Internship Report on General Banking activities & Procedure of EXIM Bank Limited
Subject: Business, Organizational Behavior | Topics:

Introduction

Bank is very old institution that is contributing toward the development of any economy and is treated as an important service industry in the modern world. Economic history shows that development has started everywhere with the banking system and its contribution towards financial development of a country is the highest in the initial stage. Modern banks play an important part in promoting economic development of a country.

Bank provides necessary funds for executing various programs in the process of economic development .they collect savings from large masses of people scattered throughout the country, which in the absence of banks would have remained ideal and unproductive, these scattered amounts are collected, pooled together and made available to commerce and industry for meeting the financial requirements.
Bank plays a vital role in the economy by providing means of payment and mobilizing resources. Bank is the most important financial institution in the economic development of a country depends on the development of banking sector. Today’s modern banks are not only providing traditional banking but also expanding the many financials services. In today’s world the life of the people directly are within the arena of banking whether conventional or Islamic banking is not a newer concept in Bangladesh as it has started its operation since 1983, very few people are aware about its operation. But things are changing. Islamic banking is also getting popularity in the country.

Internship program essential for every student, especially for the students of Business Administration, which helps them to know the real life situation, for this reason a student takes the internship program at the last stage of the bachelor’s degree, to launch a career with some practical experience. Against this backdrop, I have competed my three months internship in the Exim Bank Ltd., New Eskaston Branch, Dhaka, which has helped me a lot to understand the real life situation life situation of banking business.
1.2 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.

1.3 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
a. Descriptive method
b. Conventional versus Islamic banking
c. Performance and Growth
d. SWOT analysis

1.4 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

1.5 Scope of the Study

This report has been prepared through extensive discussion with bank employees and with the clients. Prospectus provided by the bank also helps to prepare the report. At the time of preparing the report, I had a great opportunity to have an in depth knowledge of all the banking activities practiced by the Exim Bank Limited.

1.6 Limitations of the Study

The officers are very co-operative but they are too busy to give me time to get knowledge about practical activities. Moreover they have to deal in a very competitive environment based on money related activities. I have to prepare this report alone. Every task has some limitations. I faced some usual constraints during the course of my internship. These are as follows:

Short of time:
I had to complete this report writing within a shorter period of time. So the time constraint of the study hindering the course of vast area and time for preparing a report within the mentioned period is really difficult.

Busy working environment:
The officials had some times been unable to provide information because of their huge routine work.

Lack of sufficient well informed officials:
Many officials of the branch are not well informed about different systems of Exim bank. They know but less. I had to face much difficulty to collect this information.

insufficient data:
Some desired information could not be collected due to confidentially of business
1.7 Duration of the study
The study has been completed covering the period from 22nd march to 21st June 2009. The schedule of On the job training at the Branch are as below:
i. 22nd March to 11th April on the job training at the branch relating to customer service section.
ii. 12th April to 29th April on the job training at the branch relating to Cash section
iii. 27th of April to 16th May on the job training at the branch relating to remittance department
iv. 17th may to 21st June on the job training at the branch relating to foreign exchange and investment department.

Chapter -2
Overview of EXIM Bank Limited

2.1 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.

2.2 List of Sponsors
• Md. Narzul Islam
Mazumder
• Md. Nazrul Islam
Swapan
• Mohammad Abdullah
• Md Altaf Hossain
• Nasreen Islam
• Md. Mazakat Harun
• Md. Fahim Zaman
• Pathan Asma Begum
• Eng. Aminur Rahman Khan
• Zubayer Kabir
• Rizwana K. Riza
• Md. Habibullah
• Md. Nur Hussain Hasina
• Akhter Anjan Kumar
• Saha A.K.MNurulFazal
• Bulbul
• Md. Abdul Mannan
• Rabeya Khatoon .
• Mahmuda Begum
• Nasima Akhter
• Sabira Sultana
• Mamtaj Begum
• Md. Shaiful Alam
• Hamida Rahman
• Md.FaizUllah
• Meer Joynal Abedin
Nahida Akter

2.3 Board of Directors

Name Designation

Md. Faiz Ullaha

A.K.M. Nurul Fazal Bulbul

Md. Habibullah Directors

Md. Nurul Amin

Mohammad Shaidullah

Md. Golam mahbub Company Secretary

2.4 Vision of the Bank

the gist of our vision is ‘Together towards Tomorrow’. Export Import Bcnk of Bangladesh Limited, as the name implies, is not a type of Bank in some cmuitries 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 tf constant improvement will be cornerstone to achieve our Operational success.

