CHAPTER: ONE

INTRODUCTION
Background of the study
Executive Summary
Objective of the report
Scope of the report
Methodology or the report
Limitation of the study

1
Internship program is the systematic process for gathering, recording and
analying of data a!o"t the s"!#ect that a st"dent goes to learn on the program$
The aim of this Internship program is to connect practical %no&ledge &ith
theoretical %no&ledge$ No& the &orld is a competiti'e &orld$ (o e'ery!ody has to !e
e)pert in !oth practical %no&ledge and theoretical %no&ledge$
*"ring my &or%, I ha'e faced 'ario"s o!stacles$ +y the grace of Almighty Allah
and !y the help of some related person, I ha'e o'ercome those pro!lems s"ccessf"lly$
The sole aim of the Internship Program is to !lend o"r academic %no&ledge &ith that of
practical ones and gi'e "s an insight into the management of organiation in real life
sit"ations$ As a part of practical orientation program, I &as attached to Dutch-Bangla
Bank, Agra!ad +ranch for t&o months$
In +angladesh, *"tch +angla +an% ,td is the one of the leading firm in !an%ing ind"stry$
+an%ing ind"stry plays a great role in e'ery economy for de'elopment$ -inancial
instit"tions are the mirror of the economy$ (er'ice sectors ha'e great contri!"tion .a!o"t
/012034 on the 5*P of the de'eloped and de'eloping co"ntries$ In +angladesh &hich
are a!o"t /63$ As an 7+A st"dent, I m interested to %no& !an%ing acti'ities &hich has
so"nd impact in o"r 5*P$
On completion of the practical orientation program it s"pported me to prepare and s"!mit
a report of s"ch program$ The report comprises of the organiational o'er'ie&, operation
of +an%ing in the different section s"ch as 5eneral +an%ing, Foreign Trade/Exchange
and +riefly analysis the performance of the +an%$ -inally the report has !een concl"ded
&ith some recommendations$
This internship e)perience also lends a hand me to g"ess ind"stry, and economy at the
time of in'estment and performance analysis$ ("rely !eyond any do"!t, it enriches my
%no&ledge and promotes me e)perience as it is al&ays 8"oted that experience is the best
teacher.

9
1.1) Background of the eport
1.!) E"E#$T%&E '$(()*
+an%ing system of +angladesh has gone thro"gh three phases of de'elopment1
Nationaliation, Pri'atiation, and ,astly -inancial (ector Reform$ *"tch +angla +an%
,imited has started its #o"rney as a pri'ate commercial !an% on :"ne 0;, 122/$
<hile r"nning practical orientation &ith *"tch +angla +an% ,imited Agra!ad
+ranch, I &as placed in three 'ital departments$ These &ere:
5eneral !an%ing
Credit
-oreign e)change
5eneral !an%ing is the starting point of all the !an%ing operations$ It is the
department, &hich pro'ides day1to1day ser'ices to the c"stomers$ It opens ne&
acco"nts, remit f"nds, iss"e !an% drafts and pay orders etc$ Pro'ide c"stomer thro"gh
8"ic% and sincere ser'ice is the goal of the general !an%ing department$
+an% credit is an important catalyst for !ringing a!o"t economic de'elopment in a
co"ntry$ <itho"t ade8"ate finance, there can !e no gro&th or maintenance of a sta!le
economy$ *++, !eing one of the largest pri'ate commercial !an% of the co"ntry has
some pre#"dice to finance directly on priority !asis to agric"lt"re, ind"stry and
commerce sector for strengthening the economic !ase of the co"ntry$ Hence, it is 'ery
clear that, *++, +an% plays an important role to mo'e the economic &heel of the
co"ntry$ Pro'iding different sorts of credit and schemes li%e loan against imported
merchandise .,I74, Tr"st Receipt, +an% 5"arantee, Ind"strial ,oan, IT loan,
Cons"mer Credit scheme, Car ,oan, Ho"se -inance is the main spring of the credit
department$

;
Foreign exchange department plays significant roles thro"gh pro'iding different
ser'ices for the c"stomers$ ,etters of credit is the %ey player in the foreign e)change
!"siness$ <ith the glo!aliation of economies, international trade has !ecome 8"ite
competiti'e$ Timely payment for e)ports and 8"ic%er deli'ery of goods is, therefore,
a pre1re8"isite for s"ccessf"l international trade operations$ To ens"re this p"rpose
*++, transmit ,=C thro"gh (<I-T .(ociety for <orld&ide Inter !an% -inancial
Telecomm"nication4 to the ad'ising !an%$
*"tch +angla !an% ,td is pro'iding different sorts ,C ser'ices li%e ,=C opening,
lodgment, +ac% to !ac% ,C etc$ Foreign exchange department also pro'ide foreign
remittance lie TT, foreign demand draft, endorsement of >(? for passport$



@
1.3 Objective of the Report
Explicit +b,ecti-e.
o To satisfy the partial re8"irement of the internship program as a
co"rse of the 7$+$A program$
%/plicit +b,ecti-e.
o To "nderstand the !an%ing operation
o To ma%e easy to match me &ith the corporate en'ironment$
o To recognie !arriers of the !an%s
o To ma%e milestone for my career
o To %no& the !an%ing strategy of the *"tch +angla +an%
limited$
o To %no& a!o"t the f"nctions of Foreign exchange department
of
*++,$
1.0) 'cope of the eport
+an%ing is the ocean of acti'ities$ +"t in my little time, I ha'e tried to &or% in the general
!an%ing in specific category, and in foreign e)change section$ *"tch +angla +an% limited
Is the modern A ad'anced !an%er &ho pro'ides online !an%ing$ They pro'ide !an%ing
ser'ices thro"gh integrated !an%ing soft&are &hich s"pport all types of !an%ing
acti'ities$ It enco"raged me to "nderstand the *++, Information (ystem$ ,ast of all, this
report &ill represent the 5eneral +an%ing, -oreign E)change and 7anagement
Information (ystem$

6
1.5) Methodology of the Report
To ma%e this report I ha'e selected my architect"re$ According to architect"re, I installed
information in the follo&ing manner:
Data #ollection.
At first I ha'e gathered !oth primary and secondary data from the !an%ersB statements,
thro"gh personal inter'ie&$ I also gathered primary data from the *++, !an%ersB
disc"ssion$ To collect secondary data I ha'e "sed ann"al report, personal #"dgment,
'o"cher, article, #o"rnal, ne&spaper, Flexcube and so on$
)rchitecture.
After generating data I designed the o!tained information according to !oth descripti'e
and cas"al manner$ To represent the *++, !ased on o!tained information, I ha'e "sed
re8"ired ta!le, chart, pict"re, graph and so on$ ,ast of all, it is designed in se'eral
sections s"ch as general !an%ing, foreign e)change, Ind"stry and financial analysis etc$



/
1.6) LIMITATIONS OF THIS STUDY
There &ere some lac%ing &hile I cond"cting the orientation program$ A &holehearted
effort &as applied to cond"ct the orientation program and to !ring a relia!le and fr"itf"l
res"lt$ In spite of ha'ing the &holehearted effort, there e)it some limitations, &hich
acted as a !arrier to cond"ct the program$ The limitations &ere 111
-or the lac% of o"r practical %no&ledge, some shortcoming may !e a'aila!le in
the paper$
(ome data co"ld not !een collected for confidentiality or secrecy of the
management$
It is 'ery m"ch diffic"lt to collect data from other +an% !eca"se of strategic
p"rpose, so most of the time I ha'e to relay on &e! site and secondary data$
Only C &ee%s are not s"fficient to 'isit all the des%s in the !ranch$ (o some des%s
&ere remained "n'isited$ A fe& descriptions are gi'en on clearing section of the
!ranch !eca"se this section is 'isited only for 9 days$ (o graphical analysis has
!een done to meas"re the operational and locati'e efficiency of the !ranch
emphasiing on -oreign e)change department

D
CHAPTER: T<O
COMPANY OVERVIEW
*++, Concern
History of *++,
("rro"ndings
Eision and 7ission
Core o!#ecti'e
The +oard and its Committees
7anagement set "p
Prod"ct and ser'ice pro'ided !y *++,
Economic contri!"tion report
Highlights

C
2.1) DBBL Concern
F*>TCH1+AN5,A +ANG ,I7ITE*H
FTHE TRUSTED PARTNER OF THE CUSTOMERS
The !rand name IJo"r Tr"sted PartnerB associated &ith *++,Bs day1to1day operation$
*"tch1+angla +an% ,imited esta!lish this philosophy in their dealings &ith their
c"stomers, and offer them prod"ct and ser'ices that ass"re them to the essences of a
relationship of partnership !ased on tr"st and confidences, and "pholding and
maintaining m"t"ality of interests$ ,ea'ing its competitors !ehind, *++, has !een a!le
to ma%e steady progress in terms of !"siness gro&th, earning the confidence of its
c"stomers and a!o'e all creating a long listing image of yo"r !an% in all the spheres of
the society$ The !an% is in'ol'ed in all areas of commercial !an%ing operations,
comprising of trade finance, term finance, &or%ing capital finance and recently added
lease and real estate finance in its operation$ It also participates in syndicate finance to a
n"m!er of large pro#ects$

2
!.!) 1istor2 of DBB3
*"tch +angla +an% ,imited .*++,4 a p"!lic company limited !y shares, incorporated in
+angladesh in the year 1226 "nder companies Act 122@$ *++,1 a +angladesh E"ropean
pri'ate #oint 'ent"re sched"led commercial !an% commenced formal operation from :"ne
;, 122/$ The head office of the +an% is located at (ena%allayan +ha!an .@th floor4, 126,
7oti#heel C=A, *ha%a, +angladesh$
<ith ;03 e8"ity holding, the Netherlands *e'elopment -inance company .-7O4 of the
Netherlands is the international co1sponsor of the +an%$ O"t of the rest D03, /03 e8"ity
has !een pro'ided !y prominent local entreprene"rs and ind"strialists A the rest 103
shares is the p"!lic iss"e$ *"ring the initial operating year .122/1122D4 the !an% recei'ed
s%ill a"gmentation technical assistance from A+N Amro +an% of the Netherlands$
(tarting &ith one +ranch in 122/, *++, has e)panded to (i)ty fo"r !ranches A a!o"t
;60 AT7 +ooths $To pro'ide client ser'ices all o'er +angladesh it has esta!lished a
&ide correspondent !an%ing relationship &ith a n"m!er of local !an%s$ To facilitate
international trade transactions, it has arranged correspondent relationship &ith large
n"m!er of international !an%s that are acti'e across the glo!e$

