Internship Report on General Banking Activities of Exim Bank
Subject: Banking | Topics:

The main objective of this report is to analysis General Banking Activities of Exim Bank. Other objectives of this reports are  to present an overview of EXIM bank limited, to know different types of general banking activities of EXIM bank limited, to evaluate all types of general banking activities of EXIM bank limited, to identify some problems of EXIM bank limited.

 

Objectives of the study

Objectives:

  • To present an overview of EXIM bank limited.
  • To know different types of general banking activities of EXIM bank limited.
  • To evaluate all types of general banking activities of EXIM bank limited.
  • To identify some problems of EXIM bank limited.
  • To prescribe some recommendations for the improvements of EXIM bank limited.

 

Methodology of the Study 

Type of study:

This research is a descriptive research in nature.

Types of data:

This report is based on both primary data and secondary data.

Population:

The report has been prepared on general banking practice of EXIM bank limited. For the purpose of the study, all branches of EXIM bank limited have been considered as target population of the study.

Sample size:

Only one branch of EXIM bank limited has been taken as the sampling unit for the study. i.e. Bashundhara road branch, Dhaka.

Sampling techniques:

Random sampling technique has been applied to select sample for the purpose of the study.

Method of data collection:

Observation method and direct interview method have been used for the collection of data that are used in the study.

Primary data collection:

All the necessary information are collected by using –

  • Observation while working in different desk.
  • Face to face conversation with the different clients and officials of the bank.
  • Interviewing with the bank officials of EXIM bank limited, Bashundhara road branch.
  • Official records and observing the total environment.

Secondary data collection:

Secondary data are collected by using –

  • Brochure and prospectus of EXIM bank limited.
  • Annual report of EXIM bank limited.
  • Some internship reports which have been prepared on banking sector.
  • Various published documents of EXIM bank limited.
  • Website of EXIM bank limited. (eximbankbd.com)

 

PRODUCTS AND SERVICES OF EXIM BANK LIMITED

Deposit Products

The bank introduced a number of financial products and services since its banking operation.

  • Mudaraba Savings Deposit,
  • Mudaraba Short Term Deposit
  • Mudaraba Term Deposit,
  • Mudaraba Monthly Income Scheme,
  • Mudaraba Monthly Saving Scheme,
  • Mudaraba Super Savings Scheme,
  • Mudaraba Hajj Scheme.

Investment Products

  • The bank provides credit services such as,
  • Corporate finance,
  • industrial finance,
  • lease finance,
  • hire purchase finance,
  • commercial investments,
  • project finance
  • syndicate loans.

L/C (Import & Export) Products

EXIM Bank is posed to extend L/C facilities to its importers / exporters through establishment of correspondent relations and Nostro Accounts with leading banks all over the world.

Foreign Exchange

  • Non Resident Foreign Currency Deposit Account (NFCD)
  • Foreign Currency Deposit Account
  • Letter of Credit (L/C) facilities through establishment of correspondent relations with leading banks all over the world.

 

SWOT ANALYSIS OF EXIM BANK

Export import bank of Bangladesh limited is a big-size commercial bank of Bangladesh. But the bank is not much aged. The bank is one 12th year. The bank has not been able to introduce the most modern services yet. The bank has 62 branches and 10 ATM booths. The bank is about to grab the hi-tech facilities for a generalized point of view we can make a simple SWOT analysis for EXIM. SWOT for EXIM can discover the following.

