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Overall Banking System of NCC Bank Limited,Bangladesh

Executive Summary National Credit and Commerce Bank Limited (NCC Bank) is a well established Bank in Bangladesh. It is developing and expanding its branches in the country with innovative products and banking services, to gain greater acceptance as an effective and efficient means of intermediation and to contribute to the overall wealth creation.This report is prepared as a requirement of the internship phase of BBA program of Northern University of Bangladesh. This report focuses three months working experiences in National Credit and Commerce Bank Limited, Foreign Exchange Branch. This report will give a clear idea about the activities and operational strategies of National Credit and Commerce Bank Limited.The whole working process of NCCBL is divided into 3 sections-(1) General Banking, (2) Credit Section, (3) Foreign Exchange. Here first chapters basically discuss about the background of the report, objectives and methodologies used in preparation of the report and limitation faced at preparation. The main objective is to identify the various activities provided to customers by National Credit and Commerce bank Ltd. and descriptive analysis about their operation. Next I have tried to concentrate on Internship duties and banking function (general banking, loan and advances and foreign exchange business) and marketing part on the basis of some specific topics.The objective of the internship program was to familiarize the student with the practical implementation of the knowledge provides the theoretical aspects of the practical life. It is a pleasure for me to submit the internship report titled Overall Banking System of the National Credit and Commerce Bank Limited While preparing this report; I have tried to gather as much information as possible. 1.1 Introduction: Bachelor of Business Administration (BBA) is a professional course. The course is designed with an excellent combination of practical and theoretical aspects. After completing BBA certain times is preserved for internship. As a student of BBA with the requirement of my course I was assigned to National Credit and Commerce Bank limited (NCCBL) to Elephant Road Branch, Dhaka for my internship. However, I was very much interested to know how to develop banks. So I chose the research topic as Overall Banking System and Performance Analysis of NCC Bank Ltd. They intend to ensure the trust and confidence of the customers through focused customer orientation, quality of service and state-of the art technology, transparency in dealing and adopting the best practices of Corporate Governance, achieving excellence in all the endeavors to create value for all the stakeholders. The significant challenge posed before them is

the maintenance of the quality of business simultaneously with its information and business consolidation processes. This report is prepared based on the: topic Overall Banking System and Performance Analysis of NCCBL.Due to this practice the remittance department of NCC Bank has been growing to provide a good participation in the profitability of the Bank. Basically, this report is highlighted on overview of NCC Bank Ltd, Structure, Analysis, Present status, Performance of NCCBL, Deposit Mobilization, Utilization of Fund, Foreign Exchange, Own Experience, Recommendation and conclusion. 1.2 Scope of Study his internship program gives me a great scope or opportunity for gather experience and knowledge in several areas of banking by which I can evaluate or expose myself. During:-e first few week of my internship period, I was able to communicate most of the employees of the bank. During the first month I was able to accustom and adapted myself with the working environment of NCC Bank Limited.While preparing this report, I had a great opportunity to have an in depth knowledge of all the banking activities practices by the NCC Bank Ltd. It also helps me to acquire perspective of a leading private banking in Bangladesh. In term of Bank we can easily understand that the financial institution deals with money. 1.3 Objectives of the Study Though the main objective is to prepare myself in such a manner as though I can equip myself with the practical field as well as I will be able to know the different aspect of the banking sector and to evaluate how a bank is performing in Loans and Advance sector. In addition, the study seeks to achieve the following objectives: o To know the organizational framework of the bank o To know the work environment and organizational behaviors of the bank o To get through all the departments of the bank and observe the actual work done o To find out how the general banking system works o To see how the loans and advances are provided to the borrowers o To acquire knowledge about the foreign exchange system of the bank o To analyze the growth of deposits in the bank

o To analyze the growth of advances in the bank o To analyze the growth of investments in the bank o To compare the financial performance among several years of the bank and with other banks 1.4 Methodology In collecting the necessary data, a special care has been taken so that all the variables may not affect the objectives of the study. Data needed for conducting the study have been collected from the following sources. a) Primary source and b) Secondary source Primary sources The primary data in this report mainly includes surveying the different departments of the Bank. It includesScheduled survey Observation while working in different desks Informal discussion with professionals Secondary sources Secondary sources are the permanent and printed sources of information. This areAnnual reports of NCCBL Desk report of related department Brochures of National Credit and Commerce Bank limited Different reference books Study of related books, seminar paper, training papers, Publication of statements 1.5 Rationale of the Study

The word bank refers to the financial institution that deals with money transaction. Commercial banks are the primary contributors of the economy of this country. On one hand they are borrowing money from the locals and on the other hand lending the same to the locals as loans and advances. So the people and the government are very much dependent on banks. Moreover, banks are profit earning concerns, as they collect deposits at the lowest possible cost and provide loans and advances at higher rate. The difference between two is the profit for the bank. This report basically deals with the loan and advance management of National Credit and Commerce Bank Limited (NCCBL) covering the areas like General Banking, Loan and Advance, Foreign Exchange, Remittance, Financial Performance, Online Banking, etc. 1.6.Limitations of the Study 1. Although I have enjoyed full co-operation from employees of NCCBL and they also gave me much time to prepare this report properly in the way of my study, I have faced some difficulties, which can be termed as limitations. They are as follows: 2. It should be certainly mentioned that time constraint is the first limitation of the study. Only three months is not sufficient for gathering perfect knowledge on the vast area of bank. 3. In some cases, they could not be able to supply my topic related data for preparing a more in depth research study. Office secrecy was one of the most important problems. Disclosing of some information was restricted. 4. In case of secondary data collection, there was very little secondary information. There were few support books, reports, journals, etc. moreover, the branch office had very little of this information. Thats why bulk of it had to be collected from the head office. As the officers were very busy with their day to day work, they could provide very little time 2. 1 History of NCCBL National Credit and Commerce Bank limited came to reality through the National Credit limited. Prior to conversion into a scheduled commercial bank, National Credit Limited(NCL) was incorporated as an investment company on 18th November 1985. It made its January on 25th November 1985 at its registered office and first branch at 7-8 Motijheel Commercial Area, Dhaka-1 000 with initial authorized capital of 1k. 30 crores. It was mostly involved in collecting suitable resources and making profitable investments. But within a very short period of time this investment company turned into a scheduled commercial bank. It was turned into a bank because it faced many restrictions both collection and disbursement of funds while it was operating as an investment company. While this turnover was going on

