Management process of EXIM Bank Limited

Acknowledgement

The assignment is very helpful to bridge the gap between the theoretical knowledge and real
experience. As per of BBA program we are paying our gratitude to our course teacher Liana
Anwar because of whom we are being able to prepare this assignment. Next we would like to
thank the Senior Vice President EXIM Bank Mr. Shah Md. Abdul Bari for his support to us
during preparing this assignment.

We are paying our heartiest appreciation to all of these great people for their great
cooperation, which will always be recommended by us.

Objective of the Assignment

The objectives are mentioned by priority:

1. To gain the practical experience about the management system of banking

organization
2. To have clear idea about managerial practices and performance of EXIM Bank ltd.

Methodology

In preparing this assignment, both primary and secondary and sources are used. Methods of
collecting data include face-to-face conversations, annual report of EXIM Bank ltd, Bank
website, some report of EXIM Bank ltd, Different procedure manual published by EXIM
Bank Ltd.

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 Management process of EXIM Bank Limited

Table of Contents

Topics Page no.

1. Introduction. 03
2. An overview of EXIM Bank limited 04
Historical Background of the org 05
Corporate information. 06
Board of directors 07
3. Management of EXIM Bank ltd.. 08
Planning 08-13
Organizing 14-16
Directing & controlling. 17
HRM of EXIM Bank. 17
Motivation. 18
Risk management.. 18-20

4. Conclusion 20
5. Recommendations 20
6. Bibliography 21

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 Management process of EXIM Bank Limited

Introduction

Generally by the word Bank we can easily understand that the financial institutions deal
with money. But there are different types of banks like; Central Banks, Commercial Banks,
Savings Banks, Investment Banks, industrial Banks, Cooperative Banks etc. But when use the
term Bank without any prefix, or qualification it refers to the commercial banks.
Commercial banks are the primary contributor to the economy of a country. So we can say
commercial banks are a profit making institution that holds the deposit of the individuals &
business in checking & savings account and then uses these funds to make loans. For these,
people and government are very much dependent on these banks. As banks are profit earning
concern; they collect deposit at the lowest possible cost and provide loans and advances at
higher cost. The differences between two are the profit for the bank.

Banking sector is expanding its hand in different events every day. At the same time the
banking process is becoming faster, easier and the banking arena becoming wider. As the
demand for better services increases day by day, they are coming with different innovative
ideas and management. In order to survive in the competitive field of the banking sector, all
banking organization are looking for better service opportunities to provide their fellow
clients.

EXIM (Export Import Bank of Bangladesh Limited) is one among the best and most
important bank for the Banking system of Bangladesh. Like other Banks & Financial
Intermediaries, they perform a critical function of facilitating the flow of funds from surplus
units to deficit units. Commercial banks basically focused on commercial lending. From the
end of 19th century they are providing diversified services.

Like other Commercial banks EXIM also have different sections such as section focusing on
lending; a section helps in foreign trade, a section that collects deposits.

This paper is entitled Management process of EXIM Bank Limited originated from the
fulfillment of the assignment.

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 Management process of EXIM Bank Limited

AN OVERVIEW OF EXIM BANK LIMITED

NAME: EXIM (Export Import) BANK OF BANGLADESH LIMITED.

HEADOFFICE
"SYMPHONY"
Plots (F):9, Road#142
GulshanAvenue, Dhaka-1212
Phone: 880-2-9889363, 9891489
Fax: 880-2-8828962

CBS Implementation Project & Data Center

House # 376 (old), 4A (new) 1st Floor
Road # 27 (old), 16 (new), Dhanmondi Tower (1st floor)
Dhanmondi, Dhaka
Phone:02-8154546, FAX:02-8141873
E-mail: itd@eximbankbd.com
SWIFT: EXBKBDDH

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 Management process of EXIM Bank Limited

Historical Background Of The Organization:

EXIM Bank limited was established in 1999 under the leadership of Late Mr. Shahjahan
Kabir, founder Chairman who had a long dream of floating a commercial bank, which would
contribute, to the socio-economic development of our country. He had a long experience as a
good banker. A group of highly qualified & successful entrepreneurs joined their hands with
the founder chairman to materialize his dream. Indeed, all of them proved themselves in their
respective business as most successful star with their endeavor, intelligence, hard working
talent entrepreneurship. Among them, Mr. Nazrul Islam Mazumder became the honorable
Chairman after the demise of the honorable founder Chairman.