Strengths:

  • A highly motivated team
  • 63 branches
  • Good management
  • Cooperation with each other
  • Financial strength
  • Membership with swift
  • Online banking services
  • ATM Network
  • huge business area

Threats:

  • different services of FCBS’ ( phone banking/ home banking)
  • more modern banking services of other banks
  • daily basis interest on deposit offered by HSBC
  • Anti- Islamic propaganda
  • More rich of other banks by more branches

Opportunities:

 

  • Modern banking services
  • Services for the rural people
  • Change in political environment
  • Good banker customer relationship

Weakness:

  • Distributed database systems
  • Lack of proper motivation, training and job rotation
  • Limited ATM booths
  • No customer differentiation
  • Lack of specialization
  • Facilities only for city dwellers
  • Lack of experienced employees in junior level management

 

Introduction

All business concerns to earn a profit through selling either a product or service. A bank does not produce any tangible product to sell but does offer a variety of financial services to its customers. General banking is the starting point of all the banking operations. It is the development, which provides day to day services to the customers. Every day it receives deposits from the customers and meets their demand for cash by honoring cheques. It opens new accounts, remit funds, issue bank drafts and pay orders etc, since bank is confined to provide the service everyday , general banking is also known as “retail banking” . The EXIM bank limited ( bashundhara road branch) offers various types of general banking components. They are very essential tools for the bank to serve the customers to attract new customers the bank has to launch new components or refurnished their existing products. For proper functioning and excellent customer service this department is divided into various sections namely as follows:

  • Accounts opening section
  • Cash section
  • Deposit section
  • Remittance section
  • Bills and clearing section
  • Accounts section
  • Dispatch section

Account opening section:

This section deals with opening of different types of accounts .it is also deals with issuing of checkbooks and different accounts openers. A customer can open different types of accounts through this department such as:

  • AL-Wadiah current deposit
  • Mudaraba saving deposit
  • Mudaraba Short Term Deposit
  • Mudaraba Term Deposit
  • Mudaraba Savings scheme
    • Mudaraba Super Saving Scheme
    • Mudaraba Monthly Saving Scheme
    • Mudaraba Multiplus Saving Scheme
    • Mudaraba Monthly Income Scheme
    • EXIM Bank Hajj Account Project
  • Education Saving Scheme
  • Foreign currency Account

Al-wadiah current deposit account:

Al-Wadiah Current Account follows the Principle of Islami Shariah wherein the bank is deemed as a keeper and trustee of funds as Al-Amana (on Trust). This deposit that operates by taking permission from depositors would be taken to use their fund according to Shariah Principle and depositors would not receive any kind of profit. As such the bank is under obligation to return the entire money on demand by the customer. The account is not time barred i.e. Account Holder can withdraw money as many numbers of times as he wishes in a working day.

Main Feature

  • Halal way or without Riba (interest or usury) transaction
  • Unlimited deposit or withdrawal
  • No profit will be given
  • Cheque book facilities
  • ATM Card
  • Free online transaction
  • No Over Draft will be allowed in the account
  • SMS banking service includes balance inquires/Mini-statement by mobile phone

Required Documents

  • Account opening duly filled up and signed by account holder
  • 02 Copies passport size photographs of every operators duly attested by introducer
  • Photographs of National ID Card/Passport/Chairman certificates
  • Introducer signature

Terms and Condition

  • Bank may use the fund at its own discretion with prior permission of the account holder and without any risk to the account holder
  • Customer may be withdraw the entire (or part of) fund without any notice to the bank

 

Mudaraba Saving Deposit:

Mudaraba savings account is opened under the Mudaraba principal of Islami Shariah. Under the above principal the clients is the Shaheb-Al Mal and the Bank is Mudarib. Mudaraba Saving’s accounts are mainly meant for Non-Trading customers who have some potential saving with small no. of transactions taking place. More than one person can open and operate a Mudaraba savings account. A guardian on behalf of a minor can open a Mudaraba Savings A/C. In which case a declaration stating the date of birth of the minor should be obtained from the guardian. OD is not allowed for SB account. The account provides expected half-yearly provisional profit.