2.5 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.
2.6 Organization Structure:
The total Management structure of EXIM bank is given below.

Above we we have the management structure of the total banking system of Exim bank. The functional structure of the hierarchy is different and I have done my intern in the Aaion branch of the bank. It is not an assigned foreign exchange branch but it via the main branch in motijeel. Its total operation is not that big compare to branches. Below we have the organizational structure of the branch.

2.7 Product & Services

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.

Esim 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.

2.8 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
Uf ecirepreneurship and patronization of private sectors..

2.9 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.

2.10 list of Branch
1. Head Office Corporate Branch
2. Saver Branch
3. Motijheel branch
4. Karwan Bazar Branch
5. Panthapath Branch
6. Gulshan Branch
7. Gazipur Branch
8. Imamganj Branch
9. Nawabpur Branch
10. Narayangonj Branch
11. Shimrail Branch
12. Rajuk Avenue Branch
13. New Eskaton Branch
14. Uttara Branch
15. Mirpur Branch
16. Sat Moshjid Road Branch
17. Elephant Road Branch
18. Naria Branch
19. Mawna Branch
20. Malibagh Branch
21. Ashulia Branch
22. Ashugonj Branch
23. Bashundhara Road Branch
24. Kustia Branch
25. Agrabad Branch
26. Khatunngonj Branch
27. Jublee Branch
28. Sonai Muri Branch
29. Laksham Branch
30. CDA Avenue Branch
31. Chowmuhani Branch
32. Comilla Branch
33. Modaffargonj Branch
34. Chhagalnaiya Branch
35. Pahartoli Branch
36. Sylhet Branch
37. Moulvi Bazar Branch
38. Golapgonj Branch
39. Fenchugonj Branch
40. Jessore Branch 4 l.Khaulna Branch
42. Bogra Branch
43. Rajshahi Branch
44. Rangpur Branch

2.11 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
m 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%

2.12 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

2.13 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

2.14 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
 

Chapter-3
General Banking Function

3.1 Bank Name and Location

3.2 Branch measures:
Size measure has different purposes. Generally bank size depends on .of employee no customers, Profit Asset etc. By measuring these criteria New Eskaton Branch of EXIM Bank is considered as a small size of organization. The total number of employees is 24 and they are dealings with near about nine thousand customers. Profit amount is 10,822,845.20 TK.

3.3 Highlights of the Branch:
01) Date of opening of the Branch ; 12 August,2002
02) Name of present In charge : Mr. Khorshed Alam Chowdhury
Senior Vie President & Manager
03) Name of the employee;

SI, ON.Name of the EmployeeDesignation
01Mr. Khorshed Alam ChowdhurySenior Vie President
02Mr. Md.Noor-a-Alam HossainAssistant Vice President
03Md. Golam RabbaniS.P.O
04Ms. Mahmuda IqbalS.P.O
05Mr. Touhidul IslamS.P.O
06Mr.Md. Wahidur RahmanE.O
07Mr.Md. Arifiir RahmanE.O
08Mr. Manab Kumar HolderE.O
09Mr. Khan Md. Mahbubur RashidE.O
10Mr.Md. Nahid ParvezE.O

3.4 Statements of Affairs:
Up to 12 April 2009 this branch reached 6,774 customers in various types of their product. Sp, we can say that this branch has captured the market as for there better service in the EXIM bank New Eskaton Branch. The table shows the total number of customers in different product, which has given below:

11Ms. Shirin SultanaE.O
12Mr.Md. Mizanur RahmanOfficer
13Mr. Sayed Kamal HossainMTO
14Ms. Tania SharminMTO
15Mr. Tanvir Md. JashimOFFICER
16Mr. .Md, Abdur RahimJ.O
17Mr. Md.Mehedi HasanJO
18Mr. Md.Tanvir HissainJ.O
19Mr. ImranuzzamanJ.O
20MrMd. Mahfuzur RahamaJ.O
21Mr.Md. Monir HossainA.O (Cash)
22Ms. Sumon SultanaA.O (Cash)
23Mr.Md. Jashim UkkinT.A.O (Cash)
24Mr. M.M Ahsanul KabirT.A.O (I.T)

