Origin of the Report:
Banks play an important role in the business sector and industrialization of a country. Basically bank take deposit from the customers against interest and lend it to the borrower’s interest for a certain period. Under this sphere, the bank offers different interest notes and other options to there customers to remit and deposit there money. Most of the common between the banks, only the customer service and other facilities vary.
In the backdrop of economic liberalization and financial sector reforms, a group of highly successful local entrepreneurs conceived an idea of floating a commercial bank with different outlook. For them, it was competence, excellence and consistent delivery of reliable service with superior value products. Accordingly, Export Import Bank of Bangladesh Limited started commercial banking operations effective from August 03, 1999.The sponsors are reputed personalities in the field of trade and commerce.
As a fully licensed commercial bank, Export Import Bank of Bangladesh Limited is being managed by a highly professional and dedicated team with long experience in banking. They constantly focus on understanding and anticipating customer needs. As the banking scenario undergoes changes so is the bank and it repositions itself in the changed market condition.
Export Import Bank of Bangladesh Limited has already made significant progress within a very short period of its existence. The bank has been graded as a top class bank in the country through Credit rating. The bank has already occupied an enviable position among its competitors after achieving success in all areas of business operation. This study also focuses on the service of Export Import Bank of Bangladesh Limited, where the in influencing factors are analyzed in order to determine the prerequisites of providing quality service in the banking Industry.
Historical Background of the Bank:
Export Import Bank of Bangladesh Limited is a public listed scheduled bank categorized in private sector and established under the ambit of Bank Companies Act, 1991 and
incorporated as a public limited company under the Companies Act, 1994 on June 02. The Bank started commercial banking operations effective from August 03, 1999. The Bank converted its Banking Operations into Islamic Banking based on Islamic Shariah from traditional banking operation in July 01, 2004 after obtaining approval from Bangladesh Bank.
During the span of time the Bank has been widely acclaimed by the business community, from small entrepreneurs to large traders and industrial conglomerates, including the top rated corporate borrowers for forward- looking business outlook and innovative financing solutions. With a few of the Company’s activities and program on the basis of Islamic Shariah, within this period of time it has been able to create an image of responsibility for itself and has earned significant reputation in the country’s banking sector. Within an operative period as eight 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 edition, 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.
As a matter of policy, the Bank conducts its business on the principles of Mudaraba, Murabaha, Bai-Muazzal and hire purchase transaction approved by Bangladesh Bank. The Bank is one of the interest-free Shariah-based Banks in the country and its modus-operandi is substantially different from those of other commercial banks.
OBJECTIVES OF THE STUDY:
The general objective of the study is to analyze the status and dynamic of various function indicators and to find out the pattern and magnitude of relationship that exists among different parameters of EXIM Bank. The main object of the study is to observe the existing system by the EXIM Bank. The specific objective of the study are listed below-
To be experienced about the appliance of the knowledge, gathered during our 4 years of studies (up to graduation level) in practical.
To evaluate the effectiveness of operational management of EXIM Bank.
To identify the problem area of EXIM Bank.
To delve into the existing system of rural credit, innovated and practical by the bank.
T study the requirements of a Bank to yield maximum turnover.
To learn about the vivid operations of EXIM Bank.
To identify the beneficiaries of the credit programs.
To study the working atmosphere of EXIM Bank, as an incentive to the effectiveness of the credit programs.
To provide suggestions and preliminary recommendation for improvement by undertaking indent study in the line of findings.
To learn about the comparative study of EXIM Bank with other banks on the ratio of success on the program.
To have an exposure about the real management situation.
To have an exposure on the financial institution such as banking environment of Bangladesh.
To familiarize with practical lob environment.
To gain experience on different function of the different department of the bank.
To relate the theories of banking with the practical banking.
To examine the profitability and productivity of the bank.
To observe banker and customer relationship.
To face the various situation.
As an internee, I had the opportunity to go through some study on:
Performance of EXIM Bank in Bangladesh.
The latter one allowed me only to go through some reading, where as in the former case, and could work properly according my need. Therefore, my work on EXIM Bank gave me much broader scope for study.
At EXIM Bank I have conducted studies on the following areas:
Objectives of the Bank.
Management of EXIM Bank.
Contribution of Exim Bank to national economy.
Social welfare activities of EXIM Bank.
Expansion of business activities.
Customer services of EXIM Bank.
Comparison with other banks.
The report covers the banking service to the customer specially the customer of EXIM Bank of Bangladesh Limited. This has been prepared through extensive discussion with the bank employees and also with the customer. The bank deals with all types of General banking operation, Foreign change and Credit operation to the rules and regulation provide by the Bangladesh Bank.
Key Function of EXIM Bank:
Like other commercial banks like EXIM bank performs all traditional banking business including introduction of a wide range of caving and credit products, retail banking and ancillary service with the support of modern technology and professional management, but the Exim Bank Bangladesh Limited emphasizes its function in export and import trade handing and financing of export oriented industries will enhance wealth, quotes more employment opportunities helps formation of capital and reduces in balance in the balance of payment in the country.
The purpose of the banking business is, obviously, to earn profit, but the promoters and the equity holders of EXIM bank are aware of their commitment to the society to which they belong. A chunk of the profit is kept aside and/or spent for socio-economic development through trustee and in patronization of art; culture and sports of the country and the bank want to make a substantive contribution to the society where we operate, to the extent of our separable resources.