Main Feature

  • Attractive provisional rate of profit
  • Minimum initial deposit is Tk.1000.00
  • Half-Yearly account statement
  • Debit card Facility with limited withdrawal
  • Free ATM Cash withdrawal from all ATM of EXIM Bank
  • SMS Banking for statement/Balance checking
  • Salary crediting facility
  • Cheque book facility
  • Fund transfer facility
  • Profit will be calculated on monthly basis

Required Documents

  • Completed account opening form duly signed by account holder
  • 02 Copies passport size photographs of every operators duly attested by introducer
  • Photographs of National ID Card/Passport/Chairman certificates
  • Introducer signature
  • Passport size photographs and signature of Nominee

Terms and conditions:

  • Account will be operated as per Mudaraba principals.
  • At least 65% of investment income will be distributed among the Mudaraba Depositors as per weightage allocated for each accounts.
  • Mudaraba Savings Deposit will bear 0.75 weightage

Mudaraba short term deposit

It is known as time liabilities or form deposits. These are deposits, which are made with bank for a fixed period specified in advance. The bank need not maintain cash reserves against these deposits and therefore, the bank offer higher rate of profit on such deposits.

Mudaraba Term Deposit:

Mudaraba Term Deposit Receipt (MTDR) account is opened under the Mudaraba (Profit Sharing) principal of Islami Shariah. Under the above principal the clients known as Shaheb-Al Mal provides 100 percent of the capital and the Bank known as Mudarib is the one providing its specialist knowledge to invest the capital and manage the investment project. It is issued by our Bank branches against deposit of certain amount of money by customer(s)/person(s)/organisation, after observing the rules of Anti Money laundering, for a fixed period but not less than one month with a commitment to return his/their deposited money with more or less certain percentage of profit (Tax applicable) after expiry of the period. The minimum amount of MTDR, rate, renewal procedure and premature encashment rules determined & circulate by our Head Office from time to time. These deposits are repayable subject to a period of notice and hence known as time deposit or time liabilities meaning thereby that these are withdraw able subject to a period of notice and not on demand.

Different period of MTDR products

  • MTDR for 01 month
  • MTDR for 02 months
  • MTDR for 03 months
  • MTDR for 06 months
  • MTDR for 12 months
  • MTDR for 24 months
  • MTDR for 36 months

Main Features of MTDR

  • Any adult person (individually or jointly) having sound mind or any institution/organization can open MTDR Account with any branch of the Bank.
  • Minimum depositing amount Tk.10000.00 (ten thousand) and above but multiple of Tk.100.00 (one hundred)
  • One or more account can be opened in the same name at the same branch of the bank
  • Deposit of MTDR Account will bear the following weightage:
Tenure/PeriodWeightage
01 Month0.83
02 Months0.83
03 Months0.88
06 Months0.92
12 Months0.96
24 Months0.96
36 Months0.96

Table: Weightage of MTDR account

  • Profit will be calculated on daily basis on provisional rate of profit and also applied on due date of maturity
  • Investment against lien of such receipt may be allowed up to 90% of deposited amount subject to normal terms and conditions of investment of the bank

Terms and Conditions

Normally, deposited amount of MTDR is not encashable before maturity. If any depositors intends to encash his/her MTDR Receipt before maturity due to certain unavoidable circumstances, the following terms and conditions will come into force:

  • No profit shall be allowed for premature encashment within 01(one) month
  • If the account is encashed after completion of any tenure but before maturity, depositors will be entitled to receive the benefit at the provisional rate of profit of Mudaraba Savings Account.
  • The provisional rate of profit of Mudaraba Savings Account will treat the provisional rate of profit, which was prevailed at the time of opening the MTDR account.

 

Mudaraba saving scheme

Objectives of the Scheme

Savings help to build up capital and capital is the principal source of business investment in a country. That is why savings is treated as the very foundation of development. To create more awareness and motivate people to save, EXIM Bank offers super savings scheme.

Terms and Conditions of the Scheme

  • Any individual, company, educational institution, government organization, NGO, trust, society etc. may invest their savings under this scheme.
  • The deposit can be made in multiples of Tk.5,000.00.
  • Any customer can open more than one account in a branch in his/her name or in joint names. A Deposit Receipt will be issued at the time of opening the account.
  • The Deposit will approximately be double in 6 (six) years.