all types of transactions were closed for about fourteen months from April 22, 1992. After that, with the permission from the government and Bangladesh Bank, NCL was converted in a full fledged commercial bank and started its banking operation on 17thMay 1993, in the name of National Credit and Commerce Bank Limited. It has been registered under the company act-1913, as a private commercial bank with paid up capital of Tk.39 crores to serve the nation along with 16 branches. However, NCCBL runs as per company rule, free from government intervention. Year 1994 & 1995 were the full operation year of the bank. During this period gave emphasis on considering the affairs of the institution as well as expansion of business work.During last 13 years if its operation NCCBL has acquired commendable reputation by providing sincere personalized service to its customers through a technology based environment. 2.2 Objectives of NCCBL The main objective is to maximize profit through customer satisfaction which very much reflects the idea of marketing concept. NCCBL has been ensuring maximum profit by avoiding best and improved customer service along with other corporate objectives mentioned below: v To provide excellent customer service to its clients, so that they choose NCCBL first for their banking. v Ensure high return on investment and services with different service products. v Making profitable investment and grow in annual profit management. v To remain as the market leader through diversification of business and automation of banking operations. 2.3 Vision The purpose of the bank is to become The Bank of Choice in the communities we serve. We accomplish this by offering to our customers the financial services they expect while providing a return to our owners. In accomplishing this mission, the bank has now been free from all the natures of a problem bank through fulfilling all the conditions set by the central bank. We proudly say: NCCBL is profit-making and problem-free. 2.4 Mission Philosophically, a bank is a financial institution, which accepts depositors money for safe-keeping and contracts with the depositors to lend this money at interest to inviduals who are in need of its use and who can give ample security that the loans will be paid. From the profits made from lending money at interest the banker agrees to pay the legitimate depositors a fixed sum of interest besides safe-guarding the deposits. Moreover the bank follows the followings as its mission:

Maximize the profit within the shortest possible time Try the best level to satisfy customers Establish NCCBL as the best performing bank in the country. 2.5 Products & Services The Bank has wide range of product line to suit the need of the strata. In addition to convention product both Asset and liabilities sides the Bank offers special credit products for its customer. This areConsumer Financing Lease Financing Small loan Festival loan Housing loan Long-term & short term loan financing Syndication Real Estate & Civil construction SME & Agro based. 2.6 Hierarchy of NCCBL Organization Structure of Foreign Exchange Branch Branch Network of NCCBL During the year the bank opened 08 branches which raised the total number of branches to 54.The bank has already taken steps to open 06 (Six) more new branches in 2007. 3.1 Deposit Mobilization General banking department is the heart of all banking activities, especially to mobilize the deposits. All other departments are linked with this department. It plays a vital role in deposit mobilization of the branch. National Bank Limited provides different types of Accounts, locker facilities, special types of saving scheme and flexibilities of remittance under general banking. This department performs the general function of banking. In National Bank Ltd. For performing the operation of this department a good number of people are allotted for the purpose of Deposit Mobilization. The general banking department of National Bank (Foreign Exchange Branch) consists of the following section: 1. Dispatch section 2. Accounts opening section 3. Cash Management section 4. Remittance section 5. Deposit section

6. Clearing section 7. Credit Card section 3.1.1. Dispatch section Dispatch division operates the function of dispatching the intimation letter to the client, IBCA, IBDA, and OBC to the other banks for internal transaction with bank. The officer engaged in the dispatch division maintains two types of register books to entries for record of these documents particulars. These two types of register books are: 1. Inward mail registers. 2. Outward mail registers. 3.1.2. Accounts opening section Opening Different Types of Accounts Account opening is the very first and preliminary job for a bank. As NCCBL does not make any business contract unless having an account on their bank, so account opening is the most important work of the general banking division. (I)Current Deposit (CD) Account (A/C): Any businessman, firm, limited companies, local bodies, corporate bodies, etc. can open a current A/C with NCCBL. Current deposit is 100% demand deposit and account holder can deposit/withdraw his/her deposits frequently without any limit. Requirements for openining CD A/C: Requirements may vary from types of the organization, such as: Individual Personal ID Copy of a Passport or ward commissioner certificate Any introducer of that respective bank Fill up Know Your Customer (KYC) form. Joint Owner Trade license Proprietors ID Any introducer of that respective bank Fill up Know Your Customer (KYC) form.

Limited Company Memorandum of Articles (MOA) Association of Articles (AOA) Certificate of Incorporation. Features of CD A/C: CD accounts have the following features: (1).Submitting Tk.5000 to open a current account. (2).It is understood that the balances at credit will not less than Tk.5000. A minimum charge Tk. 100 must be paid on all operative accounts. (3).Only the form of cheque book supplied by the bank should be used. Cheques materially altered will not be paid unless such alteration bears the signature of the drawer in full. (4).The account holders must give the same signature for withdraw money that deposited in the bank previously. (ii) Saving Bank Deposit (SB): Any individual person, local bodies, club, society, association house wife, student, non-profitable organization, etc. can open a saving bank deposit account with NCCBL. Savings bank deposit is both time and demand deposit, of which 10% is demand and 90% is time deposit and the account holder can withdraw his/her deposits twice in a week up to a certain limit. Requirements for opening SB A/C: Requirements may vary from types of the organization, such as Individual Personal ID Copy of a Passport or ward commissioner certificate Any introducer of that respective bank Nominees photograph Fill up Know Your Customer (KYC) form. Joint Owner Trade license Proprietors ID Any introducer of that respective bank Fill up Know Your Customer (KYC) form. Limited Company

Memorandum of Articles (MOA) Association of Articles (AOA) Certificate of Incorporation Features of SB A/C: SB accounts have the following features: 1) Any matured but not unsound mind can open a savings account. 2) One account holder can transfer his or her account in the branch to another branch without any cost if he or she interested. 3) Minimum deposit Tk 2,000 to open an A/C 4) SB A/C offers 6% interest charges semi-annually to the depositors account. 5) One time at least within 6 months an A/C holder must transaction with the bank to continue the A/C. 6) Charges Tk.250 for close (iii) Fixed Deposit Account (FDR): Any individual person, businessman, firm, limited companies, local bodies, corporation, corporate bodies, etc. can open Fixed Deposit A/C with NCCBL. FDR is 100% time deposit and A/C holder can usually withdraw his/her deposits after maturity of the fixed deposit. However, depositors of FDR can withdraw their deposits before maturity if they desire. FDR is also known as time liabilities or term deposits. Higher rate of interest is given on this type of deposit. Fixed deposits generally constitute more than half of the total deposits with the bank. Requirements for openinR FDR: Minimum requirement Tk.50,000 to make a FDR Above Tk.5, 00,000 in case of FDR, a report regarding FDR must be sent to Bangladesh. Interests & other charjies:

Time Interest Rate 1 month 8% p.a. 3 months 11.50%p.a. 6 months 11.75% p.a. 12 months 12%p.a. Government tax: Government will charge 1 0% income tax on the amount of income from interest. (iv)Short Term deposit (STD): Any individual person, businessman, firm, limited companies, local bodies, corporation, corporate bodies, etc. can open a short term deposit account with NCCBL. STD is 100% time deposit and an account holder can withdraw his/her deposits with prior notice to the bank. For that reason STD is also called a Special Notice Deposit A/C. (v) Special savings Scheme (SSS): Any individual person can open a special savings scheme deposit account with NCCBL for a tenure of 5/10 years with monthly deposit of Tk.500 and multiple of Tk.500 up to Tk.10000. SSS A/C is 100% term deposit and account holder can withdraw his/her deposits after maturity of SSS/A/C. (vi) Special deposit Scheme (SDS): Any individual person, businessman, firm, limited companies, local bodies, corporation, corporate bodies, etc. can open a SDS A/C with NCCBL. SSS is a term deposit with payment of interest is payable on monthly basis. An account holder can withdraw his/her deposits after maturity of SDS A/C. 3.1.3. Cash management section: Cash management section of any bank plays vital role in general banking department because it deals with the most liquid assets. The proper management of this section entails overall effectiveness of any bank. NBL has a very equipped cash section. This section is responsible for the following function: 1. Receipt of deposit. 2. Making payment to the customers. 3. Management of vault of the branch. 1. Receipt of depositThis section receives deposit or funds from the customer and the collection procedure as follows: At first the amount is counted and if ok then verified the purity of the note paid if there is any confusion of the teller.

word over the deposit slip. At last the receiving officer/ teller signed the deposit slip and by the sign of the authorized officer the deposit of fund finished in favor of a customer. In case of received of clearing cheque, the cheque is scrutinized at first whether the cheque is authenticated as per the NI Act. If satisfied then a crossing is marked so that this cheque never been enchased over the cash counter Then the amount is kept apparently deposited in the customers account and the cheque proceeds to the clearing house accordingly. 2. Making payment to the customer:The payment is made to the customer only against a valued authentic cheque. the teller has to follow the following steps in making such payment: Receiving the cheque from the customer. Examining the cheque. In case of examining the cheque, the teller is predated then the date is to be sure about the folipwing questions: (ii)Amount is written in word and in figure and both is valued same; (iii)Signature is installed and it is as it is the signature kept in the bank; (iv)There is sufficient amount in the customers accounts for making payment. Finally the cash paid seal is marked over the cheque leaf for the collection of the cheque after making the payment to the customers. 3. Management of the vault: The cash section also manages the vault of the branch. The manager of cash section is the in charge of the necessary liquid money in the vault for the payment of the customer. 3.1.4 Remittance: Foreign Exchange takes place in NCCBL. Remittance means transferring of fund through different instruments other than cheque. The following two types of Remittance are performed by NCCBL.

Types of remittance : Remittance is basically two types: uLocal remittance. Foreign remittance. 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 NCCBL remittances are safe, swift, inexpensive and simple. Types of local Remittance of NCCBL: The local remittance includes the following: a) Pay Order(PO) b) Demand Draft(DD) c) Telegraphic Transfer(TT) d) Mail Transfer(MT) (a) Pay Order(PO): Pay Order is an instrument that contains an order for payment to the payee only incase of local payment whether on behalf of the bank or its constitution. Unlike cheque there is possibility of dishonoring Pay Order. NCCBL charge different amount of commission on the basis of Pay Order amount. (b) Demand Draft: By DD any person can send money from one branch to another branch of NCCBL. To send the money he/she must fill up the NCCBLs prescribed form of DD and paid charge/commission and receives DD block. The following information are included in the DD block: Name of the sender branch

uName and account of the party who receives the money. For security purposes a confidential test number are included in the DD block Amount of money to be transferred Name of receiver branch (C) Telegraphic Transfer: To send money urgently NCCBL may be requested for TT on payment of a nominal charge and telegram charge. Any person urgently sends money from one branch to another branch within NCCBL through TT. When a message of TT sends through phone from one branch to another branch in that time the message received by the authorized officer who has a right of power of attorney. After that, he/she fills up the TT form. Following things are included in the TT form: i). TT number ii). IT test number iii). Name and account number of the payee iv). Power of attorney number of the sender and receiver of TT. v). The amount to be transferred. vi) After fill up the TT form, he tests the test number of TT. If he ensures througli testing the test number then he credits the account of the payee. On the other hand, if the test number is not proved then he calls back to the sending branch of TT and request to send a new TT. (d) Mail Transfer: Money can be sent through mail transfer to any body who has an account in any other branch of the same bank for this purpose the sender shall have to furnish the details like: The name of the beneficiary and his account number

The amount to be transferred The name of the branch where the account is maintained Foreign remittance: NCC Bank is the member of Money Gram and SWIFT networks. Using the services of this global network, non-resident Bangladesh nationals can send money from abroad to their home country within a few minutes without any risk. Types of Foreign remittance (i) Money Gram: Money Gram is represented in over 115 countries and is available at more than 25,000 locations worldwide. In the USA alone Money Gram is available at inore than 15,000 locations. Sender completes a send form and gets a receipt. Money Gram Agent gives a Ref: No. Which has to be passed to the receiver? NCC Bank makes an enquiry on the Money Gram computer network to obtain authorization to pay recipient and recipient receives the fund. uMoney Gram is one of the fastest ways to transfer money. Customers using Money uGram can send or receive money usually within 10 minutes from any world. To get the money the recipient need not to have a bank account with NCC Bank Ltd. NCCBL does not levy extra charge. It gives better exchange rate to the recipient. (ii) Placid Express In March 2002, the bank has entered a Taka drawing arrangement with Placid Express, for home remittances of Bangladeshi expatriates in the United States. (iii) X-press money: The X press Money Services would like to welcome NCCBL to their network. X press Money (XM) is a web-based person-toperson money transfer system that allows an individual to send/receive money through any of our network agents instantly. All transactions are done through secure servers using 128-bit encryption technology so as to provide maximum security (iv)Al Fardan: Al Fardan Exchange, the pioneer in money exchange and worldwide remittance services in the U.A.E., established in 1971, is a trusted name for millions of residents and expatriates. A modern exchange house with advanced infrastructure and