10
!.4 ' urroundings
*"tch1+angla +an% ,imited is a +rainchild of -ormer chairman 7r$ 7ohammed
(aha!"ddin Ahmed$ He dreamed it long !ac%, &hen he had !een trying to arrange f"nd
for Tami#"ddin Te)tile 7ills ,imited .TT7,4 and Gader (ynthetic -i!ers ,imited
.G(-,4 thro"gh the traditional !an%ing system$ These pro#ects &ere implemented, !"t
had to face time and cost o'er r"n d"e mainly to the proced"ral delay in getting access to
credit facilities$
Among others, this might !e a good reason for thin%ing a!o"t a +an% &here in the
entreprene"rs &ill ha'e easy to access to modern !an%ing ser'ice$
7r$ Ahmed has close relationship &ith -7O, the Netherlands *e'elopment -inance Co$
since 12C;$ He, ho&e'er, opened dialog"e &ith -7O regarding the !an%ing pro#ect some
time in 12C2$ 7r$ 5roosman, a !rilliant officer of -7O .&ho s"!se8"ently faced an
immat"re death4 'isited +angladesh and &rote to 7r$ -$:$(mit, *ep"ty 7anaging
*irector, -7O ad'ocating 7r$ AhmedKs proposal$ -7O sent fact finding teams &ho
initially responded negati'ely and commented that there is little scope in +angladesh to
float a !an%ing !"siness$ +"t 7r$Ahmed did not lea'e the ideaL rather he started
e)ploring more 'igoro"sly$ At last 7r$ 7$E$H$:$ 5root of small1scale department of
-7O in his letter dated *ecem!er 0D, 1229 responded positi'ely indicating, M(mall
Enterprises *epartment of -7O is in a position to finance intermediary +an%M and
accordingly as%ed for a M+"siness PlanM$ In The Jear 1226, +angladesh +an% 'ides their
letter no$ *+O* .*4 900=621D22=26 *ated$ 9;$0D$1226 iss"ed consent for esta!lishing
the +an%$

11
!.0 &ision 5 (ission
The ethos A essence that manifest the dri'ing force for the +an%Bs progress as an
instit"tion par e)cellence to c"stomer satisfaction, state of the art prod"cts A ser'ices,
and competence and efficiency !ased on professionalism indeed$ The +an% has remained
dynamic in its contin"ed efforts to impro'e A increase core competence A ser'ice
efficiency !y constantly "pgrading prod"ct 8"ality, ser'ice standards, protocol and their
effecti'e participation ma%ing "se of state of the art technology$
5lo!al +an%ing has changed rapidly and *++, has &or%ed hard to adapt to these
changes$ The !an% loo%s for&ard &ith e)citement and a commitment to !ring greater
!enefits to c"stomers$
*++, dedicated their ser'ice to the Nation thro"gh acti'e financial participation in all
segments of the economy, Ind"stry, Trade A Commerce, Agric"lt"re, and (er'ice (ector
etc$ *++, is %eeping pace &ith the changing en'ironment$
<ith all harness together o"t strengths and p"tting o"r heads together in "nity of p"rpose,
*++, &ill reach Herc"lean heights in the domain that is its strong s"it1 +an%ing A
financial (er'ices$
!.6) #+E +B7E#T%&E
*"tch1+angla +an% !elie'es in its "ncompromising commitment to f"lfill its c"stomer
needs and satisfaction and to !ecome their first choice in !an%ing$ Ta%ing c"e from its
pool esteemed clientele, *"tch1+angla +an% intends to pa'e the &ay for a ne& era in
!an%ing that "pholds and epitomies its 'a"nted mar8"es MJo"r Tr"sted PartnerM$
!.8) The Board and its #o//ittees

19
The Board
Chairman
Mr. Abul Hasnat Md. Rashidul Islam
Directors
7r$ Naheed Hossain Ghan
7r$ +ernhard -rey : Nominee of Ecotrim Hong Gong ,imited
7r$ (haha!"ddin Ahmed : Elected from 5eneral (hareholdersB 5ro"p
7r$ 7d$ (hahid"r RahmanO
7r$ A!ed"r Rashid Ghan
7r$ (ayem AhmedOO
*r$ Irshad Gamal Ghan : Independent *irector
*r$ (yed -a%hr"l Ameen : *irector from the *epositors
7r$ Cho&dh"ry 7$ Ashraf Hossain : *irector from the *epositors
7r$ 7d$ Jeasin Ali : E)1officio *irector
The #o//ittees of the Board
1. Executi-e #o//ittee of the Board of Directors
7r$ A!ed"r Rashid Ghan : Chairman
7r$ A!"l Hasnat 7d$ Rashid"l Islam : 7em!er
7r$ Naheed Hossain Ghan : 7em!er
7r$ (haha!"ddin Ahmed : 7em!er
7r$ (ayem Ahmed : 7em!er
7r$ 7d$ Jeasin Ali : 7em!er
!. )udit #o//ittee of the Board of Directors
7r$ Naheed Hossain Ghan : Chairman
7r$ A!"l Hasnat 7d$ Rashid"l Islam : 7em!er
7r$ A!ed"r Rashid Ghan : 7em!er
7r$ (ayem Ahmed : 7em!er
*r$ Irshad Gamal Ghan : 7em!er
O7r$ 7d$ (hahid"r Rahman resigned and the resignation &as accepted !y the +oard in its
C/th meeting held on :an"ary 0D, 9002$
OO7r$ (ayem Ahmed &as appointed !y the +oard in its C/th meeting held on :an"ary 0D,
9002$

1;
2.7) Products and Services Provided by DBBL:
G!"#L B#!$%!G
G!"#L B#!$%!G
The concept +ANG is mostly applica!le in the 5eneral !an%ing acti'ities$ <ith no
general !an%ing !an% is impossi!le$ A preliminary acti'ity of the !an%ing is to open
acco"nt in the !an%$ Then !e comes deposit, &ithdra&al, transfer, ad'ance, iss"ance of
!an%ing tools and so on$ All these things are incl"ded in the 5eneral +an%ing$ +"t in
*"tch1+angla +an% ,imited, cash transaction and clearing transfer are considered as
other than general !an%ing di'ision$
5eneral +an%ing considers follo&ing ser'ices: 5eneral +an%ing considers follo&ing ser'ices:
5$ Acco"nt Opening
5$ -"nd Transfer
5$ Iss"ing Payment Order
5$ Iss"ing *emand *raft
5$ Iss"ing Telegraphic Transfer Payment Order
5$ Clearing Transfer
5$ In&ard A O"t&ard Remittance
5$ Cash Transaction$
5$ AT7 Cash$
9roducts

1@
)) Banking 9roduct
1) Deposit
(a'ings *eposit Acco"nt
C"rrent *eposit Acco"nt
(hort Term *eposit Acco"nt
Resident -oreign C"rrency *eposit
-oreign C"rrency *eposit
Con'erti!le Ta%a Acco"nt
Non1Con'erti!le Ta%a Acco"nt
E)porterKs -C *eposit.-+PAR4
C"rrent *eposit Acco"nt1+an%
(hort Term *eposit Acco"nt1+an%
!) 3oan 5 )d-ances
,ife ,ine .a complete series of personnel credit facility4 details
,oan agst$ Tr"st Receipt
Transport ,oan
Real Estate ,oan .Res$ A Comm$4
,oan Agst$ Accepted +ill
Ind"strial Term ,oan
Agric"lt"ral Term ,oan
,ease -inance
Other Term ,oan
-7O ,ocal c"rrency ,oan for (7E
-7O -oreign c"rrency ,oan
Cash Credit .Hypothecation4
(mall (hop -inancing (cheme
O'erdraft
b) etail Banking 9roducts

16
&DBB3 Future 3ine)
*++, *eposit Pl"s (cheme .*P(4
*++, Periodic +enefit (cheme .P+(4
*++, +ochore *erg"n (cheme .+*(4
*++, Children Ed"cation (a'ings (cheme .CHE((4
*++, Pension Pl"s .PP4
c) #ard 9roducts
DBB3 )T( 'er-ice
Dutch Bangla Bank Limited has introduced ATM service to its Customers. The
card will enable to save our valued customers rom an! kind o "redicament in
emergenc! situation and time consuming ormalities. DBBL ATM Card will give
our distinguished Clients the o""ortunit! to withdraw cash at an! time# even in
holida!s# $% hours a da!# & da!s a week.
DBB3-:E"$' #lassic #ard ;debit)
DBB3-:E"$' (aestro card ;debit)
DBB3-:E"$' &%') Electron card ;debit)
DBB3-:E"$' 'il-er +D card ;credit)
DBB3-:E"$' <old +D card ;credit)
d) %T 9roducts
+nline Banking.
*"tch +angla !an% ,td has selected all necessary items for tr"ly on1line !an%ing$ The
tr"ly on1line !an%ing officially ina"g"rated on ;
rd
:an"ary, 9006$ In this "ni8"e real1time,
any1&here, any1&ay !an%ingprogram of *++,, the 'al"ed c"stomers and tr"ested
partners &ill en#oy a f"ll range of modern !an%ing ser'ices at desired speed, a!sol"te
acc"racy and compititi'e price$


1/
)T( 5 9+'.
Features.
Acco"nt !alance en8"iry
Cash &ithdra&al P 9@ ho"rs a dey
7ini statement printing
(tatement re8"est
Pin Change
Re8"est for che8"e !oo%
-"nd transfer &ithin yo"r o&n acco"nts
Payments for mo!ile= TNT, gas, electricity, &ater, internet, crefit card !ills from
yo"r sa'ing and c"rrent acco"nt