Highlights of the Scheme

  • Some examples are given in the table below. Any amount can be deposited in multiples of Tk. 5,000.00.
DepositPayable (approximately) at maturity
5,000.0010,002.00
10,000.0020,004.00
20,000.0040,008.00
50,000.001,00,020.00
1,00,000.002,00,040.00
2,00,000.004,00,081.00
5,00,000.0010,00,203.00

Table: Amount on maturity against Mudaraba Super Savings scheme

  • Savings will be treated as projected and it will be adjusted after the declaration of profit at the end of the year. The weightage of deposit will be 1.17.
  • Not less than 65% of investment income shall be distributed among the Mudaraba Deposit holders as per weightage of deposit.

Premature encashment of the scheme

  • In case of premature encashment before 1 year no profit shall be paid.
  • In case of premature encashment after 1 year but before 3 years profit shall be paid at Savings Rate plus 0.75%.
  • In case of premature encashment after 3 years but before maturity profit shall be paid at Savings Rate plus 1.00%.

In case of any unexpected situation

  • In case of death of depositor before the term, the amount will be given to the nominee according to the rules of premature encashment. In the absence of nominee, the heirs/ successors will be paid as per succession certificate.
  • In case of issuing duplicate receipt the rules of issuing a duplicate receipt of Term Deposit will be applicable.
  • The nominee may, at his option continue the scheme for the full term.

Quard facility under the scheme

  • A depositor can avail quard up to 90% of the deposit under this scheme.

Additional Terms and Conditions

  • Bank reserves the right to change the weightage of deposit & percentage of distribution of Investment Income.
  • At the time of payment, Income Tax shall be deducted upon profit.

 

Mudaraba Monthly Saving Scheme (Money Grower)

Objectives of the Scheme

A monthly savings scheme. Secure your future with ease. A small savings of today will provide you comfort tomorrow.

Savings Period and Monthly Installment Rate:

  • The savings period is for 5, 8, 10 or 12 years.
  • Monthly installment is Tk. 500/-, 1000/-, 2000/- or 5000/-.
  • Not less than 65% of investment income shall be distributed among the Murabaha Depositors as per weightage. The deposit will bear weightage 1.16, 1.17, 1.18, 1.19 respectively.
  • Bank reserves the right to change the weightage of deposit & percentage of distribution of Investment Income.

Monthly Installment Deposit

  • The savings amount is to be deposited within the 10 th of every month. In case of holidays the deposit amount is to be made on the following day.
  • The deposits may also be made in advance.
  • The depositor can have a separate account in the bank from which a standing instruction can be given to transfer the monthly deposit to the scheme account.
  • If the depositor fails to make the monthly installment in time, then 5% on overdue installment amount will be charged. The charged amount to be added with the following month(s) installment and the lowest charge will be Tk. 10/- (Taka Ten).

Withdrawal

  • Generally, withdrawal is not advised before a 5 (five)-year term, but if it is withdrawn before the above term, profit will be paid at savings rate. However, no profit will be paid if the deposit is withdrawn within 1 (one) year of opening the account.
  • In case the depositor wishes to withdraw between the 5, 8, 10 or 12 years period then full profit will be paid for a completed term and savings rate will be applicable for the fractional period.

Quard Advantage

  • After 3 (three) years of savings in this scheme the depositor (if adult) is eligible for a quard up to 90% of his/her deposited amount. In that case, profit rates on the quard will be applicable as per prevailing rate at that time.

Reasons for disqualification from this scheme

  • If the depositor fails to pay 3 (three) installments in a row, then he/she will be disqualified from this scheme and profit will be applicable as mentioned in withdrawal clause.
  • If a depositor fails to pay 5 (five) installments in a row after completion of any one of these terms, then the Bank reserves the right to close the account and profit will be paid as mentioned in withdrawal clause.
  • In case of death of the depositor the scheme will cease to function. The amount will be handed over to the nominee of the deceased depositor. In case of absence of the nominee, the bank will handover the accumulated amount to the successor of the deceased.