Courteous staff, has an extensive network of correspondent banks all over the world to facilitate faster, completely reliable transactions. (v) Habib express: Habib express is another important medium through which wage earner remittance is accepted by NCC Bank. Here head office at first enter in system server and received necessary information about the amount of remittance, beneficiary who will receive the amount and any reference number which work as security for Bank as well as beneficiary. Head office gives information through fax to it respective branch from ~where receiver will receive money. (vi) Dhaka Janata: Dhaka Janata are introduces to provide remittance fucilities to emigrant and other people of Bangladeshi who work as contractual basis in the Italy. Here Dhaka Janata also maintain same procedure of getting information from system server including the name, referance number, amount, Phone number etc.Here head office sends information through fax to all respective branch. All receivers when come to bank,respective branch check his information with information received from head office. 3.1.5. Deposit Section Deposit is the lifeblood of a bank. From the history and origin of the banking system, deposit collection is the main function of a bank. Acceptinj~ deposits: The deposits that are accepted by NBL like other banks may be classified in to,a) Demand Deposits b) Time Deposits (a) Demand deposits: These deposits are withdrawn able without notice, e.g. current deposits. National Bank Limited accepts demand deposits through the opening of, o Current account o Savings account o Call deposits from the fellow bankers (b) Time deposits: A deposit which is payable at a fixed date or after a

period of notice is a time deposit. National Bank Limited accepts time deposits through Fixed Deposit Receipt (FDR), Short Term Deposit (STD) and Beared Certificate Deposit (BCD) etc. While accepting these deposits, a contract is done between the bank and the customer. When the banker opens an account in the name of a customer, a contract arises between them. This contract will be valid one only when both the parties are competent to enter into contract. As account opening initiates the fundamental relationship & since the banker has to deal with different kinds of persons with different legal status, National Bank Limited officials remain very much careful about the competency of the customers. 3.1.6. Clearing: Clearing is a system by which a bank can collect customers fund from one bank to another through clearing house. (A) Outward Clearing: When the branches of a bank receive cheque form its customers drawn on the other banks within the local clearing zone for collection through Clearing House, it is Outward Clearing. (B) Inward Clearing: When the branches of a bank receive cheque drawn on them from other banks in the Clearing House, it is Inward Clearing. Clearing House: Clearing House is a place where the representatives of different banks get together to receive and deliver cheque with another banks. Types of c1earin~ house There are two type of clearing house: Those are A) Normal clearing house B) Same day clearing house (A) Normal clearing house: 1) 1st house: 1st house normally stands at 10 am to 11 am 2) 2~K~ house: 2nd house normally stands after 3 p.m. and it is known as return house. (B) Same day clearing house: 1) 19iouse: 1st house normally stands at 11 am. to 12 p.m 2) 2~ house: 2 house normally after 2 p.m. and it is known as return Return house

Return House means 2nd house where the representatives of the Bank meet after 3 p.m. to receive and deliver dishonored cheque, which place in the 1 g Clearing House. Cheque may be dishonored for any one of the following reasons: 1) Insufficient fund. 2) Amount in figure and word differs. 3) Cheque out of date/ post- dated. 4) Payment stopped by the drawer. 5) Payees endorsement irregular/illegible / required. 6) Drawers signature differ / required. 7) Crossed cheque to be presented through a bank. 8) Other specific reasons not mentioned above. Bills Collection In modern banking the mechanism has become complex as far as smooth transaction and safety is concerned. Customer does pay and receive bill from their counterpart as a result of transaction. Commercial banks duty is to collect bills on behalf of their customer. Types of Bills for Collection of Clearing a) Outward Bills for Collection (OBC) b) Inward Bills for Collection (lB C) (a) What is OBC? OBC means Outward Bills for Collection. OBC exists with different branches of different banks outside the local clearinghouse. Normally two types of OBC: 1) OBC with different branches of other banks 2) OBC with different branches of the same bank Procedure of OBC: 1) Entry in the OBC register.

2) Put OBC number in the cheque. 3) Crossing seal on the left corner of the cheque & payees account will be credited on realization seal on the back of the cheque with signature of the concerned officer. 4) Dispatch the OBC cheque with forwarding. (b) Inward bills for collection (IBC) When the banks collect bills as an agent of the collecting branch, the system is known as IBC. In this case the bank will work as an agent of the collection bank. The branch receives a forwarding letter and the bill. Procedure of IBC: 1) IBC against OBC: To receive the OBC cheque first we have to give entry in the IBC Register. The IBC number should put on the forwarding of the OBC with date. 2) Deposit of OBC amount: OBC cheque amount is put into the sundry deposit sundry Creditors account, prepare debit & credit vouch of it. If the OBC cheque is honored, send credit advice (IBCA) with signature & advice number of the concern branch for the OBC amount. 3) If the OBC cheque is dishonored, the concerned branch is informed about it.Again place in the clearing house or send the OBC cheque with Return Memo to the issuing branch according to their information. Others Activities 3.2. Credit Card Section 3.2.1. About Credit Card? It is a card (usually plastic) that assures a seller that the person using it has a satisfactory credit rating and that the issuer will see to it that the seller receives payment for the merchandise delivered. Types of Credit Card

National Bank Limited offers mainly two type of credit card according to the geographical area. These are Local credit card and International credit card. According to the level of income the local and international credit cards are divided into two categories viz. Gold card and Silver card. These types of credit cards are described below: (a)Local credit card: Local credit card is valid only in Bangladesh. Out side Bangladesh, the card is invalid. Local card are two types. They are Gold local card and Silver local card. The card limit of gold local card is Tk.50000 to Tk. 100000 and silver local card is below Tk.5 (b) International Credit Card: International credit card is valid mainly outside Bangladesh. But for the payment of roaming facilities for Grameen phone, cardholders can use international credit card in Bangladesh. International credit cards are of two types. These are gold international credit card and silver international credit card. The card limit of gold international credit card is $2000 to $4000 and silver international credit card below $2000. 3.2.2 Yearly Charges on credit card National Bank Limited receive card fee for new card and renew card from the cardholder. The rate of card fee for new card and renew card are the same. In case of new card the bank receives the card fee with the next months bill. The rate of card fee are given in below: Table: Yearly charges on credit card Type of card Card fee International Gold Card US$70.00 International Silver card US$ 35.00 Local Gold card Tk.2000.00 Local Silver Card Tk.1200.00 4.1 Utilization of Fund As a private commercial bank, NCCBL has some inherit commitments to its society. By utilization the fund from the mobilized deposit NCCBL is fulfilling its commitment which can gear up the economic activity. NCCBL has been extending credit facilities to the potential, productive and priority sectors as per instruction from Bangladesh bank. For a bank, good loans and advances