EXIM Bank is a scheduled bank in the private banking sector. It was established under the
Bank Company Act-1991, and incorporated as a Public Limited Company under Companies
Act-1994 with a paid up capital of Tk.225.00 million.

The Bank was incorporated on June 02, 1999 and started its operation on the 3rd of August,
1999 with Mr. Alamgir Kabir, FCA as the advisor & Mr. Mohammad Likiotullah as the
managing Director. Both of them have long experience in the financial sector of our country.
By their pragmatic decision & management directives in the operational activities, this bank
has earned a secured & distinctive position in the banking industry in terms of performance,
growth & excellent management.

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 Management process of EXIM Bank Limited

Corporate Information:

(Information as per last Annual Report 2009.)

Name of the bank : EXIM Bank Of Bangladesh Limited

Status : Private Limited Company

Date of Incorporation : 2nd June, 1999.

Inauguration of the first branch : 3rd August, 1999.

Chairman : Mr. Md. Nazrul Islam Mazumder.

Managing Director : Kazi Masihur Rahman

Authorized Capital : TK. 1000 core.

Paid up Capital : TK.683, 22, 69,000

No. of directors : 22

Number of Branches : 40

Deposits : TK. 9404, 21, 99,000

Number of Employees : 1689

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 Management process of EXIM Bank Limited

Board of Directors:

Chairman
Mr. Md. Nazrul Islam Swapan
Mr. Md. Nazrul Islam Mazumder

Mr. Md. Faiz Ullah Mr. Mohammad Abdullah

Mrs. Nasima Akhter Mr. Md. Altaf Hossain

Mr. A.K.M. Nurul Fazal Mrs. Nasreen Islam

Mr. Zubayer Kabir Mr. Md. Mazakat Harun

Mr. Md. Habibullah Mr. Abdullah Al-Mamun

Mr. Md. Abdul Mannan Mr. Md. Fahim Zaman Pathan

Al-haj Md. Nurul Amin Mrs. Asma Begum

Mr. Abdullah Al-Zahir Sawpan Engr. Aminur Rahman Khan

Mr. Mohammed Shahidullah Mrs. Rizwana K. Riza

Bay-Leasing & Investment Ltd.

Represented by Mr. Mahbubur Rashid Mr. Md. Nur Hussain

Mrs. Hasina Akhter

Mr. Anjan Kumar Saha

Mrs. Rabeya Khatoon

Mrs. Mahmuda Begum

Mrs. Sabira Sultana

Mrs. Mamtaj Begum

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 Management process of EXIM Bank Limited

Mr. Md. Shaiful Alam

Mrs. Hamida Rahman

Meer Joynal Abedin

Mrs. Nahida Akter

Mr. Md. Nurul Amin

Mrs. Rubina Shahid

Management of EXIM Bank

For any financial and non financial organization Management is the most valuable and
important resources of any kind of organization. And a well-organize management provides
the organization to reach its ultimate goal. Management means planning, organizing, staffing,
directing and controlling of all financial and non financial resources of an organization.
Different aspects of management practice in EXIM Bank are discussed below.

Planning:

Planning is deciding in advance what is to be done; a plan is a projected course is a projected

course of action. Planning is an on-going and dynamic exercise. EXIM Bank has done its
planning within the purview of the corporate plan. The overall planning approach of EXIM
Bank is Top-down. Each branch can plan according to the goal imposed by the corporate
level. It doesnt plan independently. And, EXIM Bank has a planning division. This
department is mainly responsible for the overall planning. From the hierarchy position we can
see that the way of delegating power.

