Internship Report On Foreign Exchange Operations Of Basic Bank Ltd


Foreign exchange, like foreign trade, is a part of economic science. The foreign exchange has played a vital role in the last decade or so on guiding the purchase and sale of goods, services and raw materials globally. International trade is the exchange of goods and services between countries, which gives rise to a world economy, in which prices, or supply and demand, affect and are affected by global events. Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all having a major impact. Increasing international trade is the primary meaning of "globalization". As a result of international trade, the market contains greater competition and therefore more competitive prices, which bring a cheaper product home to the consumer.


Commercial banks play very important role in international trade of a country by providing credit to the priority sectors and facilitating payment against trade with other countries. In this regard the Commercial Banks of Bangladesh are not the exceptions and the name of BASIC Bank Ltd. can be mentioned here as one of the top ranked bank. BASIC Bank Ltd. is a Bank with slogan “Serving people for progress”; this slogan has been maintained throughout the passing years by ensuring highest customer care and maintaining competitive market price.

For the Bank being different means- being the better bank in terms of operational excellence, unique customer focus, risk management, organizational advancement in terms of state-of-art IT implementation, expansion of branch network, new business development, implementation of standard operating procedures, training and retraining a pool of efficient and dedicated human resources and ensuring highest level of compliance and transparency in all spheres of operations and performance presentations.

BASIC Bank Limited is well positioned to meet the challenges of 2010 and will continue to strive to innovate and capture opportunity for growth and value creation. The Bank will focus on its customer base to generate more business from existing customers. This strategy is supported by wide spectrum of product and services and level of customer service delivery.

Here in this report I have tried to explore BASIC Bank’s arena of foreign exchange Business and their excellence in services along with the performance highlights during the past few years. An overall comparison also has been made with the total foreign exchange situation of Bangladesh and other competing Banks considering Gulshan branch contribution.
 Banking is one of the most important sectors for country’s wealth building activities which are being built with the brick of risk. Commercial banks are certainly profit making Financial Institutions but act as a lubricant to foster the economic growth. These institutions play great role in the money market of every economy.
Due to recent financial crisis globalization, technological innovation and deregulation in the banking system all over the world has been changing rapidly. Now a day’s banks have to compete in the market place not only with local institutions but also with foreign financial institutions.
The course under BBA program is designed with an excellent combination of theoretical and practical aspects. The whole course is divided into eight semesters of 6 months each. After completion of 8th semester consisting of theoretical exposure, the students are sent to different organizations to obtain some practical exposure in different sectors which would help them in taking up more professional courses in MBA. As a student of BBA, I have assigned to BASIC Bank Limited, Gulshan Branch for my practical orientation.
As our program director directed us to present the report in a way that would be based on the personal observations from the department I worked in. I have described the department by the following way:
1.1.1 Understanding:
In this part I have tried to be acquainted with every nook and cranny of foreign exchange section of BASIC bank Limited, Gulshan Branch.
1.1.2 Things are done here:
In this part I have tried to see the things which are being done in each section, i.e.; Loans and advance section, General banking section and foreign exchange section.
1.1.3        Personal observations:
In this part I have tried to present my personal observations from foreign exchange section. I had an opportunity to be acquainted with the practical banking prevail in the Gulshan branch, BASIC Bank Limited. I have tried my best to show the knowledge which have been acquired in my practical orientation period.
            1.2: Objectives of the study:
The Prime objectives of the study are to gather practical knowledge regarding banking systems and operation. This practical orientation gives us a chance to co-ordinate the theoretical knowledge with the practical experience. The following are the objectives for this practical orientation in bank:
v  To get an overall idea about the Foreign exchange Business of BASIC Bank Limited.
v  To apply theoretical knowledge in the practical field.
v  To describe the organizational structure, management, background, functions and   objectives of the bank and its contribution to the national economy.
v  To achieve overall understanding of BASIC Bank Limited.
v  To analyze the financing systems of the bank to find out any contributing field.
v  To examine the profitability and productivity of the bank.
v  To acquire knowledge about the every day banking operation of BASIC Bank Limited.
v  To understand the real management situation and try to recommend for improving existing problems.  


1.3: Schedule of internship:
Following schedules of the internship program were fixed by Manager of Gulshan Branch of BASIC Bank Limited.
21 June  to 10th July 2010
Loans and Advances Section
11th July to 10th August 2010
Foreign Exchange Section
11th August to 24th August 2010
General Banking Section
1.4: Coverage of the study:
The report covers the following areas.
¨      Overview of BASIC Bank Limited
¨      Terms used in foreign exchange operations
¨      Foreign exchange operations of BASIC Bank Limited
1.5: Methodology of the study:
From my educational background I have learnt different methodology to collect data from different sources and analyze them. With the objective to make my report sound one, I have the opportunity to implicate my educational knowledge in practical field. I have collected data from many sources. Such as:

1.5.1        Sources of Data

1.5.1.1  Primary Sources
    
·         Personal Interview – Face-to-face conversation and in depth interview with the respective officers of the branch.
·         Personal observation – Observing the procedure of banking activities followed by each department.
·         Practical work exposures on different areas of the branch.
·         Informal conversation with the clients or customers.

1.5.1.2  Secondary Sources

·         Annual report 2005, 2006, 2007, 2008 & 2009) of BASIC Bank Ltd.
·         Periodicals Published by Bangladesh Bank.
·         Different publications regarding Banking functions and foreign exchange operation
·         Internet will also be used as a theoretical source of information.
·         Use of different theories to make the report more relevant.

·         Printed Materials: This study is mostly dependent on the printed materials which may include the books, newspapers, magazines, journals, directories, annual reports, Bangladesh bank publications, BASIC Bank Ltd’s Annual Report etc

·         Internet: Internet was another major secondary source that we have used to collect related information to conduct the study.

·         Newspapers: We have collected some information from the various dailies and business articles.

                1.5.2: Data analysis and Interpretation:

Both quantitative and qualitative analysis will be performed on the findings. The quantitative analysis will be done on the trend of export- import, growth pattern of export-import, pre and post facilities provided for easing the export-import operations. Qualitative analyses will be based on the macroeconomic variables and foreign exchange policy provided by Bangladesh bank, the central bank of Bangladesh. Different statistical tools will be used for the analysis of the findings.