foreign exchange operations of janata bank ltd

Internship Report

On

Foreign Exchange Operations of Janata Bank Limited (JBL)

Janata Bank Limited

Internship Report

On

Foreign Exchange Operation of Janata Bank Ltd

(JBL)

Supervised by

Md. Amdadul Hoque

Chairman, Department of Finance

Bangladesh University of Business & Technology (BUBT)

Submitted By

Md. Alimur Razee

09102101039

21st Intake

BBA Program

Major In Finance


Date of Submission: December 19, 2013

DECLARATION

I declare that the report entitled “Foreign Exchange Operation of Janata Bank Limited” embodies

the results of my own effort after completion of 3 (three) months work at Janata Bank Ltd., perused

under the supervisor of Mr. Md. Amdadul Hoque, Assistant professor, Department of Finance,

Bangladesh University of Business & Technology (BUBT).

I also confirm that, this report is only prepared for my academic requirement not for any other

purpose. It has not been previously submitted to any other university/college/organization for an

academic qualification/certificate/diploma or degree.

I further affirm that the work reported in this internship is original and no part has been previously

submitted to any books or in any other universities.

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Md. Alimur Razee

ID: 09102101039

Intake: 21st

Program: BBA

Major in Finance


CERTIFICATE OF SUPERVISOR

This is to certify that Md. Alimur Razee is student of BBA program, ID No: 09102101039, has

successfully completed his “Internship Program” entitled “Foreign Exchange Operation of Janata

Bank Limited” under my supervision as a partial fulfillment of the award of BBA degree.

He has done his job according to my supervision and guidance. He has tried his best to do this

successfully. I think this program will help him in the future to build up his finer career.

I wish his success and prosperity.

Signature

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Mr. Md. Amdadul Hoque

Internship Supervisor

Assistant Professor and Chairman,

Department of Finance

Bangladesh University of Business and Technology (BUBT).

Letter of Transmittal

Md. Amdadul Hoque

Chairman

Department of Finance


SUBJECT: Submission of Internship Report on Foreign Exchange Operation of Janata Bank

Ltd

Dear Sir

With due respect that, I am delighted to submit my Internship report on Foreign Exchange

Operation Of Janata Bank Ltd which is prepared by me. This report gives me a vast experience and

valuable knowledge of how to analyze Foreign Exchange Operation. This report has been giving me

the practical implement of a theoretical knowledge. I had tried my best to collect information on this

report.

Finally, I would like to thank you for your valuable guidance and supportive in preparing this report. I

would be grateful for any clarification when required. I will be highly obliged if you are kind enough

to approve this report and provide your valuable judgment on it.

Sincerely your

_ _ _ _ _ _ _ _ _ _ _ _ _ _

Md. Alimur Razee

ID: 09102101039

21st intake

Major in Finance

i

Acknowledgement

At beginning I will start my report by showing respect and give praise to our almighty Allah who

takes care about me to finished report successfully

I give thanks to our honorable teacher Md. Amdadul Hoque, Chairman, Department of Finance of

Bangladesh University of Business & Technology who gives me such a attractive prospect to make a

report on “Foreign Exchange operation” as well as helped me in every step to accomplish my report

and try to provide me a faire practical knowledge as should as it possible.

I also will not miser to respect JBL that give me chance to obtain practical knowledge through their

internship program. I thank the branch manager Md. Nurul Islam who helps me to do internship in his

branch and provide me a fear idea about practical knowledge of banking activities. I will show

appreciation to Mrs. Shamshad Ara madam and Nusrat madam whose are teaches as well as suggest

me to do work.

Finally, I would like to thank authors of the books that I have take help from, which had made my

understanding clear during the making of the report.

ii

Executive Summary

Main objective of this report is to analyze the performance of foreign exchange operation of Janata

Bank Ltd. This is descriptive in nature that has been administrated by collecting secondary data.

Source of data were collected from annual report of JBL and reading material published by JBL etc.

for analyzing data M.S Office and SPSS STATISTICS software ware used.

This report has been shown that trend of export import and remittance increases year by year but in

2009 and 2012 the growth rate of export and import got lowest due to world recession and inflationary

pressure respectively. Remittance flows are greatly affected in 2010. Operating profit has strong

positive relation with export and import with significant level lower than .05remittance also has strong

positive relation but significant level higher than .05. In total national market share of export, import

and remittance, JBL contribute with the proportion at 14%, 8% and 7% for export, import and

remittance respectively. Huge amount of remittance come from UAE where most of Bangladeshi

expatriate lives and almost 4 overseas branches are situated.

Although export, import, remittance increase gradually and their relationship with profitability has

strong positive relation JBL should concern that their export, import and remittance will not be fall

down that’s why they can develop attractive financing packages such as Pre-Shipment and Post-

Shipment Finance, Export Guarantee facility etc at a law rate for exporters and importers, JBL should

increase strong network with the Overseas Exchange Companies and Banks in different parts of the

world to ensure better remittance services for its customers and online Banking in every branch to

promote Remittance, In case of L/C opening, Bank should provide low margin facility to clients.

More Import and export item can be included JBL can provide Consulting facility by an expert

group of officials for foreign exchange, In case of payment of remittance, they should introduce

debit card so that customer can withdraw money within a second at anywhere.

iii

Table of Contents

Part Particulars Page

no

Executive Summary ii

Part one Introduction 1-4

1.0 Introduction 2

1.1 Origin of the Report 2

1.2 Significance of the Report 2

1.3 Objectives of the report 3

1.3.1 Broad objective 3

1.3.2 Specific Objectives 3

1.4 Methodology of The report 3

1.4.1 Research design 3

1.4.2 Sources of Data Collection 3

1.4.3 Data Collection Procedure 4

1.4.4 Data Analysis and Reporting 4

1.5 Limitations 4

Part Two Organizational Profile 5-11

2.0 An Over View of Janata Bank LTD 6

2.1 Corporate Information 6

2.2Vission of Janata Bank 7

2.3 Mission of Janata Bank 7

2.4 Core Value of Janata Bank 7

2.5 Business Prospect of Janata Bank 7

2.6 Five Year Financial Performance 8

2.7 Hierarchy of Janata Bank 9

2.8 Product of Janata Bank 10

Part Three Theoretical Aspect 12-19

Part Four Foreign Exchange Operation 20-42

4.1 Import 22

4.2 Export 30

43 Remittance 36

iv

Part Five Performance Analysis 42-59

5.1 Trend analysis 43

5.1.1 Import Finance: 43

5.1.2 Export Financing: 44

5.1.3 Foreign Remittance: 45

5.2 Income From Foreign Trade 46

5.2.1. Import Earning 46

5.2.2. Export Earning 47

5.2.3 Remittance Earnings 48

5.2.4. Comparison of Import, Export and Remittance

Earnings

49

5.3. Correlation analysis 50

5.3.1 correlation between Operating profit and Export

50

5.3.2 correlation between Operating profit and Import

51

5.3.3 correlation between Operating profit and

Remittance

52

5.4 Market Share of JBL’s in total National Foreign

Exchange

53

5.4.1 Market Share Export of JBL 53

5.4.2 Market Share of Import of JBL 54

5.4.3 Market Share of Remittance of JBL 55

5.5 Division Wise Contribution 56

5.5.1. Division wise Contribution in Import 56

5.5.2. Division wise Contribution in Export 57

5.5.3. Division wise Contribution in Remittance 58

5.5.4. Country wise Inflow of Foreign Remittance: 59

Part Six Findings, Conclusion & Recommendation 60-63

v

List of Table

Table No. Particulars Page No.

Table: 1 Five year at a glance of JBL 8

Table: 2 Total Import financing of JBL 43

Table: 3 Total Export Financing of JBL 44

Table: 4 Total Foreign Remittance of JBL 45

Table: 5 Import Earning & Portion of Import Income on Total Foreign

Trade

46

Table: 6 Export Earning & Portion of Export Income on Total Foreign

Income

47

Table: 7 Remittance earnings & Portion of it on Foreign Trade 48

Table: 8 comparisons of Import, Export, Remittance earnings 49

Table: 9 Operating profit and Export of JBL 50

Table: 10 Correlations between Export & Profit 50

Table: 11 Operating profit and Import of JBL 51

Table: 12 Correlation between Import & Operating Profit 51

Table: 13 Operating profit and Remittance of JBL 52

Table: 14 Correlation between Remittance & Operating Profit 52

Table: 15 Market Share of Export of JBL 53

Table: 16 Market Share of Import of JBL 54

Table: 17 Market Share of Remittance of JBL 55

Table: 18 Division wise Contribution in Import Financing 56

Table: 19 Division wise Contribution in Export financing 57

Table: 20 Division wise contribution of remittance 58

Table: 21 Division wise contribution of remittance 59

vi

List of Abbreviation

JBL Janata Bank Limited

AD Authorized Diller

TK. Taka

L/C Letter of Credit

SWIFT Society for world-wide Intra-Bank Financial Telecommunication

ERC Export Registration Form

CCI&E Chief Controller of Import & Export

UCP Uniform Customs & Practice

IRC Import Registration Certificate

KSA Kingdom Saudi Arabia

UAE United Arab Emirates

USA United States of America

T.M Travel & Miscellaneous

IMP Form Import Form

EXP Form Export Form

Remt. Remittance

2

1.0 Introduction of The Report

For any business school student only curriculum activity is not enough for handling the real Business

situation, there for it is an opportunity for the students to know about the field of business through the

internship program. This report is prepared on the purpose to better understand about foreign

exchange operation in perspective of janata bank. Now a day’s international business has become very

common activities in business and day by day it got an integrated part for doing business. In this

globalization era a business organization faces worldwide competition so they have to compete for

their existence and profitability that require them to engage in export and import activities and

remittance for their financial transaction worldwide. Banks are the batter financial intermediaries to

complete those activities.