The accumulated amount may be more or less of following table

TermMonthly Installment
500/-1,000/-2,000/-5,000/-
5 yrs.39,041/-78,082/-1,56,164/-3,90,411/-
8 yrs.74,202/-1,48,404/-2,96,809/-7,42,024/-
10 yrs.1,05,095/-2,10,190/-4,20,380/-10,50,952/-
12 yrs.1,44,461/-2,88,923/-5,77,847/-14,44,618/-

Table: Amount on maturity against Mudaraba Monthly Saving Scheme

Rules

  • A form has to be filled at the time of opening the account. Attested photographs are advised.
  • The depositor can select any of the installment amounts which cannot be subsequently changed.
  • In case of minors, the guardians may open and supervise the account in his favor.
  • A single person can open more than one account for saving under several installment amounts.
  • The accumulated deposit with profit will be returned within one month of completion of a term.
  • The depositor should notify the bank immediately on any change of address.
  • The government tax will be deducted from the profit accumulated in this scheme.
  • If necessary, at the request of the depositor, the scheme can be transferred to another branch.
  • The Bank reserves the right to change the rules and regulations of the scheme as and when deemed necessary.
  • Income Tax on profit paid shall be deducted at the time of payment.

 

Mudaraba Multiplus Saving Scheme

Objectives of the Scheme

To gather public’s idle money in exchange of high return within the shortest possible time

Terms and Conditions of the Scheme:

  • Any individual, company, educational institution, government organization, NGO, trust, society etc. may invest their savings under this scheme.
  • The deposit can be made in multiples of Tk. 5,000.00.
  • Any customer can open more than one account in a branch in his/her name or in joint names. A Deposit Receipt will be issued at the time of opening the account.
  • The period of deposit is 10 (ten) years.

Highlights of the Scheme

  • Some examples are given in the table below. Any amount can be deposited in multiples of Tk. 5,000.00.
Deposited AmountAmount payable approximately after maturity
5,000.0015,879.00
10,000.0031,758.00
50,000.001,58,793.00
1,00,000.003,17,587.00

Table : Amount on maturity against Mudaraba Multiplus Saving Scheme

  • Payable amount will depend on projection and will be adjusted after the declaration of profit at the end of the year. The weightage of deposit will be 1.17.
  • Not less than 65% of investment income shall be distributed among Mudaraba Depositors as per weightage.

In case of premature encashment

  • In case of premature encashment before 1 year no profit shall be paid.
  • In case of premature encashment after 1 year but before 3 years profit shall be paid at Savings Rate plus 0.75%.
  • In case of premature encashment after 3 years but before 5 years profit shall be paid at Savings Rate plus 1.00%.
  • In case of premature encashment after 5 years but before 8 years profit shall be paid at Savings Rate plus 1.50%.
  • In case of premature encashment after 8 years but before maturity profit shall be paid at Savings Rate plus 2.00%.

In case of unexpected situation

  • In case of death of depositor before the term, the deposit amount will be given to the nominee according to the rules of premature encashment. In the absence of nominee, the heirs/ successors will be paid on production of succession certificate.
  • In case of issuing duplicate receipt the rules of issuing a duplicate receipt of Term Deposit will be applicable.
  • The nominee may, at his option continue the scheme for the full term.

Quard facility against the scheme

  • The depositor can enjoy loan up to 80% of the deposit under this scheme.

Additional Terms and Conditions

  • Bank reserves the right to change the weightage of deposit & the portion of distribution of Investment Income.
  • At the time of payment of deposit Income Tax on profit shall be deducted.

 

Mudaraba monthly income scheme

It is an alluring and commonly accepted scheme of EXIM Bank as an investment of steady monthly return. Under this scheme, the depositor is allowed to deposit at least tk.25000 or its multiple amounts for 3 years and in return he/she will receive profit on monthly basis at 12.50% rate. This scheme mainly has been drawn up as well as introduced for the benefit of middle-income group, particularly retired personal.

EXIM Bank Hajj account project

In view of smooth arrangement for performing Hajj, EXIM bank has introduced this scheme under the tenure of 5, 8, 10, 15 and 20 years with nominal amount of deposit per month with a rate of 11%.

