Foreign Exchange Performance: An Evaluation of National Bank Ltd, Islampur Branch

AN INTERNSHIP REPORT

ON

“Foreign Exchange Performance: An Evaluation of National Bank Ltd.

Islampur Branch”

Submitted To,

Department of Finance,

Jagannath University, Dhaka

This report is submitted to The Business Studies Faculty in partial fulfillment of

the requirements for the degree of Bachelor of Business Administration ( )

Ja


Date of submission: 15 May, 2014

“Foreign Exchange Performance: An Evaluation of National Bank Ltd. Islampur Branch”

D e p a r t m e n t o f F i n a n c e . J a g a n n a t h U n i v e r s i t y , D h a k a

Page ii

of

Under the supervision of

Md. Sogir Hossain Khandoker Associate Professor

Department of Finance Jagannath University, Dhaka

Submitted by

Uttam Golder ID: 105-211

Reg. No: 1001335209 4th Year 2nd Semester Session: 2009-2010

Department of finance Jagannath University, Dhaka



Page iii

Letter of Transmittal

15 May, 2014 Md. Sogir Hossain Khandoker

Associate Professor

Department of Finance


Subject: Submission of Internship report

Dear Sir,

With due respect, I would like to state that it is a matter of great pleasure and honner for me to submit

my internship report on “Foreign Exchange Performance: An Evaluation of National Bank Ltd. Islampur

Branch” assigined as my topic of internship. In preparation of this report I have followed and

maintained the formate and rulles of a formal internship report as instructed by you. The internship

programe gave me the opportunities to have an insight on the Banking sector of Bangladesh through

National Bank Ltd.

The Consignment was of great worth and apple, as it helped me to increase my analitical skills and

practical knowedge in the field of alternative Delivery channels and helped me become falilarized with

the corporate world. I have tried heart and soul to make the report effective and usefull. To prepare the

report I have collected what I believe to be most relevant information to make my report as analytical

and reliable as possible. I have concentrated my best effort to achieve the objectives of the report and

hope that my endeavor will serve the purpose. The practical knowledge and experience gathered during

my report preparation will help in my future professional life.

I would really be grateful if you enlighten me with your thoughts and views regarding the report. Also, if

you wish to enquire about an aspect of my report, I would gladly answer your queries. Thank you.

Sincerely Yours

…………………………..

Uttam Golder

ID: 105-211

Reg. No: 1001335209

4th Year 2nd Semester





Page iv

Supervisors Declaration

I am very pleased to declare that Uttam Golder, Registration No 1001335209, 4th year 2nd semester,

Department of Finance, Jagannath University, Dhaka has been given with the topic “Foreign Exchange

Performance: An Evaluation of National Bank Ltd. Islampur Branch” for researching and writing an

internship report on the subject. He has reviewed all the relevant literature and has been surveyed

practically in Islampur Branch National Bank, for three months to collect both of primary and secondary

data. I have supervised him throughout the preparation of the internship paper.

I also certify that the internship paper is an original one and has not been submitted elsewhere

previously for publication in any form.

He is wished all the best in his effort.

…………………………….

Md. Sogir Hossain Khandoker

Associate Professor





Page v

Student Declaration

I declare that the report entitled “Foreign Exchange Performance: An Evaluation of National Bank Ltd.

Islampur Branch”, submitted as requirements of BBA of Jagannath University, Dhaka, was prepared by

me. I was tried my best to collect necessary information that made the report unique and original. I may

assure you that the report was uniquely prepared by me.

…………………………

Uttam Golder

ID: 105-211

Reg. No: 1001335209

4th Year 2nd Semester





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Bank Certificate



Page vii

Preface

This report is the ending stone of our BBA Program and has the aim to enhance the capability to study in

the field of practical organizational arena. The BBA Program under Jagannath University is the

combination of theoretical and practical knowledge. In this theory we went across the different aspects

of operation of administration. There we have got the idea about business strategy, policy, risk,

management capabilities, and problems in operating administration and day-to-day business functions

along with the premedical measures for some problems etc. As consequences of such gathering we are

to acquire the practical knowledge ourselves in any organizational environment.

The student of BBA program is to conduct an internship program under an institution for certain period

of time so that they can justify the practicality of the theoretical knowledge they have learned in their

academic classes.

Since the program is providing a huge benefits for the students, this program is to be structured in a

more organized way and to get the supreme benefit from such program the time dimension is to be

enhanced as the organization is a new environment for every one and to be settled there it takes few

days and for which the students are deprived of getting practical knowledge which they have gone for.

But it is damn true that this program of course provide a great help in building career on the basis of

their academic knowledge.



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Acknowledgement

At the very beginning I would like to express my deepest gratitude to the almighty GOD for giving me

the strength and capability to continue my everyday tasks both inside and outside the workplace during

the whole period of my internship program to finish the task within the scheduled time. I would like to

thank my honorable supervisor Md. Sogir Hossain Khandoker, Associate Professor, Department of

Finance, Jagannath University, Dhaka, for guiding me throughout the course of my BBA internship

program.

My deepest appreciation and special thanks goes to Business Administration department of Jagannath

University, Dhaka for providing me an opportunity to come closer to the real world and help me in

enriching my knowledge.

I also express my warm gratitude and cordial thanks to the management and officials of National Bank

ltd. Of Islampur Branch who have given me the opportunity to work with them and helped a lot by

providing the information and enabling me to prepare this report. I have received their generous help

and support. If I don’t mention some names of the staffs of National Bank Limited, Islampur branch, my

acknowledgement will be uncompleted.

In this connection, I Would like to take chance to give thanks to all the employees of NBL, Islampur

Branch, specially Manager & VP Mr. Moinul Islam, Asst. Vice President Mr. Kamol Chandra Roy and, Md.

Tanzilur Rahaman as well as Mizanur Rahaman Chawdhory and Senior Principal officer Md. Jahangir

Alom as well as Md. Kabir Chowdhury. I also great full to Senior Executive Officer Md. Akram Hossain

and principal officer Md. Abduz Zahar as well as Mohammad Arafat Rahaman, Executive officer . I am

providing thanks to all of my other collogue of Islampur branch for helping me to complete not only this

report but also whole BBA Program. For their suggestions and comments which inspired me greatly to

prepare the report successfully and their heartiest co-operation which makes my destination easier.

I would like to take the opportunity to express my wholehearted gratitude to my fellow friends, near

and dear ones who offered encouragement, information, inspiration and assistance during the course of

constructing this report.

Then at last I shall be grateful to those persons who read this report and who shall get benefit from this

report at present and future.



Page ix

Abbreviation

NBL National Bank Limited

AD Authorized Dealer

ATM Automated Teller Machine.

BB Bangladesh Bank

BOE Bill of Exchange

B/L Bill of Lading

CCI & E Chief Controller of Import & Export

CFR Cost & Freight

CIF Cost Insurance & Freight

DD Demand Draft

DP Note DP Note

EFT Electronic Fund Transfer

EPB Export promotion Bureau

EXP Export Form

FC Foreign Currency

FDD Foreign Demand Draft

FE Federal Exchange.

FRD Foreign Remittance Department

F.R.P.P Foreign Remittance Payment Project.

FOB Free On board

IBTA Inter Bank Transaction Account.

IBC Inward Bills for Collection

IMP Import Form

IRC Import Registration Certificate

L/C Letter of Credit

LCAF Letter of Credit Authorization Form

MG MoneyGram International

MIS Management Information System

MTO Money Transfer Organization.

OBC Outward bills for Collection

PAD Payment Against Document

PO Payment Order

POS Point of Sales

RPP Remittance Payment partnership.

TIN Tax Identification Number

TT Telegraphic Transfer



Page x

Executive Summary

Banking sector helps to build an important segment of the financial infrastructure of a nation. Today

banking has become the most essential parts of our life and the central driving force of every economy.

Most of the financial transactions are now being made through the bank. Worldwide, banks have

become the center points of the economy and Bangladesh is no exception. Banks are playing vital role in

our economy. As a first phase of gathering practical knowledge about Modern Banking I have done

internship at National Bank Limited, Islampur branch where my concerned area was foreign exchange

activities.

The objective of this report is to analyze and evaluate its Foreign Exchange performance. There are nine

chapters in my report. Background of the study is the first part. It deals with introduction, origin of the

report, rationalities of the report, statement of problems, objective, scope and limitations of the report.

The second part is methodology of the report. It describes in what way the report is prepared. Here the

NBL, Islampur branch is selected because of convenient facilities. The total Branches of NBL are taken as

population and sample is Islampur branch. To calculate the performance of NBL, Islampur branch, SPSS,

Microsoft office, Chart and graph are used.

The third part is job description. In foreign exchange department, the employees generally open L/C,

register PAD, open back to back L/C. Fourth part is Background of the company. Here there is

description about the mission, vision, objective, Capital structure and services of the company.

The fifth part is important. It is about foreign exchange department. It contains discussion about foreign

exchange, significance of FX, function of foreign exchange department, Rules of FX, import, import

procedure, opening of L/C, types of L/C, back to back L/C, eligibility of opening back to back L/C. export,

export method, export formalities, financial incentives given by NBL, remittance and there types.

The sixth part is much more important than others. It is the analytical part. From this part we can know

the actual objective of the report. Generally the earnings of foreign exchange department come from

import, export and remittance. But which section is contributes most? Here the import earnings affect

most in the bank’s profitability from foreign exchange. The next six month’s forecasted import, export

and remittance can be found here.

The seventh part is about case. Eighth chapter describes about SWOT and PEST analysis. SWOT identifies

the strength, weakness, opportunities and threats of the company. On the other hand PEST describes

the external macro-environment e.g. political, economic, social and technological. Chapter nine which is

the last chapter of the report describes findings, recommendation, and conclusion and after that there is

appendix.

I hope that National Bank Ltd, Islampur branch may improve the operation in Bangladesh in future.



Page xi

Letter of Transmittal ------------------------------------------------------------------------------------------------------------- iii

Supervisors Declaration --------------------------------------------------------------------------------------------------------- iv

Student Declaration--------------------------------------------------------------------------------------------------------------- v

Bank Certificate ------------------------------------------------------------------------------------------------------------------- vi

Preface ----------------------------------------------------------------------------------------------------------------------------- vii

Acknowledgement ------------------------------------------------------------------------------------------------------------- viii

Abbreviation ----------------------------------------------------------------------------------------------------------------------- ix

Executive Summary --------------------------------------------------------------------------------------------------------------- x

1 Background of the Study ----------------------------------------------------------------------------------------------------- 2

1.1 Introduction of the Study ---------------------------------------------------------------------------------------------- 2

1.2 Literature Review -------------------------------------------------------------------------------------------------------- 2

1.3 Origin of the Report ----------------------------------------------------------------------------------------------------- 3

1.4 Rationality of the Study ------------------------------------------------------------------------------------------------- 3

1.5 Statement of Problems ------------------------------------------------------------------------------------------------- 3

1.6 Objective of the Report ------------------------------------------------------------------------------------------------- 4

1.6.1 General Objective -------------------------------------------------------------------------------------------------- 4

1.6.1 Specific Objective --------------------------------------------------------------------------------------------------- 4

1.7 Scope of the Report ----------------------------------------------------------------------------------------------------- 4

1.8 Limitations of the Report ----------------------------------------------------------------------------------------------- 5

2 Methodology of the Study --------------------------------------------------------------------------------------------------- 7

2.1 Introduction --------------------------------------------------------------------------------------------------------------- 7

2.2 Selection of the Study Area -------------------------------------------------------------------------------------------- 7

2.3 Population ----------------------------------------------------------------------------------------------------------------- 7

2.4 Sampling Unit ------------------------------------------------------------------------------------------------------------- 7

2.5 Sampling method -------------------------------------------------------------------------------------------------------- 7

2.6 Sources of data ----------------------------------------------------------------------------------------------------------- 7

2.6.1 Primary data --------------------------------------------------------------------------------------------------------- 7

Table of Contents



Page xii

2.6.2 Secondary Data ----------------------------------------------------------------------------------------------------- 8

2.7 Analytical tools and software ----------------------------------------------------------------------------------------- 8

2.8 Study Timeline and Cost ------------------------------------------------------------------------------------------------ 9

2.9 List of the clients of National Bank Islampur Branch Foreign Exchange Department ------------------- 9

3 Job Description- NBL --------------------------------------------------------------------------------------------------------- 11

3.1 The Job Description ----------------------------------------------------------------------------------------------------- 11

3.1.1 General Banking --------------------------------------------------------------------------------------------------- 11

3.1.2 Foreign Exchange -------------------------------------------------------------------------------------------------- 11

3.2 Specific Responsibility of the Job ------------------------------------------------------------------------------------ 11

3.3 Personal Experience ---------------------------------------------------------------------------------------------------- 12

3.4 Different aspects of job Performance ------------------------------------------------------------------------------ 12

3.5 Critical Observation ----------------------------------------------------------------------------------------------------- 12

4 Background of the Company ----------------------------------------------------------------------------------------------- 14

4.1 History of the national Bank ------------------------------------------------------------------------------------------ 14

4.2 Branch Profile ------------------------------------------------------------------------------------------------------------ 15

4.3 NBL at a Glance ---------------------------------------------------------------------------------------------------------- 15

4.4 Objectives of the Company ------------------------------------------------------------------------------------------- 15

4.5 Corporate Mission of NBL --------------------------------------------------------------------------------------------- 16

4.6 Corporate Vision of NBL ----------------------------------------------------------------------------------------------- 17

4.7 Corporate Values of NBL ---------------------------------------------------------------------------------------------- 17

4.8 Corporate Slogan of NBL ---------------------------------------------------------------------------------------------- 17

4.9 Logo of NBL --------------------------------------------------------------------------------------------------------------- 17

4.10 Features of NBL -------------------------------------------------------------------------------------------------------- 18

4.11 Policy and Performance ---------------------------------------------------------------------------------------------- 18

4.12 Markets and Target Customer ------------------------------------------------------------------------------------- 18

4.13 Sponsors of NBL -------------------------------------------------------------------------------------------------------- 19

4.14 Business Ideology ------------------------------------------------------------------------------------------------------ 19

4.15 National Bank Foundation ------------------------------------------------------------------------------------------- 19

4.16 Organizational Strategy ---------------------------------------------------------------------------------------------- 19

4.17 Training Institute------------------------------------------------------------------------------------------------------- 19

4.18 Organizational Structure --------------------------------------------------------------------------------------------- 20

4.19 Operational Network ------------------------------------------------------------------------------------------------- 21



Page xiii

4.20 Management Structure of NBL ------------------------------------------------------------------------------------- 21

4.21 Services of NBL --------------------------------------------------------------------------------------------------------- 22

4.22 Awards and Recognitions -------------------------------------------------------------------------------------------- 22

4.23 Departments of NBL -------------------------------------------------------------------------------------------------- 22

4.24 Head Office -------------------------------------------------------------------------------------------------------------- 23

4.25 Capital Structure ------------------------------------------------------------------------------------------------------- 23

4.26 Operations -------------------------------------------------------------------------------------------------------------- 24

4.27 Credit rating of NBL --------------------------------------------------------------------------------------------------- 24

4.28 Social Responsibility -------------------------------------------------------------------------------------------------- 25

5 Foreign Exchange Department -------------------------------------------------------------------------------------------- 27

5.1 Foreign Exchange -------------------------------------------------------------------------------------------------------- 27

5.2 Significance of Foreign Exchange ------------------------------------------------------------------------------------ 27

5.3 Foreign Exchange Department of NBL ----------------------------------------------------------------------------- 27

5.3.1 Import Section------------------------------------------------------------------------------------------------------ 28

5.3.2 Export Section ------------------------------------------------------------------------------------------------------ 28

5.3.3 Foreign Remittance Section ------------------------------------------------------------------------------------- 28

5.4 Functions of Foreign Exchange Department---------------------------------------------------------------------- 29

5.5 Foreign Exchange Regulations Followed by NBL, Islampur Branch ----------------------------------------- 29

5.5.1 Local Regulations -------------------------------------------------------------------------------------------------- 29

5.5.2 International Regulations ---------------------------------------------------------------------------------------- 29

5.6 Import ---------------------------------------------------------------------------------------------------------------------- 29

5.6.1 Import Regulations followed by NBL ------------------------------------------------------------------------- 30

5.6.2 Procedure of Import Registration Certificate (IRC) -------------------------------------------------------- 30

5.6.3 Methods of Importing -------------------------------------------------------------------------------------------- 30

5.6.4 Letter of Credit ----------------------------------------------------------------------------------------------- 32

5.6.5 Types of L/C --------------------------------------------------------------------------------------------------------- 32

5.6.6 Back-to-Back Letter of Credit (BTB) --------------------------------------------------------------------------- 33

5.6.7 Procedure involved in L/C opening---------------------------------------------------------------------------- 34

5.6.8 Letter of Credit (L/C) Transmitting ---------------------------------------------------------------------------- 34