This bank is one of the most disciplined Banks with a distinctive corporate culture. Here we believe in shared meaning, shared understanding and shared sense making. Our people can see and understand events, activities, objects and situation in a distinctive way. They mould their manners and etiquette, character individually to suit the purpose of the Bank and the needs of the customers who are of paramount importance to us. The people in the Bank see themselves as a tight knit team/family that believes in working together for growth. The corporate culture they belong has not been imposed; it has rather been achieved through their corporate conduct. The Bank achievement has been possible because of the able leadership; dedicated and committed services provided by all levels of management and staff which all possible because of a good and quality full corporate culture.
Communications Strategy of EXIM Bank:
EXIM Bank is a third generation bank. It has converted into Islami Banking in July 01, 2004 with the approval of Bangladesh Bank. EXIM Bank mainly emphasis on public relation out of four communications strategy. EXIM Bank does following activities for their market promotion and advertising.
When they open new branch, send letter to the elite persons, offices and industries in that area for opening account in their bank.
Every year they arrange get together for their loyal customer in Dhaka and Chittagong. For that reason EXIM Bank build good relationship with their clients. EXIM Bank also solves the clients problems and they show the procedure the overcoming the problem.
They arrange the ceremony of award to the honorable person in every year.
They send gift item at the beginning of the year to the senior citizen of the society. These items include pen, dairy, calendar, pen stand, wall clock etc.
They also give special gift to the elite person in different occasions.
- In every month the higher authority of EXIM Bank give information about the market condition and suggestion to the branch manager.
- The managers of every branch tell present condition of his branch to the head office in every month.
- Head Office updates deposit and investment guideline to the branch manager.
- EXIM Bank sponsors different types of National games.
EXIM Bank will soon setup a Research and Development Division and separate marketing divisions, which are, help them to implement better marketing strategy.
Place Strategy of EXIM Bank:
One of the simplest methods of segmenting markets is by their geographic location. People who are living in one region of the country have consuming and purchasing habits that differ from those who live other regions. For example, the usage of woolen sweaters and jackets is higher in north India, due to the extreme cold during cold during the winter months, compared to consumers in south India.
Even in local markets, geographic segmentation is important. A bank branch in the western part of the city may attract account holders from that part of town to the bank. However, the bank branch manager may find it difficult to attract customers from the eastern part of the city due to the location inconvenience. When marketers analyze geographic data, they study sales by region, by state, city size, specific locations and the kind of retail outlets where sales are made.
Its may be seen and unseen it is not necessary that bank perform its activities by branch network. Bank may be deal contacts with a client or corporation in different location out of Bank branch. EXIM Bank has 28 branches in urban and rural area. But most of them are in urban commercial area.
The Bank operates through its Head Office at Dhaka and 35 branches in Bangladesh. At Dhaka (Motijheel Branch), Panthapath Branch (Dhaka), Dhanmondi Branch (Dhaka), Mawna Chowrashta Branch, Agrabad Branch (Chittagong), Khatungonj Branch (Chittagong), Gazipur Chowrashta Branch (Gazipur), Imamgonj Branch (Dhaka), Gulshan Branch (Dhaka), Sonaimuri Branch (Noakhali), Sylhet Branch ((Sylhet), Nawabpur Branch (Dhaka), Jessore Branch, Asulia Branch, Malibagh Branch, Narayangonj Branch (Narayangonj), Shimrail Branch (Dhaka), Islami Banking Branch (Motijheel Dhaka), Eskaton Branch (Dhaka), Islami Banking Branch (Uttara, Dhaka), Laksham Branch (Comilla), Mirpur Br. (Dhaka), Jubilee Road Br. (Chittagong) & Elephant Road Br. (Elephant Road Dhaka).Rangpur Branch(Rongpur), Bashundhara Branch(Badda),MoulvibazarBranch,(Moulvibazar),Fenchugonj,Branch(Fenchugonj,Sylhet),Savar Bazar Branch (Savar,Dhaka), Karwan Bazar Branch(Karwan Bazar, Dhaka),Comilla Branch(Monoharpur Comilla). The Bank also carries out international business through a Global Network of Foreign Correspondent Banks.
Slogan of the Exim Bank “Local Bank Global Network”:
The word Exim implies the meaning of its operation. Thought it is a new type of banking in Bangladesh, it is familiar with so many countries in the world such as export import bank of united states, export import bank of Japan, despite it is local bank it has a spread of its operation in the whole world through foreign banking. To achieve the desired goal, it has intention to pursuit of excellence at all stages with a climate of continuous improvement. Because it believes, the line of excellence is never ending. It also believes that its strategic plans and business networking will strengthen its competitive environment. Its motto I to provide quality services to the customers all over the world’s the slogan of the bank” Local bank global network” I completely adjustable with its operation.
Mission of Export Import Bank of Bangladesh Limited:
Export Import Bank of Bangladesh Limited mission statement states:
- To be the most caring and customer friendly and service oriented bank.
- To create a technology based most efficient banking environment for our customer.
- To ensure ethics and transparency in all levels.
- To ensure sustainable growth and establish full value of the honorable shareholders.
