Limitation of the Study, Much confidential information (as not disclosed department% /0AP.1R, PR#2IL1 #2 JA3A.A BA34 LI*I.15 y respecti+e personnel of the

.1 #&er&ie6 of the Janata Bank .1 A$out Janata Bank Ltd. 7 #&er&ie6 of Janata Bank Ltd.

.1

A$out Janata Bank Ltd. 7 #&er&ie6 of Janata Bank Ltd.

!A0ATA Ban" Limited (elcomes you to e/plore the (orld of progressi+e Ban"ing in Bangladesh% It is a state o(ned commercial an" and is catering the need of the mass usiness people% It (as corporati7ed on 1C th 0o+em er D33E% !anata Ban" (as orn (ith

a ne( concept of purposeful an"ing su ser+ing the gro(ing and di+ersified financial needs of planned economic de+elopment of the country% <ur commitment and the people@s elief in us ha+e gi+en us the edge o+er others to earn this trust a out the safe "eeping of their money in the right "ind of an"ing channel% !anata Ban" Limited# one of the state o(ned commercial an"s in Bangladesh# has an authori7ed capital of T"% D3333 million 4appro/% ;SF DG2%22 million5# paid up capital of T"% C333%33 million# reser+e of T"%13GD2%31 million and retained surplus T"% C1HE%1G million% The Ban" has a total asset of T"% 2ICD22%JD million as on 21 st 6ecem er D313% Immediately after the emergence of Bangladesh in 1JE1# the erst(hile ;nited Ban" Limited and ;nion Ban" Limited (ere renamed as !anata Ban"% <n 1C th 0o+em er# D33E the an" has een corporati7ed and renamed as !anata Ban" Limited% !anata Ban" Limited operates through GEI ranches including I o+erseas ranches at ;nited Ara >mirates% It is lin"ed (ith 1D3D foreign correspondents all o+er the (orld% The Ban" employs more than 1C4fifteen5 thousand persons% The mission of the an" is to acti+ely participate in the socio$ economic de+elopment of the nation y operating a commercially sound an"ing organi7ation# pro+iding credit to +ia le orro(ers# efficiently deli+ered and competiti+ely priced# simultaneously protecting depositor@s funds and pro+iding a satisfactory return on e8uity to the o(ners% The Board of 6irectors is composed of 12 4Thirteen5 mem ers headed y a ,hairman% The 6irectors are representati+es from oth pu lic and pri+ate sectors% The Ban" is headed y the ,hief >/ecuti+e <fficer = Managing 6irector# (ho is a reputed an"er% . /orporate Information The corporate head office is located at 6ha"a (ith 13 4ten5 6i+isions comprising of 2G 4thirty eight5 6epartments% 0ame Registered Address !anata Ban" Limited !anata Bha an 113# Moti9heel ,ommercial Area 6ha"a & 1333% Bangladesh Legal Status Pu lic Limited ,ompany

6ate of Incorporation Authori7ed ,apital Paid up ,apital Reser+e Retained surplus Asset .ace +alue of per share Shareholding Pattern Bo+ernment of Bangladesh 5omestic 3et6ork 0um ers of Branch 0um ers of 6i+isional <ffice 0um ers of Area <ffice 0um ers of Regional <ffice #&erseas 3et6ork 0um ers of Branch Location

D1 May# D33E TK% D3#333 Million TK% C#333 Million TK%13GD2%31 Million T"% C1HE%1G Million T"% 2ICD22%JD Million TK% 133 per share 133L Share o(ned y the

, , 3I ;A> & ,hief >/ecuti+e@s office < eid Sayah Al & Mansuri Building Mayed the 1st Street 4>lectra Road5 Post Bo/ 0o DH23 A u 6ha i ;nited Ara >mirates GEI 3G 1C DJ

Su$sidiaries 1% !anata ,apital and In+estment Ltd%

, 6ha"a%

D% !anata >/change ,ompany srl% 0um ers of ,orrespondent 6epartments 0um ers of >mployees Ban"ing License 4o tained from Bangladesh Ban"5 Tele/ Phone JCHC3I1$IC# JCH33DE$23% .a/ >$mail Ae site SAI.T ,ode

, -

Italy 1#D1C 2G More than 1C4fifteen5 thousand 21 May# D33E

HECGI3 !B6B!# HE1DGG !BH<B! PABN$ JCH3333# JCHH3D3# JCCHDIC$IJ# GG$3D$JCHIHII# JCH3GHJ mdO9anata an"$ d%com (((%9anata an"$ d%com !A0B B6 6H

.! #&er&ie6 of Janata Bha$an /orporate Branch

Branch 0ame <pening 6ate Address

- !anata Bha an ,orporate Branch - 1G$3C$1JGJ - !anata Bha an 113# Moti9heel ,?A 6ha"a & 1333% Bangladesh

Phone

- JCH3333# JCH332J# JCHH3D3# JCCHDIC$IJ# JCH33DE$23# JCH33ID$ I2# JCHC3I1$IC# JCHH3DG$DJ

.AN >$mail

- JCHGHDI - 9 c O9anata an"$ d%com

SAI.T 4Branch5 6epartment Total 0um er of >mployees

- !A0BB66H!B, -J - 12J ." International A6ard

Recently The Ban" has een recogni7ed internationally and domestically for its good performance% International A6ard-.he Bank of the year- 811 in Bangladesh !anata Ban" Limited has een a(arded 9.he Bank of the :ear- 811 in Bangladesh; y the London ased .inancial Maga7ine The Ban"er of the .inancial Times Broup% This is for the si/th time the an" has een a(arded 'The Ban" of the Pear@% !anata Ban" Limited achie+ed remar"a le progress in the year D313% I/*AB Best /orporate A6ard- 811 !anata Ban" Limited has een a(arded I/*AB Best /orporate A6ard < 811 y the Institute of ,ost and Management Accountants of Bangladesh% This Ban" secured the first position among the state o(ned ,ommercial Ban"s in Bangladesh% International A6ard -=>orld;s Best Bank A6ard- 88? in Bangladesh !anata Ban" Limited (as a(arded Best Bank-Bangladesh in the Blo al .inance# Aorld@s Best Ban" A(ards# D33J y 0e( Por" ased .inancial Maga7ine )Blo al .inance*% )Blo al .inance* has identified (inning an"s ased on num er of criteria including gro(th in Assets# Profita ility# Strategic relationships# ,ustomer Ser+ice# ,ompetiti+e pricing and inno+ati+e products% International A6ard -=>orld;s Best Bank A6ard- 88- in Bangladesh !anata Ban" Limited (as a(arded Best Bank-Bangladesh in the Blo al .inance# Aorld@s Best Ban" A(ards# D33G y 0e( Por" ased .inancial Maga7ine )Blo al .inance*% )Blo al .inance* has identified (inning an"s ased on num er of criteria including gro(th in Assets# Profita ility# Strategic relationships# ,ustomer Ser+ice# ,ompetiti+e pricing and inno+ati+e products% International A6ard -=>orld;s Best Bank A6ard- 88) in Bangladesh !anata Ban" Limited (as a(arded Best Bank-Bangladesh in the Blo al .inance# Aorld@s Best Ban" A(ards# D33E y 0e( Por" ased .inancial Maga7ine )Blo al .inance*% )Blo al .inance* has identified (inning an"s ased on num er of criteria

including gro(th in Assets# Profita ility# ,ustomer Ser+ice# Product inno+ation and Ad+anced Technology% International A6ard -=>orld;s Best Bank A6ard- 88( in Bangladesh !anata Ban" Limited (as a(arded Best Bank-Bangladesh in the Blo al .inance# Aorld@s Best Ban" A(ards# D33H y 0e( Por" ased .inancial Maga7ine )Blo al .inance*% )Blo al .inance* has identified (inning an"s ased on num er of criteria including gro(th in Assets# Profita ility# ,ustomer Ser+ice# Product inno+ation and Ad+anced TechnologyInternational A6ard <.he Bank of the year- 88' in Bangladesh !anata Ban" Limited has een a(arded 9.he Bank of the :ear- 88' in Bangladesh; y the London ased .inancial Maga7ine the Ban"er of the .inancial Times Broup% This is for the fifth time the an" has een a(arded 'The Ban" of the Pear@% The a(ard has een gi+en considering the gro(th and performance measure of the an"% International A6ard -.he Bank of the :ear- 88" in Bangladesh !anata Ban" Limited has een a(arded as 'The an" of the year D33I in Bangladesh@ y the London ased .inancial Maga7ine .he Banker of the .inancial Times Broup% This is for the second consecuti+e year that the !anata Ban" Limited has een a(arded 'Ban" of the year@% !anata Ban" Limited sho(s a remar"a le progress in the year D332% Its return on assets (as 1%2HL and return on in+estment (as H%IEL respecti+ely% !anata Ban" Limited is also emerging as the strong and inno+ati+e an" (ithin the country% The profile of its success is enriched y a pac"age of ne( 8ualitati+e product lines# prudent lia ility and assets management and others% Most of the "ey financial indicators of the an" sho(ed a +ery positi+e impro+ement at the year ended 6ecem er D332% Janata Bank Limited recei&es @Asian Banking A6ards 88"A on financing Program for >omen 1ntrepreneurship, .inancing program for Aomen >ntrepreneurship of !anata Ban" Limited has highly een commended as a Runner$;p in the Micro$.inance Product or Program category of the Asian Ban"ing a(ards D33I% The A(ards (ere presented y the Asian Ban"ers Association 4ABA5 and Ban" Mar"eting Association of the Philippines 4BMAP5 in the Asia Pacific Ban"ers ,ongress 4APB,5 D33I on March DH# D33I in Manila# Philippines% Janata Bank Limited gets @.he Banker A6ard- 88!= The Ban"er# an International Ban"ing Maga7ine of the .inancial Times group in London has selected !anata Ban" Limited as )The Ban" of the Pear# D332* among all other an"s in Bangladesh% The Ban"er@s assessment for a(ard is ased on a num er of criteria% International A6ard-.he Bank of the :ear- 88

The Ban"er# a maga7ine of the London ased .inancial Times Broup of ,ompanies# has +oted Janata Bank Limited as the $ank of the year for Bangladesh for D33D% Ahile ma"ing this selection the panel has recogni7ed the efforts made y !anata Ban" Limited in recent times for Impro+ing IT ased performances International A6ard-.he Bank of the :ear- 881 The Ban"er# a maga7ine of the London ased .inancial Times Broup of ,ompanies# has +oted Janata Bank Limited as the $ank of the year for Bangladesh for D331% Ahile ma"ing this selection the panel has recogni7ed the efforts made y !anata Ban" Limited in recent times for impro+ing its performances% The an" has also een included in the listing of top 88 Asian Banks for the year 881 % This listing (ill e a+aila le to delegates attending the forthcoming IM.?Aorld Ban" meeting in Aashington% The Septem er edition of the Ban"er (ill also highlight the recent achie+ements of !anata Ban" Limited% Besides# a certificate of merit and a an" of the year logo (ill e gi+en to !anata Ban" Limited for e/clusi+e use on all pu licity and ad+ertising% It may e noted here that !anata Ban" Limited has een (or"ing hard in impro+ing the customer ser+ices in recent times y introducing a num er of IT$ ased reform measures% .' Branches

List of Region7Area of Janata Bank Limited

2igure 1, Branches of Janata $ank limited

.( /orporate structure .) /orporate Bision-*ission

Vision To ecome the effecti+e largest commercial an" in Bangladesh to support socio$ economic de+elopment of the country and to e a leading an" in South Asia% *ission