are most profitable asset. A big portion of operating income is derived from lending. This activity is done by the loans and advance department. 4.1.1. Classification of loans and advances Bank is an institution where clients keep their surplus deposits and these deposits are invested in trade, commerce and industries in the form of Loans & Advances to earn profit. Apart from earning profit, by lending to priority sector, Bank also helps countrys economic development. Lending activities of the Commercial Banks are of two natures: (A) Continuous Credit. (B) Term Loan. In continuous credit the client is given a credit limit for a specified period mostly for 1 (one) year. The borrower is allowed to make transaction up to that limit. In other word, he can deposit and withdraw up to the fixed limit in revolving manner. On the other, in case of Term Loan, Loan is first disbursed at a time or in phases. Then it is borrowers turn to repay the Loan after a certain fixed period at a time or in installments fixed for within a certain period. (A) Continuous credit (i) Cash Credit (Hypothecation) (ii) Cash Credit (Pledge) SOD (iii) SOD (Financial Obligation) (iv) SOD (General) (v) OD etc (ii) Cash Credit (Hypothecation): This facility shall be available both for Trading Houses and. Manufacturing concerns against primary security of hypothecated inventory/ stocks of Finished, Raw Materials and machineries. However, as the primary security remains at the disposal of the borrower with practically no control of the lending institution, NCCBL shall extend such facility only against retention of adequate eligible Collateral Security favoring bank. Criteria of such Eligible Security shall be as per circular of Head Office and within the guideline set by Bangladesh Bank in this regard ii).Cash Credit (Pledge): NCCBL shall retain the provision to extend WC

finance under the head. As the Primary Security i.e. Finished or Raw by regulation is supposed to be under strict control of the bank, the arrangement on practical experience eventually proves cumbersome due to numerous difficulties in maintaining the formalities related to strict supervision and monitoring. Therefore, NCCBL shall prefer to consider such facility only under Hypothecation unless assurance and arrangements are available about compliance on the spirit of the portfolio. (iii) Secured Overdraft (Financial Obligation): Credit Facility in the form of Loan and Overdraft can be considered against Lien of various Financial Obligations subject to credit restriction or any directive as imposed by regulating authorities or Head Office. Necessary guidelines with regard to extension of the facility shall be as per direction of the Head Office/ Bangladesh Bank. (iv) Secured Overdraft (General): NCCBL shall consider facilities under the portfolio against valid Work Order/Supply Orders payment against which shall be duly assigned favoring the bank by the work awarding office/ agency. The portfolio in nature shall be of a Loan type and not continuous. The WO shall be construed as Primary Security in this regard. However, as the nature of facility carries inherent risk, NCCBL shall prefer Collateral Securities while considering facilities under the head. (B) Term Loan (i) Project Loan (ii) House Building Loan (iii) Packing Credit (iv) LIM (Loan against Imported merchandise) (v) LTR (Loan against Trust Receipt) (vi) Transport Loan (vii) Lease Finance (viii) PAD (Payment against Documents) (I) Project Loan: NCCBL shall allow Loans for longer duration to enable its investment to be returned by way of repayment after detailed assessment and feasibility study as per its guideline for entrepreneurs and investors willing to come to an arrangement in setting up industries and different production unit complying to rules and regulations of governments Investment & industrial policy.

As investment shall be for longer duration and fraught with unforeseen risks, bank shall obviously seek adequate eligible securities to cover itself. Acceptance of such securities shall be as per laid down principles of the bank and Bangladesh Bank guidelines in this regard. (ii) House Building Loan:Bank shall allow credit facilities under such portfolio strictly as per PPG within the Prudential Regulations of Bangladesh Bank for Consumer Financing. (iii) Packing Credit: This facility also relates to financing at Pre shipment stage. NCCBL shall consider such facility under defined guidelines against export of various commodities. (iv) Loan against Imported Merchandise (LIM): Loan against the security of merchandise imported through bank shall be allowed against Pledge of goods. The procedure and conditions for allowing such facility under prior arrangement or forced circumstances shall be strictly as per related guideline of the bank. Due to inherent complexities, the portfolio should be discouraged. (v) Loan Against Trust Receipt (LTR): Bank shall be selective in extending the facility but shall prefer due to comfort in binding the customer legally. Generally such facility shall be against arrangement and preferable against collateral security favoring the Bank. (vi) Transport Loan: NCCBL may extend Transport Loan on close scrutiny of the purpose, Feasibility, experience of the borrower, credit/trust worthiness and above all security aspect as per its guidelines in this regard. (vii) Lease Finance: An entrepreneur, under this scheme may avail of lease facilities to procure industrial machinery and equipments, Vehicles etc. (without having to purchase it by down payment) with easy repayment schedule on case to case basis. Rate of interest under this Scheme is 16% P.A. (viii) Payment against Documents (PAD): This facility originates against payment of Import Bills on lodgment of CLEAN shipping documents received from Foreign Correspondent against Letter of Credit opened on behalf of the customers. (ix) IBP & FBP (Inland &Foreign Bills Purchased): The facility relates to extension of credit at the post Shipment stage. NCCBL shall consider facility under the portfolio to relieve the exporter strictly on complying standing conditions attached to it. 4.1.2. NCC Banks Special Credit: Its based on the common credit requirement of the society. Besides, these products have expanded th~

the Bank with diversified source of income. These are: (a)Small Business Loan (b) Personal Loan (c) House Renovation Loan (d)Consumer Finance (e) Festival Business Loan. (0) Festival Personal Loan. (g) NCC Bank Housing Loan Scheme. (e) Festival Business Loan: The scheme designed to help the genuine businessmen to meet the extra finance required during festivals like, Eids, Puja. Disbursement of this loan is made in recycling order which is to be stopped 15 days before the festival day. Maximum Tk.10.00 lac is allowable under this Scheme @ 16% interest P.A. at quarterly rest. Application fee is Tk.500 J) Festival Personal Loan: The scheme formulated to meet emergency financial expenses of the service holders at the time of festivals like Eids. Puja. Any salaried employee aged between 20- 50 years and working in Govt. Semi - Govt. Autonomous organization, corporate bodies, Insurance Co., etc. are eligible to avail of this loan. The disbursement of this loan starts before 1 month of festival and continues till festival. Borrower may be allowed to avail of maximum Tk. 15,000/- only for minimum 6 months but not more than 15 months @ 16% interest P. A. at quarterly rest. Application fee is Tk. 100/-. (g) NCC Bank Housing Loan Scheme: In order to enable the service holders/ profess ionals/ businessmen in purchasing Flat/House, Construction of Building and renovation, the Bank launched Housing Loan Scheme from September 2004. The tenure of the loan is maximum 12 years and maximum amount of loan is tk.50.00 lac with interest @ 16% P.A. 4.1.3. Modes of Credit: Credit can be categorized according to the nature and modes of payment. (a) Term Wise Classification: ii) Short term (=<1 year) ii) Mid term (=>1 year to 5 years) ii) Long term (> 5 years) (b) Nature Wise Classification: i) Loan: fixed in nature, for a particular term or time.