3.5 Net Profit of This Branch:

Table: Net profit of this branch

Date-Month-year

Amount

08-05-2009

20,822,845.20

3.6 The Department of a Glance:

3.7 General Banking:

Some common types of works every bank should be to operate the banking business. Although the mode of performing these works differs from bank to bank but all the banks have to do the task. In the banking perspective these types of works are known as general banking General Banking is the heart of Banking. Here money collection procedure occurs, cherub encashment, account transfer; account closing, bills and remittance are provided he, so general banking section is the life blood in banking service. The activities perform throe some procedures .such as -Dispatch (inward-outward), Deposit, A/C opening and close transfer, Cheque book issue, local remittance (payment order ,DD,TT) collections- trans delivery, IBC, OBC, Cash, Vault ,packing and handling and evening Banking.

3.8 Banking Functions of EXIM Bank:
General Banking is the heart of Banking. Here money collection procedure occurs. Other services, like cherub encashment, account transfer; account closing, bills and remittance are provided here, so general banking section is the life blood in banking service. General banking activities of EXIM bank includes the following:

Mobilization of deposits
Receipts and payment of cash
Handling transfer transaction
Operations of clearing house
Maintenance of accounts with Bangladesh bank and other Banks.
Collection of cheque and bills
Issue and payment of Demand Draft, Telegraphic transfer and Payment Order.
Executing customers standing instructions. Maintenance of safe deposit lockers
Maintenance of internal accounts of the bank.

While doing all the above noted work EXIM bank issue cheque book. Deposit account operating form, cheque book, ledgers, cash books Deposit account ledgers, preparation statements of accounts and pass book, balance different accounts and calculates profits.

3.9 Customer Services:
Customer services are one of the most talked about subject now a day. In banking, it is a major rule to earn a comparative edge. Customer service means to meet customer needs in a prompt and efficient way. In service-oriented organization like, quality means customer satisfaction. And customer satisfaction depends on the services provided by the organization. So, customer service section is the most important section in EX1M Bank Ltd. First of all customer want to collect information before taking services if he/ she satisfied with the information given by the customer-service section, then he/she come to take services. In the sense, it is very sensitive section in EX1M Bank. To satisfy the customer by giving better services all staff and officers of this section have to take responsibility, be cordial, frank and smiling appearance.

Generally they perform the operation about

Accounts opening
Remittance
Clearing
Collection
Cash Department
Others

3.10 Account opening Section:
Account opening is the scope for clients to enter into business with the bank and can perform their transaction through the bank who is the middleman for the clients. It is the primary way to mitigate the banker customer relationship. This is one of the most important sections of a branch, because by opening accounts bank can raise funds for the investment, so many rules and regulations are maintained and so many documents are undertaken whole opening an account in the EXIM bank. Customers can open different types of accounts through this department by the department o bank.
Account opening sections generally do the account open for the customer. There are several types of account.
i. Mudaraba Savings (SB) Account
ii. Alowdia Current Account
a. Proprietorship
b. Partnership
c. Limited Company
d. Trust
e. Club
f. Educational Institution
iii. Mudaraba short term Deposit (MSTD)
iv. Mudaraba Fixed Deposit receipt (MFDR)

3.10.i Mudaraba Savings Account
To encourage savings habit amongst the general public, bank allows depositors to open savings account. As the name indicates, these accounts are opened for the purpose of savings. There are two types of Saving Account. One is “Single Saving Account” and another is “Joint Saving Account”.

Minimum amount of Tk. 1000/- is required for opening this type of account and it s charges yearly is Tk.600/-. A depositor shall be allowed to withdraw per week up to 25% of the balance of his account.