!anata Ban" Limited (ill e an effecti+e commercial an" y maintaining a sta le gro(th strategy# deli+ering high 8uality financial products# pro+iding e/cellent customer ser+ice through an e/perienced management team and ensuring good corporate go+ernance in e+ery step of an"ing net(or"% .- /orporate Co&ernance ,orporate Bo+ernance of !anata Ban" Ltd% Is defined as the frame(or" y (hich the an" is directed and controlled and the relationships et(een the management# the Board of 6irectors# Shareholders and other sta"eholders such as employees# clients and lenders% The aim of the ,orporate Bo+ernance frame(or" is to ensure disclosure and transparency# to define the responsi ilities of the oard and the management# to define the rights and role of shareholders and sta"eholders# to ensure the e8uita le treatment and to a+oid conflicts of interests% It is the ehalf of the management and the Board that an"s lend money that is in effect orro(ed from depositors and the failure of an"s could result in a monetary loss for the depositors% The interest of depositors should e protected and for this reason amongst others# the importance of corporate go+ernance of an"s differs from that of other companies and needs special attention% The an" adopted the follo(ing strategies and techni8ues to ensure the application of corporate go+ernance in attaining its o 9ecti+es (ith efficiency and transparency% The follo(ing are in place in order to ensure corporate good go+ernance of !anata Ban"% /0AP.1R, ! C131RAL BA34I3C !.1 Introduction !.1" Ceneral Banking Beneral an"ing department is the heart of all an"ing acti+ities% This is the usiest and important department of a ranch# ecause funds are mo ili7ed# cash transactions are made: clearing# remittance and accounting acti+ities are done here% Since an" is confined to pro+ide the ser+ices e+ery day# general an"ing is also "no(n as 'retail an"ing@% In !BL# the follo(ing departments are under general an"ing section,

Account opening section 6eposit section ,ash section

Remittance section

,learing section Accounts section !. Account #pening !.1" Ceneral Banking

<pening of an account inds the an"er and into a contractual relationship% ,ustomer relationship esta lish through opening an account% Benerally (ho are recei+ing an"@s ser+ice (e may call them as a customer% But an" consider them as a customer (ho ha+e an account (ith them% !.! Procedure for opening an account !.1" Ceneral Banking Ma9or information@s are essential for identification of the account holders indi+idually so that an"er can discharge his o ligations to e+eryone correctly and to the e/tent due% .ollo(ing are the customer must complete the formalities Application on the prescri ed form .urnishing photographs 4D copies5 Introduction y an account holder Recording of specimen signature in the specimen card Mention nominee on the prescri ed form .urnishing nominee@s photograph 4one copy5 0ational I6 card or Passport 4Photo copy5 !." 5eposit Section !.1" Ceneral Banking !.' /ash Section !.1" Ceneral Banking 6eposit is the life lood of a an"% .rom the history and origin of the an"ing system (e "no( that deposit collection is the main function of a an"%

Ban"s# as a financial institution# accept surplus money from the people as deposit and gi+e them opportunity to (ithdra( the same y che8ue# etc% But among the an"ing acti+ities# cash department play an important role% It does the main function of a commercial an" i%e% recei+ing the deposit and paying the cash on demand% As this department deals directly (ith the customers# the reputation of the an" depends much on it% !.( Remittance !.1" Ceneral Banking ,arrying cash money is trou lesome and ris"y% That@s (hy money can e transferred from one place to another through an"ing channel% This is called remittance% Remittances of funds are one of the most important aspects of the ,ommercial Ban"s in rendering ser+ices to its customers% !.) /learing Section !.1" Ceneral Banking The amount of ,he8ue# Pay <rder 4P%<5# and 6emand 6raft 46%6%5 ,ollection of amount of other an"s on ehalf of its customer is a asic function of a ,learing 6epartment% !.- Products of the Bank

5eposit Products, ,urrent 6eposit Account Short Term 6eposit Sa+ings Ban" 6eposit Account .i/ed 6eposit .oreign ,urrency 6eposit Monthly Sa+ings Scheme Monthly Profit Based Sa+ings Scheme !anata Ban" Sa+ings Pension Scheme 4!BSPS5 !anata Ban" 6eposit Scheme 4!B6S5

>ducation 6eposit Scheme 4>6S5 Medical 6eposit Scheme 4M6S5 !anata Ban" Monthly Sa+ings Scheme 4!BMSS5 !anata Ban" Special 6eposit Scheme 4!BS6S5 !anata Ban" School Ban"ing Sa+ings Kar9a"ram 3e67Special Products, .inancing IT Sector .inancing of Industries Ready ,ash Aindo(s for SM>s Loan to Tra+el Agencies Loan to 6iagnostic ,enters 0RB >scro( Account 0RB Bift ,he8ue 5escription of the 3e6 Products and ser&ices 2inancing I. sector The importance of Information Technology and the role it can play in the socio$economic de+elopment of a nation cannot e o+er emphasi7ed% The (orld has (itnessed a phenomenal gro(th in IT o+er the last t(o decades# and the countries# (hich made a conscious decision to ta"e ad+antage of such gro(th# ha+e made unprecedented progress% Today (e are li+ing in the Internet (orld% To hasten the gro(th of information Technology and to attract young energetic IT professional !anata Ban" Limited has launched a credit scheme titled ).inancing ,omputer Soft(are 6e+elopment = 6ata >/port*% The ma/imum loan amount is T"% 13 million# (ith de t to e8uity ratio eing G3 - D3% The rate of interest is 11L% But any ody (ith e/port mar"et e/posure can get the enefit at EL interest rate plus 1L ser+ice charge% The main feature of this scheme is to set up industrial ased IT pro9ects for de+elopment of soft(are for data e/port and that too" on a +ery soft term% !anata Ban" Limited has issued detailed guidelines for facilitating IT entrepreneurs%

Ready /ash !anata Ban" Limited has entered into an agreement (ith American International In+estment 4AII5 to pro+ide financial plastic card ser+ices to !anata Ban" Limited@s clients% This product is a )6e it ,ard* called the Ready ,ash%

,urrently# the Ready ,ash system is operating in 6ha"a and (ill soon e e/panded to other ur an areas of Bangladesh% ,ardholder@s primary enefits are Safety# Shopping at a (ide merchant net(or"# Payment of ;tility Bills# fle/i le sa+ing plan and the con+enience of not ha+ing to carry cash% As the only micro$processor chip ased de it card a+aila le in Bangladesh for financial payment# the Ready ,ash card is +ery relia le and secure% It com ines the most desira le aspects of the credit card# together (ith the ad+antages of the 6e it or ATM card% o It is the first step that most Bangladeshi citi7ens (ill ta"e on the path to a cashless economy% o Ready ,ash is a de it card as it allo(s the cardholder to spend no more money than he?she has in his?her Ban" account & unless a credit line has een e/tended% o It increases the consumption ase and allo(s the cardholder to esta lish a credit history% o .or these and many other reasons# the Ready ,ash card is the fastest gro(ing system in Bangladesh%

/0AP.1R, " L#A3S A35 A5BA3/1S ".1 Loans and Ad&ances Section

This is sur+i+al unit of the an"% The reason is# until and unless the success of this section# the sur+i+al is a ig 8uestion% This is main earning unit of the an"% Ban"s accepts deposits from the depositors in condition of pro+iding interest to the depositors in condition of pro+iding interest to them% 0o( the 8uestion is ho( an" pro+ides interest to their clients% The simple ans(er isQinterest from ad+ances% The an" pro+ides interest to the orro(ers ecause

To earn interest from orro(ers and gi+e depositors the interests get an"% The rest are the profit of the an"% To accelerate economic de+elopment% Ro meet the interest groups%

,redit is a continuous process% Reco+ery of one credit gi+es rise to another credit% In this process of re+ol+ing fund# an" earns income in the form of interest% A an" can in+est its fund in many (ays% Ban" pro+ides loans and ad+ances to traders# usinessmen and industrialists% Moreo+er# nature of credit may differ in terms of security re8uirement# dis ursement pro+ision# terms and conditions etc% Ban" often uses loans and ad+ances as an alternati+e to one another% But# academically this concept is incorrect% Academically# Ad+ances is the com ination such items (here loans is a part only% .or this credit section of the an"s is "no(n as ad+ance section% Ad+ance di+ision is heart for any an"% A ig portion of income of the !anata Ban" Ltd is comes from this ad+ance di+ision% This income comes from different types of in+estment of depository money% In+estment decision is the most important (hich is ta"en y the management of the !anata an" Ltd% !BL ad+ance di+ision plays a +ital role for economical de+elopment% !BL has an in+estment committee they are responsi le follo(ing things

To ensure the cash li8uidity re8uirement and can this cash li8uidity meet% To identify ne( in+estment portfolio and this is profita le for the !anata Ban"% To e/amine an"s deposit# in+estment and identify their surplus money% They should e acti+e for reco+ery their su standard# dou tful and ed loan% They should e ta"e short$term in+estment ut this in+estment return is compara ly high%

They should a(are a out mar"et study and e/isting portfolio of in+estment% They should a(are to identify ne( sources of in+estment% !BL in+ests in t(o (ays (hich is

Head office in+estment% Branch in+estment%

.ypes of loan, By the name of loans are three types% .ollo(ing descri e different types of loan y a structure 1. /urrent Loan, a5 ,ash ,redit- Hypo = Pledge% 5 S<6- Beneral and .6R% . 5emand Loan,

a5 Import- LTR# LIM = PA6% 5 >/port- I6BP# .6BP# ABP = P,% !. .erm Loan, a5 HBL% 5 >HBL# c5 ,,S = d5 ,ar Loan% ". /redit 2acilities and Programs ".! Ceneral /redit Line

The main focus of !anata Ban" Limited ,redit Line?Program is financing usiness# trade and industrial acti+ities through an effecti+e deli+ery system% !anata Ban" Limited offers credit to almost all sectors of commercial acti+ities ha+ing producti+e purpose% The loan portfolio of the Ban" encompasses a (ide range of credit programs co+ering a out D33 items% ,redit is also offered to 1C 4fifteen5 thrust sectors# as earmar"ed y the Bo+ernment# at a reduced interest rate to de+elop frontier industries% ,redit facilities are offered to indi+iduals# usinessmen# small and ig usiness houses# traders# manufactures# corporate odies# etc% Loan is pro+ided to the rural people for agricultural production and other off$farm acti+ities% Loan pricing system is customer friendly% Prime customers en9oy prime rate in lending and other ser+ices% Quic" appreciation# appraisal# decision and dis ursement are ensured% "." Rural Banking /redit Program

