FOREIGN EXCHANGE MANAGEMENT OF JANATA BANK LIMITED

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Internship Report on FOREIGN EXCHANGE MANAGEMENT OF

JANATA BANK LIMITED

Submitted to Department Of MIS Faculty of Business Studies

University Of Dhaka

Submitted By Lashkar Md Nazibul Islam MBA 3rd Batch Roll: 03-47 Department Of MIS Faculty of Business Studies
University Of Dhaka

Supervised by

. Mohammad Anisur Rahman Assistant Professor Dept . Of MIS University Of Dhaka Date of Submission: August 26, 2013

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Letter of Transmittal
August 26, 2013 Mohammad Anisur Rahman Assistant Professor Department of MIS University of Dhaka

Sir: I want to submit my internship report on Foreign Exchange Management Of Janata Bank

Limited. This report is going to provide valuable assistance to the organization in finding out
the factors regarding Foreign Exchange Management . Therefore, I need your kind attention to assess my report considering the limitations of the study. Your kind suggestion will persuade me to perform better research work in future.

Yours sincerely,

Lashkar Md. Nazibul Islam ID : 03-047

MBA 3rd Batch Roll: 03-47 Department of MIS Faculty of Business Studies University Of Dhaka
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Declaration

I do hereby solemnly declare that the work presented in this report entitled Foreign Exchange Management Of Janata Bank Limited has been carried out by me and has not been previously submitted to any other University/ College/ Organization for academic qualification/ certificate/ diploma or degree. The work I have presented does not violate any existing copyright and no portion of this report is copied from any other work done earlier for a degree or otherwise. I further undertake to indemnify the department against any loss or damage arising from breach of foregoing obligations.

Lashkar Md. Nazibul Islam MBA 3rd Batch Roll: 03-47 Department of MIS Faculty of Business Studies University Of Dhaka

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Letter of Authentication

I have certified that Lashkar Md. Nazibul Islam , ID 03-47 ,has completed his Internship Program successfully in Janata Bank Limited under my supervision. I have gone through his draft report copy and found it satisfactory. He is permitted to submit the report.

Supervisor

.. Mohammad Anisur Rahman Assistant professor Department of MIS University of Dhaka

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Acknowledgement

In the preparation of this internship report, I acknowledge the encouragement and assistance given by a number of people from Janata Bank Limited. I am grateful to Ayub Khan, Manager, Md. Taowhid Reza, Executive Officer and I also like to thank all the Department staffs of Divisional Office of Janata Bank Limited for their valuable suggestions giving me helpful support and assurance .

I would like to express my gratitude to my supervisor Mohammad Anisur Rahman, for sharing his ideas and interests with me about my study. His contribution boosted my confidence and helped me finish my study on time. At last, I want to show my gratefulness to all the respondents who spared their precious time in answering my questionnaires.

Lasker Md. Nazibul Islam MBA 3rd Batch

Roll: 03-47 Department of MIS Faculty of Business Studies University Of Dhaka

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EXECUTIVE SUMMARY

Today necessity of a Bank as a financial institution is undeniable. A country is financially rich when it has modern financial institutions of its own. These institutions play a vital role in the field of financial stability of a country. Banking sector is one of the stable financial institutions of a country. Due to Globalization and Technological changes, the banking business has become very competitive now a day. All banks are competing to give effective real time service to their customers. For giving friendly service to the customers they need experienced and well-educated working force. The overall approach of the report is a Descriptive one as it goes into the depth of service quality of Janata Bank Ltd. Here both primary and secondary information were used. Interview was the basic techniques comply to collect primary data from any people within the organization. Information about the varieties of activities within the Correspondent Banking Department was collected through interviewed. Different circulars and papers of Janata Bank Ltd, Term papers of JBL Training manuals, Guidelines for Foreign Exchange Transactions, General Banking Operation manual, Banking Lecture sheet within the organization helped me to gather data about the organization. The report contains three chapters. The first chapter of the report describes the introductory words of the internship report in which Introduction of Topic, Origin the Report, Background of the study, Objective of the Report, Scope of the Report, Methodology & Limitations. The Second Chapter Contains, Foreign Exchange function, Export/Import procedure , SWIFT , Function of SWIFT , SWIFT code, Procedure Of Opening The Letter Of Credit (L/C).The third chapter contains the organizational part of Janata Bank Ltd., Organization Structure of Janata Bank Ltd., Vision of Janata Bank Ltd., and Mission Statement, Product and services of Janata Bank Ltd.. Different Problems, suggestions, recommendations have come at the end of the report within the chapter four. The Problems findings during the three-month long internship period & suggestions are given from observation, comparative analysis, strategic point of view etc. To increase the efficacy in customer service Janata Bank Ltd. should try to develop the process of providing services. Janata Bank Ltd. has passed a long way since it is providing services. Already it has earned a strong

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positioned in the field of customer service. To continue to hold the position and be perfect in this sector it will have to keep more and more attention to the customer retention and development. Janata Bank Ltd is a government owned bank with numerous branches spreading all over Bangladesh. It collects remittances from NRB from different countries and transfers the currency in BDT to the destined location. Here I have tried to describe the remittance processing structure of JBL. Along with, I have included the changes made by globally accepted protocol UCP-600 and wired transfer service SWIFT. In this report I have tried to show the contribution of JBLs remittance earning on national remittance earning. JBLs performance is not dissatisfactory but the remittance earning is not increasing as the rising national remittance curve. After analyzing the data of JBLs remittance earnings process this report have suggested that JBL lacks in foreign currency collection structure. Its remittance earning is increasing but the increase is far below the national remittance increase. JBL should take up to the mark structural change in service to cope with the national trend and help Bangladesh earn more remittance. In addition, with this intern report have been included the regression analysis of import-export volume with regard of exchange rate. .

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Table of Content
Chapter Particulars Introduction 1.1 Origin of the Report 1.1 1.2 Background of the Study 1.3 Objective of the Study
1.1

Page Number 01 01 02 02 03 03 03 03 03 03 04

1.4 Scope of the study 1.5 Methodology of the Report

CHAPTER ONE

1.5.1 1.5.2 1.5.3 1.5.4 1.5.5

Selection of the topic Identifying data sources Collection of data Sampling Findings of the study:

1.6 Limitation of the Report Literature Review 2.1 Foreign Exchange Its Meaning And Definitions 2.2 Functions Of The Foreign Exchange Market 2.3 Export Its Meaning And Definitions 2.4 Formalities Of Export Procedure 2.5 Disposal Of Export Procedure 2.6 Import Its Meaning And Definitions CHAPTER TWO 2.7 Import Procedure 2.8 Payment Modes 2.9 Opening Letter Of Credit (L/C) 2.10 Procedure Of Opening The Letter Of Credit (L/C) 2.11 Swift 2.12 The Functions Of Swift

05 06 07 08 09 10 11 12 13 13 15 16

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Chapter

Particulars Organizational Part 3.1 Historical Background Of The Organization 3.2 Organizational Structure

Page Number 17 18 19 19 19 20

CHAPTER THREE

3.3 Mission 3.4 Vision 3.5 Offered Services By The Organization 3.6 Services Areas Findings 4.1 Foreign Exchange Management Of JBL 4.2 Export Of JBL 4.3 Export Finance Of JBL 4.4 Import Of JBL 4.5 Import Finance Of JBL

22 23 23 27 27 29 33 34

CHAPTER FOUR

4.6 Foreign Remittance Of JBL 4.7 Swift Of JBL 4.8 List Of SWIFT Branch/Office OF JBL 4.9 Documents Used In Foreign Exchange In JBL

35 Chapter 5.1 Recommendation 5.2 Conclusion CHAPTER FIVE 5.3 Reference 42 5.4 Appendix 43 Particulars Page No 40 41

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1.1 ORIGIN OF THE REPORT

Although total M.B.A. program combines an excellent blend of theoretical and classroom knowledge but aside this internship program facilitates a student to bring light on their theoretical knowledge to apply this in practical ground. I was assigned to Janata Bank,

Sonargaon Road Branch, and foreign exchange department for my practical execution. I am required to prepare an internship report under the supervision of our honorable teacher Mohammad Anisur Rahman Foreign Exchange Management of Janata Bank Limited to conduct a precision analysis on the typical subject. I have always tried my best to reflect my experience of the practical incidence in this report.