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 Management process of EXIM Bank Limited

Hierarchy of Position Structure of EXIM Bank

Chairman Advisor Board of Director

Managing Director

Additional Managing Director

Deputy Managing Director

Senior Executive Vice President

Executive Vice President

Senior Vice President

Vice President

Senior Assistant Vice President

Assistant Vice President

Senior Principal Officer

Principal Officer

Executive Officer

Junior Officer

Assistant Officer

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 Management process of EXIM Bank Limited

Mission
The bank has chalked out the following corporate objectives in order to ensure smooth
activities of its goals:

Be the first in third generation banking.

To provide high quality financial services in export and import trade.

To provide excellent quality customer service.
To maintain corporate and business ethics.
To become a trusted repository of a customers money and their financial advisor.
To make stock superior and rewarding to the customers money and their financial
advisor.
To display team spirit and professionalism.
To have a sound capital base.
To be most caring and customer friendly and service oriented bank.
To create a technology based most efficient banking environment for customers
To ensure ethics and transparency in all levels.
To ensure sustainable growth and establish full value of the honorable shareholders.
To add effective contribution to the national economy.
Provide high quality financial services in export and import trade.
Provide defect free Maintenance quality customer service.
Maintenance of corporate and business ethics.
Make its stock superior and rewarding to the customers.
Display team spirit and professionalism
Sound capital base

Vision
The gist of EXIM Bank vision is Together towards tomorrow. EXIM Bank believes me
togetherness with its customers, in its march on the road to growth and progress with
services. To achieve the goal, there will be pursuit of excellence at all stages with a climate of
continuous improvement, because in EXIM Bank, they believe the line of excellence is never
ending.

Corporate Social Responsibility

The purpose of company business is, obviously, to earn profit, but the promotes and equity
holders are aware of their commitment to the society to which they belong. A chunk of the

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profit is kept aside or spent for socio-economic development through trustee and in
patronization of art, culture and sports of the country. At least 2% of annual profit of EXIM
Bank of every year put aside for the foundation to conduct CSR activities. The main CSR
activity carries out through this foundation is:

1. Health care service

2. Education promotion scheme (interest free loan)
3. Helping people affected by natural calamities
4. Helping people in slum areas
5. Donation to educational institute to setup computer lab
6. Beautification of Dhaka city.

SWOT analysis

SWOT analysis is an integrated assessment technique to finally select the most appropriate
business opportunity for a given time in a given conditions. Strength and weakness are
always related to the individual or an organization interested in a business. Business of EXIM
bank limited is being analyzed by using the most important tool.

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Strength
Non- political Work Environment

The Work Environment of EXIM Bank is very friendly and co-operative. The practice of
internal politics is completely absent and there is an orderly co-ordination among the
departments.

Skilled Human resource Skilled human resource has given the company an extra benefit, as
the company can recruit the finest from the pool of employees. Because of its attractive
incentive packages and strong brand image in the job-market, skilled work forces have grown
an interest toward EXIM Bank. It also provides motivation among its employees by offering
extra inducements such as: awarding gold medals to best employee of the year, organizing
entertainment programs etc.

Friendly Corporate Culture: This bank is one of the most disciplined banks with a
distinctive corporate culture. It believes in shared meaning, shared understanding and shared
sense making. People of this bank can see and understand events, activities, objects and
situation in a distinctive way.

Societal Marketing: EXIM Bank regularly takes part in charity functions and is renowned
for donating money in different deprived institutions around the country. The company has
already donated money, free books, and free medicines to various charity works. It is also
involved in societal marketing, advertising.

Weakness:
Lack of Employees: The department s of EXIM Bank do not have sufficient work force to
carry on through task. Lack of employees in each department an obvious problem of the
company.