E) %nternet Banking
The follo&ing are the Internet +an%ing -eat"res for *++,Bs Retail and Corporate
C"stomers:
)ccount 'u//ar2
The C"stomer &ill !e a!le to 'ie& the list of C"rrent, (a'ing, Term *eposit and
,oan acco"nts &ith the c"rrent !alance$
)ccount Details
The C"stomer can choose a partic"lar acco"nt and see the acco"nt details
incl"ding "nclear f"nd, limit, interest accr"ed etc$
)ccount )cti-it2
The c"stomer can see or print his transaction acti'ity in a gi'en acco"nt for a
partic"lar period$
Transfer Funds
The c"stomer can transfer f"nds from one of his acco"nts to another of his
acco"nts &ithin the !an%$

1D
Third 9art2 Transfer =
The c"stomer can transfer f"nds from one of his acco"nts to another c"stomerBs
acco"nt &ithin the !an%$
9a2 Bills
The c"stomer can pay his "tility !ill .li%e Electricity, <A(A, 5A(, Telephone,
7o!ile, I(P etc$4
'tanding %nstructions
The c"stomer can set"p, modify or delete standing instr"ctions for transferring
f"nd from one of his acco"nt to another acco"nt .his acco"nt or ;
rd
party4$
+pen/(odif2 Ter/ Deposit
The c"stomer can open a term deposit !y transferring f"nds from one of his
c"rrent or sa'ings acco"nts &ith the !an%$ He can also modify the T* and redeem
= part1redeem it$
3oan epa2/ents
The c"stomer can ma%e payment of the loan installment from his CA(A acco"nt$
'tate/ent e>uest
The c"stomer can ma%e a re8"est for acco"nt statement for a re8"ired period$ The
!an% &ill man"ally ser'ice this re8"est$
#he>ue Book e>uest
The c"stomer can ma%e a re8"est for a Che8"e !oo%$
#he>ue 'tatus %n>uir2
The c"stomer can choose an acco"nt and enter the Che8"e n"m!er for &hich the
stat"s sho"ld !e 'ie&ed$
'top 9a2/ent #he>ue
The c"stomer can mar% his Che8"e leaf as stop payment$
%nterest ate %n>uir2
The c"stomer can 8"ery on the interest rates on CA(A A Term *eposit Prod"cts$

1C
Foreign Exchange ate %n>uir2
The c"stomer can 8"ery on the -oreign E)change .-Q4 Rates "sing this f"nction$
efill 9re-9aid #ard
The c"stomer can !"y a refill n"m!er for his pre1paid mo!ile phone or I(P lin%$
#hange 9ass?ord
The c"stomer can change his Internet +an%ing Pass&ord "sing this f"nction$
Extra Features for #orporate #usto/er
3etter of #redit
The c"stomer can initiate the ,C application thro"gh Internet +an%ing$
Bank <uarantee
The c"stomer can initiate the +an% 5"arantee thro"gh Internet +an%ing$
3i/its @uer2
The c"stomer can 'ie& his ,oan ,imits and ,imits >tiliation thro"gh Internet
+an%ing$
F) '(' 5 )lert Banking
<) Aestern $nion (one2 Transfer
:oining &ith the &orldKs largest money transfer ser'ice M<estern >nionM, N+, has
introd"ced +angladesh to the faster trac% of money remittance$ No& money transfer
!et&een +angladesh and any other part of the glo!e is safer and faster than e'er !efore$
This simple transfer system, !eing on line eliminates the comple) process and ma%es it
easy and con'enient for !oth the sender and the recei'er$ Thro"gh N+, 1 <estern >nion
7oney Transfer (er'ice, c"stomersB money &ill reach its destination &ithin a fe&
min"tes$):D )3'+ E)press 7oney ,>AE E)change &hich ena!le people to get in&ard
remittances from e'ery corner of glo!e incl"ded in *++, ser'ices$

12
2.') conomic contribution re(ort
(a'ings, in'estments, employment generation, prod"ctions, distri!"tion and
cons"mptions are essential part of any economic system$ The +an% !eing a financial
intermediary plays a significant role in this process !y mo!iliing sa'ings A other
reso"rces, allocating s"ch reso"rces to prod"cti'e in'estments, local A international
trades and cons"mptions$ In the process the +an% is directly or indirectly accelerating
economic acti'ities A gro&th$ +y offering its "ni8"e prod"cts A ser'ices the +an% is
engaged in ma)imiing sa'ings, in'estments, prod"ctions, trading, employment,
cons"mptions etc$ to ma)imie economic gro&th and &elfare of the society$ Therefore,
!an%ing company is holding a %ey position in economic and social de'elopment of a
co"ntry$
The +an% is a corporate citien$ It can not act on its o&n &itho"t its sta%eholders$ The
sta%eholders as a &hole help, direct and monitor the +an% to perform its operations in an
effecti'e &ay to create and ma)imie 'al"e for the economy and society$
(hareholders pro'ide the 'ital e8"ity capital, depositors A lenders p"t their money in the
+an%, !orro&ers ta%e the credits for prod"ction, trading or cons"mptions, employees p"t
their ser'ices to ser'e the c"stomers, and go'ernment, +angladesh +an% and (ec"rities
and E)change Commission pro'ide legal A reg"latory frame&or%, infrastr"ct"re,
economic A !"siness en'ironment etc to ens"re smooth operations of !an%ing acti'ities
&ith transparency and acco"nta!ility$
<ith the s"pport A reso"rces from 'ario"s sta%eholders, *++, cond"cts its !"sinesses
to pro'ide ser'ices to the c"stomers and society at large and in the process creates and
ma)imies 'al"e for all its sta%eholders in a fair, transparent and ethical &ay$
7a)imiation of profit can not !e the only o!#ecti'e of the +an%, rather ma)imiing
!enefits A 'al"e for all sta%eholders in a fair and !alanced &ay there!y ma)imiing
&elfare of the economy A society as a &hole is the o!#ecti'e of *++,$ Ho&e'er, profit
is also important to gi'e satisfactory ret"rns to all the sta%eholders and to ens"re
s"staina!le operations, gro&th and long term sol'ency of the +an% &hich in t"rns ena!le
the +an% to contri!"te in a greater &ay to the economy A society$
As *++, is dependent on its sta%eholders to contin"e its operation and &ealth creation
acti'ities, therefore, &ealth created !y the +an% is also distri!"ted to its 'ario"s
sta%eholders$ (hareholders get di'idends, depositors get interest, employees recei'e
salaries and go'ernment gets ta), EAT etc$
2.10

90

91
1ighlights on the o-erall acti-ities of the Bank for the 2ears !BBC and !BBD

99
%!D)ST"* #!#L*S%S %!D)ST"* #!#L*S%S
i-alr2 a/ong existing fir/s.
+an%ing ind"stry is gro&ing rapidly$ At present there are more than 60 national,
pri'ate, foreign A specialied !an%s in +angladesh and there are still "n1tapped
c"stomers in this ind"stry$ (o, price &ar is still not 'ery destr"cti'e$ +an%s can
gro& &itho"t gra!!ing others mar%et share$
Tho"gh the NC+Bs acco"nt for most of the acti'ities in the ind"stry, PC+Bs A
foreign !an%s are increasing their shares$ Their mar%et is 'ery m"ch fragmented
and their target c"stomers are also from the same gro"p$ 7oreo'er, all the
NC+Bs are going to !e PC+Bs 'ery soon$ (o, in f"t"re there might !e destr"cti'e
price &ars$
There is a lo& degree of differentiation among the ser'ice pro'ided !y the
!an%s$ Only the foreign !an%s and some pri'ate !an%s pro'ide some special
ser'ices$ (&itching cost is also not 'ery high$ (o, in these respect there might !e
price &ars in f"t"re$
(o, it can !e concl"ded that ri'alry among firms is still not 'ery high !"t the ind"stry
is getting competiti'e day !y day$
Threat of ne? entrance.
-irst mo'ers ad'antage in +an%ing ind"stry is not that m"ch significant$
The process to enter this ind"stry is not 'ery complicated$ +ans need some
.aro"nd 100 million4 capital to start its operation &hich made the entry little
to"gher$
,egal !arriers regarding entry and e)it are not that high$

9;
Tho"gh, process of entry has !ecome to"gher than earlier, still, it is fairly easy$ It is
e)pected that ne& firms &ill #oin this ind"stry and degree off competition &ill
increase$
Threat of substitute.
(a'ings and depository instit"tions, ins"rance companies, leasing companies
and N5OBs are alternati'e ser'ice pro'ider of !an%s$ They pro'ide similar %ind
of acti'ities to some e)tend$
Ho&e'er, their n"m!er and sie are 'ery small$ They capt"re a 'ery small
portion of the total mar%et$
Threat of s"!stit"te from other instit"tions is 8"ite lo& for !an%ing ind"stry$ It is
li%ely that competition &ill arise &ithin the ind"stry that is from other !an%s$
Bargaining po?er of bu2ers.
+yers or c"stomers are price sensiti'e to some e)tend$ +"t getting credit at the
right time is 'ery important for them$ To ens"re that they might go for !etter
!an%s and afford higher ser'ice charges$
The n"m!er of !"yers &ho !orro&s a lot and "se !an%ing ser'ices are still fe&
in n"m!er$ (o, they ha'e strong !argaining po&er !eca"se n"m!ers of !an%s are
large in n"m!er$
Ho&e'er, d"e to the s"ccess in (7E sector c"stomers of good !an%s are 8"ite
large in n"m!er$
(o, it can !e said that !argaining po&er of selected c"stomers is 8"ite high !"t o'erall
!argaining po&er is moderate and !an%s can e)tract relati'ely high price in f"t"re as
&ell$
Bargaining po?er of suppliers.
The main s"ppliers of f"nd for !an%s are its c"stomers$
N"m!ers of c"stomers are 8"iet high and no& they ha'e the option to choose
among many !an%s$ (o, their !argaining po&er has increased$
Tho"gh the !argaining po&er of !"yers has increased, still a relati'ely higher profit
can !e o!taina!le$

9@
Considering the o'erall condition of the !an%ing ind"stry it can !e said that the
degree of competition among the !an%s is moderate and this competition is li%ely to
increase$ +argaining po&er of !"yers and s"ppliers are in s"ch a sit"ation that
ens"res that !an%s can still earn s"!stantial amo"nt of profit$