- To add effective contribution to the national economy.
- Provide high quality financial services in export and import trade.
- Become trusted repository of customers’ money and their financial advisor.
- Display team spirit and professionalism.
- Create sound capital base.
- Enhance shareholders wealth.
Vision of the Export Import bank of Bangladesh limited:
The gist of their 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.
- Provides the greatest return to the stakeholders by the stakeholders by achieving sound profitable growth.
- Be perceived by the customers and employees as the best whenever it operates.
Customer Services and Automation:
“To err human and forgiveness divines” a proverb, the bank believes but the customers will not accept. Because for a service they pay for they want it 100% defect free. So improvement of the customer service should always be their matto altered expectation of the customer have shifted the focus from resource base productivity.
To operate in the globalize environment, the banks future plan is to equip all the units of the bank with the modern technology, such as online computer network telex, fax, e-mail etc. for the service of the customer round the clock, it has a plan to install ATMs suitable places in Dhaka and other cities of the country.
Organizational Development of the Exim Bank:
In the 1450s and 1960s a new integrated type of training originated knows was organizational development. Organizational development is an intervention strategy that uses group processes to focus on the whole culture of an organization in order to bring about planned change, it seeks to change belief attitudes, values structure and practices so that organization can better adapt to technology and live with the fast pace of change.
The general objective of organization development is to change all parts of the organization in order to make humanly responsive, more effective, and more capable of self-renewal.
The organizational development process does not preclude the use of conventional training method, which are useful for some purpose. The management of Exim Bank is also concern about the training for its development. They believe that if the employees will be trained enough they would contribute more for the development of the banking business that is why, they send some employee in every batch. So a number of employee took training from different training institutions such as Bangladesh Bank, National Bank training Institute, Bangladesh Institute of Bank Management.
Organizational Structure of Exim Bank:
The development of on organization depends on the management style of their organizations the same the development if the bank is being occurred only for the good management team. Management of the Exim Bank controlling of all the resources of the organization. To achieve the ultimate objective of making Exim Bank the finest banking of the country, the workforce will be futuristic in outlook, professional in attitude and honest in reputation.
The board of directors wants to repose in the management all executive powers to run this service industry administration and credit portfolio independently without any undue influence from outside. The board formulates policy and give policy directives to themanagement. Transparency and accountability are strictly ensured at all leaves of the bank. Bank operate with integrity, competence and farsightedness abiding by all the principals and provisions laid down in the bank company act 1991, 1994 and the guidelines of Bangladesh Bank. The bank is committed to pursue a straight forward, upright legitimate banking business, never be tempted by the abnormal prospect of large returns to do any thing. It will only do what may be done under the national policy.
Management Structure of Exim Bank:
Registered Name : Export Import Bank of Bangladesh Limited.
Registered Head Office : Printers Building (5th floor)
5 Rajuk Avenue, Motijheel, Dhaka-1000
Phone: 9566764, 955382, 9561604.
Telex: 642527 Eximbo bj
Date of Incorporation : June 02, 1999.
Inauguration of 1st Branch : August 03, 1999.
Chairman : Mr. Md. Nazrul Islam Mazumder
Advisor : Mr. Alamgir Kabir, FCA
- 1. Managing Director : Kazi Masiiur Rahman (Managing Director)
Secretary : Mr. Mohammed Mubarak Hussein.
Auditor : M/S. Pinaki & Co.
Room # 82-83 (3rd floor)
Aziz Super Market, Shahbag, Dhaka.
Authorized Capital : 100.00 Core.
Paid up Capital : 22.50 Core.
Number of Branches : 35
Figure: 1 Performance of EXIM Bank Overa
|06.||Investment(Shares & Bonds)||82.91||141.90||237.70||154.30|
|07.||Foreign Exchange Business||1636.47||2351.83||3461.96||4931.24|
|a) Import Business||851.97||1315.25||1926.00||2678.10|
|b) Export Business||744.22||1008.82||1512.46||2241.84|
|09.||Loan as a % of total Deposit||70.73%||79.98%||80.62%||92.68%|
|10.||No. of Foreign Correspondent||175||180||185||200|
|11.||Number of Employees||356||500||627||768|
|12.||Number of Branches||10||16||19||28|
|13.||Return on Assets||2.20%||3.40%||3.15%||3.44%|
Components of capital structure and correspondent contributions:
Figure of different components of the capital for the year 2000. 2001, 2002, 2003 are shown below:
(Figures in millions taka)
|Components of capital structure||2000||2001||2002||2003|
|Paid up capital||225.000|
(41.94%)Proposed issue of bonus share——–28.125
(11.84%)—————-Proposed cash dividend*31.500
In the annual report of the year 2000, capital structure did not contain any value for the component of proposed cash dividend, but in the annual report of the year 2001, it was mentioned hat proposed cash dividend was 31.5 million taka for the year 2000. Annual reports 2000, 2001, 2002and 2003.
From the table in the last page, paid up capital was the largest component of the bank’s capital structure for each year though contribution of this component in the capital structure was declining gradually. Two components of the capital structure; proposed issue of bonus share and share premium had no contribution in the capital structure in the year 2000. It is observed that in the year 2003, there is neither proposed issue of bonus share nor proposed cash dividend. Instead of these two things the amount of retained earnings became too large.