,redit facilities are e/tended as per guide$lines of Bangladesh Ban" 4,entral Ban" of Bangladesh5 and operational procedures of the Ban"% A +ast ma9ority of the Bangladeshis li+e in the rural areas and their main source of income is agriculture and agro$ usiness% !anata Ban" Limited has opened ranches in rural areas to cater to the an"ing needs of rural people% Apart from accepting deposits from the rich and moderately (ell$off +illagers# !anata Ban" Limited encourages the poor people to ma"e small sa+ings through different mechanisms% So far lending in rural areas is concerned: !anata Ban" Limited has een financing agricultural production and po+erty alle+iation programs since 1JEE% It also

lends to the poor landless so that they can ma"e a li+ing% The a+erage loan si7e is a out Ta"a D3#333%33 4around ;SF DGC5% Rural Banking 7 /redit Program, To increase agricultural production and impro+ement its 8uality% To gear up socio$economic acti+ities among rural people% To create employment opportunities among rural people through pro+iding economic support% ,reating confidence among the eneficiaries on institutional credit and their access to impro+ed production practices ? acti+ities% To uild up asset y creating sa+ing ha it among the rural population% Po+erty reduction% To increase agricultural production and impro+ement its 8uality% To gear up socio$economic acti+ities among rural people% To create employment opportunities among rural people through pro+iding economic support% ,reating confidence among the eneficiaries on institutional credit and their access to impro+ed production practices ? acti+ities% To uild up asset y creating sa+ing ha it among the rural population% Po+erty reduction .he main features of the ma%or agricultural / rural credit programs are narrated $elo6, 1. Special agricultural credit program 7 Short term crop production loan program, 31% Purpose of loan 3D% Area of operation 32% >ligi ility of loanee - Sanctioning of loan to farmers for crop production% - ;nions allocated y Bangladesh Ban" under Lead Ban" System% - .armer possessing 161/2 $ DC3 decimals of culti+a le land or share croppers% 3I% Sanctioning Authority - Branch Manager is sanctioning loan as per credit norms% 3C% Security - ,rop hypothecation and personal guarantee of the orro(ers% 3H% Rate of interest - GL% 3E% 6uration of loan - H months to J months# Ma/imum 1D months% 3G% Mode of dis ursement - In cash in a single installment% 3J% Repayment of loan - Repaya le at a time after har+esting and mar"eting of crops% .a$le 1, Special agricultural credit program 7 Short term crop production loan program

. 0orticulture de&elopment loan program: 31 Purpose of loan % 3D Area of operation % 32 >ligi ility of loanee % 3I Sanctioning Authority % 3C Security % 3H Rate of interest % 3E 6uration of loan % 3G Mode of dis ursement% 3J Repayment of loan % To e/tend financial help to the farmers (ho are interested to culti+ate etel$leaf# anana# pine apple etc% Allocated unions under Lead Ban" System Benuine farmer% Branch Manager is sanctioning loan as per credit norms% Hypothecation of produced crops and personal guarantee% GL% Ma/imum 11/2 year from the date of dis ursement% Loan is dis ursed in cash in a single or more than one installment% Repaya le in (ee"ly ? monthly / a single installment after crop har+esting and mar"eting

.a$le , 0orticulture de&elopment loan program ! DAE 2ishery Loan Program, 31% Purpose of loan - To increase fish production in pond and to create employment opportunity for pond o(ners and lease holders y pro+iding credit for pond re$e/ca+ation and fish culti+ation% 3D% Area of operation - Allocated unions under Lead Ban" System% 32% >ligi ility of loanee - a5 Pond o(ner 5 Lease holder of pond% 3I% Security - Pond# in case of pond o(ner and other properties in case of lease holder are eing ta"en as a registered mortgage% 3C% Rate of interest - GL% 3H% 6uration of loan - I1/2 years 3E% Mode of dis ursement - Loan is dis ursed in installments% 3G% Repayment of loan - >ntire amount of loan (ith interest is repaya le y I e8ual installments% .irst installment is due for reco+ery after 1G months from the date of dis ursement% .a$le !, 2ishery Loan Program !. DBE Shrimp /ulture /redit Program, 31% Purpose of loan - To encourage the shrimp culti+ator to produce more shrimps y utili7ing modern production practices in order to earn more foreign e/change%

3D% >ligi ility of loanee 32% Security

- Indi+idual ? Broup ? ,ooperati+e society are eligi le for loan%

- Hypothecation of produced shrimp% ,ollateral security such as land = uilding are eing ta"en as a registered mortgage% 3I% Rate of interest - GL% 3C% 6uration of loan - 13 months% 3H% Mode of - 4a5 Loan is dis ursed in D?2 installments from !anuary to March% dis ursement 4 5 ,ash credit 4,?,5 is dis ursed as per usual practice of an" for the13 4ten5 acres of land or a o+e% 3E% Repayment of loan - 4a5 Loan is repaid y I e8ual monthly installments from !uly to <cto er% 4 5 ,ash credit is ad9usta le 24three5 times (ithin 14one5 year% .a$le ", Shrimp /ulture /redit Program ". Irrigation F Agricultural 1+uipment /redit Program. 31% Purpose of loan - Loan is gi+en for the purchase of irrigation e8uipments i%e Shallo( Tu e Aell 4STA5# Lo( Lift Pump4LLP5# 6eep Tu e Aell 46TA5 etc = Agriculture e8uipment i%e Tractor# Po(er Tiller etc% to increase agricultural production% 3D% Area of operation - Allocated unions under Lead Ban"% System% 32% >ligi ility of loanee - <(ner of at least 3%C acre of land in case of irrigation e8uipment loan and genuine farmer in case of agricultural e8uipment loan are eligi le% 3I% Security - a5 Hypothecation of e8uipments purchased y loan money% 5 Registered mortgage of land = uilding (hich is e8ui+alent to loan amount% 3C% Rate of interest - GL 3H% Mode of - Loan is dis ursed to the supplier through Pay$order against ill% dis ursement 3E% Repayment of loan - >ntire loan amount (ith interest is repaya le y 11 e8ual half yearly installments (ithin H4si/5 years (ith a grace period of H4si/5 months%

.a$le ', Irrigation F Agricultural 1+uipment /redit Program ".' S*1

!anata Ban" Limited has een financing Small and Medium >nterprises (ith a +ie( to de+eloping a alanced and dynamic industrial sector ha+ing a strong ase of SM>s throughout the country% Besides normal financing special tailor$made programs are underta"en y the Ban"%

;nder this program a credit line has een e/tended to MI6AS (hile another program is under (ay%

/0AP.1R, ' 2#R1IC3 1G/0A3C1 #P1RA.I#3 #2 JA3A.A BA34 LI*I.15 '.1 2oreign 1Hchange .oreign e/change is the means and methods y (hich rights to (ealth in a country@s currency are con+erted into rights to (ealth in another country@s currency% .oreign >/change 6epartment 4.>65 is the international department Bangladesh Ban" issues license to scheduled an"s to deal (ith foreign e/change% These an"s are "no(n as Authori7ed 6ealers% If the ranch is authori7ed dealer in foreign e/change mar"et# it can remit foreign e/change from local country to foreign countries% 2oreign eHchange means foreign currency and includes, All deposits# credits and tra+elers alances paya le in any foreign currency and any drafts#

che8ues# letters of credit and ills of e/change# e/pressed or dra(n in Indian currency ut Paya le in any foreign currency: Any instrument paya le# at the option of the dra(ee or holder thereof or any other party thereto% >ither in Indian currency or in foreign currency or partly in one and partly in the other% Thus# foreign e/change includes foreign currency: alances "ept a road and instruments paya le in foreign currency% '. 2oreign 1Hchange Business

The .oreign >/change department of the ser+ices# (hich are.oreign Remittance Import >/port

an" pro+ides +arious foreign e/change

'.! Remittance

Remittance means sending or transfer money or money$(orth from one place to another% Benerally the process of remittance can e di+ided into t(o ma9or categories

In(ard Remittance <ut(ard Remittance '." 2oreign remittance

.oreign remittance section of !anata Ban" Ltd# Mohammadpur ,orporate Branch is an integral part of .oreign >/change 6epartment% And this section of .oreign >/change 6epartment deals (ith

In(ard foreign remittance <ut(ard foreign remittance <pening .oreign ,urrency Accounts% Bo+erning Aage >arner@s Bond% <pening Student .ile etc% Medical Purpose Tra+els Purpose

In6ard 2oreign Remittance, 0ormally# In(ard .oreign Remittance comprises all incoming foreign currencies% Remittances issued y the correspondent an"s situated in the foreign countries and there y dra(n on !anata Ban"# Mohammadpur ,orporate Branch are considered to e its In(ard .oreign Remittances% .ollo(ings are the In(ard .oreign Remittances# !anata Ban" Mohammadpur ,orporate Branch% .66 Paya le .TT Paya le T, Paya le >ncashment of foreign currencies endorsed in the passport% Purchase of foreign currencies% #ut6ard foreign Remittances, Remittances issued y !anata Ban" Mohammadpur ,orporate Branch to their foreign correspondents to fulfill their customers@ needs are considered to e the <ut(ard .oreign Remittances% It comprises the follo(ings-

.66 Issued .TT Issued T, Issued >ndorsement of foreign currencies in the passport% Sale of foreign currencies% 2oreign 5emand 5raft D255E Issued, People used to send money a road for +arious purposes% !BL issues most of the .66 for the purpose of payment of the application fees to the foreign uni+ersities% .or the issuance of .66: T?M .orm has to e filled up duly% This form is filled up under the .oreign >/change Regulation Act# 1JIE% This form contains The purpose of tra+el# 0ame of the country (here the applicant (ill go# 0ame of the air or shipping company# Passport num er# Signature# name = address of the applicant Accounting .reatment, !BL gi+es the follo(ing entries (hile issuing .66,lient@s Account? ,ash ,ommission I6T .ra&eler;s /he+ue D./E Issued, !BL issues only American >/press Tra+eler@s ,he8ue 4T,5% .or T,# customer has to fill up T?M form% He has to fill up the purchase form also% .or T,# !BL charges commission% Procedure for issuing ./ There are some re8uirements that are to e fulfilled y the Tra+eler@s ,he8ue purchaser% The re8uirements are6r% ,r% ,r%

i5 re8uired ii5 iii5 i+5

The client must e an account holder or proper reference from the an" is The passport must e a +alid one Air tic"et has to e confirmed Passport holder must e present physically

Steps in&ol&ed in issuing of ./, 15 After +erifying all these documents the customer is as"ed to fill up prescri ed application form% D5 In the application the customer states the amount he is (illing to endorse and it is to e +erified that his re8uired amount is (ithin the stipulated% 25 Then the customer pays cash or y de iting his account the Tra+eler@s ,he8ue is issued% I5 >ndorsement is gi+en on the passport and on the tic"et% ,ustomer fills up the T?M .orm% C5 Purchased application form has to e filled up y the purchaser% H5 >ntry has to e gi+en in the .oreign ,urrency Register and in the Tra+eler@s ,he8ue Register% 2ollo6ing 5ocuments must $e retained form the clients , ? ? ? Photocopy of passport T?M form 4Tra+el = Miscellaneous5 <thers ,opy of go+ernment order 4in case of go+ernment employee5

,opy of in+itation letter if issuance is against conference?training 8uota 1ndorsement of /ash, ,ash foreign currency can also e remitted through the cash endorsement in the passport% In case of endorsing cash in the passport# the re8uirements are similar to those of Tra+eler@s ,he8ue% But according to the foreign e/change Regulation Act# 1JIE an indi+idual cannot ta"e more than F1C33%33 in cash in a year% That@s (hy: the concerned officer chec"s the last +oyage of the purchaser% If he?she made any +oyage and if he?she

purchased dollar at that time# then the officer (ill deduct the amount and (ill gi+e the rest to the purchaser% !BL cannot endorse more than F1C33%33 as cash at a time% .or more than F1C33%33# the customer has to purchase T,% .or cash endorsement S>BL maintains a separate register% .or gi+ing cash foreign currency# !BL charges T"% D33%33 as ser+ice charge per passport% 2oreign .. Paya$le, .oreign remittance section also pays the claim of the foreign TT% After recei+ing TT paya le# S>BL performs the follo(ing functions15 ,ustomer has to fill up a ), .orm* if the amount e/ceeds FD333%33% ), .orm* descri es the purpose of sending the TT% D5 The dollar amount comes to the Head office of !BL through American >/press# 0e( Por"% 25 !BL# Mohammadpur corporate ranch sells the dollar to Head <ffice and collects the money in local currency% Student 2ile #pening, Student can endorse FD33%33 at a time in his o(n name% But if the amount e/ceeds FD33%33# then the student has to open a student file% .or opening a student file# the follo(ing documents are re8uired

