It is almighty Allah (SWT) who enables me to successfully complete the Internship Report on “General Banking of EXIM bank Ltd.”. A large number of individuals have helped directly & indirectly to prepare this report. I am grateful to them. Internship program is an integral part of BBA course of International Islamic University Chittgong (IIUC). Every BBA student was assigned to conduct internship program in the practical field directed by the studied subject to learn something within the pre-stipulated time by observing these organizations’ daily practices about the factors. In this regard, my internship was arranged in the EXIM bank with the deliberate counseling of Sultana Akter, Lecturer of DBA, Int’l Islamic University, Chittagong to find some time from his very busy schedule to give accurate direction about the internship report activities. First of all my hearty thanks go to him who had been very keen at showing me the exact way to prepare this compact report. My thanks go to Md. Anisur Rahman Chowdhury (AVP & Relationship Manager) who has given me an opportunity to conduct my internship in their well-known branch. My special thanks and gratitude to Mr. Abdul Kader Chowdhury (S.P.O), Mr. Faruq Mahmud Hasan (S.P.O), Mr. Kazi Md. Mursed Newaz (P.O), Imran Uddin Azad (P.O), Mrs. Sipra Devi (P.O), Mr. Anowerul Islam (E.O), Ms. Meher Afroz (S.O),Mr.Ibrahim Mostofa(SO), Mr. Rafiqul Islam (S.O), Ms. Maksuda Khanom Labony (S.O), Mr. Md. Parvez Islam (Officer), Mr. Fazle Azim (S.O), Mr. Kanchon Sarkar (Officer), Mr. Alamgir Hossain (Officer), Md. Nurul Karim (A.O) and Mr. Hosne Mubarak (A.O) of EXIM Bank Ltd. CDA Avenue Branch, for their friendly behavior and cordial help to work in an unknown environment. I am also grateful to other staffs and clients in this organization. Thanks everybody from the core of my heart.
Internship Program of BBA under the faculty of Business of IIUC is an obligatory part for all students. The report includes the practical knowledge and information observed and obtained during the program. Exim Bank divides its operation mainly three parts- General Banking, Foreign Exchange and Loan & Advances. . But this internship report has been prepared on the “Principles and practices of General Banking EXIM bank Ltd.” The report contains six chapters with organizational framework. In chepter 1 Bacground of the study contains introduction,objective of the report.sources of data like primary sources and secondary sources,Limitation of the report and timing of the study . In Chepter 2 Overview of Exim bank Focus on History of bank, In July, 2004 the bank has converted into Shariah based Islamic banking.Social responsibilities of Exim bank,Growth Strategy,Existing Services or Products of Exim Bank and Organization Structure of Head office and CDA Avenue . In Chepter -3 Shows 5 Financial Performance Of Exim Bank in the sector of Deposit,Investment and Export Import. In Chepter -4 shows General Banking Function,Procedure which is the Main Part of this report.In this Chepter escribes about the general banking 8 Section Like account Opening,Cash.Remittance,Clearing and Collection,Account,Dispatch,On Line Branch Banking Section,Anti money Laundering Section In Chepter-5 Shows CDA Branch position Of Exim Bank bangladesh Ltd.and I mentioned some Strength, weakness, opportunities and threats of Exim bank General Banking CDA Avenue Branch. In Chepter-6 I have found out some problems which are very crucial. In the future, those problems can create the main barrier for them to compete with other banks. According to the problems, I have tried to give some recommendation which I think will be beneficial for the bank. Topic No.
Title of the Contents
Background Of The Study
Objectives of the study
Scope of the study
Limitation of the study
Timing of the study
Overview Of EXIM Bank BD Ltd.
About Exim Bank
History of Exim Bank
Conversion into islamic banking
Shariah counncil of Exim Bank
Vision and Mission of Exim Bank
Growth Strategy of Exim Bank
Social responsibilities of Exim Bank
Prime Operational areas of Exim Bank
Function of Exim Bank
Existing Service Rendered by Exim Bank
Organizational Structure of Exim Bank
Financial Performance Of Exim Bank
General Banking Function
General Banking Department
Account Opening Section
Clearing and Collection
On Line Banking Section
Anti-Money Laundering Section
Analysis of CDA Avenue Branch
Problems ,Recommendation And Conclusion
Internship is a partial requirement of graduation program. It brings a great opportunity for the student to get some amazing and excellent ideas about the practical working field. The main and challenging task is to prepare Internship Report by which a graduate can show his/her logical ability efficiently. EXIM Bank Ltd. is one of the third generation growing private commercial banks in Bangladesh. From the early commencement of its business in the banking industry its aim is to become market leader in this trade and set new standards of customer services. EXIM BANK is interests free Islamic Bank. It operates the whole banking system in the light of Islamic Shariah. Exim bank wants to ensure equitable distribution of wealth & income and socioeconomic justice. At first, I discussed objectives, methodology, scope, limitation, Timing of the study in bacground of the study in Chepter-1. Then I focused five topics under five chapters. I have described OVERVIEW OF EXIM BANK LTD in Chapter-2, FINANCIAL PERFORMANCE OF EXIM BANK in Chapter-3, GENERAL BANKING FUNCTION in Chapter-4, GENERAL BANKING PERFOMANCE OF EXIM BANK CDA AVENUE BRANCH in Chapter-5.Problems in General Banking department.and recommend some corrective measures to resolve the problem in Chepter-6. EXIM BANK provides the foundation of Banker-Customer relationship through account opening in general banking department. This is the busiest department and daily transaction is concerned to the customers for withdrawing or depositing money, selling of instruments for remittance purpose, collecting instruments and providing other ancillary services to clients and keep customers section busy.
1.2 OBJECTIVES OF THE STUDY
The first objective of writing this report is to fulfill the partial requirements of the B.B.A program. Gather knowledge about the laws and practices followed by EXIM BANK Ltd. in General Banking. Other Objective of the report is to familiarize with the operation in the Banking arena including Management of the bank and analysis of banking operation in different section. Especially the objectives of the study area are as follows. To highlights on the Overview of EXIM BANK Bangladesh limited. To know Financial performance of exim bank.
To know the general banking function its procedure, rules and regulation. To evaluate general banking performance of EXIM Bank CDA Avenue Branch. To find out the problems in general banking Department and To recommend some corrective measures to solve the problem.
The Standardization of a report mainly depends on proper data collection sources this report has been prepared on the basis of the experience gained during the period pf the internship.for preparing this report data have been collected from both primary and secoundary sources. PRIMARY DATA COLLECTION:
Interviewing the bank officals of exim bank ltd cda avenue branch Official records and observing practical work.
practical desk work.
Face to face conversation with the officers.
SECONDARY DATA COLLECTION:
Annual report of EXIM bank Ltd.
Publihed booklet of the bank.
Banks financial statement.
website of EXIM bank LTD
Various published documents.
different circular issued by head office of EXIM bank LTD and bangladesh bank. monthly transaction record of the bank.
Marketing research book.
After analysis the primary and secondary data I get some problems and recommend that how to remove this problem.
1.4 SCOPE OF THE STUDY
The scope of the study on EXIM bank is vast.but it is hardly possible to become famililiarized with the total banking system within three months.The study was capt limited to Export Import bank of Bangladesh limitied,CDA avenue branch,Chittagong.This branch deals in all kinds of banking businesses under overall control of Bangladesh bank and this follows the regulations set by Bangladesh bank.Scops of the study has been describes in terms of two grounds. ORGANIZATIONAL SCOPE:
I worked in every important department of EXIM bank LTD,CDA avenue branch chittagong.I have emphasis on general banking department. FIELD SCOPE:
This study has been started after completing the BBA course and continued for three months.
1.5 LIMITATION OF THE STUDY
It is not possible to reflect actual situation by considering limited resources.It is not easy to complete all the aspects of banking clearly because our Tenure was for Three months only which was somehow not sufficient after working whole day in the office.it was very much difficult if not impossible to study again the theoretical aspects of banking. LIMITATION OF THE STUDY ARE FOLLOWS
The duration of internship programme is only three months.the allocated time is not sufficient for us to gather knowledge and fullfill one. The study suffered inadequency of data.