The authorized and paid up capital of the bank was Tk. 1000 million and Tk. 225.00 million while it started its banking operation in 1999. The capital and reserve of be bank as on 31st December 2005 stood at Tk. 14000.00 million. The bank also made a 1% general provision on unclassified investments of the bank, which amounted to Tk. 188.22 million.
Hierarchy of Position Structure of EXIM Bank
Chairman è Advisor è Board of Director
Managing Director (M.D)
Deputy Managing Director
Senior Executive Vice President
Senior Vice President
Vice President (V.P)
Senior Assistant Vice President
Assistant Vice President (A.V.P)
Senior Principal Officer (S.P.O)
Principal Officer (P.O)
Executive Officer (E.O)
Assistant Officer (A.O)
Board Audit Committee
A.K.M. Nurul Fazal Bulbul
Chairman, Audit Committee
Md. Abdul Mannan Mr. Zubayer Kabir
- Export Import Bank of Bangladesh Limited has not introduced online banking system which has an increasing public demand now a day.
- Lots of works are done manually.
- They do not have their own Card facilities like Debit/Credit/ATM Card.
- There is no separate customer care department, which can work solely with customer care and for continuous improvement of services.
- The bank couldn’t use it’s full of capacity to give loan. Although Advance to Deposit ratio increased over 5 years it is very much below the standard. This indicates its excess idle fund & inefficiency in fund management..
- Shortage of manpower in every division. So during the working hour the employees can’t provide proper attention to the customer that enhances customer dissatisfaction.
- Shortage of spaces.
- Most of the branch does not have any car parking facility.
- There is no clear indication and encouragement for complaining and suggestion from the customers. Employees are also not properly instructed how to handle complains regarding their service failure.
- There are two major categorized employees one group who are from different banks or joined through competitive exams, the other group who joined here from different references. There is a big difference in term of attitude, manner, working style, and behavior between the two groups, which has bad impact to the service. Branch management also loves to ignore the problem.
- In selecting people for providing services to the customers, the employees’ personality, manners, attitudes and acceptability are not properly examined.
- Only few branches have spacious car parking facility, which discourage some customers to deal with Export Import Bank of Bangladesh Limited.
- Export Import Bank of Bangladesh Limited has a lot of growth opportunities in the consumer banking, money market operations & also export-based industries due to global economic recovery.
- It does not foresee exciting any of its business lines since it maintains balanced portfolio & it is well-positioned to increase out-thrust into diversified interests.
- They have a big opportunity if they provide online Banking system.
- They do not look forward to increase their product or service basket.
- The major challenge of Export Import Bank of Bangladesh Limited is there are already many financial institutions sharing the same size of the pie. As a result there is intense competition for generating business. Furthermore, due to the dual effect of competition & reduced rates (to the benefit of the borrower) they will find it challenging to bring their cost of fund to an acceptable level & yet maintain our high level of quality assets in our books & ensure our NPA(Non Performing Assets) is at an acceptable level.
- The emergence of several private & foreign banks within the post few years offering similar or more services with less or free charge for the facilities can be a major threat for the bank.
- Overburden with regulations & frequent changes of policies create problems in adapting clients & complying with rules, which adversely affect the business.
Bangladesh is one of the less development countries. So the economic development of the country depends largely on the activity of commercial banks. So I need to emphasis whether these commercial banks are effectively and honestly performing their functions, assign their duties, and responsibilities.
In thus respect I need to know the general banking function of those Banks as well as the EXIM Bank Limited, is to provide the general banking service.
The general banking department does the most important and basic works of the bank. All other department are linked with this department. It also pays a vital role in deposit mobilization of the branch. EXIM Bank provides different types of accounts, locker facilities and special types of saving scheme under general banking. For proper functioning and excellent customer service this department is divided into various sections namely as follows:
- Deposit Section.
- Account Opening Section.
- Cash Section.
- Bills and Clearing Section.
- Remittance Section.
- FDR Section.
- Accounts Section.
Deposit is one of the principal sources of fund for investment of commercial banks and investment of deposit is the main stream of revenue in banking business. The total deposit of the bank stood at Tk. 35,032.02 million as on December 2006 against Tk. 28,319.21 million of the previous year which is an increase of 23.70%.
In 2006 Al wadeah current deposit and other account stood at Tk. 3,463.14 million, Bills payable stood Tk. 316.70 million; Mudaraba savings bank deposits stood Tk. 1,684.52 million, Mudaraba term deposits stood Tk. 29,479.56 million and foreign currency deposits stood Tk. 87.91 million.
The total asset of the bank stood at Tk. 41,793.54 million as on December 2006 against Tk. 33,716.69 million of the previous year which is an increase of 23.95%.
In 2006 the total assets consist of cash of Tk. 3,319.12 million, balance with other banks and financial institutions Tk. 1,419.34 million, investment (Share & bonds) Tk. 2,233.25 million, investments Tk. 32,641.27 million, fixed asset Tk. 178.43 million, other assets Tk. 2,002.11 million.
Total amount of investment of the bank stood at Tk. 32,461.27 million as on December 31, 2006 as against Tk. 26,046.34 million as on December 31, 2005 showing an increase of Tk. 6,594.93 million with growth rate of 25.32%.