'A+T ):)3*'%'
Stren+th
(atisfactory asset 8"ality
5ood internal capital generation
(atisfactory operating efficiency
*i'ersified prod"ct lines
,o& h"man reso"rce t"rno'er
E)perienced 7anagement team
,ea-nesses
,imited mar%et share
*ependency on Term *eposit
7oderate 7I(
High cost of f"nd
7oderate corporate go'ernance
.((ortunities
In'estment in (7E
+asel1II compliance for capital
ade8"acy
Creation of !rand image
*"al c"rrency credit card
ON line prod"cts A ser'ices
Threats
Increasing cost of f"nd
7ar%et press"re for increasing the
(,R
Implementation of +asel1II
Increased 7ar%et competition
Prod"ct Ris%$

96
Cha(ter /0
1orei+n 2chan+e
&Literature "evie3 4 DBBL Per5ormance)
4.1Foreign exchange
4.2. Foreign exchange mechanism
4.3. Functions of Foreign exchange division of
DBBL
4.4. Local regulation of Foreign exchange
4.5. International regulations for Foreign exchange
4.6. Letter of credit and its t!e
4.". #ccounting !rocedures in case of L$% o!ening
4.&. 'arties to a L$%
4.(. )ome im!ortant documents of L$%
4.1*. Im!ort+ Im!ort !rocedures and #ccounting
treatment
4.11. Im!ort !erformance of DBBL
4.12. ,x!ort
4.13. Formalities for ex!ort L$% and accounting
treatment

9/
4.14. ,x!ort !erformance of DBBL com!ared to
other -an.s
4.15. Bac. to -ac. L$%
4.16. Foreign /emittance de!artment
4.1". 0he ris. involved in Foreign exchange
Busines
0.1) 1."%G! 6C7#!G
The term foreign e)change has different connotations in different conte)ts$ (ometimes it
is referred to as the process of con'ersion of one c"rrency into another, sometimes as the
process of transferring money from one co"ntry to another$ In +angladesh it has a legal
definition too$ in terms of section 9.d4 of the -$E$R Act,12@D, as adapted in +angladesh,
Kforeign e)changeK means foreign c"rrency and incl"des instr"ments e)pressed in foreign
e)change , all deposits credits, and !alances paya!le in foreign c"rrency as &ell as
foreign c"rrency instr"ments s"ch as draft, tc, !ills of e)change, promissory note and
letter of credit paya!le in any foreign c"rrency$ +angladesh earns foreign e)change
mainly thro"gh e)port of goods and ser'ices$ -oreign e)change !"siness has !een
identified as one of the %ey areas for de'elopment of the !an%s !"siness$
-oreign e)change is the mechanism !y &hich the c"rrency of one co"ntry gets con'erted
into the c"rrency to another co"ntry$
-oreign C"rrency is any c"rrency other than domestic c"rrency i$e$ in case of +angladesh
>( *ollar, Po"nd (terling, *$7$ :apanese Jen etc$
No co"ntry is self s"fficient in this &orld$ E'eryone is more or less dependent on another,
for goods or ser'ices$

9D
4.!) Foreign Exchange (echanis/
O R

9C
+>JER=
I7PORTER
(E,,ER=
EQPORTER=
+ENE-ICIARJ
I((>IN5 +ANG
,=C OPENNIN5 +ANG
A*EI(IN5 +ANG
CON-IR7IN5 +ANG
NE5OTIATIN5 +ANG
PAJIN5 = REI7+>R(IN5 +ANG
IN*ENTOR
Iss"ing ,=C
-or&ards *oc"ments
7a%es payment
(ales= p"rchase Contract
7
a
%
e
s

P
a
y
m
e
n
t
P
r
e
s
e
n
t

d
o
c
"
m
e
n
t
s
P
a
y

o
r

R
e
i
m
!
"
r
s
e
s
I
n
s
t
r
"
c
t
s

t
o

p
a
y

o
r

R
e
i
m
!
"
r
s
e
A
p
p
l
i
c
a
t
i
o
n

f
o
r

o
p
e
n
i
n
g

,
=
C
7
a
%
e
s

P
a
y
m
e
n
t

a
g
a
i
n
s
t

d
o
c
"
m
e
n
t
s
(
"
!
m
i
t
s

d
o
c
"
m
e
n
t
s
A
d
'
i
s
e
s

o
r

c
o
n
f
i
r
m
s

,
=
C
(o"rces: International Trade -inance 1 :o"rnal, .Page 1 ;04
+angladesh Instit"te of +an% 7anage 7anagement
4.4) F$:#T%+:' +F F+E%<: E"#1):<E DE9)T(E:T +F DBB3.
,=C opening A ,=C amendment
(anctioning PA*, ,I7, ,TR, Pac%ing Credit
-oreign +ill P"rchase
,ocal +ill P"rchase
-oreign C"rrency Acco"nt 7aintaining
-oreign C"rrency Remitting
4.0) 3ocal regulation of Foreign Exchange
In +angladesh foreign e)change transactions are !eing controlled !y the some local r"les$
These are:
-oreign e)change reg"lation act 12@D$
+angladesh +an% iss"es -oreign e)change circ"lar from time to time to
control the e)port, import and remittance !"siness$
7inisteries of commerce iss"es e)port and import policy gi'ing !asic
formalities for import and e)port !"siness$
(ometimes CCI and E iss"es p"!lic notice for any %ind of change in
foreign e)change transaction

92
+angladesh !an% p"!lished t&o 'ol"mes in 122/$ This is compilation of
the instr"ction to !e folo&ed !y the a"thorised dealers in transitions relation to
foreign e)change$
4.6) %nternational egulation for foreign exchange
There are some international organiations infl"encing o"r foreign e)change tranctions$
These are:
International chem!er of commerce .ICC4 is a &orld &ide non1
go'ernmental organiation of tho"sands of companie$ It &as fo"nded in 1212$
ICC has iss"ed some p"!lications li%e >CP*C, >RC, and >RR etc, &hich are
!eing follo&ed !y all the mem!er co"ntries$ There is also an international co"rt of
ar!itration to sol'e the international !"siness disp"tes$
<orld trade Organiation.<TO4 is another international trade
organiation esta!lished in 1226$ 5eneral agreement on Tariff and Trade .5ATT4
&as esta!lished in 12@C, after completion of itKs Cth ro"nd the orgination has !een
a!olished and replaced !y <TO$ This organiation has role in international trade,
thro"gh its 19@ mem!er co"ntries$
4.8) 3etter +f #redit ;3/#)
,etter of Credit .,=C4 is a payment g"arantee to the seller !y the !"yerBs !an%$ It is in
fact, a Irre'oca!le Credit Contract &here!y the !"yerBs !an% is committed .on !ehalf of
the !"yer4 to place an agreed amo"nt of money at the sellerBs disposal claiCmed !y the

;0
negotiating on a partic"lar date "nder some agreed conditions$ If the conditions of the
credit do not re8"ire for presentation of specified doc"ments, it is called Clean Credit$ On
the contrary, if the presentation of specified doc"ments is o!ligatory, the credit is called a
*oc"mentary Credit$
+"yers and sellers enter into contracts for !"ying and selling goods= ser'ices and the
!"yer instr"cts his !an% to iss"e ,=C in fa'o"r of the seller$ Here !an% ass"mes fid"ciary
f"nction !et&een the !"yer and seller$
.(erationa8 Procedure o5 L9C in 2(ort 4 %m(ort Business :


Pro5orma invoice.

Contract.

Indentor's indent.

2(orter.
(r
su""lier.
Beneiciar!.
%m(orter.
L)C o"ener.
(r a""licant.
;1
3/# Trans/itting.
L)C is send to advising bank in three
co"ies. The advising bank authenticates
the original co"! o L)C and delivers it to
the e*"orter through Tele*# Courier or
+,I-T .+ociet! or ,orldwide Inter/
bank -inancial Telecommunication0. The
du"licate co"! is ke"t with the advising
bank.
Shi(ment the
+oods.



Issuing Bank
This bank will deal with L)C
or the bu!er against su""lier
1 through the L)C advising
Bank.
!e+otiatin+ Ban-.
This bank negotiates
with issuing bank in
avor o e*"orter or the
bill and "a!s the
amount to the e*"orter.
"eimbursement Ban-
This bank deals with
"a!ment in avor o issuing
bank
#dvisin+ Ban-.
This bank will deal with
the e*"orter1 inorm the
su""lier that a L)C came
rom the bu!er.
;9
T2pes of letter of #redit
,etter of Credits may !e either:
.i0 Re'oca!le
.ii0 Irre'oca!le$
Also There are special types of ,etter of Credit .,=C4
Transferra!le ,=C
Red cla"se ,=C
5reen cla"se ,=C
+ac%1to1!ac% ,=C
Re'ol'ing ,=C
e-ocable credit
A re'oca!le credit is a credit that can !e amended or cancelled !y the iss"ing !an% at
any time &itho"t prior notice to the seller$
In case of seller (beneficiary), revocable credit involves risk, as the credit may be
amended or cancelled while the goods are in transit and before the
documents are presented, or although presented before payments has
been made. The seller would then face the problem of obtaining payment
on the other hand revocable credit gives the buyer maximum flexibility, as it
can be amended or cancelled without prior notice to the seller up to the
moment of payment buy the issuing bank at which the issuing bank has
made the credit available. In the modern banking the use of revocable
credit is not widespread.