Preliminary application and information for admission% Letter of appro+al y the uni+ersity of the student% A filled$in application form for foreign currency in a road% )Transcript of Records* gi+en for the last degree y the uni+ersity% ,ertificate gi+en y the Board for S%S%,% ? H%S%,% or e8ui+alent e/amination% A photocopy of I$D3 form%

In case of tuition fees# applicant must send the currency in fa+or of the institute% He cannot ta"e the fees of the institute (ith him personally% ;sually a student has to endorse at least one third of the fees of a year% '.' Pri&ate Remittance

.oreign nationals lea+ing Bangladesh permanently after e/piry of period of ser+ice in terms of rele+ant employment contracts may transfer a road their genuine sa+ings out of salaries? enefits clearly stated in the employment contracts duly appro+ed y the Board of In+estment 4B<I5% They shall also e eligi le to transfer a road the retirement enefits

such as pro+ident fund# pension# and gratuity due as per employment contracts appro+ed y the B<I% 1% 1. The A6s may# (ithout prior appro+al of Bangladesh Ban"# effect remittance of retirement enefits and sa+ings including sale proceeds of in+estments in go+ernment securities 4 ut not including sale proceeds of real assets such as household articles# real estates and other real assets# re8uests if any for remittance of such sale proceeds should e for(arded to Bangladesh Ban"5% '.( 2oreign 1Hchange Accounts 3ostro Account, 0ostro account means )our account (ith you*% A 0ostro account is a foreign currency account of a an" maintained y its foreign correspondents a road% .or e/ample# ;S 6ollar Account of Southeast Ban" Limited is maintained (ith ,iti an"# 0%A# 0e( Por"# ;SA is a 0ostro account of Southeast Ban" Limited i%e% from the point of +ie( of Southeast Ban" Limited# it is their 0ostro Account% Bostro Account, Rostro account means )your account (ith us*% The account maintained (ith foreign correspondent in a an" of a particular country is "no(n as Rostro account% .or e/ample# State Ban" of India@s Ta"a account maintained (ith Southeast Ban" Limited 6ha"a is the +ostro a?c i%e% from the point of +ie( of Southeast Ban" Limited it is a +ostro account held for state an" of India% Ahat is the 0ostro account for a an" in a particular country is a Rostro account for the an" a road maintaining the account thus the account of Southeast Ban" Limited (ith Standard ,harted Ban"# London regarded as it@s 0ostro account held (ith Standard ,harted Ban"# (hile Standard ,harted Ban"# London regards it as it@s Rostro account held for Southeast Ban" Limited% Loro Account, Loro account means )their account (ith you*% Account maintained y third party is "no(n as Loro account: suppose Southeast Ban" Limited is maintaining an account (ith ,iti Ban" 0%A 0e( Por" and at the same time !anata Ban" is also maintaining a nostro account (ith ,iti Ban" 0%A 0e( Por"% .rom the point of +ie( of Southeast Ban" Limited !anata Ban"@s account maintained (ith ,iti Ban" 0%A 0e( Por" is the Loro account% ,omparison foreign remittance !anata Ban" Ltd Mohammad ,orporate Branch from D33E$D311

.oreign Remittance of !anata Ban" Ltd Pear 4Ta"a In Lac5 D33E IGJ%3I D33G HGJ%2I D33J JJI%3C D313 CCD%D1 D311 CE2%12 .a$le (, 2oreign Remittance of Janata Bank Ltd '.) Letter of /redit DL7/E 5ocumentary /ollection

Introduction Letter of ,redit L?, also "no(n as 6ocumentary ,redit is a (idely used term to ma"e payment secure in domestic and international trade% The document is issued y a financial organi7ation at the uyer re8uest% Buyers also pro+ide the necessary instructions in preparing the document% The International ,ham er of ,ommerce 4I,,5 in the ;niform ,ustom and Practice for 6ocumentary ,redit 4;,P6,5 defines L?, as)An arrangement# ho(e+er named or descri ed# (here y an" 4the Issuing an"5 acting at the re8uest and on the instructions of a customer 4the Applicant5 or on its o(n ehalfIs to ma"e a payment to or to the order third party 4the eneficiary5 or is to accept ills of e/change 4drafts5 dra(n y the eneficiary% Authori7ed another an" to effect such payments or to accept and pay such ills of e/change 4draft5% Authori7ed another an" to negotiate against stipulated documents pro+ided that the terms are complied (ith% A "ey principle underlying letter of credit 4L?,5 is that an"s deal only in documents and not in goods% The decision to pay under a letter of credit (ill e ased entirely on (hether the documents presented to the an" appear on their face to e in accordance (ith the terms and conditions of the letter of credit% Parties to Letters of /redit Applicant D#penerE,

Applicant (ho is also referred to as account party is normally a uyer or customer of the goods# (ho has to ma"e payment to eneficiary% L, is initiated and issued at his re8uest and on the asis of his instructions% Issuing Bank D#pening BankE, The issuing an" is the one (hich create a letter of credit and ta"es the responsi ility to ma"e the payments on receipt of the documents from the eneficiary or through their an"er% The payments ha+e to e made to the eneficiary (ithin se+en (or"ing days from the date of receipt of documents at their end# pro+ided the documents are in accordance (ith the terms and conditions of the letter of credit% If the documents are discrepant one# the re9ection thereof to e communicated (ithin se+en (or"ing days from the date of receipt of documents at their end% Beneficiary, Beneficiary is normally stands for a seller of the goods# (ho has to recei+e payment from the applicant% A credit is issued in his fa+or to ena le him or his agent to o tain payment on surrender of stipulated document and comply (ith the term and conditions of the L?,% If L?, is a transfera le one and he transfers the credit to another party# then he is referred to as the first or original eneficiary% Ad&ising Bank, An Ad+ising Ban" pro+ides ad+ice to the eneficiary and ta"es the responsi ility for sending the documents to the issuing an" and is normally located in the country of the eneficiary% /onfirming Bank, ,onfirming an" adds its guarantee to the credit opened y another an"# there y underta"ing the responsi ility of payment?negotiation acceptance under the credit# in additional to that of the issuing an"% ,onfirming an" play an important role (here the e/porter is not satisfied (ith the underta"ing of only the issuing an"% 3egotiating Bank, The 0egotiating Ban" is the an" (ho negotiates the documents su mitted to them y the eneficiary under the credit either ad+ised through them or restricted to them for negotiation% <n negotiation of the documents they (ill claim the reim ursement under the credit and ma"es the payment to the eneficiary pro+ided the documents su mitted are in accordance (ith the terms and conditions of the letters of credit% Reim$ursing Bank,

Reim ursing Ban" is the an" authori7ed to honor the reim ursement claim in settlement of negotiation?acceptance?payment lodged (ith it y the negotiating an"% It is normally the an" (ith (hich issuing an" has an account from (hich payment has to e made% Second Beneficiary, Second Beneficiary is the person (ho represents the first or original Beneficiary of credit in his a sence% In this case# the credits elonging to the original eneficiary is transfera le% The rights of the transferee are su 9ect to terms of transfer% '.- .ypes of Letter of /redit

1. Re&oca$le Letter of /redit L7/ A re+oca le letter of credit may e re+o"ed or modified for any reason# at any time y the issuing an" (ithout notification% It is rarely used in international trade and not considered satisfactory for the e/porters ut has an ad+antage o+er that of the importers and the issuing an"% There is no pro+ision for confirming re+oca le credits as per terms of ;,P6,# Hence they cannot e confirmed% It should e indicated in L, that the credit is re+oca le% if there is no such indication the credit (ill e deemed as irre+oca le% . Irre&oca$le Letter of /redit L7/ In this case it is not possi le to re+o"e or amended a credit (ithout the agreement of the issuing an"# the confirming an"# and the eneficiary% .orm an e/porter@s point of +ie( it is elie+ed to e more eneficial% An irre+oca le letter of credit from the issuing an" insures the eneficiary that if the re8uired documents are presented and the terms and conditions are complied (ith# payment (ill e made% !. /onfirmed Letter of /redit L7/ ,onfirmed Letter of ,redit is a special type of L?, in (hich another an" apart from the issuing an" has added its guarantee% Although# the cost of confirming y t(o an"s ma"es it costlier# this type of L?, is more eneficial for the eneficiary as it dou les the guarantee% ". Sight /redit and Isance /redit L7/ Sight credit states that the payments (ould e made y the issuing an" at sight# on demand or on presentation% In case of usance credit# drafts are dra(n on the issuing an" or the correspondent an" at specified usance period% The credit (ill indicate (hether the

usance drafts are to e dra(n on the issuing an" or in the case of confirmed credit on the confirming an"% '. Back to Back Letter of /redit L7/ Bac" to Bac" Letter of ,redit is also termed as ,ounter+ailing ,redit% A credit is "no(n as ac" to ac" credit (hen an L?, is opened (ith security of another L?,% A ac" to ac" credit (hich can also e referred as credit and counter credit is actually a method of financing oth sides of a transaction in (hich a middleman uys goods from one customer and sells them to another% (. .ransfera$le Letter of /redit L7/ A transfera le documentary credit is a type of credit under (hich the first eneficiary (hich is usually a middleman may re8uest the nominated an" to transfer credit in (hole or in part to the second eneficiary% The L?, does state clearly mentions the margins of the first eneficiary and unless it is specified the L?, cannot e treated as transfera le% It can only e used (hen the company is selling the product of a third party and the proper care has to e ta"en a out the e/it policy for the money transactions that ta"e place% This type of L?, is used in the companies that act as a middle man during the transaction ut don@t ha+e large limit% In the transfera le L?, there is a right to su stitute the in+oice and the (hole +alue can e transferred to a second eneficiary% The first eneficiary or middleman has rights to change the follo(ing terms and conditions of the letter of creditReduce the amount of the credit% Reduce unit price if it is stated% Ma"e shorter the e/piry date of the letter of credit% Ma"e shorter the last date for presentation of documents% Ma"e shorter the period for shipment of goods% Increase the amount of the co+er or percentage for (hich insurance co+er must e effected% Su stitute the name of the applicant 4the middleman5 for that of the first eneficiary 4the uyer5% Stand$y Letter of /redit L7/

Initially used y the an"s in the ;nited States# the stand y letter of credit is +ery much similar in nature to a an" guarantee% The main o 9ecti+e of issuing such a credit is to secure an" loans% Stand y credits are usually issued y the applicant@s an" in the applicant@s country and ad+ised to the eneficiary y a an" in the eneficiary@s country% ;nli"e a traditional letter of credit (here the eneficiary o tains payment against documents e+idencing performance# the stand y letter of credit allo( a eneficiary to o tains payment from a an" e+en (hen the applicant for the credit has failed to perform as per ond% '.? Import #perations under L7/

The Import Letter of ,redit guarantees an e/porter payment for goods or ser+ices# pro+ided the terms of the letter of credit ha+e een met% A an" issue an import letter of credit on the ehalf of an importer or uyer under the follo(ing ,ircumstances Ahen a importer is importing goods (ithin its o(n country% Ahen a trader is uying good from his o(n country and sells it to the country for the purpose of merchandi7ing trade% Ahen an Indian e/porter (ho is e/ecuting a contract outside his o(n country re8uires importing goods from a third country to the country (here he is e/ecuting the contract% The first category of the most common in the day to day Reim ursements an"ing .ees and