In the investment, general investments amounting Tk. 30,567.13 million and other investment amounting Tk. 2,074.13 million.
Investment (Share & Bonds):
The size of investment portfolio in 2006 is Tk. 2,233.25 million while it was Tk. 1,633.03 in 2005.
In year 2005 to 2006, the Investment (share & bonds) increased by 36.75%.
In this investment Government securities amounting Tk. 2,000.08 million and others amounting Tk. 233.17 million.
During the year, the bank opened 25,817 import letter of credit and import volume stood at Tk. 49,596.73 million while it was Tk. 41,432.10 million in 2005. The growth is 19.73% in comparison with previous year.
During the year, the banks export volume stood at Tk. 46,234.59 million while it was Tk. 31,285.37 million in 2005. The growth is 47.78% in comparison with previous year.
Foreign Remittance of the bank stood at Tk. 343.78 million as of December 31, 2006 against Tk. 222.97 million in 2005.
In year 2005 to 2006, the Foreign Remittance increased by 54.18%.
Performance Evaluation in 2006 of E
A bank is essentially an intermediary of short-term funds. It can carry out extensive lending operations only when it can effectively channels the saving of community. A good banker is one who effectively mobilizes the saving of the community as well as makes such use of saving by making it available to productive and priority sectors of the economy thereby fostering the growth and the development of the nation economy.
Therefore deposit is the blood of bank. From the history and origin of the banking system, we can know those deposit collection the main function of a bank.
The deposits that are accepted by EXIM Bank like other banks may be classified into,
- Demand deposits.
- Time deposits.
These deposits are withdrawn without notice, e.g. current deposit.
EXIM Bank accepts demand deposit through the opening of,
- Current account.
- Saving account.
- Call deposit from the fellow bankers.
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 time deposit (STD), bearer certificate deposit (BCD)
etc. While accepting these deposits, a contract is executed between the bank and the customer. This contract will be a valid one only when both the parties are competent to enter into contracts. As account initiates the fundamental relationship and 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 customer.
Account Opening Section:
Deposits the life blood of a bank which is invested in a bank through opening an account.
This section deals with opening of different types of accounts. It is also deals with issuing of checkbooks and different deposits books to the different accounts openers. A customer can open different types of accounts through this department such as:
- Current account
- Saving account.
- Short term deposit (STD)
- Fixed deposit (FDR)
Procedure for Opening of Accounts:
Before opening of a currents or savings account, the following formalities must be complete by the customer:
Submit application on the prescribed form.
Furnishing photographs-2 (two) copies.
Introduction by an account holder.
Putting specimen signature in the specimen card.
Mandate if necessary.
After fulfilling above formalities, opens an account for the client and provide the customer with a pay-in-slip book and a checkbook in case of savings account and current accounts.
Types of deposit accounts and their formalities :
In this kind of account a customer can deposit this money and can write one or more check to withdraw their money. For doing this notice is not required. He/she can deposit it whenever he/she wants to and also can withdraw it whenever he/she wants to.
In the Name of Individual:
The client has to fill up a light green account opening form. Terms and conditions are printed on the back of the form. The form contains the declaration clause, special instructions etc. two copies of passport size photograph duly attested by the introducer are affixed with the form.
In Joint Name:
In this type the formality is same as individual account, but in the special instruction clause, either or ‘survivor’ or ‘former or survivor’ clause is marked.
In addition the customer has to submit the valid trade license and tax paying identification numbers (TIN) along with the application.
In case of partnership account the banks ask for,
- A copy of partnership agreement (partnership deed).
- A letter signed by all partners contained the following particulars.
- The name and address of all partners.
- The nature of firms business.
The name of the partner authorized to operate the account in the name of the firm, including the authority to draw, endorse and accepting the bills and mortgage and sell the properties belonging to the firm.
On having the desire to open an account from a limited company, an EXIM Bank officer asks for the following documents.
- Registration certificate from the registrar of joint stick of companies.
- Certificate of incorporation.
- Certificate of commencement of business.
- Memorandum of association.
- Articles of association.
- Copies of annual accounts.
- Copies of board resolution, which contains.
- The name of the persons who have been authorized to operate the bank account on behalf of the company.
- The name of the persons who are authorized to execute documents with the bank on company’s behalf.
Societies, clubs and Associations:
In case of these sort of accounts EXIM Bank requires the following documents.
Registration certificate under the societies registration Act, 1962.
Copies of memorandum, articles of association.
Resolution of the managing committee.
Power of attorney to borrow.
Non- government Organization (NGO)
The account opening procedure is same but in exception is that the Registration Certificate from the Social welfare Department of Government must be enclosed with application.
Joint account in the name of Minor:
A Minor cannot open an account in his/her own name due to the in capacity to enter into a contract. He/she can open an account in EXIM bank in joint name of another person who will be guardian of him/her.
Saving bank account:
This deposit is basically meant for small-scale savers. There is restriction on withdrawals in a month. Heavy withdrawals are permitted only against prior notice. Interest is paid on these types of accounts.
Short term deposit (STD):
In short term deposit, the deposit should be kept for at least seven days to get interest. The interest offered for STD is less than that of savings deposit. In EXIM bank various big companies, Organization, Government Departments keep money in STD accounts. Frequent withdrawal is discouraged and requires prior notice.