Personel limitations like lack of department in analytical banking knowledge also may cause short comings in the report. The data will be collected from the customers if they agree to join in on interview session. The officals are very co-operative but they ar too busy to give me time to get knowledge about bank all activities. Insufficient investigation in all activities of department.
1.6 TIMING AND SCHEDULE OF THE STUDY
A student can be acquired with real life situation through internship program where he can handle different types of work related with his designated area. For my research I was assigned to work Exim bank CDA Avenue Branch. I have given only 3 (three) months for internship program. Actually It was not possible to cover all the Banking activities within limited time (3 months) given by the Department of Business Administration of International Islamic University Chittagong. That’s why I was assigned to work on General Banking activities of Exim bank limited CDA avenue Branch.
Schedule of the study:
Dept. of General Banking
Dept. of Cash receipt & cash payment
Dept. of Investment
OVERVIEW OF EXIM BANK
2.1 ABOUT EXIM BANK
Export Import Bank of Bangladesh Limited (Exim Bank) is one of the leading private commercial banks in the country.this banks came in to operation as scheduled commercial bank on 3rd August 1999 as per rules and regulations of Bangladesh Bank. Of its very beginning EXIM Bank Bangladesh limited was known as BEXIM Bank Limited. But some legal constraints the bank renamed as EXIM Bank, which means Export Import Bank of Bangladesh Limited. At present the bank is performing its work all over the country by 62 branches.Exim bank plays an important role and contribution toward conducting business in the countrys Export and Import.Exim bank has already lunched “EXIM KISHAN” an agricultural product in line with the directive of Central Bank for agricultural investment. Corporate Social responsibility (CSR) is one of the most concerned areas of the Bank. The bank has contributed generously in humanitarian activities as well as social and cultural activities including undertaking scholarship programs. for ensuring the best and modern customer service exim bank has been using computer and other moderate technology to conducting bankings operation from its inception.
2.2 HISTORY OF EXIM BANK
Export Import Bank of Bangladesh Limited was established in the year 1999 under the leadership of Late Mr. Shahjahan Kabir Founder Chairman who had a long dream of floating a commercial bank which would contribute to the socio-economic development of our country. He had a long experience as a good banker. A group of highly qualified and successful entrepreneurs joined their hands with the founder chairman to materialize his dream. Indeed, all of them proved themselves in their respective business as most successful star with their endeavor, intelligence, hard working and talent entrepreneurship. Among them, Mr. Nazrul Islam Mazumder who is an illuminated business Tycon in the Garments business in Bangladesh became the Honorable Chairman after the demise of the honorable founder chairman. He is also the chairman of Bangladesh Association of Banks (BAB). This Bank starts functioning from 3rd August, 1999 with its name as Bengal Export Import Bank Limited. On 16th November 1999, it was renamed as Export Import Bank of Bangladesh Limited with Mr. Alamgir Kabir as the Founder Advisor and Mr. Mohammad Lakiotullah as the Founder Managing Director respectively. Both of them have long experience in the financial sector of our country. The year 2006, Mr. Kaji Masiur Rahman became the Managing Director of the bank when Mr. Lakiotullah left the bank after completion of his successful 7 years as MD. Mr. Kaji served in the bank for next five years. In 25th August, 2011, Mr. Md. Fariduddin Ahmed has joined in the bank as Managing Director. With his long experience in the Shariah Based Islami banking in Bangladesh, EXIM Bank is going to take a new shape where IT-enable banking service will spread in the market.
2.3 CONVERTION INTO ISLAMIC BANKING
Bangladesh is one of the largest muslims countries in the world .the people of the country are deeply committed of islamic way of life as enshrined in the holy Quran and the Sunnah Exim bank in the 6th year 2004 in its operation has got a remodel in establishing its image as on of the leading private sactor bank.There were possible for being started full fledge islamic banking system in its banking operations Under the ledership of Mr.lakiotullah.the bank has migrated all of its Conventional bankings operation into shariah based islamic banking in the year 4 July 2004.
2.4 SHARIAH COUNCIL OF EXIM BANK
To guide monitor supervise the banking a learned shariah council is working in this bank since inception of its islamic banking branches which has become more effective after transformation of its operation from traditional to fully shariah based islamic banking system.To ensure the proper implementation of Ismamic banking principles in its operation the bank fromed a strong sgariah supervisory commitee consists of following 11 learned and elite mufti well-reputed Economists and bankers of the country.Proffessor Maulana Mohammed salah Uddin is the chairman of the council.
2.5 VISION AND MISSION OF EXIM BANK
EXIM BANK VISION:
The gist of our vision is ‘Together towards Tomorrow’. Export Import Bank of Bangladesh Limited believes in togetherness with its customers, in its march on the road to growth and progress with service. To achieve the desired goal, there will be pursuit of excellence at all stages with climate of continuous improvement, because, in EXIM Bank, we believe, the line of excellence is never ending. Bank’s strategic plans and networking will strengthen is competitive edge over others in rapidly changing competitive environment. Its personalized quality services to the customers with trend of constant improvement will be the cornerstone to achieve our operational success.
EXIM BANK MISSION:
The Bank’s mission gives emphasis to:
Provide quality financial service especially in foreing trade. continue a contemporary technology based profeesional banking environment. maintain corporate and bujsiness ethics and transparency at all levels. Sound capital based.
Ensure sustainable growth and establish full value to the honorable stakeholders. fulfill its social commitments.
above all to,add positive contribution to the national economy. Being the trusted repository of customers and their financial advisor.
2.6 CORPORATE CULTURE
During the last two decades Corporate Culture has become an important theme in business as an intangible concept which clearly plays a meaningful role in corporations, affecting employees and organizational operations. It is not the only determinant of business success or failure, a positive culture can be a significant competitive advantage over organizations with which a firm competes. We, as an amenable bank, believe if the employees identify with the culture, the work environment tends to be more enjoyable, which boosts morale and leads to increased levels of teamwork, sharing of information, and openness to new ideas.
2.7 STRUCTURAL GROWTH STRATEGY OF EXIM BANK
To deliver the highest quality service and performance so that customers choose EXIM first. 1. High standard of corporate and business ethics
2. To create shareholders' wealth
3. To make the stock as being superior long term investments so that investors come forward to buy EXIM's share. 4. To create and maintain a congenial atmosphere so that people feel proud and eager to work in EXIM Bank of BD Limited 5. To be the best for the customers, EXIM wants to become a team that would manifest utmost faith in the bank, show respect for colleagues and commit to the high standard of quality and professionalism.
2.8 SOCIAL RESPONSIBILITIES OF EXIM BANK
At least 2% of our annual profit of every year is put aside for the foundation to conduct Corporate Social Responsibilities (CSR) activities. The mainstream CSR activities that are carried out through this foundation are:
Health care service
Scholarship progrram for brillian poor student.
Education promotion scheme(interest free loan).
Helping people effected by natural calamities.
Helping people in slum areas.
Donation to educational institutions to set up lab.
2.9 PRIME OPERATIONAL AREA OF THE BANK
As a full-fledged Islamic bank in Bangladesh, EXIM Bank extended all Islamic banking services including wide range of saving and investment products, foreign exchange and ancillary services with the support of sophisticated IT and professional management. The investment portfolio of the bank comprises of diversified areas of business and industry sectors. The sectors include textiles, edible oil, ready-made garments, chemicals, cement, telecom, steel, real State and other service industry including general trade finance. The bank has given utmost importance to acquire quality assets and is committed to retain good customers through customer relationship management and financial counseling. At the same time efforts have been made to explore/induct new clients having good potentiality to diversify and create a well established structured investment portfolio and to minimize overall portfolio risk.
