Professional Documents
Culture Documents
Bank Asia
Bank Asia
INTRODUCTION
2
1.1 Origin of the Report
The internship report is a basic requirement for the BBA program. The
proposed topic is
General Banking & Trade Financial Activities of Bank Asia Limited. The topic is as
signed by
Mr. S.M. Arifuzzaman, Senior Lecturer, Department of Business Administra
tion, East West
University, Dhaka.
1.2 Objectives of the study:
The objectives are generally two types. One is broad objective. And another is s
pecific objective.
1.2.1 Broad Objectives:
The Board Objective of this studys to focus on the main activities of
General Banking
Department that is Cash, Accounts, Customer service etc & Trade Financ
ial activities of
Bank
Asia Limited, MCB Banani Branch and also to know the process and the
problems which they
are facing in every stage.
1.2.2 Specific objectives:
The Specific Objectives are as follows:
To explore the activities of General Banking & Foreign Trade department.
To acquire knowledge about foreign exchange department.
To acquire knowledge about general banking activities.
To analyze the total process of letter of credit according to the bank.
To identify different General Banking services available in Bank Asia Limited.
To access the efficiency of the customer service desk.
To assess the overall performance of the banks Foreign Exchange Department.
To know details of Foreign Exchange procedure in Bank Asia Limited
3
1.3 Scope of the Study
This report consists of the writers observation and on the job experiences during
the internship
period in MCB Banani Branch, Bank Asia. The report mainly emphasizes
the sequential
activities involved in customer service, cash, credit and investment ap
proval process & Trade
and financial actions used by Bank Asia. The report also focuses on
the financial analysis,
performance efficiency of the customer service desk, problems faced by
GB and foreign trade
department, comparative growth rate and overall performance analysis of
Bank Asia Limited.
Finally the report incorporates an evaluation of the different aspects
and monitoring techniques
and findings problems and makes some recommendations.
1.4 Limitations of the study
Because Of Short Period of time, and huge working pressure in the br
anch I could not find
enough time to make my report more informative and creative but still
I tried my level best to
cover all the departments where I have worked in this three months,
and tried to focus all the
functions/problems/activities I have came aware of; while working in Banani bran
ch as an intern.
CHAPTER: TWO
BANK ASIA LIMITED (COMPANY PROFILE)
5
2.1 Historical Background: Bank Asia Limited:
Bank Asia has been launched by a group of successful entrepreneurs with recogniz
ed standing in
the society. The management of the Bank consists of a team led by senior bankers
with decades
of experience in national and international markets. The senior managem
7
2.3 Mission:
To assist in bringing high quality service to our customers and to
participate in the
growth and expansion of our national economy.
To set high standards of integrity and bring total satisfaction to our clients
, shareholders
and employees.
To become the most sought after bank in the country, rendering tech
nology driven
innovative services by our dedicated team of professionals.
2.4 Vision:
Bank Asias vision is to have a poverty free Bangladesh in course of
a generation in the new
millennium, reflecting the national dream. Our vision is to build a society wher
e human dignity
and human rights receive the highest consideration along with reduction of pover
ty.
2.5 Core Values:
Place customers interest and satisfaction as first priority and provid
e customize banking
products and services.
Value addition to the stakeholders through attaining excellence in banking oper
ation.
Maintain high ethical standards and transparency in dealings.
Be a compliant institution through adhering to all regulatory requirements.
Contribute significantly for the betterment of the society.
8
2.6 Code of Conduct:
Employees must be open and loyal to the bank and banks interest.
Employees must keep confidential all banks and other matters that cou
ld provide other
third parties unauthorized access to confidential information.
Employees must observe the banks security requirements concealing access to elec
tronic
resources and documents.
All information and communication with the media, the public and fina
ncial markets
shall be reliable and correct, maintain high professional and ethical
standards and in
accordance established guidelines and regulations.
Customers shall be met with insight, respect and understanding. Employees must
always
try to fulfill the needs of the customer in the best possible manner, within the
guidelines
for corporate ethics and regulations.
Under no circumstances, employees shall or be a part of any activity that prohi
bits open
and fair competition of Bank Asia in breach of relevant business laws.
