A research plan is really of import & A ; indispensable for geting experience through acquisition and distributing the range of Knowledge. I have done my research plan in National Bank Limited. Foreign Exchange Branch. This research study is aimed at supplying a comprehensive image to the countries of Foreign Exchange operation of National Bank Limited. The study has been divided into 12 parts. These are- Introduction. Brief History of Banking Sector of Bangladesh. Corporate reappraisal of NBL. Foreign Exchange. Documents Used in Foreign Exchange Business. Letter of Credit ( L/C ) . Import. Export. Foreign Remittance. Findingss and Analysis. References. National Bank Limited is one of the largest commercial Bank of Bangladesh. The chief aim of the Bank is to supply all of banking services at the doorsills of the people. The Bank besides participates in assorted societal and development plans and takes portion in execution of assorted policies and promises made by the Government.
National Bank Limited plays a pioneering function in managing foreign trade and foreign exchange minutess. With broad web of subdivisions at place and a big figure of analogous Bankss worldwide. it is managing the largest volume of export-import concern including homebound remittals. For this ground. Foreign Exchange of the Bank is really much necessity. But now a day’s banking sector of Bangladesh is enduring the disease of default civilization which is the effect or consequence of bad public presentation of most Bankss. There are three types of manners of foreign exchange market. which are- Export Financing. Import Financing and Foreign Remittance.
Foreign Exchange Branch does these foreign exchange activities immensely. In this study. I mention the overall operating process of foreign exchange dealing of National Bank Limited. I besides mention the findings of my study and depict the recommendation to get the better of the restriction. I have taken all the sensible attention to guarantee the truth and quality to do the study criterion. And I believe that it has included all the necessary information to be relevant.
ORIGIN OF THE REPORT
As a compulsory portion the BBA Program. all the pupils of the module of Business Studies. Premier University. Chittagong have to undergo a three month long research plan with an aim of deriving practical cognition about current concern universe. After this research plan each and every pupils have to subject a research study adverting their activities during the research plan. I’ve started my research at the National Bank Limited. Foreign Exchange Branch. At the terminal of the research plan I am subjecting my research study concentrating on the part of Foreign Exchange operation to the overall public presentation of bank particularly on profitableness position under the supervising of Tasnim Uddin Chowdhury. Lecturer. Department of Finance. in Premier University. Chittagong.
OBJECTIVES OF THE STUDY
The general aim of the survey is to garner practical cognition sing banking system and operation. The research gives us a opportunity to associate the four twelvemonth long theoretical acquisition of BBA Program with the reserch experience. This consists the followers:
To acquire an overall thought about the Foreign exchange Business of National Bank Limited. To use theoretical cognition in the practical field.
To depict the organisational construction. direction. background. maps and aims of the bank and its part to the national economic system. To accomplish overall apprehension of National Bank Limited.
To analyse the funding systems of the bank to happen out any conducive field. To analyze the profitableness and productiveness of the bank.
To get cognition about the mundane banking operation of National Bank Limited.
To measure the consequence of universe recession on foreign exchange income of NBL. Foreign Exchange Branch.
To understand the existent direction state of affairs and seek to urge for bettering bing jobs.
Scope OF THE STUDY
This survey provides those Scopess of cognizing are the undermentioned: History and public presentation of National Bank Limited.
Footings used in foreign exchange operations
Foreign exchange operations of National Bank Limited
Entire construct of Foreign Exchange Operation.
METHODOLOGY OF THE STUDY
The study is prepared on the basic of foreign Exchange of National Bank Limited. To carry on the overall survey. at first I explored the beginnings of Primary and Secondary information and information. Different files of the section and statement prepared by FED helped me to fix this study. To present numerical information. I used the Annual Report of 2008 and monthly statement of January to October 2009 of National Bank Limited. Foreign Exchange Branch. For fixing this study I have used some graphical representation to happen out different types of analytical and reading.
Beginnings OF DATA
As mentioned earlier. chiefly primary and secondary information has been used. Sometimes the clients gave some of import information sing the services of the Bank:
Official records of National Bank Limited ( NBL ) . .
Monthly Statement of NBL.
Annual Report of NBL.
Other manual information.