The different charges?fees paya le under import L?, is riefly as follo(s1% The issuing an" charges the applicant fees for opening the letter of credit% The fee charged depends on the credit of the applicant# and primarily comprises of DaE #pening /harges This (ould comprise commitment charges and usance charged to e charged upfront for the period of the L?,% The fee charged y the L?, opening an" during the commitment period is referred to as commitment fees% ,ommitment period is the period from the opening of the letter of credit until the last date of negotiation of documents under the L?, or the e/piry of the L?,# (hiche+er is later% ;sance is the credit period agreed et(een the uyer and the seller under the letter of credit% This may +ary from E days usance 4sight5 to J3?1G3 days% The fee charged y an" for the usance period is referred to as usance charges%

D$E Retirement /harges 1% This (ould e paya le at the time of retirement of L,s% L, opening an" scrutini7es the ills under the L,s according to ;,P6, guidelines # and le+ies charges ased on +alue of goods% 1% The ad+ising an" charges an ad+ising fee to the eneficiary unless stated other(ise the fees could +ary depending on the country of the eneficiary% The ad+ising an" charges may e e+entually orne y the issuing an" or reim ursed from the applicant% D% The applicant is ounded and lia le to indemnify an"s against all o ligations and responsi ilities imposed y foreign la(s and usage% I% The confirming an"@s fee depends on the credit of the issuing an" and (ould e orne y the eneficiary or the issuing an" 4applicant e+entually5 depending on the terms of contract% C% The reim ursing an" charges are to the account of the issuing an"% '.18 Risk Associated 6ith #pening Imports L7/ The asic ris" associated (ith an issuing an" (hile opening an import L?,@s areThe financial standing of the importer as the an" is responsi le to pay the money on the ehalf of the importer: there y the an" should ma"e sure that it has the proper funds to pay% The goods Ban"ers need to do a detail analysis against the ris"s associated (ith perish a ility of the goods# possi le o solescence# import regulations pac"ing and storage# etc% Price ris" is another crucial factor associated (ith all modes of international trade% 1Hporter Risk There is al(ays the ris" of e/porting inferior 8uality goods% Ban"s need to e protecti+e y finding out as much possi le a out the e/porter using status report and other confidential information% /ountry Risk these types of ris"s are mainly associated (ith the political and economic scenario of a country% To sol+e this issue# most an"s ha+e speciali7ed unit (hich control the le+el of e/posure that that the an" (ill assumes for each country% 2oreign eHchange risk .oreign e/change ris" is another most sensiti+e ris" associated (ith the an"s% As the transaction is done in foreign currency# the traders depend a lot on e/change rate fluctuations%

'.11 1Hport #perations under L7/ >/port Letter of ,redit is issued in for a trader for his nati+e country for the purchase of goods and ser+ices% Such letters of credit may e recei+ed for follo(ing purpose.or physical e/port of goods and ser+ices from India to a .oreign ,ountry% .or e/ecution of pro9ects outside India y Indian e/porters y supply of goods and ser+ices from Indian or partly from India and partly from outside India% To(ards deemed e/ports (here there is no physical mo+ements of goods from outside India But the supplies are eing made to a pro9ect financed in foreign e/change y multilateral agencies# organi7ation or pro9ect eing e/ecuted in India (ith the aid of e/ternal agencies% .or sale of goods y Indian e/porters (ith total procurement and supply from outside India% In all the a o+e cases there (ould e earning of .oreign >/change or conser+ation of .oreign >/change% Ban"s in India associated themsel+es (ith the e/port letters of credit in +arious capacities such as ad+ising an"# confirming an"# transferring an" and reim ursing an"% In e+ery case the an" (ill e rendering ser+ices not only to the Issuing Ban" as its agent correspondent an" ut also to the e/porter in ad+ising and financing his e/port acti+ity% Ad&ising an 1Hport L7/ The asic responsi ility of an ad+ising an" is to ad+ise the credit recei+ed from its o+erseas ranch after chec"ing the apparent genuineness of the credit recogni7ed y the issuing an"% It is also necessary for the ad+ising an" to go through the letter of credit# try to understand the underlying transaction# terms and conditions of the credit and ad+ice the eneficiary in the matter% .he main features of ad&ising eHport L/s are, 1% There are no credit ris"s as the an" recei+es a onetime commission for the ad+ising ser+ice% D% There are no capital ade8uacy needs for the ad+ising function% Ad&ising of Amendments to L7/s Amendment of L,s is done for +arious reasons and it is necessary to fallo( all the necessary the procedures outlined for ad+ising% In the process of ad+ising the amendments the Issuing an" seriali7es the amendment num er and also ensures that no pre+ious amendment is missing from the list% <nly on receipt of satisfactory information? clarification the amendment may e ad+ised%

/onfirmation of 1Hport Letters of /redit It constitutes a definite underta"ing of the confirming an"# in addition to that of the issuing an"# (hich underta"es the sight payment# deferred payment# acceptance or negotiation% Ban"s in India ha+e the facility of co+ering the credit confirmation ris"s (ith >,B, under their )Transfer Buarantee* scheme and include oth the commercial and political ris" in+ol+ed% 5iscounting73egotiation of 1Hport L/s Ahen the e/porter re8uires funds efore due date then he can discount or negotiate the L,s (ith the negotiating an"% <nce the issuing an" nominates the negotiating an"# it can ta"e the credit ris" on the issuing an" or confirming an"% Ho(e+er# in such a situation# the negotiating an" ears the ris" associated (ith the document that sometimes arises (hen the issuing an" disco+er discrepancies in the documents and refuses to honor its commitment on the due date% Reim$ursement of 1Hport L/s Sometimes reim ursing an"# on the recommendation of issuing an" allo(s the negotiating an" to collect the money from the reim ursing an" once the goods ha+e een shipped% It is 8uite similar to a che8ue facility pro+ided y a an"% In return# the reim ursement an" earns a commission per transaction and en9oys float income (ithout getting in+ol+e in the chec"ing the transaction documents% Reim ursement an" play an important role in payment on the due date 4for nuisance L,s5 or the days on (hich the negotiating an" demands the same 4for sight L,s5% Regulatory Re+uirements <pening of imports L,s in India in+ol+e compliance of the follo(ing main regulationTrade ,ontrol Re8uirements The mo+ement of good in India is guided y a predefined se of rules and regulation% So# the an"er needs to assure that ma"e certain is (hether the goods concerned can e physically rought in to India or not as per the current >NIM policy% 1Hchange /ontrol Re+uirements The main o 9ecti+e of a an" to open an Import L, is to effect settlement of payment due y the Indian importer to the o+erseas supplier# so opening of L, automatically comes under the policies of e/change control regulations% I/P5/ Cuidelines

;niform ,ustoms and Practice for 6ocumentary ,redit 4;,P6,5 is a set of predefined rules esta lished y the International ,ham er of ,ommerce 4I,,5 on Letters of ,redit% The ;,P6, is used y an"ers and commercial parties in more than D33 countries including India to facilitate trade and payment through L,% ;,P6, (as first pu lished in 1J22 and su se8uently updating it throughout the years% In 1JJI# ;,P6, C33 (as released (ith only E chapters containing in all IJ articles% The latest re+ision (as appro+ed y the Ban"ing ,ommission of the I,, at its meeting in Paris on DC <cto er D33H% This latest +ersion# called the ;,P6,H33# formally commenced on 1 !uly D33E% It contains a total of a out 2J articles co+ering the follo(ing areas# (hich can e classified as G sections according to their functions and operational procedures% 215AI Cuidelines .oreign >/change 6ealers Association of India 4.>6AI5 (as esta lished in 1JCG under the Section DC of the ,ompanies Act 41JCH5% It is an association of an"s that deals in Indian foreign e/change and (or" in coordination (ith the Reser+e Ban" of India# other organi7ations li"e .IMM6A# the .ore/ Association of India and +arious mar"et participants% .>6AI has issued rules for import L,s (hich is one of the important areas of foreign currency e/changes% It has an ad+antage o+er that of the authori7ed dealers (ho are no( allo(ed y the RBI to issue stand y letter of credits to(ards import of goods% As the issuance of stand y of letter of ,redit including imports of goods is suscepti le to some ris" in the a sence of e+idence of shipment# therefore the importer should e ad+ised that documentary credit under ;,P C33?H33 should e the preferred route for importers of goods% '.1 0o6 to issue letter of credit '.1! S>I2. L/ throughout s6ift SAI.T is the industry$o(ned co$operati+e supplying secure# standardi7ed messaging ser+ices and interface soft(are to nearly G#133 financial institutions in D3E countries and territories# SAI.T mem ers include an"s# ro"er$dealers and in+estment managers% The roader SAI.T community also encompasses corporate as (ell as mar"et infrastructures in payment# securities# treasury and trade% <+er the past ten years# SAI.T message prices ha+e een reduced o+er G3L and relia ility JJ%JJJL of uptime% SAI.T Stands for-

SSS<,>ITPP ASA<RL6AI6> ISI0T>RBA0K .S.I0A0,IAL TST>L>,<MM;0I,ATI<0% !anata Ban" Limited is the mem er of SAI.T 4Society for Aorld(ide Inter$ an" .inancial Telecommunication5% SAI.T is a mem er o(ned co$operati+e# (hich pro+ides a fast and accurate communication net(or" for financial transactions such as Letters of ,redit# .und transfer etc% By ecoming a mem er of SAI.T# the an" has opened up possi ilities for uninterrupted connecti+ity (ith o+er C#E33 user institutions in 1C3 countries around the (orld% SAI.T is a highly secured messaging net(or" ena les Ban"s to send and recei+e .und Transfer# L?, related and other free format messages to and from any an"s acti+e in the net(or"% '.1" I*P#R. A35 1GP#R. #2 /IRR13/: 3#.1S A35 /#I3SJ 2#R1IC3 1G/0A3C1J C#L5J SILB1RJ J1>1LL1R: A35 S1/IRI.I1S 1./.