1.2 BACKGROUND OF THE STUDY

To supply well-versed graduates Department of MIS is conducting MBA program with excellent reputation. Each of the degree needs practical knowledge of respective field of discipline to be fruitful. To complete MBA program also has an Internship Report, relating to the exchange of theoretical knowledge into the partial fulfillment of the Internship program. During the Internship Program, I am under the supervision and guidance of Mohammad Anisur Rahman assigned to prepare a report about particular topic among some option which should be relevant to my practical knowledge within 90 days Bank Limited. MBA program. To fulfillment of the Internship program the report is originated entitled Foreign Exchange Management Of Janata

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1.3 OBJECTIVES OF THE REPORT

1.3.1 BROAD OBJECTIVE This report is prepared primarily to fulfill the Masters of Business Administration (MBA) degree requirement in MBA program of the faculty of business studies, department of management information systems, University of Dhaka. 1.3.2. SPECIFIC OBJECTIVES The main purpose of the report is to get a clear idea about Foreign Exchange Management of Janata Bank Limited To identify the Export procedures To identify the Import Procedures To observe the Foreign Remittance functionality of Janata Bank Ltd. To get a clear knowledge about SWIFT To get a clear knowledge about opening LC To know about the maintenance of other formalities of foreign exchange.

1.4 SCOPE OF THE REPORT

This study would focus on the following areas of Janata Bank Limited. Actual Foreign Exchange management of Janata Bank Limited. Overview the current procedure of export & import and remittance management. Opening LC and maintenance of other formalities of foreign exchange. Organizational structures and responsibilities of management. Each of the above areas would be critically analyzed to determine the proper efficiency of Janata Banks Foreign Exchange Management system.

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1.5 METHODOLOGY OF THE REPORT

The study requires a systematic procedure from selection of the topic to final report preparation. To perform the study the data sources are to be identified and collected, they are to be classified, analyzed, interpreted and presented in a systematic manner and key points are to be found out. The over all process of methodology is given in the following page in a form of table that has been followed in the study.
1.5.1 Selection of the topic The topic of the study was assigned by our supervisor. Before assigning the topic it was discussed with me so that a well organized internship report can be prepared. 1.5.2 Identifying data sources Essential data sources both primary and secondary are identified which will be needed to complete and work out the study.. i) The primary sources are: Face to face conversation with the officers. Practical desk work. Relevant files study as provided by the concerned officers. ii) The Secondary sources : Annual reports of JBL. Foreign exchange of JBL. Periodic reports of JBL. Annual Reports of Bangladesh Bank (BB). 1.5.3 Collection of data Primary data are collected by using interviewing technique. The reports are an exploratory research and for qualitative survey open ended question were ask to the Bank official. 1.5.4 Sampling Population: All the Branches of JBL located in everywhere in Bangladesh has been taken into consideration as population. Sample:. 1.5.5 Findings of the study: JBL, Main Branch, is the vital sample The collected data were scrutinized very well and were pointed out and shown as findings. Few recommendations are also made for improvement of the current situation. 1.5.6 Final report preparation: On the basis of the suggestions of our honorable faculty advisor some corrections were made to present the paper in this form. 1.5.7 Limitation of the report when I was preparing this report I have faced some limitations

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1.6 LIMITATIONS

I have faced some limitations, when I was preparing this report which is mentioned below. Time limitation: It was one of the main constraints that affected covering all aspects of the study. Lack of Secondary Information: The import export data of Bangladesh is not much available over the net. Secondary source of information was not sufficient for the completion of the report. Limitation of the Scope: Much confidential information was not disclosed by respective personnel of the department.

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2.1 FOREIGN EXCHANGE ITS MEANING AND DEFINITIONS

The exchange of one currency for another, or the conversion of one currency into another currency. Foreign exchange also refers to the global market where currencies are traded virtually around-the-clock. Any currency other than the local currency which is used in settling international transactions. Also called foreign currency. System of trading in and converting the currency of one country into that of another. See also foreign exchange market.

Foreign Bill Negotiation

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2.2FUNCTIONS OF THE FOREIGN EXCHANGE MARKET

The foreign exchange market performs the following important functions: (i) To effect transfer of purchasing power between countries- transfer function; (ii) To provide credit for foreign trade - credit function; and (iii) To furnish facilities for hedging foreign exchange risks - hedging function. Transfer Function: The basic function of the foreign exchange market is to facilitate the conversion of one currency into another, i.e., to accomplish transfers of purchasing power between two countries. This transfer of purchasing power is effected through a variety of credit instruments, such as telegraphic transfers, bank drafts and foreign bills.In performing the transfer function, the foreign exchange market carries out payments internationally by clearing debts in both directions simultaneously, analogous to domestic clearings.

Credit Function: Another function of the foreign exchange market is to provide credit, both national and international, to promote foreign trade. Obviously, when foreign bills of exchange are used in international payments, a credit for about 3 months, till their maturity, is required.

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Hedging Function: A third function of the foreign exchange market is to hedge foreign exchange risks. In a free exchange market when exchange rates, i.e., the price of one currency in terms of another currency, change, there may be a gain or loss to the party concerned. Under this condition, a person or a firm undertakes a great exchange risk if there are huge amounts of net claims or net liabilities which are to be met in foreign money. Exchange risk as such should be avoided or reduced. For this the exchange market provides facilities for hedging anticipated or actual claims or liabilities through forward contracts in exchange. A forward contract which is normally for three months is a contract to buy or sell foreign exchange against another currency at some fixed date in the future at a price agreed upon now. No money passes at the time of the contract. But the contract makes it possible to ignore any likely changes in exchange rate. (http://www.preservearticles.com/2012012721683/what-are-the-functions-of-the-foreignexchange-market.html, 2012)

2.3 EXPORT ITS MEANING AND DEFINITIONS:

A function of international trade whereby goods produced in one country are shipped to another country for future sale or trade. The sale of such goods adds to the producing nation's gross output. If used for trade, exports are exchanged for other products or services. Exports are one of the oldest forms of economic transfer, and occur on a large scale between nations that have fewer restrictions on trade, such as tariffs or subsidies. Most of the largest companies operating in advanced economies will derive a substantial portion of their annual revenues from exports to other countries. The ability to export goods helps an economy to grow by selling more overall goods and services. One of the core functions of diplomacy and foreign policy within governments is to foster economic trade in ways that benefit both parties involved. (http://www.investopedia.com/terms/e/export.asp, 2013)

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2.4 FORMALITIES OF EXPORT PROCEDURE

There are a number of formalities, which an exporter has to fulfill before and after shipment of goods. These formalities or procedures are enumerated in brief as follows: Obtaining Export Registration Certificate ERC: No exporter is allowed to export any commodity for export from Bangladesh unless he is registered with Chief Controller of Imports and Exports (CCI & E) and holds valid Export Registration Certificate (ERC). After applying to the CCI&E in the prescribed from along with the necessary papers, concerned offices of the Chief Controller of Imports and Exports issues ERC. Once registered, exporters are to make renewal of ERC every year. Securing the order: After getting ERC, the exporter may proceed to secure the export order. He can do this by contracting the buyers directly through correspondence. Obtaining EXP: After having the registration, the exporter applies to Janata Bank Limited with the trade license, ERC and the Certificate from the concerned Government Organization to get EXP. If the bank is satisfied, an EXP is issued to the exporter. Signing of the contract: After communicating with buyer the exporter has to get contracted for exporting exportable items from Bangladesh detailing commodity,

quantity, price, shipment, insurance and mark, inspection, arbitration etc. Receiving the Letter of Credit: After getting contract for sale, exporter should ask the buyer for Letter of Credit clearly stating terms and conditions of export and payment. Procuring the materials: After making the deal and on having the L/C opened in his favor, the next step for the exporter is to set about the task of procuring or manufacturing the contracted merchandise. Endorsement on EXP: Before the exporter with the customs or postal authorities lodges the export forms, they should get all the copies endorsed by Janata Bank Limited. Before shipment, exporter submits EXP. form with commercial invoice. Then Janata Banks respective officers check it properly, if satisfied, certified the EXP. Without EXP exporter cannot make shipment. The customer must declare all export goods on the EXP issued by the authorized dealers. (http://www.nfpl.net/pdf/procedure%20for%20import%20and%20export.pdf, 2012)
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2.5 DISPOSAL OF EXPORT PROCEDURE