1.1 Originating of the Report

Practical work is the best way to better understand about what is learned in theory, so after finishing

my theoretical study I am sent for an internship program in janata bank and obtain practical

knowledge and try to compare what I read and what I did in my internship program. For evaluating

what I learned from internship program I prepare this report. I have always tried my best to reflect my

experience of practical work in this report.

1.2 significant of the report

This internship report is an important partial requirement of four years BBA graduation program. This

is because knowledge and learning become perfect when it is associated with theory and practice.

That is, student can train and prepare themselves for the job market. A poor country like Bangladesh

has a huge number of unemployed educated graduates. As they have no practical experience been able

to gain normal professional knowledge to establish networking, this is important in getting a job.

While preparing this report, I had a great opportunity to have an in depth knowledge of all the foreign

exchange activities of JBL. Therefore, it is obvious that the significance of internship is clearly

justified as the crucial requirement of four years BBA graduation.

3

1.3 Objective of the report

Objective is an important thing for different purpose. Objective helps to go in a good way that relates

with the Report. Primary objective is to learn the real world experience because I have gathered

theoretical knowledge of BBA program and try to match real world experience with the theoretical

knowledge

1.3.1 Broad Objective

The broad objective of this report is to analyze the Performance Foreign exchange operations of

Janata Bank Ltd. (JBL)

1.3.2 Specific Objectives

Furthermore, the specific objectives of this report are:-

To know the import, export financing procedure through JBL.

To analyze the trend of import and export financing through JBL.

To examine the division wise import and export financing and remittance.

To analyze the earnings from foreign exchange division of JBL.

To show the relationship export, import and foreign remittance with profitability of Janata

Bank Ltd.

Assessment of the JBL’s import, Export, foreign Remittance with total national Import,

Export, foreign Remittance

1.4 Methodology of the Report

1.4.1 Research design:

This report is descriptive in nature which briefly reveals analyze the foreign exchange operation of

Janata Bank Limited. It has been administered by collecting secondary data.

1.4.2. Sources of Data Collection:

Mainly this report based on secondary sources of data. I also used some primary data to make the

report more rich and informative

4

Primary Source:

Take expert opinion from higher officials of the bank.

Observation with during the internship program.

Secondary Sources:

The secondary data sources are following-

Annual Report of JBL(2007-2012)

Website of JBL

Brochures of JBL

Manuals and Publications of JBL

1.4.3 Data collection Procedure:

I have collected Primary data through informal discussion from concerned officer of JBL. Secondary

data has been collected through different manuals, Annual report and other published papers.

1.4.4 Data Analysis and reporting:

For analysis and interpretation of data some statistical tools like MS-Word, MS- Excel and MS-

Power point SPSS statistics software were used.

1.5 Limitation of The Study

Some limitations are faced to prepare this report. The limitations in preparing the report

are described below.

The main barrier of the study was insufficiency of information. Bank employee can’t provide

the information due to security and other corporate obligations.

Due to time limitation many of the aspects could not be discussed in the present report.

Learning all the functions within just 60 days is really tough.

In many cases, up to date information was not published.

Lack of experiences has acted as constraints in the way of meticulous exploration on the

topic

However, omitting the limitations, the report will help to understand the Foreign Exchange Operation

of the Bank.

6

2.0 An overview of Janata Bank Limited (JBL)

Janata Bank Limited is the leading sector bank in Bangladesh offering full range of Personal,

Corporate, International Trade, Foreign Exchange and Lease Finance. Janata Bank Limited is the

preferred choice in banking for friendly and personalized services, cutting edge technology, tailored

solutions for business needs, global reach in trade and commerce and high yield on investments,

assuring Excellence in Banking Services.

2.1 Corporate Information:

Name: Janata Bank Limited

Registered Address: Janata Bhaban, 110, Motijhil commercial area

Dhaka-1000, Bangladesh

Legal Status: Public Limited Company

Date of Incorporation as PLC: May 21, 2007

Authorized Capital: Tk. 20,000 million (as on 31.12.12)

Paid up Capital: Tk. 11000 million (as on 31.12.12)

No. of Branches: Almost 884

2.2 Vision of Janata Bank Ltd:

To become the effective largest commercial bank in Bangladesh to support socio-economic

development of the country and to be a leading bank in South Asia.

2.3 Mission of Janata Bank Ltd:

Janata Bank Limited will be an effective commercial bank by maintaining a stable

growth strategy delivering high quality financial products,

providing excellent customer service through an experienced management team and

ensuring good corporate governance in every step of banking network.

7

2.4 Core Values of Janata Bank Limited:

Figure 1: Business Value of JBL

2.5 Business Prospect of the Bank

Maintaining required capital adequacy

Business expansion in capital market

Gradual expansion of branch network

Progressive automation of the branches

Real online banking software will be in function soon

Expansion of ATM and credit card

Core Value

Of JBL

Professionalism

Diversity

Accountability

Integrity

Growth

Dignity

8

2.6 Five Year Comparative Financial and Operational Performance:

(TK in Millions)

Particular 2008 2009 2010 2011 2012

Authorized Capital 8000 20000 20000 20000 20000

Paid up Capital 2595 5000 5000 8125 11000

Deposits 221336 246175 286567 361677 409767

Loans and Advances 144678 166359 225732 257801 305340

Investment 57824 72533 57514 90906 108342

Import 129413 118525 183744 197285 188283

Export 85418 88653 118515 153758 156525

Foreign Remittance 45924 56190 72285 52640 100089

Operating Profit 7003 8578 12037 15722 14534

Revenue 20922 24074 30614 40635 49515.63

Deposit Advance Ratio 65.37% 67.58% 78.77% 71.21% 74.52%

Return on Investment 8.29% 8.24% 4.89% 7.72% 8.04%

Current Ratio 1.00 1.00 1.10 1.06 1.03

Income per Share 83.88 78.02 98.16 60.45 (148.00)

Net Profit 3145 2982 4907 4445 (16280)

No. of Branches 894 851 861 873 884

Source Annual report (2007-2012)

Table1: Five year at a glance of JBL

9

2.7 Hierarchy of Janata Bank Limited:

Fig2: Hierarchy of Janata Bank Limited

Board of Director

Chairman

Directors

Managing Director

Deputy Managing Director

General Managers

Deputy General Managers

Assistant General Managers

Senior Principal Officers

Principal Officers

Senior Officers

Officers / Officers (Cash)

Attorney Assistants

Clerical Staff Members

Non-clerical Staff Members

10

2.8 Product of Janata Bank Ltd:

JBL has a very broad line products under the various business group, from short term to long term

deposits, various types loans and advances, account service, it provides finance for export and import,

finance for working capital, project financing, capital investment, remittance service, trade service,

foreign exchange service, cash management service, Profit & loss sharing and also has other

miscellaneous product and services around the nation.

Deposit Products:

Current Deposit Account

Short Term Account

Saving Bank Deposit Account

Fixed Deposit

Monthly Saving Scheme

Janata Bank Saving Pension Scheme

Janata Bank Deposit Scheme

Education Deposit Scheme

Medical Deposit Scheme

Janata Bank Monthly saving Scheme

Janata bank special deposit scheme

Janata bank shool banking saving karjokorom

Retirement saving scheme

Janata bank ltd retirement saving scheme

Janata bank masik amanat prakalpa

Janata bank double benefit scheme

Credit Product

Term loan

Trade finance

Import finance

Export finance

SME financing

Micro credit

Home loan

Loan for merchant banking

11

E-service

Speedy remittance western Union Money Service

Automated Cleaning

Internet Banking

ATM banking

ATM Operation

Debt Card Operation

Salary Card

Credit Cart (Loan)

13

3. Foreign Trade:

Trade between two or more sovereign country is called foreign trade or international trade. This

involves the exchange of goods and services between the citizens of two nations. When the citizens of

one nation exchange goods and services with the citizens of another nation, it is called foreign trade;

for example, India's trade with USA, Japan, France and Pakistan. Foreign trade is also known as

external trade. Foreign trade transactions are classified under three categories:

Import Trade

Export Trade

Remittance

3.1 Import Trade:

Import trade refers to purchase of goods by one country from another country or inflow of goods and

services from foreign country to home country.

3.2 Importer/Applicant:

An importer is one who wants to import goods from other country. In terms of the Importers

(Registration) Order-1981 no person can import goods into Bangladesh unless he gets IRC with the

Chief Controller of Import and Export (CCI&E). He is also called applicant. The bank opened L/C on

the importer‟s application.

3.3 Export Trade:

Export trade refers to the sale of goods by one country to another country or outflow of goods from

home country to foreign country

3.4 Exporter:

The seller or exporter is the beneficiary of the credit. The letter of credit is opened in his favor and

addressed to him. The beneficiary has the obligation to make export as per the contract and produce

the documents as required by the credit.

3.5 SWIFT:

The Bank has become the member of SWIFT Alliance Access, a multi-branch secure financial

messaging system provided by the Society for Worldwide Inter-bank Financial Telecommunication

[SWIFT], Belgium. With the activation of the SWIFT system the Bank enjoys instant, low-cost,

speedy and reliable connectivity for L/C transaction, fund transfer, message communication and other

worldwide financial activities.

14

3.6 Remittance:

Transfer of funds, usually from a buyer to a distant seller, instrument of transfer such as a check or

draft or funds so transferred.

3.6.1 Types of remittance

Remittances are basically two types:

1) Local Remittance.

2) Foreign Remittance.