They are also known as time deposit or time liabilities. These are deposits, which are made with the bank for a fixed period, specified in advance. The bank need not maintain cash reserves against these deposits and therefore, the bank offers higher of interest on such deposits.
In EXIM Bank, fixed deposit account is opened in two forms-midterm (MTD), which is less than one year and the other is term deposit, which is more than one year.
Opening of fixed Deposit Account:
The depositor has to fill an account form where in the mentions the amount of deposit, the period for which deposit is to be made and name/names is which the fixed deposit receipt is to be issued. In case of a Joint name EXIM Bank also takes the instructions regarding payment of money on maturity of the deposit. The banker also takes specimen signatures of the depositors. A fixed deposit account is then issued to the depositor acknowledging receipt o the sum of money mentioned there. In also contains the rate of interest and the date on will due for payment.
These rates are not negotiable. In this table we can find out the percentage that are given by the bank for specific period of time to the customer.
Fixed Deposit: 1 (one) month
Fixed Deposit 2 (two) month:
Fixed Deposit 6 (six) month:
Fixed Deposit 13 (twelve) month:
Fixed Deposit 24 (twenty four) months and above:
Loss of FDR:
In case of lost of FDR the customer is asked to record a GD (General Dairy) in the nearest police station. After that the customer has to furnish an Indemnity Bond to EXIM Bank a duplicate FDR is then issued to the customer by the bank.
Renewal of FDR:
In EXIM Bank, the instrument is automatically renewed within seven days after the date of its maturity if the customer does not come to encash the FDR. The period for renewal is determined as the previous one.
Bearer Certificate Deposit (BCD):
The bearer certificate deposit is a document of title similar to time deposit receipt issued by the bank. The document is a bearer document, hence readily negotiable. Whoever presents it to the bank has the right to get the money. There is no prescribed interest rate on such funds but EXIM Bank offers 1% less than the rate of the term deposit of different maturity. The face value of the instrument is the future value. The face is the sum of the principal amount and the interest. It is beneficial to both EXIM Bank and the investor because of the following reasons.
The banker is not required to encase the deposit before the date of maturity. Hence it is assured of funs for a minimum period.
The investor is assured of ready liquidity. In case of need he can sell the certificate in the secondary market.
As the identification of the owner is not given in the instrument, it is very much popular. During the encasement of the instrument, the excise duty and income tax (10%) is deducted. In case of premature encashment, the principal amount is only paid to the customer.
Dishonor of Cheque:
If the cheque is dishonored, EXIM Bank sends a memorandur (cheque returns memo) to the customer stating the reason in the following way:
- Refer to drawer.
- Not arranged for
- Effects not cleared. May be presented again.
- Exceed arrangements.
- Full cover not received.
- Payment stopped by drawer.
- Payee’s endorsement irregular/required.
- Payees endorsement irregular, require banks confirmation.
- Drawer’s signature differs/required.
- Alterations in date/figures/words require drawer’s full signature.
- Cheque is post dated/differ.
- Crossed cheque must be presented through a bank.
- Clearing stamp required/requires cancellation.
- Addition to bank discharge should be authenticated.
- Cheque crossed ‘Account payee only’.
- Collecting bank discharge out of date/mutilated.
- Amount in words and figures irregular/required.
If the cheque is dishonored due to insufficiency of funds than EXIM Bank charges Tk. 50/= as penalty.
Rules for Passing Cheque:
In order to enable the branches to facilitate their day-to-day transaction smoothly/efficiently/accurately, the following schedule of power for passing of cheque/instrument signature of vouchers shall come into force with immediate effect.
An authorized officer shall pass cheque for less than Tk. 10,000.00 singly after proper supervision in computer print out.
Cheque for Tk. 10,000.00 and above but below Tk. 50,000.00 shall be passed jointly by any two authorized officers after proper supervision by any one-officer computer print out. He will however also ensure that no factitious/wrong credit in the account has been posted on the day by referring to credit vouchers of the day.
Cheque for Tk. 50,000.00 and above shall be passed under joint signatures of two officers, one of whom must be Manager of the branch. The procedures regarding supervision of cheque as at (2) above must however be followed.
All’s suspense’s A/C (debit) vouchers, Sundry Deposit (Debit) vouchers, Credit A/C Debit vouchers, Expenditure A/C vouchers must be signed by the incumbent in-charge of the branch with any other authorized officer. As at the close of Business of the day all transactions (both debit & credit) shall be checked by referring to computer print out and relative cheque/vouchers.
Apart from the above it will also be ensured that the total amount of debit & credit totaling to current A/C, saving, STD & Term Deposit corresponds with the total of cash receipt/payment, transfer clearing ( both outward and inward).
Different types of products offered by EXIM Bank:
Steady money-‘Make your money work for you’
Monthly income scheme:
A monthly income scheme that really makes good sense. A sure investment for a steady return.
Highlights of the Scheme:
- Minimum deposit Tk. 25,000/-
- Higher monthly income for higher deposits.
- The scheme is for a five years period.
- Monthly income will be credited to the depositors account on the 5th of each month.
Objective of the Scheme:
- An account is to be opened by filling up a form.