ii-) Advances: continuous in nature with no fixed repayment schedule but an expiry date, for example: Cash Credit (hypo), Overdraft etc. (c). Purpose Wise Classification: i).Working Capital: For manufacturing units to meet their short-term obligation and day-to-day expenditure. ii)Fixed Asset Finance: For acquisition of long-term capital assets. (d). Sector Wise Classification: Commercial Lending: for commercial requirements except export. It is for short and medium from of loan. Example: LIM, LTR, PAD, SOD, Cash Credit, Loan General. i. Industrial Credit: ii. Agricultural Credit iii. Transport Credit iv.House Building Loan (e) Classification based on Fund Involvement: i.Fund Facilities: direct money involvement ii. Non-Funded Facilities: where fund is not extended directly. Example: Letter of Credit, Letter of guarantee, Bank Guarantee etc (1) Types of Credit in Foreign Trade: i.Loan against Imported Merchandise (LIM) ii.Payment against Imported Documents (PAD) iii. Packing Credit (PC) iv. Loan against Trust Receipt (LTR) v. Back to Back Letter of Credit. The Bank has made remarkable achievement in recovery of non-performing and classified loans advances during the period under review, As a result, Banks ratio of classified loans to total loans on December 31, 2006 has come down to 5.62 percent, from 5.66 percent of the previous year. This achievement was possible due to continuous monitoring, follow-up and negotiation with the clients.

4.1.5 Lending Authority: The lending officers are broadly categorized as followsManaging director eputy Managing director Executive vice president Senior vice president Vice president Senior assistant vice president Assistant vice president 4.1.6 Sanction of Credit: When a Branch Manager writes a letter to accepting all terms and conditions of loan, it is called loan sanction. After the completion of all the formalities of financing a loan proposal, an advising letter is sent to the customer for the credit facilities along with all terms and conditions. The conditions, which are included in the loan sanctions, are given bellow: a) Limit b) Primary Securities c) Collateral Securities d) The Rate of Interest e) Expiry Date 0 Repayment 5.1. Foreign Exchange Foreign Exchange is a process which is converted one national currency into another and transferred money from one country to other countries. Foreign exchange is the rate of exchange in the both countrys currency. In NCCBL, the Foreign Exchange Department has two sections Import section Export section 5.1.1 Import Section: Import of merchandise involves two things: bringing

of goods physically into the country and remittance of foreign exchange towards the cost of the merchandise and services connected with its dispatch to the importer. Import Procedure Procedure for obtaining IRC (Import Registration Certificate) Submission ofLCA (Letter of Credit Authorization) Form: LCA forms distribution: OpeningLC: Examination of import documents Documents sent to the foreign exporter Payments against documents of release order from the bank Receiving the documents Post Import Finance: LTR (Letter of Trust Receipt): Letter of Trust Receipt occurs when an importer fills up the LTR form and applies for it LTR is permissible only if the importer is a reputed, trust worthy and having done business with the particular bank for a long time. LTR creates an option for the importer to pay due by future installment. Loan against Imported Merchandise (LIM): Loan facility up to a satisfactory limit to the traders customers by the bank against security of the value of the given only to the selective customers who have been doing business with the bank for a long time. Payment against Documents (PAD): After receiving the documents sent by the foreign exporter which include bill of exchange, shipping documents etc. the importer pays the dues against the documents received by the bank and latter on releases the merchandises from the port. So, after due payments, which include commissions, product price, charges for SWIFT, and miscellaneous, the party is eligible to take the release documents from the bank on this payment is called PAD. 5.1.2 Export Section: The import and export trade of Bangladesh is

controlled under the Import and Export Control Act, 1950. No person who has been granted registration by the Chief Controller of Imports and Exports shall indent, import or export any goods into or out of Bangladesh except in cases of exemption issued by the government.. The registration number should be quoted on the relative export forms. There are a number of formalities, which an exporter has to fulfill before and after shipments of goods. These formalities or procedures are enumerated as follows: ~ The Registration of Exporters ~ Preparations of the Export Documents > Dispatch of Goods > Send Shipping Advice )~ Negotiation of Documents ~ Realization of Export Proceeds ~ Get the name of the Importer/Buyer: > Price/Quotations: )~ Communicate the Acceptance: ~ Obtain Export Code Number: Keep the goods ready for dispatch: Inspection of Goods Getting Shipping Space Get in touch with the Port Authorities Are required to be forwarded to the opening banker along with the bill, the credit is called a documentary credit. 5.2. Function of Foreign Exchange The Bank actions as a media for the system of foreign exchange policy. For this reason, the employee who is related of the bank to foreign exchange, specially foreign business should have knowledge of these following functions

i) Rate of exchange. ii) How the rate of exchange works. iii) Forward and spot rate. iv) Methods of quoting exchange rate. v) Premium and discount. vi) Risk of exchange rate. vii) Causes of exchange rate. viii) Exchange control. ix) Convertibility. x) Intervention money. xi) Foreign exchange transaction. xii) Foreign exchange trading. xiii) Export and import letter of credit. xiv) Non-commercial letter of trade. xv) Financing of foreign trade.xvii) Nature and function of foreign exchange market. xviii) Rules and Regulation used in foreign trade. xix) Exchange Airtime 5.3. About of LIC On behalf of the importer if the bank undertakes to make payment to the foreign bank is known as documentary credit or letter of credit. The letter of credit is issued against payment of amount by the importer or against satisfactory security.

5.3.1. Application for Opening LIC: At first, an importer will request banker to open L/C along with the following documents: 2. Indent or Proforma Invoice 3. Import Registration Certificate (IRC) 4. Taxpayer Identification Number (TIN) 5. Insurance cover note with money receipt 6. A bank account. 7. Membership of chamber of commerce 5.3.2. L/C Application: NCCBL provides a painted form for opening of L/C to the importer.The importer gives the following information is that form: Full name & address of importer. Date & place of expiry of the credit. The mode of transmission of document (courier/mail/telex) Whether the confirmation of the credit is requested by the beneficiary or not. Whether the partial shipment is allowed or not. The type of loading (loading on boarding). Brief description of the goods to be imported. Availability of the credit by sight payment acceptance /deferred payment. Within she specific time duration *the document should be presented. Sales terms (FOB/CIF/C & F). Account number. L/C amount.

Shipping mark. H.S. code number of the goods to be imported. IRC number. LCA number Insurance cover note. Country of origin. The above information is given along with the following documents: Proforma Invoice, which gives description of the goods including quantity, Unit price. Four set of IMP form. uThe insurance cover note, issuing company & the insurance number. 5.3.3. Importers Application for L/C Limit/Margin: To have an import L/C limit, an importer submits an application to NCCBL. In that application he/she gives full detail of the following: Full particulars bank accounts. Nature of business. Required amount of limit. Payments terms & condition Goodstobe imported Offered security Repayments schedule 5.3.4. LC Margin: LC margin is the amount of down payment or deposit to open the LC. This is a sort of security for the LC purpose. Usually the margin varies from importer to importer. Generally a regular importer enjoys a lower margin facility from 10%-20% and for a new customer of the bank the margin may be 80%-100%.