1) Local Remittance

Remittance is significant part of the general banking. The bank receives and transfers various types of

bills through the remittance within the country. Obviously the bank charges commission on the basis

of bills amount. The types of local remittance are:

Pay Order (PO)

Demand Draft (DD)

Telegraphic Transfer (TT)

Mail Transfer (MT)

A) Pay Order (PO)

Pay Order is an instrument that contains an order for payment to the payee only in case of local

payment whether on behalf of the bank or its constitution. Unlike check there is possibility of

dishonoring Pay Order.

B) Demand Draft

A method used by individuals to make transfer payments from one bank account to another. Demand

drafts are marketed as a relatively secure method for cashing checks. The major difference between

demand drafts and normal checks is that demand drafts do not require a signature in order to be

cashed.

C) Telephone Transfer

T/T is a method of payment in which funds are transferred via telegraph or cable. Telegraphic

transfers are most common in business conducted in countries.

15

D) Mail Transfer

A mail transfer or MT is like an order by a bank to its correspondent‟s bank but the instructions are

sent by the mail. Therefore it takes longer time to reach its destination and sometime elapses between

the purchaser paying for it and the payee receiving this payment.

2) Foreign Remittance:

Foreign remittance is a transfer of money by a foreign worker to his or her home country. „Foreign

remittance‟ means purchase and sale of freely convertible foreign currencies as admissible under

Exchange Control Regulations of the country.

There are two types of foreign remittances:

A. Foreign Outward Remittance: The sending country, where the wage earner is located. The

sender uses a bank or foreign exchange company to send money to foreign country

B. Foreign Inward Remittance: The receiving country, where the beneficiary resides. The bank

receives the money that has been sent from the sending person in the country in which the money has

been earned.

3.7 Letter of Credit (L/C):

Letter of Credit L/C also known as Documentary Credit is a widely used term to make payment

secure in domestic and international trade. Letter of credit (L/C) is a written commitment to pay, by a

buyer's or importer's bank (called the issuing bank) to the seller's or exporter's bank (called the

accepting bank, negotiating bank, or paying bank).A letter of credit guarantees payment of a specified

sum in a specified currency, provided the seller meets precisely-defined conditions and submits the

prescribed documents within a fixed timeframe.

3.7.1 Types of Letter of Credit

1. Irrevocable Letter of Credit:

It carries a definite undertaking; of the issuing bank to honour the documents drawn strictly in

conformity with the terms and conditions of the credit. It cannot be amended nor cancelled without

the consent of all parties concerned. Any Credit issued will be an irrevocable credit.

http://www.businessdictionary.com/definition/importer.html

http://www.businessdictionary.com/definition/bank.html

http://www.businessdictionary.com/definition/issuing-bank.html

16

2. Revocable Letter of Credit:

This credit can be amended / modified / cancelled any time by the opening bank without the

consent of the beneficiary. Hence, this credit is not a safe credit from the point of view of the

beneficiary. However, in practice, this type of credit is seldom issued. Even though the credit

can be cancelled any time, but the opening bank would be liable to the beneficiary for the

shipments made by him prior to receipt of notice by him about the cancellation of credit by

the issuing bank

3. Confirmed Letter of Credit:

Confirmed Letter of Credit is a special type of L/C in which another bank apart from the issuing bank

has added its guarantee.

4. Back to Back Latter of Credit

The beneficiary of the export credit, who is not the manufacturer of the goods, may approach a bank

to open a letter of credit in favors of the manufacturer who is ready to supply the goods. Such a letter

of credit is opened on the strength of the export letter of credit and hence called back-to-back letter of

credit. Such a documentary credit should be opened on behalf of the good exporters and suppliers.

5. Sight L/C

A letter of credit that is payable once it is presented along with the necessary documents. An

organization offering a sight letter of credit commits itself to paying the agreed amount of funds

provided the provisions of the letter of credit are met

3.8 Parties to Letters of Credit

Applicant

Applicant is the buyer of the goods or services supplied by the seller. Letter of credit is opened by the

issuing bank as per applicant's request. However, applicant does not belong one of the parties to a

letter of credit transaction. This is because of the fact that letters of credit are separate transactions

from the sale or other contract on which they may be based.

17

Beneficiary

Beneficiary is the seller of the goods or the provider of the services in a standard commercial letter of

credit transaction. Letter of credit is opened by the issuing bank in favor of the beneficiary.

Issuing Bank

Issuing Bank is the bank that issues a letter of credit at the request of an applicant or its own behalf.

Issuing bank undertakes to honor a complying presentation of the beneficiary without recourse.

Nominated Bank

Nominated bank is the bank with which the credit is available or any bank in the case of a credit

available with any bank.

Advising Bank

Advising bank is the bank that advises the credit at the request of the issuing bank. An advising bank

that is not a confirming bank advises the credit and any amendmend without any obligation to honor.

Confirming Bank:

Confirming bank is the bank that adds its confirmation to a credit upon the issuing bank's

authorization or request. Confirming bank may or may not add its confirmation to a letter of credit.

This decision is up to confirming bank only.

Reimbursing Bank:

Reimbursing Bank shall mean the bank instructed and/or authorized to provide reimbursement

pursuant to a reimbursement authorization issued by the issuing bank.

3.9 Different Account in L/C Operation

Nostro Account:

Nostro account means “our account with you”. A Nostro account is a foreign currency account of a

bank maintained its foreign correspondents abroad. For example, US Dollar Account of JBL

maintained with Citibank, N.A, New York, USA is a Nostro account of JBL.

Vostro account:

Vostro account means “your account with us”. The account maintained with foreign correspondent in

a bank of a particular country is known as Vostro account. What is the nostro account for a bank in a

18

particular country is a Vostro account for the bank abroad maintaining the account thus the account of

JBL with City Bank N.A, New York is regarded as it‟s Nostro account held with City Bank, while

City Bank N.A, New York regards it as a it‟s Vostro account held for JBL.

Loro Account:

Loro account means “their account with you”. Account maintained by third party is known as Loro

account; suppose JBL is maintaining an account with City Bank N.A, New York and at the same time

IBBL is also maintaining a Nostro account with City Bank N.A, New York. From the point of view of

JBL IBBL‟s account maintained with City Bank N.A New York is the Loro account.

3.9 Some Important Document used in Foreign Trade:

1. Indent

Indent is an order placed by the importers to the exports. It contains the essential information

regarding the goods to be imported i.e. quality, quantity, packing, packaging, mode of payment,

insurance, price of good, etc

2. Pro-forma invoice:

An abridged invoice sent by a seller to a buyer before of a shipment or delivery of goods for the final

confirmation about goods/service. It notes the kind and quantity of goods, their value, and other

important information such as weight and transportation charges.

3. Invoice

A commercial document that is itemized a transaction between a buyer and a seller which is prepared

by seller or exporter. An invoice will usually include the quantity of purchase, quality and price of

goods and/or services, date, parties involved, unique invoice number, and tax information. If goods or

services were purchased on credit, the invoice will usually specify the terms of the deal, and provide

information on the available methods of payment.

4. Bill of Entry:

A declaration by an importer or exporter of the exact nature, precise quantity and value of goods that

have landed or are being shipped out. Prepared by a qualified customs clerk or broker, it is examined

by customs authorities for its accuracy and conformity with the tariff and regulations.

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5. Bill of Lading:

A document issued by a carrier, or its agent, to the shipper as a contract of carriage of goods. It is also

a receipt for cargo accepted for transportation, and must be presented for taking delivery at the

destination.

Among other items of information, a bill of lading contains:

(1) Consignor's and consignee's name

(2) Names of the ports of departure and destination

(3) Name of the vessel

(4) Dates of departure and arrival

(5) Itemized list of goods being transported with number of packages and kind of packaging

(6) Marks and numbers on the packages

(7) Weight and/or volume of the cargo

(8) Freight rate and amount.

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4.0 Foreign Exchange:

As per foreign exchange regulation act 1947 (Article 2nd

) Foreign Exchange means Foreign Currency

i.e. currencies other than Local Currency. It includes any instrument drawn, accepted, made or issued

all deposits, credits and balances payable in any foreign currency and any draft, traveler’s cheque,

letter of credit and bill of exchange expressed or drawn in Bangladesh currency but payable in any

foreign currency.

Many transactions with overseas countries are respects of import; export and foreign remittance come

under the preview of foreign exchange transactions. International trade demands a flow of goods from

seller to buyer and payment from buyer to seller. In this case the bank plays a vital role to bridge

between the buyer and seller.

In JBL AD Branch (s) there are a lot of talented officials are working continuously with great effort,

skill and teamwork are performed in this department. The Bangladesh Bank and the respected in

charge (s) of this section control them.

In exercise of the power conferred by section 3 of the Foreign Exchange Regulation Act, 1947

Bangladesh Bank issues license to schedule Bank to deal with exchange. These banks are known as

Authorized Dealers. Licenses are also issued by Bangladesh Bank to person or firms to exchange

foreign currency instruments such as T.C. Currency notes and coins. They are known as Authorized

Money changers.

4.0.2 Foreign Exchange Department:

There are three kinds of foreign exchange transaction

1. Import

2. Export &

3. Remittance.

The Importer

(Buyer of Goods)

The Bank

(Third

Party)

The Exporter

(Seller of Goods)

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4.1 Import

Import trade in Bangladesh is controlled under the Import and Export control Act 1950. Authorized

Dealer Banks will import the goods into Bangladesh following the import policy, public notice, F.E.

circular and other instructions from competent authorities from time to time. The whole import

functions of the branch as far I have understood are discussed below:

4.1.1 Registration of importer

In terms of the Importers, Exporters and Indenters (Registration) Order 1981, no person can import

goods into Bangladesh unless he is registered with the Chief Controller of Import and Export or

exempted from the provisions of the said order. So the following documents are required to be

submitted to the licensing authority for registration as importers:

Questionnaire form duly filled in and signed

Income tax registration certificate

Trade License from the Municipal or Local Authority

Bank certificate

Nationality certificate

Partnership Deed where applicable

Certificate of Registration with the Registrar of Joint Stock Companies,

Certificate from the Chamber of Commerce/Registered Trade Association

Ownership documents or rent receipts of the place of business

Any other documents required under the relevant import policy.