Distribution of profit to Mudaraba Depositors
The principles of calculation and distribution of profit to mudaraba depositors are as under,

Mudaraba depositors share income derived from investment of fund.
Mudaraba depositors do not share any income derived from miscellaneous banking services where the use of fund is not involved, such as commission, service charges, exchange, and other fees realized by the bank.
Mudaraba deposits get priority in the matters of investment over bank’s equity and other cost free find.
The gross income derived from investments during the accounting year is, at first, allocated to mudaraba deposits and equity & cost-free fund according to their proportion in the total investment.
The share of gross investment income of mudaraba deposits as worked out in terms of principle shown against serial no 4 is distributed as under:
20% is retained by the bank as management fee for managing the investment. 15% is transferred to a reserve fund for setting investment loss or with a view to maintaining a general level of return on mudaraba deposits the remaining 65% is distributed to mudaraba depositors applying weight ages.

The growth rate of mudaraba savings deposits are increasing day by day.

Table Mudaraba Savings Deposits

Year

Amount TK

2005

1,338,526,248

2006

1,684,526,998

2007

2,209,666,103

3.10.ii Al-Wadia Current Account
Current account is an account where numerous transactions can be made by the account holder within the funds available in its credits. No profit is paid on those deposits and its yearly charges is Tk.l000M Current account is mainly suitable for businessman though nobody is debarred from opening such an account for any purpose. Requirements to open an account are almost same to that of savings account except the initial deposit and the introducer must be the saving or current account holder. The growth rate of al wadiah deposits are increasing day by day and it increase in 2007 is in questionable rate.

Year

Amount TK

2005

3,710,805,625

2006

3,463,314,632

2007

4,778,629,437

3.10.iii Mudaraba Short Term Deposit (MSTD)
In short term deposit, the deposit should be kept for at least seven days to get profit. The interest offered for MSTD is less than that of savings deposit. In EXIM Bank, various big companies, organization, Government Departments keep money in MSTD account. Frequent withdrawal is discouraged and requires prior notice.

SITERMRevised Rate of profit
1Short Term    Deposit5.50% (no restriction on minimum balance)

 

3.10. iv Mudaraha Fixed Deposit receipt (MFDR)
Different kinds of deposits are also operated in to the bank. These deposits A/C may
be classified as

STD (Short term deposit ) A/C
MTD (Mudaraba Term Deposit)
MSS (Mudaraba Saving Scheme)
MIS (Mudaraba Investment Scheme)
Hajj Project.

3.10.v Savings Schemes
These savings schemes are –
Super Savings Scheme
Monthly Savings Scheme
Monthly Income Scheme
Multiplus savings scheme

SUPER SAVINGS 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.
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 7 (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.

Deposit

Payable (approximately) at maturity

5,000.00

10,002.00

10,000.00

20,004.00

20,000.00

40,008.00

50,000.00

1,00,020.00

1,00,000.00

2,00,040.00

2,00,000.00

4,00,081.00

5,00,000.00

10,00,203.00

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

MUDARABA MONTHLY SAVINGS SCHEME (MONEY GROWER)
Objective 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 5000A.
Not less than 65% of investment income shall be distributed among the Murabaha Depositors as per weight age. The deposit will bear weight age 1.16, 1.17, 1.18, l.lft
respectively.
Bank reserves the right to change the weight age of deposit & percentage of distribution of Investment Income.

Monthly Installment Deposit:
The savings amount is to be deposited within the 10th 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.

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 wills handover
the accumulated amount to the successor of the deceased.

Achievement from the scheme:
The accumulated amount may be more or less of following table;

TermMonthly Installment
 5007-1,0007-2,0007-5,0007-
5 yrs.39,0417-78,0827-1,56,1647-3,90,4117-
8yrs.74,2027-1,48,4047-2,96,8097-7,42,0247-
10 yrs.1,05,0957-2,10,1907-4,20,3807-10,50,9527-
12 yrs.1,44,4617-2,88,9237-5,77,8477-     4,44,61 87-

MUDARABA MONTHLY INCOME SCHEME (STEADY MONEY)
Objectives of the scheme:

A monthly scheme that really makes good sense. A sure investment for a steady return. Actually, steady money makes your money work for you.
Proper utilization of savings from stipend, wage earning, retirement benefit and so on.
Higher monthly income for higher deposit.

Formalities of opening an account:
An account is to be opened by filling up a form.
The Bank will provide the customer a deposit receipt after opening the account. This receipt is non-transferable.