2.10 FUCTIONS OF EXIM BANK
The functions of Exim bank Ltd. has similarity with other bank.as a commercial bank in the private sactor its play a great role in investment sactor of bangladesh for the individual and corporate. The main functions of Exim bank Ltd
To mobilized idle fund by way of current,saving,short-term deposite. To conduct and finance Export Import business.
To open letter of credit.
Capital market investment.
To investment in trade and business.
To investment in small-scale enterprise.
To provide working capital.
To allow sysdicate loan.
To finace in the project.
To allow lease finance.
Contributory savings schemes.
Monthly benefit deposit scheme.
2.11 EXISTING SERVICES RENDERED BY THE BANK
The corporate mission of exim bank is to mobilize financial resources from within and abroad to contribute to Agricultures,Industry and socio-economic development of the country and to pay a catalytic role inthe formation of capita,and the corporate Vision is to serve the nation as a progressive and socislly responsible financial institusion by bringing investment and Commerce together for profit and sustainable growth.
2.12 ORGANIZATIONAL STRUCTURE
EXIM BANK OF BANGLADESH LIMITED(HEAD OFFICE)
EXIM BANK OF BANGLADESH LTD
(CDA AVENUE BRANCH)
FINANCIAL PERFORMANCE OF EXIM BANK
FINANCIAL PERFORMANCE OF EXIM BANK LTD
The performance of the bank was very significant both in terms of development and achievement of the year of 2010,total asset and liability of the bank were tk 113070.98 million and tk100596.13 million respectively as against tk 83329.34 million and tk 76612.13 respectively as on31 december 2009.in2010 the bank successfully mobilized tk 94949.40 million of deposit through its 59 branches and disbursed investment of tk 93296.65 million as against deposit of tk73835.46 million and investment of tk68609.91 million respectively in 2009.in the year 2010 total income expenditure of the bank were tk 13723.95 million and tk 7830.16 million respectively as against tk10383.62 million and tk7201.84 million respectively in the previous year.in 2010 the bank earned operating profit of tk 5893.79 million with an annual growth of 88.23% comparing to tk 3181.78 million in 2009 the return on asset(ROA)after tax was 3.54% for the year 2010.which was 2.19% in previous year. CAPITAL:
while inception in 1999 the bank authorized capital was tk 1000 million and paid up capital was tk225 million subscribed by sponors. its authorized capital was enchanced to tk 3500 million in the year 2006.bank authorized capital was further augmentad to tk 10000 million in 2009 and 2010 also 10000 million. (figure in million)
The bank increased its reserved from tk 2092.97million to tk.3154.76 million which is quite sufficient compared to the position of previous year. (figure in million)
deposit is the main source of fund invested to generate revenue in banking business. the total deposit of the bank stood at tk 9449.40 million as on 31 december 2010 against tk 73835.46 million of the previous year with an increase of tk 21113.94 million at a growth rate of 28.60%. (figure in million)
DEPOSIT PORTFOLIO OF EXIM BANK BD LIMITED:
total investment of the bank was tk 93296.65 million as on 31 december 2010 against tk 68609.91 million as on 31 december 2009 showing an increase of tk 24686.74 million with the growth rate of 35.98% the bank performs appropriate investment risk analysis while approving investment to customers. (figure in million)
INVESTMENT(SHARES AND SECURITIES):
The size of the investment portfolio as on 31 december 2010 was 6012.86 million(including investment in subsidiaries)while it was tk2189.54 million in 2009 (figure in million)
In the year bank handle 129570.73 against import business 83911.51 million which is 54.41% higher from the previous year. (figure in million)
Export business of the bank stood at 95359.45 million in 2010 against export business 76240.77 in 2009 which is 25.08%. (figure in million)
bank grasped 3036.42 millon in 2010 it was 2452.33 in 2009 which means the growth rate in 2010 was 32.82%. (figure in million)
General Banking is designed to provide Financial service to the general people.General Banking sactor includes customer services department.Customer service department provides varies client services their clients.Customer service department is the most important department because the first customer wants to know their various information about banking related service from this department.So these department should satisfy to their client with the best service.Banking goodwill will be effected if customer service department cannot satisfy their client properly.General banking Department plays a vital role in banking activities.The starting point of all the banking operations is general banking. At first I have been placed in the General Banking Department.General Banking Department performs the majority functions of a bank.It is the core department. 4.2 GENERAL BANKING FUNCTIONS
There are 3 major department in bank
out of these three major department general banking is important one.general banking is the heart of the banking system.Functions of general banking department of exim bank are given below- Maintainance of deposit.
Opening different types of account.
Receipts and payment of cash.
Handling transfer transactions.
Operations of clearing house.
Maintainance of account with bangladesh bank and others banks. Collection of cheques and bills
Issue and payment of demand drafts,telegraphic transfer and pay order. Executing customer standing instracctions.
Maintainance ofsafe deposit lockers.
Maintainance of internal accounts of the bank.
Reporting to head office about daily position.
Savings all transactions record in computer.
Closing and transfer of different types of acount.
keeping good relation with valued customer.
Providing neccessary support to the customer.
Control money Laundering.
4.3 GENERAL BANKING DEPARTMENT
Customers give their deposit and meet their demand for cash honoring cheques. The customers open new account, remit funds, issues bank Draft and pay order etc.there are eight sections in general banking department. these sections are very essential part of banking activities.to render various services to their clients. These sections help bank to perform its banking activities in systematically and efficienly.these sections are- Account opening section.
Bill and clearing section.
Mail and dispatch section.
On line branch banking section.
Money laundering section.
4.4 ACCOUNT OPENING SECTION
To establish a Banker and customer relationship Account opening is the first step. Opening of an account binds the Banker and customer into contractual relationship. But selection of customer for opening an account is very crucial for a Bank. Indeed, fraud and forgery of all kinds start by opening account. So, the Bank takes extremely cautious measure in its selection of customers.various task performed in this section such as Opening of different types of account.
Issue of cheque book
Transfer and closing of account.
Enquiry of account.
Checking the Signature of the clients.
There are different types of account in exim bank.
Al-wadiah current deposit.
Mudaraba Saving deposit.
Mudaraba short-term deposit.
Mudaraba term deposit.
Mudaraba scheme deposit receipt.
1. Mudaraba Monthly savings scheme(mss)
2. Mudaraba Monthly income scheme(mis)
3. Mudaraba super savings scheme(sss)
4. Mudaraba multiplus savings scheme(mmpss)
5. Mudaraba Hajj scheme.
6. Mudaraba Denmohor/Marrige account
7. Mudaraba student saver
Al-Wadiah Current Deposit Account:
Al-Wadiah Current Account follows the Principle of Islami Shariah wherein the bank is deemed as a keeper and trustee of funds as Al-Amana (on Trust). This deposit that operates by taking permission from depositors would be taken to use their fund according to Shariah Principle and depositors would not receive any kind of profit. As such the bank is under obligation to return the entire money on demand by the customer. The account is not time barred i.e. Account Holder can withdraw money as many numbers of times as he wishes in a working day. Main features
Halal way or without Riba (interest or usury) transaction Unlimited deposit or withdrawal Profit will be given.
Cheque book facilities.
ATM Card Free online transaction.
No Over Draft will be allowed in the account.
SMS banking service includes balance inquires.
Mudaraba Savings Deposit Account
Mudaraba savings account is opened under the Mudaraba principal of islami Shariah. Under the above principal the clients is the Shaheb-Al Mal and the Bank is Mudarib. Mudaraba Saving accounts are mainly meant for Non-Trading customers who have some potential saving with small no. of transactions taking place. More than one person can open and operate a Mudaraba savings account. . The account provides expected half-yearly provisional profit. Main features
Attractive provisional rate of profit.
Minimum initial deposit is Tk.1000.00.
Half-Yearly account statement.
Debit card Facility with limited withdrawal.
Cheque book facility.