Original: Customs authority reports first copy of EXP to Bangladesh Bank after shipment of the goods. Duplicate: Negotiating bank reports the Duplicate to Bangladesh Bank in or after negotiation date but not later than 14 days from the date of shipment. Triplicate: On realization of export proceeds the same bank to the same authority reports Triplicate. Quadruplicate: Finally, the negotiating bank as their office copy retains Quadruplicate. Shipment of goods: Exporter makes shipment according to the terms and condition of L/C. Presentation of export documents for negotiation: After shipment, exporter submits the following documents to Janata bank Limited for negotiation. Bill of Exchange or Draft Bill of Lading Invoice Insurance Policy/Certificate Certificate of origin Inspection Certificate Consular Invoice Packing List Quality Control Certificate G.S.P. certificate Examination of Document: Banks deal with documents only, not with commodity. As the negotiating bank is giving the value before repatriation of the export proceeds it is advisable to scrutinize and examine each and every document with great care whether any

discrepancy(s) is observed in the documents. The bankers are to ascertain that the documents are strictly as per the terms of L/C Before negotiation of the export bill. Bank officers assigned for examining the export documents may use a checklist for their convenience.

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Negotiation of export documents: Negotiation stands for payment of value to the exporter against the documents stipulated in the L\C. If documents are in order, Janata Bank Limited purchases (negotiates) the same on the basis of banker- customer relationship. This is known as Foreign Documentary Bill Purchase (FDBP).If the bank is not satisfied with the documents submitted to Janata Bank Limited and gives the exporter reasonable time to remove the discrepancies or sends the documents to L/C opening bank for collection. This is known as Foreign Documentary Bill for Collection (FDBC). Settlement of Local Bills: The settlement of local bills is done in the following ways, The customer submits the L/C to Janata Bank Limited along with the documents to negotiate Janata Bank Limited officials scrutinize the documents to ensure the conformity with the terms and conditions. The documents are then forwarded to the L/C opening bank. The L/C issuing banks gives the acceptance and forwards an acceptance letter. Payment is given to the customer on either by collection basis or by purchasing the document. (http://www.nibusinessinfo.co.uk/content/exporting-and-other-ways-disposing-inwardprocessing-goods, 2012)

2.6 IMPORT ITS MEANING AND DEFINITIONS

Import means purchase of goods or services from abroad. Normally consumers, firms and Government organizations import foreign goods or services to meet their various necessities. Main import items are food item, edible oil, fertilizer, petroleum, machineries, chemicals, raw materials of industry, cement clinkers etc. So, in brief, we can say that import is the flow of goods and services purchased by local agent staying in the country from foreign agent staying abroad. (http://www.investopedia.com/terms/e/export.asp, 2013)

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2.7 IMPORT PROCEDURE

Authorized Dealer, banks are always committed to facilitate import of different goods into Bangladesh from the foreign countries. Import Section, which is under Foreign Exchange Department of a bank, is assigned to perform this job. And to serve its parties demand to import goods, it always maintains required formalities that are collectively termed as Import Procedure. i) At first, the importer must obtain Import Registration Certificate (IRC) from the CCI&E submitting the following papers: Up to date Trade License. Nationality and Asset Certificate. Income Tax Certificate. In case of company, Memorandum & Articles of Association and Certificate of Incorporation. Bank Solvency Certificate etc. Required amount of registration fee ii) Then the importer has to contact with the seller outside the country to obtain the Proforma Invoice. Usually an indenter, local agent of the seller or foreign agent of the buyer makes this communication. Beside these other sources are: Trade fair. Chamber of Commerce. Foreign Missions in Bangladesh. Journals etc. iii) When the importer accepts the Proforma Invoice, he/she makes a purchase the exporter detailing the terms and conditions of the import. iv) After making the purchase contract, importer settles the means of payment with the seller. An import procedure differs with different means of payment. The possible means are Cash in
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contract with

Advance, Open Account, Collection Method and Documentary Letter of Credit. In most cases, the Documentary Letter of Credit in our country makes import payment. Purchase Contract contains which payment procedure has to be applied.

(http://www.nfpl.net/pdf/procedure%20for%20import%20and%20export.pdf, 2012)

2.8 PAYMENT MODES

Cash in advance: Importer pays full, partial or progressive payment by a foreign DD, MT or TT. After receiving payment, exporter will send the goods and the transport receipt to the importer. Importer will take delivery of the goods from the transport company. Open Account: Exporter ships the goods and sends transport receipt to the importer. Importer will take delivery of the goods and makes payment by foreign DD, MT, or TT at some specified date. Collection Method: Collection methods are either clean collection or documentary collection. Again, Documentary Collection may be Document against Payment (D/P) or Document against Acceptance (D/A). The collection procedure is that the exporter ships the goods and draws a draft/ bill on the buyer. The exporter submits the draft/bill (only or with documents) to the remitting bank for collection and the bank acknowledges this. Then the remitting bank sends the draft/bill (with or without documents) and a collection instruction letter to the collecting bank. Acting as an agent of the remitting bank, the collecting bank notifies the importer upon receipt of the draft. The title of goods is released to the importer upon full payment or acceptance of the draft/bill. Letter of credit: Letter of credit is the well-accepted and most commonly used means of payment. It is an undertaking for payment by the issuing bank to the beneficiary, upon submission of some stipulated documents and fulfilling the terms and conditions mentioned in the letter of credit.

(http://www.nibusinessinfo.co.uk/content/exporting-and-other-ways-disposinginward-processing-goods, 2012)

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2.9 OPENING LETTER OF CREDIT (L/C)

In global business environment, buyers and sellers are often unknown to each other. So seller generally demands guarantee of payment for his exported goods. In this situation bank has an important role. Bank gives export guarantee that it will pay for the goods on behalf of the buyer. This guarantee is called Letter of Credit or LC. Thus by letter of credit the contract between importer and exporter find a legal sphere. (http://www.investopedia.com/terms/e/export.asp, 2013)

2.10 PROCEDURE OF OPENING THE LETTER OF CREDIT (L/C)

After receiving the perform invoices from the exporter, by applying for the issue of documentary credit, the importer requests his/her bank to make a promise of payment to the supplier. Obviously, the bank will only agree to this request if bank can rely fully on reimbursement by the applicant. According to the accepted custom as the sole security for the credit, particularly if they are not the sorts of commodity that can be traded on an organized market, such an agreement would make the bank to bear excessive risk outside its specialized field. The applicant must therefore have adequate fund in the bank account or a credit line sufficient to cover the required amount. Banks deals with documents and not with goods. Once the bank has issued the credit its obligation to pay is conditional on the presentation of the stipulated documents within the prescribed time limit. The applicant cannot prevent a bank from honoring the documents on the grounds that the beneficiary has not delivered goods. documents with the application for opening the L/C Tax Identification Number (TIN) Valid trade license Import registration certificate (IRC) The bank will supply the following documents before opening the L/C LCA form
IMP form

The importer submit the following

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Submission of Necessary Documents by Exporter to the Negotiating Bank: As soon as the seller/exporter receives the credit and is satisfied that he can meet its terms and conditions, he is in a position to load the goods and dispatch them. The seller then sends the documents evidencing the shipment to the bank. Exporter will submit those documents in accordance with the terms and conditions as mentioned in L/C. Generally the documents observed by the foreign exchange department are: Bill of exchange Commercial invoice Bill of lading / Air way bill / Truck receipt Certificate of origin Packing list Clean Report of Finding (CRF) Insurance cover note Pre-shipment certificate The Documents Sent To The Issuing Bank Through The Negotiating Bank: The negotiating bank carefully checks the documents provided by the exporter against the credit, and if the documents meet all the requirement of the credit, the bank will pay, accept, or negotiate in accordance with the terms and conditions of the credit. Then the bank sends the documents to the L/C opening bank. Making the Payment of Foreign Bill through the Reimbursing Bank: The L/C issuing bank getting the documents checks immediately and if they are in order and meet the credit requirements; it will arrange to make payment against L/C through reimbursement bank and will send the importer the document arrival notice.