Employees shall never offer or accept illegal or inappropriate gifts or other r
emuneration
in order to achieve business or personal advantages.
Employees engagement in external duties must not affect his/her working
relationship
with Bank Asia or come into conflict with Bank Asias business interest.
Should an employee become aware of an infringement of Bank Asias rule
s and
guidelines, he/she should blow whistle raising the issue to the line
management or to
Human Resource Department.
(Annual Report 2013, Bank Asia)
9
2.7
Mr.
Mr.
Mr.
Ms.
Mr.
Mr.
Ms.
Ms.
Board of Directors:
A Rouf Chowdhury, Chairman
A M Nurul Islam, Vice Chairman
Mohammed Lakiotullah, Vice Chairman
Hosneara Sinha, Director
Mohd. Safwan Choudhury, Director
Rumee A Hossain, Director
Farhana Haq Chowdhury, Director
Naheed Akhter Sinha, Director
Mr.
Mr.
Mr.
Mr.
Ms.
Mr.
Figure-1: Corporate Structure of Bank Asia (Annual Report 2013, Bank Asia)
2.10 Salient features of Bank Asia:
Only Bangladeshi Bank to acquire operations of two foreign banks
o Bank of Nova Scotia of Canada
o Muslim Commercial Bank of Pakistan.
Majority stake holder of ERA INFOTECH (A joint Venture IT Company).
Centralized Trade Services Operation
o Facilitates Export/ Import and Inward and Outward Remittance for non-AD Branc
hes.
Central Clearing -Fully Automated.
Online & ATM Charges - Free.
ATM Booth- 48 & E-Cash Booth- 125.
24 Hours Call Centre for customer service.
Member- Dhaka Stock Exchange (DSE) & Commenced Capital Market Operations (Share
Trading).
Internet & Mobile Banking
SME Banking
Consumer Banking
Islamic Banking
Green Banking
11
2.11 Product & Services of Bank Asia (In a Nutshell)
(Source: Annual Report 2013, Bank Asia)
2.11.1 Business Banking
Overdraft
Secured Overdraft
Secured OD (Earnest Money)
Working Capital Finance
Loan against Trust Receipt
Loan against Cash Incentives
Bill Discounting
Loan Syndication and Structured Finance
Packing Credit
Demand Loan
Demand Loan (Work Order)
Time Loan
Transport Loan
Lease Finance
Letter of Guarantee
Letter of Credit
Back to Back Letter of Credit
2.11.2 Credit card
Master Card Local (Gold & Silver)
Visa Local (Gold & Classic)
Visa Dual Currency Credit Card (Gold & Classic): Local and foreign currency in
same
plastic.
Visa Card against RFCD, RQ A/c
12
Visa Mini
Virtual Card
SME Credit Card
Lanka Bangla Card Cheque: To make payments where the customer cannot make
payment through cards like house rent, education fees etc.
13
2.11.3 Small and Medium Enterprise (SME)
Sachondo Product Features:
SL Product
Name
Nature Maximum Loan
Tenor
Interest
Rate
Loan Type
1 Subidha unsecured trading 3 years 16% Equal Monthly
Installment
2 Sristi unsecured manufacturing 3 years 16% Equal Monthly
Installment
3 Sofol unsecured service 3 years 16% Equal Monthly
Installment
4 Sondhi secured trading 5 years 15% Equal Monthly
Installment
5 Sombridhi secured manufacturing 5 years 15% Equal Monthly
Installment
6 Seba secured service 5 years 15% Equal Monthly
Installment
Overdraft Features:
7 Somadhan Trading Manufacturing
Service
14
Interest rate may be revised by Corporate Office/
to time and
charges & commissions may be relaxed by Corporate
performance with our Bank or other Bank.
2.11.4 Deposit Accounts:
Saving Account
Current Account
Short notice Deposit
Fixed Term Deposit
Foreign Currency Account
Deposit Pension Scheme
Monthly Benefit Scheme
Double Benefit Scheme: Doubles your deposit in
Triple Benefit Scheme: Triples your deposit in
Bank Asia Sanchoy Plus
2.11.5 Treasury
Money Market
Overnight Call
Repo and Reverse Repo
Swap
Sale and Purchase of treasury Bill & Bond
Term Placement
Term Borrowing
Foreign Exchange
Spot
Forward
Interbank Buy/Sell
7 years.