;;
%rre-ocable credit
An irre'oca!le credit constit"tes a definite "nderta%ing of the iss"ing !an% .since it can
not !e amended or cancelled &itho"t the agreement of all parties thereto4, pro'ided that
the stip"lated doc"ments are presented and the terms and conditions are satisfied !y the
seller$ This sort of credit is al&ays preferred to re'oca!le letter of credit$
'o/eti/es, ,etter of Credits are mar%ed as either I&ith reco"rse to dra&erB or I&itho"t
reco"rse to dra&erB$
s
e-ol-ing #redit
<hich pro'ides for restoring the credit to the original amo"nt after it has !een "tilied$
Transferrable credit
If the &ord KTransfera!leK incorporated in an ,=C, then the ,=C is transfera!le$ The first
!eneficiary can transfer transfera!le ,=C to second !eneficiary$ +"t second !eneficiary
can not transfer it f"rther to another !eneficiary$
Back-To-Back 3/#
The +ac%1To1+ac% ,=C is a ne& credit opened on the !ases of an original credit fa'or
of other !eneficiary "nder this concept the seller of the first credit offers it as sec"rity to
the ad'ising !an% for the ass"rance of the second credit$ The !eneficiary of the +ac%1to1
!ac% credit may !e located inside or o"tside the original !eneficiaryKs co"ntry$
4.D) )ccounting 9rocedure in case of 3/# +pening
<hen the officer thin%s fit the application to open a ,=C, gi'ing the follo&ing entries1
creates the follo&ing charges1

;@
(ho&ing acco"nting treatment at the time of ,=C opening
9articulars Debit/ #redit #harges in Taka
C"stomerBs A=C *e!it
,=C 7argin A=C Credit Commonly 101;03
Commission A=C on ,=C Credit 0$63
EAT Credit 163 on commission
(<I-T Charge Credit ;600=R
-oreign Co"rier Charge .-CC4 Credit 1000=R
(tamp Credit 160=R
(ec"rities and Printing Credit 900=R
4.C) 9arties to a letter of #redit
The parties are.
S The Iss"ing +an% = Opening +an%
S The Confirming +an%, if any, and
E The +eneficiary = (eller = E)porter
+ther parties that facilitate the Docu/entar2 #redit are
2 The Applicant= +"yer= Importer
$ The Ad'ising +an% = Notifing +an%
3 The Nominated Paying= Accepting +an%,
% Negotiating +an%
4 Re1im!"rsing +an%= Paying And
5 The Transferring +an%, if any
). )993%#):T

;6
The person or !ody .c"stomer Of the !an%4 &ho re8"ests the !an% .opening !an%4 to
iss"e letter of credit$ The importer or !"yer is the applicant of a letter of credit$ Applicant
m"st !e the client %of the iss"ing !an%$
B. +9E:%:< B):F / %''$%:< B):F
The !an% that opens=iss"es letter of credit on !ehalf of the applicant=importer$
#. )D&%'%:< B):F/ :+T%F*%:< B):F
The !an% thro"gh &hich the ,=C I( ad'ised to the !eneficiary .e)porter4$
D. E"9+TE/ 'E33E/ BE:EF%#%)*
+eneficiary of the ,=C is the party in &hose fa'o"r the letter of credit is iss"ed$ >s"ally
they are the seller or e)porter$
E. #+:F%(%:< B):F
The !an%, &hich "nder instr"ction in the letter of credit, adds their irre'oca!le
"nderta%ing to that of the iss"ing !an%$ It is done at the re8"est of the iss"ing !an% ha'ing
arrangement &ith them$ The confirmation constit"tes a definite "nderta%ing on the part of
confirming !an% in addition to that of iss"ing !an%$
F. :E<+T%)T%:< B):F
The !an% that negotiates doc"ment and pays the amo"nt to the !eneficiary &hen
presented complying credit terms$ If the negotiation of the doc"ments is not restricted to
a partic"lar !an% in the ,=C, normally negotiating !an% is the !an%er of the !eneficiary$
<. E%(B$'%:< / 9)*%:< B):F

;/
The !an% nominated in the credit !y the iss"ing !an% to ma%e payment against stip"lated
doc"ments, complying &ith the credit terms$ Normally iss"ing !an% maintains acco"nt
&ith the reim!"rsing !an%$
4.G) :E#E''%T* +F 3/# F+ %(9+T%:< <++D'
An importer can p"rchase the goods directly "p to the limit >*? 6,000 from the e)porter
&itho"t opening a ,=C thro"gh +an% *raft$ -or releasing the goods from the c"stom
a"thority !y the importer, !an% &ill certify$
4.1B) '+(E %(9+T):T D+#$(E:T' +F 3/#
For?arding.
-or&arding is the letter gi'en !y the ad'ising !an% to the iss"ing !an%$ (e'eral copies
are sent to the iss"ing !an%$ All copies incl"ding original sho"ld !e %ept in the !an%$
Bill of Exchange.
According to the section 06, Negotia!le Instr"ments .NI4 Act11CC1, A F!ill of e)changeH
is an instr"ment in &riting containing an "nconditional order signed !y the ma%er,
directing a certain person to pay Ton demand or at fi)ed or determina!le f"t"re timeU a
certain s"m of money only to or to the order of a certain person or to the !earer of the
instr"ment$ It may !e either at sight or certain day sight$ At sight means ma%ing payment
&hene'er doc"ments &ill reach in the iss"ing !an%$
%n-oice.
In'oice is the price list along&ith 8"antities$ (e'eral copies of in'oice are gi'en$ T&o
copies sho"ld !e gi'en to the client and the other copies sho"ld !e %ept in the !an%$ If
there is only one copy, then its photocopy sho"ld !e %ept in the !an% and the original
copy sho"ld !e gi'en to the client$ If any original in'oice contains the c"stomBs seal, then
it cannot !e gi'en to the client$
9acking 3ist.

;D
Pac%ing list is the letter descri!ing the n"m!er of pac%ets and there sie$ If there are
se'eral copies, then t&o copies sho"ld !e gi'en to the client and the remaining sho"ld !e
%ept in the !an%$ +"t if there is only one copy, then the photocopy sho"ld !e %ept in the
!an% and the original copy sho"ld !e gi'en to the client$
Bill of 3ading.
+ill of ,ading is the !ill gi'en !y shipping company to the client$ Only one copy of +ill
of ,ading sho"ld !e gi'en to the client and the remaining copy sho"ld !e %ept in the
!an%$
#ertificate of +rigin.
Certificate of origin is a doc"ment descri!ing the prod"cing co"ntry of the goods$ One
copy of the certificate of origin sho"ld !e gi'en to the client and the remaining copy
sho"ld !e %ept in the !an%$ +"t if there is only one copy, then the photocopy sho"ld !e
%ept in the !an% and the original sho"ld !e gi'en to the client$
'hip/ent )d-ice.
The copy mentioning the name of the ins"rance company sho"ld !e gi'en to the client
and the remaining copies sho"ld !e %ept in the !an%$ +"t if only one copy is gi'en, then
the photocopy sho"ld !e %ept in the !an% and the original copy sho"ld !e gi'en to the
!an%$
%nco-Ter/s.
Inco1Terms simply mean International Commercial Terms$ These are also %no&n as
Contract Terms or Trade Terms or *eli'ery Terms or (ales Terms Or P"rchase Terms$
These are "sed in the field of international trade or foreign trade$
:ostro )ccount.

;C
The foreign c"rrency acco"nt maintained !y the a"thorised dealers in foreign e)change
&ith the foreign !an%s= correspondents are called Nostro Acco"nts$ All foreign e)change
transactions are ro"ted thro"gh nostro acco"nts$ Nostro Acco"nt means Ko"r acco"nt &ith
yo"K$
&ostro )ccount.
C"rrent Acco"nts of foreign !an%s &ith their correspondents in the latter,s c"rrency is
called Eostro Acco"nts$ Eostro acco"nt means Kyo"r acco"nt &ith "sK$
3oro )ccount.
,oro Acco"nts are c"rrent acco"nts &hich the !an%s maintain &ith !an%s a!road on
!ehalf of their clients$ ,oro Acco"nts means Ktheir acco"nt &ith yo
4.11) %(9+T
Imports are p"rchase of -oreign goods or ser'ices !y Cons"mers, -irms, Companies,
5o'ernment, (emi go'ernment Organisation in +angladesh$ It is an international trade$
%/port 9rocedure
An importer is re8"ired to ha'e the follo&ing formalities to import the goods thro"gh
*"tch1+angla +an% ,td$ P
2 An acco"nt &ith *++,$
$ Import Registration Certificate .IRC4
3 Ta) Paying Identification .TIN4 N"m!er
% Proforma In'oice= Indent
4 7em!ership Certificate
5 ,CA .,etter of Credit Application4 form d"ly attested
& One set of I7P -orm
6 Ins"rance Co'er note &ith money receipt
7 Others

;2
egulations behind %/port
Import of goods or ser'ices and payment there against are reg"lated !y +angladesh +an%
"nder -oreign E)change Reg"lation Act, 12@D, Import And E)port .controls4 Acts
%1260, Import Policy order iss"ed periodically !y the 7inistr of Commerce, P"!lic
Notices iss"ed time to time !y the office of the Chief Controller of Import And E)port
.CCIAE4 and >CP*C1600 ICC P"!lication .122;1Re'ision4$
%/porter
The person firm company &ho o!tain Import Reg"lation Cetificate .IRC4 from the CCI
and e s"!mitting the folloeing papers:
1$Ealid Trade ,icense
9$ Nationality Certificate
;$ asset Certificate
@$ Tin Certificate
6$ +an% (ol'ency Certificate
/$ 7emorand"m And Articles of association and certificate of incorporation .In case of
Company4
pro'ided the follo&ing persons=items are e)empted from Registration i$e$ IRC not
re8"ired for import$
1$ 5o'ernment *epartment
9$ ,ocal A"thorities and ("tonomo"s dodies
;$ Recognied Ed"cational Instit"ions
@$ Hospitals
6$ Import of goods for &hich no foreign e)change remittance is re8"ired$
/$ Reading materials or medicine imported for personal "se &ithin permissi!le limit as
allo&ed %in import Policy Order 122D19009$
There are t&o types of Importers:
Commrcial and
Ind"strial
E'ery Importer is iss"ed Category Pass !oo% !y the CCIAE$ The nominated !an% of the
Importer sho"ld maintain IRC APass !oo% register$

@0
Bank ?ill suppl2 the follo?ing docu/ents/papers.
,etter of credit application form
,etter of credit a"thoriation form
Import form
Charge doc"ments paper
Aith the abo-e essentials bank ?ill do the follo?ing.
,anded cost analysis
Present mar%et position of the goods to !e imported
Credit information !"rea" report from +angladesh +
The 3/# )pplication for i/port.
To open a ,=C the application m"st s"!mit an application to the !an%Ks printed format
called ,=C application form$ The application form m"st !e completed and filled in and
signed !y the a"thorised person of the importer gi'ing the follo&ing details$
-"ll name and address of the importer and e)porter
,=C 'al"e for >(*, &hich m"st not e)ceed the ,CA 'al"e
+rief description of the goods &ith its "nit price, 8"antity, 8"ality etc
Origin of the goods, port of destination, port of loading etc
7ode of ad'ising ,=C
Opening of ,=C "nder >CP*C p"!lished no 600 ICC re'ision 122;
,CA n"m!er
7ode of shipment
ins"rance co'er note
<hether shipment=Transshipment allo&ed
,ast date of shipment and negotiation
(pecial instr"ction if any