Highlights of the scheme

Minimum deposit Tk. 1,00,000/-.
The scheme is for a 3 (three)-months period.

 Income (Tk.)
1,00,000/-791/-(9.5%)

The income is estimated which may be more or less at the year end and accordingly the same shall be adjusted. The deposit will bear 1.15 weight age.
Not less than 65% of Investment Income shall be distributed among the Mudaraba Deposit holders as per weight age.
Bank reserves the right to change the weight age of deposit & percentage of distribution of Investment Income.

MUDARABA MULTIPLUS SAVINGS SCHEME
Objective 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

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 12 (twelve) 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) at maturity

 

  
5,000.0015,879.00 

 

 

 

10,000.00

 

31,758.00

 

 

 

 

 

50,000.00

 

1,58,793.00

 

 

 

 

 

1,00,000.00

 

3,17,587.00

 

 

 

 

 

Payable amount will depend on projection and will be adjusted after the declaration of profit at the end of the year. The weight age of deposit will be 1.17.

Not less than 65% of investment income shall be distributed among Mudaraba Depositors as per weight age.

3.11 Remittance:

Commercial bank in Bangladesh offers the facility of transferring funds, from one place to another place, to their customers as well as to the general public. Such transfer of funds can be affected either through Demand Draft or Telegraphic Transfer or Mail Transfer. The aforesaid methods of remitting money from one place to another within the country are known as Remittance, While, it is for outside Bangladesh the same is called foreign remittance. The advantage of this facility is the quick transfer of money with minimum cost and also the risk of physical transportation of cost is eliminated.

Main Key Terms

Issue Of Demand Drafts
issue Of Duplicate Demand Draft:
Cancellation Of Demand Draft:
Revalidation Of Draft: ^ Payment Of Demand Draft: ^Payment Of Open Draft: ^Payment Of Crossed Draft:
 Telegraphic Transfer: TT is affected by tile bank through tested telex message by secret check signal, on receipt of which tile paying officer pay the amount to the payee in cash through a telegraphic payment order or credit his account, as the case may be. Both parties must have account in Exim Bank Limited, as money is transferred.
 Giving Payment Order (PO)
 M the time of payment of deposit Income Tax on profit shall be deducted.

3.12 Clearing Department:
Accounts section deals with the income and expenditure of the branch and and every transaction of the bank. The accounts officers check all the paper works like bills, vouchers, checks and deposit slips every day. They also prepare a supplementary sheet. Supplementary sheet is prepared for bank’s transaction security to avoid any fraud or misguidance. A Senior Principal Officer is designated in New Eskaton Branch as the account officer in-charge of the department. Supplementary sheet consists of three heads such as General, Transaction with client’s income and expenditure.

3.12.i Inward Clearing
Inward clearing involves clearing Cheques/DD/PO, which come to the EXTM BANK, New Eskaton branch through clearing house for collection. The clearing officer receives then enters them in the inward logbook. Then sends them to the cash department for checking the account condition. If any problem is found with the instrument, it is marked as ‘dishonored’ mentioning the reason as mentioned above and he sends to the clearing officer. The clearing officer removes Cheques/DD from logbook and informs the matter to the New Eskaton branch.

3.12.ii Outward Clearing
The cheques, PO, DD of different banks, which are submitted to EXIM
Eskaton Branch, for collection, are known as out- Ward clearing cheques. The
procedure is quite lengthy.

Outward Bills for Collection (OBC):
Customers deposit Cheque draft etc for collection attaching with their deposit sleep. Instrument within the range of clearing arc collected through local clearing house but the other which are outside the clearing range are collected through OBC mechanism. A customer of EXIM bank principal branch local office Dhaka is depositing a Cheque of Sonali bank Cox’s-Bazar as a collecting bank EXIM Bank principal branch will perform the following task.