- The bank will provide to thew customer a deposit receipt after opening the account. This receipt is non-transferable.
- If the deposit is withdrawn before a 5 year term, then saving interest rate will be applicable and paid to the depositor. However, no interest will be paid if the deposit is withdrawn within 1 year of opening the account and monthly income paid to the customer will be adjusted from the principal amount.
A depositor can avail loan upto 80% of the deposit amount under this scheme. In this case, interest will be charged against the loan as per banks prevailing rate. During the tenure of the loan, the MSS will be credited to the loan amount inclusive of interest.
What is Smart Saver?
Smart sever is a high return investment plan which helps a customer build up sizeable amount in a period of 5 years. This scheme offers a customer to buy Smart Saver Term Deposit 5 times the invested amount. Smart Saver is a 5 year term deposit scheme.
How does it work?
Smart Saver is available unit wise. One unit of SM is Tk. 25,000. For purchasing one unit SM a customer has to invest Tk. 5000 as down payment and the Bank will provide loan for Tk. 20000 the is repayable monthly in equal installment of Tk. 490 for a period of 5 years. At the end of the 5 years period. The SM term deposit will be encashed and customer will be paid Tk. 45,000.
Flexible Repayment Schedule:
Customer also has the option to repay in 12,24,36,48 and 60 monthly installment.
400 units i.e. Tk. 1,00,00,000 (one crore) in single /joint names.
Terms and Conditions:
- One unit of Smart Saver Term deposit is Tk. 25,000.
- During the tenure of the loan the term deposit will be kept in the bank as security.
- The customer will have to open an account and monthly installment of loan will be debited from the account commencing from 30 days after the loan account.
- Within the 1st year if the customers fail to repay 3 consecutive installments then only the principal amount of Smart Saver Term Deposit will be encashed and the loan will be liquidated inclusive of accrued interest and the balance paid to the customer. After completion of 1 years, Savings rate will be added to the principal amount of Smart Saver Term deposit. In both cases closing charges will be Tk. 500.
- For missed installment on due date customer will be charged Tk. 25 per month.
- In the event of death of customer, the bank shall be entitled to encash the term deposit and adjust the dues first before any refund is made to the nominees /successors.
- The bank reserves the right to amend the rules and rates as and when deemed necessary.
Super Savings Scheme:
Savings help to build up capital and capital is the prime source of business investment in a country. Investment takes the country towards industrialization, which eventually creates wealth. That is why savings is treated as the very foundation of development. To create more awareness and motivate people 0 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. 10,000/-.
- The period of deposit is for six years.
- Any customer can open more than one account in a branch in his name or in joint names deposit receipt will be issued at the time of opening the account.
- If the deposit is withdrawn before six years term, then savings interest rate +1% will be applied before payment is made. However no interest be paid if the deposit is withdrawn within 1st year.
- A depositor can avail loan upto 80% of the deposited amount under this scheme.
- In case of death of the depositor, before the term, the deposit (with interest at savings rate+1%) will be given to the nominee. In the absence of nominee, the legal heirs/successors will be paid on production of succession certificate.
Some examples are given in the table below. Any amount can be deposit in multiples Tk. 10,000.
Money Grower: (Monthly Savings Scheme)
Secure your future with ease. A small savings 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 rate is Tk. 500/-, 1,000/-, 2,000/- or 5,000/-.
It is a project of EXIM Bank, which is a scheme like DPS. The savings amount is to be deposited within the 10th of every month. The deposit may also be made in advance. The depositor can have a separate account in the bank for which a standing instruction can be given to transfer the monthly deposit in the scheme account. In case of failure to make the monthly installment in the scheduled time 5% of overdue installment will be charged. The charged will be added with the following months installment and the lowest charges will be Tk. 10. After three years savings in this scheme the deposited (if an adult) is eligible for a loan up to 80% of his/her deposited amount. In that case, interest rate on the loan will be applicable as per prevailing rate at that time. If the depositor fails to pay three installments in a row, then he/she will be disqualified from this scheme.
Generally, withdrawal is not advised before a five years term, but if it is withdrawn before the above term, then interest will be paid at savings rate. However no interest will be paid if the deposit is withdrawn within one year of opening the account. In case the depositor wishes to withdrawn between the 5,8,10 or 12 year period then full interest will be paid for a completed term and savings rate will be applicable for the functional period.
Table: Total savings on the basis of monthly installment and total time.
Savings help to build up capital and capital is the prime source of business investment in a country. Investment takes the country towards industrialization, which eventually creates wealth. That is why saving is treated as they very foundation of development. To create more awareness and motivate people to save, EXIM Bank offers Multiplus 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 multiplus of Tk. 10,000.00.
- The period of deposit is 10 years. But the deposit can be withdrawn at any year with interest. As an example, if deposit is withdrawn after completion of 1 year but before 2 years then deposit with interest will be paid for 1 year only. The same rule will apply for other years. If deposit is withdrawn before 1st year then no interest will be paid.
- Any customer can open more than one account in a branch in his name or in joint names. A deposit receipt will be issued at the time of opening the account.
- The depositor can avail loan up to 80% of the deposit under this scheme.
In case of issuing duplicate receipt the rules of issuing a duplicate receipt of term deposit will be applicable.
