Foreign Exchange Operations of First Security Islami Bank Ltd.

A Study on Agrabad Brach, Chittagong

Prepared By:
Siful Islam
ID: EB151051
Program: BSS
Semester: Autumn-2018

Department of Economics & Banking

International Islamic University Chittagong
 To have an overview of the Bank.
To know about foreign exchange
activities of FSIBL.
Objectives To evaluate financial performance
of the regarding foreign exchange operations
Study of the sample branch.
To find out some problems related to
foreign exchange operations and put
some recommendation to overcome the
problems.
 This report has been prepared on the basis of
experience gained during the period of
internship. Data has been collected from
primary as well secondary sources.
Data collection method:
Relevant data for this report has been collected
primarily by direct investigation of different
Methodology records, papers, documents, Operational
process and different personnel. No structured
questionnaire has been used. Information
regarding office activities of the bank has been
collected through consulting and discussion
with bank personnel.
 Primary Sources:
Face to face conversation with bank officers.
Questionnaire.
Personal observation – during bank hour.
Data sources Discussion with the bank personnel.
method Work in different departments of the bank-
accounts opening, accounts, clearing, foreign
exchange & remittance departments.
Face to face conversation with the client.
Facing some practical situation related with the
day to day banking activities.
 Secondary Sources:
Banks financial statement.
Monthly transaction record of the bank.
Data sources Annual Reports.
method Ctnd...
Web Sites.
FSIB published documents.
PERFORMANCE
ANALYSIS OF THE
BRANCH
Table 1: Five years Export Financing of the Agrabad Branch
Year 2014 2015 2016 2017 2018
Export 140.43 220.20 178.22 147.52 190.50

Growth Rate (%) --- 36% -24% -21% 23%

(Figures in crore)

Figure 1: Five years Export Financing of Agrabad branch

250
220.20
Export
200 190.50
178.22

140.43 147.52
150

100

50

0
2014 2015 2016 2017 2018
 Growth Rate
Growth Rate

36%
40%
30% 23%
20%
10%
0%
-10% 2014 2015 1016 2017 2018
-21%
-24%
-20%
-30%
 Table 2: Five years Import Financing of the Agrabad Branch
Year 2014 2015 2016 2017 2018
Import 250.59 270.32 330.53 301.25 350.10
Growth rate (%) --- 07% 18% -10% 14%
(Figures in crore)

Figure 2: Five years Import Financing of Agrabad branch

Import
400
350.10
350 330.53
301.25
300 270.32
250.59
250 Import

200

150

100

50

0
2014 2015 2016 2017 2018
 Growth Rate

20% 18%
14% Growth Rate
15%

10% 7%

5%

0%
2014 2015 2016 2017 2018
-5%
-10%
-10%

-15%
  Table 3: Five years Remittance Financing of the Agrabad Branch
Year 2014 2015 2016 2017 2018

Remittance 1732.56 1952.55 1835.27 2154.58 2350.60

Growth Rate (%) --- 11% -06% 15% 08%

(Figures in lac)

Figure 3: Five years Remittance Financing of Agrabad branch

Remittance

2500 2350.6
2154.58
Remittance
1952.55
2000 1732.56
1835.27

1500

1000

500

0
2014 2015 2016 2017 2018
 Growth rate
20%

15%
15%
11%
10% 8%

5%
Growth rate
0%
2014 2015 2016 2017 2018
-6%
-5%

-10%
 Import, Export & remittance all are increasing day by day.

Import performance of the sample bank is good as well as

fluctuating.

Export performance shows that it has a fluctuating trend.

Findings of
The Study Remittance performance is increasing gradually.

L/C opening performance is higher in the year of 2018.

From information up to April 2019 the findings is there is

good tradeoff between target & achievement of Import,
Export, and Remittance.
 Bank will have to arrange more training program for the FOREX
officers to improve their analytical ability, communication skill
and professional standard regarding the customer dealing and
different foreign exchange operation.

For better profit than others we have to create good relationship

with renewed corporate client who have huge amount of import,
export and remittance business.

Recommendations Bank should make more relationship with the foreign exchange
house and special strategies will have to take for increasing non-
resident account and shipping line account.

The bank needs to create new marketing strategy which will

attract more clients including priority customer and thereby
increase the total export import business.

Bank should consider exchange rate at the time of big payment

and L/C margin and commission should be uniform.
 First Security Islami Bank Limited is one of the third
generation banks in Bangladesh. Day by day FSIBL is going up.
Now-a-days many private banks are emerging with lot of
attractive features. To capture and maintain this lucrative
position this bank needs to compete in a very competitive
environment.
The Foreign Exchange Transaction department at Agrabad
Branch is trying to improve their level of satisfaction day by
day in comparison to other banks.
Conclusion The purpose of this study is to understand Foreign Exchange
dept. related rules & regulations, mechanism, modes of
financing. The study also covered some finding as well as
recommendation related with this dept.
From the learning & experience point of view I can say that I
really enjoy my internship at FSIBL from the very first day. I
am confident that this 3 months internship program at FSIBL
will definitely help me to realize my further carrier in the job
market.