General Banking Function of EXIM Bank - Assignment Point
General Banking Function of EXIM Bank

Main purpose of this report is to analysis General Banking Function of EXIM Bank Limited. Other objectives are to know the Investment procedure and know the important feature of different Investments of EXIM Bank. Report also focus on overall idea about Islamic Banking System that is based on the Al-Quran and Sunnah. Finally identify the problems related to investments and recommend actions that may be necessary to redesign the investments of EXIM Bank Ltd.

Objective of the Report

  • To know the Investment procedure of EXIM Bank Ltd.
  • To know the important feature of different Investments of EXIM Bank Ltd.
  • To have an overall idea about Islamic Banking System that is based on the Al-Quran and Sunnah.
  • To know about the interest free Banking System and how it could be processed.
  • To identify the problems related to investments faced by EXIM Bank Ltd.
  • To recommend actions that may be necessary to redesign the investments of EXIM Bank Ltd.

 

 

Methodology

In order to conduct such a study the report preparer must follows some specific methods. They are given below-

Variables – in the report variables are used banking system. Two variables are-

a) Islamic system

b) Conventional system

Analytical Method

  1. Descriptive method
  2. Conventional versus Islamic banking
  3. Performance and Growth
  4. SWOT analysis

 

Sources of Information:

Primary data

Primary data will be collected by interviewing employees and manager of Exim bank, new Eskaton branch and directly communication with the customers. A questionnaire survey will be done to minimize interruption of the banking activities. Primary data will be mostly derived from the discussion with the employees & through surveys on customers of the organization. Primary information will be under consideration in the following manner;

  • Face to face conversation with the employees
  • Appointment with the top officials of the Bank
  • By interviewing customers at Exim Bank, New Eskaton Branch.

Secondary data

Secondary sources that will be used in the study will include:

Internal Sources

  •    Bank’s Annual Report
  •    Group Business Principal manual
  •    Group Instruction Manual & Business Instruction Manual
  •    Prior research report
  •    Any information regarding the Banking sector

External Sources

  • Different books and periodicals related to the banking sector
  • Bangladesh Bank Report
  • Newspapers

 

Background of Exim Bank Bangladesh Ltd.

Export Import Bank of Bangladesh Limited was incorporated in Bangladesh on June 2 1999 as a banking company under the companies Act 1994. The Bank converted its banking operation into Islamic Shariah from traditional banking operation on 1st July 2004 after obtaining approval from Bangladesh bank. Exim bank went for public for issuing shares in the year 2004. Though this bank started its business in 1999 but its growth rate was 40.68 % in 2004 and till 2007 it has grown over 200 % from 2004. The bank has increased its branches to 40 at present and a huge number of customers are getting services from them each day. That indicated that Shariah banking has an effect on the growth of the bank. Within an operative period as short as six years, the bank has arrived at a strong financial and business position by expanding its market share compared to its contemporaries and to some extent to the 2nd even 1st generation banks of private sector. In addition, the Bank has also made a significant contribution to the national economy under the prudent leadership and untiring support of the member of the Board of Directors, who are leading business personalities and reputed industrialists of the country.

 

Vision of the Bank

Our vision is ‘Together towards Tomorrow’. Export Import Bank of Bangladesh Limited, as the name implies, is not a type of Bank in some countries on the globe, but is the first of its kind in Bangladesh. It believes in togetherness with its customers, in its march on the road to growth and progress with services. To achieve the desired goal, there will be pursuit of excellence at all stages wok a climate of continuous improvement, because, in Exim Bank, we believe, the fme of excellence is never ending. Bank’s strategic plans and networking will strengthen its competitive edge over others in rapidly changing competitive environments. Its personalized quality services to the customers with the trend if constant improvement will be cornerstone to achieve our Operational success.

 

Mission of the Bank:

The bank  chalked out the following corporate objectives in order to ensure smooth achievement of its goals:

  • To be the most caring and customer friendly and service oriented bank,
  • To create a technology based most efficient banking environment for its Customers.
  • To ensure ethics and transparency in all level.
  • To ensure sustainable growth and establish full value of the honorable shareholders, and
  • Above all to add effective contribution to the national economy.

