Foreign Exchange operation of Southeast Bank

School of Business
ASIAN UNIVERSITY OF BANGLADESH
 Assignment on
Topic: Foreign exchange operation on Southeast Bank

Prepared for: Md. Touhidul Alam

Course Teacher
Financial Institution

Prepared By: Md. Sadakur Rahman

ID: 200020127

Md. Salam
ID: 200020269

Kanak Ghosh
ID: 200020

Md. Faizus Salehin

ID: 200020087

Md. Sajib Hasan

ID: 200020082

BBA 9th (A)

Dhanmondi Campus
Asian University of Bangladesh

Date of submission: December 24, 2003

December 24, 2003

Course Teacher
International Finance
School of Business
Asian University of Bangladesh

Subject: Submission of Assignment

Dear Sir:

It is our pleasure to submit our assignment titled Foreign

exchange operation of Southeast Bank. In our assignment report
we tried to include the basic function launched by South East Bank
in Foreign Exchange operation.

We would be happy to provide further information as might be

asked by you.

Sincerely Yours,

Md Sadakur Rahman
Md. Salam
Md. Faizus Salehin
Md. Sajib Hasan
Kanak Ghosh
 Executive Summery

In todays world of volatile economy commercial banks plays a very

important role. Like any other country, the economy of Bangladesh is
also strongly influenced by the sound functioning of the commercial
bank.

Southeast Bank Limited is a scheduled commercial bank in the

private sector, which is focused on the established, and emerging
markets of Bangladesh.

In part A we have tried to include a short discussion about companys

general information and some general functions as deposit and credit
functions.

The topic relevant function and the function of a department that has
direct impact not only in the internal economy of the country but also
to the Global economy is foreign exchange department which is
discussed in the part B.
 Part A
General Information about
Southeast Bank
Introduction of Southeast Bank Limited

Southeast Bank Limited is a scheduled commercial bank in the

private sector, which is focused on the established and emerging
markets of Bangladesh. In Dhaka, the first branch was launched in
1995 and the bank has been growing ever since. South East bank
limited has 19 branches throughout Bangladesh and its aim is to be
the leading bank in the countries principal markets. The bank by
concentrating on the activities in its area of specialization has
achieved good market reputation with efficient customer service. The
bank also tries to fulfill its share in community responsibilities. By
such measures the bank intends to grow and increase shareholders
earning per share. South east Bank Limited pledge to maximize
customer satisfaction through services and built a trusting relationship
with customers, which has stood the test of time for the last seven
years.
Board of Director Management Executive
CHAIRMAN PRESIDENT AND MANAGING DIRECTOR
Ragib Ali Syed Abu Naser Bukhtear Ahmed

VICE CHAIRMAN DEPUTY MANAGING DIRECTOR

Azim Uddin Ahmed M. A. Muhith

DIRECTOR SENIOR EXECUTIVE VICE PRESIDENT

Muhammad Abul Kashem Syed Imtiaz Hasib
Yussuf Abdullah Harun Md. Mosharraf Hosain
Muhammed Abu Tayub Khondkar Fazle Rashid
Jalalur Rahman Mahbubur Rashid
Sayed Shahid Ali A. K. Qureshi
Mostori Mia
Md. Akikur Rahman EXECUTIVE VICE PRESIDENT
M. A. Ahad M. M. A. Mukit
Jusna Ara Kashem A. H. M. Wali Khan
Duluma Ahmed Enamul Hoque
Rehana Rahman Shabbir Ahmed Imtiaz
Rabeya Khatun Chowdhury Chowdhury Khaled Saifullah
Alamgir Kabir
SENIOR VICE PRESIDENT
PRESIDENT AND MANEGING DIRECTOR Mujibur Rahman
Syed Abu Naser Bukhtear Ahmed Md. Ali Ahmed
Md. Mubin ul Khaleque
COMPANY SECRETARY Shahabuddin Md. jafar
A. K. Qureshi A. S. M. Bulbul

VICE PREDIDENT
Khandakar Fahim Uddin Ahmed
Ahmad Tabshir Choudhuri
Md. Altafur Rahman
Md. Sawkat Hosain
Mustafizur Rahman
Kazi Mahmood Karim
Md. Shams Tabrez
A. F. M. Shariful Islam
 South East Banks Vision and Mission

Its VISION

To stand out as pioneer banking institution in Bangladesh and

contribute significantly to the national economy.

Its MISSION

High quality financial service with the help of latest technology.