11 years.
15
2.11.6 Consumer Finance
Auto Loan
Consumer Durable Loan
House Finance
Loan for Professionals
Senior Citizen Support
2.11.7 Internet Banking
Connect Asia
Bank Asia symbolizes modern banking with innovative services in Bangladesh. We p
rovide
Online Banking, ATM Support, SMS and Net Banking Services in the country. Our ne
wly
developed web application is fully authentic, secured and robust. This technolog
y based services
also provide you Fund Transfer through internet, Debit/Credit Card facility, fre
e SMS message
of special type of withdrawal from your account time to time.
On-line Banking:
All branches under online banking system will be able to do banking practices us
ing a common
server (which is centralized) from where only the branches will be able to enter
using a common
password
Internet Banking Services
Check account balance
Take print out of account statement for a particular period
Transfer fund within your own account
Make payment of mobile phone bill
Recharge your mobile phone as well as others from your account
Enquire foreign exchange rate
Enquire currency exchange rates.
Acquire information on all our products.
Every transaction report will be sent to clients e-mail account.
16
Can change the password, pin code and respective mobile number (For All Mobile
Operator's).
How to Use Internet Banking
Go to: www.bankasia.net
Insert User ID
Insert PIN Code
Click "Sign in" Button
2.11.8 Islamic Banking
Deposit Products
Mudaraba Saving Account
Al-Wadiah Current Account
Mudaraba Special notice Deposit
Mudaraba Term Deposit
Mudaraba Hajj savings Scheme
Mudaraba Deposit Pension Scheme
Mudaraba Monthly Profit Paying Deposit Scheme
Smart Junior Saver
Investment Products
Bai Murabaha Muajjal
Hire Purchase Shirkatul Melk
Musharaka
Quard against accepted Bills
17
2.11.9 Off-shore Banking Unit (OBU) Products
On-shore Bill Discounting through OBU
Bill Discounting
Capital Finance
Working Capital Finance
Trade Finance
2.11.10 Services
ATM
Remittance
Locker Service
Online banking
Internet Banking
Phone Banking
Mobile Banking
SWIFT
Centralized Trade
Travellers Cheque
Student File
2.11.11 Capital Market Operation
Brokerage operation
Margin Loan
18
2.12 Financial Performance of Bank Asia (Last 5 Years):
Table 2: Balance Sheet Matrix Of Bank Asia; As per Annual Report 2
013 (Figures in Million taka)
Table 3: Income Statement Matrix, Annual Report 2013 (Million Taka)
20
Operating Profit Ratios 2013 2012 2011 2010 2009
Credit Deposit Ratio 78.59% 83.89% 87.06% 92.06% 91.67%
Cost of Deposit 8.81% 9.49% 9.09% 7.15% 8.97%
Administrative Cost 2.63% 2.82% 2.88% 2.08% 2.76%
Yield on loans &
advances
14.99% 15.20% 14.11% 12.72% 13.95%
Spread 6.18% 5.71% 5.02% 5.57% 4.98%
ROA 0.96% 0.70% 1.72% 2.22% 2.18%
ROE 10.55% 7.11% 19.61% 32.12% 32.03%
Table 6: Operating Profit Ratios of Bank Asia, Annual Report 2013
Performance Ratios 2013 2012 2011 2010 2009
150000
200000
2009 2010 2011 2012 2013
Total Assets (Million Taka)
0
50000
100000
150000
2009 2010 2011 2012 2013
Total Deposit (Million Taka)
0
20000
40000
60000
80000
100000
120000
2009 2010 2011 2012 2013
Advances
23
CHAPTER: THREE
25
3.0 Project Part:
I have been joined as an intern of Bank Asia Limited (Banani Bran
ch) from the month
of 9th January 2014. The working criteria and my main duty and responsibility i
s to know and
support my colleagues in their day to day workplace and the whole environment is
much more co
operative and helpful with me which encourage me to familiar with the environme
nt. Everyone
tried to make me understand what to do, when to do and how to handle this and ho
w these works
being done. My working department basically which I have been placed in the
general banking
department & foreign trade department. In My report I mainly focused
on the general banking
activities & trade financial activities of Bank Asia, MCB banani branch.