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2.11 SWIFT
SWIFT (Society for Worldwide Interbank Financial Telecommunication) provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized and reliable environment. Swift also sells software and services to financial institutions, much of it for use on the SWIFTNet Network, and ISO 9362. Business Identifier Codes (BICs) are popularly known as "SWIFT codes". High-value payment market infrastructures focus primarily on security and resilience to support time-critical payments, efficiency to have the right trade-off between risks and cost. Liquidity cost reduction by early finality, easy collateral coverage and better liquidity management through real-time interactive services Balancing cost, efficiency and risk are your key requirements, and SWIFT meets them with a reliable, secure and reusable messaging infrastructure, supporting international and proprietary standards. More than 62 high-value payments clearing and

settlement systems covering more than 90 countries and carrying more than 240 million payments a year, rely on SWIFT for secure messaging services and common message standards essential to their smooth operation. Because customers are multilateral, customers need a trusted third party like SWIFT to provide secure, reliable and proven messaging solutions. SWIFTs offering is more compelling in terms of cost and risk than alternatives, thanks to reusability of participants existing SWIFT infrastructures, value-added services such as FIN Copy, and standard support services. SWIFT solutions for high-value payment clearing systems support the messaging layer for payment transaction processing, cash management, business administration functions, reporting and generic communication. ((http://www.janatabank-bd.com/jb7.htm, 2013), 2013)

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2.12 THE FUNCTIONS OF SWIFT

SOLUTIONS FOR For payments Cash Reporting Supporting your real-time account information needs Payments and cash management Economic changes in the payments landscape have forced the banking community to find new ways to reduce their operational costs, mitigate their liquidity risk and increase the revenue and efficiency of their core payment products.. SWIFT has developed offerings in payments and cash management to help the banking community meet these urgent challenges: Enhance customer service: automate exceptions and investigations in order to reduce enquiry turn-around time and to provide transparency on enquiry status to your customers, provide a compelling value proposition for corporate or person-to-person retail payments for immigrants (workers Improve liquidity and risk management: receive remittances) including mobile payments.

end-of-day as well as intra-day cash reports information vital to get visibility on cash positions across your organization and to improve liquidity management. In addition, SWIFT is considering extending its value proposition to include liquidity risk management tools. Increase operational efficiency and save costs: SWIFTs single window allows you to rationalize your connectivity channels with: 1. Correspondent banks for clearing and settlement of domestic or foreign currency payments using SWIFTs payments clearing messaging services 2. High value payments clearing and/or settlement systems operating on a real-time gross settlement basis using SWIFTs secure and reliable FIN domestic services for high value payment market infrastructures 3. Retail payments clearing systems using SWIFTs cost efficient services for retail payments market infrastructures: the services help to clear batches of payments prior to settlement at discrete intervals, with or without netting. ((http://www.janatabank-bd.com/jb7.htm, 2013), 2013)
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3.1 HISTORICAL BACKGROUND OF THE ORGANIZATION

Janata Bank Limited is the 2nd largest state owned commercial bank in Bangladesh. Immediately after the liberation of Bangladesh in 1971, the erstwhile United Bank Limited and Union Bank Limited were renamed as Janata Bank. The established of Janata Bank was happened under the Bangladesh Bank order 1972. It was incorporated as a public Limited Company on 21, May 07 vide certificate of incorporation No-C66933(4425)07 in the early era of privatization. Janata Bank Limited, one of the state owned commercial banks in Bangladesh, has an authorized capital of Tk. 20000 million (approx. US$ 250 million), paid up capital of Tk. 11000.00 million, reserve of Tk.17234 million. The Bank has a total asset of Tk. 508567 million as on 31st December 2012. Immediately after the emergence of Bangladesh in 1971, the erstwhile United Bank Limited and Union Bank Limited were renamed as Janata Bank. On 15th November, 2007 the bank has been corporatised and renamed as Janata Bank Limited. Janata Bank Limited

operates through 889 branches including 4 overseas branches at United Arab Emirates. It is linked with 1202 foreign correspondents all over the world. The Bank employees more than 15(fifteen) thousand persons. (http://www.janatabank-bd.com/jb1.htm, 2013)

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3.2 ORGANIZATIONAL STRUCTURE

13.2.1. MANAGEMENT ASPECT

Like every other business organization, the foremost duty of the top management is to makes all the major decisions of Janata Bank. The boards of directors are being at the topmost level of organizational structure plays an important role in policy formulation and successful execution, but it is not a direct concern of the day-day operations of the bank. The duty was delegated to the management committee. The board mainly sets the objectives and policies of the bank. The management consists of one chairman, eleven directors, one CEO & MD and one company secretary.. Mid and lower level employees get the direction and instruction from the Board of Directors about the tasks they have to meet. The chief executive provides the guideline to the managers and employees, but bears the responsibility for determining how tasks and goals are to be attained. (http://www.janatabank-bd.com/jb1.htm, 2013)

(http://www.janatabank-bd.com/jb1.htm, 2013)

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3.3 ORGANIZATION MISSION AND VISION

3.3.1 MISSION: As it is recognized as the leading commercial bank in the aspect of Bangladesh market and it is providing retail and corporate banking services, it is trusted and respected as a partner in the social and economic development program in our country and among our nation. (http://www.janatabank-bd.com/jb1.htm, 2013) 3.3.2 VISION: Becoming effective largest commercial bank in the perspective of Bangladesh to support socioeconomic development of the country and assists go ahead for becoming leading bank in SouthAsia. (http://www.janatabank-bd.com/jb1.htm, 2013)

3.4 OFFERED SERVICES BY THE ORGANIZATION

Beside regular banking operation, Janata Bank Limited offers specialized services to different walks of clients/agencies throughout the country. Under the network of utility services,

customers of different govt. organizations, corporate bodies, local bodies, educational institutions, students, etc are getting essential benefits from the Bank continuously. The utility services of Janata Bank Limited's are: 3.4.1 BILLS COLLECTION: Collecting the gas bills of Titas, Bakhrabad and Jalalabad Gas Transmission and Distribution Companies. Regular collection of electricity bills of Dhaka Electricity Supply Authority, Dhaka

Electricity Company, Bangladesh Power Development Board and Rural Electrification Board. Regularly collects the telephone bills of Telegraph and Telephone Board. Collects Water/Sewerage bills of Water and Sewerage Authority. Municipal holding tax of City Corporation/ Municipalities is collected by JBL.
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3.4.2 PAYMENTS MADE ON BEHALF OF GOVT. Payment of non- Govt. teachers salaries Providing girl Students scholarship/stipend & Primary Student Stipend. Provides army pension Payment of widows, divorcees and destitute women allowances Old-age Allowances Food procurement Bills As per decision of the govt. 46 (Forty Six) branches of JBL(40 branches in Dhaka city, 1(one) branch in Narayangonj city and 5(five) branches in Chittagong city) are involved to receive all utility bills in a same station from January'04. (http://www.janatabank-bd.com/jb8.htm, 2013)