Assorted publications on the Bangladesh Bank.
Newspaper reports in this concern.
DATA ANALYSIS AND INTERPRETATION
Both quantitative and qualitative analysis will be performed on the findings. The quantitative analysis will be done on the tendency of export- import. growing form of export-import. pre and station installations provided for easing the export-import operations. Qualitative analyses will be based on the macroeconomic variables and foreign exchange policy provided by Bangladesh bank. the cardinal bank of Bangladesh. Different statistical tools will be used for the analysis of the findings.
LIMITATIONS OF THE STUDY
To supply current information and to do the study read-worthy. support from assorted beginnings is indispensable. In malice of holding my heart-whole attempt. I could non roll up some information required at the clip of the survey. So this survey is non free from the undermentioned restriction: Due to inaccessibility of latest one-year study ( Annual study 2009 ) . I have to fix the study on the footing of one-year study 2008. As a consequence. analysis. presentation of informations may non demo the bing position/present status of National Bank Limited. For the whole research I had merely 90 yearss. out of which I get 61 yearss because of late beginning of research plan. which were wholly deficient. So I faced clip deficit highly. Lack of old experience to fix this type of study and it is wholly new to me as an houseman.
Foreign exchange division follows Uniform Customs and Practice for Documentary Credits ( UCPDC ) . but within this short period. I was wholly stunned to understand. Learning all the banking maps within merely two months was truly hard. Sometimes the officers of National Bank Limited were really busy. For this ground the personal did non co-operate me. National Bank Limited did non give me any sort of pecuniary support for this research plan Most of the on the job yearss in NBL. I have to work in hard currency section to assist in IPO subscription aggregation. so I get limited clip work in other sections to hold practical cognition Another restriction of this study is Bank’s policy of non unwraping some informations and information for obvious ground. which could be really much helpful.
BRIEF HITORY OF BANKING SECTOR OF BD
Development OF THE WORD ‘BANK’
The word bank originated from Italian word “Banca” . Banca means long tool. In ancient clip Italian Jews merchandiser used to make concern of imparting money by sitting on the tools. It is assumed that the word “bank” derived from the word Banca. To run into the disbursal of war of 1171 one type recognition certification was launched in Italy at an involvement rate of 5 % it was called as Monte in Italian linguistic communication and Bank in German linguistic communication so German linguistic communication was widely used in Italy. As a consequence the word Bank bit by bit changed to the word Banca from which the word Bank originated.
THE EMERGENCE OF MODERN Banking
The linguistics and etymologists suggests an interesting narrative about banking beginnings. Both the old Gallic word “Banque” and the Italian word Banca were used centuries ago to intend a bench or moneychangers table. This describes rather good what historiographers have observed refering the first bankers. who lived more than 2000 old ages ago. They were money modifiers. situated normally at tabular array or in a little store in the commercial territory. helping travellers who came to town by interchanging foreign coins for local money or dismissing commercial notes for a fee in order to provide merchandisers with working capital. The first bankers likely used their ain capital to fund their activities. but it was non long before the thought of pulling sedimentation and procuring impermanent loans from affluent clients became a beginning of bank support.
Loans were so made to merchant’s shippers and landholders at rates of involvements low as 6 per centum per annum to every bit high as 48 per centum a month for the hazardous ventures. Most of the early bank was Grecian in beginning. The banking industry bit by bit dispersed outward from the classical civilisations of Greece and Rome into northern and western Europe. The early bank in Europe was topographic points for safe maintaining of valuable points ( such as gold and silver bullion ) as people came to fear loss of their plus due to war. larceny. or expropriation by authorities. When settlements were established in North and South America. old universe banking pattern were transferred.
DEVELOPMENT OF Banking IN BANGLADESH
Since early British regulation. the history of banking in Bangladesh district shows that the traditional trade-networks developed before the Bankss invaded rural countries. And the banking services have easy flourished in Bangladesh district. Even today. in many topographic points. usurers provide recognition services. Small tradesmans and man of affairs use informal recognition at high involvement rate. Traditional mahjong’s money loaning concern bit by bit declined due to enlargement of bank and the micro recognition plans of NGOs. concerted Bankss and authorities bureaus.
