Internship Report

On
Impact of Remittance on HSBC Earnings
Submitted To
Department of Finance
Faculty of Business Studies
University of Dhaka

Submitted By
Mir Mohammad Fakhrul Islam
BBA (8th Batch)
Roll No. 8-140, Section: B
Department of Finance
University of Dhaka
E-mail: mmfakhrul@gmail.com

July 08, 2007

Impact of Remi ttance on

HSBC Earnings

DECLARATION FROM THE SUPERVISOR

This is to certify that the paper Impact of Remittance on HSBC Earnings at
Hongkong and Shanghai Banking Corporation (HSBC) Bangladesh Limited is a bona
fide record and has been done by Mir Mohammad Fakhrul Islam, BBA (8th Batch),
Roll No. 8-140, Section: B, Department of Finance, University of Dhaka, as the
partial fulfillment of the requirement of BBA program of the Department of Finance,
University of Dhaka.

This paper has been prepared under my guidance and is a record of the bona fide
work carried out successfully.

G. M. Javed Anowar
Assistant Professor
&
Internship Supervisor
Department of Finance
Faculty of Business Studies
University of Dhaka

Impact of Remi ttance on

HSBC Earnings

July 08, 2007

G. M. Javed Anowar
Assistant Professor
Department of Finance
University of Dhaka
Subject: Internship Report on Impact of Remittance on HSBC Earnings
Dear Sir,
It is to inform you that I have completed my internship report on Impact of
Remittance on HSBC Earnings which I have selected after having made a talk
with you. This paper will provide you with information regarding analysis of various
types of remittance transmitted through HSBC and its affect on the bottom line of
the company financial statement. I have tried my best to bring all variables for the
study and tried to reach in conclusion by showing the contribution of remittance on
the HSBC earnings.
I have studied and collected the relevant information for analysis. I have enjoyed a
lot while preparing this paper as it was something different from my previous report
and assignment. It required studying details of the institution with maintaining
regular work at the office which gives me the different type of learning from the real
world.
I hope that this paper will meet your requirement. I would be glad to furnish any
further clarification in this regard, if needed.
Sincerely,
(Mir Mohammad Fakhrul Islam)
BBA (8th Batch)
Roll No. 8-140, Section: B
Department of Finance
University of Dhaka

Impact of Remi ttance on

HSBC Earnings

Acknowledgement
It was the kind design of Merciful Allah that I Mir Mohammad Fakhrul Islam have
completed the assigned task within the specified time period with fewer hazards.
Any assignment is the product of numerous people whose efforts, ideas and
suggestions make the writers job manageable. I am indebted to many people and
organizations for their assistance in making this assignment in reality.
I particularly appreciate the perseverance and contributions of supervision by Mr. G.
M. Javed Anowar, Assistant Professor of the Department of Finance, University of
Dhaka. Without his constant supervision and valuable advices and suggestions from
time-to-time, I would be failing to complete the whole thing in a right manner. .I am
indebted to my course teachers including the Chairman of the Department and the
BBA Program Director whose vigilance and guidance paved the way for the
meaningful ending of this study in a short duration.
I would be remiss not to express a special thanks to the many fine people on the
HSBC of them particular importance Fuad Y Khan, Manager, NSC, Ajoy K.
Bhattacharjee, A.T.M. Afsaruzzaman, Arif Ahmed, Md. Asharaful Hasan and all
people of the Support Section of NSC who give me their valuable support in my
work. I would also indebted to Md. Maruful Alam Chowdhury of MIS Section, NSC
for his valuable contribution by providing data.
In addition I am very much grateful to Mr. Abul Kalam Azad, Additional Director of
Bangladesh Bank Training Academy, Mirpur, Dhaka for his valuable effort by
providing me the necessary documents regarding remittance of our country.
As always, any errors or omissions are the sole responsibilities of the writers. Any
suggestions improving the quality of this assignment are welcomed.

Impact of Remi ttance on

HSBC Earnings

Synopsis
Because of multiplier effects, the economic impact of remittances is mostly found in
the broader economy and depends on the ability of households to make productive
use of remittance. The prime objective of this study is to assess whether a bank can
generate enough profit from the service provided for the remittance transfer depends
on the amount and volume of remittance the received and how much they are
charging for the services.
The Hongkong and Shanghai Banking Corporation (HSBC) being one of the largest
commercial bank of the world operating in Bangladesh for more than 10 year have
the remittance services in Bangladesh also. The economic impact of remittances has
been considered beneficial at both the micro and macro levels at least in the short
term. The financial firms who are engaged with the operation of remittances are also
been profitable through the charges taken from the customers. Migrant remittances
contribute to the expansion of financial market activities and the development of
payments systems through enhancing direct capital flows and distributing those
funds to users end for investment or finance consumption expenses
The main competitors of the foreign banks are they themselves. And in the banking
sector of Bangladesh almost all the banks have the homogenous product. This would
be due to the banking regulation provided by the Bangladesh Bank as claimed by the
banker of the country.
Remittance flow has the multiplier beneficial affect for a country and also for the
banks if the bank can retain it for some time through legal means. Flow of
remittance can be affected by the size of a nation, economic condition of the country,
foreign trade etc.

Numbers of inward transaction highly influence the total flow

of remittance, but the outward transactions have negative relationship with the total
remittance inflow. Commission received is highly dependent upon the total amount
of remittance flow.
Profit function reveals that private flow of remittance exerts more influence on the
profit though commercial remittance is highly correlated with quarterly profit of the
HSBC.
Impact of Remi ttance on
HSBC Earnings