High fix cost for server: The bank has high level of fix cost for its server. The server
requires high maintenance cost. Office rent, networking, and maintenance cost, operational,
cost etc are fix cost of the company.

Poor IT Structure: The IT department structure of this bank is not enough efficient. The
new software of this bank is not so much useful because of poor maintenance of IT People.

Shortages of Equipment Supports: Many departments in EXIM bank do not have sufficient
equipment support such as: fax machines, printers, scanner etc. Besides, some of the
existence equipment becomes out of order and it takes a long time for the company to fix
those equipments.

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Opportunities:
Goodwill of the Bank: EXIM bank has developed a good reputation in the banking industry.
It has proven itself as an effective financial institution. Hence it has made itself capable of
meeting the market demand of prospective depositors. In addition, the lengthy and
bureaucratic process of public banks has discouraged people to go to the government banks.

Business Diversification Opportunity: Operating in banking industry has given this bank
with the opportunity of business diversification in related sectors. Having the expertise in
banking field for a long time, EXIM bank can expand its business in other related financial
services.

Growing Population Income: According to World Bank source, the disposable income of
people in Bangladesh is increasing every year. In addition Bangladeshi people are becoming
more aware as where to put their money and choosing bank with high profile purpose.

Threats:
Political instability Bangladesh is called red zone in terms of political risks. Instability of
administration has resulted in unstable regulations. With the change of governments,
regulations also changes from season to season.

Non cooperative financial institutions regulatory body. The regulatory bodies in the
finance ministry are not always fairs and unbiased. Besides the system it is bureaucratic and
lengthy in Bangladesh. Because of their non cooperative attitude and injustice, the usual work
pace of EXIM bank is slowing down. This is of course a risk to the company.

Customer Resistance against Tariff: Sometimes, EXIM Bank introduces several necessary
VAT, postage charge, or online service charge, or any other types of relevant charges.
However, any new tariff or VAT is always a controversial issue to the people of our country.

Upcoming Competitors in the Market: Besides the existing competitors and large
competitors are also trying to enter the Bangladeshi Market. These new companies will
increase the rivalry level in the industry.

Banking softwares used by EXIM Bank ltd

For conducting banking activities with accuracy, faster and easily EXIM Bank use two types
of softwares. First one is ORACLE for in-house activities and another one is CORE
BANKING SOFTWARE or T204 for conducting banking transaction.

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Organizing
Organizing is deciding how best to group organizational elements. It decides that how to best
group organizational activities and resources. EXIM Bank is organized as per the existing
business locations. It has forty branches, each of which is a separate entity. Each unit is
responsible for its own performance and a senior Vice President (SVP) followed by
Managers each. He is directly responsible for performance of their unit. Within each branch it
is organized functionally.

Departments of EXIM Bank:

Human Resources Division

Foreign Exchange Division
Treasury Division
Operations Division
Information Technology Division
Investment Division
Accounts Division
Audit &Risk Management Division

Organizational Design:

Organizational design is the process of developing or changing an organization structure. It

involves decisions about six key elements:

Work specialization: Work specialization is the degree to which the overall task of
the organization is broken down and divided into small component parts.
Organization also uses job rotation, job enlargement, job enrichment and work tam
approaches as alternative to work specialization.
Departmentalization: Departmentalization is the process of grouping jobs according
some logical management.

Rationale for Departmentalization:

Functional
Products
Geographical
Process
Chain of commands: Chain of command in EXIM Bank has the continuous line of
authority that extends from upper levels of an organization to the lowest levels of the
organization and clarifies who reports to whom.

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Span of control: Span of control is the number of employees who can be effectively
and efficiently supervised by a manager.
Centralization/ Decentralization: Centralization is the process of systematically
retaining power and authority in the hands of higher level managers.
Decentralization is the process of systematically delegating power and authority
throughout the organization to middle and lower level managers. EXIM Banks
design is centralized.