23

4.1.2 Import procedure:

To import through Janata Bank Ltd a customer requires:

Figure: 3 The Import process

4.1.3 Import Policy Order:

Under the import policy and export control act, 1950, the government of Bangladesh formulates the

import policy through Ministry of Commerce. As per the import policy goods and commodities are

divided into four groups

List of items banned for import

List of items import of which is subject to certain condition

Foot Note: This list contains further conditions with regard to import of items on banned list

and conditional list

Freely importable item: All items excepting those mentioned in the banned list and

conditional list are freely importable.

4.1.4 Steps in an Import Letter of Credit Transaction

STEP 1: The Sales Contract

The sales contract is the formal agreement between the buyer and seller specifying the terms of sale

that both parties have agreed upon. The contract should include: a description of the goods; the

amount; the unit price; the terms of delivery; the time allowed for shipment and presentation of

documents; the currency; and the method of payment.

Performa Invoice is received by the L/C

applicant

L/C applicant submit it to the

Bank

Bank Issue L/C to the applicant

favoring beneficiary

L/C advised by advising Bank

Goods shipped by Beneficiary &

submit the documents to negotiate bank

Negotiate bank forward the

documents to the L/C issuing bank.

Documents checked by L/C issuing bank & inform it to L/C

applicant

If documents are ok, then L/C value

is paid by L/C issuing bank to negotiate bank

Goods release from the customs

Submission of Bill of Entry to L/C

issuing Bank by the applicant

Report to Bangladesh Bank

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2 Application & Agreement:

11 IImmppoorrtt LL//CC ((LLeetttteerr ooff CCrreeddiitt))::

A letter of credit is a conditional Bank undertaking of payment. In other words letters of credit is a

letter from the importer Bankers to the exporter that the bills if drawn as per terms & conditions

complied with will be honored on presentation. As per UCPDC 500 a credit may be either:

i) Revocable.

ii) Irrevocable.

The Credit, therefore, should clearly indicate whether it is revocable or irrevocable. In the absence or

such indication the credit shall be deemed to be irrevocable.

22 PPaarrttiieess ooff DDooccuummeennttaarryy CCrreeddiitt ((LLCC))::

FFiigguurree:: PPaarrttiieess ooff DDooccuummeennttaarryy CCrreeddiitt

3 Types of L/C:

Commercial Letters of Credit

Commercial letters of credit are mainly used as a primary payment tool in international trade such as

exporting and importing transactions. Majority of commercial letters of credit are issued subject to the

latest version of UCP (Uniform Customs and Practice for Documentary Credits). The ICC publishes

UCP, which are the set of rules that governs the commercial letters of credit procedures.

Standby Letters of Credit

Commercial letters of credit are a means of payment to be utilized when the principal perform its

duties. As an example, let us consider an exporter who ships the goods according to the sales contract

and apply to the nominated bank for the payment. If the nominated bank decides that the presentation

is conforming to the terms and conditions of the credit and the UCP rules then exporter will be paid.

11.. AApppplliiccaanntt// BBuuyyeerr//IImmppoorrtteerr

22.. IIssssuuiinngg//OOppeenniinngg BBaannkk

33.. AAddvviissiinngg BBaannkk

44.. BBeenneeffiicciiaarryy//sseelllleerr//EExxppoorrtteerr

55.. NNeeggoottiiaattiinngg BBaannkk

66.. CCoonnffiirrmmiinngg BBaannkk

77.. RReeiimmbbuurrssiinngg//PPaayyiinngg BBaannkk

25

This situation is just contrary in standby letters of credit. A payment is made to the beneficiary of a

standby letter of credit when there is a breach of the principal's obligation.

Revocable Letters of Credit

Revocable letters of credit give issuer the amendment or cancellation right of the credit any time

without prior notice to the beneficiary. Since revocable letters of credit do not provide any protection

to the beneficiary, they are not used frequently. In addition, UCP 600 has no reference to revocable

letters of credit. All credits issued subject to UCP 600 are irrevocable unless otherwise agreed

between the parties.

Irrevocable Letters of Credit

Irrevocable Letters of Credit cannot be amended or cancelled without the agreement of the credit

parties. Unconfirmed irrevocable letters of credit cannot be modified without the written consent of

both the issuing bank and the beneficiary. Confirmed irrevocable letters of credit need also confirming

bank's written consent in order any modification or cancellation to be effective.

Local or Back to Back L/C:

Back -to -back L/C means one credit backs another. It is new credit in favor of another beneficiary.

Sometimes beneficiary seller of a credit himself is unable to supply goods specified in the L/C and

required to purchase from another supplier by opening second credit. Besides, the formalities and

requirements for (L/C opening) the following formalities and documents are also required for opening

back-to-back L/C.

For opening L/C the client is to submit to the bank an application in the printed format of the

designated bank. This is called L/C application form which is also an agreement between the importer

and the bank. The form is to be stamped under stamp Act. in force in Bangladesh. The importer must

submit the LCA & IMP and indent or contract. Purchase order/pro-forma invoice (duly accepted by

the importer) along with L/C application.

Application for opening of L/C duly signed by the importer, Membership certificate from Chamber of

commerce or any other recognized business association, Valid IRC,TIN certificate, Three copies of

declaration stating that that income tax for previous year has been paid or income tax return has been

submitted, Trade license ,Vat registration certificate, Valid indent/pro forma invoice, Insurance cover

note with money receipt, Any other permit if required as per instruction issued by CCI & E time to

time under present IPO.

26

The L/C application must be completed/ filled in and signed by the authorize person of the

importer giving the following particulars:

Full name and address of the supplier of beneficiary and importer, brief description of the goods, L/C

value for US$, etc. (CFR value) which must not exceed the LCA value, the unit price, quantity quality

of the goods, Origin of the goods, port of loading and port of destination must be mentioned, Model of

shipment (Sea, Air, Truck or Rail etc.),List date of shipment and negotiation time (must not be

beyond 30 days from the shipment date),Insurance cover note number and name or the company,

Tenor of draft (1.e, sight/ issuance/ deferred etc, Mode of advising L/C (i.e. airmail/ full telex short

cable etc.),Opening of L/C under UCPDC publication No. 500/- ICC revision 1993, Whether

shipment/ transshipment is allowed, Instruction to add confirmation if required, LCA Number, Any

other relevant information and instruction if any must be mentioned in the L/C application form. A

written application from opener is verified a relevant license/ LCA/ permit of the loan/ Barter must

remain valid up to that period the extension is sought. Increase of L/C amount may be done provided

the LCA covers the increase in amount. L/C amount can be decreased provided the relevant Indent is

amending accordingly and with the consent of beneficiary. Each of clauses of the L/C can be amended

provided the parties involve the L/C consent to it procedure or preparation and dispatch. Amendment

is to be typed in the Banks printed format. The copies of the amendment must be dispatched to all

concerned as done in dispatching the L/C. Amendment be kept in the L/C file chronologically date

wise.

Step 3: L/C contains mainly the following instruction:

Issuing bank name and address, LC number, Date and place of Issue, Advising bank name and

address, Beneficiary’s name and address, LC amount, Tenor and availability of credit, Last date of

shipment, Number of days allowed for negotiation, Date of expiry and place of presentation,

Description of goods, Port of shipment and port of delivery, Mode of transportation, Instruction for

negotiation bank, Reference of UCPDC, Signature of the authorized office of issuing bank

Step 4: Preparation of L/C Proposal:

After checking all documents and other relative facts if the desk official gets satisfaction in all

respects he will prepare the LC proposal in pre-audit memo and place the same to higher authority for

approval.

27

Step5: Transmission of LC:

Then transmission of L/C is done through tasted telex, fax or SWIFT to advice the L/C to the advising

bank. The advising banks verify the authority of the L/C. JBL has corresponding relationship or

arrangement throughout the world by which the L/C is advised. Actually the advising bank does not

take any liability if otherwise not requested.

Figure: Types of L/C form

Step6: Advising:

The advising bank forwards the letter of Credit to the beneficiary (seller) stating that no commitment

is conveyed on its part. However, if the advising bank has been asked to confirm the letter of Credit

and agrees to do so, it will incorporate a clause undertaking to honor the beneficiary’s drafts, provided

the documents evidence that all terms and conditions of the letter of Credit have been complied with.

Step 7: Adding Confirmation

The confirming bank does the confirmation. Confirming bank is a bank, which adds its confirmation

to the credit and it is done at the request of the issuing bank. The confirming bank, May or May not

advising usually, does not do it if there is not a prior arrangement with the issuing bank. By being

involved as a confirming agent, the advising bank undertakes to negotiate beneficiary’s bill without

recourse to him.

Before confirming, it has to observe followings-

L/C is issued and there is a request to add confirmation

Review the L/C terms

Provide reimbursement

Drafts to be drawn on L/C opening bank

Availability of credit facilities

Line allocation from the business and ownership units in the importer’s country

Confirm and advise L/C

Form of L/C

Mail L/C the L/C which is mailed by Beneficiary

SWIFT L/C the L/C which is automatically sent to

Beneficiary

28

Step8: Amendments of letter of credit

After issuance and advising of a L/C, it may be felt necessary to delete, add or alter some of the

clauses of the clauses of the credit. All these modification are communicated to the beneficiary

through the same advising bank of the credit. All these modifications are communicated to the

beneficiary through the same advising bank of the credit. Such modifications to a credit are termed as

amendment to a letter of credit. There may be some of the conditions in a credit are not acceptable by

the beneficiary. In that case, beneficiary contact applicant and request for amendment of the clauses.