3.1 General Banking:
General banking is the starting point of all the banking operations. It is
the department which
provides day-to-day services to the customers. Every day it receives deposits fr
om the customers
and meets their demand for cash by honoring cheques. It opens new accounts, remi
t funds, issues
bank drafts and pay orders etc. Since bank is confined to provide the services e
very day, general
is also known as retail banking.
Bank Asia Ltd. is providing modern banking facilities to the customer. It is com
mitted to fulfill
every possible customer need with high efficiency and satisfaction. Its
team of dedicated
professionals is committed to provide an unparalleled service and to bring maxim
um benefits for
the customers, the shareholders and the society at large. Its a great
pleasure of Bank Asia to
introduce following services.
In general banking department Bank Asia Limited is divided into severa
l parts.
They are as
follows:
1. Cash
2. Account Opening
3. Accounts
4. Reception
5. Customer service
26
As I was in the customer service desk, so I will mainly focus the
dealings of customer service
desk of Bank Asia, banana branch.
3.2 Accepting Deposits
Bank Asia Limited accepts the deposits like other banks m
ay be classified into:
1) Demand Deposits :
These deposits are withdrawn able without notification e
.g. current deposits bank
Asia Limited accepts demand through the opening of a) Current account b) Savin
gs account
2) Time Deposits:
Time deposits are payable at a fixed date of after
period of notice. Bank Asia
Limited accepts time deposits through fixed deposits receipt (FRD), sho
rt term deposit (STD).
While accepting these deposits a contract is made between the bank and the custo
mer.
In customer service section, I have seen first and then I have opened the follow
ing accounts:
Savings Bank (SB) Account.
Current Deposit (CD) Account.
DPS.
FDR.
3.3 Procedure for opening of accounts
1) I have seen that the customer service officer wants to
er the customer has an
introducer or not (the introducer must be an account holder
bank or an officer of the
bank who is authorized to sign on behalf of the bank). If
the officer gives him/her an
Account Opening Form along with Specimen Signature Card and
he customers are
filling up the form appropriately and submit the form with essential
know wheth
with the
yes then
requests t
documents.
27
2) Then the customers submit the account opening form with the following documen
ts:
Two copies passport size photographs of the applicant attested by the
introducer name
and one copy passport size photograph of the nominee attested by the applicant n
ame.
Signature Card duly singed by the applicant name and his/her signature.
A/c opening form appropriately filled up.
28
3.4 Other Services of Customer Service Desk:
a) ATM Service: If any customer wants to have an ATM card, at first he/she need
s to fill
up a form. This is known as ATM request form. The ATM issue charge
is Tk.345.00
where Tk.300.00 is the card charge and Tk.45.00 VAT is taken to issue the ATM ca
rd.
Using stealer the customer service officer request for the card. After the reque
st it takes
around 5 to 7 working days to get the card in the branch. Then customer service
officer
call the customer and give the card to the customer after verifying
the signature using
the stealer. After providing the card to the customer, it takes 12 or maximum 24
hours to
activate.
b) Solvency Certificate: If any customer wants to have a solvency then he/she m
ust have
good transaction volume and minimum Tk.1, 00,000.00 balance in the acc
ount. The
Solvency issue charge is Tk.230.00 where Tk.200.00 is the issuance cha
rge and
Tk.30.00 is taken as VAT.
c) Statement Certificate: If any customer ask for a statement, custome
r service officer
provide the statement right way. But before that customer needs to fi
ll up a statement
request form, mentioning from which date to which date he/she needs t
he statement?