1. Received seal on deposit slip.
2. EXTM Bank local office principal branch crossing indicating them as collecting bank.
3. Endorsement give payees A/C will be credited on realization.
4. Entry on register from where a controlling number is given. Collecting bank can collect it either by its branches of by the drawer’s bank they will forward the bill then to that articulate branch. OBC number will be given on the forwarding letter.
Ex:
Two parties(X, Y), two banks (Exim New Eskaton, Exim Rajuk). Party “y” gives a Cheque of Rajuk branch to party “x” of New Eskaton branch. Party x deposit it to New Eskaton branch than the p.p branch will send it to the Rajuk branch. In that case Rajuk branch will give entry.
Partya/c……… Dr.
New Eskaton ……. Cr.

But when the IBC are collected than the journal will be
Rajuk branch ……. Dr.
Party a/c ………. Cr.
Inward Bill for Collection (IBC):
In this case bank will work as an agent of the collection bank branch forwarding letter and the bill. Next steps are:
1. Entry in the IBC register, 1BC number given.
2. Endorsement given- “our branch endorsement confirmed”.
3. The instrument is sent to clearing for collection.
4. Miscellaneous creditor A/C.

Now following procedures will take place in case of the following two cases.
Ex:
Suppose party X give a Cheque of Islami bank of Saver in the Exim bank panthapath branch. In that case Exirn bank will send a OBC to Tslami bank branch at Saver though there is no branch of Exim bank and it is out of clearing house. In that Case islami bank will give a D.D in favor o f Exim bank Panthapath branch. Than Exim bank Panthapath branch will send it to the clearinghouse for collection.

3.13 Cash Section:
Cash is the measure of a business ability to pay its bills in time. This, in turn, depend on the timing and amounts of cash flowing into and out of the business each week and month -i.e., the cash flow of the business,

Cash receiving procedure
The work of cash receiving counter is examining deposit slips.
Depositor uses the proscribed 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 comp for posting purpose and returns the customer’s copy.

Function of cash department
To state the responsibilities and required procedures related to the safeguarding of cash , segregation of duties involving ash handling, the processing of cash proceeds, and ensuring the completeness of cash transactions.

Cash payment1.   Cash payment is made mainly against cheque , and also against instrument i. e., P.O,D.D, FDR &vouchers.

2.   This is the unique function of the banking system which is known as payment in demand

3.   It makes payment only against its printed valid instrument

Cash Receipt1. It receives deposits from the depositors in firm of cash

2. It is the mobilization unit of the banking system

3. It collects money only its receipts forms

Receipt of cash
Cash shall be received by the cash officer /assistant cash officer over the counter during banking hours. Any transaction outside the counter as well as beyond banking bourn shall not constitute valid banking transaction.
1. While receiving cash, the cash officer must examine the following points/procedures:
a) Receipt voucher is properly filled in i. e. with title of A/C, Account number if any, date particulars .if any denominations of notes, amount in words and figures.
b) In case of DD, PO, TT, TDK etc. Particulars like name of payee, name of Drawee Branch if any, date, have been give
2. All vouchers/application are signed by the depositor
3. Cash tendered for deposit shall be physically counted by the cash officer and shall see that the amounts conform to figures written in the voucher as well as with denominations,
4. He will make a cross entry if the amounts in figures and words over slip (both side)/voucher with red ink and shall put his specimen signature thereon as a token of receipt of cash.
5. Simultaneously he will enter the same in cash register and shall put serial no. of voucher on both side pay-in-slip thereafter shall send the same to the authorized official for counter signature, with initial in the cash receipt register.
6. The authorized official shall retain the cash received stamp under sis direct control and in verifying that all the above formalities have been observed shall countersign the same (both side on vouchers having counter foil) under cash receipt stamp and put initial in the cash receipt book, there after he will return the counterfoil, if any, direct to the depositors on detaching the same.
7. At the close of business, the concerned official shall total the cash receipt book and authenticate the total of the cash of facilitate closing of cash by the joint custodians).

