Internship Report On Foreign Exchange and Remittances : A Study on Prime Bank Limited and Southeast Bank Limited

Internship Report On Foreign Exchange and Remittances : A Study on Prime Bank Limited and Southeast Bank Limited

This report is prepared with the information of The Prime Bank & Southeast Bank limited. The report is prepared under the topic - “Foreign Exchange & Remittances.” All information of this report is of these two banks from year 2005 to 2009.
Foreign exchange refers to the process of mechanism by which the currency of one country is converted into the currency of another country &, thereby, involves the international transfer of money. It is the means & method by which rights to wealth in a country’s currency are converted into rights to wealth in a country’s currency. But in the banking industry foreign exchange means the foreign currency which is fully convertible in banks’ “Nostro” accounts in foreign countries. Foreign exchange business is very much lucrative for banks as the international business is getting swifter day by day. In banking industry, foreign exchange indicates both the international business- import & export- & inward remittances.

Here remittances mean inward remittances. Banks earn profits from fostering international business in the name of imposing charges or interests & from facilitating inward remittances in the name of charges. Through fostering international business & facilitating inward remittances banks are contributing to the development of the country in the way of increasing foreign exchange reserves for our country.

The main part (Body) of this report is divided into two parts titled “Theoretical framework” & “Analytical framework.” The theoretical framework deals with principles & functions of Foreign Exchange, dimensions of foreign exchange, export-import tools of the both banks, over view of foreign exchange & remittances.

Secondly, the Analytical framework includes different types of trend analysis, percentage comparison & ratio analysis.

From the Theoretical framework, it is found that both the banks are doing well in terms of export, import & remittances but the Prime Bank is doing much better than the SEBL. Again the “Analytical framework” shows that SEBL is lagging behind the Prime Bank in all respects.

Prime Bank was always ahead of SEBL in terms of Export, Import & Remittances from year 2005 to 2009. Export, Import & remittances of both banks are on the increase but the growth of export, import & remittance is much faster than that of SEBL.


1.1 Objectives of the Report.
The aim to this report is to know about the overall condition of Foreign Exchange & Remittances of Prime Bank & SEBL. The aim to this report includes identifying the following dimensions.

Export- Import tools used by Prime Bank & SEBL.
Present condition of foreign exchange & remittances of our country.
Trend analysis of the two as a whole & separately.
Present condition of foreign exchange & remittances of Prime Bank & SEBL.
Trend analysis of foreign exchange (Export & Import) & remittances of Prime Bank & SEBL.
Comparison between export, import & remittances of Prime Bank & SEBL.
Comparison among the contributions of export, import & remittances of prime Bank & SEBL to country total.
1.2 Methodology.
This report is both descriptive and analytical in nature. At first all required data have been collected & then all collected data have been used to complete this report with the help of some analytical tools. So the entire process of completing this report can be categorized in two heads. Theses are-

I. Data gathering procedure
II. Data analysis procedure
III. Data gathering procedure.
All require data to prepare this report have been collected form both primary and secondary sources.
· Primary sources of data: Interviews, Informal discussion, Observation, & Questionnaires.
· Secondary sources of data: Annual Reports of Prime Bank & SEBL, Internet, Publications & journals.
II. Data analysis procedure.
The analytical part of this report is most important and depicts clear picture of all about Foreign Exchange & Remittances of “Prime Bank & SEBL” The analytical part of this report has been completed by using different statistical measures. This are-
· Trend analysis.
· Comparisons

1.3 Rationale of the Report.
Banking sector in our country is blooming day by day & thus contributing to the steady growth of our economy. About 80% of local investments come from banking sector in our country. Foreign exchange & remittances are the two major areas bringing much profit to the Banks.. With the extension of trade and commerce globally foreign exchange businesses are also being popular to banks. And recently some new rules & regulations regarding FX business have been enacted by Bangladesh Bank for risk mitigation purpose following the great global recession to strengthen the banks in the face of sudden financial shock. As a student of business especially of banking I would face these terms shortly when we will enter into my career. So it will help me build my career in banking sector & add much value to my future days.


1.4 Scope and Limitation.
The banking sector in our country is emerging much swiftly day by day keeping up with the sophistication of providing banking services. The banking sector in our country is the base of economic infrastructure. The banking sector contributes more than 80% of local investment. As a student department of banking, there is a great opportunity to be immensely benefited from this report because this report contains much crucial information as regards the overall foreign exchange & remittances. While entering in job market, this practical knowledge will benefit much.
This report is not totally free from lacking; rather it has some limitations or demerits. The whole report is prepared with the information of Prime Bank & SEBL from 2005 to 2009, but some information was not available, so the report will not clearly divulge the actual picture of the banks in terms of foreign exchange & remittances from 2005 to 2009. Another limitation of this report is that all numeric information is rounding in figure, so the exact information is not present in the report; rather it expresses near about exact information.

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