5.6.9 Examination of Documents ------------------------------------------------------------------------------------- 35

5.6.10 Scrutiny of the Documents ------------------------------------------------------------------------------------ 35

5.6.11 Retirement of shipping documents ------------------------------------------------------------------------- 35



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5.7 Export ---------------------------------------------------------------------------------------------------------------------- 35

5.7.1 Method of Export -------------------------------------------------------------------------------------------------- 36

5.7.2 Things Done in Export -------------------------------------------------------------------------------------------- 36

5.7.3 Export Formalities ------------------------------------------------------------------------------------------------- 37

5.7.4 Export Procedure -------------------------------------------------------------------------------------------------- 38

5.7.5 Financial Incentives given by National Bank Ltd ----------------------------------------------------------- 39

5.7.6 Foreign document bill of collection (FDBC) ----------------------------------------------------------------- 39

5.8 Remittance ---------------------------------------------------------------------------------------------------------------- 40

5.8.1 Inward Remittance ------------------------------------------------------------------------------------------------ 40

5.8.2 Outward Remittance --------------------------------------------------------------------------------------------- 41

6 Analytical Parts ---------------------------------------------------------------------------------------------------------------- 44

6.1 Regression Analysis ----------------------------------------------------------------------------------------------------- 44

6.2 Growth Analysis --------------------------------------------------------------------------------------------------------- 65

6.3 Time series analysis ----------------------------------------------------------------------------------------------------- 68

Case --------------------------------------------------------------------------------------------------------------------------------- 72

8 SWOT and PEST Analysis of NBL ------------------------------------------------------------------------------------------- 75

8.1 SWOT Analysis of the organization --------------------------------------------------------------------------------- 75

8.1.1 Strengths of the organization ---------------------------------------------------------------------------------- 75

8.1.2 Weakness of the organization ---------------------------------------------------------------------------------- 75

8.1.3 Opportunities of the organization ----------------------------------------------------------------------------- 76

8.1.4 Threats of the organization ------------------------------------------------------------------------------------- 76

8.2 Converting Threats into Opportunities ---------------------------------------------------------------------------- 76

8.3 Converting Weakness into Strength -------------------------------------------------------------------------------- 76

8.4 PEST Analysis ------------------------------------------------------------------------------------------------------------- 76

9 Findings & Recommendations of the Report--------------------------------------------------------------------------- 79

9.1 Findings -------------------------------------------------------------------------------------------------------------------- 79

9.2 Recommendations ------------------------------------------------------------------------------------------------------ 79

9.3 Conclusion ---------------------------------------------------------------------------------------------------------------- 80

9.4 Bibliography -------------------------------------------------------------------------------------------------------------- 80

9.5 Reference ----------------------------------------------------------------------------------------------------------------- 81

9.6 Appendix ------------------------------------------------------------------------------------------------------------------ 82



Page xv

List of Table

Table 1 Study Timeline --------------------------------------------------------------------------------------------------------------------------- 9

Table 2 Branch Profile -------------------------------------------------------------------------------------------------------------------------- 15

Table 3 NBL at a Glance ----------------------------------------------------------------------------------------------------------------------- 15

Table 4 Capital Structure of NBL ------------------------------------------------------------------------------------------------------------- 23

Table 5 Functions of Foreign Exchange Department ----------------------------------------------------------------------------------- 29

Table 6 Import of NBL, Islampur Branch--------------------------------------------------------------------------------------------------- 31

Table 7 Export of NBL, Islampur Branch --------------------------------------------------------------------------------------------------- 37

Table 8 Export of NBL, Islampur Branch --------------------------------------------------------------------------------------------------- 41

Table 9 Summery Data on Regression Analysis ------------------------------------------------------------------------------------------ 57

Table 10 Summary Data on Regression analysis ---------------------------------------------------------------------------------------- 64

List of Figure

Figure 1 Methodology Framework ................................................................................................................................ 8

Figure 2 Objective Diagram ......................................................................................................................................... 16

Figure 3 Organizational Structure................................................................................................................................ 20

Figure 4 Operational Network ..................................................................................................................................... 21

Figure 5 Services of NBL ............................................................................................................................................... 22

Figure 6 Credit Rating of NBL ....................................................................................................................................... 24

Figure 7 Foreign Exchange Department ...................................................................................................................... 28

Figure 8 Method of Importing ..................................................................................................................................... 31

Figure 9 Import of NBL, Islampur Branch ..................................................................................................................... 32

Figure 10 Export Method ............................................................................................................................................. 36

Figure 11 Export of NBL, Islampur Branch ................................................................................................................... 38

Figure 12 Export of NBL, Islampur Branch ................................................................................................................... 42

Figure 13 Growth Rate of Import ................................................................................................................................. 65

Figure 14 Growth Rate of Export ................................................................................................................................. 66

Figure 15 Growth Rate of Remittance ......................................................................................................................... 67

Figure 16 Time Series Plot of Import ............................................................................................................................ 68

Figure 17 Time Series Plot of Export ............................................................................................................................ 69

Figure 18 Time Series Plot of Remittance .................................................................................................................... 70

Figure 19 SWOT Analysis ............................................................................................................................................. 75

Figure 20 PEST Analysis ............................................................................................................................................... 77



Page 1

(𝑩𝒂𝒄𝒌𝒈𝒓𝒐𝒖𝒏𝒅 𝒐𝒇 𝒕𝒉𝒆 𝑺𝒕𝒖𝒅𝒚)



Page 2

1 Background of the Study

1.1 Introduction of the Study Bank can be defined as life blood in a financial system of a country. It plays a pivotal role in the

economic development of a country and forms the core of the money market in an advanced country.

The prime objective of the banking industry as a whole is to collect deposits from the public and to

invest the same in the form of loans and advances to businesses.

Early banking system served mainly as depositors for funds, while the more modern system has

considered the foreign Exchange as their one of the main purpose. A Bank not only accepts money or

deposits, but it also helps in doing export and import as well as in remittance.

National Bank Limited (NBL) is a banking company incorporated in the People’s Republic of Bangladesh

with limited liability. National Bank Limited is always ready to maintain the highest quality services by

upgrading Banking technology prudence in manage and applying high standard of business ethics

through its established commitment and heritage. Objectives of a private institution like NBL are to

maximize profit through optimum utilization of resources by providing best customer’s service.

Foreign remittance has an important influence on the economic factor of Bangladesh. It has a great

impact in our national economy more specifically in our GDP (Gross domestic production). The

Bangladeshi workers and migrants in different parts of the world are source of a substantial inflow of

foreign currencies (Known as remittance) in Bangladesh. This inflow helps Bangladesh to face the recent

economic crisis worldwide

This report is an outcome of three months career at National Bank Ltd. prepared as the partial

requirement of BBA program, department of finance, Jagannath University, Dhaka. The topic of the

report is “Foreign Exchange Performance: An Evaluation of National Bank Ltd. Islampur Branch”

During three months intensive internship program, an approach has been taken to get an inside out

scenario of Foreign Exchange Activities of National Bank Limited.

1.2 Literature Review This report is all about foreign exchange performance of NBL, Islampur branch. For preparing this report

I have studied a lot on foreign exchange. I have searched this topic on internet. I have got different

reports, journals and publications about foreign exchange. I also took interview from my bank

employees. All of we know that today is the world of globalization. On nation can produce all the goods

and services which are necessary for it. So international trade is necessary. But in international trade

there is currency problem. So foreign exchange is necessary. It helps to convert one countries currency

into another.

According to, Investopedia, The exchange of one currency for another, or the conversion of one currency

into another currency. Foreign exchange also refers to the global market where currencies are traded

virtually around-the-clock. The term foreign exchange is usually abbreviated as "forex" and occasionally

as "FX." Foreign exchange, or Forex, is the conversion of one country's currency into that of another.



Page 3

According to BusinessDictionary.com, Any currency other than the local currency which is used in

settling international transactions called foreign currency. It is the System of trading in and converting

the currency of one country into that of another.

1.3 Origin of the Report Now a day, education is not just limited to books and classrooms. In today’s world, education is the tool

to understand the real world and apply knowledge for the betterment of the society as well as business.

In today’s world only academic education does not make a student perfect to become competitive with

the outside world. A perfect consideration between theory and practice is important in the context of

modern business world. Internship is highly needed to gain idea, knowledge and experience. From this

internship program students get the opportunity to learn facing the real business world. This report is an

internship report prepared as a requirement for the completion of BBA Program (Major in Finance) of

Jagannath University.

Bachelor of Business Administration (BBA) Course requires a three months attachment with an

organization followed by a report assigned by the supervisor. I took the opportunity to do my internship

in National Bank Limited, Islampur Branch. Actually this is a feedback which department accepts from

the students who join in an organization after the completion of theoretical part of the BBA program.

My faculty supervisor Md. Sogir Hossain Khandoker, associate Professor, department of Finance,

Jagannath University, Dhaka, instructed me to prepare a report on “Foreign Exchange Performance: An

Evaluation of National Bank Ltd. Islampur Branch” as part of the fulfillment of internship requirement.

1.4 Rationality of the Study The purpose of this report is to get a basic idea about the foreign exchange system, which is practiced

in our country. Banking is a vast term and through this report I have tried to analyze some crucial topics

regarding foreign exchange system. Foreign exchange is an important department of National Bank

Limited, which deals with import, export and foreign remittances. It bridges between importers and

exporters. This department is playing an important role in enhancing export earnings, which aids

economic growth and in turn it helps for the economic development. On the other hand, it also helps to

meet those goods and service, which are most demandable and not adequate in our country. Foreign

exchange operation is one of the important functions of the bank. It plays a vital role in overall economy

of the country. There are basically three players in the foreign exchange market of Bangladesh. Those

are the Bangladesh Bank, authorized dealers, and customers. This paper discussed regarding the related

issues of foreign exchange performances and bank profitability of National Bank Ltd.

1.5 Statement of Problems I was very much interested about the foreign exchange system of bank that is practiced in our country.

In order to know the activities related with foreign exchange system I chose the topic as “Foreign

Exchange Performance: An Evaluation of National Bank Ltd. Islampur Branch”. Globalization of national

economies has given a boost to international trade. Through foreign services bank make their profits so

this study discuss how National bank foreign exchange department performed and bank would be

profitable. The study seeks answers to the following questions:



Page 4

Is foreign exchange department of NBL is up to date?

How Foreign exchange department help to achieve the goal of NBL?

Does foreign exchange department performed effectively?

1.6 Objective of the Report The main objective of the internship program is to formalize me with the real market situation and help

me learn how bookish concepts are used in the real market. Therefore, from the very beginning of the

study I have tried my level best to conduct my internship with a view to achieve some specific objectives

and I have gone across the various department of the bank to acquire some related information and

functioning procedure regarding those department. The objective of the study may be viewed as:

General objective

Specific objective

1.6.1 General Objective

The primary or general objective of my internship program is to gain practical work experience in the

field of Banking Business that helps me to complete my BBA program required under Department of

Finance, Jagannath University. The general objective of this report is to prepare an internship report

based on both the real life experience and the theoretical experiences on the topic of the “Foreign

Exchange Performance: An Evaluation of National Bank Ltd. Islampur Branch”

1.6.1 Specific Objective

Analyze the performance of Branch regarding Foreign Exchange related with bank profitability.

To evaluate the foreign exchange performance of National Bank, Islampur branch.

To forecast the trend of import, export and remittance.

To determine which factor affects much on the earnings from foreign exchange.

To know about the Foreign Exchange Mechanism of the Branch.

To know about the regulations and deregulation regarding Foreign Exchange Business in

Bangladesh.

To find out the problems in the Foreign Exchange department and to provide the possible

solutions for those.

To analyze the export and import procedure maintained by National Bank Limited.

To gain the depth knowledge of import and export portfolio of the Bank.

To know about the various documents and procedures which are used in banking services of

International trade.

To describe the organizational structure, management, background, functions and objectives of

the bank and its contribution to the national economy.

To recommend suggestions for the successful Foreign Exchange Operations of NBL.

1.7 Scope of the Report As I am working in the National Bank Limited, Islampur Branch, I got the opportunity to learn different

part of banking system. This report has been prepared through extensive discussion with bank



Page 5

employees, clients and officers and on the information gathered from the annual report and prospectus

of National Bank Limited. Management of the bank divided the whole banking system in three parts; as

a result I got the opportunity to work in all the three divisions (General Banking Division, Credit Division,

and Foreign Exchange Division). This study consists of the observations and on the job experiences

during the internship period in the Foreign Exchange Departments. While preparing this report I had an

opportunity to gain deep knowledge about the banking services and foreign exchange department. I

have also come through different managerial personalities while conducting the research. The report

will illustrate a basic reflection of overall activities regarding Import and Export Procedure under Letter

of Credit.

1.8 Limitations of the Report Earlier of this report some obstacles have come across, which can be termed as the limitation of the

project, these reasons did not allow this report to go in depth of issues hence several parts of the report

is not concentrated. The main problem faced in preparing the paper was the inadequacy and lack of

availability of required data.

Data Insufficiency: It was very difficult to collect data from such a big organization.

Lack of Records: Sufficient books, publications, facts and figures are not available. These

constraints narrowed the scope of accurate analysis

Confidential matter: It is not possible to get all sorts of information due to official

confidentiality.

Face-to-face interviews: Major part of the report is based on the face-to-face interviews, which

consists of views and opinions of those people. In some cases some of them were not able to

provide real facts or figures. In this case as well some assumptions had to be made.

Websites: The website of the bank is not provided enough information.

Inconsistent: Data from different sources were quite inconsistent which created some problems

in making the report.

Limitation of time: Limitation of time was one of the most important factors that shortened the

present study. Due to time constraints, many aspects could not be discussed in the present

study.

Rush hours and business: Rush hours and business was another reason that acts as an obstacle

while gathering data. The officers were quite busy with their regular activities

Primary sources of data: I had more dependence on the primary sources, so there might be

some level of inaccuracy with those collected information.



Page 6

𝑴𝒆𝒕𝒉𝒐𝒅𝒐𝒍𝒐𝒈𝒚 𝒐𝒇 𝒕𝒉𝒆 𝑺𝒕𝒖𝒅𝒚



Page 7

2 Methodology of the Study

2.1 Introduction This report is mainly prepared by the secondary sources of information and some few primary sources

of information. The research was an investigative approach and data collection and analysis are

qualitative in nature. For this purpose, different recognized census, government rules, regulations,

policies, and laws, newspapers, national and international journals, periodicals have been consulted.

Besides this, Internet has been widely used.

2.2 Selection of the Study Area The area of the study was Islampur Branch of National Bank Ltd. The Islampur Branch of National Bank

was selected because of easiest communication, comfortable workplace, fully computerized accounts

maintenance, well decorated and air conditioned facilities that helped to collect the information easily.

A fully operational computer network; Local Area Network (LAN) and Wide Area Network (WAN)

installation having reliable and secured communication also helped to collect reliable data.

2.3 Population The report has prepared on “Foreign Exchange Performance: An Evaluation of National Bank Ltd.

Islampur Branch”. Therefore, for the purpose of the study, all the branches of National Bank Limited

have been considered as the population of the study.

2.4 Sampling Unit Only one branch of National Bank Limited has been taken as the sampling unit for the study, i.e.

Islampur branch.

2.5 Sampling method Random sampling method has been used for the purpose of the study.

2.6 Sources of data Source of data of this study can be divided into two categories.

Primary data.

Secondary data.

2.6.1 Primary data

Personal Observation: Observation means the process of recognizing, watching and noting

people and objects rather than asking for information. The advantage of this kind of data

collection is to remove the elements of bias and effect of reaction from research. I always tried

to observe the officers, the staffs and the clients of this department and tried to gather as much

relevant information as possible.



Page 8

Face to face Interview and survey: I have gathered information about the LC process followed

by the bank through interviewing and discussing with the in-charge of Foreign Exchange

department of the branch and I have also talked with the other employees.

Practical Work: I have worked for the Foreign Exchange department mostly when I was an

intern at National Bank Limited. While working there I have tried to collect imperative and

necessary data which I needed to accomplish this report.

2.6.2 Secondary Data

To complete my report along with primary data I need some secondary data related to my topic.

Relevant literature like published and unpublished thesis, books, reports etc. have been reviewed with a

view to increase the knowledge regarding the issue.

I have mainly used:

Annual Report of National Bank Ltd.

Bangladesh Bank Publications,

Website of National Bank Ltd.

Other websites, relevant books, research Papers, and Journals.

Figure 1 Methodology Framework

2.7 Analytical tools and software To make the report more understandable and give a nice look, different analytical tools and software,

such as SPSS have been used to prepare the report. A number of flowchart, graph, table and different

computer software are used.



Page 9

2.8 Study Timeline and Cost

Date Activities

March 05, 2014 Joining as internee at Islampur Branch, National Bank Limited March 10, 2014 Selection of the topic March 13, 2014 Collecting the secondary data from different sources March 15, 2014 Analyzing the secondary data March 17, 2014 Collecting primary data March 25, 2014 Analyzing both primary and secondary data to prepare the report May 09, 2014 Completion of the report May 10,2014 Submission of the draft report May 11, 2014 Correction of the report May 15,2014 Submission of the final report

Table 1 Study Timeline

*Cost of visiting the Bank, stationery cost etc. is little in amount and are not mentionable here.