Fund transfer facility
Profit will be calculated on monthly basis
Mudaraba Term Deposit Reicept Account
Mudaraba Term Deposit Receipt (MTDR) account is opened under the Mudaraba (Profit Sharing) principal of Islamic Sariah. Under the above principal the clients known as Shaheb-Al Mal provides 100 percent of the capital and the Bank known as Mudarib is the one providing its specialist knowledge to invest the capital and manage the investment project. , for a fixed period but not less than one month with a commitment to return his/their deposited money with more or less certain percentage of profit (Tax applicable) after expiry of the period. main features
One or more account can be opened in the same name at the same branch of the bank. Profit will be calculated on daily basis on provisional rate of profit and also applied on due date of maturity. Fixed period.
Mudaraba Scheme Deposite Receipt
It is another types of receipts issued by bank against deposit of certain amount of money on installment basis or single deposit for a fixed period with commitment to return along with more or less certain percentage of profit after expiry of the period.there are different types of scheme deposits of Exim bank.
Mudaraba Monthly Savings Scheme
Mudaraba Monthly saving scheme Secure your future with ease. A small savings of today will provide you comfort tomorrow.
Mudaraba Monthly income scheme
This monthly income scheme Proper utilization of savings from stipend, wage earning, retirement benefit.The client get higher monthly income for higher deposit.
Mudaraba super saving scheme
This Super Savings scheme 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.
Mudaraba Multiplus Savings scheme
To gather public's idle money in exchange of high return within the shortest possible time.
Mudaraba Hajj Deposit(MHD)
If Mudaraba hajj deposit holders is not able to performed hajj then profit will not given According to hajj scheme. and if account holders died then according to his/her nominee or inheriotor under proper proff will get the money according to mudaraba saving scheme rate.
Accounts will be considered dormant/inoperate if there has been no deposit and withdrawal for last 12 monts in al-wadiah account and for 2 years or 24 months for mudaraba savings deposit accounts are called and marked as dormant accounts.Manager will pass cheques of dormant/inoperate accounts.Manager may convert a dormant account into regular account after considering satisfactory application of the account holder for making transaction in the account profit will be credited into this account as usual.
Those Al-Wadia account or mudaraba savings accounts are continously running as incoperative/dormant accounts for five years are called unclaimed account.overdue MTDR,DD payble,TT payble,Sundry deposit,pay order for three years and above are also called unclaimed accounts.All unclaimed accounts will be treated as al wadia cd accounts and no profit to be paid into these types of account.
PROCEDURE TO OPEN AN ACCOUNT
For opening an account, at first the prospective account holder will apply for opening an account by filling up account opening form. Account opening form consists of the name of the branch, type of account, name of the applicant(s), present address, permanent address, passport number (if any), date of birth, nationality, occupation, nominee(s), special instruction (if any), initial deposit, specimen signature(s) of the applicant(s), introducer’s information etc. The prospective customer should be properly introduced by the followings: 1. An existing customer of the bank
2. Officials of the bank.
3. A responsible person of the locality who ia well known to the manager. Two copies of passport size photograph duly attested by the introducer. Signature of the prospective account holder in the account opening form and on the specimen signature card duly attested by the introducer. Then the concerned authority will allocate a number for the new account. Then customer deposit the initial deposit
After depositing the initial deposit the account is considered to be open.After depositing the initial deposit it records in the computer by givingm a new account number.If the customer have already account in bank then the account number is different but customer ID is one.
NACESSARY PAPERS FOR OPENING AN ACCOUNT
Passport size photograph 2 copies duly signed and attrested by the introducer. One copy photograph of the nominee duly attested by the intedding account holder Copy of passport/national id card/driving license/office id/any id card acceptable to the bank. TIN certificate.
To copies passport size photograph of each duly signed and attested by the introducer. Join account declaration from.
Photograph of the nominee duly allested by the intending account holder(if necessary) Copy of passport/national id card/driving license/office ID/Word commissioner certificate/any ID acceptable to the bank. TIN certificate(if necessary).
To copies passport size photograph of each who will operate the account duly signed and attested. Certified copy of valid trade license.
Certificate copy of registered partnership deed.
partnership account agreement.
Resolution of the partners to open the account and authorization for its operational duly certified by the managing partner. Copy of passport/national ID/driving license/any ID card of the operators acceptable to the bank. Proprietorship Account
Two copies passport size photograph duly signed and attested. Certified copy of valid trade license.
Photo of nominee duly attested by the proprietor of the firm. Proprietorship declaration form.
Copy of passport/national ID/any card acceptable of the bank.
To copies passport size photograph of the minor duly attested by the legal guardian. Two copies passport size photograph of the legal gaudian who will operate the account duly attested by the introducer. Attested birth certificate of the minor.
Attested copy of passport/national ID cadr/ driving license/any id card acceptanble to the bank. Limited Company Account
Attested two copies photograph of each persons who will operate the account. Cetified copy of the memorandum and articles of association. Certified copy of certificate of incorporation.
Certified copy of certificate of commencement of business(in case of public limited). Lates list of directors.
Certified copy of forms-xII certified by the register of joint stock company. Resolution of the board in banks pescribed form.
Board resolution for opening the account.
Copy of updated trade license.
Updated TIN certificate.
Certificate of registration in case of insurance.
Copy of passport/national ID/driving license any other ID acceptable to the bank of the operatioors of the A/C. Association/Club/Trust/Society/ Charity/Educational institution/Madrasa Account Certified copy of By-Laws/Memorendum and articales of association/trust deed. Certified copy of certificate of registration from the concerned department. List of members of the governing body.
Resolution of the board for opening the account and authorization for its operation duly certified by the cairman/secretary/president. Registration certificate(if register).
Attested two copies photographs of each persons who will oprate the account.
ISSUE OF CHEQUE BOOK
A cheque is an instrument in writting containing an unconditional order signed by the maker.directing the bank to pay on demand or at a fixed determinable future time,a certain sum of money only to,or to tne order of a certain person or to the bearer of the instrument.Cheque book is generally issued at the time of opening account by obtaining application for cheque duly signed by the account holder if a Al Wadiah account,Mudaraba savings account,mudaraba term deposit receipt account is opened. while issuing a cheque book the same must be branded with related account number.The officer should also put his/her initial beside the cheque Number. The cheque series will be entered in the space provided for in the Cheque Book issue Register and also in application for Cheque Book. The authorized officer will count the berries and is found in tact, will sign the requisition slip provided in the cheque book and will initial the register and cheque series in the application for Cheque Book. Whenever an application on Bank's requisition slip provided in the cheque book is presented by the customer personally, the specimen signature, balance of the account must be verified and if it permits the issue of a cheque book, the same will be issued in the above manner but the cheque series of the cheque book issued must be noted and authenticated on the Requisition Slip. TRANSFER OF ACCOUNT:
In acount opening saction if needed account can be transferable.An account of a branch could be transfered to another branch of Exim Bank Transfering the account following procedure must be observed A letter of request must be obtained and on receipt of the same the signature thereon shall be verified. The unused cheque leaves as per record shall be collected and destroyed with a note on the application form. The relative account folio shall be summated and final balance shall be drawn. The balance shall be transferred by IBCA and the particulars of the account shall be recorded in account closing register. The application for transfer shall be tagged with debit voucher. Accounts bearing debit balance/having any other liability shall not be transferred without Head Office permission. The receiving office will re-open the account with proper entries in Account opening register giving a fresh account number as well as keeping a note in the ledger folio that "the account has been transferred from……………………………branch". They shall also intimate the account holder in his/her new address, if any. Upon application cheque book in the account shall be issued and utmost care shall be exercised in conducting such account. CLOSING OF ACCOUNT
Bank-Customer relationship arises with the opening of ann account so generally the relationship terminates is the account is closed for any reason procedure for closure of account Whenever a customer approaches for closing an account, he/she may be requested to submit an application mentioning the reason of closure of accounts along with the unused leaves of cheque book and pass book (if any) issued to him. On receipt of the application, it should invariably be brought to the notice that the customer is not closing the account out of grievances which may possibly be redressed. If satisfied of the reason of closure. the application will be passed. After having approval from the Manager, the signature of the Account Holder shall be 'verified by the authorized Officer. The number of unused cheque leaves and the balance of the account shall be written on the application by the Ledger Keeper if there is any liability due to the bank. No account shall be closed before adjustment of liabilities due to the Bank. While closing the account the incidental charge shall be debited to the account and the same shall be credited to commission account.