3.5 SERVICES AREAS

Branches There are 851 branches of Janata Bank Limited in home and abroad. Among them 443 branches are situated in urban areas including four foreign branches and

408branches are in rural areas. And all foreign branches are situated in United Arab Emirates. There are 851 branches of Janata Bank Limited in home and abroad. Among them 443 branches are situated in urban areas including four foreign branches and 408branches are in rural areas. All foreign branches are situated in United Arab Emirates.(http://www.janatabankbd.com/jb9.htm,
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2013)

3.5.1List Of Branch
Local Office Corporate-1 Branch Corporate-2 Branch Overseas Branch Grade-1 Branch Grade-2 Branch Grade-3 Branch Grade-4 Branch Total Branches : (http://www.janatabank-bd.com/jb9.htm, 2013) 1 12 40 04 204 209 296 117 883

3.5.2 Overseas Branch

SL. 01. 02. 03. 04. Abu Dhabi Al-Ain Sharjah Dubai Total : 04 Name Status Foreign Foreign Foreign Foreign

(http://www.janatabank-bd.com/jb9.htm, 2013)

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4.1 FOREIGN EXCHANGE MANAGEMENT OF JBL

One of the most important businesses carried out by the commercial bank is foreign trading. General focusing states that, the trade among various countries falls for close link between the parties dealing in trade. The situation calls for expertise in the field of foreign operations. The bank, is referred to as rending international banking operation which provides such services. Transactions with overseas countries in respect of export, import and foreign remittance dealings are under the preview of foreign exchange department. International trade demands a flow of goods from seller to buyer and of payment from buyer to seller. In this case the bank forms bridge between the buyer and seller. Among all departments Foreign exchange department of Janata Bank Limited is one of the most important. This department handles various types of activities. Among these main three are as follows: Export Import and Foreign remittance JBL collects remittances from NRB from different countries and transfers the currency in BDT to the destined location. Here I have tried to describe the remittance processing structure of JBL. Along with, I have included the changes made by wired transfer service SWIFT. In this report I have tried to show the contribution of JBLs remittance earning on national remittance earning. JBLs performance is not dissatisfactory but the remittance earning is not increasing as the rising national remittance curve. After analyzing the data of JBLs remittance earnings process this report have suggested that JBL lacks in foreign currency collection structure. Its remittance earning is increasing but the increase is far below the national remittance increase. JBL should take up to the mark structural change in service to cope with the national trend and help Bangladesh earn more remittance.

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4.2 EXPORT OF JBL

Janata Bank Limited exports a large quantity of goods and services to many countries. Readymade textile garments (both knitted and woven), Jute, Jute-made products, frozen shrimps, tea, hide and skin, vegetables are the main goods that Bangladeshi exporters exports to foreign countries. Garments sector is the largest sector that exports the lion share of the country's export. Bangladesh exports most of its readymade garments products to U.S.A and European Community (EC) countries. Bangladesh exports about 40% of its readymade garments products to U.S.A. Most of the exporters who export through Janata Bank Limited foreign exchange Branch are readymade garment exporters. They open export L/Cs here to export their goods, which they open against the import L/Cs opened by their foreign importers

4.3 EXPORT FINANCE OF JBL

To boost up country's Export, Janata Bank Limited has been providing different kinds of assistance to exporters. Some of which are as under: Providing Pre-Shipment and Post-Shipment Finance, Export Guarantee and bonding facility etc. Concessional rate of interest for exports Finance. Back to Back L/C under bonded Warehouse facility Sight & Unasked L/C against Firm Contract for import of raw materials. Sight L/C under EDF Exporter's Retention Quota A/C both interest bearing and non-interest bearing. Export incentive Program. Banking at Export Processing Zone Scope for establishment of export oriented industry by 100% foreign investment and by joint-venture The sole bank to disburse Government Export Promotion Fund against export of Computer Software & Data Entry Processing.. (http://www.janatabankbd.com/jb5.htm, 2013)

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Janata Bank Limited's Export Performance

In 2011 Janata Bank Limited's export target is Tk.-14,400.00 cr and the achievement is

Tk.- 15,375.82 cr what is about 109.82% of the target with 29.74% growth. Export growth of Janata Bank Limited (20022011): Year Target Achievement

(Taka in Core) Achievement Rate 78.84% 107.16% 113.80% 85.56% 101.28% 92.14% 99.06% 128.84% 112.87 109.82% Growth +6.38% +24.40% +27.43% +6.90% +21.40% +01.35% +18.87% +00.28% +38.37% +29.74%

2002 4000.00 3445.46 2003 4000.00 4286.49 2004 4800.00 5462.33 2005 6825.00 5839.48 2006 7000.00 7089.66 2007 7,798.38 7185.55 2008 8622.66 8541.78 2009 6648.00 8565.31 2010 10500.00 11851.52 2011 14000.00 15375.82 (http://www.janatabank-bd.com/jb5.htm, 2013)

Export growth of Janata Bank Limited (20022011):

(Taka in Core)

16000 14000 12000 10000 8000 6000 4000 2000 0 1 2 3 4 5 6 7 8 9 10 Year Target Achievement Achievement Rate Growth

(http://www.janatabank-bd.com/jb5.htm, 2013)

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Contribution to National Export business of Janata Bank Limited (Million US$) National Export Target Achievement Financial Year 7227.70 7603.00 2003-2004 8565.78 8655.00 2004-2005 10159.20 10526.16 2005-2006 12500.00 12187.50 2006-2007 14500.00 14111.08 2007-2008 16298.43 15565.19 2008-2009 17600.00 16204.65 2009-2010 18500.00 22924.38 2010-2011 (http://www.janatabank-bd.com/jb5.htm, 2013) Contribution to National Export of Janata Bank Limited Achievement Percentage 632.90 8.21% 692.80 8.00% 958.02 9.10% 1057.68 9% 1107.50 8% 1293.21 8% 1407.11 8.68% 2075.38 9.05%

Contribution to National Export business of Janata Bank Limited (Million US$)

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

Percentage Achievement Achievement Target

(http://www.janatabank-bd.com/jb5.htm, 2013)

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Commodity-wise Export performance: 2005 to 2011 (Taka in Core) Year 2005 2006 2007 2008 2009 2010 2011 RMG Frozen Fish 2933.4 595.63 7 3549.8 674.47 2 3540.9 743.28 3 4214.5 797.60 5 4447.8 817.53 2 6367.0 1032.42 7 9597.2 1427.54 8 Hide & Skin 615.34 758.66 780.70 837.55 Raw Jute 56.80 68.84 75.91 74.68 Jute Goods 479.87 544.40 495.55 644.54 Vegetable s 126.58 136.35 127.05 162.90 156.60 163.54 211.64 Tea 9.64 2.79 1.94 5.20 2.09 0.20 0.00 Others Total

1022.15 5839.48 1354.33 7089.66 1420.19 7185.55 1804.76 8541.78 1796.86 8865.31 1996.46 11851.52 1176.57 15375.82

1021.22 101.78 521.41 1318.93 182.74 790.16 1899.86 146.30 916.63

(http://www.janatabank-bd.com/jb5.htm, 2013)

16000 14000 12000 10000 8000 6000 4000 2000 0 Year RMG Frozen Fish Hide & Skin

Series1 Series2 Series3 Series7 Series4 Series4 Series5 Series6 Series7

Raw Jute

Jute Goods

Vegetables

Tea

Series1 Others Total

(http://www.janatabank-bd.com/jb9.htm, 2013)

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4.4 IMPORT OF JBL

Import means purchase of goods or services from abroad. Normally consumers, firms and Government organizations import foreign goods or services to meet their various necessities. Main import items are food item, edible oil, fertilizer, petroleum, machineries, chemicals, raw materials of industry, cement clinkers etc. So, in brief, we can say that import is the flow of goods and services purchased by local agent staying in the country from foreign agent staying abroad.