2.9 List of the clients of National Bank Islampur Branch Foreign Exchange

Department M/S Al hafiz Inler

M/S Asia Electronics

M/S A One Products

M/S Barna Ent.

M/S Bina Fruits Agency

M/S D.H. International

M/S Fatema Fruits

M/S Famous Fruits Agency

M/S Hanif and Brothers

M/S SA Fabrics

M/S Sabuj Ent.

M/S Smrity Ent.

M/S Sonali Traders

M/SShovon Ent.

M/S Suma Traders

M/S Shams Ent.

M/S Sumiya Int.

M/S Super Fabrics Ltd.

M/S zillur Enterprise

M/S Rasel Enterprise

M/S Shadata Fruits

M/S I.P. Electronics

M/S Super Trading

M/S Shukhi Textile

M/S S/K. Ent.

M/S Prince Trading

M/S Noor Zahan Ent.

M/S Orbit Processing Mills Ltd.

M/S Osanic Ent.

M/S Partex Bevanagc



Page 10

(𝑱𝒐𝒃 𝑫𝒆𝒔𝒄𝒓𝒊𝒑𝒕𝒊𝒐𝒏 − 𝑵𝑩𝑳)



Page 11

3 Job Description- NBL

3.1 The Job Description During the internship period at National Bank Ltd, I was placed in different departments on rotation

basis. At first I was in General banking section for two weeks and finally in Foreign Exchange section. So

it was a great experience for me to work in different departments. As an intern of National Bank Ltd I

worked in the Foreign Exchange Division under the supervision of Mohammad Arafat Rahman, Executive

officer.

3.1.1 General Banking

In General banking department I was place in remittance and Public Relationship section. There I did

different jobs which were recommended by my officers. My job descriptions are mentioned below:

Assisting clients to fill up account opening form.

Provide customer’s account and service related information.

Help to write DPS.

Helping officers for preparing Bangladesh bank report.

Entry of cheque.

3.1.2 Foreign Exchange

During my internship period I was placed in foreign exchange departments. My responsibilities are

mentioned below:

Opening L/C: The main task of the foreign exchange department is to help the customer to

import or export. For this reason the customer needs to open L/C. My main duty was to open

that L/C of the customer. I opened L/C for the client by observing PI, Insurance coverage and

Office notes.

PAD Register: PAD means payment against documents. The exporter sends some documents to

the importer by importers bank that is necessary to receive the imported goods. When those

documents are received by the importers bank, it has to pay against those documents. Generally

I had recorded that PAD

Opening Back to back L/C: Back-to-Back L/C is a secondary L/C opened by the seller’s Bank

based on the original/master L/C to purchase the raw materials and accessories for

manufacturing of the export products required by the seller.

IMP Report: At the end of each month every commercial bank sent a report to Bangladesh Bank

on the basis of their import payment during the whole month. Maintain foreign currency

accounts and applying in IPO for them.

3.2 Specific Responsibility of the Job The Specific Responsibility of the Job is as follows:

Maintaining different registers.

Assisting employees in their day to day operations.

Sorting of Cheque, vouchers.



Page 12

Editing of L/C issue statement.

Filling up EXP and IMP forms.

Endorsement of different papers.

Filing different L/C related documents.

Matching month wise L/C and Bills transaction value between server and register.

3.3 Personal Experience I had started working as an intern at National Bank Limited, Islampur Branch on 5th March, 2014.I did not

have any previous experience of working in a bank or in any corporate organization and I was pretty

much worried about the environment. But now, when I am writing about my work experience of

National bank, it feels me really good remembering the days I had worked there.

I mostly worked with the Foreign Exchange Department, in the foreign L/C wing. My direct supervisor

helped me to learn how to put information input in the websites of the National Bank Ltd. Before

working there I had worked in the Public relation desk, when I learnt how to communicate with the

clients.

3.4 Different aspects of job Performance During my three month internship period, I was assigned for different types of task and activities, and by

doing those tasks I achieved performance appraisal from my line task manager.

It helped me to learn banking activities.

It has enhanced my knowledge.

I was able to complete almost every task successfully.

3.5 Critical Observation As a finance student, I always prefer to do a job in a financial organization. I worked for three months in

NBL and I had observed some factors there which need to be changed if the bank wants to prosper

competing with other banks.

There is really little place kept for the cheque receiving desk. During the pick hour there always remains

great rush and it is really impossible to receive cheques of so many people for a single person. Moreover

there is no queue system in this desk, so the customers do not maintain any systematic queue and tries

to get their cheques received before any other person.

Here, the employees are not that much technology conscious. They prefers working manually then by

computer and other new technological stuffs. They do balancing with calculator which is very hard and

time consuming I think the clients of L/C desk are taking services from here for more than 2/3 years and

most of them have a very friendly relationship with the employees. That is why they prefer to work by

themselves and remain roaming in the whole floor of Foreign Exchange Department. This is a little bit

disturbing I think, because they always roam around and works and sometimes try to gossip with the

employees.



Page 13

(𝑩𝒂𝒄𝒌𝒈𝒓𝒐𝒖𝒏𝒅 𝒐𝒇 𝒕𝒉𝒆 𝑪𝒐𝒎𝒑𝒂𝒏𝒚)



Page 14

4 Background of the Company

4.1 History of the national Bank National Bank Limited has its prosperous past, glorious present, prospective future and under

processing projects and activities. Established as the first private sector bank fully owned by Bangladeshi

entrepreneurs, NBL has been flourishing as the largest private sector Bank with the passage of time after

facing many stress and strain. The members of the board of directors are creative businessmen and

leading industrialists of the country.

National Bank Limited is a scheduled commercial Bank followed the bank companies Act, 1991, which

obtained license from Bangladesh Bank and start its business March 28, 1983. National Bank Limited is

one of the leading private commercial Bank.

At present, NBL has been carrying on business through its total 175 service locations (branches and Agri

branches) spread all over the country. Since the very beginning, the bank has exerted much emphasis on

overseas operations and handled a sizable quantum of home bound foreign remittance. It has drawing

arrangements with 415 correspondents in 75 countries of the world, as well as with 37 overseas

Exchange Companies located in 13 countries. NBL was the first domestic bank to establish agency

arrangements with the world famous Western Union in order to facilitate quick and safe remittance of

the valuable foreign exchanges earned by the expatriate Bangladeshi nationals. This has meant that the

emigrants can remit their hard-earned money to the country with much easy way.

National Bank Limited is always ready to maintain the highest quality services by upgrading Banking

technology prudence in manage and applying high standard of business ethics through its established

commitment and heritage. Objectives of a private institution like NBL are to maximize profit through

optimum utilization of resources by providing best customer’s service.

NBL has been able to create a special image at home and abroad by introducing different banking

products in accordance with the expectations requirements of people of the country. NBL was the

pioneer bank to allow back-to-back LC facility without any margin to the entrepreneurs of garment

industry during the Eighties, thereby helping the industry flourish to its present position. This has not

only contributed to enrich of the country’s foreign exchange reserves, but also opened employment

opportunities for a large numbers of labor force of the country. As a pioneer in this sector, NBL’s name

will remain in golden letters.



Page 15

4.2 Branch Profile

Name National Bank Limited, Islampur Branch

Established 1994

Location 15-16 Islampur Road ( )

Total Employee 29

SWIFT Code NBLBBDDH054

Table 2 Branch Profile

4.3 NBL at a Glance

Name National Bank Limited

Status Public Limited Company Date of Incorporation March 29, 1983 Head Office 18 Dilkhusa Commercial Area, Dhaka-1000 Chairman Mr. Zainul Haque Sikder Managing Director Mr. A K M Shafiqur Rahaman Number of Branches 175 Number of Employees 3442 Services Deposit Scheme, Credit Facility, Foreign

Exchanges Diversification of Products and Services Corporate Banking and Retail Banking Technology Member SWIFT, Online Banking, UNIX based

on line Banking E-mail [email protected] Website http://www.nbl.com.bd SWIFT NBLBBDDH

Table 3 NBL at a Glance

4.4 Objectives of the Company The main objective is to maximize profit through customer satisfaction which very much reflects idea of

marketing concept. Objectives may be of three types:

1) Strategic objectives

To achieve and sustain in the domestic leading market position in both customer and

corporate banking sector.

To be one of the top three Financial Institutions in Bangladesh in terms of cost efficiency.

To be market leader in product innovation.



Page 16

2) Financial objectives

To achieve 20% return on shareholders' equity or more, on average.

Ensuring maintenance of capital adequacy and highest profit through successful

implementation of the Management Core Risk Program.

To ensure an adequate rate of return on investment.

To maintain adequate liquidity to meet maturing obligations and commitments.

3) General Objectives

Offering quick and improved clientele services through application of modern

information technology.

Delivered the highest quality services and performances in order that customers choose

them first.

To value and respect the customers and maintain harmonious banker-customer

relationship.

Ensuring highest professional excellence for our workforce through enhancement of

their work efficiency, discipline and technological knowledge.

Maintain the high standard of corporate and business ethics.

Figure 2 Objective Diagram

4.5 Corporate Mission of NBL Efforts for expansion of our activities at home and abroad by adding new dimensions to our banking

services are being continued unabated. Alongside, we are also putting highest priority in ensuring

transparency, accountability, and improved clientele service as well as to our commitment to serve the

society through which we want to get closer and closer to the people of all strata.

Objectives

Strategic

General Financial



Page 17

4.6 Corporate Vision of NBL Ensuring highest standard of clientele services through best application of latest information technology,

making due contribution to the national economy and establishing ourselves firmly at home and abroad

as a front ranking bank of the country are our cherished vision.

4.7 Corporate Values of NBL The NBL has the following core corporate values:

To have a strong customer focus and build relationship based on integrity, superior service and

manual benefit.

To work for business innovation and improvements.

To work as a team to serve the best interests of the group.

To be responsible, trustworthy and law-abiding in every sphere.

To value and respect the people and make decision based on the merit.

By promoting the well-being of the members of the staff.

4.8 Corporate Slogan of NBL A Bank for Performance with Potential

4.9 Logo of NBL



Page 18

4.10 Features of NBL There are so many reasons behind the better performance of NBL than any other newly established

banks:

Highly qualified and efficient professionals manage the bank.

NBL has established a core Research & Planning Division with efficient persons.

The bank has established correspondent relationship with many of foreign banks.

The inner environment and teamwork, of all branches in NBL motivated all experienced

employees to achieve the ultimate object of NBL.

NBL has become a member of the SWIFT system expedite foreign trade transaction.

The bank offers attractive saving rate than other financial institutes.

Along with the profit generation National Bank Limited also maintains social responsibilities.

4.11 Policy and Performance Policy: Those Companies operating in international markets should establish management

policies on foreign exchange. Fluctuations in foreign exchange rates affect the cost

competitiveness, profitability, and valuation of a company’s international operations. Some of

policies of National Bank Limited on the following way-

The Company will hedge its known exposures if it is determined that changes in foreign

exchange rates are to have a material impact on earnings or fair values of assets and

liabilities.

The Company does not use derivative contracts for speculative purposes.

The Company estimates the fair value of derivatives based on quoted market prices and

records all derivatives on the balance sheet at fair value.

Performance: National Bank provides best services to clients by maintaining better performance

on the following way:

In National Bank there are enough highly qualified managers and professionals.

National Bank Limited is maintaining Research & Planning Division with efficient

persons.

The bank has established correspondent relationship with different foreign banks.

4.12 Markets and Target Customer Due to the predecessor Company’s involvement financing sector of the country, the bank inherited its

top corporate customers. Moreover the bank is involved in import trade financing. Bulk importers of

consumer durable, food gains industrial raw materials are its customers. The bank has financed in textile

sectors. The bank has a trade of choosing customer from diversified groups. The bank has first class

customers in the construction sectors involved in high-rise building, heavy construction and roads and

high way construction.



Page 19

4.13 Sponsors of NBL The sponsors of National Bank Limited are highly successful leading entrepreneurs of the country having

stakes in different segments of the national economy. They are industrialists & businessmen having

wide business reputation both at home & abroad. Some of them are: ABU TAHER MIAH ,MOHD.ABUL

HOSSAIN, ZAINUL HAQUE SIKDER, KHALILUR RAHMAN, MD. ABDUL AWAL, KHAN MOHD.AMEER, MOAZZAM

HOSSAIN, HABIBULLAH, MAHBUBUR RAHMAN, MOHD. ABDUL HALIM, M. NURUL ISLAM, RUSTAM ALI, M. S.

ASGHAR, ALI AKBAR KHAN, ABDUL ALIM, MD. MIZANUR RAHMAN, M. HAIDER CHOWDHURY.

4.14 Business Ideology Alongside providing the best services to the clienteles, patronizing and taking part in social development

activities as well as making due contribution to growth of the national economy.

4.15 National Bank Foundation National Bank Limited foundation was established in 1989 to fulfill the responsibilities of welfare for the

society. National Bank Public School and College in Moghbazar, Dhaka has been established where

about 997 students are studying in the school section from class 1 to class 10, while 121 students are at

the college section. In 2010, 93 students appeared at the SSC examination and 92 at the H.S.C

examination and in both the examinations 100% came out successfully.

The bank has been accommodating prospective graduates of recognized universities for completing

their internship. NBL also awarded scholarship to the brilliant children of the employees of the bank and

contributed Tk, 8.12 Lac to various educational sectors.

4.16 Organizational Strategy The main strategy of NBL is the organic growth – to build branches and strengthen their distribution

network.

The main strategies of NBL are as follows:

People - Attract, retain and reward top performers.

Profitable Growth - Growing sales and increase the revenues.

Execution - Performing with skill and speed.

Credit Quality - Maintaining credit quality and understand the role in managing losses.

Customer Centered - Always providing exceptional customer service.

4.17 Training Institute Diversified work efficiency of human resource is the key to sustained progress of an institution. With this

realization, The National Bank Training Institution (NBTI) was established at Shamoli on 24 October

1989, which is fully residential. Beside faculty members of the Institute, renewed professionals like

banker, economists, teachers and researches are invited to deliver lectures in training programs. NBTI

has a rich library for use by the trainees. NBL has a program to open a Research and Publication Division

soon. During 2013 total 225 employees attained in training programs arranged by the training institute

of the bank. In every batch, 25 trainees can attain in training program with residential facilities.



Page 20

4.18 Organizational Structure From the top to the bottom management body of National Bank Limited can be divided into four levels.

Figure 3 Organizational Structure

Top Management

•Cairman

•Board of Directors

•Executive committee

Executive Level

Management

•Managing Director and CEO

•Deputy Managing Director

•Senior Executive Vice President

•Executive Vice President

•Senior Vice President

•Vice President

•Senior Asst Vice President

•Asst.Vice President

Mid Level Management

•First Asst. Vice President

•Senior Executive Officer

•Execuyive Officer

Junior Level

•First Executive Officer

•Junior Officer.

•Probationary Officer



Page 21

4.19 Operational Network

Figure 4 Operational Network

4.20 Management Structure of NBL In 2007 National Bank Limited made a great progress in all business, like deposit, credit, fund

management, investment, foreign remittance, credit card & foreign exchange related business. The

management processes are as follows:

Planning: The strategic planning approach in NBL is top-down. Top management formulates

strategy at the corporate level, and then it is transmitted through the division to the individual

objectives. Board of directors or Executive committee usually takes the decision.

Organizing: Organizing of the National Bank Limited is based on Departmentalization. In the

National Bank Limited the whole operation is centralized and authority is delegated by written

guidelines.

Staffing: Entry-level recruitment process of the National Bank Limited is conducted in three

ways. One way is recruitment of probationary officer. Each probationary officer has one-year

probation period. Second way of recruitment is to recruit non-probationary officer who joins as

an assistant officer. The career path of an assistant officer is lengthier than probationary officer.

Vice President

Asst. Vice President

Foreign Exchange Department

Senior Executive Officer

Executive Officer

Provisional Officer

Officer


Credit Department


Executive Officer

Provisional Officer

Officer


Generall Banking


Executive Officer

Provisional Officer

Officer

Senior Asst. Vice President



Page 22

The third way of recruitment is recruitment of staff and sub-staff such as typist, Messenger,

driver, guard, attendant, cleaner and other lower level positions.

Controlling: The bank has strict control over its all-organizational activities. The Bangladesh

Bank directives indicate some control measures. Audits and inspection are conducted by

different parties to check whether the bank implement these control system properly or not.

