Welcome to the presentation www Assignment Point com

Welcome to the presentation www. Assignment. Point. com

Internship Report On AB Bank www. Assignment. Point. com

Introduction �AB Bank is the First private bank in Bangladesh. Government permitted private banks to enter in to banking because of sustained poor performance by the banks of nationalized sector. AB Bank limited (ABBL) is sailed as the leading private commercial bank in the baking suture from its journey on April 12, 1982 with opening of its first branch at Karwan Bazar in Dhaka. www. Assignment. Point. com

Organization overview �Name of the bank : AB Bank Of Bangladesh Limited journey on April 12, 1982 www. Assignment. Point. com

Objectives of the study �Primary Objective �The main objective is to know the significant relation that exists between import-export and branch performance in this sector. On the other hand the significant relation that exists between import-export and business world. �Secondary objective �To know and focus the whole import-export mechanisms. �To know and focus the remittances activates. �To know and focus the rules and regulation of import-export mechanisms. �Identify some problems and also make some recommendations. �To observe the working environment in commercial banks. �To apply theoretical knowledge in the practical field. www. Assignment. Point. com

Methodology of the study �Methodology includes�Direct observation �Face-to-face discussion with employees of different departments �Study of files, circulars and practical work. �Annual Report of 2009 etc. www. Assignment. Point. com

� Source of Data � This report is based on both primary & secondary sources of information that has been collected from the various sources like different publications, library sources, books, articles, etc. For collecting primary data, I ask the respective officer(s). Others are like � Exposure on different desk of the bank; � File study. � Getting information from face to face dealing with the client � Personal interview with branch officials or executives � The secondary sources are � Annual Report of AB Bank Bangladesh Ltd, � Web site of ABBL � Periodicals published by the Bangladesh Bank; � Different publications regarding banking functions, foreign exchange operation, and export-import policies. www. Assignment. Point. com

Scope & delimitation �Scope of the report �The scope of the organizational part covers the organizational structure, background, vision, mission, objective, functions and rules, restrictions, procedures of foreign exchange transactions of the organization. www. Assignment. Point. com

�Limitation of the study �AB Bank Ltd. is a large financial institution; therefore it is not possible to find out the true pictures within a short period. To prepare the report I faced some problems & limitations. Those limitations are unavoidable for me. That may causes reduction in the quality of my report. Some of the major problems are pointed below�Difficulties to communication and collect data. �Difficulties to gather data in a specific way. �In many cases, up to date information is not published. �Organization confidentiality. �Time constraints are one of the major problems/limitations to know the information. www. Assignment. Point. com

Foreign Trade & Foreign Exchange Transactions www. Assignment. Point. com

�Foreign Exchange �Foreign Trade �Foreign Exchange and Foreign Trade �Foreign Exchange Transactions www. Assignment. Point. com

Foreign Exchange Import Section Export Section Remittance Section www. Assignment. Point. com

Steps Involved in Import procedures: � Procurement of IRC from the concerned authority � Signing purchase contract with the seller � Requesting the concerned bank (importer’s bank) to open an L/C on behalf of the importer favouring the exporter/seller/beneficiary. � The issuing benk opens/issues the L/C in accordance with the instructions/request of the importer & request another bank(advising bank) located in sellers /exporter’s country to advice the L/C to the beneficiary. The issuing may also request the advising bank to confirm the credit, if necessary. � The advising bank advises the seller that the L/C has been issued. � As soon as the exporter /seller receives the L/C & is satisfied that he can meet L/C terms & conditions, he is in a position to make shipment of the goods. � After making shipment of the goods in favour of the importer the exporter’s submit the documents to the negotiating bank for negotiation. www. Assignment. Point. com

A Simple flowchart of Export Business Mechanism Exporter- Consult Export Policy order get ER Contract Buyer-Settle sales terms Issue Pro-forma Invoice - to exporter abroad Export L/C-Check carefully by exporter & exporter's Bank EXP Passing – Issued by AD signed by exporter and AD Shipment - Submit document of goods or the item exported Documents Submit document by the exporter to their Bank Negotiation - Payment made by the exporter bank to the exporter Or Collection - I documents are discrepant/ unaccepted Reimbursement - Getting payment by the negotiating Bank www. Assignment. Point. com

Remittance �Inward Remittance �Outward Remittance www. Assignment. Point. com

Analysis MAJOR IMPORT BY AB BANK(FIG. IN CRORE) www. Assignment. Point. com

Import from 2005 to 2009 100% 50% 0% Serie s 3 Cate gory 1 4 Serie s 2 www. Assignment. Point. com

MAJOR IMPORT BY AB BANK(FIG. IN CRORE) Series 3 Series 2 Ca te go ry Ca 1 te go ry 4 20 10 0 www. Assignment. Point. com

