An Internship Report of Foreign Exchange Service of Bank Asia Limited

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Chapter 1 : Introduction

1. Introduction

The banking sector in Bangladesh comprises of four categories of scheduled banks. These are, nationalized commercial banks (NCBs), government owned development finance institutions (DFIs), private commercial banks (PCBs) and foreign commercial banks (FCBs). Performance of these banking sectors under CAMEL framework, which involves analysis, and evaluation of the five crucial dimensions of banking operations, the five indicators used in the rating system are (I) Capital adequacy (ii) Asset quality (iii) Management soundness (iv) Earnings and (v) Liquidity. In addition, foreign Exchange Service is one of the major considering factors regarding these indicators.

The bank acts as a media for the system of foreign exchange policy. The principles of foreign exchange service involve the entire system, the media used, and the monetary unit. According to Mr. H.E. EVITT " Foreign Exchange is that section of economic science which deals with the means and methods by which right to wealth in one country's currency is converted into rights to wealth in terms of another country's currency." So bank should be aware about this section for the overall development of the economy.

2. Background of the study

An internship program’s necessity is originated for implementing the theoretical knowledge in particle field. Therefore, internship program is included in BBA program. The goal of this report is to identify the contribution and the effect of foreign exchange service in Bank’s net profit.

1.3 Rational Of the Study
The rational of the study is to know more about the course in practical life. This study also helped me to know the banking system. From this study I learned about the different functions in the bank like offering online banking, pay order, foreign remittance, foreign trade, investment etc. I also learned how the banks perform these functions, what problems they face, and their benefit in offering different services to their clients. Then I was assigned in foreign trade department, so I have learned about L/C Files, register and over all L/C mechanism. In this section, how they provide their services to the clients I have also learned about it. As a student of Finance, it is very important for me to acquire proper knowledge in this course to get better result in the future.

1.4 Objectives of the Study

1) The prime objective of the study is to understand various functions of Banks. I tried to evaluate the present condition of the banks. 2) To know about various products & services of this bank, and to know about the banking terms as well as habituate with banking environment. 3) To know how they find out the risk of the foreign trade.

4) To know how they identify these types of risk and minimize them.

1.5 Methodology of the study

For preparing the report, I followed the following steps:
➢ Primary Information: First, I collected data about the Foreign – Exchange Service in Bank Asia ltd. MCB Dikusha Branch by tenting to personnel working in the bank. ➢ Secondary Information: Then in the second stage, I analyzed the collected data, working in Foreign Trade Department. Again, • Personal Observation

• File Finding
• Annual Reports of BAL
• Articles of BIOM helped to prepare this report.

1.6 Limitations of the Study

Not all the information of a Bank can be disclosed. It is very much essential for a bank to provide security to the customer. So the perfect information might not be shown in all places. The Employees of the Bank are also very busy. Therefore, the employees of the bank do not have enough time to provide me help regarding preparing report. Therefore, it was very hard for me to collect the data and bring out the proper information in order to make report look good. I had to go through many obstacles in order to make it presentable.

1.7 Scope of the Report

The...
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