Enquiry of Account
KYC-KYC means know your customerr it is a part of our account opening from printed by exim bank as per giidelines of bangladesh bank .It is complusory to be filled duly signed by all deposit and investment clients. This part of the account opening form contains the particulars.name,present address,parmanent address/business service address,relationship with the introducer,expected amount of number and number of transactions in cash and other modes in a month etc.Bankers could segregate the accounts riskwise through KYC as per guigelines of bangladesh bank.
Cheking the Signature of the Client
In single account the account holder signature.in join account the signature of both joint account holder like Operational instruction of the joint account
In case of partnership account the partners signature of the partnership firm like
Ist parters signature 2nd partners signature 3rd partners signature etc all signature of the clients must be checking by the authorized officer is also an important task of account opening section and also checking the introducer signature by the authorized officer.
4.5 CASH SECTION
Cash section is a very sensitive organ of the branch and handle with extra care. Operation of this section begins at the start of the banking hour. Cash officer begins his/her transaction with taking money from the vault, known as the opening cash balance. Vault is kept in a much-secured room. Keys to the room are kept under control of cash officer and branch in charge. The amount of opening cash balance is entered into a register. If there is any surplus in the cash then the excess amount should sent to the Bangladesh Bank or if there is any shortage in the cash then the shortage amount should be borrowed by the bank from Bangladesh Bank or from the Head Office. There are various system maintain by cash officer that is under Vault.
book maintained by this section:
vault register:It keeps acccont of cash balance in vault in the bank. Cash receipt register:cash receipt in whole of thde day is record here. cash payment register:cash payment are made in a day are entered here. Rough vault register:cash calculation for final entry in the vault register is done here.as any error and correction here is not acceptable. Cash balace book:balace here is compared with vault register if no difference is found indicate no error.
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 hour shall well as beyond banking hour shall not constitute valid banking transaction while receiving cash the cash officer must examine /adopt following points/procedure. Procedure of Cash Receipt:
Cash payment is made only against cheque.this is theunique function of the banking system which is known as payment on demand.It imakes payment only against its printed valid cheque. Procedure of cash payment
4.6 REMITTANCE SECTION
The major function of commercial Banks is mobilization of fund. Other than
4.6 REMITANCE SECTION
The major function of commercial Banks is mobilization of fund. Other than this, banks provide supplementary services to its clients. Clients need to remit money from one place to another for their business or other purposes. Banks fulfill this need of customers by means of remittance service.This service is an important part of countrys payment system.for these people,Especially business person can transfer funds from one place to another place very quickly.remittance is one of the main components of general banking. Remittance:
Remittance means transfer from one place to another place through official channel is called remittance.when the money transfer from one place to another place within the country is called inland remittance.when the money transfer from one country to another country is called foreign remittance. Advantage of Remittance:
Remittance helps the customer to fullfill their financial needs timely. Advantage of Remittance are
Function of Remittance Section:
Handling of all in coming and outgoing remitance is the major function for this section. Handling of incoming and outgoing TT
Pay order issue.
Demand draft Handiling.
Types of Remitence:
Generally there are two types of remittance -
local remittance again are two types, such as-
Inward remittance refers to the extend where by bank makes payment to the client against demand draft.they will make payment to the client by verifying the, test number and signature of the authorized officer. The bank makes payment immediately if the amount is less then Tk. 100000. If the amount exceeds Tk. 100000, it must wait to get the credit advice from the issuing bank. Modes of Inward Remittance:
Telegraphic transfer (TT).
Demand Draft (DD)
Payment Order (PO)
besides this inward remittance also includs remittence on account of total export purpose of bills etc. Purppose of Inward Remittance:
Recruiting agents commission.
Being made out abroad may be termed as local outward remittance that means remittance is local currency that goes out abroad is called outward remittance. Purpose of Outward Remittance:
Instruments of Remittance:
This is an instrument through which customers money is remittance to another persons/Firms/Organization in outstation. from a branch of one bank to an outstation branch of the same bank or to a branch of another bank.Genarally a demand draft is a negotiable instrument issued by a bank drawn on other bank with the instruction to pay a certain amount to beneficiary on demand. Process of Issuing local Draft:
Demand draft is an unconditional order of the bankers on branch to another to pay the same persons or order the ammount mentioned therein on demand. Followed procedures are followed while issuing local draft-
For getting a demand draft customer has to fill up an application from.the from contain date,name and adress of the applicant, signature of the applicant.cheque number(if cheque is given for issuing the DD) draft number,name of the payee, name of the branch on which the dd will be drawn and the amount of DD Etc.the dealing officer shall help the customer to filling up the from. Get the application from properly filled up and signed by the applicant. Comission is calculated for demand draft commision o.15%minimum TK.25 total amount due must be paid by the customer at the cash receiveing the cashier will issue a voucher for the dd issue. The draft is prepared and entered in the draft issue register. the draft number is then written on the application from and the amount is protect graphed on the face of the draft. The voucher along with the instrument and register and then sent to the the department-in-charge for checking and signature. All the documents are sent to the branch-in charge for second signature. After all signatururs are complete the draft is given to the customer and his/her signature must be taken on the counter foil. The details of the issue draft must be sent to drawee branch. Account Treatment:
Customer account cash...........................Dr
Exim bank general account......................Cr
Income Account commision.......................Cr
Issue of Duplicate Draft:
Duplicate Draft is not normally issue unless getting of satisfactory evidence is produced regarding loss of the draft if the local draft is reported to be loss or stolen.The issuing branch on receipt of a written request from the purchaser may issue a duplicate draft. before issuing duplicate local draft should observe its following- Application to be received duly signad by the purchaser/applicant regarding lost of DD. Signature of the purchaser to be varified with the DD application from and to be marked loss by red ink pen in the dd issue register and dd application. Conformation about non payment of the DD to be obtained from the drawee. Head office to be infrom through a letter alongwith photocopy of the application of purchaser about the loss DD and they will circulate the issue to all branches of Exim bank for precautionary measure against any frudulent attempt and to certain the iisuing branch. after receiving conformation letter regarding non payment from all branches a duplicate DD to be issued on a DD leaves duly noted in red ink.Duplicate issued in lieu of original DD no.......quoting test no.etc as origininal before issuing duplicate DD. Duplicate DD printed leaves no to be noted in original application from dd issue register and counter foil of original Dd receipt. Drawee branch to be infrom through a letter of honour the duplicate DD in lieu of orikginal one. Fee to be realized from the customer for issue duplicate DD. Cancellation of local Draft:
The following are followed while canceling a local draft
The purchaser should submit a written request for cancellation of the L.D. attaching therewith the original L.D. The signature of the purchaser will have to be verified from the original application form. Manager’s prior permission is to be obtained before refunding the amount of draft. Cancellation charge is to be recovered from the applicant and only the amount of the draft less cancellation charge should be recorded cancelation charge for local draft Tk 50. Cancelled L.D. should be issued on the Drawee branch.
Cancellation of L.D. should also be recorded in the L.D. Issue Register.
Payment of local draft:
When LD is presented for payment at the paying branch it details are to be carefully examined with reference to the points The drawee branch of demand draft likewise issuing branch maintain separate payable records.under separate opening for each issuing branch. On receipt of Credit Advice from the issuing branch the following entries are to be passed – Exim bank General Account..........Dr.