The issuing bank has to be done the followings –

Obtain written application from the applicant of the credit duly singed and

verified by bank.

Confirm that, in case of increase of value, application for amendment is to be

supported by revised indent/pro-forma invoice evidencing consent of the

beneficiary;

Ensure, in case of extension of shipment period, that relative LCA is valid/

revalidated/ increased up to the period of proposed extension.

Confirm that amendment of insurance cover note also be submitted in case of

both credit amount and shipment period extension amendment.

Maintain proper recoding and filing of amendments;

Recover charges for amendment (if on account of applicant) and pass necessary

voucher.

The following clause of L/C and increase/decrease of quality of goods-

Increase/ decrease value of L/C and Increase/decrease of quality of goods.

Extension of shipment/negotiated period.

Terms of delivery, i.e. FOB, CFR, CIF etc.

Mode of shipment

Inspection clause

Name and address of the supplier

Name of the reimbursing

Name of shipping etc

Step9: Presentation of Document.

The seller is being satisfied with the term and condition of the credit make shipment of the goods as

per L/C. After making the shipment of the goods in favor of the importer to exporter submits the

documents to the negotiating bank

29

After receiving all document, the negotiating bank then check the documents against the credit. If the

documents are found in order, the bank will pay, accept, or negotiate to JBL. Branch and bank receive

seal to be affixed on the forwarding schedule. The bill of exchange and transport documents must

immediately be crossed to protect loss or fraudulent JBL checks the document the usual document are

Invoice

Bill of lading

Non-negotiable copy of bill of lading

Certificate of origin

Packing list

Shipping Advice

Beneficiary certificate

Bill of Exchange

Pre-shipment inspection report

Shipment certificate.

Step 10: Settlement of letter of credit

Settlement means fulfillment of issuing bank in regard to affecting payment subject to satisfying the

credit terms. Settlement may be done under three separate arrangements as stipulated I the credit.

Step 11: Settlement by payment:

Here the seller presents the documents to the nominated bank and the bank scrutinizes the documents.

If satisfied, the nominated bank makes payment to the beneficiary and in case, this bank is other than

the issuing bank, it sends the documents to the issuing bank and claim reimbursement as par

arrangement.

Step12: Settlement by Acceptance:

Settlement in this arrangement, the seller submits the documents evidencing the shipment to the

accepting bank (nominated by the issuing bank for acceptance) accompanied by draft down on the

bank at the specified tenor.

Step 13: Settlement by negotiation:

This settlement procedure stars with the submission of documents by the seller to the negotiation

restricted by the issuing bank, only nominated bank can negotiate the documents. A factor

scrutinizing that the documents meet the credit requirement, the bank may negotiate the documents

and give value to the beneficiary. The negotiating bank then sends the documents to the issuing bank.

As usual, reimbursement will be obtained in the pre agreed manner.

30

4.2 Export

Mainly Export L/C is the confirming from the Bank that, if the importer fails to make payment to the

exporter, then the bank will pay the exporter on behalf of the importer. The exporter can lien the L/C

to bank and can get the payment before the L/C expire date.

4.2.1 Export L/C:

L/C which is received to export/sale of goods from one country to another country or one place to

another place within a country) is known as export L/C. it may be received from any bank of foreign

country, local bank, another branch of the same local bank or received by the export desk from the

import desk of the same bank. Exporters are allowed to export the commodity under irrevocable letter

of credit. Under this type of export, exporter will ship the goods as pr terms of the credit and will get

payment as per arrangement of the credit.

Figure: 4 Export L/C process

4.2.2 Obtaining Export Registration Certificate (ERC):

No exporter is allowed to export any commodity for export from Bangladesh unless he is registered

with Chief Controller of Imports and Exports (CCI & E) and holds valid Export Registration

Certificate (ERC). After applying to the CCI&E in the prescribed from along with the necessary

papers, concerned offices of the Chief Controller of Imports and Exports issues ERC. Once registered,

exporters are to make renewal of ERC every year.

L/c comes from the exporter

Check the relevant document

Check the credit worthiness of

importer

Advice the L/C

Forwarding the L/C & add it to FDBP register

Take the charge & Give the L/C value to

the exporter

Payment comes from the Importer to the

bank

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4.2.3 Securing Export Order

After getting the ERC the exporter may proceed to secure the export order. He can do this by

contacting the buyers directly or through agent. In this purpose exporter can get help from Liaison

office, Buyer’s local agent, Export promotion, Organization, Bangladesh mission abroad, Chamber of

commerce (local and foreign), Trade fair etc.

4.2.4 Obtaining EXP Form:

After having the registration, the exporter applies to Janata Bank Limited with the trade license, ERC

and the Certificate from the concerned Government Organization to get EXP. If the bank is satisfied,

an EXP is issued to the exporter.

4.2.5 Signing of the contract:

After communicating with buyer the exporter has to get contracted for exporting exportable items

from Bangladesh detailing commodity, quantity, price, shipment, insurance and mark, inspection,

arbitration etc.

4.2.6 Receiving Letter of Credit

After making contact with foreign buyers and reaching on agreed price and terms, conditions the

exporters receive Letter of Credit.

4.2.7 Procuring the materials:

After making the deal and on having the L/C opened in his favor, the next step for the exporter is to

set about the task of procuring or manufacturing the contracted merchandise.

4.2.8 Endorsement on EXP:

Before the exporter with the customs or postal authorities lodges the export forms, they should get all

the copies endorsed by Janata Bank Limited. Before shipment, exporter submits EXP. form with

commercial invoice. Then Janata Bank’s respective officers check it properly, if satisfied, certifie the

EXP. Without EXP exporter cannot make shipment. The customer must declare all export goods on

the EXP issued by the authorized dealers

4.2.9 Disposal of Export procedure

Original: Customs authority reports first copy of EXP to Bangladesh Bank after shipment of

the goods.

Duplicate: Negotiating bank reports the Duplicate to Bangladesh Bank in or after negotiation date but

not later than 14 days from the date of shipment.

32

Triplicate: On realization of export proceeds the same bank to the same authority reports Triplicate.

Quadruplicate: Finally, the negotiating bank as their office copy retains Quadruplicate.

4.2.10 Shipment of goods:

Exporter makes shipment according to the terms and condition of L/C. While shipment and after

shipment the exporter should obtain or prepare the following documents:

EXP Form

Photocopy of registration certificate

Photocopy of the contract

Photocopy of the L/C

Customs copy of ERF Form for shipment of jute goods and EPC Form for raw jute

Freight certificate from the bank in case of payment of the freight at the port of lading is

involved

Bill of Lading, Railway receipt, Postal receipt, Air way bill or Truck receipt

Packing list


Shipping instructions

Insurance policy.

4.2.11 Presentation of export documents for negotiation:

After shipment, exporter submits the following documents to Janata bank Limited for negotiation.

Bill of Exchange or Draft

Bill of Lading

Invoice

Insurance Policy/Certificate


Inspection Certificate

Consular Invoice

Packing List

Quality Control Certificate

G.S.P. certificate

Photo

33

4.2.12 Examination of Document:

Banks deal with documents only, not with commodity. As the negotiating bank is giving the

value before repatriation of the export proceeds it is advisable to scrutinize and examine each

and every document with great care whether any discrepancy(s) is observed in the documents.

The bankers are to ascertain that the documents are strictly as per the terms of L/C Before negotiation

of the export bill. Bank officers assigned for examining the export documents may use a checklist for

their convenience.

4.2.13 Negotiation of export documents:

Negotiation stands for payment of value to the exporter against the documents stipulated in the L\C.

If documents are in order, Janata Bank Limited purchases (negotiates) the same on the basis of

banker- customer relationship. This is known as Foreign Documentary Bill Purchase (FDBP).If the

bank is not satisfied with the documents submitted to Janata Bank Limited and gives the exporter

reasonable time to remove the discrepancies or sends the documents to L/C opening bank for

collection. This is known as Foreign Documentary Bill for Collection (FDBC).

4.2.14 Settlement of Local Bills:

The settlement of local bills is done in the following ways, -

The customer submits the L/C to Janata Bank Limited along with the documents to negotiate

Janata Bank Limited officials scrutinize the documents to ensure the conformity with the

terms and conditions.

The documents are then forwarded to the L/C opening bank.

The L/C issuing banks gives the acceptance and forwards an acceptance letter.

Payment is given to the customer on either by collection basis or by purchasing the document.

34

4.2.15 Modes of Payment

The most common methods of payment under a L/C are as follows:

Figure: Modes of Payment

Sight or Payment credit

When the credit stipulates that drafts (bill of exchange) should be drawn under it on DP terms

involving payment to the beneficiary on presentation of documents, it is known as a “Sight or

Payment Credit”. In this credit the issuing bank nominates a bank in the exporter’s country as the

paying bank. If the paying bank accepts its nomination, its position is that of an agent of the issuing

bank. When the documents under the credit are presenter to it, it pays the beneficiary provided all the

terms and conditions of credit have been complied with. It gets reimbursement from the issuing bank

for the amount paid.

Deferred Payment Credit

The term “Deferred” means postponed to a future period or date. When a credit does not require the

payment to the beneficiary immediately on presentation of the documents but after a specified period

has elapsed, it is known as “Deferred Payment Credit”. According to this type of credit, the payment

is hot made in full on the tender of documents but by installments at pre-determined future dates.