4.5 IMPORT FINANCE OF JBL

Through quite a good number of Authorized Dealer Branches and 1198 nos. foreign correspondents world wide Janata Bank Limited has been extending full range import and relevant finance facilities.

Import Items :
Capital Machineries and Industrial raw materials. Fuel & Lubricants. Intermediate goods. Consumer durable, spare parts and equipments. Consumer goods : Food & Food Grains, Baby food, Petroleum, CDSO (Crude Degummed Soya bean Oil), CPO (Crude Palm Olin) Oilseeds, Cement Clinker, Construction Materials, Fertilizer, Chemicals and many other goods permissible by Import by Import Policy of the country. (http://www.janatabank-bd.com/jb5.htm, 2013)

Facilities Offered :
Opening of L/C at competitive/ reasonable margin and commission Interest at concession rate on import finance to the prime customers & interest rebate facilities.

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Import Trend Setting Industrial vision to facilitate optimally, bank's involvement has been showing sharp rising trend as under: Year 2000 2001 2002 2003 2004 2005 2006 2007
(http://www.janatabank-bd.com/jb5.htm, 2013)

Taka in Million 48004.80 54666.30 58889.10 60476.80 74919.70 72912.20 128809.00 84065.40

140000 120000 100000 80000 60000 40000 20000 0 1 2 3 4 5 6 7 8 Year Taka in Million

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4.6 FOREIGN REMITTANCE OF JBL

Inward foreign remittance through Janata Bank Ltd. up to November 2012 is Tk. 51508.55 million. Foreign remittance from NBRs reached record high of Tk. 45924 million in 2011 against Tk.36788 million in 2010 and continue to play an important supporting role in strengthening the economy of the county Janata Bank ltd. by reducing lead-time, has ensured quick delivery of foreign remittance, an NBR branch has been opened to serve exclusively Non-resident Bangladeshis through Speedy Money Remittance System with instant to the beneficiaries. Anybody willing to remit foreign currency from any corner of the world can use wide network of the bank. The remittance reaches to the beneficiary within 3 days without charging any commission. Our worldwide network includes 4 branches in UAE, 2 exchange houses in Italy and correspondent relationship with all the major Banks and all important trade centers of the world. Recently Janata Bank Ltd. has launched its Speedy Foreign Remittance Payment System which enables beneficiaries to receive their money within shortest possible time. The beneficiary also gets information of remittance through automated SMS. Its a secured, easy, cost effective and speedy way of remittance for the remitter. Janata bank Ltd. has signed an agreement with

Western Union Network to facilitate wide range of remittance of the globe. Both the organizations make it possible to receive the money from about 300,000 locations of 200 countries instantly with prevailing mutual mechanism and workforce. The achievement of Janata Bank Ltd. in attracting foreign remittance as compared to countrys performance is given bellow: COUNTRY WISE REMITTANCE OF JANATA BANK LIMITED To facilitate sending money in Bangladeshi Taka directly, Janata Bank Limited has Taka Drawing Arrangement with many banks/exchange companies in different countries. The expatriate Bangladeshis may send their money in BDT (Bangladeshi Taka) through the branches/subsidiaries of Janata Bank Limited and foreign banks/exchange companies. Remittance services are available at all branches and foreign remittances may be sent to any branch by the remitters favoring their beneficiaries. Remittances are credited to the account of beneficiaries instantly or within shortest possible time. Inward remittance from Bangladeshi nationals working abroad continued to play an important role in strengthening the current account. Receipts on this sector increased gradually in every year from 2006 to 2009. The underlying reason was that Bangladesh Bank has simplified the approval policy of drawing arrangements between foreign exchange houses and domestic bank. Janata Banks management has taken this opportunity.
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For quick payment of TTs issued by 4(Four) UAE branches of Janata Bank Limited ( Abu Dhabi, Al-Ain, Dubai &Sharjah branch) Foreign Exchange Corporate Branch, Dhaka( FECB, Dhaka), Laldighi East Corporate Branch, Chittagong(LDE, Ctg), Foreign Exchange Corporate Branch, Sylhet( FECB, Sylhet), Khulna Corporate Branch, Khulna, Barisal Corporate Branch, Barisal &Rajshahi Corporate Branch, Rajshahi are nominated. To facilities to its remitters Janata bank Limited has started1. FECB, Dhaka will cover whole Dhaka Division, 2. LDE, Ctg will cover whole Chittagong Division, except branches under greater Comilla and Noakhali Area. 3. FECB, Sylhet will cover whole Sylhet Division, 4. Khulna Corporate will cover whole Khulna Division, 5. Barisal Corporate will cover whole Barisal Division, 6. Rajshahi Corporate will cover whole Rajshahi Division, 7. Comilla Corp. will cover all branches under greater Comilla district. 8. Noakhali Corp. will cover all branches under greater Noakhali district. Commission for issuance of Taka Drafts from our UAE branches has been reduced and refixed from AED 10.00 to AED 4.00 and commission for issuance of TTs drawn on Bangladesh and payable at any bank branches are re-fixed at AED 12.00 from AED 30.00. Commission for issuances of Taka drafts at UAE branches has been reduced irrespective of amount. 1% interest above the normal savings deposit rate is offered to SB accounts receiving foreign remittance.

Facilities offered to the remitters

Commission for issuance of Taka Drafts from our UAE branches has been reduced and refixed from AED 10.00 to AED 4.00 and commission for issuance of TTs drawn on Bangladesh and payable at any bank branches are re-fixed at AED 12.00 from AED 30.00. Commission for issuances of Taka drafts at UAE branches has been reduced irrespective of amount. 1% interest above the normal savings deposit rate is offered to SB accounts receiving foreign remittance.

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NON RESIDENT FOREIGN CURRENCY DEPOSIT ACCOUNT (NFCD) Expatriate Bangladeshi Nationals and persons of Bangladesh origin including those having dual nationality may open non- Resident Foreign Currency Deposit Account with any authorized dealer branches of Janata Bank Limited in Bangladesh for a period of one month, three months, six months or twelve months on renewable basis depositing minimum US Dollar 1000/- or Pound Sterling 500/- . The eligible persons may open this account at any time of their return to Bangladesh. Interest on NFCD Account is applicable on the basis of Euro currency interest rate which is tax free in Bangladesh. Principal amount including accrued interest is convertible in local currency as well as reparable to the account holder abroad . This account may be maintained as long as the account holder desires. NFCD account opening Forms are available with

authorized dealer branches of Janata Bank Limited in Bangladesh and Commission Offices of Bangladesh abroad. Rules/Procedures for Opening NFCD Account

Embassy/ High

Application in plain paper to Manager of concern Authorized Dealer branches of Janata Bank Limited.

Signature of the applicant verified by an official of Bangladesh Embassy /High Commission abroad or Notary Public of the country where the applicant resides and photocopy of the pages of passport containing specimen signature of the applicant where Janata Bank Limited branches or representative offices are not available. FC Account may also be opened through our 4 (four) U.A.E. branches and 2 (two) branches of Janata Exchange Co. Italy.

Photocopy of passport attested by officials of Embassy / High Commission Office of Bangladesh abroad or our branch officials.

Two copies of passport size photograph. Letter of authority for handover of NFCD Receipt.

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Resident Foreign Currency Deposit ACCOUNT (RFCD): Persons ordinarily resident in Bangladesh may open RFCD Accounts with the foreign currencies brought in at the time of their return from abroad. This account may be opened with any authorized dealer branches of Janata Bank Limited in US Dollar and Pound Sterling. Interest is payable if the deposit is maintained for a term of not less than one month and the balance is not less than US Dollar 1000/- and Pound Sterling 500/-. RFCD account may be maintained as long as the account holder desires. Balances of such accounts are repatriable abroad.