After that the service officer provides that statement to the customer. All the
statements
are system generated and Bank Asia Limited do not require any sign o
r date to verify
these statements but the will provide the sill of the bank with the branch name
in each of
the statement page. The statement charge is Tk.58.00 per page, where Tk.50 is ch
arged
as the service charge and Tk.8.00 as VAT.
d) DPS: To start a DPS account a customer must have a saving accoun
t at first. After
having that saving account the customer can start a DPS account. Actu
ally, the DPS
account is linked with the saving account, for this a customer must
need to start the
saving account first. The DPS opening date is 1
st
to 10
th
day of every month. The DPS
rate is Bank Asia Limited is from 11.20% to 11.87%. It will vary de
pending on the
tenure of the DPS. Bank Asia Limited has DPS of minimum 3 years and the maximum
29
length is 12 years. A customer can give the DPS amount any time during a month.
But,
from 1
st
to 10
th
of every month there is no additional charge. If a customer unable to pay
the DPS amount within 10
th
of that month then he/she needs to pay TK.50.00 extra as
penalty charge.
e) FDR: A customer can open a FDR any time in the bank during the working hour.
But, at
1
st
he/she needs to fill up an individual form. The customer must provi
de the nominee
picture, signature and other required document properly to have an FDR account.
Bank
Asia Limited has different FDR rate for different tenure. Most popular
FDR is for the
months and the rate of interest is 9.8%. Bank Asia Limited offer aut
o renewal system,
that means if any customer does not want to withdraw the interest am
ount it will be
renewed with the interest amount for the next time. Bank Asia Limited
also provides
double benefit scheme. Any amount is double within 5 years and 6 mon
ths. But for an
individual minimum amount should be Tk.1, 00,000.00 and maximum amount
can be
Tk.40, 00,000.00.
f) Pay-order: Pay-order is one of the most essential services of Bank
Asia Limited. In a
working day around 20 to 30 pay-order is being issued. If any customer wants to
issue a
pay order he/she needs to fill up a pay order form.
After that, t
he pay-order is issued
using the stealer system. Then customer officer write that pay-order m
anually. For
Tk.1.00 to up to Tk.2, 00,000.00 the pay-order service charge is Tk.5
8.00 where
Tk.50.00 is taken as pay-order charge and Tk.8.00 as VAT. And from T
k.2, 00,001.00
up to any amount the pay-order charge is Tk.87.00 where Tk.75.00 is
taken as charge
and Tk12.00 as VAT.
g) Fund Transfer/ Cheque transfer: Using a form or cheque a customer can transf
er the
balance to another account he/she wants to. In each day around 15 to
20 transaction
occurs where customer wants to transfer the fund. The customer uses t
hese services to
maximize the business and to minimize the time by not travelling far.
30
h) Salary: In Stealer there is a section named batch. Doing batch transaction s
alary is being
posted to the particular account. The customer service officer needs t
o be extra careful
while giving a salary. The officer basically check the name, account number and
amount
then post the salary to a particular account. There are around 50 large companie
s provide
salaries to their staffs using Bank Asia Ltd, MCB Banani Branch.
i) Cheque Request: When a customer is short of cheque book leaves th
ey can easily fill
up the form which is given with every cheque book issue and ask for
a new cheque
book.
Bank Asia Limited; provide 2 different types of books. One ty
pe of books
contains 10 leaves and another contains 25 leaves. For 10 leaves Tk.3
5.00 is charged
and for 25 leaves, Tk. 87.00 is being charged.
Those are among the most common services that I was able to see while working in
Bank Asia
Limited, MCB Banani Branch. I must admit there customer service department is ve
ry efficient,
prompt and dedicated. There customer service officers are always keen to give
proper attention
to the customer. That is why they are able to retain smooth growth in every year
. There officers
are very friendly, always willing to keep close relationship with the entire cus
tomer. I was really
lucky that I could see their service and also I was a part of thei
r customer service team. This
department helped me a lot to learn how to deal with an individual. It helped me
to build up the
self confidence; I will need to work in any work place. I believe in myself now.
Though it seems
it is so tough to meet the expected expectation of the customer, I am sure; I wi
ll be able meet that
level and I will be able to handle such a work load that I saw almost every day
while working in
Bank Asia Limited.
31
3.5 Trade Financial Activities (Foreign Trade Department):
Foreign exchange is an important department of Bank Asia Limited, whic
h deals with import,
export and foreign remittances. Foreign Exchange is an International Department
of the Bank. It
facilitates international trade through its various modes of services. It bridge
s between importers
and exporters. This department mainly deals in foreign currency, thats
why it is called foreign
exchange department.
