Bangladesh University of Business and Technology (BUBT)

An Internship Report
On
Foreign Exchange Operations of EXIM Bank Limited
Supervised By:
Md. Zakir Hosain
Assistant Professor and Chairman
Department of Finance
Bangladesh University of Business and Technology (BUBT)

Submitted By:
Md.Naim Khan Sadi
ID: 12131101058
BBA Program, Intake: 29th
Department of Finance
Bangladesh University of Business & Technology (BUBT)

Date of Submission: July 30, 2016

Letter of Transmittal
July 30, 2016.
Md. Zakir Hossain
Assistant Professor and Chairman
Department of Finance
Bangladesh University of Business and Technology (BUBT)
Subject: Submission of Internship Report on Foreign Exchange Operations of EXIM Bank
Limited.
Dear Sir,
Its my pleasure to submit you my internship report on Foreign Exchange Operations of EXIM
Bank Limited. The job is assigned to me to fulfill the partial requirement of BBA Program. I have
completed my internship program in the EXIM Bank Limited, Mirpur Branch. I have to furnish the
report based on my practical experience. The report focuses mainly on the Foreign Exchange
Operation & Performance of EXIM Bank Limited, L/C opening, SWIFT and Commission charge,
Export & Import procedure and the remittance section in my job field and its feedback was mainly
concentrated.
Please feel free to contact me if you have any inquiries. I would be very happy to provide you with
any clarification regarding this report.
Would you please kindly accept my paper and oblige me there by.
Thank you
Sincerely yours,

Md.Naim Khan Sadi

ID: 12131101058
BBA Program, Intake: 29th
Department of Finance
Bangladesh University of Business & Technology (BUBT)

Students Declaration
I declare that the internship report entitled Foreign Exchange Operations of EXIM Bank

Limitedis prepared by me after completion of three month internship at EXIM Bank Limited as
part of my BBA program. It is my own research work and pursued under the supervision of Md. Zakir
Hossain, Assistant Professor and Chairman, Department of Finance, Bangladesh University of
Business & Technology (BUBT).
I further affirm that the work reported in this research is original and no part or whole has been
submitted to anywhere for any purpose.
Sincerely Yours

Md.Naim Khan Sadi

ID: 12131101058
BBA Program, Intake: 29th
Department of Finance
Bangladesh University of Business and Technology (BUBT)

Supervisors Declaration
This is to certify that Md.Naim Khan Sadi, is a student of BBA Program, ID: 12131101058, Intake:
29th, Under Department of Finance of Bangladesh University of Business & Technology (BUBT). He
has successfully completed his Internship program entitled Foreign Exchange Operations of
EXIM Bank Limited a study on EXIM Bank Limited under my supervision the partial fulfillment
for the award of BBA degree.
He has done his job according to my supervision and guidance. He has tried to 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.

Md. Zakir Hossain

Internship Supervisor
Department of Finance
Bangladesh University of Business & Technology (BUBT)

Acknowledgement
First of all I would like to acknowledge The Almighty, the supreme authority of the universe. This
is an exclusive intense of professional life. I passed and enjoyed in the time of my internship, which
helped me to prepare this report. A single individual can achieve noble objectives. Completion of
anything requires supports from various sources. I am very much fortunate to get the sincere guidance
and supervision from a number of people.
I am deeply indebted to my internship supervisor Md. Zakir Hossain for his whole guidance and
supervision. His suggestions and comments to make the report a good one was really a great source of
sprite for me. I am also deeply indebted to my honorable Dean, Faculty of Business,
Professor Dr. A.K. Shamsuddoha.
I am very much grateful to the executives of EXIM Bank Ltd, Mirpur Branch who extended their
whole hearted cooperation during my internship period. I would like to extend my gratitude to Mr.
Md. Golam Rabbani, Senior Assistant Vice President and Relationship Manager and
Mr. Md. Azmal Hossain, Assistant Vice President and Operation Manager and Foreign Exchange Incharge of EXIM Bank Ltd. Mirpur Branch.
Lastly, I would like to give special thanks and greetings to my fellow BBA students for giving me
some required information, valuable advice and suggestions to complete the report in a
comprehensive manner.
I thank them all from the core of my heart.