1. 4A5 In terms of Bangladesh Ban" 0otification 0os .>$1?32$BB dated Hth !anuary# D332 and .>$1?3I$BB dated D2rd March# D33I any person may ring into Bangladesh from any place outside Bangladesh (ithout any limit foreign currency notes or an" notes other than$ 4i5 ;n$issued notes and coins% 4ii5 0otes legal tender in Bangladesh in e/cess of Ta"a C33 in +alue% Pro+ided that the concerned person ma"es a (ritten declaration to the ,ustoms Authorities at the time of arri+al# in .M! .orm 4See Appendi/ C?E5 of the entire amount: no declaration (ill ho(e+er# e necessary if the amount rought in does not e/ceed ;SF C333 or its e8ui+alent in foreign currency and does not e/ceed Ta"a C33 in notes legal tender in Bangladesh% 4B5 Sending into Bangladesh y post?courier or other(ise of any currency note# an" note or coin y any person from a road (ithout general or specific permission from the Bangladesh Ban" is prohi ited%

4,5 Any tra+eler entering into Bangladesh may ring (ith him at e+ery time Bangladesh currency notes?coins (ithin the limit as prescri ed hereunder4i5 Mem ers of the cre( of a ship or an aircraft or the staff of a rail(ay may ring Bangladesh currency notes up to T"% C33 at any one time% 4ii5 An incoming?outgoing passenger may ring in?ta"e out up to Ta"a C33 4fi+e hundred5 in Bangladesh currency at the time of arri+al into?departure from Bangladesh% 465 An incoming person may retain foreign e/change up to ;SF C333 or e8ui+alent rought in y himself?herself (ithout declaration and ta"es out the same at the time of departure from Bangladesh (ithout endorsement in passport and air tic"et% Such amounts may also e deposited in R.,6 account y a resident Bangladeshi and in 0.,6 account?pri+ate non$resident ., account y a non$resident Bangladeshi any time after arri+al in Bangladesh% Amount in e/cess of ;S6 C333# rought in y the resident Bangladeshis# should ho(e+er e encased or deposited in appropriate foreign currency account (ithin 23 days of arri+al% Such amounts rought in y non$resident Bangladeshis can e encased or deposited in foreign currency account any time after return to Bangladesh% .or a foreign national# the entire amount rought in (ith declaration on .orm .M! or up to ;S6 C333 rought in (ithout declaration may e ta"en out freely at the time of departure% Such amounts rought in y foreign nationals can e encased or deposited in foreign currency account any time after their enter into Bangladesh% . In terms of 0otification 0o% 14D5 >,S?IG dated 1st !uly# 1JIG issued pursuant to su $ section 415 of Section G of the .>R Act# 1JIE Bo+ernment ha+e prohi ited# e/cept (ith the general or special permission of the Bangladesh Ban"# the import into Bangladesh from any place outside Bangladesh of4a5 any gold coin# gold ullion# gold sheet or gold ingot (hether refined or not# and 4 5 any sil+er ullion# sil+er sheet or plate (hich has undergone no process of manufacture su se8uent to rolling or any incurrent sil+er coin% Import of gold and sil+er Import of gold and sil+er into Bangladesh from any place outside is# therefore# su 9ect to the Bangladesh Ban"@s general or specific authori7ation% Beneral permission has een accorded y Bangladesh Ban" allo(ing an incoming Bangladesh national to ring in up to D4t(o5 "ilograms of gold or sil+er in ingot ? ullion form at the time of arri+al into Bangladesh# su 9ect to payment of duties and ta/es as le+ied y the Bo+t% !. Bold# as defined under Section D of the .>R Act# includes gold in the form of coin (hether legal tender or not or in the form of ullion or ingot (hether refined or not% Sil+er# as defined under the same Section of the Act includes sil+er ullion or ingot# sil+er sheets and plates (hich ha+e undergone no process of manufacture su se8uent to rolling and incurrent sil+er coin (hich is not legal tender in Bangladesh or else(here%

". There are no restrictions under the .>R Act on the import of 9e(elers and precious stones% Import of 9e(elers and precious stones is# ho(e+er# su 9ect to the Import Trade ,ontrol Regulations% '. The terms 9e(elers and precious stone are deemed to include all articles made (holly or mainly of gold# platinum# diamonds of all "inds# precious or semi$precious stones# pearls# (hether or not mounted# set or strung and articles set or mounted (ith diamonds# precious or semi$precious stones or pearls% (. There are no restrictions under the .>R Act on import of securities into Bangladesh%A/4 L/s '.1' Import Import means purchase of goods or ser+ices from a road% 0ormally consumers# firms and Bo+ernment organi7ations import foreign goods or ser+ices to meet their +arious necessities% So# in rief# (e can say that import is the flo( of goods and ser+ices purchased y economic agent staying in the country from economic agent staying a road% Regulation of Import, Import of goods into Bangladesh is regulated y the Ministry of ,ommerce in terms of the Import and >/port 4,ontrol5 Act# 1JC3 (ith Import Policy <rder issued periodically and pu lic notices issued from time to time y the office of the ,hief ,ontroller of Import and >/port 4,,I=>5% At present# it is regulated y the Import Policy 41JJE$D33D5# (hich has come into effect on !une1I# 1JJG% And Import Policy directs certain Import Procedure# (hich administers the (hole acti+ity% Import Procedure 2ollo6ed $y JBL, As an Authori7ed 6ealer# !anata Ban" Ltd Mohammadpur ,orporate Branch is al(ays committed to facilitate import of different goods into Bangladesh from the foreign countries% Import Section# (hich is under .oreign >/change 6epartment of the ranch# is assigned to perform this 9o % And to ser+e its client@s demand to import goods# it al(ays maintains re8uired formalities that are collecti+ely termed as The Import Procedure% a5 At first# the importer must o tain Import Registration ,ertificate 4IR,5 from the ,,I=> su mitting the follo(ing papers

;p to date Trade License% 0ationality and Asset ,ertificate% Income Ta/ ,ertificate% In case of company# Memorandum = Articles of Association and ,ertificate of Incorporation% Ban" Sol+ency ,ertificate etc%

Re8uired amount of registration fee

5 Then the importer has to contact (ith the seller outside the country to o tain the Pro forma In+oice% ;sually an indenter# local agent of the seller or foreign agent of the uyer ma"es this communication% <ther sources are

Trade fair% ,ham er of ,ommerce% .oreign Missions in Bangladesh% !ournals etc contract

c5 Ahen the importer accepts the Pro forma In+oice# he?she ma"es a purchase (ith the e/porter detailing the terms and conditions of the import%

d5 After ma"ing the purchase contract# importer settles the means of payment (ith the seller% An import procedure differs (ith different means of payment% The possi le means are ,ash in Ad+ance# <pen Account# ,ollection Method and 6ocumentary Letter of ,redit% In most cases# the 6ocumentary Letter of ,redit in our country ma"es import payment% Purchase ,ontract contains (hich payment procedure has to e applied% 5ifferent *eans of Payment,

,ash in ad+ance- Importer pays full# partial or progressi+e payment y a foreign 66# MT or TT% After recei+ing payment# e/porter (ill send the goods and the transport receipt to the importer% Importer (ill ta"e deli+ery of the goods from the transport company% <pen Account- >/porter ships the goods and sends transport receipt to the importer% Importer (ill ta"e deli+ery of the goods and ma"es payment y foreign 66# MT# or TT at some specified date% ,ollection Method- ,ollection methods are either clean collection or documentary collection% Again# 6ocumentary ,ollection may e 6ocument against Payment 46?P5 or 6ocument against Acceptance 46?A5% The collection procedure is that the e/porter ships the goods and dra(s a draft? ill on the uyer% The e/porter su mits the draft? ill 4only or (ith documents5 to the remitting an" for collection and the an" ac"no(ledges this% Then the remitting an" sends the draft? ill 4(ith or (ithout documents5 and a collection instruction letter to the collecting an"% Acting as an agent of the remitting an"# the collecting an" notifies the importer upon receipt of the draft% The title of goods is released to the importer upon full payment or acceptance of the draft? ill%

,omparison import of !anata Ban" Ltd Mohammad ,orporate Branch from D33E$D311 Import of !anata Ban" Ltd 4Ta"a In Lac5 G1%3I

Pear D33E

D33G D33J D313 D311

1JG%IJ 22GE D1EG%GE 1E12%IG

.a$le ), Import of Janata Bank Ltd '.1( 1Hport >/port is the process of selling goods and ser+ices to the other countries% ,reation of (ealth in any country depends on the e/pansion of production and increasing participation in international trade% By increasing production in the e/port sector (e can impro+e the employment le+el of such a highly populated country li"e Bangladesh% Bangladesh e/ports a large 8uantity of goods and ser+ices to foreign households% Readymade te/tile garments 4 oth "nitted and (o+en5# !ute# !ute$made products# fro7en shrimps# tea are the main goods that Bangladeshi e/porters e/port to foreign countries% Barments sector is the largest sector that e/ports the lion share of the country@s e/port% Bangladesh e/ports most of its readymade garments products to ;%S%A and >uropean ,ommunity 4>,5 countries% Bangladesh e/ports a out I3L of its readymade garments products to ;%S%A% Most of the e/porters (ho e/port through S>BL are readymade garments e/porters% They open e/port L?,s here to e/port their goods# (hich they open against the import L?,s opened y their foreign importers% >/port L?, operation is 9ust re+erse of the import L?, operation% .or e/porting goods y the local e/porter# an" may act as ad+ising an"s and collecting an" 4negotia le an"5 for the e/porter% /ommercial In&oice, There is no standard form for commercial in+oice% >ach e/porter designs his o(n commercial in+oice from usually a commercial in+oice is re8uired to e duly signed y the e/porter% /onsular In&oice, It is made out on a prescri ed format form certified y the consulate of the importing country stationed in the e/porter@s country% In some cases it is also seen that e/porter@s o(n in+oice are authenticated y the em assy or consulate instead of issuing consular in+oice% This type of in+oice is called legali7ed in+oice% Pro forma In&oice,

Another type of in+oice is pro forma in+oice (hich is a form of 8uotation to a potential uyer% >/porters send pro forma in+oice to the importer to get a general understanding regarding the product (ith terms and conditions% /ertified In&oice, ,ertified in+oice is an in+oice earing a signed statement y someone in the importers country that ha+e inspected the goods and found them in accordance (ith those specified in the contract The In+oice must e tallied as under

It is addressed to the importer% It is dated and signed It must ear detail description# price# 8uality and 8uantity of the goods (hich must tally (ith description in B?L = L?, In+oice tallies (ith the draft amount and L?, +alue The mar"s and num er on the pac"ing list sho(n in the B?L identical (ith those in the in+oice% Ralue of the goods calculated in the in+oice is correct on the asis of indent% It must ear# L,A 0o% Importers = Indenters registration and L?, num er Any commission to Bangladeshi agent is paya le must e deducted from the in+oice +alue% In+oice must e prepared as per the language of L?, It ears the origin of the goods ,onsular in+oice should ear the sign and stamp of the local consulate ? em assy of the importers country%

/ertificate of origin, It should e o tained from the competent authority as called y the L?, terms% In Bangladesh it is usually issued y the ,ham er of ,ommerce# Bangladesh !ute Association or Ministry of ,ommerce etc% The description of merchandise in the certificate should e the same as that gi+en in the in+oice% It must indicate the origin of the goods% It must e signed the authori7ed person% Packing List, Pac"ing list in duplicate is re8uired: there are (eight list# inspection certificate# Measurement ,ertificate# ,hemical analysis certificate# Phytosanitary# Health consumption certificate (hich are often re8uired as per contract% >ach of these documents should descri e the goods in+oiced as per L?, terms% These certificates are usually dated efore the date of shipment% Letter of .rust DL.RE, By e/ecuting the standard letter of trust 4or trust receipt5 the customer ac"no(ledges receipt of the documents of title to the goods# or the goods (hen deli+ery thereof is ta"en y him# in trust as agents for the an" until the goods are sold or used for the e/press purpose for (hich they (ere released to him% The customer also underta"es to "eep the transaction separate and assign and deposit (ith the an" the sale proceeds immediately after reali7ation ut in any case not later than the time period

stipulated in the letter% .urther# the customer underta"es to "eep the goods insured and in the e+ent the goods or any part thereof cannot e used y him for the declared purpose or on demand eing made y the an" for the return of the documentation to the an"@s custody% The trust receipt thus ena les the importer customer to ta"e redeli+ery of the documents pledged to the pledge an"% Bill of eHchange, The ill of e/change is a particular instrument through (hich payment is effected in Internal and International Trade% The payment for the goods is recei+ed y the seller through the medium of a ill of e/change 4commonly5 called draft or ill dra(n on the uyer for the amount depending on the contract% It is a 0egotia le instrument% 0egotia le Instruments act 1GG14section$ C5 defines the ill of e/change as )an instrument in (riting containing an unconditional order* signed y the ma"er# directing a certain person to pay a certain sum of money only to or to the order of a certain person or to the earer of the instruments% Parties in+ol+ed in a ill of e/change are normally three- dra(er# dra(ee and the payee% But in case the B?> is endorsed# the num er of parties may e fi+e- dra(ee# dra(er# payee# endorser and endorsee 1Hport Policy, >/port policies formulated y the Ministry of ,ommerce# B<B pro+ide the o+erall guideline and incenti+es for promotion of e/ports in Bangladesh% >/port policies also set out commodity$(ise annual target% It has een decided to formulate these policies to co+er a fi+e$year period to ma"e them contemporaneous (ith the fi+e$year plans and to pro+ide the policy regime% The e/port$oriented pri+ate sector# through their representati+e odies and cham ers are consulted in the formulation of e/port policies and are also represented in the +arious e/port promotion odies set up y the go+ernment% 1Hport Procedures, The import and e/port trade in our country are regulated y the Import and >/port 4,ontrol5 Act# 1JC3% ;nder the e/port policy of Bangladesh the e/porter has to get +alid >/port registration ,ertificate 4>R,5 from ,hief ,ontroller of Import = >/port 4,,I=>5% The >R, is re8uired to rene( e+ery year% The >R, num er is to incorporate on >NP forms and other papers connected (ith e/ports% Signing the /ontract,

