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.
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.
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
a. Descriptive method
b. Conventional versus Islamic banking
c. Performance and Growth
d. SWOT analysis
1.4 Sources of Information:
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 $ata
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
Face to face conversation with the employees
Appointment with the top officials of the Bank &
By interviewing customers at Exim, New Eskaton Branch
Secondary sources that will be used in the study will include:
Bank’s Annual Report
Group Business Principal manual
Group Instruction Manual & Business Instruction Manual
Prior research report
Any information regarding the Banking sector
• Different books and periodicals related to the banking sector
• Bangladesh Bank Report
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.
Some desired information could not be collected due to confidentially of business
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
• Md. Nazrul Islam
• 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
• Md. Abdul Mannan
• Rabeya Khatoon .
• Mahmuda Begum
• Nasima Akhter
• Sabira Sultana
• Mamtaj Begum
• Md. Shaiful Alam
• Hamida Rahman
• Meer Joynal Abedin
2.2 Board of Directors
Md. Faiz Ullaha
A.K.M. Nurul Fazal Bulbul
Md. Habibullah Directors
Md. Nurul Amin
Md. Golam mahbub Company Secretary
2.4 Vision of The Bank
the gist of our vision is ‘Together towards Tomorrow’. Export Import Bank 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
• 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
• Corporate Finance
• Industrial Finance » Lease Finance
• Hire Purchase Finance
• Commercial Investment
• Project Finance
• Syndicate Investment
• Retail Investment
• Mortgage Invesrment
• Loan against Share and Securities
Non Resident Foreign Currency Deposit Account(NFCD) Foreign Currency Deposit Account
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..
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.
|6||Investment(Share on Bonds)||154.30||163.30||223.33||245.77|
|7||Foreign Exchange Business||4931.24||7294.00||9617.51||11790.01|
|a) Import Business||2678.10||4143.20||4959.67||6139.94|
|b) Export Business||2241.84||3128.50||4623.46||5579.09|
|9||Loan as a % of total Deposit||101.33%||91.97%||93.18%||96.75%|
|10||No. of Foreign Correspondent||200||222||246||246|
|11||Number of Employees||768||934||1020||1104|
|12||Number of Branches||28||28||30||35|
|13||Return on Assets||3.44%||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
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.
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
Recommendation and Conclusion
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.
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.