Non-Resident Investor's Taka Account (NITA): Expatriate Bangladeshis may invest their hard earned money in the Stock Exchange for purchase of Bangladeshi shares and securities. For this purpose, the expatriates may open NITA account with any authorized dealer branches of Janata Bank Limited. Divident earned from shares/securities is tax-free in Bangladesh. Balance of NITA account is repatriable abroad at the prevailing rate of exchange. NITA account may be operated by the nominee. The account holders may nominate Janata Bank Limited to act as nominee also. Wage Earners Development Bond (WEDB) Expatriate Bangladeshi Wage Earners may invest their hard earnings in five years WEDB on renewable basis for denomination of Taka 25,000/-, Taka 50,000/-, Taka 100,000/-,Taka 200,000/-, and Taka 500,000/- or any multiple of these amounts at attractive rate (Present rate 12.00% (with effect from 1st July 2010) compoundable in every six months) of interest and the accrued interest is tax free in Bangladesh. Principal amount of WEDB is reparable to the bond holder abroad at the prevailing rate of exchange.

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4.7 SWIFT
SWIFT (Society for Worldwide Interbank Financial Telecommunication) provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized and reliable environment. Swift also sells software and services to financial institutions, much of it for use on the SWIFT Net Network, and ISO 9362. Business Identifier Codes (BICs) are popularly known as "SWIFT codes"..High-value payment market infrastructures focus primarily on security and resilience to support time-critical payments, efficiency to have the right trade-off between risks and cost. Liquidity cost reduction by early finality, easy collateral coverage and better liquidity management through real-time interactive services Balancing cost, efficiency and risk are your key requirements, and SWIFT meets them with a reliable, secure and reusable messaging infrastructure, supporting international and proprietary standards. More than 62 high-value payments clearing and settlement systems

covering more than 90 countries and carrying more than 240 million payments a year, rely on SWIFT for secure messaging services and common message standards essential to their smooth operation. Because customers are multilateral, customers need a trusted third party like SWIFT to provide secure, reliable and proven messaging solutions. SWIFTs offering is more compelling in terms of cost and risk than alternatives, thanks to reusability of participants existing SWIFT infrastructures, value-added services such as FIN Copy, and standard support services. SWIFT solutions for high-value payment clearing systems support the messaging layer for payment transaction processing, cash management, business administration functions, reporting and generic communication. ((http://www.janatabank-bd.com/jb7.htm, 2013), 2013)

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4.8List of SWIFT Branch/Office

SL No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. Branch/Office Janata Bank Ltd. Head Office Janata Bhaban Corp. BR Local Office, Dhaka Dilkusha Corp. BR, Dhaka Motijheel Corp. BR Foreign Ex. Corp. BR, Dhaka Imamgonj Corp. BR Topkhana Corp. BR Kamal Ataturk Corp. BR, Dhaka Shantinagar Corp. BR Ramna Corp. BR, Dhaka B B Road Corp. BR, N.Gonj Bogra Corp. BR Rangpur Corp. BR MK Road Corp. BR, Jessore Khulna Corp. BR Barisal Corp. BR For. Ex. Corp. BR, Sylhet Comilla Corp. BR Laldighi East Corp. BR, Ctg. Foreign Ex. Corp. BR, Ctg. SK Mojib road Corp. BR, Ctg. Sadharan Bima Bhaban Corp. Ctg. Dinajpur Corp. BR Faridpur Corp. BR SWIFT Code JANBBDDH JANBBDDHJBC JANBBDDHJBD JANBBDDHDCB JANBBDDHMCA JANBBDDHFEC JANBBDDHIMA JANBBDDHTKD JANBBDDHKAC JANBBDDHSNB JANBBDDHJRD JANBBDDHBNG JANBBDDHBOG JANBBDDHRNP JANBBDDHJMK JANBBDDHKDA JANBBDDHBSL JANBBDDHFES JANBBDDHCCN JANBBDDHLDE JANBBDDHCDA JANBBDDHSMS JANBBDDHSBB JANBBDDHDNJ JANBBDDHFAR

((http://www.janatabank-bd.com/jb7.htm, 2013), 2013)

Overseas Branches
Branch/Office Janata Bank Ltd. UAE Abu Dhabi BR AL-AIN BR DUBAI BR SHARJAH BR SWIFT Code JANBAEAA JANBAEAAAUH JANBAEAAALN JANBAEAADXB JANBAEAASHJ

((http://www.janatabank-bd.com/jb7.htm, 2013), 2013)

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4.9 DOCUMENTS USED IN FOREIGN EXCHANGE

There are some documents which are specially used in foreign exchange such as Bill Of Lading Proforma Invoice Commercial Invoice Packaging List Copy Of Foreign Exchange Message Letter Of Credit Authorization Fee Receipt Certificate Of Origin Of Country Foreign Currency Account Opening form Letter Of Authority For Operating Foreign Currency Account Under Wage Earners Scheme Foreign Currency Account Under Wage Earners Scheme Specimen Signature Card Login System

4.9.1 Bill Of Lading A document issued by a carrier, or its agent, to the shipper as a contract of carriage of goods. It is also a receipt for cargo accepted for transportation, and must be presented for taking delivery at the destination. (http://www.businessdictionary.com/definition/bill-of-lading-B-L.html, 2013)See figure 1.1

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4.9.2 Proforma Invoice A proforma invoice is a quote in an invoice format that may be required by the buyer to apply for an import license, contract for pre-shipment inspection, open a letter of credit or arrange for transfer of hard currency. A proforma may not be a required shipping document, but it can provide detailed information that buyers need in order to legally import the product. Proforma invoices basically contain much of the same information as the formal quotation, and in many cases can be used in place of one. It should give the buyer as much information about the order as possible so arrangements can be made efficiently. The invoices inform the buyer and the appropriate import government authorities details of the future shipment; changes should not be made without the buyers consent. (http://nhexportassistance.com/documents-forms/exportdocumentation-examples/doc_view/11-proforma-invoice, 2013) As mentioned for the quotation, the points to be included in the proforma are: 1. Sellers name and address 2. Buyers name and address 3. Buyers reference 4. Items quoted 5. Prices of items: per unit and extended totals 6. Weights and dimensions of quoted products 7. Discounts, if applicable 8. Terms of sale or Incoterm used (include delivery point) 9. Terms of payment 10. Estimated shipping date 11. Validity date See figure 1.2

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4.9.3 Commercial Invoice A commercial invoice form is used for all shipments containing non-documents. The commercial invoice is the primary document used for importation control, valuation, and duty determination. This document identifies the products being shipped.

The form should include:

Complete name and address information for both shipper and consignee Phone numbers for both shipper and consignee Terms of Sale (Incoterm) Reason for export A complete description of the item What is the item? What is the item used for? Harmonized Tariff Codes, if known Country of origin (where manufactured) for each commodity Number of units, unit value, and total value (purchase price) of each item Number of packages and total weight Shipper's signature and date (http://www.ups.com/content/us/en/shipping/international/documents/intl_forms/comm_in voice.html, 2013) See figure 1.3

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4.9.4 Packaging list Packing list is often used to show the information about order delivery. Generally packing list is known as shipping list and packing slip. Packing slip shows the number of items and kind of items on the behalf of the outside supplier and vendors to the clients/contractors. Packing slips are mostly used in term of large scale organizations. This particular document is prepared by the shipper who is responsible to monitor the process of shipping for timely delivery of order to the clients. Packing list is tagged on the container or trailer that is delivered to the customers. Other necessary details of transportation are also entered in packing list.

(http://www.msofficeguru.org/packing.html, 2013) See figure 1.4

4.9.5 Letter Of Credit Authorization This Letter of Credit - Authorization and Indemnity authorizes a bank to issue a letter of credit for a company. In exchange, the company indemnifies the bank for any payments which the company does not make under this letter of credit. This letter contains the name of the bank, name of the credit beneficiary and the identity of any security held by the bank in exchange for the letter of credit. It is important that this business transaction be clearly set out in writing. A written Letter of Credit with Authorization and Indemnity will prove valuable in the event the beneficiary defaults in their credit obligations or if litigations is filed.