- (A) in case of death of depositor before the term, the deposit (with interest at savings rate) will be given to the nominee. In the absence of nominee, the heirs/successors will be paid on production of succession certificate.
(B) The nominee may, at his option continue the scheme for the full
Education Savings Scheme:
The most gratifying experience for parents are proper education of their children. Educational expense is rapidly increasing and therefore appropriate planning needs to be done by all parents. EXIM Bank offers customer ‘Education Savings Scheme’ to assist customer in financial planning well ahead in time for customers children’s higher education.
Terms and Conditions of the Scheme:
- Deposit of Tk. 25,000/- and multiples there of at a time will be accepted under the scheme.
- The instrument shall be issued for 7 years, 10 years, 15 years, 20 years term.
- The deposit is payable at maturity with benefit either in lumpsum or on monthly basis as education allowance for 6 (six) years starting after the completion of respective term.
- To avail the education allowance, the depositor is required to deposit the receipt or instrument with the bank duly discharged by him with the written instruction to pay the amount to his/her nominated person on monthly installment basis as stipulated in the scheme.
- Normally, no withdrawal will be allowed before maturity. But if any depositor intends to withdraw his deposit before maturity, the following rules will be applicable:
- if withdrawal is made before seven years, interest will be calculated and paid as per prevailing savings rate.
- if withdrawal is made at any time after seven years, the total amount payable at maturity of the immediate preceding term will be paid along with interest for the fractional period at prevailing saving rate.
- The depositor can avail loan up to 80% under this scheme.
- A) in case of death of the depositor the proceeds will be paid to the nominee of the depositor or in absence of nomination to the legal successors of the depositor on production of succession certificate.
- B) if after death of depositor the nominee intends to continue the deposit to get monthly educational allowance for 6 years as admissible under the rules of the scheme, the receipt of the deposit should be surrendered to the Bank duly discharged by the nominee and duly authenticated by the legal guardian on maturity.
- in case of issuing duplicate receipt the rules of issuing duplicate receipt of term deposit will be applicable.
Closing of an Account:
The closing of an account may happen.
- If the customer is desirous to close the account.
- If the EXIM Bank finds that the account is inoperative for a long duration.
- If the court of EXIM Bank issues garnishee order.
A customer may close his/her account any time by submitting an application to the branch. The customer should be asked to draw the final check for the amount standing to the credit to his/her account less the amount of closing an other incidental charge and surrender the unused check leaves. The account should be debited for the account closing charge etc. and the authorized officer of the bank should destroy unused check. In case of joint account the application for closing the account should be signed by the joint account holder. The fee for closing of an account is Tk. 25.00 for SB account and Tk. 50.00 for CD or STD account.
The cash section of EXIM Bank deals with all types of negotiable instrument, cash and other instruments treated as sensitive section of the bank. It includes the vault that is used as the beyond this time, the excess cash is then transferred to Bangladesh Bank. This section perform the following functions:
After the banking hour cash is packed according to the denomination. Notes are counted and packed in bundles and stamped with initial.
Allocation of Currency:
Before starting the banking hour all tellers give requisition of money through ‘Teller cash proof sheet’. The head teller writes the number of the packet denomination wise in ‘Reserve sheet’ at the end of the day, all the notes remained are recorded in the sheet.
Bills and clearing section:
For safety and security in financial transaction people use financial instruments like DD, PO, Cheque etc. Commercial Banks duty is to collect these financial instruments on behalf of their customer. This process that the Banks use is known as clearing and collection.
The mail function of this section is to collect instruments on behalf of the customers through Bangladesh Bank, clearing house, outward bills for collection (OBC), inward bills for collection (IBC).
Upon the receipts of the instruments this section examines the following things:
Whether the paying bank within the Dhaka city.
Whether the paying bank outside the Dhaka city.
Whether the paying bank is their own bank.
Outward Bills for Collection (OBC):
Collection of bills, which is beyond the clearing range and collected through OBC mechanism.
Inward Bills for Collection (IBC):
Collection of bills, which EXIM Bank does as an agent is called collection through IBC mechanism.
According through the 37 )2) of Bangladesh Bank Order 1972, which are the member of the clearing house, are called as scheduled bank. The schedules banks clear the cheques drawn upon one another through the clearing house. This is an arrangement by the central Bank where every day representative of the member banks gather to clear the cheques. Banks for credit of the proceeds to the customers account accepts cheques and other similar instruments. The banks receive many such instruments during the form account holders. Many of these instruments are drawn payable at other banks. If they were to be presented at the drawer banks to collect the proceeds it would be necessary to employ many messengers for the purpose. Similarly there would many cheque drawn on this the messengers of other banks would present bank and then at the counter. The whole process of collection and payment would involve considerable labor, delay, risk and expenditure. All the labor, risk, delay and expenditure are substantially reduced by the representative of all the banks meeting at a specified time, for exchanging the instruments and arriving at the net position regarding receipt of payment.
The place where the banks meet and settle their dues is called the clearinghouse. The clearinghouse sits for two times a working day. The members submit the climbable cheque in the respective desks of the banks and vice-versa. Consequently the debit and credit entries are given. At the debit summation and the credit summation are calculated. Then the banks clear the balances through the cheques of Bangladesh Bank. The dishonored cheque are sorted and returned with return memo.
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