Charges: Handling charge per document Tk.1000 Accepted Commission: Duration Commission 90 Days (Pt Quarter) 0.60% 120 Days (2fld Quarter) 0.90% 180 Days (3Tc~ Quarter) 1.20% Postage charge- Tk.200 Stamp charge-Tk. 150 SWIFT charge-Tk.3 500 per document 5.3.5. Transmission of L/C: The ways of transmission of L/C are as follows i) Through SWIFT ii) Through Telex iii) Through DHL or FEDEX iv) Through Emergency Mail Service (EMS 5.4. Back to Back or Countervailing Credit: The beneficiary of a documentary credit may, for the purpose of fulfilling his obligation under the credit, open a counter credit in favour of another party to ship the goods of his purchaser (importer). This is known as Back to back credit and is issued conditional terms except prices and invoices. The difference in the prices goes to the benefit of the original beneficiary. 5.5. SWIFT: NCC Bank is a member of society for inters bank financial telecommunication. Worldwide. It ensures secure messaging having a global reach of 6495 Banks and Financial Institutions in 178 countries, 24 hours a day. SWIFT global network carries an average 4 million message daily and estimated average value of payment messages is USD 2 trillion. SWIFT is highly secured messaging network enables Banks to send and receive fund transfer, L/C related and other free format messages to and from any bank active in he network. Having SWIFT facility, Bank will be able to serve its customers more profitable by providing L/C, payment and other messages. 5.6. Form of Letter Of Credit

A letter of credit (L/C) may be two forms. These as below: i) Revocable letter of credit. ii) Irrevocable letter of credit. (i) Revocable L/C: If any letter of credit can be amendment or change of any clause or canceled by consent of the exporter and importer is known as revocable letter of credit. A revocable letter of credit can be amended or canceled by the issuing bank at any time without prior notice to the beneficiary. It does not constitute a legally binding undertaking by the bank to make payment. Revocation is possible only until the documents have been honored by the issuing bank or its correspondent. Thus a revocable credit does not usually provide adequate security for the beneficiary. (ii) Irrevocable L/C: If any letter of credit can not be changed or amendment without the consent of the importer and exporter is known as irrevocable letter of credit. Irrevocable credit constitutions a firm undertaking by the issuing bank to make payment. It therefore, gives the beneficiary a high degree of assurance that he will paid tohis goods or services provide he complies with terms of the credit. 5.7. Parties to a Letter Of Credit: A letter of credit is issued by a bank at the request of an importer in favor of an exporter from whom he has contracted to purchases some commodity or commodities. The importer, the exporter and the issuing bank are parties to the letter of credit. There are however, one or more than one banks that are involved in various capacities and at various stages to play an important role in the total operation of the credit. a) The opening Bank. b) The Advising Bank. c) The Buyer and the Beneficiary. d) The paying Bank. e) The negotiating Bank. 0 The confirming Bank. (a) The opening Bank: The opening Bank is one that issues the letter Of credit at the request of the buyer. By issuing a letter of credit it takes upon itself the liability to pay the bills drawn under the credit. If the drafts are negotiated by another

bank, the opening Bank reimburses that Bank. As soon as the opening Bank, issuing a letter of credit (L/C), it express its undertaking to pay the bill or bills as and when they are drawn by the beneficiary under the credit. When the bills are presented to or when antic is received that bills have been presented to a paying or negotiating Banks its liability matures. (b) The Advising Bank: The letter is sent to the bank by mail or telex and forwarded by it to the exporter. The bank providing this service is known as the advising bank. The advising bank undertakes the responsibility of prompt advice of credit to the beneficiary and has to be careful in communicating all its details. (c) The Buyer and the Beneficiary: The importer at whose request a letter of credit is issued is known as the buyer. On the strength of the contract that he makes with the exporter for the purchase of some goods that the letter of credit is opened by the opening bank. The exporter in whose favor the credit is opened and to whom the letter of credit is addressed is known as the beneficiary. d) The paying Bank: The paying bank only pays the drafts drawn under the credit but under takes no opening bank, by debating the latters accounts with it if there is such an account or by any other measured up, between the two bankers. e) Negotiating bank: The negotiating bank has to be careful in scrutinize that the drafts and the documents attached there to be in conformity with the condition laid down in the L/C. Any discrepancy may result in refused on the part of the opening bank to honor the instruments is such an eventuality the negotiating bank has to look back to the beneficiary for refund of the amounts paid to him. 1) The Confirming Bank: Sometimes an exporter stipulates that a L/C issued in his favor be confirm by a bank in his own country. The opening this country to add its confirming to the credit the bank confirming the credit is known as the conflrmin~ bank and the credit is known as confirmed credit. 5.8. Documentary Letter Of Credit (Import/Export Documentation): Documentary letter of credit is such kinds of commercial letter which a bank issue on behalf of foreign seller (exporter) according to the direction of the (importers) purchasers. The documents shown under are known as export documents form the importers side. These are: (i) Bill of exchange: The bill of exchange is that particular instrument through which payment is effected in trade deals internal and international. (ii) Bill of lading: A bill lading is a document of title to goods entitling the

holder to receive the goods as beneficiary or endorsee and it is with the help of this document on receipt from the exporter that the importer takes possession of the goods . from the carrying vessel at the port of destination. (iii) Airway bill I Railway receipt: When goods to be transported are small in bulk or requiring speedy delivery or those are perishable in nature on the deal is in between the neighboring countries then mode of transports other than shipping may be resorted to far the carriage of the goods Airways bill / Railway receipt take place of Bill ~of lading depending on the nature of the carrier. (iv) Proforma invoice: It is the sellers bill for the merchandise. It contains a description of goods, the price per unit at a particular location, total value of the goods, packing specifications, terms of sale, letter of credit, bill of lading number etc. There is no standard form far a commercial invoice. Each exporter designs his own commercial invoice form. The invoice is made out by the seller under his signature in the name of the buyer and must be submitted in a set of at least 3 copies. Its main purpose is to check whether the appropriate goods have been shipped and also that their unit price, total value, marking on the package etc. are consistent with those given in other documents. (v) Insurance policy: In the international trade insurance policy is a must to cover the risk of loss on consignments while they are on seas, roads, airways. The insurance is the responsibility of the buyers (consignee) under FAS, FOB and C&F contracts and of the seller (consignor) under CIF contract. The policy must be of the type as specified in the relative contract / credit. The policy would be for the value of CIF price plus 10 (ten) percent to cover the expenses and that is required to be obtained in the same currency as that of the credit and dated not later than the date of shipment with claims* being payable at the destination. It must be properly stamped. Like a bill lading it must be negotiable and be endorsed where it is payable to order. (vi) Certificate of origin: This is a certificate issued by a recognized authority in exporting country certifying the country of origin of the goods. It is usually by the Chambers of commerce. Some times, it is certified by local consul or Trade Representative of the importing country as per terms of the credit. vi)Packing list: The exporter must prepare an accurate packing list showing