4.21 Services of NBL The National Bank provides different types of financial services to its customers. The most important

functions that are provided by NBL are as follows:

Figure 5 Services of NBL

4.22 Awards and Recognitions Received SAFA Merit Award for best presented Accounts for three consecutive years.

4.23 Departments of NBL The Department Based Approach is similar to that of the branch based approach, where each

department operates as a separate unit but sometimes collaborates in order operate more efficiently or

to solve a common problem. Examples of few other departments at National Bank Ltd are given below:

Deposits

•Savings Deposits

•Current Deposits

•Term Deposits

•Special Notice Deposits

•Fixed Deposits

•Foreign Currency Deposits

•RFC Deposits

•NFC Deposits

•Monthly Savings Scheme

•Monthly Income Scheme

•Double Benefit Scheme

•Millionaire Income Scheme

Credit

•Overdrafts

•Lease Financing

•House Building

•Small MediumEntreprise

•Consumer Credit Scheme

•Trade Finance

Cards

•Credit Card

•Power Card



Page 23

Human Resources Division (HRD)

Financial and Administration Division

(FAD)

General banking department

1. Accounts opening section

2. Cash section

3. Remittance section

4. Bills and clearing section

5. Accounts section

Foreign exchange department

1. Import section

2. Export section

3. Foreign remittance section

Marketing Division

Public Relation Department (PRD)

Merchant Banking and Investment

Banking

Treasury Division

International Division (ID)

Computer and Information Technology

Department (IT)

Credit Division

Corporate Affairs Division

Card Division

Board Audit Cell

Monitoring and Inspection Division

4.24 Head Office National Bank Limited - Head Office

18 Dilkusha Commercial Area, Dhaka, Bangladesh

Phone: 88-02-956-3081, 88-02-966-6584

Fax: 88-02-956-3953, 88-02-966-9404

SWIFT: NBLBBDDH

E-mail: [email protected]

4.25 Capital Structure Capital Structure of NBL is as follows:

Particulars Amount (in Tk)

Core Capital:

Paid up capital 8603656030 Statutory reserve 6058641682 General reserve 497723327 Retained Earnings as per profit 5155930470 loss account Supplementary Capital: 1% general provision 307,425,523 Exchange Equalization account 41,371,514 Other reserve 1246600628 Total 21911349174

Table 4 Capital Structure of NBL



Page 24

4.26 Operations National Bank Limited, since its inception is a fully focused bank depending on technology. The bank has

now a network of 175 branches strategically located in different cities of the country. All the branches

are functioning in computerized environment and integrated through Wide Area Network (WAN). The

branches are full-fledged units and can provide all commercial and investment-banking services ranging

from small and medium enterprise to big conglomerates and houses.

The bank will introduce modern systems of leasing operation as in practice with banks in all other

countries of the world. The lease-financing portfolio of the bank will be the first of its kind in a

commercial bank in Bangladesh.

4.27 Credit rating of NBL Credit Rating Agency of Bangladesh Limited has upgraded the credit rating of the Bank to AA3

(Pronounced Double A Three) in the Long Term and ST-1 in the Short Term in recognition of its strong

Figure 6 Credit Rating of NBL

financial position, excellent operational performance, capital adequacy and commendable growth in all

business areas. A Commercial Bank rated AA3 is judged to be of very high quality, is subject to very low

credit risk and has strong capacity to meet its financial commitments. A Commercial Bank rated ST-1 is

considered to have the highest capacity for timely repayment of obligations, and are characterized with

excellent position in terms of liquidity, internal fund generation, and access to alternative sources of

funds. National Bank Limited takes this opportunity to thank its regulators, customers, stakeholders,

staff, and well-wishers for achieving this rating.



Page 25

4.28 Social Responsibility Disaster Relief:

National Bank Limited has always extended its .helping hand and has stood by the helpless people in

times of natural calamities. In 2007, National Bank Limited donated Tk. 40.00 Lac to help the victims of

flood, Tk. 20.00 Lac for relief operation of landslide victims and Tk. 50.00 Lac for Sidr victims to the relief

fund of the Chief Advisor and the Army Chief. The Bank has also taken a pilot project for post flood

agricultural rehabilitation at Sirajgonj. On 10th March, 2009 a Payment Order for Tk.25.00 Lac has been

handed over to the Hon'ble Prime Minister as a donation/financial assistance to the bereaved family

members of the martyred Army Officers killed in the BDR carnage held on 25th February, 2009.

Sports and Cultural Activities:

National Bank Limited has a tradition of patronizing and sponsoring sports and cultural activities of the

Country. The "National Bank Volleyball league - 2007" was arranged under the patronization of the

Bank. It has also arranged annual picnics as a means of recreation for its executives, officers and staff. In

2009 the amount of donation in sports was 4.65 lac Taka and it is increased substantially to 64.65 lac

Taka.

Others:

National Bank Limited has always maintained their corporate social responsibility in various ways. It has

always appreciated various kinds of fair, festivals and other gatherings organized by different private or

public sectors. In 2010 NBL has donated Tk. 8.70 lac in vaous activates. National bank has contributed

significantly to the government effort in collection of revenue. In 2010 it has contributed to national

exchequer an amount of Tk. 1,37.50 crore as tax and VAT on its earnings. Besides the bank deducted tax,

vat, excise duties etc. from various payments and deposited the same to government exchequer.



Page 26

(𝑭𝒐𝒓𝒆𝒊𝒈𝒏 𝑬𝒙𝒄𝒉𝒂𝒏𝒈𝒆 𝑫𝒆𝒑𝒂𝒓𝒕𝒎𝒆𝒏𝒕)



Page 27

5 Foreign Exchange Department

5.1 Foreign Exchange Every country has certain natural advantages and disadvantages in producing certain commodities. As a

result we find that some countries need to import certain commodities while others need to export

their surpluses. Foreign trade helps in these cases. These transactions are the basis upon which

international trade is made. As more than one currency is involved in foreign trade, it gives rise to

exchange of currencies which is known as Foreign Exchange. In banks when we talk of foreign exchange,

we refer to the general mechanism by which a bank converts currency of one country into that of

another. Foreign Exchange Department is the international department of the bank which deals globally.

It facilitates international trade through its various modes of services.

In terms of section 2 (d) of the Foreign Exchange Regulation Act 1947, as adapted in Bangladesh, Foreign

exchange means foreign currency and includes any instruments drawn, accepted, made or issued under

clause 13 of article 16 of Bangladesh Bank Order, 1972, all deposits, credits and balance payable in

foreign currency as well as foreign currency instruments such as Draft, TC, Bill of Exchange, promissory

note, and Letter of Credit payable in any foreign currency.

Foreign exchange covers all business activities relating to import, export, inward and outward

remittance and buying and selling of currency. One of the largest businesses carried out by the

commercial bank is foreign trading.

Bangladesh Bank issues license to scheduled banks to deal with foreign exchange. These Banks are

known as Authorized Dealers. If the branch is authorized dealer in foreign exchange market, it can remit

foreign exchange from local country to foreign countries. NBL, Islampur Branch is an Authorized

dealer’s.

5.2 Significance of Foreign Exchange A country cannot produce all the goods it needed. It has to depend on other countries. The significance

of foreign exchange is much higher for developing nations like Bangladesh.

International trade gives opportunity of exchange of goods.

National assets and resources of a country can be utilized properly.

Foreign Currency can be earned easily.

International trade helps to trade domestic production globally.

5.3 Foreign Exchange Department of NBL The International Division of National Bank Ltd. which is located at the Head Office, Motijheel is the

central place of all international transaction that is conducted through the various branches of the bank.

Total 40 branches of National Bank Ltd. have the license to perform international trade functions. Each

of this AD branches have foreign exchange department whose sole purpose is to carry out the cross

border transaction demanded by the customers.



Page 28

Generally there are three departments of foreign exchange of NBL such as import, export and foreign

remittance. But we can interpret it more elaborately.

Figure 7 Foreign Exchange Department

5.3.1 Import Section

This section deals with the import of foreign commodities into Bangladesh. It starts with the opening of

an L/C till the payments are made to the foreign exporters. The import section is in turn is divided into

two divisions. One division looks after Sight L/C and another one looks after Back to Back L/C. The Basic

difference between these two types of L/C is that, sight L/C requires at sight payment for the imported

items, the buyer should pay within three days of documents arrival. And on the other hand, the issuance

period for Back to Back credit can range from two months to even a year depending on the L/C terms.

5.3.2 Export Section

All Export departments of National Bank's branches are equipped with facilities that would help an

exporter ship their good beyond the nation's boundary, thus earning foreign currency for the country.

And majority of such customers for National Bank Ltd are involved in the Ready Made Garment sector

with only a few exporting other different commodities.

5.3.3 Foreign Remittance Section

Foreign remittance can be stated as the purchase and sale of freely convertible foreign currency as

acceptable under Exchange Control Regulations of the country. Inward remittance is the purchase and

outward remittance is the sale of foreign currency.

Foreign Exchange

Department

L/C Operation

Import Operation

Export Operation

Foreign Remittance

Foreign Currency Account

Inward Remittance

Outward Remittance



Page 29

5.4 Functions of Foreign Exchange Department Import

Opening of letter of

credit (L/C) Advance bills Bills for collection Import Loan and

Guarantee

Export

Pre – Shipment advances

Purchase of foreign bills Negotiating of foreign

bills Export guarantees Advising letter of credit

Remittance

Issue of DD, TT, etc. Payment of DD, TT etc. Issue and enhancement

of travelers cheque Sale and enhancement

foreign currency note Nonresident accounts

Table 5 Functions of Foreign Exchange Department

5.5 Foreign Exchange Regulations Followed by NBL, Islampur Branch Generally the followings regulations are followed by National Bank Ltd, Islampur Branch:

5.5.1 Local Regulations

1. Foreign Exchange Regulation Act 1947.

2. Bangladesh Bank issue foreign exchange circular time to time to control the import and

remittance business.

3. Ministry of commerce issues exports-Import Policy guidelines.

5.5.2 International Regulations

1. International Chamber of Commerce is a world-wide non-governmental origination of

thousands of companies. It was founded in 1919; ICC has issued publications like UCPDC that is

being followed by all the member countries.

2. There is also an international court of arbitration to solve the international business disputes.

3. World Trade Organization is another international trade organization established in 1995.

General Agreement on Tariff & Trade was established in 1948 after completion of its 8th round;

the origination has been abolished & replaced by W.T.O. This origination has vital role in

international trade through its member countries.

5.6 Import Import means purchase of goods and services from the foreign countries. Normally consumers, firms,

industries and Government of Bangladesh import goods to meet their various necessities. So, in brief we

can say that import is the flow of goods and services purchased by economic agent staying in the

country from economic agent staying abroad. Normally import/export is done through letter of credit

(L/C). Bangladesh is one of the developing countries in the world. So, like the other developing countries

Bangladesh Imports largely than it Exports. Import of goods into Bangladesh is regulated by the ministry

of Commerce in the terms of Import-Export Act 1950, various Import policy orders and also public

notices issued from time to time by the office of the Chief Controller of Import and Export (CCI&E).

Imports are the foreign goods and services purchased by the customer, firms and government in

Bangladesh. The importers are asked by their exporters to open Letter of Credits (L/C), so that their

payment against goods is insured.



Page 30

5.6.1 Import Regulations followed by NBL

As per Import & Export control Act 1950 no person can indent, import or export any goods in

Bangladesh except in case of exemption issued by the government of the peoples of Bangladesh.

According to Import and Export Control Act, 1950, to be an importer the person should obtain the

Import Registration Certificate (IRC) from the Office of Chief Controller of Import and Export.

Goods from Israel or goods originated from this country are not importable. Import of goods into

Bangladesh is not permissible on the flag vessel of Taiwan, South Africa and Israel.

5.6.2 Procedure of Import Registration Certificate (IRC)

To carry on the business of import the first thing one needs is registration with the licensing authority of

the area. To get this registration the interested person/institutions submits the application along with

the following papers/documents directly to the chief controller of imports and Exports or respective

zonal offices of CCI&E. Following papers/documents are usually required to obtain IRC.

1. Income tax registration certificate.

2. Nationality certificate.

3. Certificate from Chamber of Commerce and Industry or Registered Trade Association.

4. Bank solvency certificate.

5. Copy of trade license.

6. A forwarding letter to the CCI&E.

On receiving application the respective CCI&E offices will scrutinize the documents and conduct physical

verification (if necessary) and issue demand notice to the prospective Importers to furnish the following

papers/documents through their nominated Bank:

1. Original copy of Treasury Challan deposited as IRC fees.

2. Assets certificate.

3. Two copies of passport size photographs of the Importer.

4. In case of partnership registered partnership deed.

The nominated bank of the applicant will scrutinize the papers/documents and verify the signature of

the applicant. After verification the nominated bank will forward the same to the respective CCI&E

office with forwarding schedule in duplicate through bank’s representative. The CCI&E office will

acknowledge on duplicate copy of the forwarding schedule and return back the same to the bank

representative.

On being satisfied after securitization of the documents the respective zonal offices of CCI&E will issue

Import Registration Certificate (IRC) to the applicants.

5.6.3 Methods of Importing

There exist a number of procedures of importing goods from the foreign country. Goods may be directly

imported from the foreign manufactures or they may be imported through the selling agents of the

foreign producers. Whoever does the function there are some stages of importing, which are as follows:



Page 31

Figure 8 Method of Importing

The situation of import of National Bank, Islampur Branch Limited of FY 2011-2012, 2012-2013, 2013-

2014 are as follows. All the figures are million in Taka.

Month FY 2011-2012 FY 2012-2013 FY 2013-2014

July 186.03 379.09 398.08

August 217.92 447.77 426.07

September 266.31 368.69 470.39

October 351.28 499.44 525.59

November 351.25 549.24 587.01

December 381.42 650.61 671.76

January 49.82 64.95 -

February 89.94 119.06 -

March 133.33 180.67 -

April 183.43 232.26 -

May 213.84 296.27 -

June 313.06 345.30 - Table 6 Import of NBL, Islampur Branch

Procuring Import Licence

Placing the Order

Opening L/C

Procuring Foreign

Exchange

Delivery of Goods



Page 32

Figure 9 Import of NBL, Islampur Branch

5.6.4 Letter of Credit( )

A letter of credit is a financing instrument opened by a foreign buyer with a bank in her/his locality. The

letter of credit stipulates the purchase price agreed upon by the buyer and seller, the quantity of

merchandise to be shipped and the type of insurance coverage to protect the merchandise during

shipment. The letter of credit names the seller as beneficiary and identifies the definite time period. A

letter of credit gives some assurance to the seller that the buyer is solvent. Letter of Credit (L/C) is a

credit contract whereby the buyer’s bank is committed (on behalf of the buyer) to place an agreed

amount of money at the seller’s disposal under some agreed conditions.

5.6.5 Types of L/C

Documentary Credits may be either:

1. Revocable or,

2. Irrevocable

5.6.5.1 Revocable credit

A revocable credit is a credit that can be amended or cancelled by the issuing bank at any time without

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. In the modern

banking the use of revocable credit is not widespread.

0100200300400500600700800

Import of NBL, Islampur Branch

FY 2011-2012 FY 2012-2013 FY 2013-2014



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5.6.5.2 Irrevocable credit

An irrevocable credit is a documentary credit, which cannot be revoked, varied or changed/amended or

cancelled without the consent of all parties- buyer (Applicant), seller (Beneficiary), Issuing Bank, and

Confirming Bank (in case of confirmed Letter of Credit). An irrevocable credit constitutes a definite

undertaking of the issuing bank (since it cannot be amended or cancelled without the agreement of all

parties thereto), provided that the stipulated documents are presented and the seller satisfies the terms

and conditions. This sort of credit is always preferred to revocable letter of credit. According to UCPDC-

600, bankers now open only irrevocable letter of credit.

5.6.6 Back-to-Back Letter of Credit (BTB)

Bangladesh is a developing country. After receiving order from the importer, very frequently exporters

face problems of scarcity of raw material because some raw materials are not available in the country.

These have to be collected from abroad. In that case, exporter gives lien of export L/C to bank as

security and opens an L/C against it for importing raw materials. This L/C is called Back To Back L/C.

Sometimes there is provision in the export L/C that the importer can use the certain portion of the

export L/C amount for importing accessories that are necessary for the making of the product. Only in

that case, BTB is opened.

In the case of a Back-to Back L/C, a new L/C (an import L/C) is opened on the basis of an original L/C

called master L/C under the “Back-to-Back” concept. The beneficiary of the Back-to-Back L/C may be

located inside or outside the original beneficiary country. In back-to-back L/C, the applicant has the right

to import up to 75% of the total L/C amount. In case of a Back-to-Back L/C, no cash security (no margin)

is taken by the Bank, Bank liens the first L/C in case of a Back-to-Back L/C, the drawn bill is an issuance

/time bill.

In National Bank Ltd. papers / documents required for submission of for opening of Back-to-Back L/C:

1. Master L/C

2. Pro-forma Invoice or Indent

3. Insurance Cover Note with Money receipt

4. ERC in addition to IRC

5. No objection from previous banker

6. Factor inspection certificate

7. BGMEA membership

5.6.6.1 Eligibility of opening Back-To-Back L/C

The following instructions should be complied with while opening BTB export L/C:

1. The master export L/C should have validity period adequate to cover the time needed for

information of input manufacture of merchandise and shipment to consignee.