@1
3odg/ent of Docu/ents
,odgment means retirement of f"nds. >s"ally payment is made &ithin se'en days
after the doc"ments ha'e !een recei'ed. If the payment is !ecome deferred, the
negotiating !an% may claim interest for ma%ing delay. ,odgment constit"te the
follo&ings
a. e>uisition for the foreign currenc2. -or arranging necessary f"nd for
payment, a re8"isition is sent to the International *epartment.
b. 9reparing sale /e/o. A sale memo is made at +.C rate to the c"stomer.
As the T.T A O.* rate is paid to the I*, the difference !et&een these t&o rates is
e)change trading. -inally, an Inter +ranch E)change Trading Credit Ad'ice is
sent to I*.
c. #reation of 9)D liabilit2. P+, lodges the con'erted the !ill amo"nt at
+C .+ills Collection4 rate pre'ailing on the date of lodgment to PA* A=C and an
I+ETCA prepared at the con'erted !ill amo"nt at T.T clear rate is sent to I*.
PA* A=C sho"ld !e ad#"sted &ithin 91 days.
)ccounting Treat/ent.
PA* A=CVVVVVVVVVVVVVVV.VVVVV.. *r.
.Con'erted the !ill amo"nt at +C rate4
H.O. A=C 1111111111111111111111111111111111111111111111111111111111111Cr.
.Con'erted !ill amo"nt at T.T clear rate4
Income A=C profit on e)change 1111111111111111111111111111111111Cr.
.*ifference !et&een +.CAT.T clear rate4

@9
e-ersal Entries.
+an%erBs ,ia!ility 111111111111111111111111111111111111*r.
C"stomerBs ,ia!ility 111111111111111111111111111111111Cr.
.<hen lodgment is gi'en4
d. 9a2/ent instruction. Payment instr"ction is gi'en to the reim!"rsement
!an% to de!it the iss"ing !an%s. NO(TRO A=C to ma%e payment to the
negotiating !an%.
e. 9a2/ent %nti/ation to the :egotiating Bank. A Intimation is sent
negotiating !an% ens"ring that payment has !een made.
)ccounting Treat/ent
Then the tele) charge, ser'ice charge, and interest .if any4 are de!ited to the PA*
A=C.
PA* A=C11111111111111111111111111111111111111111111*r.
Income A=C11111111111111111111111111111111111111111Cr.
.(er'ice chargeA Tele) charge4
(hipping doc"ments is then stamped &ith PA* N"m!er A entered in the PA*
Register
5. %nti/ation to the applicant
As soon as a!o'e formalities are completed the importers are ser'ed &ith PA*
!ill intimations for retirement of concerned import doc"ment.
A letter of intimation regarding receipt of the doc"ments sho"ld !e sent to the
applicant &ith a re8"est to ta%e deli'ery of the doc"ments on settlement of all
d"es against it.

@;
etire/ent of Docu/ents.
On intimation the importer approaches &ith a letter for retirement of the doc"ment
against f"ll payment &ith "p to date interest and charges paya!le. +an% prepares cost
memo in printed form on acco"nt of the concerned party gi'ing details head of
charges paya!le.
)ccounting Treat/ent.
("ndry *eposit ,=C 7argin A=C111111111111111111111111111111111111*r.
PA* A=C11111111111111111111111111111111111111111111111111111111111111Cr.
.7argin amo"nt transferred to PA* A=C4
C"stomer A=C1111111111111111111111111111111111111111111111111111111*r.
PA* A=C 11111111111111111111111111111111111111111111111111111111111Cr.
Income A=C P interest on PA*111111111111111111111111111111111Cr.
.c"stomerBs acco"nt de!ited for the remaining amo"nt4
As far the 'o"chers are passed and necessary entries are gi'en in PA* ,edger
endorsements are made "nder t&o a"thoried signat"re of the !an%s officers .P.A.
Holder4. Then the doc"ments are deli'ered to the importer.
'ource of Finance.
Import may !e allo&ed "nder the follo&ing so"rces of finance:
.a0 Cash1
i$ cash foreign e)change .!alance of the foreign e)change reser'e of
+angladesh +an%4L
ii$ foreign c"rrency acco"nts maintained !y +angladeshi Nationals
&or%ing=li'ing a!road$
.b0 E)ternal economic aid Commodity e)change$

@@
%/port 9rocedure

@6
%m(ort: %n :i88ion Ta-a
8ame
9ear
TBL B. A+IA (8: B. M.T.B. D.B.B.L. ;.B.L
$<<3 3$& 2%445.22 762% 22$6%.%2 2&4%7.5< 2$4.$<
$<<% 64%$ 267%$.%< 24$44 2&344.7< $47&%.%% 2%%6.&&
$<<4 7&%5 $534$.3< 2&%34 2&55< $5<$7.<2 36<2.$2
$<<5 22%63 325$4.5< $25<2 $5$44.$7 3$<5&.&% &7$3.7<
$<<& 2&563.2& 37$26.&< $4233 $%655 3455&.&% 2$242.7<
The CHART "resents growth rate and "osition o DBBL b! com"aring with the
other "rivate bank on the basis o Im"ort
0.11) The 5o88o3in+ C.L): C7#"T re(resents the increasin+ im(ort o5
DBBL.

@/
2&4%7.5
$47&%.%%
$5<$7.<2
3$<5&.&%
3455&.&%
<=
$<=
%<=
5<=
6<=
2<<=
DBBL
%:P."T
$<<&
$<<5
$<<4
$<<%
$<<3
DBBL.MILLI(8
T>0
$<<3 2&44<
$<<% $47&%
$<<4 $5<$7
$<<5 3$<56
$<<& 34556
Com"arativel! all the banks Im"ort "rocessing increase more than 4< "ercent
rom its "revious !ear.

@D
4.1!) E"9+T
+angladesh e)ports a large 8"antity of goods and ser'ices to foreign ho"seholds.
Readymade te)tile garments .!oth %nitted and &o'en4, :"te, :"te1made prod"cts, froen
shrimps, tea are the main goods that +angladeshi e)porters e)ports to foreign co"ntries.
5arments sector is the largest sector that e)ports the lion share of the co"ntryKs e)port.
+angladesh e)ports most of its readymade garments prod"cts to >.(.A and E"ropean
Comm"nity .EC4 co"ntries. +angladesh e)ports a!o"t @03 of its readymade garments
prod"cts to >.(.A. 7ost of the e)porters &ho e)port thro"gh P+, are readymade
garment e)porters. They open e)port ,=Cs here to e)port their goods, &hich they open
against the import ,=Cs opened !y their foreign importers.
!.14) F+()3%T%E' F+ E"9+T 3/#
There are a n"m!er of formalities, &hich an e)porter has to f"lfill !efore and after
shipment of goods. These formalities or proced"res are en"merated as follo&s, 1
1. +btaining Export egistration #ertificate E#.
No e)porter is allo&ed to e)port any commodity permissi!le for e)port from
+angladesh "nless he is registered &ith Chief Controller of Imports and E)ports .CCI
A E4 and holds 'alid E)port Registration Certificate .ERC4. After applying to the
CCIAE in the prescri!ed from along &ith the necessary papers, concerned offices of
the Chief Controller of Imports and E)ports iss"es ERC. Once registered, e)porters
are to ma%e rene&al of ERC e'ery year.
2. 'ecuring the order.
After getting ERC, the e)porter may proceed to sec"re the e)port order. He can do
this !y contracting the !"yers directly thro"gh correspondence.

@C
0. +btaining E"9.
After ha'ing the registration, the e)porter applies to P+, &ith the trade license, ERC
and the Certificate from the concerned 5o'ernment Organiation to get EQP. If the
!an% is satisfied, an EQP is iss"ed to the e)porter.
;. 'igning of the contract.
After comm"nicating &ith !"yer the e)porter has to get contracted for e)porting
e)porta!le items from +angladesh detailing commodity, 8"antity, price, shipment,
ins"rance and mar%, inspection, ar!itration etc.
<. ecei-ing the 3etter of #redit.
After getting contract for sale, e)porter sho"ld as% the !"yer for ,etter of Credit
clearly stating terms and conditions of e)port and payment.
)fter recei-ing 3/#, the follo?ing points are to be looked for.
a. The terms of the ,=C are in conformity &ith those of the contract.
b. The ,=C is an irre'oca!le one, prefera!ly confirmed !y the ad'ising !an%.
c. The ,=C allo&s s"fficient time for shipment and a reasona!le time for
registration.
d. If the e)porter &ants the ,=C to !e transfera!le, di'isi!le and ad'isa!le, he
sho"ld ens"re those stip"lations are specially mentioned in the ,=C.
=. 9rocuring the /aterials.
After ma%ing the deal and on ha'ing the ,=C opened in his fa'or, the ne)t step for the
e)porter is to set a!o"t the tas% of proc"ring or man"fact"ring the contracted
merchandise.