Formalization: Formalization is the degree to which job within the organization are
standardized and the extent to which employee behavior is guided by rules and
procedures.

Organizational Structure: Organizational structure is the set of elements that can be used to
configure an organization.

Usually organizations follow three kinds of structure:

1. Simple Structure: These are structures with low degree of departmentalization and a
wide span of control.
2. Functional Structure: Functional structure consists of units or departmental groups
identified by specialty such as marketing, finance, sells all human resources that are
control from the top level of management.
3. Divisional Structure: Organized around products, projects, markets.

Divisional structure of EXIM Bank ltd

Head Office

General Establishment Credit International Law &

Service and Business Division Banking Recovery
division division Division Division

Financial Import General Export

Administration Credit Credit credit
Division Division Division Division

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Organizational structure of EXIM Bank ltd

Managing Director

Divisional Head Head of Human Resources Chief Financial Officer

Head of General General HR General Manager Finance

Marketing Manager IT Manager Credit Department

Brand & A& P (advertising & Billing Planning Account Receivable

promotion)
Value Added Loans & Advantages Account Payable
Product Development
Services (VAS) Infrastructure Core Account
Marketing Research & MIS
Customer Relationship Property Revenue
Corporate Sales Management (CSR)
Management Assurance
Direct Sales Product Configuration
Corporate
Dealer Management
Finance Taxation

Reporting

Costing

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Directing and controlling

The management approach in EXIM Bank is top-down or authoritative. Information just

seeks through lower management layer. Works are designed in such a way that cannot leave
without clearing the tasks as he is assigned for a day. Sitting Management in all office is done
in way that the superior can monitor the subordinate can all time. Budgeting, rewarding,
punishing etc. are also practiced as control mechanism.

Human resource Practices in EXIM Bank

Employees are the core resources of any organization. Without them, one cannot run their
organization. And, human resource is concerned with the growth and development of people
toward higher level of competency, creativity and fulfillment. It help employees become
better more responsible person and then it tries to create a climate in which they contribute to
the limits of their improved abilities. It assumes that expanded capabilities and opportunities
for people will lead directly to improvements in operating effectiveness. Essentially, the
human resource approach means that people achieve better result.

Recruitment

The set-vice rule of EXIM Bank states the recruitment policy of the bank. In general the
board of directors determines the recruitment policy of bank from time to time. The minimum
entry level qualification for any official position other than supportive management is a
Bachelors degree. However, informally the management prefers a minimum masters degree
or MBA degree for the appointed of probationary officers in the Executive officer position.
The recruitment for entry level positions begins with a formal written test which is conducted
and supervised by the Institute of Business Administration, University of Dhaka. After
successful completion of the written test, a personal interview is conducted for the successful
candidates by a panel of experts comprising of renowned and prominent bankers of the
country.

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Motivation

Motivation is a psychological process through which unsatisfied wants or needs lead to drives
that are aimed at goals or incentives. Motivation is an important part in the entire progress of
an effective management. Every workers of higher level or lower level of management has
the ability to perform their duty neatly and effectively. But lacks of proper motivation keep
them away from showing their caliber. Proper motivation and utilization of the motivating
factors can help an organization to achieve their set target or goal.

That leads to- That results in-

Motivation is the Choice of behavior Some level of job

psychological performance
process

For managerial efficiency EXIM Bank ltd motivates its eligible officer by promotion,
carrier growth, training, incentive, loan facilities, profit sharing, house rent facilities, job
enrichment and increment. For man power retention EXIM Bank awarded gold medal to 100
employees for their performance.

Risk Management of EXIM Bank:

There are some strategic, operational and legal issues that EXIM Bank faces. Most of these
problems are associated with activities related to granting of loans and advances. The
granting of advances is one of the most important functions of a bank and the test of Bank
strength of advances is one of the most important functions of a bank and the test of bank
strength considerably on the quality of its advances and proportion they bear to the total
deposit. Although receipt from exchange, commission and bank charges contribute a fair
amount of the profits or commercial bank, its earning are chiefly derived from interest
charged on loans and discounts. Traditionally banks have been following three cardinal
principles of lending. They are safety, liquidity and profitability.