2. Back-to-back L/C value shall not exceed the admissible percentage of net FOB value of the

relative master export L/C value and price of goods to be importer must be competitive.

3. Back-to-Back import L/C s shall be opened on up to 180 days nuisance (DA) basis except in case

of those opened against export development fund (EDF) on sight basis.



Page 34

4. All amendments of the master export L/C should be noted down carefully to rule out chances of

excess obligation under the BTB import L/C.

5.6.7 Procedure involved in L/C opening

1. At first the L/C opener is required to fill up the prescribed application form for requesting to

open an L/C for the favor of L/C opener.

2. After receiving the application form with the other required documents submitted by the

opener they are to be thoroughly scrutinized. The points, which shall be scrutinized, are

described below.

a) The amount and the description of the goods in the application should be relevant with

the indent or Pro-forma invoice or import contract.

b) The amount is covered by the insurance amount.

c) The items are not banned with the country’s regulation.

d) The indent produced has the Import Registration Certificate Number and the Indenter’s

Registration Number. The indent has indenting agent’s signature and importer

signature.

e) Whether transshipment and partial shipment is allowed.

If all documents along with the applicants are in order, the financial position and credit worthiness of

the importer, market demand of the goods are assessed, margin of L/C also determined. The rate of

margin depends on the financial condition of the banker, importers status of relation, importers

previous performance, nature of goods etc. the margin is to be retained from the importers either in

cash or debating the importer’s current account with the bank. The importer is also required to pay the

other concerning charges like FCC (Foreign Corresponding Charges), Telex charge, Handling charges, and

Commission etc.

After all these steps L/C is opened and forwarded to the advising bank.

5.6.8 Letter of Credit (L/C) Transmitting

Letter of Credit can be transmitted to the Advising bank through three methods. There are Telex,

Courier or Swift (Society for World Wide Inter Bank Financial Telecommunication). L/C is sent to the

advising bank in three copies the advising bank authenticates the original copy of L/C and delivers it to

the exporter. The Duplicate is kept with the advising bank.

5.6.8.1 Negotiation

The beneficiary (Export) receives the letter of Credit (L/C) from advising bank. After proper shipments of

goods as per terms and conditions of the Letter of Credit, required documents like commercial invoice,

bill of lading and bill of exchange and presented to the Negotiation Bank by the beneficiary for

negotiation. If the documents are in order as per the L/C then the Negotiating bank negotiates the drafts

making payment to the beneficiary. Then the negotiating bank forwards the drafts along with the

shipping documents to the L/C Opening Bank. The negotiating Bank reimburses the amount paid against

the draft from the Reimbursement Bank.



Page 35

5.6.8.2 Amendment

Parties involved in a L/C, particularly the seller and the buyer cannot always satisfy the term and

conditions in full as expected due to some obvious and genuine reasons. In such situation, the credit

should be amended. National Bank Ltd. transmits the amendment by tested Telex to the Advising Bank;

In case of revocable credit it can be amended or cancelled by the issuing bank at any moment and

without prior notice to the beneficiary. But in case of irrevocable letter of credit, it can be neither

amended nor cancelled with the consent of the issuing bank, the confirming bank (if any) and the

beneficiary. If the letter of credit is amended, service charge and telex is debited from the party account

accordingly.

5.6.9 Examination of Documents

National Bank Limited officials check whether these documents have any discrepancy or not. Here

discrepancy means the dissimilarity of any of the documents with the conditions of the letter of credit.

5.6.10 Scrutiny of the Documents

First of all must be ensured that the full set of documents as mentioned in the L/C has been received.

1. Documents have been negotiated with in the negotiations period.

2. The Bill of Lading/Air way Bill/Rail way Receipt is not dated later than the last date of shipment

mentioned in the L/C. the L/C has not been amended or subjected to any special instructions,

which are to be scrutinized.

3. Bill of exchange.

4. Commercial Invoice.

5. Bill of Lading.

6. Certificate of Origin.

7. Packing List.

5.6.11 Retirement of shipping documents

The importer receives the intimation and gives necessary instruction to the bank for the retirement of

the disposal of the sipping to clear the imported bills or for the disposal of the shipping documents to

clear the imported goods from the custom authority. Following steps are to be taken for retirement of

the documents.

1. Calculation of interest (if any).

2. Calculation of other charges.

3. Passing voucher.

4. Entry in the register.

5.7 Export Export means to transfer goods from one place to another. The exporter must pay duty on goods

exported. The exporter should obtain registration from the office the chief controller of import &

export, trade license ERC, LCA to open export L/C. In order to Creation of wealth in any country depends

on the expansion of production and increasing participation in international trade. By increasing

production in the export sector we can improve the employment level of such a highly populated



Page 36

country like Bangladesh. Bangladesh exports a large quantity of goods and services to foreign

households. Readymade textile garments (both knitted and woven), Jute, Jute-made products, frozen

shrimps, tea are the main goods that Bangladeshi exporters export to foreign countries. Garments

sector is the largest sector that exports the lion share of the country's export. Bangladesh exports most

of its readymade garments products to U.S.A and European Community (EC) countries. Bangladesh

exports about 40% of its readymade garments products to U.S.A. Most of the exporters who export

through NBL, Islampur branch are readymade garments exporters. They open export L/Cs here to export

their goods, which they open against the import L/Cs opened by their foreign importers.

5.7.1 Method of Export

Figure 10 Export Method

5.7.2 Things Done in Export

In broader aspect the major responsibility that re performed here are:

1. L/C Advising

2. Documents Collection

3. Documents negotiation

4. Export financing

Parties of the Export are as follows:

Closing Transaction

Securing Payments

Perparing Export Papers

Shipment of Goods

Getting the Goods Insured

Procurement of Goods

Exchange Rate

Booking of Freight

Asking to Open L/C

Receiving the Order



Page 37

1. L/C issuing bank

2. Importer

3. L/C advising bank

4. Exporter

5. Confirming bank

6. Negotiation bank

7. The paying / Reimbursing Bank

5.7.3 Export Formalities

The export trade of the country is regulated by the Imports and Exports (control) Act, 1950. There are a

number of formalities, which an exporter has to fulfill before and after shipment of goods. These forma

or procedures are enumerated as follows:

1. Registration of the Exporter

2. Export Registration Certificate (ERC)

3. Export permit Form (EXP)

The situation of Export of National Bank Limited, Islampur Branch of FY 2012-2013, 2013-2014 are as

follows. All the figures are million in Taka.

Month All Amount Million in taka

FY 2012-2013 FY 2013-2014 July 0 167.94 August 30.23 188.93 September 39.24 208.37 October 39.79 130.92 November 86.38 250.36 December 114.16 262.02 January 7.9 - February 22.86 - March 35.19 - April 72.48 - May 100.31 - June 134.54 -

Table 7 Export of NBL, Islampur Branch



Page 38

Figure 11 Export of NBL, Islampur Branch

5.7.4 Export Procedure

1. An exporter has to obtain a general permission from the office of chief controller of import and

export (CCI&E). This permission is known as Exporter’s Registration Certificate (ERC).

2. If any exporter wants to export any banned or restricted item, then he has to obtain special

permission from CCI&E and Export Promotion Bureau (EBP).

3. To obtain an ERC, he has to submit a valid trade license, bank solvency certificate of any trade

association etc. to CCI&E Office.

4. He has to obtain a general permission from the office of EBP. This permission is known as

membership certificate of EBP.

5. Then he will collect the export order through a Letter of Credit (L/C) or Contract. In case of L/C,

it should be authenticated and advised by a bank.

6. After then he can export the good against L/C for a payment term as “Sight” basis. Even they can

export goods on consignment basis.

7. He has to check all the terms and conditions of L/C carefully. If it is possible to comply with, he

takes necessary steps to export the goods.

8. He applies to the bank along with original L/C, a copy of commercial invoice for issuance of EXP

form.

9. Exporters sign and fill up their portion of EXP form and then they collect bank’s seal and

signature on the same EXP form

10. Exporters make range of goods for shipment by sea/air through their nominated Clearing and

Forwarding Agent (C & F Agent).

11. C & F Agent takes necessary approval from the port custom authority on behalf of the exporter

before shipment of goods.

12. To take the approval of custom authority. The agent has to submit their required papers like full

set of EXP form, copy of commercial invoice, copy of packing list, copy of ERC etc.

0

50

100

150

200

250

300

Export of NBL, Islampur Branch

FY 2012-2013

2013-2014



Page 39

13. After approval of customs authority, C&F Agent directly sends the original copy of EXP from

Bangladesh Bank and the rest three EXP forms ( Duplicate, Triplicate and Quadruplicate ) returns

to the exporters.

14. Then exporter prepares or collects all related documents or papers from different authorities as

per L/C terms.

15. Then the exporter submits the documents to their bank for negotiation or collection of proceeds

against their export.

5.7.5 Financial Incentives given by National Bank Ltd

Financing of export credit is made in two stages

1. Pre-shipment Stage.

2. Post-shipment Stage.

5.7.5.1 Pre-shipment Credit

Pre-shipment credit is the name suggests is given to finance the activities of an exporter prior to the

actual shipment of the goods for export. The purpose of such credit is to meet working capital needs

starting from the point of purchasing of raw materials to final shipment of goods for export to foreign

country. Before allowing such credit to the exporters the bank takes into consideration about the credit

worthiness, export performance of the exporters, together with all other necessary information

required for sanctioning the credit in accordance with the existing rules and regulations. Pre-shipment

credit is given for the following purpose:

1. Cash for local procurement and meeting related expenses.

2. Procuring and processing of the goods for export.

3. Packing and transporting of goods for export.

4. Payment of insurance premium.

5. Inspections fees.

6. Freight charges etc.

5.7.5.2 Post shipment finance

This type of credit refers to the credit facilities extended to the exporters by the banks after shipment of

the goods against export documents. Necessary for such credit arises as the exporter cannot afford to

wait for long time for without pay manufacturers/suppliers. Before extending such credit, it is necessary

on the part of banks to look into carefully the financial soundness of exporters and buyers as well as

other relevant document connected with the export in accordance with rules and regulations in force.

Banks in our country extend post shipment credit to the exporters through:

1. Negotiation of documents under L/C.

2. Advances against export bills surrendered for collection (FDBC)

5.7.6 Foreign document bill of collection (FDBC)

If the bank (National Bank) is not satisfied with the documents submitted, National Bank gives the

exporter reasonable time to remove the discrepancies or sends the documents to letter of credit



Page 40

opening bank of collection. This is known as foreign document bill of collection (FDBC). Normally

negotiating bank will send the documents on collection basis mainly for the following discrepancies:

1. L/C expired

2. Late shipment

3. Late presentation

4. L/C overdrawn

5. Unit price differ between L/C and commercial invoice

6. Consignee name and address differ between L/C and other documents

7. Discrepancies in B/L,

8. Any other major discrepancies

FDBP signifies that the exporter will receive payment only when the issuing bank gives payment.

National bank make regular follow-up with the L/C issuing bank in case of any delay in getting payment.

5.8 Remittance Foreign remittance means purchase and sale of freely convertible foreign currencies are admissible

under exchange control regulations of the country. Purchase of foreign currencies constitutes inward

foreign remittance and sale of foreign currencies constitutes outward foreign remittance.

Key functions of foreign remittance department are given below.

5.8.1 Inward Remittance

Inward remittance refers to the extent where by bank makes payments to the client against foreign

demand draft. They will make payment to the client by verifying the test key number, and signature of

the authorized officer. The bank makes payment immediately if the amount is less than Tk-100000, it

must wait to get credit advice from the issuing bank.

5.8.1.1 Modes of Foreign Inward Remittance

1. T.T. (Telegraphic Transfer),

2. M.T. (Mail Transfer),

3. D. D. (Demand Draft),

4. T.C. (Travelers Cheque),

5. P. O. (Pay Order).

Besides this Foreign Inward Remittance these also includes remittance on account of export, purpose of

bills, purpose of T.C. foreign currency notes and coins, cheques issued on foreign banks in favor of

beneficiaries in Bangladesh etc.

Telegraphic Transfer

Cable or telex instructions of payment are called as Telegraphic Transfer, where foreign banks issue a

T.T. in favor of someone in Bangladesh. In credits the amount received from the remitter to the Nostro

A/C of its correspondent bank, on receipt of the T.T. in foreign currency or in equivalent Bangladeshi

Taka to the beneficiary.



Page 41

Mail Transfer

Mail transfer is an instrument issued by a remitting bank to the paying bank advising in writing to make

payment of certain amount to specific beneficiary.

Demand Draft

The demand draft is a negotiable instrument issued by a bank drawn on other bank with the instruction

to pay a certain amount to beneficiary on demand.

Pay Order

A payable order is a written under issued by a branch of bank, to pay a certain sum of money to specific

person or a bank. It may be said as to be a banker’s cheque as it issued by a bank and payable by itself.

5.8.2 Outward Remittance

When being a resident of Bangladesh someone sends money to Foreign Account is known as outward

remittance process, in short transferring funds from your account to another account which is in

another country. This is a service approved under the Foreign Exchange Management Act, which allows

one to transfer money to most countries all around the world. The payments are made through this

service is usually for medical treatment, donations, sending gifts, payments for family members

education, foreign travel expenses etc. It is the only way to get money if anyone faces problem while in

abroad.

The situation of Remittance of National Bank Limited, Islampur Branch of FY 2012-2013, 2013-2014 are

as follows. All the figures are million in Taka.

Month All Figures are million in Taka

FY2012-2013 FY2013-2014

July 40.03 39.65

August 47.39 44.32

September 53.14 45.10

October 60.91 45.87

November 65.19 49.76

December 71.05 54.43

January 7.92 -

February 12.62 -

March 17.99 -

April 22.60 -

May 27.99 -

June 33.44 - Table 8 Export of NBL, Islampur Branch



Page 42

Figure 12 Export of NBL, Islampur Branch

0

10

20

30

40

50

60

70

80

Remittance of NBL, Islampur Branch

FY 2012-2013

FY 2013-2014



Page 43

(𝑨𝒏𝒂𝒍𝒚𝒕𝒊𝒄𝒂𝒍 𝑷𝒂𝒓𝒕𝒔)



Page 44

6 Analytical Parts

6.1 Regression Analysis Necessary information for Regression Analysis

Import and Exchange Rate

By analyzing the above table, a regression analysis is made through SPSS software version 16. REGRESSION

/MISSING LISTWISE

/STATISTICS COEFF OUTS R ANOVA

/CRITERIA=PIN(.05) POUT(.10)

/NOORIGIN

/DEPENDENT Import

/METHOD=ENTER Exchange_Rate.

Regression1

Variables Entered/Removedb

Model

Variables

Entered

Variables

Removed Method

1 Exchange_Ratea . Enter

a. All requested variables entered.

b. Dependent Variable: Import

The following table is the Model Summary table. This table provides the R, R2, adjusted R2, and the

standard error of the estimate, which can be used to determine how well regression model fits the data:

Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .112a .013 -.023 173.22057

a. Predictors: (Constant), Exchange_Rate

1 This Regression is calculated by using data which is plotted in Appendix B



Page 45

The "R" column represents the value of R can be considered to be one measure of the quality of the

prediction of the dependent variable; in this case, Import. A value of 0.112 indicates a poor level of

prediction. The "R Square" column represents the R2 value which is the proportion of variance in the

dependent variable that can be explained by the independent variables. Here the value of 0.013 that

independent variables explain 1.3 % of the variability of our dependent variable, Import.

The F-ratio in the ANOVA table tests whether the overall regression model is a good fit for the data. The

table shows that the independent variables statistically insignificantly predict the dependent variable p >

.0005.

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 10730.670 1 10730.670 .358 .555a

Residual 840150.211 28 30005.365

Total 850880.881 29



Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig. B Std. Error Beta

1 (Constant) 904.585 958.558 .944 .353

Exchange_Rate -7.231 12.091 -.112 -.598 .555

a. Dependent Variable: Import

The general form of the equation to predict,

Y= 904.585 – 7.231 X1

Here, Y= Import, X1= Exchange Rate

So we can conclude for every unit increase in Exchange_Rate, we expect a 7.231 unit decrease in the

Import, holding all other variables constant.



Page 46

Import and Inflation Rate

By analyzing the above table, a regression analysis is made through SPSS software version 16.

REGRESSION

/MISSING LISTWISE



/NOORIGIN

/DEPENDENT Import

/METHOD=ENTER Inflation_Rate.

Regression2

[DataSet1] C:\Users\uttam\Desktop\Regreation Raw Data.sav


Model

Variables

Entered

Variables

Removed Method

1 Inflation_Ratea . Enter



c.



Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .232a .054 .020 169.56634

a. Predictors: (Constant), Inflation_Rate


prediction of the dependent variable; in this case, Import. A value of 0.232 indicates a poor level of



independent variables explain 5.4 % of the variability of our dependent variable, Import.