Local draft payble Account ...........Cr
Incase of payment there must be examine that whether the draft is drawn on the local office. Whether the draft is crossed or not paid in cash to the payee but to be paid to his account with a bank. Draft must have to be signed by authorized officers of the issuing branch. Their signatures are to be verified from the specimen signature book for being sure that draft that the draft is genuine. The verifier should put his initial. Endorsement on the back of the draft must be regular in case the draft is presented through clearing. The amount of the draft should not exceed the amount written in red ink at the top of the draft. The particulars of the draft i.e. the draft number, date, amount and the name of the payee should be verified from the L.D. Payable Register. In case of payment, the draft should be cancelled with red ink. The date of payment should be recorded in the L.D. Payable Register.
Stop Payment of local Draft:
The payee or purchaser of the draft cannot give stop payment instruction to the Drawee branch. If the paying branch receives a request from the purchaser of the draft for stopping payment of the draft, it will ask the purchaser to approach the issuing branch about the purpose. The paying branch should however exercise necessary precaution in this regard. Only the issuing branch can issue instruction for stop payment of the draft under.
This is a mode of transfer / remittance of customer’s money from a branch of one bank to another branch of the sane bank or to a branch of another bank (with prior arrangement between that bank with the TT issuing branch) through telephonic message.
Procedure of Issuing Telegraphic Transfer:
A Telegraphic Transfer is a method of remittance, which is effected by the banker through a coded telegram attested by secret check signet, on receipt of which, the paying office pay the amount to the payee by crediting his account. procedure of issuing telegraphic transfer are
Commission to calculated o.15% minimum Tk 25.
Total amount due must be paid by the customer at the cash receive counter, after receiving the cashier. The cost memo must be prepared by the TT issuing office Which shall contain the amount of TT name of beneficiary,comiission amount the memo must be duly signed by the officer and given to the customer. Then the TT should be tested correctly, by authorized officer only. Then pass the TT message through Telex, or in case of urgency may be conveyed through telephone. Prepare and advice note and should be sent through mail on the same day Account treatment:
Voucher shall be passed as under
Customer account cash.............................Dr
Exim bank general account........................Cr
Payment of Telegraphic Transfer:
On receipt of T.T. the Drawee branch passes payment instructions and pass the following voucher Exim bank general account...................Dr
Telegraphic Transfer payable account.......Cr
The accurancy of TT massage shall be authenticated by imputing the test number. Telegraphic Transfer payable............Dr
In case the beneficiary who does not maintain account with the drawee branch in such case- Telegraphic Transfer payable...........Cr
TT payable account shall be balance fortnightyly.
Disbursement of T. T received over phone before confirmation is not permissible as a general rule.TT messages including massages received over phone must be kept in record duly marked with the debit responding voucher. TT must be Entry in Tt payable register and be kept in a sperate file.Incase any of the message are not confirmed promptyly that must be a subject of enquiry by the paying branch.
A pay order is a written under, issued by a branch of bank, to pay a certain sum of money to a specific person or a bank. It may be said as to be a banker’s cheque as it is issued by a bank and payable by itself. Procedure of Issuing Pay Order:
For issuing a pay order the clients is to submit The application form must be filled up properly. Comission is to be calculate on the following rate
1. Up to 10000 TK 25.
2. From 10001 TK to 1ooooo Tk comission TK60.
3. above tk 100001 commision tk 120.
The amount due must be paid by the customer at the cash receive counter. The applicant may also issue Cheque drawn on the branch being the amount of the order requested for including commision/charges. The issuing official on receipt on credit voucher for issuing pay order duly signed by the authorized officer. in case of pay order the Instrument shall be delivered to the purchaser under receipt along with the cost memo . While issuing pay order shall be recorded in the pay order issued register with serial control number. The authorized officers must check the document and put signature. After all steps are complete the pay order draft is given to the customer and pass his/her signature must be taken on the counter foil. pass the following voucher
Customer account cash..................Dr
Pay order account........................Cr
Payment pay Order:
When a Pay Order is presented for payment, the following things must be checked scrupulously: Pay Order is issued by your branch.
Amount word and figure agree.
Pay Order Register shall be maintained in self balancing manner and shall be balanced monthly by Jotting down the outstanding Pay Order. It may be noted that Bank's Pay Order is a non-negotiable instrument and shall be paid only to the (i) payee on identification (ii) the payee's banker who must certify that the amount has been placed to the payee's Accounts. Pay order is send to the Authorized officer for cancellation.. Pass the following voucher and make payment
Pay order payable ..............Dr.
Customer account ...............Cr.
Cancellation of pay Order:
The following procedure should be followed for the cancellation of the Pay order:
The client should submit a written request for canceling the pay order attaching therewith the original pay order. The signature of the purchaser will have to be verified from the original application form. Cancellation charge is to be recovered from the applicant and only the amount of the pay order less cancellation charge should be refunded.The cancellation charge for pay order tk 50 Then the officer should write “cancelled” on the pay order Cancellation of the pay order should also be recorded in the register.
4.7 Clearing AND Collection Section
According to the Article 37(2) of Bangladesh Bank Order, 1972, the banks, which are the member of the clearing house, are called as Scheduled Banks. The scheduled banks clear the cheque drawn upon one another through the clearing house. This is an arrangement by the central bank where every day the representative of the member banks gathers to clear the cheque. Banks for credit of the proceeds to the customers’ accounts accept cheque and other similar instruments. The bank receives many such instruments during the day from account holders. The place where the banks meet and settle their dues is called the Clearing house. Clearing and bills saction is an important section of general banking. This is the section through which branch has to clear its inter branch and inter bank transactions. Types of Clearing:
When a particular branch receives instruments, which on them and sent by other member bank for collection are treated as inward clearing. Outward Clearing:
Outward clearing means when a particular branch receives instruments drawn on the other bank within the clearing zone and those instruments for collection through the clearing arrangement is considered as outward clearing for that particular branch.
For inward instrument:
Customer account ---------------------Debit
EXIM bank General A/c --------------Credit
In case of return:
Exim bank General A/C ------------------------Debit
Customers A/C -----------------------------Credit
For outward instrument:
Exim bank General A/C -------------------------Debit
Customers A/C -------------------------------Credit.
In case of return:
Customer A/C --------------------------------Debit
Exim bank General A/C---------------------------Credit.
Checks, drafts etc. are drown on bank located outside clearing house are sent for collection. CDA Avenue Branch collects its client’s above-mentioned instruments from other branches of EXIM bank . In case of outward bills for collection customers account is credited after finishing the collection processor. And in case of inward bills customers account is debited for this purpose. So it place dual role as follows: 1. Collecting Banker
2. Paying Banker.
Activities of the Section:
Preparing of Outward and Inward Collection Item.
Batch posting and checking as and when required.
COLLECTION IS DONE WHEN
The Paying Bank within Chittagong City:
The cheque clearing section of EXIM Bank Ltd., Cda Avenue Branch sends Inter Branch Debit Advice (IBDA) to the head office on the receiving day of the instruments. The main branch takes those instruments to the clearing house on the following day. If the instruments are dishonored, Head Office of EXIM Bank Ltd. sends IBDA to the EXIM Bank Ltd., cda avenue Branch. The Paying Bank of Their Own Branch:
The cheque clearing section of EXIM Bank Ltd., cda Branch sends outward bills for collection (OBC) to the concerned paying branch to get Inter Branch Credit Advice (IBCA) from the paying branch. If the paying branch dishonors the instrument, the paying branch returns it to the EXIM Bank Ltd., Cda Avenue Branch describing why the instrument is dishonored. In case of returning an instrument the respective officer usually looks for following reasons. Insufficient fund.
Not arranged for
Refer to drawer.
Effects not cleared may be presented again.
Amount in words and figures differs.
Drawer’s signature differs, etc.
Types of Cheque Collected By Clearing Department:
1. Transfer Cheque
Transfer Cheque means which are collected and paid by the same branch of EXIM Bank Ltd.