Foreign trade department plays an important role for bank Asia as well
as it contributes in
the growth of our national economy. Like other departments of Bank A
sia Limited
also gives emphasis on smooth and quick service for this particular department.
Foreign trade consists of export and import of goods and services from a country
. It is an integral
part and parcel of foreign exchange. It refers business performed by
the buyer and seller
participating from different country holds distinctive cultural values,
normative beliefs and
ideology. Some country has special advantage to produce certain items
while other country
possesses dearth of facility.
Foreign Trade includes:
Import
Export
Trade Finance is the science that describes the management of money,
banking, credit,
investments and assets for international trade transactions. Trade Finan
ce enables credit worthy
businesses to fund purchases from suppliers (particularly wholesalers, d
istributors and
manufacturers.)
The institutions or transaction involved in the financing of internatio
33
34
3.5.4 Tasks which are performed here
The following things are done in this department:
Total supervision of Import Department (Cash/Back to Back L/C)
Foreign Correspondence related to above
Payment of Back-to-Back L/C and endorsement of Export L/C against payment
Follow-up of Back-to-Back overdue bills
Correspondence regarding Back-to-Back L/C and Cash L/C
Maintenance of Due Date Diary
Maintenance & record of related L/C Documents
Audit Compliance
Matching of Bill of Entry with IMP
follow-up of pending Bill of Entry Quarterly Statement
Batch Checking
Checking lodgment, retirement of Import documents under Back-to-Back L/C
Issuance of Shipping Guarantee (Back to Back L/C)
IMP Form Fill-up (Cash L/C)
Inform negotiating Bank about maturity date of Back-to-Back L/C
Maintenance & Record of related L/C (s) & Documents
Credit Report
Preparation of monthly foreign exchange business position
L/C Lodgment (Cash)
Checking of Cash L/C documents
Differed Payment (Cash)
Follow-up of outstanding BLC
35
3.5.5 Export
Pre-shipment advance
Purchase of foreign bills
Export guaranties
Advising/ Confirming letter of credit
Advance against bills for collection.
goods, the overseas bank releases the documents (including the B/L). So, the
importer now has
the Bill of Lading and so has control over the goods. So, they can claim the goo
ds. The overseas
bank will only release the document of title (in this case a bill of lading) onl
y when the importer
has paid for the consignment (or has agreed to pay by accepting a t
erm bill). So, in a
documentary collection, the exporter instructs the overseas bank to Obta
in payments from the
importer (or for a term bill, an agreement to pay) then release the document.
37
Importer Sale/Purchase
Contract
Exporter
7. Presents
Document
s
5. Makes
payment by
negotiating
documents
3. Advises
or confirm
the L/C
1. Apply
in
writing
to issue
L/C
8. Makes
Payment
against
Documents
2. Issue
L/C
4. Submits
Documents
Issuing Bank
Advising/
Negotiating
Bank
6. Forward
Document
s
Reimbursing Bank
Reimbursement
Claim
Reimbursement
Instruction
Importer
Sale/Purchase
Contract
Exporter
Figure: Graphical representation of trading Procedure.
38
3.5.10 Documentation Letter of Credit (Imp/Exp Documentation)
Documentary letter of credit is such kinds of commercial letter which a bank iss
ue on behalf of
foreign seller (exporter) according to the direction of the (importers) purchase
rs. The documents
shown under are known as export documents from the importer's 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. The payment for th
e goods is received by the
seller through the medium of a bill of exchange drawn on the buyer for the amoun
t depending on
the contract. It is a negotiable instrument. There are five main part
ies involved in a bill of
exchange. They are:(a) Drawer
(b) Drawee
(c) Payee
(d) Endorser
(e) Endorsee
(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 do
cument on receipt from the
exporter that the importer takes possession of the goods from the car
rying vessel at the port of
destination.
(iii) Airway bill / Railway receipt: When goods to be transported are small in b
ulk 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 th
e carriage of the
goods Airways bill / Railway receipt take place of Bill of lading depending on t
he nature of the
carrier.
(iv) Commercial invoice: It is the seller's bill for the merchandise.