After communicating uyer# e/porter has to get contracted 4(riting or oral5 for e/porting e/porta le items from Bangladesh detailing commodity# 8uantity# price# shipment# insurance and mar"s# inspection and ar itration etc% Recei&ing Letter of /redit, After getting contract for sale# e/porter should as" the uyer for Letter of ,redit 4L?,5 clearly stating terms and conditions of e/port and payment% The follo(ing are the main points to e loo"ed into for recei+ing? collecting e/port proceeds y means of 6ocumentary ,redit415 The terms of the L?, are in conformity (ith those of the contract: 4D5 The L?, is an irre+oca le one# prefera ly confirmed y the ad+ising an": 425 The L?, allo(s sufficient time for shipment and negotiation% Terms and conditions should e stated in the contract clearly in case of other mode of paymentI% ,ash in ad+ance: II% <pen account: III% ,ollection asis 46ocumentary? ,lean5 Procuring the materials, After ma"ing the deal and on ha+ing the L?, opened in his fa+or# the ne/t step for the e/porter is to set a out the tas" of procuring or manufacturing the contracted merchandise% Shipment of goods, Then the e/porter should ta"e the preparation for e/port arrangement for deli+ery of goods as per L?, and incomers# prepare and su mit shipping documents for Payment? Acceptance? 0egotiation in due time% 6ocuments for shipmentT >NP form# T >R, 4+alid5# T L?, copy#

T ,ustomer 6uty ,ertificate# T Shipping Instruction# T Transport 6ocuments# T Insurance 6ocuments# T In+oice# T Bills of >/change 4if re8uired5 T ,ertificate of <rigin# T Inspection ,ertificate# T Quality ,ontrol ,ertificate# T B%S%P% ,ertificate# 2inal Step, Su mission of the documents to the Ban" for negotiation% 1Hport 2inancing, .inancing e/ports constitutes an important part of a an"@s acti+ities% >/porters re8uire financial ser+ices at four different stages of their e/port operation% 6uring each of these phases e/porters need different types of financial assistance depending on the nature of the e/port contract% Pre$shipment credit Post$shipment credit Pre-shipment credit, Pre$shipment credit# as the name suggests# is gi+en to finance the acti+ities of an e/porter prior to the actual shipment of the goods for e/port% The purpose of such credit is to meet (or"ing capital needs starting from the point of purchasing of ra( materials to final shipment of goods for e/port to foreign country% Before allo(ing such credit to the e/porters the an" ta"es into consideration a out the credit (orthiness# e/port performance of the e/porters# together (ith all other necessary information re8uired for sanctioning the credit in accordance (ith the e/isting rules and regulations% Pre$shipment credit is gi+en for the follo(ing purposes-

,ash for local procurement and meeting related e/penses% Procuring and processing of goods for e/port% Pac"ing and transporting of goods for e/port% Payment of insurance premium% Inspection fees% .reight charges etc% An e/porter can o tain credit facilities against lien on the irre+oca le# confirmed and unrestricted e/port letter of credit in form of the follo(ings>/port cash credit 4Hypothecation5 >/port cash credit 4Pledge5 >/port cash credit against trust receipt% Pac"ing credit% Bac" to ac" letter of credit% ,redit against Red$clause letter of credit% Post Shipment /redit, This type of credit refers to the credit facilities e/tended to the e/porters y the an"s after shipment of the goods against e/port documents% 0ecessity for such credit arises# as the e/porter cannot afford to (ait for a long time for (ithout paying manufacturers?suppliers% Before e/tending such credit# it is necessary on the part of an"s to loo" into carefully the financial soundness of e/porters and uyers as (ell as other rele+ant documents connected (ith the e/port in accordance (ith the rules and regulations in force% Ban"s in our country e/tend post shipment credit to the e/porters through1% 0egotiation of documents under L?,: D% .oreign 6ocumentary Bill Purchase 4.6BP52% Ad+ances against >/port Bills surrendered for collection: 3egotiation of documents under L7/, The e/porter presents the relati+e documents to the negotiating an" after the shipment of the goods% A slight de+iation of the documents from those specified in the L?, may raise

an e/cuse to the issuing an" to refuse the reim ursement of the payment already made y the negotiating an"% So the negotiating an" must e careful# prompt# systematic and indifferent (hile scrutini7ing the documents relating to the e/port% 2oreign 5ocumentary Bill Purchase D25BPE, Here the e/porters are also made on the asis of contract et(een the uyer and the seller (ithout the co+er of a letter of credit% In such case# documents are deli+ered to the uyer through the intermediary of the foreign correspondent of the authori7ed dealer against payment?acceptance% ,omparison e/port of !anata Ban" Ltd Mohammad ,orporate Branch from D33E$D311 >/port of !anata Ban" Ltd 4Ta"a In Lac5 IGJ%3I HGJ%2I JJI%3C CCD%D1 CE2%12

Pear D33E D33G D33J D313 D311

.a$le -, 1Hport of Janata Bank Ltd /0AP.1R, ( 5A.A A3AL:SIS A35 2I35I3CS (.1 1Hport The >/port Policy D33J$1D has underscored the need for e/panding e/port# increasing the producti+ity of e/port$oriented industries and facilitating the o+erall de+elopment of the e/port sector through capacity uilding of local e/port$oriented industries% .i+e Business Promotion ,ouncils are already in place under pu lic$pri+ate partnership to enhance the capacity and a(areness of the e/porters and mitigate the supply constrains pa+ing the (ay for enhanced uninterrupted supply of e/port products% The scope of these councils (ill e gradually e/panded% >/port statistics of the last fe( years re+eal that e/port earnings ha+e (itnessed gro(ths of 1C%HJL# 1C%GEL and 13%D2L during e/port years D33H$3E# D33E$3G and D33G$3J respecti+ely% The )>/port Policy D33J$1D* has een formulated on the asis of recommendations of a ,onsultati+e ,ommittee comprising of representati+es from the main industries?trade associations# cham ers# research organi7ations# respecti+e Ministries# 6i+isions and organi7ations so to ensure the sustaina ility of the e/port gro(th during the policy period% It is e/pected that this >/port

Policy (ill play the pioneering role in employment generation and po+erty alle+iation through urgeoning gro(th of our e/port% 2ormalities for eHport procedures, There are a num er of formalities# (hich an e/porter has to fulfill efore and after shipment of goods% These formalities or procedures are enumerated in rief as follo(s#$taining 1Hport Registration /ertificate D1R/): 0o e/porter is allo(ed to e/port any commodity for e/port from Bangladesh unless he is registered (ith ,hief ,ontroller of Imports and >/ports 4,,I = >5 and holds +alid >/port Registration ,ertificate 4>R,5% After applying to the ,,I=> in the prescri ed form along (ith the elo( mentioned necessary papers# concerned offices of the ,hief ,ontroller of Imports and >/ports issues >R,% <nce registered# e/porters can rene( the >R, e+ery year% D.he follo6ing documents are re+uiredE

Application .orm 0ationality certificate Partnership 6eed 4Registered5 Memorandum = Articles of Association and Incorporation ,ertificate Ban" ,ertificate Income Ta/ ,ertificate Ralid Trade License ,opy of Rent Receipt of the Business .irm

Securing the order: After getting >R,# the e/porter may proceed to secure the e/port order% He can do this y contracting the uyers directly through correspondence% Obtaining EXP, After registering# the e/porter applies to !anata Ban" Ltd% Aith the trade license# >R, and the ,ertificate from the concerned Bo+ernment <rgani7ation to get >NP% If the an" is satisfied# an >NP is issued to the e/porter% 1GP form generally is of " DfourE copies,

Original: ,ustoms authority reports first copy of >NP to Bangladesh Ban" after Shipment of the goods% Duplicate: 0egotiating an" reports the 6uplicate to Bangladesh Ban" in or after 0egotiation date ut not later than 1I days from the date of shipment% Triplicate: <n reali7ation of e/port proceeds the same an" to the same authority reports Triplicate%

Quadruplicate: .inally# the negotiating Quadruplicate%

an" as their office copy retains

Signing of the contract: After communicating (ith uyer the e/porter (ill contract for e/porting products from Bangladesh detailing commodity# 8uantity# price# shipment# insurance and mar"# inspection# ar itration etc% (.! 1Hport 2inance To oost up country@s >/port# !anata Ban" Limited has een pro+iding different "inds of assistance to e/porters% Some of (hich are as under-$ Pro+iding Pre$Shipment and Post$Shipment .inance# >/port Buarantee and facility etc% ,oncessional rate of interest for e/ports .inance% Bac" to Bac" L?, under onded Aarehouse facility Sight = ;nas"ed L?, against .irm ,ontract for import of ra( materials% Sight L?, under >6. >/porter@s Retention Quota A?, oth interest earing and non$interest earing% >/port incenti+e Program% Ban"ing at >/port Processing Mone Scope for esta lishment of e/port oriented industry y 133L foreign in+estment and y 9oint$+enture The sole an" to dis urse Bo+ernment >/port Promotion .und against e/port of ,omputer Soft(are = 6ata >ntry Processing ;ndergone to an agreement (ith Bangladesh Ban" to o tain fund from Bo+ernment >>. 4>8uity = >ntrepreneurship .und5 to uild up entrepreneur@s e8uity% Pro+iding ser+ices to the e/porter y utili7ing most moderni7ed technology li"e S(ift# Reuters# Internet# and .a/ etc% !anata Ban"@s >$mail no% is id$o dO9anata an"$ d%com any latest usiness information (ill e a+aila le at (e site: (((%9anata an"$ d%com ,onsultancy and ad+isory ser+ices y an e/pert group of officials% onding

Special e/port financing program to(ards computer soft(are data entry and ser+ice e/port% Salient 2eatures, A .irm or ,ompany ha+ing +alid >R,# necessary infrastructural and technical facilities and sufficient s"illed man po(er related computer% Mem er of BASIS or B,S% Ha+ing ,omputer Literacy or related professional ac"ground% Preference to the firm?company ha+ing prior e/perience Satisfactory performance ,ertificate?Acceptance Letter from ,ounterpart a road% Ralid >/port <rders are in hand% 1Hport Cro6th of Janata Bank Limited D 88(- 818E

1Hport Cro6th of Janata Bank Ltd :ear 88( 88) 8888? 818 D.aka In *illionsE )8-?) )1-'' -'"1--('! 11-'1'

.a$le ?, 1Hport Cro6th of Janata Bank Limited D 88(- 818E (." Import 2inance Import finance,

Through 8uite a good num er of Authori7ed 6ealer Branches and 11JG nos% foreign correspondents (orld (ide !anata Ban" Limited has een e/tending full range import and rele+ant finance facilities% Import Items, ,apital Machineries and Industrial ra( materials% .uel = Lu ricants% Intermediate goods% ,onsumer dura le# spare parts and e8uipments% ,onsumer goods - .ood = .ood Brains# Ba y food# Petroleum# ,6S< 4,rude 6egummed Soya ean <il5# ,P< 4,rude Palm <lin5 <ilseeds# ,ement ,lin"er# ,onstruction Materials# .ertili7er# ,hemicals and many other goods permissi le y Import y Import Policy of the country% 2acilities #ffered, <pening of L?, at competiti+e? reasona le margin and commission Interest at concession rate on import finance to the prime customers = interest re ate facilities% Import .rend Setting Industrial +ision to facilitate optimally# an"@s in+ol+ement has een sho(ing sharp rising trend as under-

:ear 88( 88) 8888? 818 .a$le 18, Import .rend of JBL

.aka in *illion 1 --8? -"8('."8 1 ?"1! 11-' ' 1-!)""