Payment methods

under L/C

Sight or Payment credit Deferred Payment Credit

Acceptance Credit Negotiation Credit

35

Deferred payment credit may be used where the beneficiary wishes to allow the importer time to pay

for the document.

Acceptance Credit

When under the terms of a letter of credit drafts are drawn on DA terms involving payment to the

beneficiary on the maturity of the accepted Bill of Exchange drawn under it, the letter or credit is

referred to as an “Acceptance Credit” or a “Term Credit”. In this form of credit the beneficiary draws

a draft for particular usance (e.g. 30, 60, 90 days sight or even longer), payable upon either the

correspondent bank or the issuing bank.

Negotiation Credit

In a negotiation credit the documents are accompanied by a sight draft (bill of exchange). The bill of

exchange may be drawn on the issuing bank or the importer or any other bank stipulated in the credit.

The bank, which negotiates documents under the credit, purchases the bill of exchange and pays the

amount to the beneficiary who tenders the documents. The issuing bank reimburses the negotiating

bank

36

4.3 Remittance

Remittance means sending or transfer money or money-worth from one place to another The word

Remittance originates from the word remit which means to transmit money/ fund. In banking

terminology, the work remittance means transfer of fund one place to another. When money

transferred from one country to another is called Foreign Remittance.

Foreign remittance of JBL may be classified into:

Inward Foreign Remittance

Outward Foreign Remittance

Figure: Types of Remittance of JBL

4.3.1 Instruments of Foreign Remittance

Cash: Dollar, Pound, France Fr. Riyal or any other currency.

T.C.: Travelers Cheque.

F.D.D: Foreign Demand Draft.

F.T.T: Foreign telephonic Transfer

T.T: Telegraphic Transfer, Cable transfer or swift transfer.

M.T: Mail Transfer.

I.M.O: International Money Order.

Cheque: By any person & institution.

P.O: Payment Order

D.D: Demand Draft

O.B.C: Outward Bill Collection

I.B.C: Inward Bill Collection

Remittance

Inward Remittance

Outward Remittance

37

4.3.2 Inward Remittance:

Inward Foreign Remittance Means Remittance received from foreign countries from abroad. In other

words remittance coming into our country from other countries by the remitter by way of permissible

banking channel through freely convertible Foreign Currencies is called Inward Foreign Remittance

i.e. payless point of view it is inward foreign remittance. On the other hand remitter’s point of view it

is called outward Foreign Remittance.

Two forms as prescribed by Bangladesh Bank are used for purchase of Foreign Currencies such as-

EXP Form: Remittances received against exports of goods from Bangladesh are done

by form EXP.

Form C: Inward remittances equivalent to US$2000/- and above are done by Form”

C”. However, declaration in Form C is not required in case of remittances by

Bangladesh Nationals working abroad.

Utmost care should be taken while purchasing Currency Notes, Travelers cheque, Demand Draft &

similar Instrument for protecting the bank from probable loss as well as safety of the Bank officials

concerned.

4.3.3 Mode of Inward Remittance of JBL:

T.T. = Telegraphic transfer

D.D. = Demand Draft

I.M.O. = International Money Order

M.T. = Mail Transfer

T.C. = Travelers Cheque

4.3.4 Outward Remittance:

The remittance when we sent to abroad is called outward remittance. The term “Outward remittances”

include not only remittance i.e. sale of foreign currency by TT. MT, Drafts, Traveler’s cheque but also

includes payment against imports into Bangladesh & Local currency credited to Non-resident Taka

Accounts of Foreign Banks or Convertible Taka Account.

Two forms are used for Outward Remittance of foreign Currency such as -

IMP Form: All outward remittance on account of Imports is done by form IMP.

T.M. Form: For all other outward remittances form T.M. is used.

4.3.5 Mode of Outward Remittance:

Outward remittance may be made by T.T, D.D, M.T, T.C etc payment of import bills are also

included as outward remittance.

38

4.3.6 Remittance Chain:

4.3.6.1 Step-1 (Remittance Sending Process):

Remittance rush to the bank/exchange house nearest to their residence /work place.

Fill in the application form (in the case first time remittance)/submit membership card.

Go to tellers, deposit form and currency.

FDD:

Teller make FDD

Hand over to the remittance for sending the same to the beneficiary

Send to beneficiary’s bank branch through courier.

FTT:

Teller prepare FTT massages

Send soft copy to their processing unit at head office.

Deliver one copy of the massage to the remitter for remittance.

Processing and Sending:

Processing unit at head office compiles messages

Sends to the drawee banks.

4.3.6.2 Step-2 (Remittance Receiving Process):

FDDs:

Drawee branch receive FDDs from beneficiary or through courier.

Make payment of FDDs drawn on the branch

Send FDDS for collection that are drawn on their banks/branches.

Credit proceeds of FDDs upon collection.

Send IBDAs to head office.

FTTS:

Processing unit at head office processes FTT massages

Sends T.Ts to the branches.

Branches make payment of own remittances.

Issue and send payment order to the branches of other banks beneficiaries.

Spot Cash payment:

Branches receive secret number from the beneficiary

Download remittance masseges from web application of concerned institution.

Get an application form filled in by the beneficiary.

Ensure identity of the beneficiary.

Make cash payment to the beneficiary.

39

Send IBDAs to head office.

4.3.7 Remittance Product/Service of JBL:

Foreign Remittance

Foreign remittance section of Janata Bank Ltd. is an integral part of Foreign Exchange Department.

And this section of Foreign Exchange Department deals with

Inward foreign remittance

Outward foreign remittance

Opening Foreign Currency Accounts.

Governing Wage Earner’s Bond.

Opening Student File etc.

Medical Purpose

Ravels Purpose

Inward Foreign Remittance:

Normally, Inward Foreign Remittance comprises all incoming foreign currencies. Remittances issued

by the correspondent banks situated in the foreign countries and thereby drawn on Janata Bank, are

considered to be its Inward Foreign Remittances. Followings are the Inward Foreign Remittances,

FDD Payable

FTT Payable

TC Payable

Purchase of foreign currencies.

Outward foreign Remittances:

Remittances issued by Janata Bank to their foreign correspondents to fulfill their customers’ needs are

considered to be the Outward Foreign Remittances. It comprises the followings:

FDD Issued

FTT Issued

TC Issued

Endorsement of foreign currencies in the passport.

Sale of foreign currencies.

40

Foreign Demand Draft (FDD) Issued:

People used to send money abroad for various purposes. JBL issues most of the FDD for the purpose

of payment of the application fees to the foreign universities. For the issuance of FDD; T/M Form

has to be filled up duly. This form is filled up under the Foreign Exchange Regulation Act, 1947. This

form contains

The purpose of travel,

Name of the country where the applicant will go,

Name of the air or shipping company,

Passport number,

Signature, name & address of the applicant

Traveler’s Cheque (TC) Issued:

JBL issues only American Express Traveler’s Cheque (TC). For TC, customer has to fill up T/M

form. He has to fill up the purchase form also. For TC, JBL charges commission.

Procedure for issuing TC

There are some requirements that are to be fulfilled by the Traveler’s Cheque purchaser. The

requirements are:

1. The client must be an account holder or proper reference from the bank is required

2. The passport must be a valid one

3. Air ticket has to be confirmed

4. Passport holder must be present physically

Steps involved in issuing of TC:

1. After verifying all these documents the customer is asked to fill up prescribed application

form.

2. In the application the customer states the amount he is willing to endorse and it is to be

verified that his required amount is within the stipulated.

3. Then the customer pays cash or by debiting his account the Traveler’s Cheque is issued.

4. Endorsement is given on the passport and on the ticket. Customer fills up the T/M Form.

5. Purchased application form has to be filled up by the purchaser.

6. Entry has to be given in the Foreign Currency Register and in the Traveler’s Cheque Register.

41

Following Documents must be retained form the clients:

Photocopy of passport

T/M form (Travel & Miscellaneous)

Others Copy of government order (in case of government employee)

Copy of invitation letter if issuance is against conference/training quota

Endorsement of Cash:

Cash foreign currency can also be remitted through the cash endorsement in the passport. In case of

endorsing cash in the passport, the requirements are similar to those of Traveler’s Cheque. But

according to the foreign exchange Regulation Act, 1947 an individual cannot take more than

$1500.00 in cash in a year. That’s why; the concerned officer checks the last voyage of the purchaser.

If he/she made any voyage and if he/she purchased dollar at that time, then the officer will deduct the

amount and will give the rest to the purchaser.

JBL cannot endorse more than $1500.00 as cash at a time. For more than $1500.00, the customer has

to purchase TC. For cash endorsement SEBL maintains a separate register. For giving cash foreign

currency, JBL charges Tk. 200.00 as service charge per passport.

Foreign TT Payable:

Foreign remittance section also pays the claim of the foreign TT. After receiving TT payable, SEBL

performs the following functions:

1. Customer has to fill up a “C Form” if the amount exceeds $2000.00. “C Form” describes the

purpose of sending the TT.

2. The dollar amount comes to the Head office of JBL through American Express, New York.

3. JBL, branch sells the dollar to Head Office and collects the money in local currency.

Student File Opening:

Student can endorse $200.00 at a time in his own name. But if the amount exceeds $200.00, then the

student has to open a student file. For opening a student file, the following documents are required:

Preliminary application and information for admission.

Letter of approval by the university of the student.

A filled-in application form for foreign currency in abroad.

Transcript of Records” given for the last degree by the university.

Certificate given by the Board for S.S.C. / H.S.C. or equivalent examination.