The most pertinent and prime part of the process is assessment of risk of failure to repay
deals with overall lending risk combining

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Business Risks
Financial Risks
Management Risks
Security Risks
Environmental Risks

The following basic aspects are taken into consideration as issues regarding strategic,
operational and legal aspects.

Business risk: The business risk of EXIM Bank is customer based, hence its characteristics
constitute to business risk. If the analyzing of the suppliers bargaining power, reliability,
availability and source of supply is not properly done the business will become weak.

Besides, there is production risk involves production capacity, plant and equipment
efficiency, technological advances, labor relations etc. Another risk faced by the bank is
industry trend that involves market size and its nature, rivalry among industries etc.

Financial Risk: The financial risk faced by EXIM Bank is related to the viability of the
proposed project in terms of its operation in the future year and its financial soundness.

Management Risk: Implementing the credit policy adequately before extending a credit
depends highly on the promoters integrity, experience, competency, commitment, and their
capabilities.

Management risk involves:

Higher degree of employee turnover

Inefficient financial control

Lack of willingness to adapt the changing situation

Unaware of different market positions.

Security risk: Security risk refers to inadequacy of collateral offered and supported by
liquidation analysis in terms of marketability, valuations of security and legal issues. It is the
risk that the bank falls to realize the security. Security risks of EXIM Bank involve:

Obtaining a favorable judgment

Perfection level of security documents

Getting possession of security

Realized security value may be less than exposure

Increasing duration of liquidation process

Environmental/Economic Risk: A project may be judge from the larger social point of
view. It includes: Dangerous chemical liquid, such projects may be considered as

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environment unfriendly. Large industries may pollute air and water by the residue like gas
and other.

Conclusion

EXIM Bank is one of the third generation Banking service providers. It is committed to
provide high quality financial service /products to contribute to the growth of the country
through stimulating trade and commerce, accelerating the pace of industrialization, boosting
up export, creating employment opportunity for the educated youth, poverty alleviation,
raising standard of living of limited income group and over \all sustainable socio- economic
development of the country.

Though the bank is new, it makes a strong position in various activities. The bank has a
vision to be the best private commercial bank in Bangladesh in terms of efficiency, capital
adequacy, asset quality, sound management.

EXIM Bank must use different types of strategy and managerial activities to cope with the
environment and sustain among the competitors. They must also analyze on the domestic
scenario closely and analyze any certain trends and strategies of their competitors. The bank
must accept the failures and must look forward to playing an important role in our economy.

Recommendations

We would like propose some suggestions to overcome the problems relative to the
management improvement.

1. Now a days world is going very fast. Now most of the banks provide online customer
service system. So in order to compete in the world market they should adopt online
banking system.
2. Delegation of authority should be made enough to make the speed of providing
service fast.
3. Internal conflicts among the employees should be mitigated.
4. Increase the adequate number of supervision by the high official to improve the
foreign exchange services.
5. The recruitment process is very lengthy and expensive. The Bank should reexamine
the salary structure of the employees which may attract fresher and help to improve
the productivity of existing employees.

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BIBLIOGRAPHY

1. Annual report 2009 of EXIM Bank ltd.

2. Brochures of EXIM Bank ltd.
3. Files and Research papers of EXIM Bank ltd.
4. MANAGEMENT 5TH Edition
Robbins P. Stephen
San Diego State University
Coulter Mary
Southeast Missouri State University
1996 by prentice-Hall,Inc.
5. MANAGEMENT 9th Edition.
Griffin Ricky W.
Texas A & M University
Copyright 2008 by Houghton Mifflin Company. All rights reserved.
6. www.eximbankbd.com
7. www.ask.com

THE END

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