@2
7. Endorse/ent on E"9
+efore the e)port forms are lodged !y the e)porters &ith the c"stoms=postal
a"thorities, they sho"ld get all the copies endorsed !y P+,. +efore shipment,
e)porter s"!mits e)p. form &ith commercial in'oice. Then P+, officer chec%s it
properly, if satisfied, certifies the e)p. <itho"t it e)porter he cannot ma%e shipment.
The c"stomer m"st declare all e)ports goods on the EQP iss"ed !y the a"thoried
dealers
Disposal of Export For/s.
a. +riginal: c"stoms a"thority reports first copy of EQP to +angladesh +an%
after shipment of the goods.
b. Duplicate. Negotiating !an% reports the *"plicate to +angladesh +an% in
or after negotiation date !"t not later than 1@ days from the date of shipment.
c. Triplicate. On realiation of e)port proceeds Triplicate is reported !y the
same !an% to the same a"thority.
d. @uadruplicate. -inally, the negotiating !an% as their office copy retains
W"adr"plicate
6. 'hip/ent of goods.E)porter ma%es shipment according to the terms and
condition of ,=C$
>. 9resentation of export docu/ents for negotiation.
After shipment, e)porter s"!mits the follo&ing doc"ments to P+, for negotiation.
a. +ill of E)change or *raftL
b. +ill of ,ading
c. In'oice
d. Ins"rance Policy=Certificate
e. Certificate of origin
. Inspection Certificate
g. Cons"lar In'oice
h. Pac%ing ,ist
i. W"ality Control Certificate
?. 5.(.P. certificate

60
#ash against Docu/ent ;#)D) #ontract
In lie" of e)port ,C e)port can also !e made against e)ec"tion of contract of sale and
p"rchase !et&een the !"yer and seller. >s"ally a CA* contract is made in case of
e)porting :"te goods.
There are some +angladesh :"te 7ills Corporation .+:7C4 enlisted intermediary
firms. They ma%e CA* contract &ith the importer. (ome intermediary firms the
client of P+,. After ma%ing contract, the intermediary firm .original e)porter4
p"rchases #"te from a #"te mill.
a. Commercial in'oice made !y the the #"te mill
b. +ill of e)change dra&n on e)porter paya!le to #"te mills !an%.a"thoried
that !an% as F pay to the order of P+,H4
c. 7ills specification
d. EQP form triplicate and 8"adr"plicate on &hich seal and signat"re of
a"thoried officer of the #"te millBs !an% is gi'en.
Along &ith these #"te mill doc"ments e)porter presents his o&n doc"ments, &hich
&ere re8"ired !y the CA* contract $
E)porter presents the doc"ments for negotiation to P+, and re8"est to remit the
amo"nt at &hich he p"rchased #"te from #"te mill to the #"te millBs !an% and credit the
rest to his acco"nt in P+,.
Exa/ination of Docu/ent .
+an%s deal &ith doc"ments only, not &ith commodity. As the negotiating !an% is
gi'ing the 'al"e !efore repatriation of the e)port proceeds it is ad'isa!le to to
scr"tinie and e)amine each and e'ery doc"ment &ith great care &hether any
discrepancy.s4 is o!ser'ed in the doc"ments. The !an%ers are to ascertain that the
doc"ments are strictly as per the terms of ,=C +efore negotiation of the e)port !ill.
+an% officers assigned for e)amining the e)port doc"ments may "se a chec%list for
their con'enience.

61
:egotiation of export docu/ents.
Negotiation stands for payment of 'al"e to the e)porter against the doc"ments
stip"lated in the ,XC. If doc"ments are in order, P+, p"rchases .negotiates4 the same
on the !asis of !an%er1 c"stomer relationship. This is %no&n as -oreign *oc"mentary
+ill P"rchase .-*+P4.
If the !an% is not satisfied &ith the doc"ments s"!mitted to P+, gi'es the e)porter
reasona!le time to remo'e the discrepancies or sends the doc"ments to ,=C opening
!an% for collection. This is %no&n as -oreign *oc"mentary +ill for Collection
.-*+C4
a. 9rocedure for FDB9.
i. After p"rchasing the doc"ments, *+, gi'es the follo&ing entries,
1
-*+P A=C 11111111111111111111111111111111111111111111111111*r.
. at O* sight rate4
C"stomer A=C 11111111111111111111111111111111111111111111111111111Cr.
.+efore realiation of proceeds4
+an% &o"ld realie only postage charges from the e)porter.
ii. ("!se8"ently, +an% &ill send the doc"ments to the ,=C opening
+an% for payment &ith a for&arding letter detailing the enclos"res. >pon
realiation of proceeds the Negotiating +an% &o"ld pass the follo&ing
'o"chers:
Head Office A=C1111111111111111111111111111111111111111111*r.
. at T.T Clean rate4
-*+P A=C111111111111111111111111111111111111111111111111111111111111Cr.
Income A=C Profit on E)change Trading11111111111111111111111Cr.
.Ad#"stment after realiation of proceeds4
iii. A -*+P Register is maintained for recording all the partic"lars.

69
b. Foreign docu/entar2 bills for collection ;FDB#).
E+, for&ards the doc"ments for collection d"e to the follo&ing reasons,1
2 If the doc"ments ha'e discrepancies.
$ If the e)porter is a ne& client.
3 The !an%er is in do"!t.
-*+C signifies that the e)porter &ill recei'e payment only &hen the iss"ing !an%
gi'es payment. P+, ma%e reg"lar follo&1"p &ith the ,=C opening +an% in case
of any delay in getting payment.
The e)porter s"!mits d"plicate EQP -orm and Commercial In'oice.
("!se8"ently, the 'al"e of the !ill is calc"lated and the follo&ing acco"nting
entries are gi'en, 1
Head Office A=C111111111111111111111111111111111111111111111111111*r. Y T.T Clean
ClientBs A=C11111111111111111111111111111111111111111111111111111111111111111111111111Cr. Y
O* sight
5o'ernment Ta) A=C111111111111111111111111111111111111111111111111111111111111111Cr. Y
0.10 3 of In'oice 'al"e
Postage A=C1111111111111111111111111111111111111111111111111111111111111111111111111Cr.
Income A=C profit on E)change1111111111111111111111111111111111111111111111111Cr.
After passing the a!o'e 'o"chers, an Inter +ranch E)change Trading *e!it
Ad'ice is sent for de!iting the NO(TRO acco"nt. An -*+C Register is
maintained, &here first entry is gi'en &hen the doc"ments are for&arded to the
iss"ing !an% for collection and the second one is done after realiation of the
proceeds.

6;
%n case of discrepancies of /inor nature, +an% may negotiate the doc"ments
depending on their confidence on the c"stomer against e)ec"tion of the ,etter of
Indemnity.
(+DE +F 9)*(E:T +F E"9+T B%33 $:DE 3/#.
As per >CP 600, 122; re'ision there are fo"r types of credit. These are as follo&s:
a. 'ight pa2/ent
b. Deferred pa2/ent
c. B2 acceptance
d. :egotiation
a. 'ight 9a2/ent #redit.
In a (ight Payment Credit, the !an% pays the stip"lated s"m immediately against the
e)porterBs presentation of the doc"ments.
b. Deferred pa2/ent #redit:
In deferred payment, the !an% agrees to pay on a specified f"t"re date or e'ent, after
presentation of the e)port doc"ments. No +ill of E)change is in'ol'ed. In P+,,
payment is gi'en to the party at the rate of *.A /0120119011C0 as the case may !e.
+"t the Head office is paid at T.T clean rate. The difference !et&een the t&o rates "s
the e)change trading for the !ranch.
c. )cceptance credit.
In acceptance credit, the e)porter presents a !ill of e)change paya!le to himself and
dra&n at the agreed tenor .that is, on a specified f"t"re date or e'ent4 on the !an% that
is to accept it. The !an% signs its acceptance on the !ill and ret"rns it to the e)porter.
The e)porter can then represent it for payment on mat"rity. Alternati'ely he can
disco"nt it in order to o!tain immediate payment.
d. :egotiation #redit:

6@
In Negotiation credit, the e)porter has to present a !ill of e)change paya!le to himself
in addition to other doc"ments, that the !an% negotiates.
2(ort Procedure

66
0.1;) 2(ort (er5ormance:
%n :i88ion Ta-a
8ame
9ear
TBL B. A+IA (8: B. M.T.B. D.B.B.L. ;.B.L
$<<3 $&52 4775.%6 4$23 3423.7$ &547.2& 7<.2$
$<<% $535 &2<3.4< 57&% 47$% 23462.&2 223$.62
$<<4 $722 23753.&< 22752 662< $$2%%.2& 3<56.42
$<<5 $66% 2&%6<.2< 2535< 2$7%3.$7 333%%.57 %&7<.6<
$<<& %$$% $<%2&.3< 27%23 26$6$ 3%<5<.$& 54$2.6<
8ow I "resent growth rate and "osition o TBL b! com"aring with the other
"rivate bank on the basis o :*"ort
?
<
1?
1<
2?
2<
0?
0<
;?
;<
<?
1st @tr 2nd @tr 0rd @tr ;th @tr
TBL
B. #S%#
.!
:TB
DBBL
ABL
on the above gra"h we see the com"arative "osition o TBL is satisactor!. Its
e*"ort "erormance will increase !ear to !ear. the "rocedure o e*"ort o TBL is
more @uicker. +o e*"orter is more interested to e*"ort through TBL.

6/
0.16) B)#F-T+-B)#F 3/#.
A +ac%1to1+ac% mechanism in'ol'es t&o separate ,=Cs. One is master E)port ,=C and
another is +ac%1to1+ac% ,=C. On the strength of 7aster E)port ,=C !an% iss"es !an% to
+ac% ,=C. +ac%1to1+ac% ,=C is commonly %no&n as +"ying ,=C. On the contrary,
7aster E)port ,=C is %no&n as (elling ,=C.
Features of back-to-back 3/#.
a. 1Is an Import ,=C to proc"re goods =ra& materials for f"rther processing.
b. 1Is opened !ased on E)port ,=C.
c. 1Is a %ind of E)port -inanceZ
d. 1E)port ,=C is at (ight !"t !ac% to +ac% ,=C is at >sance.
e. 1No margin is re8"ired to open +ac% to !ac% ,=C
#hecklist to open back-to-back 3/#.
a. Application is registered &ith CCIAE and has !onded &areho"se license.
b. The master ,=C has ade8"ate 'alidity period and has not defecti'e cla"se.
c. ,=C 'al"e shall not e)ceed the admissi!le percentage of net -O+ 'al"e of
relati'e 7aster ,=C.
d. >sance period &ill !e "p to 1C0 days.
'crutiniHation of /aster 3/#.
a. *efecti'e Points or Cla"ses appears in the 7aster ,=C:
b. Iss"ing !an% is not rep"ted
c. Ad'ising credit !y the ad'ising !an% &itho"t a"thentication.
d. Port of destination a!sent.
e. Inspection cla"se.
. Nomination of specific shipping=Air line or nomination of specified 'essel
!y s"!se8"ent amendment.