A photocopy of I-20 form

43

5.0 Trend analysis

5.1.1 Import Finance:

Year 2008 2009 2010 2011 2012

Import Finance

(In Million Tk)

129413 118525

183744

197285

188284

Growth (%) 54%

-8%

55%

7%

-5%

Source: Annual Report of JBL (2008-2012)

Table2: Total Import financing of JBL

Graphical Presentation:

Figure 5: Total Imports Financing of JBL

Figure 6: Imports Financing Growth Rate of JBL

Interpretation: From the trend analysis it has seen that the amount of import financing though JBL

has increased over the years except in2009 and 2012. The import financing negative growth in 2009

and 2012

2008 2009 2010 2011 2012

Import Financing 129413 118525 183744 197285 188284

129413 118525

183744 197285 188284

0

50000

100000

150000

200000

250000

Import Financing (In Million)

Import Financing

2008 2009 2010 2011 2012

Import Growth 54% -8% 55% 7% -5%

54%

-8%

55%

7%-5%

-20%0%

20%40%60%

Import Growth (%)

Import Growth

44

5.1.2 Export Financing:

Year 2008 2009 2010 2011 2012

Export Business

(In Million TK)

85418

88653

118515

153758

156525

Growth (%) 19%

4%

34%

30%

2%

Source: Annual Report of JBL

Table 3: Total Export Financing of JBL

Graphical Presentation

Figure 7: Total Exports Financing of JBL

Figure: 8 Exports Financing Growth Rate of JBL

Interpretation: From the trend analysis it has seen that there is an increasing trend in amount of

export financing of JBL over the years of analysis. The export financing has increased from TK

85418 (million) in 2008 to Tk 156525 (million) in 2012.But the export financing growth rate was

fluctuating over the year.

2008 2009 2010 2011 2012

Export Financing 85418 88653 118515 153758 156525

85418 88653

118515

153758 156525

0

50000

100000

150000

200000

Export Financing (In Million)

Export Financing

2008 2009 2010 2011 2012

Export Growth 19% 4% 34% 30% 2%

19%

4%

34%30%

2%

0%

10%

20%

30%

40%

Export Growth (%)

Export Growth

45

5.1.3 Foreign Remittance:

Year 2008 2009 2010 2011 2012

Remittance(In

Million TK)

45924

56190

52640

72285

100089

Growth (%) 25%

22%

-6%

37%

38%


Table: 4 Total Foreign Remittance of JBL


Figure: 9 Foreign Remittance Performance of IBBL

Figure: 10 Foreign Remittance Business Growth Rate

Interpretation: From the trend analysis it has seen that the Foreign Remittance of JBL was

increasing year to year. Highest Remittance was found during the year in 2012that was Tk 100089

million which was higher than previous years. The foreign remittance growth rate was high in 2012.

2008 2009 2010 2011 2012

Remittance 45924 56190 52640 72285 100089

45924 56190 5264072285

100089

0

50000

100000

150000

Remittance (IN Million)

Remittance

2008 2009 2010 2011 2012

Remittance Growth 25% 22% -6% 37% 38%

25% 22%

-6%

37% 38%

-20%

0%

20%

40%

60%

Remittance Growth (%)

Remittance Growth

46

5.2 Income From Foreign Trade

5.2.1. Import Earning and Portion of Import earnings on Total Foreign Trade

Earnings:

Year 2008 2009 2010 2011 2012

Total Earnings From

Foreign Trade

2852.9

3417.69

4035.1

5149.21

5835.13

Import Earning

(In million TK)

1235.47

1590.6

1995.77

2287.35

2515.49

Portion of Import

Earnings

43%

47%

49%

44%

43%


Table 5: Import Earning & Portion of Import Income on Total Foreign Trade


Figure 11: Earning from Import of JBL

Interpretation: From the trend analysis it has seen that the earning from import was gradually

increasing while the highest earning from import of JBL obtained in the year 201.Every year performs

better than previous year.

2008 2009 2010 2011 2012

Import Earnings 1235.47 1590.6 1995.77 2287.35 2515.49

1235.471590.6

1995.772287.35

2515.49

0

500

1000

1500

2000

2500

3000

Import Earnings

Import Earnings

47

5.2.2. Export Earning & Portion of Export Income on Total Foreign Trade Earnings:

Year 2008 2009 2010 2011 2012

Total Earnings

From Foreign

Trade

2852.9

3417.69

4035.1

5149.21

5835.13

Export Earning

(In million TK)

1050.6

1125.64

1543.36

1991.86

2139.3

Portion of Export

Earnings

37%

33%

38%

39%

37%


Table: 6 Export Earning & Portion of Export Income on Total Foreign Income


Figure 12: Earning from Export of JBL

Interpretation: From the trend analysis it has seen that the earning from export is in rising trend from

2008 to 2012. In 2012, export earnings were the highest. Export earnings performance is not awful

2008 2009 2010 2011 2012

Export Earnings 1050.6 1125.64 1543.36 1991.86 2139.3

1050.6 1125.64

1543.36

1991.862139.3

0

500

1000

1500

2000

2500

Export Earnings

Export Earnings

48

5.2.3 Remittance Earnings and Portion of Remittance on Total Gain of Foreign Trade

Incpme:-

Year 2008 2009 2010 2011 2012

Total Earnings From

Foreign Trade

2852.9

3417.69

4035.1

5149.21

5835.13

Remittance Business

(In million TK)

566.83

701.45

495.97

870

1180.34

Portion of Remittance 20%

21%

12%

17%

20%


Table: 7 Remittance earnings & Portion of it on Foreign Trade


Figure 13: Remittance on Foreign Trade

Interpretation: From the trend analysis it has seen that the earning from remittance is in rising trend

but in 2010 the earnings fall dawn to 495.97 million from its previous year and after that the trend

rising again upward. In 2012, remittance earnings were the highest

2008 2009 2010 2011 2012

Remittance Earnings 566.83 701.45 495.97 870 1180.34

566.83701.45

495.97

870

1180.34

0

200

400

600

800

1000

1200

1400

Remittance Earnings

Remittance Earnings

49

5.2.4. Comparison of Import, Export and Remittance Earnings:

Proportion of Export Income Proportion of Import Income Proportion of Remittance Income

39% 42% 20%

37% 43% 20%

33% 47% 21%

38% 49% 12%

39% 44% 17%

37% 43% 20%

Source: Annul report of JBL

Table: 8 comparisons of Import, Export, Remittance earnings

Graphical presentation:

Figure: 14 earning percentage of Import, Export, Remittance

Interpretation: From the last five years analysis it has seen that JBL earnings from import financing

were highest, and bank earns also from export financing significantly and earnings from remittance

section were fluctuating trend. .

39% 37%33%

38% 39% 37%42% 43%

47%49%

44% 43%

20% 20% 21%

12%17%

20%

0%

10%

20%

30%

40%

50%

60%

1 2 3 4 5 6

Earning Parcentage of Export Import & Remittance

Propotion of Export Income

Propotion of Import Income

Propotion of Remittance Income

50

5.3.0Correlation analysis: Profit vs. Remittance, Export, and Import

Calculation measures: Its calculation measure following:

If the result are between 0.00 to 0.25 than, it measure that Profit and remittance are poorly

correlated. That means the change in one taka remittance profit will changes will 0.25 taka or

lower.

If the result are between 0.25 to 0.50 than, it measure that Profit and remittance have medium

correlation.

If the result are between 0.50 to 0.75 than, it measure that Profit and remittance have good

correlation.

If the result are between 0.75 to 1.00 than, it measure that profit and remittance have very

good correlation.

5.3.1 Coefficient correlation between Operating profit and Export:

Year 2008 2009 2010 2011 2012

Export 85418 88653 118515 153758 156525


Table 9: Operating profit and Export of JBL

Correlations

Export Operating profit

Export

Pearson Correlation 1 .981**

Sig. (2-tailed) .003

N 5 5

Operating profit

Pearson Correlation .981** 1


N 5 5

**. Correlation is significant at the 0.01 level (2-tailed). Source: SPSS Statistics

Table: 10 Correlations between Export & Profit

Interpretation: The Pearson correlation “r=.981” so we can say that the operating profit and export

have very strong positive relation and have .01 significant level

51

5.3.2 Coefficient correlation between Operating profit and Import:

Year 2008 2009 2010 2011 2012

Import 129413 118525 183744 197285 188284


Table 11: Operating profit and Import of JBL

Correlations

Import Operating Profit

Import

Pearson Correlation 1 .937*


N 5 5

Operating Profit

Pearson Correlation .937* 1


N 5 5

*. Correlation is significant at the 0.05 level (2-tailed).

Source: SPSS Statistics

Table 12: Correlation between Import & Operating Profit

Interpretation

The Pearson correlation “r=.937” so we can say that the operating profit and import have very

strong positive relationship and the correlation is significant at .05 level.

52

5.3.3 Coefficient correlation between Operating profit and Remittance:

Year 2008 2009 2010 2011 2012

Remittance 45924 56190 52640 72285 100089


Table 13: Operating profit and Remittance of JBL

Correlations

Remittance Operating Profit

Remittance

Pearson Correlation 1 .756


N 5 5

Operating Profit

Pearson Correlation .756 1


N 5 5

Source: SPSS Statistics

Table 14 Correlation between Remittance & Operating Profit

Interpretation:

The Pearson correlation “r=.76” so we can say that the operating profit and export have strong

positive relationship but their significant level is large than .05 level.

53

5.4 Market Share of Export, Import, & Remittance in total National Export, Import & Remittance

5.4.1 Market Share of JBL’s Export in Total National Export:

Year JBL's Export National Export Market Share of JBL

2007 71855 850309 8%

2008 85418 985931 9%

2009 88653 1074992 8%

2010 118515 1021482 12%

2011 153758 1134589 14%

Table15: Market Share of Export of JBL


Figure 15: Market Share of Export of JBL

From table and figure it has seen that JBL’s market share of export increase gradually slope of 2007

was 8% in 2008 the rate was 9% in the year 2009 the growth got downward to 8% and in the year

2010 the growth got huge upward at 12% in the year 2011 market share was 14%.