PUBLIC SECTOR BANKS
During the release war in 1971. the economic. political. and societal system including the banking system was independently damaged. At that clip. all large and average fiscal establishments except two little Bankss had their caput office in the West Pakistan. The non-beagle proprietors and directors of the fiscal constitutions that operated in East Pakistan had abandoned them. After independency in 1971. the new authorities had to take over direction and ownership of all such establishments. The Bankss Nationalization Order 1972 was issued to nationalise Bankss and fiscal establishments ( except those incorporated abroad ) in order to command pandemonium in the field of ownership. party bureaucratism. the clerisy. and force per unit area group. By several orders the authorities of Peoples Republic of Bangladesh created- Six nationalized commercial Bankss ( NCBs ) :
1. Sonali Bank
2. Agrani Bank
3. Janata Bank
4. Rupali Bank
5. Pubali Bank
6. Uttra Bank
One industrial bank ( BSB )
One agricultural bank ( BKB )
One industrial development fiscal establishment ( BSRS ) The bank and fiscal establishments which originated during the Pakistan period and were merged. and renamed and working after independency of Bangladesh. In the twelvemonth 1983. the authorities allowed private sector to take part in the banking concern. The Publi Bank and the Uttara Bank were denationalized in 1985. due to non profitableness. This action reduced the figure of NCBs to four. Such restructuring of public sector Bankss was in order to play their function in industry. agribusiness. export. self –employment etc.
Private COMMERCIAL BANKS
Taking advantage of the liberalisation policy of the authorities sing engagement of private sector in the banking concern. a figure of private Bankss were established in –and –after 1983. With the outgrowth of private Bankss in Bangladesh. a competitory state of affairs in the sector has been created. Now there are 48 commercial Bankss in Bangladesh which are enlisted with Bangladesh Bank. among them four ( 4 ) are NCBs. five ( 5 ) are specialised Bankss. 20 nine ( 29 ) are private commercial Bankss and 10s ( 10 ) are foreign commercial Bankss. The outgrowth of private Bankss has added a new dimension to the banking system in Bangladesh. The private commercial Bankss show a steady growing in footings of figure of subdivisions. sedimentation and progresss.
Corporate REVIEW OF NATIONAL BANK
History of National Bank Limited
National Bank Limited has its comfortable yesteryear. glorious nowadays. prospective hereafter and under treating undertakings and activities. Established as the first private sector Bank to the full owned by Bangladeshi enterprisers. NBL has been booming as the largest private sector bank with the transition of clip after confronting many emphasis and strain. The member of the board of managers is originative man of affairs and international economic expert. For rendering all modern services. NBL. as a fiscal establishment automated all it’s subdivisions with computing machine web in conformity with the competitory commercial demand of clip. Furthermore. sing it’s forth- coming future the substructure of the Bank has been much more to NBL. Keeping the mark in head NBL has taken readying subdivisions by the wear 2000-2001. The outgrowth of National Bank Limited in the private sector is an of import event in the banking country of Bangladesh. When the national was in the clasp of terrible recession. Govt. took the presbyopic determination to let in the private sector to resuscitate the economic system of the state.
Several dynamic enterprisers came frontward for set uping a bank with a slogan to regenerate the economic system of the state. National Bank Limited was born as the first 100 per centum Bangladesh owned Bank in the private sector. From the really origin it is the steadfast finding of National Bank Limited to play a critical function in the national economic system. We are determined to convey back the long disregarded gustatory sensation of banking services and spirits. We want to function each one quickly and with a sense of dedication and self-respect. The President of the People’s Republic of Bangladesh Justice Ahsanuddin Chowdhury inaugurated the bank officially on March 28. 1983 but the first subdivision at 48. Dilkusha Commercial Area. Dhaka started working on March 23. 1983. The 2nd Branch was opened on 11th May 1983 at Khatungonj. Chittagong. Today we have entire 103 Branches all over Bangladesh. A representative office was established in Yangon. Myanmar in October. 1996 by our bank and obtained permission from the authorities of Bangladesh to manage boundary line trade with Myanmar. chances is being explored for farther concern avenues at that place.