6D
g. +=, to !lan% endorses, to endorse to ;
rd
!an%, to !e endorsed to !"yer or
;
rd
party.
h. No specific reim!"rsing cla"se.
i. >CP cla"se not mentioned.
?. (hipment =presentation period is not s"fficient.
k. Original doc"ments to !e sent to !"yer or nominated agent.
l. -CR or HA<+ consigned to applicant or !"yer.
m. F(hippersB load and co"nt is not accepta!le F cla"se.
n. ,=C shall e)pire in the co"ntry of the iss"ing !an%.
o. Negotiation is restricted.
9apers re>uired to open back-to-back 3/#.
a. Import registration certificate A e)port registration certificate
b. ,=C application and ,CA form
c. Proforma in'oice or indent
d. Ins"rance policy
e. I7P form
In addition to a!o'e follo&ing papers are re8"ired for e)port oriented garments
ind"stries
a. +onded &areho"se license
b. W"ota allocation letter from e)port processing +"rea" .EP+4
'teps to issue back-to-back 3/#.
a. O!tain all re8"ired papers
b. Chec% the credit limit.
c. Prepare offering sheet if reg"lar credit line is a'aila!le.
d. 7ar% lien on the master ,=C.
e. Iss"e the ,=C.

6C
9a2/ent under back-to-back 3/#.
a. Payment at mat"rity o"t of e)ports proceeds.
b. In case of e)port fail"re or non1realiation=short realiation of e)port
proceeds, forced loan i.e. OAP has to !e created in order to settle the +ac%1to1
+ac% ,=C payment.
)ccounting Treat/ent for Back to Back 3/# .
Ahen the docu/ent is arri-ed, the follo?ing -ouchers are passed,-
Commission on acceptance11111111111111111111111111111111111111111Cr.
C"stomerBs A=C 1111111111111111111111111111111111111111111111111111111*r.

62
4.18) F+E%<: E(%TT):#E DE9)T(E:T
Remittance refers to the send or receipt of money from one place to another place$
-oreign remittance refers that the e)change of money !et&een t&o co"ntries or among
se'eral co"ntries$ This is mainly occ"red thro"gh !an%ing instit"tion $ Prime +an%
,imited performs the the remitance f"nction &ith different co"ntries$ It maintains the
foreign remittance in the follo&ing form:
%n?ard
+ut?ard
The follo?ing things are done in this depart/ent
a. O'erall s"per'ision of -oreign Remit. *ept.
b. Correspondence to Nostro Acco"nt.
c. -oreign TT payment A P"rchase of -. *rafts, Cho"se A preparations of -.+.P.
.-oreign +ill P"rchased4.
d. Chec%ing of all +atches.
e. Assist in preparation of I+CA=I+*A etc.
. Compliance of A"dit A Inspection.
g. Iss"ance of o"t&ard TT A -**.
h. Iss"ance of PRC.
i. (tatement A all related &or%s regarding deposit of +angladesh +an%.
?. -oreign Collection, +angladesh +an% Clearing Chec% Collection, &hich comes
from all !ranch of A++,.
k. <ithdra&al from -.C.A=C.
l. Encashment of T.C.Bs A Cash *ollar and (terling Po"nd.
m. *ed"ction of Ta) and EAT.
n. Preparation of related statements incl"ding con'erti!le Ta%a Acco"nts.
o. Preparation of I+CA A I+*A and +alancing of Collection and other special
assignment as desired !y *epartment in charge.

/0
". Iss"ance of TC A Cash *ollar, Correspondence &ith different +an%=Instit"tion
related to TC=*ollar.
A. (t"dent Case handling A preparation of related statements .Head Office and
+angladesh +an%4.
r. +alancing of Acco"nt (tatements.
s. +atch posting and all related statements.
4.10) The risks in-ol-ed in foreign exchange business
Ris% of non1payment
Ris% of non deli'ery of goods
Ris% of recei'ing s"! standard goods
Ris% fo fra"ds in goods
E)change ris%
-ail"re of -oreign !an%s
("dden changes in polices
Co"ntry ris%

/1
CHAPTER: -o"r
F!"!#S $ %!%L&SS

Findings
Policy implementation
Suggestions to Foreign exchange
department

/9
Findings
Findings
*"tch1+angla +an% ,imited is one of the leading pri'ate !an%s in the co"ntry$ The
findings of the report are1
The +an% has remained dynamic in its contin"ed efforts to impro'e A increase
core competence A ser'ice efficiency !y constantly "pgrading prod"ct 8"ality,
ser'ice standards$
In +angladesh, de'eloping co"ntry, *++, has ta%en cost leadership strategy to
reach to the client as a tr"sted partner$
The !an% is in effecti'e participation !y ma%ing the "se of state of the art
technology$
The c"stomers are 'ery m"ch satisfied a!o"t the ser'ice of the &or%er of the
!an%$
*++, considers clients as !an% client not !ranch client$
The !an% esta!lished correspondent relationship across the &orld$ 7ore than 110
co"ntries ha'e !een co'ered thro"gh 100 &orld1class correspondent !an%s !y
&hich the can ga'e the !est ser'ice to the c"stomer$
Foreign exchange di'ision also e)panding its ser'ice day !y day$
Foreign exchange di'ision Contri!"te a large amo"nt of income on the total
income of the !an% each year$
(till there is lac% of manpo&er in Foreign exchange di'ision to pro'ide 8"ic%
ser'ice$
*ifferent types of acco"nt holders are the main assets of the !an%L most of the
acco"nt holders are the sa'ings and term deposit holders$
+eca"se of the good &or%ing en'ironment and good go'ernance all most all
employees are satisfied &ith the !an%$

/;
The !an% !ears a large n"m!er of shortages of h"man reso"rceL as a res"lt they
cannot gi'e proper s"pport to the c"stomer as fast as the m"ltinational !an% in the
co"ntry as a #oint 'ent"re !an%$
+y ta%ing a good strategic decision the !an% is a!le to face the competition on
open mar%et economy$
The r"les and reg"lation are strictly follo&ed for handling the c"stomers as a
res"ltL there is a little chance of fra"d$
Information Technology department is the most efficient department compare to
other department$
*++, too% part in foreign transaction as one of the most leading !an%$
*"tch1+angla +an% ,imited offers AT7 card for all acco"nt holders and
international de!it card !y &hich they can access from any part of the &orld$
The !an% "se online technology, as a res"lt, the c"stomer can get the fastest
ser'ice from the !an%$
The !an% offers minim"m cost ser'ice of TT, PO, and ** for the acco"nt
holders$
The !an% gi'es more interest on -*R and 7*L as a res"lt many people &ho ha'e
ideal money can in in'est this ris% free in'estment$
+y analying the financial statement I fo"nd that the ROE A ROA is increasing
day !y day &hich sho&s a positi'e indicator to the economy$
-inally Dutch-Bangla Bank 3i/ited can !e called one of the !est !an%s for the
time !eing$

/@
"ecommendations
"ecommendations
Tho"gh *"tch1+angla +an% ,imited tries to gi'e the !est c"stomer s"pport, the ha'e
some la%e and lin%age compare to other !an% of the same generation$ The
recommendations for this report are:
The a"thority sho"ld recr"it more employees to ser'e the c"stomers$ They can
recr"it e)perienced employee as &ell as fresh grad"ate$
The !an% sho"ld introd"ce more prod"cts !ased on the mar%et demand$
Foreign exchange di'ision need to shorten=easier its comple) transaction
proced"re$
*"tch1+angla +an% ,imited sho"ld offer international credit card, !eca"se in
modern &orld the "se of increasing paper c"rrencies is decreasing$
+eside social &or% the !an% ha'e to !e more serio"s to get !etter position in
#)(E3 ratting$
(ince most of the clients "se pa2/ent order, *++, sho"ld ser'ice it as fast as
possi!le$ To do so, they can "se more than one !loc%s$ One for che8"es and
another is for cash$
The !an% can open more branches to reach to more c"stomers$
The !an% can open branches or foreign booth !eca"se many people send money
from abroad e'ery year to +angladesh$
The /arketing depart/ent of the bank sho"ld more efficient to reach at the
heart of the c"stomer$
-or the s"ccess of any organiation, e/plo2ee satisfaction is one of he most
important factor and *++, a"thority ha'e to loo% a!o"t it$
The !an% sho"ld !e more profit concern as &ell as too% part to the economics
de'elopment of the co"ntry$
+eing a clear transparent the !an% can pro'ide the !est s"pport to the c"stomer as
earn profit$

/6
To attract 'al"ed client, it sho"ld impro'e glance and internal decoration$
Conclusion
Conclusion
*"tch1+angla +an% ,imited is !an% of ne& generation$ Tho"gh my report is on general
o'er'ie& of the !an% A -oreign e)change, I tried hard to co'er all a!o"t the related
topics$ I ha'e tried to ma%e the report as a !est one$
-or !an%ing operation deposit is one of the most important factor as &ell as re/ittance,
clearing, cash$ +y ma%ing proper interaction among the departments the !an% can gi'e
the !est s"pport to the acco"nt holders A +"sinessman$ Foreign exchange di'ision of
*++, also contri!"tes a lot to&ards the economic de'elopment thro"gh international
transactions$ C"stomers are satisfied &ith its ser'ice$
*++, is the !est !an%, &hich pro'ides a large f"nd to de'elop the society, and the !an%
has to contin"e this process$
Finall2 IDutch-Bangla Bank 3i/ited J*our Trusted 9artnerK /ust be a true
partner of the custo/ers.

//
Bibliography
Bibliography
.14$ -inancial 7ar%et and Instit"tions .6th Edition4
1 :eff 7ed"ra
.94$ 5eneral +an%ing 7an"al1 *"tch1+angla +an% ,imited$
.;4$ Ann"al Reports *++,1900/, 900D, 900C$
.@4$ +an% 7anagement
1 Peter A Rose
.64$ -inancial 7anagement ./th Edition4
1 Ross
1 :ordon
./4$ <e! site: http.//???.dutchbanglabank.co/
.D4$ -"ndamentals of +an%ing !y *r$ A$ R$ Ghan
.C4$Research 7ethodology !y Gathari$
.24$ -oreign :*changeB Book b!/L.R. Chowdhur!.
Appendix
Appendix
To ma%e this report "sed different yearBs data in the performance analysis$ All the data
"sed from the ann"al report of *"tch1+angla +an% ,imited of 900C19009$ A <E+ (ITE
O- *++,$

/D