Internship Report on Foreign Exchange Activities of Exim Bank Limited: A Study on Nawabpur Branch

This report is prepared on the basis of my three-month practical experience at EXIM Bank Limited, Nawabpur Branch. This internship program helps me to learn more about the practical situation of a financial institution. Banking system of Bangladesh has gone through three phases of development- Nationalization, Privatization, and Lastly Financial Sector Reform. Export Import Bank Of Bangladesh Limited has started its journey as a private commercial bank on August 3, 1999.The whole working process of EXIM Bank Limited, Nawabpur Branch is divided into 3 sections- (i) General Banking Section, (ii) Investment Section, and (iii) Foreign Exchange Section. This report has been presented based on my practical observation and experience gathered from the Branch and the focus is given on the Foreign Exchange Section.
The whole report is divided into four parts- Introductory part, Organizational part, Learning part and concluding part. The first chapter is the introduction chapter of this report. It contains introduction, origin of the report, objective of the report, methodology of the report, scope of the report and limitations of the study. The organizational part contains historical background of EXIM Bank Ltd, corporate information, vision of EXIM Bank Ltd, mission of EXIM Bank Ltd, objectives of EXIM Bank Ltd., organogram of EXIM Bank Ltd, products of EXIM Bank Ltd, capital and reserve fund, deposit, investment, import business, export business, foreign remittance and SWOT Analysis. The learning part shows foreign exchange activities of EXIM Bank Limited, which includes introduction, foreign exchange transaction, import, export and foreign remittance. The four and last chapter contains problems of EXIM Bank Ltd, recommendations and conclusion.

Foreign exchange department plays significant roles through providing different services for the customers. Letters of credit is the key player in the foreign exchange business. With the globalization of economies, international trade has become quite competitive. Timely payment for exports and quicker delivery of goods is, therefore, a pre-requisite for successful international trade operations. To ensure this purpose, EXIM Bank Limited transmits L/C through SWIFT (Society for Worldwide Interbank Financial Telecommunication) to the advising bank. EXIM Bank Limited is providing different sorts of L/C services like L/C opening, Lodgment, BLC (bills under letter of credit), Back to back LC etc. Foreign exchange department also provide foreign remittance i.e. traveler’s cheque, foreign demand draft, endorsement of US$ in passport etc.

1.1 Introduction

Bank is very old institution that is contributing toward the Development of any economy and is treated as an important

Service industry in the modern world. Economic history shows that development has started everywhere with the banking system and its contribution towards financial development of a country is the highest in the initial stage. Modern banks play an important part in promoting economic development of a country. Bank provides necessary funds for executing various programs in the process of economic development. They collect savings from large masses of people scattered throughout the country, which in the absence of banks would have remained ideal and unproductive. These scattered amounts are collected, pooled together and made available to commerce and industry for meeting the financial requirements.

Economy of Bangladesh is in the group of world’s most underdeveloped economies. One of the reasons behind this may be its underdeveloped banking system. Government as well as different international organizations have also identified that underdeveloped banking system causes some obstacles to the process of economic development. So they have highly recommended for reforming financial sector. Since 1990, Bangladesh Government has taken a lot of reform activities to ensure high economic growth. In 1996, World Bank published “Bangladesh: Agenda for Action” in which it has suggested lots of recommendations for economic development of our country. These recommendations include special presentation for reforming banking sector.