 

Finance/ Investment;

  • Corporate Finance
  • Industrial Finance » Lease Finance
  • Hire Purchase Finance
  • Commercial Investment
  • Project Finance
  • Syndicate Investment
  • Retail Investment
  • Mortgage Invesrment
  • Loan against Share and Securities

Exchange;

Non Resident Foreign Currency Deposit Account(NFCD) Foreign Currency Deposit Account

Savings Scheme:

  • Monthly Savings Scheme(Money Grower)
  • Monthly Income Scheme(Steady Money)
  • Double the deposit in 6 years (Super Savings)
  • 10 years deposit-more than triple (Multiples Savings)
  • Education Savings Scheme

Bank emphasizes on non-fund business and fee based income. Bid bond/ bid security pew be issued at customer’s request.

Exim Bank is posed to extend L/C facilities to its importers / exporters through lishment of correspondent relations and Nostro Accounts with leading banks all fcier the world. Moreover, Consumers can deposit their Telephone bill of Grameen Rone in all the branches except Motijheel and the consumers of Palli Buddut somity rf Gazipur can deposit their electricity bill to Gazipur branch.

 

E-CASH/ ATM SERVICE

The bank is currently providing Credit Card Service (MasterCard) to the privileged mers of the bank in collaboration of Prime Bank. Floating VISA card for both >it and Credit card service is under process.

 

Bank Operational Area

Export and Import Trade Handling and Financing

As a commercial Bank, bank’s do all traditional Banking business including the wide noge of savings and credit scheme products, retail banking and ancillary services •Mb the support of modern technology and professional Excellency .But our main feus is, for obvious reason, on export and import trade handling and the development

Achievements

is a great pleasure that by the grace of Almighty Allah, we have migrated at a time •A the branches from its conventional banking operation into Shariah based Islamic poking operation without any trouble. Lot of uncertainties and adversities were there this migration process. The officers and executives of our bank motivated the customers by counseling and persuasion in light with the spirit of Islam especially for the non-Muslim customers. Our IT division has done the excellent jpb of converting and fitting the conventional business processes into the processes based cd Shariah. It has been made possible by following a systematic procedure of migration under the leadership of honorable Managing Director.

 

Capital and Reserves

The Bank started its voyage with an authorized capital of TK 1,000 million whole it’s initial paid up capital was TK.225.00 subscribed by the sponsors in the year 1999. The Capital and Reserve of the Bank as on 31st December 2005 stood at TK. 2179.81 million including paid up capital of TK.878.S5 million. The Bank also made provision m unclassified investment which in amounted to TK.263.18 million.

Figure in crore

SI. NoParticulars2004200520062007
1Authorized100.00100.00350.00350.00
2Paid-up Capital62.7887.90171.38214.22
3Reserve Fund35.7357.0081.09113.46
4Deposits1907.822831.903503.204154.66
5Investment(General)1933.202604.603264.134019.52
6Investment(Share on Bonds)154.30163.30223.33245.77
7Foreign Exchange Business4931.247294.009617.5111790.01
 a)   Import Business2678.104143.204959.676139.94
 b)   Export Business2241.843128.504623.465579.09
 c)   Remittance11.3122.3034.3871.03
8Operating Profit83.58117.58137.87190.82
9Loan as a % of total Deposit101.33%91.97%93.18%96.75%
10No. of Foreign Correspondent200222246246
11Number of Employees76893410201104
12Number of Branches28283035
13Return on Assets3.44%1.65%1.73%2.00%

 

Profit of this Bank as of 2004 to 2007

From the figure as well as from the profit and loss account data we can see that it has increased day by day. In 4004 there was a value of 387,114,999 and it percentage rate was 15%where in 2005 was 519,304,533 and percentage was 21%. In 2006 there value was 671,000,470 and percentage was 27% and in 2007 there value was 932,513,965 and percentage was 37%. From this information we can say that the profit of this bank is increasing day by day for there efficient worker as well as for there better management body.

Table : Profit of this bank

YearAmount TK
2004387,114,999
2005591,304,533
2006671,000,470
2007932,513,965

 

Total Assets

The total asset of the Exim bank has differed from one year to another year. The figure shows the 2005 there was a small position from the 2007. It has increased day by day and it is increasing. That means we can say that the bank total asset in increasing for there better service well as there better performance.

 

Total Assets

YearAmount TK
200533,716,699,328
200641,793,540,962
200751,503,027,985

 

Total Liabilities and Shareholders Equity

2005 there total liabilities and shareholders equity was 27 % where 2006 is 33 % and in BOOT it increased at the percent of 40 %. Form this information we can say that it has sufficient to do this and if it occurs more it will be hampered.

 

Total Liabilities and Shareholders Equity

YearAmount TK
200533,716,699,328
200641,793,540,962
200751,503,027,985