Opening, Lodgment and Retirement Procedures and Performance of Prime Bank Limited

Topics: Bank, Letter of credit, Cheque Pages: 51 (14699 words) Published: August 26, 2010
An Internship Report On
Letter Of Credit Opening, Lodgment And Retirement Procedures And Performance LimitedOf Prime Bank Limited- An Analysis

A Report Submitted In Partial Fulfillment Of The Requirements For The Degree Of Bachelor Of Business Administration

Supervised By
Md. Mehadi Masud Lecturer Faculty of Business Studies Department of Accounting & Information Systems University of Dhaka

Prepared By
Mohsina Akter Roll-11124 Section-B, Batch-11 Faculty of Business Studies Department of Accounting& Information Systems University of Dhaka

November 10, 2009

November 10, 2009 Md. Mehadi Masud Lecturer Department of Accounting & Information System, University of Dhaka.

Subject: Submission of Internship Report.

Dear Sir,

With due respect, me, Mohsina Akter, would like to inform you that, it is a great pleasure for me to submit the report on “LC Opening, Lodgment, Retirement Procedures and Performance of Prime Bank Ltd: An Analysis”, as a requirement for BBA program.

I have tried my best to submit a good report with as much information as could gather during the short time span allotted for preparing the report. There might be some error through oversight in the report. I sincerely regret for such unintentional errors. I would be grateful to you if you kindly consider my unintentional mistakes.

I acknowledge with thanks the wholehearted support & kind guidance received from you. So I hope that you would be kind enough to accept my Internship Report & oblige thereby.

Thank you again for your heartiest co‐operation.

Yours sincerely,

Mohsina Akter Roll-11124 Section-B, Batch-11 Dept. of Accounting and Information System University of Dhaka

I would like to acknowledge with considerable appreciation those who have contributed to complete my internship program and final internship report. First of all I would like to convey my salutation to Almighty Allah for enabling me to complete the report with sound health. My special gratitude and thanks goes to my respected supervisor who motivated me to choose this topic. He helped me in every step of my internship & report writing by giving

proper guidance, advice & inspiration. Thanks to all other respectful & honorable teachers of the Department of Accounting & Information Systems, University of Dhaka.

I want to express my special thanks to all employees of SBC Tower Branch, Prime Bank Ltd where I was joined as an internee. Here again I have to mention some persons who received me as a member of their banking family and provided me continuous guidance, valuable knowledge and suggestions during my Internship program. I would like to extend my gratitude Md. Nazrul Islam (First Assistant Vice President), Syeda Rezwana Begum ( Principal Officer), Arshed Mahmud (Management Trainee) & all other officials of SBC Tower Branch. I did not learn only professional insights, but I learned how to work in pressure, how to have patience in hurdles, how to behave with the seniors and how to help the juniors.

Last but not the least, I express my overall gratitude to my department that provided me the chance to be familiar with the real organizational environment and practically experiencing the procedure practiced at PBL in import transaction.

The report is the outcome of the internship program under the Bachelor of Business Administration Course (BBA) of the Department of Accounting and Information System (AIS) of University of Dhaka organized at Prime Bank Ltd, SBC Tower Branch, Dilkusha C/A, Dhaka1000. During the period of three (3) months objective of the internship program was to familiarize the student with the practical implementation of the knowledge provides the theoretical aspects of the practical life.

It is my pleasure to submit my internship report titled “LC Opening, Lodgment, Retirement Procedures and Performance of Prime Bank Ltd: An Analysis”. While preparing this report, I have tried to gather as much...

Bibliography: Publications 1. Bangladesh Bank Published Bank Statistics. 2. Guidelines for Foreign Exchange Transactions Bangladesh Bank. 3. Lodgment and Retirement of import bills under documentary letter of Credit, Prime Bank Training Institution.. Head Office Dhaka. 4. Shah Md. Ahsan Habib & Md. Mohiuddin Siddique, Reading Materials on International Trade Payment and Foreign Exchange, March,2005. 5. Statements of affairs (Daily) Prime Bank Limited, SBC Tower Branch. 6. Annual Report of PBL. 7. The Bangladesh Bank (Nationalization)) Order, 1972. 8. UCPDC-500, ICC publication, 1993.
Internet 1. 2. 3. 4.
1. Schedule of Charges on Foreign Exchange Related Transactions: Particulars Document Handling Charge SWIFT Charges Commission TK.1500.00 TK. 3000.00 Minimum TK. 500.00 or 0.5% of L/C value whichever is higher Advising of bank L/Cs to the local beneficiary Advising charge- Local L/Cs Amendment Advising Transfer of L/Cs Negotiation commission for export bills in foreign currency Negotiation commission for export bills in local currency Adding confirmation to export L/Cs by us. Courier Charge (Except India) Courier (India) PRC Certificate Exp issuing charge LCAF issuing charge TK. 500.00 0.25% of L/C value TK.1500.00 TK. 300.00 TK. 500.00 TK. 200.00 TK. 100.00 TK. 1000.00 TK. 1000.00 Nil 0.2% on document value TK. 1000.00 Charges
2. Indent or Pro forma Invoice Indent or Pro forma Invoice is the sale contract between seller and buyer in import- export business. There is slight difference between indent and Pro forma invoice. The sales contract, which is direct correspondence between importer and exporter, is called Pro forma invoice. There is no intermediary between them. On the other hand, there may be an agent of exporter in
importer’s country. In this regard, if the sale contract is occurred between the agent of exporter and importer then it is called indent.
3. Terms Relating to the Date in the Letter of Credit When a credit is valid "for one month", ' 'for six month", etc., the period during which the credit is to run will be deemed to start on the date the credit is issued, unless otherwise stipulated (Article 42c of the UCP).
In addition to expiry date, all credit calling for transport documents should be stipulate the time period in which the transport and other documents must be presented to the bank. If no such period is stipulated, bank will refuse documents presented to them later than 21 days after the date of shipment. In any event documents must be presented not later than the expiry date of the credit (Article 43a of the UCP). If the expiry date and/or the last date for the presentation of documents fall on a non -banking day, banks may accept documents presented on the day bank is reopened (Article 44a UCP).
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Procedure of Credit Sanction, Approval and Analysis at Prime Bank Limited Bangladesh Essay
  • Citi Bank Performance Appraisal Essay
  • Financial Performance of National Bank Limited Essay
  • Performance Management at Nepal Bank Limited Essay
  • Foreign Exchange Operation of Mutual Trust Bank Limited Essay
  • Bank Performance Essay
  • Performance of Bank Essay
  • Financial Performance Analysis of Sonali Bank Limited Essay

Become a StudyMode Member

Sign Up - It's Free