2. Local Bills for Collection Cheque (LBC)
Local bills collection cheques are those cheques, which are collected and paid by two different branches of a bank situated in the same city. 3. Outward Bills Collection Cheque (OBC):
OBC cheque means which are collected and paid by two different branches same or different bank situated in the outstation. Receiving Cheque for Collection:
In EXIM Bank, Cheques of its customers are received for collection from other banks. In case of receiving cheque, following points should be checked very carefully ---- The cheque should not carry a date order than the receiving date for more than 6 months. In that case it will be a ‘stale cheque’ and it will not be allowed For collection. Again, the date of the check should not be more than 1 day forwards than the receiving date. The amount in figures and words in both sides of the pay-in-slip should be same and it should also be same with the amount mentioned in figures and words in the cheque. The name mentioned in the cheque should be same on both sides of the pay-in-slip and should be the same with the same name mentioned in the cheque The cheque should be crossed.
Cheques/Instruments received for collection from Branches/other banks are known as Inward cheques for collection. Entry in IBC register and sent to Clearing/House clearing/Transfer Department and the same must not be held for unreasonable time. Cheque are Honored collecting branches shall be advised through IBCA incorporating therein cheque number OBC No. our OBC No. name of payee and amounts. No. charge shall be recovered from cheques received from own branches. Liability voucher in respect of cheques received from other banks shall be passed only & payment there to shall be made through D.D. on realization of postages etc. as well as on reversing the liability. While making payment entries in IBC Register shall also be marked off. COLLECTION(OUTWARD):
Customers deposit cheque, drafts etc. for collection, attaching their deposit slip. Instruments within the range of clearing are collected through local clearinghouse. But the other, which is outside the clearing range, is collected through OBC for example customer of EXIM Bank, CDA Avenue Branch, is depositing a cheque of Sonali Bank, Danmondi Branch. As a collecting bank EXIM CDA Avenue Branch sends IBCA along with cheque to EXIM Main Branch. EXIM Bank, Main Branch will collect it by EXIM Bank, Danmondi Branch, the agent. They will forward the bill to that particular (Danmondi) branch. COMMISION FOR COLLECTION
1. Up to Tk. 25000/- 0.20%, Minimum Tk. 25/-
2. Tk. 25001/- to 1.00/- Lac@ 0.20% Minimum Tk. 75/-
3. From Tk. 100001/- to 500000/- @ 0.10% Minimum Tk. 200/- 4. Over Tk. 500000/- 0.05% , Minimum Tk. 600/-, Maximum Tk. 3000/-
EXIM bank General A/C --------------------------------------- Credit As collecting Bank:
Customers A/C-------------------------------------------Debit As Paying Bank
EXIM bank General A/C ---------------------------Credit.
4.8 ACCOUNT SECTION
In banking business transactions are done every day and these transactions are to be recorded properly and systematically as the banks deal with the depositors’ money. Any deviation in proper recording may hamper public confidence and the bank has to suffer a lot. Improper recording of transactions will lead to the mismatch in the debit side and credit side. To avoid these mishaps, the bank provides a separate department whose function is to check the mistakes in passing vouchers or wrong entries or fraud or forgery. This department is called Accounts Department. Besides these, the branch has to prepare some internal statements as well as some statutory statements, which are to be submitted to the Central Bank and the Head Office. Function of Accounting Section:
We can divide the functions of accounting department into two categories. One is day-to-day task and another is periodical task. Day to Day Function:
Here day-to-day function refers to the everyday tasks. Accounting Deperment of EXIM bank performs the following day to day functions: Recording of transaction in the cashbook, general and subsidiary ledger. Preparing the daily position of deposit and cash.
Making the payment of the expense of the branch.
Recordings of inter branch fund transfer.
Checking whether all the vouchers are correctly passed.
Recording the voucher in the voucher register.
Packing and maintains the total debit and total credit vouchers. Branch to branch fund remittance and supporting accounting treatment. Prepare statements for customer.
Monthly statement of deposits, loans and advances, profit and loss etc. Quarterly statement of deposits, loans and advances, profit and loss etc. Yearly statement of deposits, loans and advances, profit and loss etc. Yearly statement of classified Loans and Advances.
Statement of Affairs.
Yearly Budget of the Branch.
4.9 DISPATCH SECTION
Dispatch is very important for a bank there are two types of register. Inward despatch.
All types of incoming documents/papers, letters, circulars etc. must make entry in the inward register properly and deliver to concerned department and get their initials in the register Outward Dispatch:
All types of outgoing documents/papers must make entry in the outward register properly and deliver must be ensured by peon book/post or by courier service. In case of courier service & post office, bill/acknowledgement must be preserved. To meet the expenses against above purpose, cash would be collected from Suspense Account and the entry must be adjusted by passing expenditure voucher properly keeping cash position in order.
4.10 ON LINE BRANCH BANKING SECTION
The Bank has set up a Network across the country to provide Online Branch Banking facility to its valued clients. Under the Scheme, clients of any branch shall be able to do banking transaction at other branches of the bank. Under this system a client will to be able to do following type of transactions: Cash withdrawal from his/her account at any branch of the Bank irrespective of location. Cash deposit in his/her account at any branch of the Bank irrespective of location. Cash deposit in other's account at any branch of the Bank irrespective of location. Transfer of money from his/her account with any branch of the Bank. Requirement of Prime Line Service:
The Clients who has account in EXIM bank or who will open account in Exim bank and would be interested to maintain substantial deposits in MSD, Al-Wadiah Current or MSTD accounts, will be eligible to get Prime Line Service. 4.11 ANTI-MONEY LOUNDERING SECTION
money Loundering is now one of the greatest challenges that the governments, bank and financial institutions face in the globalize financial system. As per Bangladesh Bank guidelines EXIM Bank formed an independent Anti-Money Laundering Division headed by Chief Anti-Money Laundering Compliance Officer (CAMLCO). AMLD provides instructions and issue circulars time to time to the branches for prevention of money laundering. It also conducts training/workshop through our training institute in consultation with Human Resources Division to aware our entire employee’s about AML issues. AMLD always tries to comply with the rules and regulations of Bangladesh Bank as well as regulatory authority. Defination of money laundering:
“Money Laundering means –
i)Properties acquired or earned directly or indirectly through illegal means;
ii)Illegal transfer, conversion, concealment of location or assistance in the above act of the properties acquired or earned directly or indirectly through legal or illegal In lay terms Money Laundering is most often described as the “turning of dirty or black money into clean or white money”. If undertaken successfully, money laundering allows criminals to legitimize “dirty” money by mingling it with “clean” money, ultimately providing a legitimate cover for the source of their income. Generally, the act of conversion and concealment is considered crucial to the laundering process. Why Money Laundering is done?
Criminals engage in money laundering for three main reasons: - First, money represents the lifeblood of the organization that engages in criminal conduct for financial gain because it covers operating expenses, replenishes inventories, purchases the services of corrupt officials to escape detection and further the interests of the illegal enterprise, and pays for an extravagant lifestyle. To spend money in these ways, criminals must make the money they derived illegally appear legitimate. second, a trial of money from an offense to criminal can become incriminating evidence criminals must obscure or hide the source of wealth Third, the proceeds from crime often become the target of investigation and seizure. To shield ill-gotten gains from suspicion and protect them from seizure, criminals must conceal their existence or, alternatively, make them look legitimate. Objective of Money Laundering:
The objective of anti money laundering act-2009 are
To prevent people from earn /acquire wealth/property through illegal means. To prevent illegal transfer of money to foreign countries or from countries To prevent transfer, placement layering integration of property/Wealth which has been acquired direct or indirectly through legal or illegal ways means and to prevent to assist to do avobe job/work. To prevent illegal business of arms.
to prevent fraud forgery.
To prevent Hundi business from the society.
To establish a corruotion free society.
To prevent illegal business of manpower and immigration.
To do justice to the people of the country.