Cash payment
1. An amount of cash of cash payment shall be made by the cashier against a cheque/instrument /voucher duly passed for payment under full signature of authorized official(s) within his/her/there power schedule preferably in red ink on obtaining respective signature of the presenter of the cheque / voucher /instrument. in case signature does not conform payment shall be made.
2. Payment shall preferably made by the paying cashier as per denomination requested by the presenter on making a not e on the instrument. The instrument shall be branded with gash paid stamp under signature of the paying cashier . He/she will also put his/her initial in paying cashier’s book as a token of payment and return back the pausing cashier’ book to the passing officials to facilities the next entries.
3. The recipient of cash shall be advised to count the cash in presence of the concerned paying cashier. Other in claim for shortage shall be accepted. Payment shall always be made over the counter during business hour. Payment through via media i.e. peon, drawn, etc is strictly prohibited.
4. At the close of the business the paying cashier shall total the pay book and shall put the same to the passing official along with the paid cheques / vouchers/instruments who shall verify the instruments and entries thereof and confirm the total by putting his/her signature after verification of the total.
5. No customer, staff, guest, outsider shall the cash enclosure.
6. Cashier must not leave the cash counter until cash in balanced and in case of exceptional need, shall leave the counter for brief period with permission of custodian/joint custodian.
7. In cash of shortage and if any suspicion arises manager/joint custodian is authorized to check the cashier in presence of other officers/cashier.

3.14Accounts Section:
This is a very much crucial department for each branch of a commercial bank. Records of all the transactions of every department are kept here as well with other respective branches. Accounting department verifies all financial amounts and contents of transactions, if any discrepancy arises regarding any transaction this department report to the concerned department. Tasks of accounts department
Accounts department plays a vital role in commercial banking. In private banking sector accounts department of EXIM Bank Bangladesh Ltd. Performs its tasks properly. 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.
Made salary statement and pay salary.
Branch to branch fund remittance and support for accounting treatment,
Budgeting for branch.

Chapter -4
Recommendation and Conclusion

4.1 Recommendation

The entire department should be well informed regarding their goal and objectives, it is essential to execute company objective into individual target.
Efforts should be made to increase Bank’s investment under Mudaraba & Musharaka modes.
To appoint manpower having sufficient knowledge on Islamic Shari’ah at all the branches to ensure proper buying & selling in the investment operations o£ the Bank.
Though the loan system is good in Exim bank but Investment approval policy it tough. It is difficult to get loans from Exim bank.
Exim bank should start SME service. It will increase its customer base and also it will increase the acceptability of the bank to the customers.
Exim bank does not have a huge product line. They add more products and services and grab other markets also.
r One of the most important problems Exim bank is having at this moment is the online service. Online service of Exim bank is not impressive and to be in the market and to compete with other banks online service of the bank has to be improved.
The management of Exim BANK should regularly administer marketing research activities in order to keep a regular track of satisfaction levels. Regular research should also be conducted to find out customer expectations about various service aspects. As customer expectations and satisfaction are not static figures, regular research at sufficient intervals should be conducted.
ATM card is not an extra service in the present time but a requirement for any bank. Exim bank has lacking in this sector. Though I have not included this question in my questionnaire but while talking with customers and also with employees of Exim bank I have understood that ATM card their demand.
The Bank should persuade the government to introduce a separate Islamic Banking law with a view to operating their activities more smoothly.

4.2 Conclusion

As an organization the Exim Bank Limited has earned the reputation of top banking operation in Bangladesh. It is relentless in pursuit of business innovation and improvement. It has a reputation as a partner of consumer growth. Though it is a new bank, Exim Bank makes a strong position through its various activities, its number of clients /amount of deposit and investment money increases day by day. This bank already has shown impressive performance in Foreign Exchange Business.
Exim bank introduced a specialized banking service in Economic. With’a bulk of qualified and experienced human resources, Exim Bank Limited can exploit any opportunity in the banking sector, since its establishment it is rendering its services with qualified and knowledgeable staff. The environment of Exim Bank Ltd is very modernized and friendly. The staffs are specialized in their respective fields. Each of them works on their own and there is supervision from the top. The motivation of the staff, I believe comes from the very sense of responsibility. Each member is individually responsible for his or her work.
Consumers are or less satisfied with the present services of the bank. Management should think to start new services and take different types of marketing strategy to get more customers in this competition market of banking.
This report tries to figure out most of the indicators of problems and strengths of Exim Bank Limited as a valid pretender in the competitive banking sector of Bangladesh. The main philosophy of Exim Bank is to diminish interest and charge or pay fixed interest on loans or deposits and at the same time establish an egalitarian society based on the principle of social justice and equity Instead of predator mined interest on deposits.

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