Page 47

The F-ratio in the ANOVA table tests whether the overall regression model is a good fit for the data. The table shows that the independent variables statistically insignificantly predict the dependent variable p > .0005.

ANOVAb


1 Regression 45804.082 1 45804.082 1.593 .217a

Residual 805076.799 28 28752.743

Total 850880.881 29



Coefficientsa

Model


Standardized

Coefficients


1 (Constant) 483.375 124.124 3.894 .001

Inflation_Rate -19.767 15.661 -.232 -1.262 .217



Import= 483.375 – 19.767 X1

Here, Y= Import, X1= Inflation Rate

So we can conclude for every unit increase in Inflation_Rate, we expect a 19.767 unit decrease in the

Import, holding all other variables constant.

Multiple Liner Regression Analysis

By analyzing the above table, a regression analysis is made through SPSS software version 16. REGRESSION

/MISSING LISTWISE





Page 48

/NOORIGIN

/DEPENDENT Import

/METHOD=ENTER Inflation_Rate Exchange_Rate.

Regression3

[DataSet0]


Model

Variables

Entered

Variables

Removed Method

1 Exchange_Rate,

Inflation_Ratea

. Enter





Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .508a .258 .203 152.9139

a. Predictors: (Constant), Exchange_Rate, Inflation_Rate


prediction of the dependent variable; in this case, Import. A value of 0.508 indicates a good level of



independent variables explain 25.8% of the variability of our dependent variable, Import.

The F-ratio in the ANOVA table tests whether the overall regression model is a good fit for the data. The table shows that the independent variables statistically significantly predict the dependent variable p > .0005.




Page 49

ANOVAb


1 Regression 219548.648 2 109774.324 4.695 .018a

Residual 631332.233 27 23382.675

Total 850880.881 29



Coefficientsa

Model


Standardized

Coefficients


1 (Constant) 4426.321 1450.804 3.051 .005

Inflation_Rate -65.729 21.995 -.771 -2.988 .006

Exchange_Rate -45.311 16.622 -.704 -2.726 .011



Import= 4426.321 - 65.729 X1 – 45.311 X2

Here, Y= Import, X1= Inflation Rate, X2= Exchange Rate


Import, holding all other variables constant. On the other hand for every unit increase in Exchange_Rate,

we expect a 45.311 unit decrease in the Import, holding all other variables constant.

Pearson’s Correlation

CORRELATIONS

/VARIABLES=Import Exchange_Rate Inflation_Rate

/PRINT=TWOTAIL NOSIG

/MISSING=PAIRWISE.

Correlations



Page 50

[DataSet1] C:\Users\uttam\Desktop\Regreation Raw Data.sav

Correlations

Import Exchange_Rate Inflation_Rate

Import Pearson Correlation 1 -.112 -.232

Sig. (2-tailed) .555 .217

N 30 30 30

Exchange_Rate Pearson Correlation -.112 1 -.767**

Sig. (2-tailed) .555 .000

N 30 30 30

Inflation_Rate Pearson Correlation -.232 -.767** 1

Sig. (2-tailed) .217 .000

N 30 30 30

**. Correlation is significant at the 0.01 level (2-tailed).

We can find the Pearson’s r statistic in the top of each box. The Pearson’s r for the correlation between

Import and Exchange Rate is -0.112 and Import and Inflation Rate is -0.232. If the value of Correlation is

close to 1 that means it is very good. But both of our value is far from 1. So there is no significant

relationship between then. Import and Exchange rate’s Pearson’s r is -0.112, so one unit increase in one

variable will decrease the other variable by 0.112.

Import and Inflation rate’s Pearson’s r is -0.232, so one unit increase in one variable will decrease the

other variable by 0.232.

Export and Exchange Rate

REGRESSION

/MISSING LISTWISE



/NOORIGIN

/DEPENDENT Export

/METHOD=ENTER Exchange_Rate.

Regression4

4 This Regression is calculated by using data which is plotted in Appendix C



Page 51

[DataSet1] C:\Users\uttam\Desktop\Export Regreation Raw.sav


Model

Variables

Entered

Variables

Removed Method

1 Exchange_Ratea . Enter


b. Dependent Variable: Export



Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .595a .354 .311 67.25746



prediction of the dependent variable; in this case, Export. A value of 0.595 indicates a moderate level of



independent variables explain 35.4 % of the variability of our dependent variable, Export.



.0005

ANOVAb


1 Regression 37224.380 1 37224.380 8.229 .012a

Residual 67853.495 15 4523.566

Total 105077.875 16





Page 52

Coefficientsa

Model


Standardized

Coefficients


1 (Constant) 2493.656 830.658 3.002 .009

Exchange_Rate -30.174 10.519 -.595 -2.869 .012

a. Dependent Variable: Export


Y= 2493.656 – 30.174 X1

So we can conclude for every unit increase in Exchange_Rate, we expect a 30.174 unit decrease in the

export, holding all other variables constant.

Here, Y= Export, X1= Exchange Rate

Export and Inflation Rate

REGRESSION

/MISSING LISTWISE



/NOORIGIN

/DEPENDENT Export

/METHOD=ENTER Inflation_Rate.

Regression5



Model

Variables

Entered

Variables

Removed Method





Page 53


Model

Variables

Entered

Variables

Removed Method






Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .341a .116 .057 78.68067



prediction of the dependent variable; in this case, Export. A value of 0.341 indicates a bad level of



independent variables explain 11.6 % of the variability of our dependent variable, Export.



.0005

ANOVAb


1 Regression 12218.152 1 12218.152 1.974 .180a

Residual 92859.723 15 6190.648

Total 105077.875 16





Page 54

Coefficientsa

Model


Standardized

Coefficients


1 (Constant) -83.715 140.099 -.598 .559

Inflation_Rate 27.644 19.677 .341 1.405 .180



Y= 27.644 X1 - 83.715

Here, Y= Export, X1= Inflation Rate

So we can conclude for every unit increase in Inflation_Rate, we expect a 27.644 unit increase in the

export, holding all other variables constant.

Multiple Liner Regression Analysis

REGRESSION

/MISSING LISTWISE



/NOORIGIN

/DEPENDENT Export

/METHOD=ENTER Inflation_Rate Exchange_Rate.

Regression6



Model

Variables

Entered

Variables

Removed Method

1 Exchange_Rate,

Inflation_Ratea

. Enter






Page 55

The following table is the Model Summary table. This table provides the R, R2, adjusted R2, and the standard error of the estimate, which can be used to determine how well regression model fits the data:

Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .669a .448 .369 64.35711



prediction of the dependent variable; in this case, Export. A value of 0.669 indicates a moderate level of



independent variables explain 44.8% of the variability of our dependent variable, Export.

The F-ratio in the ANOVA table tests whether the overall regression model is a good fit for the data. The table shows that the independent variables statistically significantly predict the dependent variable p > .0005.

ANOVAb


1 Regression 47092.143 2 23546.071 5.685 .016a

Residual 57985.732 14 4141.838

Total 105077.875 16



Coefficientsa

Model


Standardized

Coefficients


1 (Constant) 4775.739 1678.601 2.845 .013



Page 56

Inflation_Rate -46.703 30.258 -.576 -1.544 .145

Exchange_Rate -54.905 18.922 -1.083 -2.902 .012



Y= 4775.739 – 46.703 X1 – 54.905 X2


Export, holding all other variables constant. On the other hand for every unit increase in Exchange_Rate,

we expect a 54.905 unit decrease in the Export, holding all other variables constant.

Here, Y= Export, X1= Inflation Rate, X2= Exchange Rate

Pearson’s Correlation

CORRELATIONS /VARIABLES=Export Exchange_Rate Inflation_Rate

/PRINT=TWOTAIL NOSIG

/MISSING=PAIRWISE.

Correlations


Correlations

Export Exchange_Rate Inflation_Rate

Export Pearson Correlation 1 -.595* .341

Sig. (2-tailed) .012 .180

N 17 17 17

Exchange_Rate Pearson Correlation -.595* 1 -.847

**

Sig. (2-tailed) .012 .000

N 17 17 17

Inflation_Rate Pearson Correlation .341 -.847** 1

Sig. (2-tailed) .180 .000

N 17 17 17

*. Correlation is significant at the 0.05 level (2-tailed).

**. Correlation is significant at the 0.01 level (2-tailed).

We can find the Pearson’s r statistic in the top of each box. The Pearson’s r for the correlation between

Export and Exchange Rate is -0.595 and Export and Inflation Rate are 0.341. If the value of Correlation is

close to 1 that means it is very good. But both of our value is far from 1. So there is no significant



Page 57

relationship between then. Export and Exchange rate’s Pearson’s r is -0.595, so one unit increase in one

variable will decrease the other variable by 0.595.

Export and Inflation rate’s Pearson’s r is 0.341, so one unit increase in one variable will increase the

other variable by 0.341.

Comments

Variables R R2 Sig

Dependent Independent

Import Exchange Rate

0.112 0.013 0.555

Import Inflation Rate

0.232 0.054 0.217

Import Exchange Rate,

Inflation Rate

0.508 0.258 0.018

Export Exchange Rate

0.595 0.354 0.012

Export Inflation Rate

0.341 0.116 0.180

Export Exchange Rate,

Inflation Rate

0.669 0.448 0.016

Table 9 Summery Data on Regression Analysis

In case of Import, the value of R2 of inflation is 0.054 and exchange rate is 0.013. So import is much more

affected by inflation. On the other hand, In case of Export, the value of R2 of inflation is 0.116 and

exchange rate is 0.354. So export is much more affected by exchange rate.

If we consider multiple liner regression, we see that the value of R2 of Import is 0.258 and the value of R2

of Export is 0.448. So export is much more influenced by exchange rate and inflation.



Page 58

Earnings and Import REGRESSION

/MISSING LISTWISE



/NOORIGIN

/DEPENDENT Earnings

/METHOD=ENTER Import.

Regression7

[DataSet0] C:\Users\uttam\Desktop\detemination of most important factor on earnings.sa

v


Model

Variables

Entered

Variables

Removed Method

1 Importa . Enter


b. Dependent Variable: Earnings

Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .989a .978 .977 .76454

a. Predictors: (Constant), Import

ANOVAb


1 Regression 419.458 1 419.458 717.618 .000a

Residual 9.352 16 .585

Total 428.810 17

a. Predictors: (Constant), Import

7This Regression is calculated by using data which is plotted in Appendix D



Page 59

ANOVAb


1 Regression 419.458 1 419.458 717.618 .000a

Residual 9.352 16 .585

Total 428.810 17


Coefficientsa

Model


Standardized

Coefficients


1 (Constant) -.133 .465 -.287 .778

Import .029 .001 .989 26.788 .000

a. Dependent Variable: Earnings

Earnings and Export

REGRESSION

/MISSING LISTWISE



/NOORIGIN

/DEPENDENT Earnings

/METHOD=ENTER Export.

Regression8


v


Model

Variables

Entered

Variables

Removed Method

8This Regression is calculated by using data which is plotted in Appendix E



Page 60

1 Exporta . Enter



Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .729a .531 .502 3.54508

a. Predictors: (Constant), Export

ANOVAb


1 Regression 227.728 1 227.728 18.120 .001a

Residual 201.082 16 12.568

Total 428.810 17

a. Predictors: (Constant), Export


Coefficientsa

Model


Standardized

Coefficients


1 (Constant) 6.716 1.374 4.889 .000

Export .044 .010 .729 4.257 .001


Earnings and Remittance

REGRESSION

/MISSING LISTWISE



/NOORIGIN



Page 61

/DEPENDENT Earnings

/METHOD=ENTER Remittance.

Regression9


v


Model

Variables

Entered

Variables

Removed Method

1 Remittancea . Enter

a. All requested variables

entered.


Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .877a .769 .755 2.48711

a. Predictors: (Constant), Remittance

ANOVAb


1 Regression 329.838 1 329.838 53.322 .000a

Residual 98.972 16 6.186

Total 428.810 17

a. Predictors: (Constant), Remittance


9This Regression is calculated by using data which is plotted in Appendix F



Page 62

Coefficientsa

Model


Standardized

Coefficients


1 (Constant) 1.184 1.511 .783 .445

Remittance .248 .034 .877 7.302 .000


Multi linier Regression Analysis

REGRESSION

/MISSING LISTWISE



/NOORIGIN

/DEPENDENT Earnings

/METHOD=ENTER Remittance Import Export.

Regression10

[DataSet0] C:\Users\uttam\Desktop\Earnings and Import.sav


Model

Variables

Entered

Variables

Removed Method

1 Export,

Remittance,

Importa

. Enter



Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

10

This Regression is calculated by using data which is plotted in Appendix G



Page 63

1 1.000a 1.000 1.000 .01187

a. Predictors: (Constant), Export, Remittance, Import

ANOVAb


1 Regression 428.808 3 142.936 1.015E6 .000a

Residual .002 14 .000

Total 428.810 17

a. Predictors: (Constant), Export, Remittance, Import


Coefficientsa

Model


Standardized

Coefficients


1 (Constant) -.011 .007 -1.451 .169

Remittance .016 .001 .057 27.841 .000

Import .023 .000 .808 330.747 .000

Export .013 .000 .207 203.884 .000


We can get the following equation,

Y= 0.016X1 +0.023X2+0.013X3 -0.011

So we can conclude for every unit increase in X1, we expect a 0.016 unit increase in Y, holding all other

variables constant. On the other hand for every unit increase in X2, we expect a 0.023 unit increase in Y,

holding all other variables constant. Again for every unit increase in X3, we expect a 0.013 unit increase

in Y, holding all other variables constant.

Here,



Page 64

Y= Earnings, X1= Import, X2 = Export, X3= Remittance

Comments

Variables R R2 Sig

Dependent Independent

Earnings Import 0.989 0.978 0.000

Earnings Export 0.729 0.531 0.001

Earnings Remittance 0.877 0.769 0.000

Earnings Import, Export and Remittance

1.00 1.00 0.000

Table 10 Summary Data on Regression analysis


prediction of the dependent variable. A value of 0.989 in import indicates a very good level of

prediction, a value of 0.729 in export indicates a good level of prediction, a value of 0.87 in remittance

indicates a very good level of prediction,. The "R Square" column represents the R2 value which is the

proportion of variance in the dependent variable that can be explained by the independent variables.

Here the value of 0.978 that independent variable import, explains 97.8% of the variability of our

dependent variable, earnings. Here the value of 0.531 that independent variable export, explains 53.1%

of the variability of our dependent variable, earnings. Here the value of 0.769 that independent variable

remittance, explains 76.9% of the variability of our dependent variable, earnings.

In multiple regressions, the value of R is 1.00, the R2 is also 1.00.

From the above discussion, we can say the lion share of earnings is contributed by import. Remittance is

also an important factor which contributes in foreign exchange earnings. Export also contributes foreign

exchange earnings.

So we can say, the first concern of the bank should be import section, second on remittance and third

on is export.



Page 65

6.2 Growth Analysis

Growth Rate=

* 100

Import Growth on diagram11

Figure 13 Growth Rate of Import

Comments: In FY 2011-2012, in month august the growth rate was 17.20%. Then it was increasing slowly. But in the month November growth rate was 0%. Also we can see in the month January, the growth rate was -86.91%. If we see the growth chart and diagram, we will be able to understand that growth rate of import is so much volatile. In the very beginning of FY 2013-2014 growth rate was also low.

11

This diagram is calculated by using data which is plotted in Appendix H

-100.00

-50.00

0.00

50.00

100.00

July

Sep

tem

be

r

No

vem

be

r

Jan

uar

y

Mar

ch

May

July

Sep

tem

be

r

No

vem

be

r

Jan

uar

y

Mar

ch

May

July

Sep

tem

be

r

No

vem

be

r

FY 2011-2012 FY 2012-2013 FY 2013-2014

Growth Rate of Import



Page 66

Export Growth on Diagram12

Figure 14 Growth Rate of Export

Comment: In FY 2012-2013, in month September the growth rate was 28.95%. Then it was increasing. In the month November growth rate was 116%. But we can see in the month January, the growth rate was -93.71%. If we see the growth chart and diagram, we will be able to understand that growth rate of export is so much volatile. Sometimes it goes up and sometimes is goes down and sometimes it is negatively sloped.

12

This diagram is calculated by using data which is plotted in Appendix I

-150.00

-100.00

-50.00

0.00

50.00

100.00

150.00

200.00

250.00

Au

gust

Sep

tem

be

r

Oct

ob

er

No

vem

be

r

De

cem

ber

Jan

uar

y

Feb

ruar

y

Mar

ch

Ap

ril

May

Jun

e

July

Au

gust

Sep

tem

be

r

Oct

ob

er

No

vem

be

r

De

cem

ber

FY 2012-2013 FY 2013-2014

Growth Rate of Export



Page 67

Remittance Growth on diagram13

Figure 15 Growth Rate of Remittance

Comment: In FY 2012-2013, in month August the growth rate was 20.63%. Then it was decreasing. In

the month January growth rate was -89.29%. After that the growth rate was 66.67% in February. After

that it starts decrease again. In FY 2013-2014, 16.98 were in July. Then it started decreasing. If we see

the growth chart and diagram, we will be able to understand that growth rate of remittance is also

volatile. Sometimes it goes up and sometimes is goes down. But it is comparative good than export and

import.