This Letter of Credit - Authorization and Indemnity includes the following:

Parties: Names of bank issuing the letter and beneficiary under the letter of credit; Indemnity: Beneficiary indemnifies the bank for the payment of any obligations under this letter of credit;

Authorization: Beneficiary authorizes bank to debit its account in an agreed upon amount if account is outstanding;

Signature: This authorization and indemnification must be signed and dated by the beneficiary. (http://www.findlegalforms.com/product/letter-of-credit-authorization-and-

indemnity/, 2013) See figure 1.5

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4.9.6 Certificate Of Origin Of Country

A Certificate of Origin (often abbreviated to C/O or COO) is a document used in international trade. It is a printed form, completed by the exporter or its agent and certified by an issuing body, attesting that the goods in a particular export shipment have been wholly produced, manufactured or processed in a particular country. (http://en.wikipedia.org/wiki/Certificate_of_origin, 2013) See figure 1.6

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RECOMMENDATION
It is clear that the Janata Bank Limited Foreign Exchange department has ensured both quality and services which helps to improve the overall status of the Bank. Janata bank Limited has able to achieve second position in country and op position among public banks in export sector in 2013. For a greater achievement and attain more priority among the customers and clients JBL can walk through the way under some precision direction: JBL should approach more attractive facilities with clear go ahead. To survive in the cut throat competition JBL must step into launching ATM service as well as debit and credit card facilities. Insufficient number of exporter and importer is not enough to achieve the goal who operate through this bank. So JBL should offer more facilities to attract their clients. It is a crying need to provide more quality services to their clients in order to compete in the market. Total revival of investment of commodity in commercial sector JBL requires a very rapid and complete action to provide a more accurate and fast recycling of invest Less interesting export facilities should be proven improved. Finding out the newer destination of our export goods adjusted with the newer sectors customs. With successful promotional programs JBL can attract more people from this particular walk of life. The overall matter of foreign remittance should be driven under a complete computerized system having a main server country wide to keep up a congenial environment.

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CONCLUSION
Nearly boundary is seen while inspecting the Foreign Exchange Department of Janata Bank Ltd.s success. That means, this bank successfully finished last year with an appreciable performance .JBL attained first place in the last year among the government banks forts flawless completion of blending of solid quality and sincere service. For a greater achievement and attain more priority among the customers and clients JBL can walk through the way under some precision direction It is clear that the Janata Bank Limited Foreign Exchange department has ensured both quality and services which helps to improve the overall status of the Bank. For this reason Janata bank Limited has able to achieve second position in country and top position among public banks in export sector in 2012

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REFERENCE

1. (http://www.janatabank-bd.com/jb7.htm, 2013). (2013, 02 03). Retrieved 07 22, 2013, from www.janatabank-bd.com: www.janatabank-bd.com 2. http://en.wikipedia.org/wiki/Certificate_of_origin. (2013, 02 05). Retrieved 08 16, 2013, from en.wikipedia.org: en.wikipedia.org 3. http://nhexportassistance.com/documents-forms/export-documentationexamples/doc_view/11-proforma-invoice. (2013, 02 03). Retrieved 08 16, 2013, from www.nhexportassistance.com: www.nhexportassistance.com 4. http://www.businessdictionary.com/definition/bill-of-lading-B-L.html. (2013, 02 06).

Retrieved 08 19, 2013, from www.businessdictionary.com: www.businessdictionary.com 5. http://www.findlegalforms.com/product/letter-of-credit-authorization-and-indemnity/. (2013, 02 05). Retrieved 08 15, 2013, from www.findlegalforms.com:

www.findlegalforms.com 6. http://www.investopedia.com/terms/e/export.asp. (2013, 02 08). Retrieved 08 19, 2013, from www.investopedia.com: www.investopedia.com/ 7. http://www.janatabank-bd.com/jb1.htm. (2013, 07 1). Retrieved 07 01, 2013, from http://www.janatabank-bd.com: http://www.janatabank-bd.com 8. http://www.janatabank-bd.com/jb1.htm. (2013, 05 02). Retrieved 07 22, 2013, from www.janatabank-bd.com: www.janatabank-bd.com 9. http://www.janatabank-bd.com/jb5.htm. (2013, 01 02). Retrieved 07 05, 2013, from www.janatabank-bd.com: www.janatabank-bd.com 10. http://www.janatabank-bd.com/jb8.htm. (2013, 05 05). Retrieved 07 21, 2013, from www.janatabank-bd.com: www.janatabank-bd.com

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11. http://www.janatabank-bd.com/jb9.htm. (2013, 06 01). Retrieved 07 02, 2013, from www.janatabank-bd.com: www.janatabank-bd.com

12. http://www.janatabank-bd.com/jb9.htm. (2013, 05 04). Retrieved 07 25, 2013, from www.janatabank-bd.com: www.janatabank-bd.com 13. http://www.msofficeguru.org/packing.html. (2013, 02 05). Retrieved 08 22, 2013, from www.msofficeguru.org: www.msofficeguru.org 14. http://www.nfpl.net/pdf/procedure%20for%20import%20and%20export.pdf. (2012, 02 10). Retrieved 08 03, 2013, from ww.nfpl.net: ww.nfpl.net 15. http://www.nibusinessinfo.co.uk/content/exporting-and-other-ways-disposing-inwardprocessing-goods. (2012, 02 03). Retrieved 08 06, 2013, from www.nibusinessinfo.co.uk: www.nibusinessinfo.co.uk 16. http://www.preservearticles.com/2012012721683/what-are-the-functions-of-theforeign-exchange-market.html. (2012, 01 10). Retrieved 08 05, 2013, from

www.preservearticles.com: www.preservearticles.com 17. http://www.ups.com/content/us/en/shipping/international/documents/intl_forms/comm _invoice.html. (2013, 02 05). Retrieved 08 19, 2013, from www.ups.com: www.ups.com

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APPENDIX
WORK ACTIVITIES

Internship duration

23.07.2013 - 23.10.2013

My work activities at Janata Bank are listed below:

23.07.2013 24.07.2013 25.07.2013 28.07.2013 29.07.2013 30.07.2013 31.07.2013 01.08.2013 05.08.2013 06.08.2013 07.08.2013 15.08.2013 18.08.2013 19.08.2013 20.08.2013 21.08.2013 22.08.2013 24.08.2013 25.08.2013 .

Was acquainted with all the employees of the branch. Worked in the reception table. Worked in the reception table. Worked in the scroll table Worked in the Foreign Exchange table Worked in the scroll table Worked in the table of Pay Order writing Worked with the computer in charge. Worked in the Foreign Exchange table. Worked in the Foreign Exchange table. Worked in the scroll table. Worked in the reception table. Worked in the reception table Worked in the clearing table. Worked with computer in charge. Worked in the Foreign Exchange table. Worked in the Foreign Exchange table. Worked with computer in charge. Worked in the Foreign Exchange table.

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My duties in these tables

Table Name

Task Of The Table

Helping the customers to find the appropriate table. Reception Account opening Giving different forms To write down serial no., account no., amount in the scroll. All the deposit amounts are enlisted here before they are deposited. Pay Order Table: To help customers to write pay order forms To write pay order serial number. Working with him to understand the software functionality. Computer in charge To get the primary knowledge to write the report. To receive cross cheques, Clearing To classify the cross cheques whether they are of the Janata Bank or other banks.

Scroll

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FIGURE 1.1

Bill Of Lading

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FIGURE1.2 Proforma Invoice

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FIGURE1.3 Commercial Invoice

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FIGURE 1.4

Packaging List

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FIGURE 1.5

Letter Of Credit Authorization

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FIGURE1.6

Country Of Origin Certificate Page 61 of 65

FIGURE 1.7 Foreign Currency Account Opening form

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FIGURE 1.8

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FIGURE 1.9 Foreign Currency Account Under Wage Earners Scheme

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FIGURE1.10 Specimen Signature Card

FIGURE1.11 Login System Page 65 of 65