To check transfer of foreign exchange through fales import document. Branch will perform the Following Task to Comply the Money Laundering Prevention Act 2009 a)All officers/executives of the branch will follow meticulously every clause of the Act & circular issued by the Central Compliance Unit. b)Branch Compliance Unit which has been selected by the Central Compliance-Unit will implement the task relating the Act in priority basis. c)Branch Compliance Unit will supply various statements, Compliance, Papers & Document as and when required to the Central Compliance Unit. d)Each branch will preserve information of customer both new/old regarding K.Y.C & Account Profile. And will operate the accounts after having full information of each client of the branch. e)Branch Compliance Unit will arrange a monthly meeting to discuss the matter and suspicious transaction found in any account. f)Circular No. EXIM/GBD/74 dt.25.07.02 & EXIM/GBD/95 dt.10.10.02 issued by Head office on the basis of Bangladesh Bank circular no. MA/LA No.02 dt.17.07.02 mentioning the following:- (1)Indicative list for establishing the introduction i.e. necessary documents those are mentioned in the circular to be obtained in case of opening of personal A/C, corporate or business A/C, partnership & limited company's A/C Etc (2)To detect the-suspicious-account-branch-compliance unit will keep keen watching on the following: (i)Abnormal large transaction which does not match with the income of any person/companies. (ii)Request for outward remittance in various destination where relation with the customers is not clear. (iii) Various deposit in small amount but cumulative deposit is so high which is not matched with the income of customers. (iv) Customers is unwilling to supply the information
(v)Avoidance to keep contact with the branch by the representative of the Co.
Analysis of CDA Avenue branch position
Analysis Al-Wadia current Accounts in Exim bank LTD,CDA Avenue branch
During the last one year the Al Wadiah current Account stood at 12 in the first quarter 14 during the second quarter. In the shown graph1st Qtr includes the month of 1 April 2011 to30 June 2011. And the 2nd qtr consists the month from 1july2011 to 31 September 2011. From 3rd to 4th qtr the number of al Wadiah accounts. 13 From 1 0ctober to 31 december and 15 from 1 january to 31 march 2012. Analysis of Mudaraba Savings Accounts in EXIM bank LTD CDA Avenue Branch
During the last one year the Mudaraba savings Account stood at 81 in the first quarter 58 during the second quarter. In the shown graph1st Qtr includes the month of 1 April 2011 to 30 June 2011. And the 2nd qtr consists the month from 1july 2011 to 31 september 2011. From 3rd to 4th qtr the number of savings account. 73 From 1 0ctober to 31 december and 85 from 1 january to 31 march 2012. Analysis of MSND Accounts in Exim bank LTd, CDA Avenue Branch -
the number of MSNDaccounts in this branch is only 14 from april 2011 to march 2012. Analysis of Scheme Deposit in Exim bank LTD, CDA Avenue Branch
In this area most of them are service holder. That’s why they have a tendency to save a fixed amount monthly for future security. Because of this reason and also due to good promotional activities of Exim bank LTD of scheme deposit accounts is growing rapidly. Till today there is a total number of 223 scheme deposit in this branch from 1 April 2011 to 31 March 2012
Strength, Weekness, opportunity and threats of Exim bank CDA Avenue SWOT Analysis
in SWOT analysis two factors act as prime movers
Internal factors which are prevailing inside the concern which include strength and weeknees.on the other hand Another factors is external factors which act as opportunities and threats. Strength:
It has well reputation in the market.
Not engaged in unfair business.
Efficient Management practice in the bank.
Cooperation with each other.
Good banker customer relationship.
Banks have many attractive deposit.
Located in important Commercial area.
Availability of all types of modern banking facilities.
Depends on Head office for deceision making regarding application of rate of profit against deposit. Opening of current account is comparatively low.
Lack of ATM both in major points.
Huge business opportunity in the area.
Private banks become more reliable than local public banks.
Very few branches of commercial banks are allowed authorise ledearship license in the area.As an AD branch it catches huge business in the area. By doing social wellfare activities it can create a good impact on public mind. Can launch some new Deposit scheme to attract potential customer. Threats:
Frequent change in goverment policy hamper the operation.
There are many competitors in area.
Overall economic condition of the country.
Banking tecnology are changing day by day.
FINDINGS RECOMMENDATION AND CONCLUSION
6.1 Major Findings
EXIM Bank is a third generation bank in Bangladesh. So it provides that it is going very well. But according to my observation I found some major Findings of bank which are given below- Customer satisfaction level of Exim Bank is satisfactory.
EXIM Bank Ltd. emphasis on personal relationship with client and they maintain it properly. Exim Bank provides preferential service to all types of customer. Bank done all the activities under sariah rules and regulations. Bank focus on anti money laundering issues strictly.
From my observation nomineeses profile not fill-up properly in some cases as a result irregularities remain in account opening section. Photograph of account holders and nominee not obtained in few cases for these reason account opening form remain pending. The cost of deposit is high. high cost deposit should be discouraged on long term basis. Due to high cost deposit the branch cannot gain profit as they expected. Official space of bank is not large and interior decoration is not good. Dependence on large corporate deposit.
Lack of opening Al-Wadiah account and Mudaraba short Term account. There is no ATM booth in Chittagong zone.
Lack of promotional activity is another problem that is responsible for the decline of the customer’s expectation of EXIM. Lack of proper customer network infrastructure in bank.
I have to make some recommendations based on the findings that I have got from my research. The recommendation will help the bank to take necessary steps in order to increase the satisfaction level of customers in general banking sector of EXIM bank. The following are some recommendations for the Exim Bank. nomineeses profile have to fill-up properly.as a result lot of irregularities remove in account opening section. Photograph of account holders and nominees collect from account holders when account holder want to open an account.Then account opening form formalities complete in right time . Bank try to reduce The cost of deposit . because high cost deposit discouraged on long term basis.if bank reduce the deposit cost customer encouraged on long term. Bank should increase their office space and take more care in interior decoration. Bank depend on retail deposit.Retail deposit is better than corporate deposit bacause corporate deposit withdraw large amount at any time.then bank face lequidity crises. Bank have to increase Al-Wadiah account and Mudaraba short Term account. Exim bank should make better online service. It is need to develop better network for online banking.so Exim bank set up ATM booth in Chittagong zone. Bank should make their advertisement on newspaper & T.V. and by advertising every facility of the bank can offer at the door of the customer. Bank should introduce ‘Marketing Department’for promotion. To ensure better customer service network infrastructure of the bank should be developed.
During my three months internship program at Exim Bank CDA Avenue Branch, Chittagong, almost all the desks have been observed more or less. This internship program, in fact, has been arranged for gaining knowledge of practical banking and to compare this practical knowledge with theoretical knowledge. Exim Bank Ltd is one of the Islamic Financial Institutions of Bangladesh. In order to maintain his momentum, Exim Bank has expand his activities By developing innovative products in line with modern market scenario, introduce marketable instruments by utilizing and listing finds either already managed and run by him or establishing more funds based on actual trisections with the backing of cash flow generating. Islamic Banks like Exim Bank are in their infancy as compared to other Islamic bank . Islamic Institutions have reached the present status after evolution based on maintain shariah principles, innovation new product, Focus on Customer Needs. For this purpose Exim Bank spent substantial sums on research and development. Banking movement emerged in a very competitive environment. Their survival hinges very much on maintaining depositor’s confidence after effective support of financial institutions require that depositor’s funds are rewarded with good returns. Governmental Monetary Authorities and Central Banks played a vital role in guiding, supporting and providing resources to these banks. Exim Bank also needs the support of authorities as their movements have yet develop certain essential infrastructure toq function, such as Proper interest free System. However Exim bank has a good set of institutional owners, which gives it a better board of directors and Shariah Council For Maintain shariah Principles than many other Islamic banks.Exim Bank is the Bank which has been successful in developing a professional job environment where each officer has substantial level of authority and responsibility.
Article and Documents:
Annual Report of Exim Bank Ltd 2010
Exim Bank Limited Profile
Circulars of Exim Bank.
GENERAL Banking Manual of Exim Bank.
Branch Report of CDA Avenue.
Islamic Banking (islamic economics Research Bureau).
Bank Management (Peter S.Rose)