(.' Budget and Performance No Interest Income # Interest >/penditure ! Interest Margin41$D5 ' ( ) * + Raria le ,ost , $ #" Total <perating ,ost 4HUEUG5 <perating Profit 4C$J5 917.50 6,470 11,000 829.70 6,617.20 12,036.40 637.60 5,350 8,500 568.70 5,119 8,578.12 Salaries and Allo(ances .i/ed ,ost In+estment Income Including <ther Income Total operating Income 6,400 11,070 17,470 5,000 552.50 7,067.20 11,566.40 18,653.60 5,155.30 632.20 5,050 8,800 13,850 4,064 647.90 4,491.02 9,206.10 13,697.12 3,996.58 553.72 11,900 11,960.30 10,500 10,376.98 18,300 19,027 15,550 14,868 !"#" &ctual !""$ &ctual

%udget

%udget

.a$le 11, Budget and Performance DInder 1GP#R. Policy 88?- 81 E (.( Rules and Regulation to $e follo6ed for 1Hport of product The conditions stipulated in this Policy or in other related la(s# and the rules and regulations related to foreign currency e/change issued from time to time y the Bangladesh Ban" ha+e to e follo(ed in case of e/port of goods from Bangladesh% Besides# rele+ant documents (ithin the scope of the a o+e$mentioned conditions and rules and regulations ha+e to e follo(ed% /ontrol of 1Hport of Products, ;nder this Policy# e/port of products (ill e controlled in the follo(ing (ays such as-$

1Hport Prohi$ited Products, ;nless other(ise stated# products prohi ited under this >/port Policy cannot e e/ported% Anne/ $1 reads the list of e/port prohi ited products% Products under /onditional 1HportProducts (hich are e/porta le under some conditions can e e/ported only after fulfilling those conditions% Such products ha+e een listed in Anne/$D% 1Hporta$le Products, ;nless other(ise stated# all other products e/cept the products enlisted in Anne/$1 and Anne/$D# i%e% e/port prohi ited products and the products (hose e/port is contingent upon certain conditions shall e freely e/porta le% 3othing in this policy shall $e applica$le to the follo6ing, Store# e8uipment or spare parts of ships# +ehicles or aircrafts ound for going a road# and products declared as their "itchen items# or the aggage accompanied y the sailors or the cre(s and passengers of those ships# +ehicles or aircrafts% 1Hport of samples su$%ect to fulfillment of the follo6ing conditions,

The product is not e/port prohi ited: A ma/imum of ;SF C#333 (orth of products 4e/cept medicine5 ased on .<B price 4free on oard5 per e/porter per year: Products sent as samples free of cost: pro+ided that in case of medicine the ma/imum shall e 415 ;SF 23#333 if there is no e/port L?, 4letter of credit5# or 4D5 CL of the total +alue of the L?, or ;SF C333# (hiche+er is less% Bangladesh Ban" can increase these limits e/amining each case# if necessary% .or 133L e/port$oriented garment industries# a ma/imum of ;SF E#C33 (orth of samples of readymade garments per year: The diamond processing farms ha+ing ond licenses issued from the ,ustoms ond ,ommission rate or diamond producing? diamond$studded 9e(elry processing farms registered as producers (ith RAT ,ommission rate# under 0ational Board of Re+enue can send a road cut and polished diamond?diamond$ studded 9e(elry (orth of ;SF C3#333 annually (ith a +ie( to participating in international trade fair or sho(casing for e/port mar"et de+elopment% In this case the samples must e rought ac" to the country after the sho(% Ho(e+er# if the samples are sold# all sale proceeds must e repatriated through legal an"ing channel and the amount of the proceeds shall not e less than the +alue of the samples: Promotional materials 4 rochure# poster# leaflet# anner etc%5 of any price or (eight: Bift parcel (orth of ;SF 1#333 or e8ui+alent in Bangladeshi Ta"a: Bonafide aggage of tra+elers tra+eling outside Bangladesh: and Relief materials e/ported y the Bo+ernment%

(.) S>#. Analysis of Janata Bank Ltd Business Strength Second Largest an" of the country Aide net(or" of GEI Branches across the countries Holds a sound reputation in the an"ing industries Sponsoring y the go+ernment Personali7ed ser+ices Aell connected distri ution channel from Head <ffice to all ranches Healthy correspondents relationships (ith foreign an"s Pro+ide a record usiness in international trade and remittance Ma9ority of the ranches run (ith computers under centrali7ed net(or" Sound and large capital ase Sustaina le gro(th% >eakness Lac" of using single softer to integrate all the ranches of the an"% Lac" of ne( product 0ot implementing the <nline Ban"ing in all acti+ities #pportunityMaintaining re8uired ,apital Ade8uacy Business e/pansion in capital mar"et Bradual e/pansion of ranch net(or" Progressi+e automation of the ranches Real online an"ing soft(are (ill e in function soon >/pansion of ATM and ,redit ,ard

,onsideration of prime customers% .hreat Mismanagement of administration Strong interference of ,BA 4,ollecti+e Bargaining Agent5 /0AP.1R, ) R1/#**135A.I#3 A35 /#3/LISI#3 ).1 Recommendation Ceneral Banking 5epartment, If the enter general Ban"ing system is fully computeri7ed then they satisfy the customer y pro+ide fast ser+ice% If they esta lish most po(erful net(or"ing system (ith their ranches then it can easily transfer data (ithin short time% If they cancel the introducer system then they can collect more deposit through ne( account and it also satisfied the customer% Loan and Ad&ance 5epartment, Try to a+oid gi+ing loan the political person (ho had ad reputation of loan repaying% >+aluate the securities +alue properly to a+oid the ris" of loan reco+ery% The punishment system should e esta lished to discourage the unla(ful acti+ities of employee% Bangladesh Ban" should more acti+e to pro+ide ,IB report% 2oreign 1Hchange 5epartment, In .oreign >/change 6epartment it is re8uire communicating (ith foreign an" fre8uently and 8uic"ly% To ma"e the process easy and 8uic" the (hole system should e computeri7ed and modern communication media for e/ample e$mail# fa/# Internet should e used% If they are ,ommunicate more foreign countries then they pro+ide more ser+ices to their customers%

If they esta lish direct procedure of Letter of ,redit for their customer import and e/port then they achie+e more customer% ). Suggestions This is recommended that some aspect of !anata Ban" Ltd can e supporti+e for management to get some pioneering ideas for the pro a le situations of the identified pro lems to ensure etter progress in future: some necessary steps are recommended elo( on the asis of collected data# o ser+ation# e/pert staff@s opinion and my "no(ledge and 9udgment% V.or impro+ing customer satisfaction the information related to customer should e a+aila le to the ranch% V.or impro+ing customer satisfaction so many facilities should e emphasi7ed y the an" on priority asis% V.or the customer@s satisfaction ser+ice deli+ery should e gi+en (ithin 13$1C minutes% VAhile deli+ering of ser+ices friendly eha+iors should e ensured y the employees ecause it ecomes a necessity of customers% V.or etter customer satisfaction the interest rate of the an" should e as fe(er as possi le% VThe product and ser+ices of the an" should e ne( and competiti+e% V.or impro+ing customer satisfaction an" should launch customer complain o/ in e+ery ranch% V.or etter satisfaction an" could initiate to esta lish customer ser+ice center for its customers% VThe etter interior and nice location of the ranch could e an incenti+e for customer satisfaction% VA+aila le sitting arrangements for customers in the an" could e a good sign for satisfaction of customers% V6efinitely to e competiti+e and ensuring of faster ser+ices for customer@s satisfaction online an"ing system should e start all o+er the ranches as fast as possi le% V,ustomers are delighted (ith ser+ices of the an" ut not in greater e/tent%

V<nline an"ing ser+ices should e introduced y all o+er the ranches as soon as possi le% VBan"ing ser+ices may e gi+en DI hours on the main ranches if possi le% VATM ooth should commercial areas% e a+aila le especially in the ma9or areas% Li"e city and

VTo"en system can e introduced in case of ser+ice pro+iding in the an"% VProduct and ser+ices should e according to customer@s satisfaction and ne( one% VThe an" may use the intern student in research (or" to measure the customer satisfaction# product and ser+ice demand and current mar"et situation of their an" esides the daily (or"% ).! /onclusion Internship is a ridge et(een theoretical "no(ledge and practical "no(ledge% 0o( that I ha+e completed my Internship# I elie+e the e/perience I ha+e gathered (or"ing in the official en+ironment (ill e pro+en +ital for me to go ahead in my professional life% 6uring my internship I ha+e reali7ed ho( modern Science and Information Technology ha+e een contri uting more and more to the de+elopment of operational and management process% To ser+e customers (ell# companies need to e s"illful in many areas faster de+elopment of ne( usiness strategies# shrin"ing company formalities# reducing procedure times# impro+ing customer ser+ice and increasing and maintaining "no(ledge for accomplishing all these goals% As an internee of !BL# I ha+e truly en9oyed my internship from the learning and e/perience +ie(point% I am confident that this three months internship program at !BL (ill definitely help me to reali7e my further carrier in the 9o mar"et% The an" is maintaining a (ell$structured communication from top to ottom le+el% >ach official needs to e +alued and treated as a part of the an" and they must ha+e the pri+ilege to de+ote themsel+es for the etterment of ser+ice of the an"% !anata Ban" places utmost importance on managing credit ris"% The (hole process includes management of ,redit Ris"# .oreign >/change Ris"# Pre+ention of money Laundering# Asset lia ility Management# Internal control and ,ompliance% As there are lots of local and foreign an"s in Bangladesh the !BL is promising commercial Ban" among them% In this competiti+e mar"et !BL has to compete not only the others commercial an"s ut also (ith the pu lic Ban"% !BL is more capa le of contri uting to(ards economic de+elopment as compared (ith other an" of !BL% !BL In+ested more funds in e/port and import usiness% It is o +ious that the right thin"ing of this an" including esta lishing a successful net(or" o+er the country and increasing

resources (ill e a le to play a considera le role in the portfolio of de+elopment% Success in the an"ing usiness largely depends on effecti+e lending% Less the amount of loan losses# the more the income (ill e from ,redit operations the more (ill e the profit of the !BL Limited and here lays the success of ,redit .inancing% 6uring the course of my practical orientation I ha+e tried to learn the practical an"ing acti+ities to reali7e it (ith my theoretical "no(ledge# (hich I ha+e greathearted and going to ac8uire from +arious courses of my BBA program% Share W

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