Education saving scheme

With a view to assisting the customer for higher education, EXIM Bank has introduced this scheme with convenient terms and conditions. One can deposit tk100 and its multiple amounts at a time. Tenures are 7, 10, 15 and 20 years term with the rate of 11.00%, 11.50%, 11.75% and 12.00% respectively.

Foreign currency account

This account provides the customer with safe and lucrative way of saving their foreign currency. All nonresident Bangladeshi are most welcome to save and remit their wages and earnings from abroad through this account.

 

SMS Banking

EXIM Bank brings SMS Banking services to provide instant access to your account information at any time. Any mobile phone user having account of EXIM Bank can get the service through the mobile phone upon registration.

What we offer in SMS Banking

  • Balance Enquiry
  • Mini Statement
  • Help Service
  • Account Information

 

ISSUE OF CHEQUE BOOK

Issuance of fresh cheque book

Fresh cheque book is issued to the account holder only against requisition on the prescribed requisition slip attached with the cheque book issued earlier, after proper verification of the signature of the account holder personally or to his duly authorized representative against proper acknowledgment.

The following procedures are maintained for issuing of a check book

  • At first the customer will fill up the check requisition form.
  • The leaves of the check book under issue shall be counted to ensure that all the leaves and the bank requisition slip are intact and the name and account number shall be written on the cover page of check book. The account number of the customers shall be entered on all the leaves of the check book and its requisition slip.
  • The name and account number of the customers shall be entered in the check book register against the particular check book series.
  • Then the register check book and the requisition slip are signed by the officer in charge of the deposit department.
  • Then the check book is handed over to the customer after taking acknowledgement on the requisition slip and register book.

A cover file containing the requisition slip shall be effectively preserved as vouchers. If the ledger keeper notices any defect, he will make a remark to that effect on the requisition slip and forward it to the cancellation officer to decide whether a new check book should be issued or not.

 

Closing of Account

The closing of an account may happen.

  • If the customer desirous to close the account.
  • If EXIM rinds that the account is inoperative for a long duration.
  • If Garnishee order is issued by the court on EXIM.

To close the account, die cheque book is to be returned to die bank. EXIM takes all the charges by debiting the account and the remaining balance is then paid to the customer Necessary entries are given to the account closing register and computer. In case of joint a/c the application for closing the a/c should be signed by all the joint holders.

 

CASH SECTION

CASH RECEIVING PROCEDURE

The work of cash receiving counter is examining deposit slips. Depositor uses the prescribed deposit slip supplied by the bank for deposit cash, check, draft, pay order etc. In all types of deposits the teller must check the following things:

  • The slip has been properly filled up.
  • The title of the account and in its number.
  • The amount in figure and in words is same.
  • Instrument signed by the depositor.
  • Date of the instrument.

After checking all these things the teller will accept cash, check, draft, pay order etc. against deposit sleep. The teller will place the cash in the cash in drawer according to denominations. The teller will place signature and affix cash receipt, rubber stamp seal and record in the cash received register book against the account number.

At the end of this procedure, the cash officer passes the deposit slip to the computer section for posting purpose and returns the customer’s copy.

CASH PAYMENT PROCEDURES –

In order to safe guard the position the paying banker has to observe the following precaution before honoring a check.

  • A check must be looked whether it is an opened or crossed check.
  • The paying officer should see whether the check is drawn on his/her branch.
  • He must see if the check is post dated or pre dated.
  • The office must carefully see the apparent tenor of the check.
  • The officer must compare the signature of the check with the signature on the specimen signature card.
  • The officer must verify the regularity of the endorsement.

The officer may allow overdue against a check if prior arrangement is done with the bank.

 

DEPOSIT SECTION

Deposit is the lifeblood of a bank. From the history and origin of the banking system we know that deposit collection is the main function of a bank is accepting deposit. The deposits that are accepted by Exim Bank like other banks may be classified in two parts.