Fast and accurate customers service.
Balanced growth strategy.
High standard business ethics.
Steady returns to shareholders equity.
Innovative banking at a competitive price.
Deep commitment to the society and the growth of national economy.
Attract and retrain human resource.
 Five Years Financial Highlight At a Glance

PARTICULARS 2002 2001 2000 1999 1998

Authorized Capital 2500.00 500.00 500.00 500.00 500.00
Paid up Capital 399.30 363.00 330.00 300.00 150.00
Reserved Fund 571.66 394.20 235.28 145.70 85.13
Equity Fund (Capital and Reserve) 970.96 757.20 565.28 445.70 235.13
Deposit 16598.45 12630.25 10309.70 7512.49 5483.39
Advance 13027.13 9178.03 7061.87 5051.88 3402.21
Investment 2282.08 1727.44 1369.92 971.81 509.73
Import Business 12817.01 12187.37 11239.14 8228.50 6852.19
Export Busines 2263.45 2675.05 1319.51 704.47 353.43
Gurantee Business 2502.48 1854.50 1306.24 907.18 744.92
Total Income 1936.54 1748.18 1259.03 862.86 727.53
Total Expenditure 1443.98 1256.05 921.70 661.02 556.87
Operating Profit 492.56 492.13 337.33 201.84 170.66
Net Profit after Tax and Provision 253.56 270.74 172.84 85.48 56.73
Fixed Asets 48.81 36.26 71.13 78.37 85.92
Total Assets 18882.48 14468.66 11710.56 8336.17 5962.71

Earning per Share (Tk.) 69.85 82.04 57.61 56.99 45.38

Dividend Cash (%) 20% 30% 25% 15% -
Bonus Share 10% (10:1) 10% (10:1) 10% (10:1) 20% (5:1)
Return on Equity (REO) 26.11% 36.76% 30.58% 19.18% 24.13%
Return on Assets (ROA) 1.34% 1.87% 1.48% 1.03% 0.95%
Non Performing Loans 1.99% 2.78% 2.95% 3.75% 4.25%
Capital Adequacy Ratio 8.23% 8.77% 8.40% 9.52% 8.16%

Number of Correspondent Banks 45 40 39 34 32

Number of Foreign Correspondents 295 280 269 253 238
Number of Shareholders 1666 1429 1266 1129 27
Number of Employees Banking 488 479 445 399 369
-NonBanking 107 96 83 81 78
Number of Brunches 19 13 12 12 12
 Balance Sheet as at 31st December 2002

PROPERTY AND ASSETS Dec 31, 2002 D

Cash
In fund and with Bangladesh Bank
& Sonali Bank (Including Foreign Currency) 780198740
Balance with Other Banks and Financial Institutions:
In Bangladesh 639256273
Outside Bangladesh 17313320
656578593
Money at Call and Short Notice 1287650000
Investments:
Government 2053815600
Others 228264029
2282079629
Loans and Advances:
Loans, Cash Credit % Overdrafts 12643293858
Bills Discounted and Purchased 383837132
13027130990
Fixed Assets (at cost les depreciation) 48805032
Other Assets 800034755
Total Property and Assets 1888247739

LIABILITIES AND CAPITAL

Liabilities:
Borrowing from Other Banking Companies,
Financial Institutions, Agents etc. 1255000000
Deposit and Other Accounts:
Current Accounts and Other Accounts etc. 976901987
Bill Payable 203944689
Savings Bank Deposits 905132231
Bearer Certificate of Deposit 701544308
Term Deposit 12555929783
15343452998
Other Liabilities 1367599470
Total Liabilities 17966052468

Capital/ Shareholders Equity:

Capital:
Isued, Subscribed and Paid up:
3630000 ordinary shares (3300333 ordinary
shares in year 2001) of Tk. 100.00 each 363000000
Proposed Issue of Bonus Shares @ 10% (2001: @ 10%)
(2001: 330000 ordinary shares of Tk 100.00 each) 36300000
Proposed Cash Dividend @ 20% (2001: @ 30%) 72600000
Share Premium Account 80812000
Statutory Reserve 295896000
Other Reserves 31731916
Surplus as per Profit and Loss Account 36085355
Total Shareholders Equity 916425271
Total Liability and Shareholders Equity 18882477739

CONTRA ENTRIES Dec 31, 2002 D

Off Balance Sheet Items:
Contingent liabilities
Constituents liabilities for acceptances
Endorsements and other obligations
Letter of Credit 2614936518
Letter of Guarantee 1856612802
4471549320
Bill for Collection-
Payable in Bangladesh 53918779
Payable out side Bangladesh 144349462
198268261
4669817581
 Profit & Loss Account for the year ended 31st December 2002

PROPERTY AND ASSETS Dec 31, 2002 Dec 31, 2001

Operating Income:
Interest and Discount Income 1582185772 1435235125
Les: Interest paid on Deposit Borrowing 1147882613 1040146613
Net Interest Income 434303159 395088512

Income from Investment 133218707 113348659

Gain on sale of Investment of share - 4538427
Commission, Exchange & Brokerage 199829204 179147717
Other Operating Income 20245368 15720823
Gross Operating Income 787596438 707844138

Less: Operating Expense:

Salary and Allowance and Providing Fund 101559016 79551627
Rent, Taxes, Insurance, Lighting etc. 85837968 39787214
Postage, Stump, Telegram & Telephone 21871514 18372055
Audit Fee 135000 135000
Legal expenses 544037 156437
Stationary, Printing, Advertisement 12685663 11053955
Directors Fees and Expenses 3926942 2885331
Managing Directors remuneration 2073790 1705000
Depreciation on and repairs to Banks property 11601528 16535083
Other expense 55867076 45730047
Total Operating Expense 296102534 215911749