Table of Contents
Chapter Name
Acknowledgement
Executive Summary
Chapter: 1
1.1
1.2
1.3
1.4
1.5
1.6
1.7
Chapter: 2
2.1
2.2
2.3
2.4-2.6
2.7
2.8
2.9
2.10
2.11
2.12
2.13
2.14
2.15
2.16
2.17
2.18
2.19
2.20
2.21
2.22
2.23
2.24
Chapter: 3
3.1
3.2
3.3
3.4
3.5
3.6
3.7

Particulars
Introduction of the Report
Introduction
Background of the report
Origin of the report
Scope of the report
Objectives of the report
Methodology of the report
Limitations of the study
Overview of EXIM Bank Ltd.
Overview of EXIM Bank
Background of EXIM Bank
EXIM Bank at a Glance
Vision, Mission, Goal
Objectives of EXIM Bank
Values
Branch information
Key functions of EXIM Bank
Performance of EXIM Bank
Social commitment
Products & services of EXIM Bank
Deposit products
Investment product
Organogram
Slogan
Commitments
Distinguish features of Islamic Banking v/s Conventional
Banking
Branch arrangements
Core strategies of EXIM Bank
Core values of EXIM Bank
Five years performance of EXIM Bank
Corporate profit of EXIM Bank
Theoretical Aspect
Foreign Exchange
Letter of credit (LC)
Classification of letter of credit
Form of L/C
Document required under L/C operation
Application for issuing L/C
Different account in L/C operation

Page No.
i
ii
1
2
2
2
3
3
4
5
5
7
8
9
9
9
10
10
10
10
11
11
12
13
13
13
14
16
16
17
18
19
20
20
22
23
23
24

3.8
Chapter: 4
4.1
4.2
4.3
4.4
4.5
4.5.1
4.5.2
4.5.3
Chapter: 5
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9
5.10
5.11
5.12
Chapter: 6
6.1
6.2
6.3
References
Appendix

Parties of documentary credit

Overview of Foreign Exchange
Foreign Exchange Department
Definition of Foreign Exchange
Fundamental of foreign exchange policy
Foreign Exchange Department of EXIM Bank
Activities of foreign exchange
Import section
Export section
Foreign remittance section
Performance Analysis of Foreign Exchange
Operations
Performance of total import business financing
Earning from import business financing
Performance of total export business financing
Earning from export
Total foreign remittance
Growth rate of total foreign exchange
Performance of total foreign exchange earnings
Contribution of total foreign exchange earnings in total
income of EXIM Bank Ltd.
National import position & share of EXIM Bank Ltd.
National export position & share of EXIM Bank Ltd.
National remittance position & share of EXIM Bank Ltd.
Country wise inflow of foreign remittance of EXIM
Bank
Major Findings, Recommendations & Conclusion
Findings
Recommendations
Conclusion

Executive Summary

25

26
26
26
27
28
28
31
34

38
39
40
41
42
43
44
45
46
47
48
49

50
51
52
52

The title of the report is Foreign Exchange Operations of EXIM Bank Limited. This report is
originated as a partial requirement of BBA program, Bangladesh University of Business &
Technology (BUBT). To prepare this report I had necessary assistance from EXIN Bank Limited
during my internship period. The major objective of this report is analysis of the Foreign Exchange
Operation of EXIM Bank Limited. And some specific objectives are to get a brief idea about
operational procedure of export & import business financing as well as inward remittance to analyze
the growth rate of export, import and remittance and its earnings and examine the export, import &
remittance business financing of EXIM Bank Limited contributions on National export, import &
remittance business finance. This is a Descriptive Research. To prepare this report I have followed the
methodology which contains only secondary sources of data. To make this report I had to face some
limitations which I have also included here. Process of Foreign Exchange Operations and
Performance Analysis is an important part in this report. Different data & graphical presentations were
used to measure the performance of Foreign Exchange Operations of EXIM Bank.From the analysis
we have found that the import growth rate fluctuated during that period. It was even in negative
position in 2011 and 2013 due to poor economic conditions, political instability, etc. the growth of
remittance sharply decreased from 2010 to 2011, due to a significant deceleration of migrant workers
during the period. But in 2012 total flow of remittance increased because of the number of workers
were likely to increase as Malaysia was interested to recruit a significant number of workers from
Bangladesh under the government to government (G to G) arrangement. In the year 2013 the growth
of remittance had decreased. The contributions of export & import business financing and foreign
remittance were fluctuated. The maximum remittance inflow was from Saudi Arabia which was 29%.
Afterwards, 19% came from UAE, then some portions of were also from UK, USA, Kuwait,
Malaysia, Singapore and others. I have recommended for taking some steps to remove those
problems. They may develop new attractive packages for importers which can help to maintain steady
and positive growth rate such as lowering the L/C margin to the importer and also develop the
automated service for foreign exchange operations, L/C procedures may be made easier, increase
efficiency level such as unique needs of the clients in the changing pattern of the world trade of
import and export business financing and also need to market survey, research and development of
new products like factoring.