  1. Demand Deposit.
  2. Time Deposit.

Demand Deposit

These deposits are withdrawn able without notice, e.g. Current Deposits. Exim Bank accepts demand deposits through the opening of-

  1. Current Account.
  2. Savings Account.
  3. Call deposits from the fellow bankers.

Time Deposit

A deposit which is payable at a fixed date or after a period of notice is a time deposit. Exim Bank accepts time deposits through Fixed Deposit Receipt (FDR), Short Term Deposit (STD) and Bearer Certificate Deposit (BCD) etc. While accepting these deposits, a contact is done between the banker opens an account in the name of a customer; there arises a contract between the two parties. This contract will be valid only when both the parties are competent to enter into contracts. As account opening initiates the fundamental relationship & since the banker has to deal with different kinds of persons with different legal status, Exim Bank officials remain very much careful about the competency of the customers.

 

REMITTANCE SECTION:

EXIM Bank Ltd, Bashundhara road branch maintains 3 types of remittance, which are:

  • Telegraphic transfer
  • Demand draft
  • Payment order

Telegraphic transfer:

The bashundhara road Branch allows its account holders or outsiders to send money or pay to outside branches of EXIM Bank of Dhaka through cheque or cash payment. Money is sent by using telephone or telex machine. The drawer must have an account in the sent bank. A test number is used for this transfer where the drawer must know about it.

Demand Draft:

It is similar to the telegraphic transfer except using a demand note for transferring money from branch to branch of EXIM Bank.

Pay-order:

It is a non-negotiable credit document. It is generally used as an alternative of money. It can also be used as security of the loan. A bank issues the pay-order in term of a specified fee to safely exchange of money. For transferring money, pay-order can be used as cheques where client of other banks can easily credit through clearing the pay-order.

Bills and Clearing Section:

Clearing means such a technique through which bankers can arrange of receipt or payment on mutually issued cheques or bills.

Clearing house is an office or a room where bankers gather to meet up their mutual receipt-payment through a special technique.

How the clearing is accomplished:

In Dhaka, Bangladesh bank performs the clearing house activities of clearing. A cheque or bill should be crossed, sealed of “clearing house” with the clearing date (the next day of sealing) and endorsed by the authorized officer. Then cheques or bills are sent to the corporate branch of the bank. In the next day, those are sent to the clearing house. Then representatives from the listed banks submit their receipt statements along with cheques or bills. They prepare an aggregated statement of debit-credit through exchanging mutual statements. Thus, clearing house arrange of meeting up the debit-credit balance of each bank by examining the statement.

It is indicated that each branch of a listed bank prepares a statement of its own receivable cheques, bills and sends to the head office. The head office of the bank prepares an aggregated statement by accumulating all receivable statements from branches. Then representative from each bank keeps a copy of statement at its own specific desk in the clearing house. Thus the listed banks transfer their “out- clearing” and accept their “in-clearing” statements. Then they find out their credit and debit balance by differing their out-clearing & in-clearing figures.

 

ACCOUNTS SECTION

TASKS OF ACCOUNTS DEPARTMENT

Accounts department plays a vital role in commercial banking. The activities of accounts section are as follows:

  • Record all transaction in the cash book.
  • Record all transaction in the general and subsidiary ledger.
  • Prepare daily fund function, Weekly position, periodic statement of affairs etc.
  • Prepare necessary statement for reporting purpose.
  • Pay all expenditure on behalf of the branch.
  • Make salary statement and pay salary.
  • Branch to branch fund remittance and support for accounting treatment.
  • Budgeting for branch.
  • Make charges for different types.

 

DISPATCH SECTION

Dispatch division mainly operates the function of dispatching the intimidation latter to the client, Inter Bank Credit Advice (IBCA), Inter Bank Debit Advice (IBDA), outward bill collection (OBC) to the other banks for internal transaction with the banks. Dispatch division receives the letter and documents coming form Head Office, another branches, another bank, negotiating bank (in case of Import), and opening bank (in case of Export) in the name of The EXIM Bank Limited, Dhaka, Bashundhara road branch. The officer engaged in the dispatch division maintains two types of register books to keep entries of those documents’ particulars.