13

This diagram is calculated by using data which is plotted in Appendix J

-100.00

-50.00

0.00

50.00

100.00Ju

ly

Au

gust

Sep

tem

be

r

Oct

ob

er

No

vem

be

r

De

cem

ber

Jan

uar

y

Feb

ruar

y

Mar

ch

Ap

ril

May

Jun

e

July

Au

gust

Sep

tem

be

r

Oct

ob

er

No

vem

be

r

De

cem

ber

FY 2012-2013 FY 2013-2014

Growth Rate of Remittance



Page 68

6.3 Time series analysis

Import14

Figure 16 Time Series Plot of Import

Comments: If we want to know what will be the market possession of our bank we have to calculate

time series analysis. In above table we have made time series analysis, which indicates what will be the

future import in January to June FY 2013-2014. At first we have calculated moving average, after that

centered moving average, seasonal and irregular components, then trend value and finally we have

made forecast. Our forecast indicates that in FY 2013-2014 the amount of import as follows: January-

93.14, February-197.25. March-345.23, April-437.21, May-430.64, June-479.98, all the figures are million

in taka.

14

This diagram is calculated by using data which is plotted in Appendix K

0100200300400500600700800

Mo

nth

Au

gust

Oct

ob

er

De

cem

ber

Feb

ruar

y

Ap

ril

Jun

e

Au

gust

Oct

ob

er

De

cem

ber

Feb

ruar

y

Ap

ril

Jun

e

Au

gust

Oct

ob

er

De

cem

ber

Feb

ruar

y

Ap

ril

FY 2011-2012 2012-2013 2013-2014

Time Serise Plot

Import[million in TK]

Centered MovingAverage[CMA]

Forecast



Page 69

Export15

Figure 17 Time Series Plot of Export



future export in January to June FY 2013-2014. At first we have calculated moving average, after that

centered moving average, seasonal and irregular components, then trend value and finally we have

made forecast. Our forecast indicates that in FY 2013-2014 the amount of import as follows: January-

30.75, February-121.17. March-169.18, April-235.40, May-239.07, June-256.71, all the figures are million

in taka.

15

This diagram is calculated by using data which is plotted in Appendix L

050

100150200250300350400

Au

gust

Oct

ob

er

De

cem

ber

Feb

ruar

y

Ap

ril

Jun

e

Au

gust

Oct

ob

er

De

cem

ber

Feb

ruar

y

Ap

ril

Jun

e

2012-2013 2013-2014

Time Serise Plot

Export[million in TK]


Forecast



Page 70

Remittance16

Figure 18 Time Series Plot of Remittance



future remittance in January to June FY 2013-2014. At first we have calculated moving average, after

that centered moving average, seasonal and irregular components, then trend value and finally we have

made forecast. Our forecast indicates that in FY 2013-2014 the amount of import as follows: January-9,

February-22.37. March-38.23, April-37.29, May-37.48, June-37.54, all the figures are million in taka.

16

This diagram is calculated by using data which is plotted in Appendix M

01020304050607080

May

July

Sep

tem

be

r

No

vem

be

r

Jan

uar

y

Mar

ch

May

July

Sep

tem

be

r

No

vem

be

r

Jan

uar

y

Mar

ch

May

2011-2012 2012-2013 2013-2014

Time Series plot

Remittance[million in TK]


Forecast



Page 71

(𝑪𝒂𝒔𝒆)



Page 72

Case

Case: 1

Celebrating Pohela Baishakh 1421

Pohela Baishakh is a part and parcel of Bengali culture. It is the first day of Bengali Calendar year. Our

people observe this day with great festivities. The Baishakhi Mela which is celebrated is perhaps the

largest festival of Bengali culture. People from all walks of life join this festival in joyous mood. Urban

people try to keep a while away from their blind act of western culture and tend to be a ban Bengali at

least this day. In villages people pass the day meeting one another, giving and receiving invitations,

enjoying music etc. by local performers and doing many other festive deeds. Business men open new

books of account this very day which is known as Halkhata. Thus Pohela Baishakh comes with great

festivity.

Generally it is a govt. holiday. But our branch was opened that day. All of the employees of our branch

enjoyed this day with Panta Elish that was cooked in our office. Our branch is also near to Jagannath

University, so we also went there.

Case: 2

An incident in cash counter

In an early April the bank was open in its usual time. At that time I was working around the cash section.

There was a huge line in front of the cash withdrawal counter that day. A middle aged gentleman was

waiting to withdraw for a pretty long time, he was annoyed and cursing the bank authority for wasting

his valuable time by making him to stand in the line. He was cursing the inefficiency of the cash officers.

When his time came he threw the cheque in the face of the cash officer and demanded the delivery. It

was shameful for the officer on duty at the cash. He reacted violently. He came down from the cash

counter and charged the man verbally. It was simply a chaos inside the bank. Everybody was shouting.

At last the branch manager came to handle the situation. He took the customer involved to his office

with two other senior bank officers. The situation calm down and that man went without withdrawing

money. I was astonished to see the whole situation. I have never faced such event and I think that

situation could be handled in a better way. The number of officer at the cash counter should be

increased and the bank officer should never behave to a customer in that way, whatever he may did.

Bank is an institute for customer care and the interest of the customer should come first. I think that day

the bank manger also did not handle the situation properly. He could handle it in a more mature way,

but it was a unique experience for me. Seeing this other customers was also telling about their cash

system which is not good. Customers need to wait for long time as there officers are less. Therefore,

they must keep one or two extra officers in the cash department.



Page 73

Case: 3

Transfer of branch manager

When I was enrolled for my internship, my branch manager was Mr. Moinul Islam. But just before the

completion of my internship, he was transferred to Eskaton Branch. To me, he was a person of different

personality. He did not dominant at all; maintain good interpersonal relationship with all employees

inside the bank. He introduced a new way of banking with which the stuffs were not familiar at all. For

example, he redesigned the inner decoration for the branch. He changed the entire set up of the branch

and rearranged the furniture placement. He used cabinets for the first time instead of traditional tables

for keeping registry books and other documents. Eventually it turned the branch most spacious than

before which helped customers to build a positive impression about the bank.

Case: 4

Celebrating the Birthday of NBL

The then President of the People's Republic of Bangladesh Justice Ahsanuddin Chowdhury inaugurated

the bank formally on March 28, 1983. So in March 28, 2014 the bank has given steps in 32 years. In this

day we, all of the employees, celebrated the day with very enjoyment. Early in the morning our Manager

cut the cake. Then all the employees took sweets. We were very happy in this day. We also gave sweets

to our customers. They were also happy. Early in the morning we took 30 KG sweets, but it was ended

after late morning. Then we also brought 15 KG sweets for our customers. We took our lunch with

special items.

Case: 5

Wrong Entry in L/C Opening Form

I was appointed in L/C department that means foreign exchange department. Generally my duty was to

fill up L/C form, PAD and writing voucher. But one day I made mistake. I filled up the L/C opening form

wrongly. After some times my supervisor noticed it. He told about the matter. I was Scared. I thought

he will discharge me, but I was wrong. He did not give me any punishment rather he corrected it. He

told that,” you are new to our department, so you can do mistake. Our responsibility is to guide you in a

proper way”



Page 74

(𝑺𝑾𝑶𝑻 𝒂𝒏𝒅 𝑷𝑬𝑺𝑻 𝑨𝒏𝒂𝒍𝒚𝒔𝒊𝒔 𝑶𝒇 𝑵𝑩𝑳)



Page 75

8 SWOT and PEST Analysis of NBL

8.1 SWOT Analysis of the organization

All organization has some advantages and weakens. NBL also has some SWOTs. These are mentioned

below.

Figure 19 SWOT Analysis

8.1.1 Strengths of the organization

NBL is a very competitive organization. It is operated by a very efficient management group. There is a

good employee-employer relationship in its head office and also its all branches. It has a healthy dislike

of its competitors. NBL has sponsored to the top programs, seminars, writing competition and gained

valuable coverage. In Bangladesh, it has 175 branches to provide services to the people. All these

branches are located in such a place in where customers feel comfortable and safe to make their

transaction. There are 3,442 staffs who work for NBL either in back office or in front office. It has a

better financial position than others in the banking business

8.1.2 Weakness of the organization

The organization does not have a diversified range of products & services. Still the bank is not fully

computerized. Manual registers are used in some cases. However, the income of the business is still

heavily dependent upon its share on the retail market. It caters less the corporate market than the SCB.

This may leave it vulnerable if for any reason its market share erodes. The retail sector is very price

sensitive. But it pays very less interest than other banks. So, if they found higher interest rate offering by

SWOT Analysis

Strength

Weakness

Opportunitie

Threat



Page 76

other private banks of Bangladesh then they will lose customers. It has less promotion campaign than

the other bank, because they believe brand value is the top promoting entity for the company.

8.1.3 Opportunities of the organization

NBL has a goodwill that it provides different banking services to the people with a minimum cost and cut

a very little charge on its transactions. Although it already has 175 branches to provide services to its

customers, it also has the opportunity to build up more branches to make more convenient for the

customers. The banking business of NBL and its other social activities have increased day by day.

Products & services development offers NBL many opportunities. There is the opportunity to develop

products and services such as insurance business & huge investment in capital market etc. Such high

value items will tend to have associated with them, high profits. There are also global marketing events

that can be utilized to support the brand such as the sports & other cultural activities.

8.1.4 Threats of the organization

NBL is exposed to the international nature of trade. It has to deals in different currencies and so costs

and margins are not stable over long periods of time. Such an exposure could mean that NBL may be

doing banking business at a loss. The new technology emerges to protecting the currency value & use

options for better credit rate earnings. The market for banking sector is very competitive. Competitors

are developing alternative brands to take away the market share of NBL.

8.2 Converting Threats into Opportunities NBL has to expose its international nature of trade more efficiently. It has to recover costs and maintains

margins over long periods of time. The new technology has to use to protecting the currency value &

use options for better credit rate earnings. NBL has to come to with other sort of criterion that’s why the

competitor has to fight very long to copy that exposure. NBL has to give a better deal in the banking fees

& charges for the customers for the retail banking sector.

8.3 Converting Weakness into Strength NBL has to focus equally to both ranges of customers either retail or corporate. It has to build up a

proper strategy that’s why the corporate customers can be interested to open more of corporate

account in NBL. NBL also has to give higher interest rate for various products & services to gain more

market share in banking business. They have to advertise their brand name more .They can sponsor

their name for various social activities which will bring up NBL value more to the local customers. They

can also make social awareness to the local customers.

8.4 PEST Analysis

We know that there are some external macro-environment in which the firm operates can be

expressed in terms of the following factors:

Political

Economic

Social

Technological



Page 77

NBL considers the PEST analysis very important to understand better the local environment

before beginning the marketing process. NBL’s environmental analysis is a continuous process.

The following factors should be counted:

Figure 20 PEST Analysis

NBL’s environment is made up from:

The internal environment - internal customers like, office technology, wages and finance etc.

The micro-environment - external customers like agents and distributors, suppliers,

competitors

The macro-environment - Political and legal forces, Economic forces, Socio-cultural forces and

Technological forces. These are known as PEST factors.

Political Technological

Social Economic

PEST Analysis



Page 78

𝑭𝒊𝒏𝒅𝒊𝒏𝒈𝒔 &

𝑹𝒆𝒄𝒐𝒎𝒎𝒆𝒏𝒅𝒂𝒕𝒊𝒐𝒏 𝒐𝒇 𝒕𝒉𝒆 𝑹𝒆𝒑𝒐𝒓𝒕



Page 79

9 Findings & Recommendations of the Report

9.1 Findings

Analyzing the performance of Branch regarding Foreign Exchange it is clear that foreign

Exchange Earnings of NBL is severely affected by Import.

The Second element which affects the foreign exchange revenue is remittance and then

export.

The trend of import, export and remittance are so much volatile.

Sometimes the growth rate of import, export and remittance is negatively sloped.

The value of import and export is affected by inflation rate and exchange rate.

The export and import have some seasonal effect.

The remittance is also affected by some seasonality problem.

Now the customer has to provide 100% margin against their L/C, because at this moment there

is no manager in the branch, he has been transferred to other branch.

The Foreign Exchange Department is very much Strong. Because they use in dealing with the

foreign Bank in term of L/C opening and amendment of L/C.

The top executives and officers are very helpful to the clients. Some of our businessmen do not

know the exact procedures of international trade. The officers of National Bank Ltd help them to

properly execute their business.

There are no promotional activities in the bank and also there is no advertisement of National

Bank running in TV screen.

Financing in the international trade is very crucial for the economy as well as it is risky.

Sometimes the government imposes restriction to import and export on some products. As a

result the rate of opening L/C become reduces.

9.2 Recommendations There are some problems on NBL. It is really tough to recommend a bank specially such a bank which is

one of the most well reputed banks of the country only in a short three months internship period.

Nevertheless I am making some recommendation based on my observation.

If the bank wants to earn more profit from foreign exchange departments, it has to concern

more on import. Because the earnings of foreign exchange department is more affected by

import than export and remittance

If it is unable to increase its import, then it may concern on remittance. It also affects the

earnings of foreign exchange.

There is no sequence of revenue in import, export and revenue section. In one year it is high but

in next year it is so much low. So, a sequence is needed.

The volatility of revenue in foreign exchange department should be removed.

In every month there should have a target and that should be fulfilled.

The employees may be rewarded for fulfilling their target.

The bank should concern on negative growth rate.



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The bank uses lots of registers to record foreign exchange transactions which is very time

consuming and also has possibilities of occurring errors. The bank should maintain complete

computerized recording system as soon as possible.

The branch should increase the number of employees in the Foreign Exchange Department to

reduce their stress and also for bringing speed in service delivery.

They should attract more customers so that remittance transaction may increase.

The customer should be given some margin in case of L/C opening.

The bank is operating by a back dated software. The version of the software should be

increased.

Need to revise the Foreign Exchange relate charges.

In case of importing goods the Bank should aware about over invoicing so that nobody can get

chance to send money abroad illegally.

Foreign Exchange Section has to be decentralized to make their decisions with more

responsibility.

9.3 Conclusion Bank is a very important and vital for economic development in mobilizing capital and other resources.

NBL is also contributing to the advancement of the socio-economic condition of the country. To keep

pace with the current market and demand, NBL is following several strategies and taking new initiatives,

offering new products and services to the customers. The bank should maintain well- structured

communication from upper level to lower level. NBL have a strong position in the competitive market. It

is among one of the fastest growing Bank.

As the economy of Bangladesh is increasing so is the foreign trade and NBL has played its role in making

sure that things go smoothly. The bank is doing its best to provide better Import, Export and Remittance

services to the customers.

Export, Import and Remittance are all showing positive trends even after the global challenges that we

are facing today. But the foreign trade handled by bank decreased in recent year. NBL should care about

it.

9.4 Bibliography Analysis, P. 6. (2002, September 30). Planning Analysis:Calculating Growth Rates. Retrieved from

Planning Analysis: http://pages.uoregon.edu/rgp/PPPM613/class8a.htm

Bank, B. (2013). Monthly Economic Trends. Monthly Economic Trends 2013,14, 10-11, 81,93.

Bank, B. (2014, January 11). Exchange Rate. Retrieved January 11, 2014, from Bangladesh-Bank:

http://www.bangladesh-bank.org/econdata/exchangerate.php

Bank, N. (2009,2010,2011,2012). Annual Report. Dhaka: National Bank.

Gishen, S. (2209, April 03). What is foreign exchange? Retrieved April 19, 2013, from Investopedia:

http://www.investopedia.com/ask/answers/08/what-is-foreign-exchange.asp



Page 81

Investopedia. (2008). Definition of 'Foreign Exchange'. Retrieved April 25, 2013, from Investopedia:

http://www.investopedia.com/terms/f/foreign-exchange.asp

laerd. (2013, April 25). Linear Regression Analysis using SPSS. Retrieved May 1, 2013, from laerd:

https://statistics.laerd.com/spss-tutorials/linear-regression-using-spss-statistics.php

Mishkin, F. S. (2006). The Economies of Money Banking, And Financial Markets. New York: PEARSON.