item by item, the contents of the consignment to enable the receiver of the shipment to check thecontents of the goods, number and marks of the package, quality, per package net weight, gross weight measurement etc. (viii) Weightment and Measurement: Issued by recognized authority (like chambers of commerce and industry) in exporting country certifying correct weightment and measurement of the goods exported. (ix) Bill of entry: A bill of entry is a document which contains the particulars of the imported goods as well as the amount of customs duty payable.The negotiating bank after received the above documents / papers then this bank scrutiny the documents. The negotiating bank sends the original shipping documents to the L/C opening bank and keeping the second copy with the negotiating bank 5.9. Payment against Documents (PAD) Banks deal in documents and not in goods. If the shipping document against the L/C is in order then the L/C opening bank must have to payment to the foreign bank within 3 days according as Uniform Customs and Practice for Documentary Credit (UCPDC) 500 of revision of ICC. If the shipping documents have any discrepancy, then the L/C opening bank informed to the negotiating bank within 7 days. Otherwise, the shipping documents have not discrepancy. If the importer have not adequate founds in the bank account then the bank payment to the foreign bank against the shipping documents 5.10: Payment Procedure of Import Documents: Payment procedures of NCCBL involve the following tasks: (a): Date of Payment: Usually payment is made within seven days after the documents documents have been received. If the payment is deferred, the negotiating bank may claim interest for making delay. (b): Preparing Sale Memo: As sale memo is made at B.C. rate to the customer. As the T.T & 0. D rate is paid to the ID, the difference between these two rates is known as Exchange Trading. Then an Inter Branch Exchange Trading Credit advice is sent to Inter ID. Requisition for the foreign currency For arranging necessary fund for payment, a requisition is sent to the ID. Transmission of telex: A telex is transmitted to the correspondent bank ensuring that payment is being made.

In this section the Overall Performance of NCC Bank 2002-2006 has discussed in figures graphs: NCCBL is the well reputed and established bank in the private sector. All the branches are computerized and people are getting quick benefit from the bank. 6.1 Deposits (2002-2006): From the figure it is seen that the growth has been steady enough. During the year 2006 total advances stood at Tk.24, 678.36 million and comparing to the advances, the advance-deposit ration was 0.88.1 in the year 2006 6.2 Investment: investment figure of the bank as on 3 Pt December, 2006 stood at Tk.3,552.08 million as against Tk.3,0 10.45 million of the previous yearincrease being 18%. Considering the good rate of return, the bank emphasized on making investment Govt. Treasury bill with a view to utilizing its liquid fund on temporary basis so that the same can be liquidate to meet urgent requirements. 6.4 Commission on Letter of Credit: The amount of Commission on Letter of Credit handled by the Bank in 2002, 2003, 2004 were nearly same. But later on 2005 was increased huge amount from 2004, rate of growth being 13.53%. 2005 and 2006 is nearly same. The chart below shows the growth of Commission on Letter of Credit for last 05 The movement of export is relatively increasing position in steady way. Here in 2003 and in 2004 the growth was stably increases and after that it rises in increasing scale. The position of import is different. Because in the year of 2003 and 2004 it declined and after that it increases in 2005 strongly and continue in 2006. The position of remittance is almost same as import because it also decreases in 2003 and 2004 . After that it increases in 2005 and 2006 which provide a good sign for future

6.6 Additional Confirmation Commission on Letter of Credit: The amount of Additional Confirmation Commission on Letter of Credit handled by the Bank in 2002 and 2003 was nearly same but in 2004, this amount was increased huge amount. Later on 2005, this amount was decreased huge amount and the difference between 2004 and 2005 was -55.96%. But 2005 and 2006 is nearly same. The chart below shows the growth of Additional Confirmation Commission on Letter of Credit for last 05 years. 7,1 Conclusion: Modem Commercial Banking is exacting business. The reward are modest, the penalties for bad looking are enormous. And Commercial banks are great monetary institutions, important to the general welfare of the economy more than any other financial institution. It has a vastly sobering and exacting responsibility. National Credit and Commerce Bank Limited (NCCBL) playing a vital role in financing import and exports of the country. Without Banks co-operation, it is not possible to run any business or production activity in this age. Exports and import need finance in various stages of their activities. Export and import financing are letter of credit (L/C), payment against documents (PAD), loan against imported merchandise (LIM) etc. All these facilities are provided by NCCBL. For this purpose Banks consider the borrowers business standing, integrity, liability with the bank term and conditions of the L/C. There is lot of risks involved in foreign business. So, the National Credit ant commerce Bank Limited (NCCBL) has to clearly justify the customers from a neutral point and gather the current information about the market. I have worked only in the Elephant Road branch. So I am not able to know about head office activities regarding credit and others. Branch officers have to work within limited boundaries and time to time they have to take permission from the head office. Taking permission from the head office is time consuming. From my observation I have found that peoples are interested about that job which gives them more salary and other facilities. NCC bank should give its employees more salaries, job security and others facilities to hold its existing expert and trained officers.

7.2 Recommendation: As the study was done in the specific area, so recommendations have been covered in respect of those areas. NCC Bank authority among which most of them has been mentioned as suggestion to improve service quality. For the improvement of the service the following measures should be taken: Customers Convenience: For customers convenience, NCC Bank should provide more personnel to deliver faster services to their honorable customer. Human Development: Development of human resources should be ensured to increase efficiency in work. Communication System: Ensure proper communication system and maintenance of file & machineries like phone, computer, fax, and photocopier. Interest: More interest should be paid on deposit account so that customers are convinced to deposit their money in bank. Margin Rate: To decrease margin rate for all clients. This is very risk for the Bank but if the Bank wants to target many clients, this is very important Computerization: To ensure error free fast task bank should be fully computerized. R & D: Research & Development wing must be more extensive & rich. Strategy: Effective strategies must be undertaken against defaulter. Project Management: Project Management must be practiced in case of investing in the project. Feasibility of the project, project planning ,monitoring & evaluation should be undertaken. Managerial Function: NCC Bank must have to follow the management functions (from planning & controlling) strictly in all of their business activities. Financial Analysis: Branch should have a separate section to analyze the financial statement for fining its profitability & ownership ratios. Image: Office should be fully decorated to attract people to come into it.

shaila Islam(Advocate & amp; Legal Associates)About Company Law Matter[Company Registration,TIN,Trade Licence,Trade Mark,VAT,IRC,ERC] : pm