2007 2008 2009 2010 2011

Market Share of Export 8% 9% 8% 12% 14%

8% 9% 8%

12%

14%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Market Share of Export

Market Share of Export

54

5.4.2 Market Share of Import of JBL

year JBL's Import National Import Market Share of JBL

2007 84066 1118664 8%

2008 129413 1496722 9%

2009 118525 1580898 7%

2010 183744 1642434 11%

2011 197285 2400279 8%

Table 16: Market Share of import of JBL


Figure 16: Market Share of Import of JBL

From table and figure it has see that JBL’s market share of import in 2007 the share was 8% and 2008

it was 9% but in 2009 the slope got down again in2010 market share is up warded at 11% in the year

2011 once more it got down at 8%

2007 2008 2009 2010 2011

Market Share of Import

8% 9% 7% 11% 8%

8%9%

7%

11%

8%

0%

2%

4%

6%

8%

10%

12%



55

5.3.3 Market Share of Remittance of JBL

Year JBL's Rem National Rem Market share of REM

2007 36788 451890 8%

2008 45924 616442 7%

2009 56190 738773 8%

2010 52640 763134 7%

2011 72285 903738 8%

Table 17: Market Share of Remittance of JBL


Figure 17: Market Share of Remittance of JBL

From above it is show that JBL’s market share of remittance is not stable the market share is 8%, 7%,

8%, 7% & 8% in the year of 2007, 2008, 2009, 2010 & 2012

2007 2008 2009 2010 2011

Rem. Market Share of KBL 8% 7% 8% 7% 8%

0%

2%

4%

6%

8%

10%

Rem. Market Share of JBL

Rem. Market Share of KBL

56

5.5 Division Wise Contribution of Import, Export and Remittance

5.5.1. Division wise Contribution in Import financing (%):

Division wise contribution of import financing is given below-

Name of the Division Contributions

Dhaka 61.53%

Chittagong 25.34%

Khulna 4.34%

Rajshahi 7.53%

Sylhet 0.86%

Barisal 0.25%

Rangpur 0.15%


Table: 18 Division wise Contribution in Import Financing


Figure:18 Division wise contributions in Import financing of JBL

Interpretation: The pie diagram shows the division wise import financing of JBL. Highest

percentage of total import financing of JBL is in Dhaka Division that was 61.34%. Whereas

Chittagong division and Rajshahi division contributed respectively 25.34% and 7.53% in total import

financing of IBBL

61.53%

25.34%

4.34%

7.53%0.86% 0.25% 0.15%

Division Wise Contribution in Import

Dhaka

Chittagong

Khulna

Rajshahi

Sylhet

Barisal

Rangpur

57

5.5.2. Division wise Contribution in Export financing (%):


Dhaka 89.57%

Chittagong 9.02%

Khulna 0.97%

Rajshahi 0.31%

Sylhet 0.06%

Barisal 0.04%

Rangpur 0.03%

Source: Annual report of JBL

Table: 19 Division wise Contribution in Export financing


Figure: 19 Division wise Export financing Contributions of JBL

Interpretation: The pie diagram shows the division wise export financing of JBL. Highest

percentage of total export financing of IBBL is in Dhaka Division that was 89.57%. Whereas

Chittagong division contributed 9.02% in total export financing of JBL.

89.57%

9.02%

0.97% 0.31%0.06%

0.04% 0.03%

Division wise contribution of Export

Dhaka

Chittagong

Khulna

Rajshahi

Sylhet

Barisal

Rangpur

58

5.5.3. Division wise Contribution in Remittance (%):


Dhaka 32.96%

Chittagong 33.26%

Khulna 6.20%

Rajshahi 8.05%

Sylhet 7.79%

Barisal 9.68%

Rangpur 2.06%


Table: 20 Division wise contribution of remittance


Figure: 20 Division wise Remittance Contribution of JBL

Interpretation: The pie diagram shows the division wise remittance business of JBL. Highest

percentage of total remittance business of JBL is in Chittagong Division that was 33.26%. Whereas

Dhaka division and Rajshahi division contributed respectively 32.96% and 8.05% in total remittance

business of JBL

32.96%

33.26%

6.20%

8.05%

7.79%

9.68%

2.06%

Division wise contribution of Remittance

Dhaka

Chittagong

Khulna

Rajshahi

Sylhet

Barisal

Rangpur

59

5.5.4. Country wise Inflow of Foreign Remittance:

Country Percentage

Kingdom of Saudiarabia 22.04%

UAE 34.93%

Malaysia 3.41%

Kuwait 10.54%

USA 13.52%

Other countries 15.56%

Source: Annual Report of JBL

Table: 21 Contribution of different countries in remittance


Figure: 21 Contribution of different countries remittance

Interpretation: The pie diagram shows that lion’s share of remittance of JBL has been coming from

UAE over the years. Other major remittance source countries are KSA, USA & Kuwait with

contribution of 22.0413.52% & 10.54% respectively.

22.04%

34.93%

3.41%

10.54%

13.52%

15.56%

Country Wise remittances

Kingdom of Saudiarabia

UAE

Malaysia

Kuwait

USA

Other countries

61

6.1 Findings:

The major objective of the report is to analyze the foreign exchange operation of JBL. The analysis of

foreign exchange operation of JBL reveals the following major findings.

From the analysis It has seen that both import and export financing growth was lowest in

2009 because of global rescission and in 2012 the growth rate also shrink because the

inflationary pressure in FY 2012 started rising from previous year, and the remittance flow

greatly affected in 2010

Highest percentage of export and import executed by the client though JBL is in Dhaka

division as there have almost 43 corporate branches out of 68. The largest portion of

remittance of JBL is executed in Chittagong because huge number of Bangladeshi expatriate

from Chittagong division

The largest share of remittance of JBL has been coming from UAE over the years as most of

the Bangladeshi immigrant lives in UAE as well as almost 4 overseas branches of JBL are

situated in UAE. Other major remittance source countries are KSA, USA & Kuwait with

contribution of 22.04%, 13.52% & 10.54% respectively.

The earning from import, export financing and foreign remittance has gradually increased. As

import volume is higher than export and remittance so proportion of import earning also

larger than export and remittance

Relationship of export and import has a strong positive relation with operating profit and has

a significant level lower then .05. Remittance has also strong positive relation with operating

profit but significant level larger than .05 because of lower remittance volume.

Market share of export, Import, and Remittance are gradually increasing year by year in

compare with the total national export, import, and remittance. It has seen that highest

percentage of market share is captured by export is 14% compare to national export. Import

and remittance also have satisfactory market share to national import and remittance

62

6.2 Conclusion

There are a number of nationalized and foreign banks operating their activities in Bangladesh. Among

them Janata Bank Limited is one of the leading commercial bank.

Janata Bank Ltd has introduced a new dimension in the field of innovative and benevolent banking in

our country. The bank has successfully made a positive contribution to the economy of Bangladesh.

Its profit is gradually increasing. It plays a great role in International Trade etc.

The Bank ensures quality services to the customers. For better growth and healthy economic position,

it should introduce new and Import, Export finance especially for new investors.

I hope Janata Bank Ltd will do more work for socio-economic development besides their banking

business. To keep pace with ever-changing uncertain domestic business environment and face the

challenges of revised global economic scenario, the bank should be more pro-active and responsive

to introduce new marketing strategy to hold the strong position in home and abroad.

For the future planning and the successful operation in its prime goal in this current competitive

environment I hope this report can provide a good guideline. I wish continuous success and healthy

business portfolio of Janata Bank Limited.

63

6.3 Recommendations:

After analysis of foreign exchange operation of JBL I would like to make some

recommendation that may improve their export, import and foreign remittance in future.

The export and import financing of JBL has increased over the years. JBL can develop

attractive financing packages such as Pre-Shipment and Post-Shipment Finance, Export

Guarantee facility etc at a law rate for exporters and importers to maintain and increase the

trend of its import and export business.

JBL should increase strong network with the Overseas Exchange Companies and Banks in

different parts of the world to ensure better remittance services for its customers and online

Banking in every branch to promote Remittance

Highest portion of export, import executed by client through JBL is in Dhaka division and

remittance in Chittagong division. Bank should concentrate more on other division also to

increase its export, import and remittance client in this case they can increase number of

corporate branches in other division.

In case of L/C opening, Bank should provide low margin facility to clients.

More Import and export item can be included

Interest could be provide at concession rate on export, and import finance to customers

JBL can provide Consulting facility by an expert group of officials for foreign

exchange

In case of payment of remittance, they should introduce debit card so that customer can

withdraw money within a second at anywhere.

I believe these steps will be helpful to improve the performance of Janata Bank Limited and the

financial sector of Bangladesh.

64

Bibliography

Books:

Business Statistics ( New Edition) by S.P Gupta, M.P Gupta

Research Methodology Methods and Technique (second Edition) by C.R Kothari.

Foreign Exchange Regulation Act, 1947; Act No. VII of 1947

Annual Reports:

Annual Report of JBL 2007-2012

Articles:

Foreign Exchange Manual, Janata bank Limited.

Bangladesh Bank’s Monthly major Economic Trends, Statistics table

Web Sites:

http://janatabank-bd.com/

www.bangladesh-bank.org

http://data.worldbank.org/indicator/NY.GDP.DEFL.KD.ZG

http://janatabank-bd.com/

http://www.bangladesh-bank.org/

foreign exchange operations of janata bank ltd

Documents

finance i acknowledgement

internship program

intake bba program major

alimur razee id

bba major

student of bba program

intake major

supervisor of