Monthly Import from 2008 to 2010 Se ri Se es ri Se 3 es ri 2 es 1 C a C t a C e t a C g e t a o g e t r o g e y r o g y r o 1 y r 2 y 3 4 20 0 www. Assignment. Point. com

Export from 2005 to 2009 20 Cat ego ry 1 ry 4 0 Ser ies 3 Ser ies 2 Ser ies 1 www. Assignment. Point. com

MAJOR EXPORT BY AB BANK(FIG. IN CRORE) Serie s 3 C at C eg at or eg y 1 or y 4 20 10 0 Serie s 2 Serie s 1 www. Assignment. Point. com

Monthly Export from 2008 to 2010 20 Cate gory 41 0 Se ri es 3 Se ri es 2 www. Assignment. Point. com Se ri es

Remittance 20 S e 0 CCCC r. S aaaa ie tttt er. S eeee sie gggg 3 er oooo si rrrr 2 e yyyy s 4321 1 www. Assignment. Point. com

INWARD REMITTENCE, RECEIVED DURING THE MONTHLY BASIS FROM THE YEAR 2008 TO 2010 US $ IN MILLION 20 S 10 e 0 r CCCC S i aaaa e tttt rs eeee S i 3 gggg e oooo rs rrrr i 2 yyyy e 4321 s www. Assignment. Point. com 1

Comparison of Three Wings 0 20 CCCC at at egeg or or y 1 y y y 2 3 4 Seri es 3 Seri es 2 es 1 www. Assignment. Point. com

During the last five years, the foreign trade financing of the Bank has witnessed steady growth. The AB Bank Ltd, under Bangladesh Bank’s rules & regulation, try to be more flexible to the clients to increase the profit from the Foreign Exchange year by year. Thus ABBL committed to the clients by their services and it has been proved by their last five years of Foreign Trade profile. www. Assignment. Point. com

Problems � Business in conventional banking system foreign currency is considered as goods not as currency and its value fluctuates continuously, which is too much difficult to understand. � Banks deal with documents not with goods. So, today’s banking system is based on documents. � Because all other sections of ABBL, Foreign exchange section is based on most part of computerized data and due to this reason it has to face some problems. � Import has always been greater than export for every year. The increase in import from 2005 to 2009 for each bank has been approximately BDT 30000 million for every concerned bank. Whereas the rise in export has been approximately BDT 25000 million. This shows our dependency on foreign goods hence foreign trade. This is also the cause of negative balance of trade of Bangladesh. � Rising demand foreign currency creates rising trend in their price or value hence making our local currency weaker than before. � Foreign remittance inward has also increased over the years for each bank but it is much lower than increase in import. Thus this low inflow of foreign currency into the country cannot cover up the balance of payment deficit. www. Assignment. Point. com

�Backward linkage is a problem foreign exchange, which is re related to back-to-back L/C. Backward linkage refers to those small industries that support the large industry. For example: for the production of a shirt, cloth, button and other accessories are required. Any problem of these small industries has effect on the large industry. �To avoid this situation, the exporter is needed to have stock lot for which he will have to engage much money. Moreover it will incur inventory cost. �Very few commodities are occupying major share of our export such as RMG, jute, frozen food etc. It should be spread out. �The periphery of our export market is very narrow. www. Assignment. Point. com

Recommendations � Usage of latest technology such as swift, ATM computer should be increased. As a result customer dealing will be increased. And transaction will be made at a few minutes. � Employee should be skilled in operating technology. If all the persons will be skilled, no person depends on others specific person for operating to perform the transactions. � Function should be divided. If the function is divided according to its criteria; every person will be efficient in his particular area. And there will be no chance for making mistake. In foreign exchange, swift operator will be done many other functions such as making vouchers, filling the loan and investment form. As a result foreign exchange function is hampered. � Foreign exchange section should be well accommodated and should be well furnished. Client cannot make noise in this section and transactions will be made smoothly. � ABBL should publish manual for their foreign exchange section. Consequently, the officers of this section will be able to conduct their affairs easily without any discussion with the Vice Principal. As a result, it will save their time. Wherever they face any problem, they will follow the manual directly. � It should diversify its item. � More importance should be given on export because it assesses most of the variation in profit. � As per coefficient of variation remittance is the most risky sector so attempts should be taken for lowering the risky ness. www. Assignment. Point. com

Conclusion �The banking sector of Bangladesh is passing through a tremendous reform under the economic deregulation and opening up the economy. Currently this sector is becoming extremely competitive with the arrival of multinational banks as well as emerging and technological infrastructure, effective credit management, higher performance level utmost customer satisfaction and the transactions of foreign exchange. www. Assignment. Point. com