Net Operating Income 491493904 491932389

Non- Operating Income/(Loss) 1064245 193872

Profit before Provision 492558149 492126261

Less
Provision for Unclassified Loan and Advances 35332000 19745000
Provision for Classified Loan and Advances - 70000000
Provision for diminution in the value of Shares 21677000 151825
Total Provision 57009000 89896825

Total Profit before Tax 435549149 402229436

Less: Provision for Tax 181986000 131429000
Net Profit after Tax: 253563149 270737436
Retained Surplus brought forward 28287206 3133770
Retained Profit before distribution 281850355 273871206
Appropriations:
Statutory Reserve 86590000 80446000
Proposed Cash Dividend 72600000 99000000
Proposed Bonus Shares 36300000 33000000
Share Premium account 47674000 33138000
Amount Transferred to SBL Foundation 2601000 -
245765000 245584000

Retained Earning 36085355 28287206

Earning per Share 69.85 82.04

 Services and Products

Services

Services
Locker Services Yearly Charges Security Deposit Available
at

Small Tk. 750 Gulshan

Branch
Tk. 2,500/=
Medium Tk. 1,250 (refundable) Dhanmondi
for all types of Branch
lockers.
Large Tk. 2,000 Uttara
Branch

Products

Deposit Schemes Deposit Rate (D.R.)

Savings (SB) 8.00%
Special Notice Deposit (STD) 5.50%
Fixed Deposit
30 Days 7.00%
60 Days 7.50%
3 Months 8.25%
6 Months 8.50%
1 Year 9.00%
2 Years 9.50%
3 Years 10.00%
Note: The maturity period of BCD cannot exceed 1 (One) year and for BCDs we offer
competitive rates commensurate with FDRs (Time Deposits) of respective tenors.
Besides Fixed Deposits, Savings Bank Deposit and Current Account
Deposits, the Bank has introduced the following customers friendly
deposit schemes:

Monthly Amount Built Amount Built

Installment up after 5 up after 10
Size (Tk.) years ( Tk.) years ( Tk.)

Pension Savings 500.00 40000.00 108000.00

Schemes 1000.00 80000.00 216000.00
Education Savings 500.00 40000.00 108000.00
Schemes 1000.00 80000.00 216000.00
Marriage Savings 500.00 40000.00 108000.00
Schemes 1000.00 80000.00 216000.00

Savers Benefit Deposit Scheme (SBDS)

Size of deposited amount

Deposited Amount: Term with interest after
50,000.00 completion of the term
( Tk.)
1st Year 54,000.00
2nd Year 59,000.00
3rd Year 65,000.00
4th Year 72,000.00
5th Year 79,000.00
6th Year 89,000.00
7th Year 99,000.00
8th Year 1,10,000.00

Bearer Certificate of Deposits (3,6,12, month)

 Loan Product Category and its Cost

Lending
Lending Rates (L.R.)
Categories (Effective from
01/04/1997)
Loan to 12.00%
Primary Producers
Loan to agricultural 13.00%
Agricultural Schemes input traders and
fertilizers dealers/
distributors
Jute Trading 15.00%
Commercial Lending Others 15.00%
Commercial
Lending
Jute 14.00%
Working Capital Other than Jute 15.00%
House Building Loan Urban Housing 15.00%
P.C. Loan Schemes 15.00%
Special Programs for Educational and
other Training
Institutions
Educational Loan 15.00%
Schemes
Other Loans Consumers Credit
Schemes
Small\Cottage Industry Term Loan 13.00%
Large\Medium Term Loan 15.00%
Scale Industry
Jute Goods 7.00%
Loan against export Exports
Other Exports 7.00%
Foreign Correspondent Banks

AB International Finance Limited Marine Midland Bank

ABN Armo Nank NV MashreqBank PSC

AEB Finance Limited Mercants Bank of California

Akbank T. A. S National Bank of Canada

American Express Bank Limited Nepal Bangladesh Bank Limited

ANZ Grindlays Bank Limited Sonali Bank, Calcutta

Arab Bangladesh Limited Standard Chartered Bank

Banca Di Roma Sevenska Handelsbanken

Banca Nazionale Del Lavoro SpA Swedbank

Banco Atlantico AS Swiss Bank Corporation

Banco Espanol de Credito SA Thai Farmers Bank Public Company Limited

Bank of Nova Scotia The Bank of Tokio- Mitsubishi Limited

Bayersche Vereinsbank AG U. S. Bank

Citibank N.A UBS AG

Commerzbank AG Unibank AS

Den Danske Bank AS Unibank AS

Den Norske Bank ASA Unicredito Italian SpA

Dresdner Bank AG Union De Banques Arabes Et Francaises

F.van Lanschot Bankiers nv United Bank of India

Habib American Bank Westdeutsche Landes Bank Girozentrale

Habib Bank AG Zurich

HBZ Finance Limited
HSBC
Hypovereins Bank CZ AS
Jordan Investment and Finance Bank