These two types of books are-

  1. Inward mail.
  2. Outward mail.

Outward mail is also such types

  1. By hand
  2. Local courier

When the officer receives papers form outside the branch, he Puts seat on that paper “Received” and writes date and time on that paper. When it is needed to dispatch any document outside the branch, it is required to give a dispatch no. on the paper. The officer put number non that paper and on the basis of nature of document he takes decision how it has to be dispatched. Some time he gives the document by hand to other party. At the beginning of the month, he withdraws. Money form bank by issuing a debit voucher for the payment of dispatching bills. He writes all the expenses of dispatching in the register and payment. At the end of the month, he calculates his total expenses. If the debited amount is surplus of the actual expenses, he refunds it to the bank by creating it credit voucher.

 

Findings:

  • The bank is not still technologically updated. There is a great problem of their online system and their server and also their software which they use for their daily transaction and for their working purpose, for that reason sometimes people may face problem to get their services.
  • For opening an account the customer must need reference. But sometimes customer may fail to manage reference for opening an account. So in that case they may sometime lose their fervor to open an account in that bank.
  • There cash payment procedure is traditional, like withdrawing money by using cheque because their ATM card facility is very poor to compete with other banks. They have only 10 ATM booths in the country.
  • In case of opening an account, some big parties come to open account with reference of high officials of the bank. They do not submit all papers that is required for opening an account & in future they do not feel any urge to submit there papers but already they become accounts holders. I think in this case the authority is violating the rule.
  • Many banks have customer relation officer in all branches for solving customer’s problem by answering queries of customers. But this branch of EXIM bank doesn’t have this.
  • EXIM bank’s branch is very few, that is 63 only.

 

Recommendations:

The banks are actually service organizations. Some recommendations regarding bank’s betterment are described below. The recommendations given below are not decisions, rather they are only suggestions to improve the performance in order to fulfill the customer satisfaction so that clients give more preference to EXIM bank. Here in below some recommendations are mentioned:

  • Now a days the world is going very fast. Now most of the banks provide online services, although EXIM bank also provides such services but in some limited area. They can take more initiative about that.
  • In the total banking system it is necessary to implement modern banking process instead of traditional system. It should be more computerized and update ATM card facilities to their customers by increasing number of ATM booths.
  • Customers who failed to give reference for opening an account for them the bank should be flexible.
  • EXIM bank should appoint customer service officer in all branches so that customer can get information easily.
  • EXIM bank should open more branches in Dhaka city as well as all prime locations of Bangladesh and improve its service quality too; otherwise it will fall behind other private commercial bank.
  • The entire department should be well informed regarding their goals and objectives. It is essential to execute company objective into individual target.
  • The authority should arrange extensive training & development for their employees so that they can successfully perform their arranged tasks and duties.
  • If EXIM bank increases number of employee they can provide more satisfactory service to the customers.
  • PC banking software is not sufficient that can help the bank to provide speedy services to customer & internal uses. Therefore, the concerned authorities should consider replacing the PC bank system with more advanced banking software.
  • EXIM bank should go for aggressive advertising and promotional activities to get a broad geographic coverage.

 

CONCLUSIONS:

From the practical implementation of customer dealing procedure during the whole period of my practical orientation in EXIM bank limited I have reached a firm and concrete conclusion in a very confident way. I believe that my realization will be in harmony with most of the banking thinkers. It is quite evident that to build up an effective and efficient banking system to the highest desired level, computerized transaction is a must.

EXIM bank is a private sector bank having a small market share of the industry. Although it is a third generation bank facing government deposit restrictions, it has all the potentials to penetrate in the market. If  the weaknesses are addressed appropriately and opportunities are explored keeping in view the threats behind with a stable and adroit management having regard to appropriate corporate governance and modern automation technology, it is expected that EXIM bank advances up in the ladder of success in the coming years.

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