Now NBL is on line to set up trade and communicating with the premier international banking companies of the universe. As a consequence NBL will be able to construct a strong root in international banking skyline. Bank has been pulling agreement with good familiar money transportation service bureau “Western union” . It has full clip agreement for speedy transportation of money all over the universe. Banking is non merely a net income – oriented commercial establishment but it has a public Ba and societal committedness acknowledging this true NBL is traveling on with its diversified banking activities NBL introduced monthly Savingss Scheme. particular Deposit Scheme. and Consumers. Credit Scheme and nest eggs Insurance strategy etc. To unite the people of lower and in-between income group. A squad of extremely qualified and experiment professional headed by the pull offing Director of the bank who has huge banking experience operates bank and at the top three is an efficient Board of Directors for doing policies.
Vision of National Bank Limited
Establishing as a top class efficient bank through best application of modern information engineering and concern activities. offering high criterion client services and Proper coordination of foreign trade concern in the nucleus of their vision.
Mission of national bank Limited
With a position to accomplishing commercial aim of the bank. their sincere and all out attempts stay put unabated. Respected client and stockholders are attracted to us for our transparence. answerability. societal communities. and high quality of patronage services.
Objective of national Bank Limited
Bring modern banking installations to the doorsills of general public through variegation of services. thereby eliciting salvaging leaning among the people. Foreign a affable. deep rooted and farm banker client relationship by distributing prompt and improved patronages services. Taking portion in the development of the national economic system through productive development of the Bankss resources every bit good as sponsoring different societal activities. Connecting clients to modern banking patterns by the best application of improved information engineering. so that they get encouraged to go on and experience proud of banking with NBL. Reacting to the demand of the clip by take parting in the syndicated big loan funding with like-minded Bankss of the state. thereby spread outing the country of investing Promoting the image of the bank at place and abroad by sustained enlargement of its activities.
Schemes of National Bank Limited
To pull off and run the bank in the most efficient mode to heighten fiscal public presentation and to command cost of fund. To endeavor for client satisfaction through quality control and bringing of timely services. To place client recognition and other banking demands and supervise their perceptual experience towards our public presentation in run intoing those and update demand. To reexamine and update policies processs and patterns to heighten the ability to widen better services to client. To develop and develop all employs and supply them equal resources so that client demands can responsibility addressed. To advance organisational effectivity by openly pass oning company programs. policies. patterns and processs to all employers in a timely manner To cultivate a on the job environment that Fosters positive motive for improved public presentation To diversify portfolio both in the retail and whole sale market. To increase direct contact with client in order O cultivate a closer relationship Business Goal
To sponsor. patron and encouraged games and athleticss. amusement and other socio-economic activities alongside supplying the best services to the client.
The Future push
Full duplex online Banking
Introducing more advanced merchandises and services Opening new subdivisions
Expansion of concern web at place and abroad SMS Banking
Introduction of new liability / Asset merchandises
Employees of NBL portion certain common values. which helps to make a NBL civilization.
The client comes foremost
Search for professional excellence
Openness to new thoughts & A ; new methods to promote creativeness Quick determination devising
Flexibility and prompt response
A sense of professional moralss
Growth and Development of NBL
The NBL carries out all traditional maps. which a commercial bank performs such as mobilisation of the sedimentation. investing of financess. funding export and import concern. trade and commercialism and industry. The banking sector in the state faced different jobs thought the twelvemonth. Even through the board and direction ne’er stopped its attempt to maximise wealth. which is reflected by 143. 97percent net income growing in 2007. highest of all time in the last 15 old ages. The bank earned the 676. 45 nucleus gross in 2007 as involvement. income from investing and committee & A ; exchange earning. which who Tk. 530:69 corer in the proviso twelvemonth. As a consequence the entire operating net income rode to Tk. 221. 51 corer in 2007 from Tk. 114. 68 corer in the old twelvemonth.
Branchs of NBL
NBL. which was started at Dilkusha Branch on March 23rd. 1983. was the first major commercial Bank. In Bangladesh runing throughout the state every bit good as the age of the bank is merely 25 old ages. During this period it has established entire 112 subdivisions over the state and made smooth web inside the state every bit good as thought the universe. The figure of subdivisions every bit good as district wise is mentioned in the tabular array.