Rahman, M. A. (2014, March 1,5,17). What is back to back L/C, Procedure of L/C opening, Foreign

exchange, PAD. (U. Golder, Interviewer)

Statiestics, B. B. (2014, February 05). Bangladesh Bureau of Statistics (BBS) . Retrieved February 05,

2014, from Bangladesh Bureau of Statistics (BBS) :

http://www.bbs.gov.bd/PageWebMenuContent.aspx?MenuKey=239

Students, S. H. (2008, Unknown Unknown). Statistics Help For Students. Retrieved May 1, 2008, from

Statistics Help For Students: http://statistics-help-for-

students.com/How_do_I_interpret_data_in_SPSS_for_Pearsons_r_and_scatterplots.htm#.U28L

soGSzGA

Teresa, F. D. (n.d.). How to Calculate Growth Rate. Retrieved from WikiHow:

http://www.wikihow.com/Calculate-Growth-Rate

9.5 Reference Academy, J. (2013, April 18). Excel - Time Series Forecasting - Part 1 of 3, Part 2 of 3,- Part 3 of 3. Excel -

Time Series Forecasting. Youtube. http://www.youtube.com/watch?v=gHdYEZA50KE

Akter, S. (2005). Mercantile Bank Ltd: An Overview of Foreign Exchange Operations. Dhaka.

Gupta, S. G. (2008). BUSINESS STATISTICS. New Delhi: Sultan Chand and Sons.

Islam, M. M. (2013). “Sustainable Financial Inclusion and Poverty Alleviation. Dhaka.

Peter D. Rose, S. C. (2013). Bank Management and Financial Services. New York: McGraw-Hill.



Page 82

9.6 Appendix

A:

B:

FY Month Import Inflation Rate Exchange Rate

2011-2012 July 186.03 11.85 74.71

August 217.92 12.04 73.62

September 266.31 12.66 75.23

October 351.28 10.99 76.20

November 351.25 9.87 76.86

December 381.42 7.62 81.85

January 49.82 8.58 84.44

February 89.94 6.94 81.76



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March 133.33 6.70 81.80

April 183.43 6.33 81.89

May 213.84 6.01 81.93

June 313.06 5.54 82.82

2012-2013 July 379.09 5.21 81.70

August 447.77 4.97 81.71

September 368.69 4.96 81.75

October 499.44 5.86 81.21

November 549.24 6.55 81.49

December 650.61 7.14 79.83

January 64.95 6.62 79.21

February 119.06 7.84 78.85

March 180.67 7.71 78.21

April 232.26 8.34 77.94

May 296.27 7.98 77.76

June 345.30 8.05 77.77

2013-2014 July 398.08 7.84 77.75

August 426.07 7.39 77.75

September 470.39 7.13 77.75

October 525.59 7.03 77.75

November 587.01 7.15 77.75

December 671.76 7.35 77.75

C:

FY Month Export Inflation Rate Exchange Rate

2012-2013 July 0 5.21 81.70

August 30.23 4.97 81.71

September 39.24 4.96 81.75

October 39.79 5.86 81.21

November 86.38 6.55 81.49

December 114.16 7.14 79.83

January 7.9 6.62 79.21

February 22.86 7.84 78.85

March 35.19 7.71 78.21

April 72.48 8.34 77.94

May 100.31 7.98 77.76

June 134.54 8.05 77.77

2013-2014 July 167.94 7.84 77.75

August 188.93 7.39 77.75

September 208.37 7.13 77.75

October 130.92 7.03 77.75

November 250.36 7.15 77.75



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December 262.02 7.35 77.75

D:

Month Import Earnings[ All figures are million in Taka]

FY 2011-2012 FY 2012-2013 FY 2013-2014

Import Earnings Import Earnings Import Earnings

July 186.03 4.36 379.09 8.89 398.08 9.33

August 217.92 5.11 447.77 10.50 426.07 9.99

September 266.31 6.24 368.69 8.66 470.39 11.02

October 351.28 8.23 499.44 11.71 525.59 12.32

November 351.25 8.23 549.24 12.87 587.01 13.76

December 381.42 8.94 650.61 15.25 671.76 15.75

January 49.82 1.17 64.95 1.52 -

February 89.94 2.11 119.06 2.79 -

March 133.33 3.13 180.67 4.23 -

April 183.43 4.30 232.26 5.44 -

May 213.84 5.01 296.27 6.94 -

June 313.06 7.34 345.30 8.09 -

E:

Month Export Earnings[ All figures are million in Taka]

FY 2012-2013 FY 2013-2014

Export Earnings Export Earnings

July - - 167.94 2.11

August 30.23 0.38 188.93 2.37

September 39.24 0.49 208.37 2.62

October 39.79 0.50 130.92 1.64

November 86.38 1.08 250.36 3.14

December 114.16 1.43 262.02 3.29

January 7.9 0.09 - -

February 22.86 0.29 - -

March 35.19 0.44 - -

April 72.48 0.91 - -

May 100.31 1.23 - -

June 134.54 1.69 - -

F:



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Month Remittance Earnings[ All figures are million in Taka]

FY 2012-2013 FY 2013-2014

Remittance Earnings Remittance Earnings

July 40.03 0.63 39.65 0.62

August 47.39 0.76 44.32 0.70

September 53.14 0.84 45.10 0.71

October 60.91 0.96 45.87 0.72

November 65.19 1.03 49.76 0.78

December 71.05 1.12 54.43 0.86

January 7.92 0.12

February 12.62 0.20

March 17.99 0.28

April 22.60 0.36

May 27.99 0.44

June 33.44 0.53

G:

FY Month Total Import Total Export Total Remittance

Total Earnings from Import, Export and Remittance

2012-2013

July 379.09 0 40.03 9.52

August 447.77 30.23 47.39 11.64

September 368.69 39.24 53.14 9.99

October 499.44 39.79 60.91 13.17

November 549.24 86.38 65.19 14.98

December 650.61 114.16 71.05 17.8

January 64.95 7.9 7.92 1.73

February 119.06 22.86 12.62 3.28

March 180.67 35.19 17.99 4.95

April 232.26 72.48 22.60 6.71

May 296.27 100.31 27.99 8.61

June 345.30 134.54 33.44 10.31

2013-2014

July 398.08 167.94 39.65 12.06

August 426.07 188.93 44.32 13.06

September 470.39 208.37 45.10 14.35

October 525.59 130.92 45.87 14.68

November 587.01 250.36 49.76 17.68

December 671.76 262.02 54.43 19.9



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H:

Month Earnings Deviation from Present month to past month

Growth Rate{%}

FY 2011-2012 July 4.36

August 5.11 0.75 17.20

September 6.24 1.13 22.11

October 8.23 1.99 31.89

November 8.23 0 0.00

December 8.94 0.71 8.63

January 1.17 -7.77 -86.91

February 2.11 0.94 80.34

March 3.13 1.02 48.34

April 4.3 1.17 37.38

May 5.01 0.71 16.51

June 7.34 2.33 46.51

FY 2012-2013 July 8.89 1.55 21.12

August 10.5 1.61 18.11

September 8.66 -1.84 -17.52

October 11.71 3.05 35.22

November 12.87 1.16 9.91

December 15.25 2.38 18.49

January 1.52 -13.73 -90.03

February 2.79 1.27 83.55

March 4.23 1.44 51.61

April 5.44 1.21 28.61

May 6.94 1.5 27.57

June 8.09 1.15 16.57

FY 2013-2014 July 9.33 1.24 15.33

August 9.99 0.66 7.07

September 11.02 1.03 10.31

October 12.32 1.3 11.80

November 13.76 1.44 11.69

December 15.75 1.99 14.46

I:


Growth Rate{%}

FY 2012-2013 August 0.38

September 0.49 0.11 28.95



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October 0.5 0.01 2.04

November 1.08 0.58 116.00

December 1.43 0.35 32.41

January 0.09 -1.34 -93.71

February 0.29 0.2 222.22

March 0.44 0.15 51.72

April 0.91 0.47 106.82

May 1.23 0.32 35.16

June 1.69 0.46 37.40

FY 2013-2014 July 2.11 0.42 24.85

August 2.37 0.26 12.32

September 2.62 0.25 10.55

October 1.64 -0.98 -37.40

November 3.14 1.5 91.46

December 3.29 0.15 4.78

J:


Growth Rate{%}

FY 2012-2013 July 0.63

August 0.76 0.13 20.63

September 0.84 0.08 10.53

October 0.96 0.12 14.29

November 1.03 0.07 7.29

December 1.12 0.09 8.74

January 0.12 -1 -89.29

February 0.2 0.08 66.67

March 0.28 0.08 40.00

April 0.36 0.08 28.57

May 0.44 0.08 22.22

June 0.53 0.09 20.45

FY 2013-2014 July 0.62 0.09 16.98

August 0.7 0.08 12.90

September 0.71 0.01 1.43

October 0.72 0.01 1.41

November 0.78 0.06 8.33

December 0.86 0.08 10.26



Page 88

K:

t FY Month

Import[million in

TK]

Moving

Average[MA]

Centered

Moving

Average[CMA] St, It St Deseasonalize Tt Forecast

1 2011-2012 July 186.03 1.07 174.37 209.50 223.51

2 August 217.92 1.05 207.06 216.73 228.10

3 September 266.31 0.89 299.31 223.97 199.27

4 October 351.28 292.37 281.02 1.25 1.17 299.65 231.21 271.04

5 November 351.25 269.67 259.00 1.36 1.36 258.27 238.44 324.28

6 December 381.42 248.34 237.26 1.61 1.71 223.28 245.68 419.69

7 January 49.82 226.17 212.19 0.23 0.22 228.18 252.92 55.22

8 February 89.94 198.20 186.75 0.48 0.45 197.82 260.15 118.28

9 March 133.33 175.30 169.60 0.79 0.78 170.35 267.39 209.28

10 April 183.43 163.90 191.34 0.96 0.98 188.09 274.63 267.83

11 May 213.84 218.78 248.60 0.86 0.95 226.21 281.87 266.45

12 June 313.06 278.42 298.03 1.05 1.04 301.85 289.10 299.84

13 2012-2013 July 379.09 317.65 343.98 1.10 1.07 355.32 296.34 316.16

14 August 447.77 370.32 398.27 1.12 1.05 425.46 303.58 319.50

15 September 368.69 426.22 454.34 0.81 0.89 414.38 310.81 276.54

16 October 499.44 482.47 456.30 1.09 1.17 426.04 318.05 372.85

17 November 549.24 430.12 402.72 1.36 1.36 403.86 325.29 442.39

18 December 650.61 375.33 359.66 1.81 1.71 380.85 332.53 568.05

19 January 64.95 344.00 321.73 0.20 0.22 297.48 339.76 74.18

20 February 119.06 299.47 278.38 0.43 0.45 261.87 347.00 157.76

21 March 180.67 257.30 231.86 0.78 0.78 230.83 354.24 277.25

22 April 232.26 206.42 234.18 0.99 0.98 238.16 361.47 352.52

23 May 296.27 261.94 287.52 1.03 0.95 313.42 368.71 348.54

24 June 345.3 313.11 337.25 1.02 1.04 332.93 375.95 389.91

25 2013-2014 July 398.08 361.40 385.84 1.03 1.07 373.12 383.19 408.82

26 August 426.07 410.28 434.51 0.98 1.05 404.84 390.42 410.90

27 September 470.39 458.74 485.95 0.97 0.89 528.69 397.66 353.81

28 October 525.59 513.15 1.17 448.34 404.90 474.66

29 November 587.01 1.36 431.63 412.13 560.50

30 December 671.76 1.71 393.24 419.37 716.41

31 January 0.22 426.61 93.14

32 February 0.45 433.85 197.25

33 March 0.78 441.08 345.23

34 April 0.98 448.32 437.21

35 May 0.95 455.56 430.64

36 June 1.04 462.79 479.98

SUMMARY OUTPUT

Regression Statistics

Multiple R 0.66098493

R Square 0.43690108

Adjusted R Square0.4167904

Standard Error73.6100913

Observations 30

ANOVA

df SS MS F Significance F

Regression 1 117714.8263 117714.8263 21.72483334 7.00485E-05

Residual 28 151716.4751 5418.445538

Total 29 269431.3013

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%

Intercept 202.257914 27.56497769 7.337496012 5.45693E-08 145.7936167 258.722211 145.7936 258.722211

t 7.23711932 1.552699832 4.660990597 7.00485E-05 4.056557892 10.41768074 4.056558 10.41768074



Page 89

L:

akaYt Base line akaYt/CMA Yt/St

t FY Month

Export[million in

TK]

Moving

Average[MA]

Centered

Moving

Average[CMA] St, It St Deseasonalize Tt Forecast

1 2012-2013 August 30.23 1.08 27.92 15.65 16.94

2 September 39.24 1.13 34.72 26.50 29.96

3 October 39.79 48.91 59.40 0.67 0.66 60.64 37.36 24.51

4 November 86.38 69.89 65.98 1.31 1.31 65.98 48.22 63.13

5 December 114.16 62.06 59.94 1.90 1.90 59.94 59.07 112.51

6 January 7.9 57.83 51.43 0.15 0.15 51.43 69.93 10.74

7 February 22.86 45.03 39.82 0.57 0.57 39.82 80.79 46.38

8 March 35.19 34.61 46.16 0.76 0.76 46.16 91.64 69.86

9 April 72.48 57.71 71.67 1.01 1.01 71.67 102.50 103.66

10 May 100.31 85.63 102.22 0.98 0.98 102.22 113.35 111.23

11 June 134.54 118.82 133.37 1.01 1.01 133.37 124.21 125.30

12 2013-2014 July 167.94 147.93 161.44 1.04 1.04 161.44 135.07 140.51

13 August 188.93 174.95 174.49 1.08 1.08 174.49 145.92 158.00

14 September 208.37 174.04 184.34 1.13 1.13 184.34 156.78 177.21

15 October 130.92 194.65 203.78 0.64 0.66 199.53 167.64 109.99

16 November 250.36 212.92 1.31 191.22 178.49 233.70

17 December 262.02 1.90 137.58 189.35 360.62

18 January 0.15 200.20 30.75

19 February 0.57 211.06 121.17

20 March 0.76 221.92 169.18

21 April 1.01 232.77 235.40

22 May 0.98 243.63 239.07

23 June 1.01 254.49 256.71

Monthly Data for Export

SUMMARY OUTPUT



R Square 0.79427985

Adjusted R Square0.780565173

Standard Error 28.81482924

Observations 17

ANOVA


Regression 1 48086.15728 48086.15728 57.91458811 1.58432E-06

Residual 15 12454.41577 830.2943843

Total 16 60540.57305

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%

Intercept 4.79126565 14.61775297 0.327770326 0.747615549 -26.36573727 35.94827 -26.36573727 35.94827

t 10.85625297 1.426546619 7.610163475 1.58432E-06 7.815640831 13.89687 7.815640831 13.89687



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M:

akaYt Base line akaYt/CMA Yt/St

t FY Month

Remittance[million

in TK]

Moving

Average[MA]

Centered

Moving

Average[CMA] St, It St Deseasonalize Tt

1 2011-2012 May 22.12 0.99 22.30 38.17

2 June 28.99 0.99 29.16 38.16

3 2012-2013 July 40.03 34.63 38.51 1.04 1.03 38.68 38.14

4 August 47.39 42.39 46.38 1.02 1.04 45.73 38.12

5 September 53.14 50.37 53.51 0.99 1.00 53.27 38.11

6 October 60.91 56.66 59.62 1.02 0.99 61.31 38.09

7 November 65.19 62.57 56.92 1.15 1.15 56.92 38.07

8 December 71.05 51.27 45.23 1.57 1.57 45.23 38.06

9 January 7.92 39.20 33.30 0.24 0.24 33.30 38.04

10 February 12.62 27.40 21.34 0.59 0.59 21.34 38.03

11 March 17.99 15.28 17.79 1.01 1.01 17.79 38.01

12 April 22.6 20.30 22.90 0.99 0.99 22.90 37.99

13 May 27.99 25.51 28.21 0.99 0.99 28.21 37.98

14 June 33.44 30.92 33.64 0.99 0.99 33.64 37.96

15 2013-2014 July 39.65 36.35 38.49 1.03 1.03 38.32 37.94

16 August 44.32 40.63 42.18 1.05 1.04 42.77 37.93

17 September 45.1 43.74 45.00 1.00 1.00 45.21 37.91

18 October 45.87 46.26 47.53 0.97 0.99 46.17 37.89

19 November 49.76 48.79 1.15 43.45 37.88

20 December 54.43 1.57 34.65 37.86

21 January 0.24 37.84

22 February 0.59 37.83

23 March 1.01 37.81

24 April 0.99 37.79

25 May 0.99 37.78

26 June 0.99 37.76

Monthly Data for Remittance

SUMMARY OUTPUT



R Square 6.5297E-05

Adjusted R Square -0.055486631

Standard Error 12.48326109

Observations 20

ANOVA


Regression 1 0.183168262 0.183168262 0.001175423 0.973028

Residual 18 2804.972532 155.8318074

Total 19 2805.155701

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0%Upper 95.0%

Intercept 38.19105684 5.798867449 6.585950994 3.47192E-06 26.00809 50.37402528 26.00809 50.3740253

t -0.016596415 0.484080102 -0.03428444 0.973027665 -1.03361 1.00041814 -1.03361 1.00041814



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Foreign Exchange Performance: An Evaluation of National Bank Ltd, Islampur Branch

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