It contains a description of
goods, the price per unit at a particular location, total value of the goods, pa
cking 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 fo
rm. The invoice is
made out by the seller under his signature in the name of the buyer and must b
e submitted in a
39
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, and airways. The
insurance is the
responsibility of the buyers (consignee) under FAS, FOB and C&F contra
cts and of the seller
(consignor) under CIF contract. The policy must be of the type as sp
ecified 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 recogniz
ed authority in exporting
country certifying the country of origin of the goods. It is usually by the Cham
bers of commerce.
Sometimes, it is certified by local consul or Trade Representative of the import
ing country as per
terms of the credit.
(vii) Packing list : The exporter must prepare an accurate packing list showing
item by item, the
41
Advising /Notifying Bank
Advising notifying Bank is the bank through which the L/C is advised
to the exporter. It is a
bank situated usually in the exporting country and it may be a branch of th
e opening bank or a
correspondent bank. It may also assume the role of confirming and /or
negotiating bank
depending upon the conditions of the credit.
Confirming Bank
Confirming bank is a bank, which adds its confirmation to the credit, and it is
42
3.5.12 How the L/C is Open
The following steps are followed while a L/C is opened:
a contract and issue a PI (Performa Invoice) before a
letter of credit has been issued.
have to use his credit lines.
redit that is channeled through its overseas correspondent
bank, known as the advising bank.
credit.
other documents from relevant parties. All these documents will be sent to his b
anker, which is
acting as the negotiating bank.
such case, he obtains payment immediately upon presentation of document
s. If not, the
documents will be sent to the issuing bank for payment or on an app
roval basis as in the next
step.
Documents are sent to the issuing bank (or reimbursing bank, which is a bank nom
inated by
the issuing bank to honor reimbursement from negotiating bank) for reimbursement
or payment.
dition that the
documents comply with the letter of credit terms and conditions.
or against the latters trust receipt facility.
f goods upon presentation of the transport (usually shipping)
documents.
43
of
1.
2.
3.
4.
5.
credit:
Issuing.
Advising
Amendment (if necessary)
Presentation and
Settlement.
44
CHAPTER: FOUR
45
SWOT Analysis Summary:
STRENGTH
-Trustworthy image among public
-Brand image.
-Strong network of Branches.
-Reputed as a good employer
-Devotion to IT and technology.
-Creating and sustaining effective
leadership.
-Learning organization.
WEAKNESS
-Less market share.
-Criticism with customer service in
branches.
-Lack of segment oriented offering.
-Poor advertising and promotions:
-Lack of Co-ordination between Central and
-Branch Office employees.
-Criticism of poor ATM Service.
OPPORTUNI TY
-E-commerce.
-Introduce special credit cards for
privileged clients.
-Establish remote financial kiosk.
THREAT
-Economic downturn.
-Decline in value of Taka.
-Increased competition.
-Upcomig Political Unrest.
-Increased government regulation may
increase cost or reduce profit.
SWOT
46
CHAPTER: FIVE
Lessons Learned From the Internship
Program
47
Chapter Five: (LESSONS LEARNED FROM THE INTERNSHIP PROGRAM)
5.1. Implications to Organization/Company Based Affiliation
The software and make it user friendly so that the software could run easily an
d the user
can work swiftly within short period of time. Therefore, the management needs to
notice
this particular problem faced by the employees, otherwise everyone will have to
suffer.
I just learn how to communicate to each other. Because there is lot
s of pressure in the
work side.
It has been a three months period of time I spend with this bank
and learned many
working criteria of banking sector like how to deal with the customers, how to o
pen the
account of an individual or of a firm. My main focus was the Trade Finance Depar
tment
where I have worked and prepared my report based on this area.
The customers are the main part of any kind of banking sector. To
assess their mind is
very tough for the banking people. Because the customers try to find the best se
rvice and
they will go that bank which are provided lots extra facilities. So
I learned that how to
assess the customers mind.
Microsoft Office 2003 and Microsoft Office 2007 are the most useful of all. MS
Word and MS
Excel are two most important soft-wares for the overall database and documentati
on process. And
In my 3 month internee period I just learn lots of excel and word related work.
And this skill can
help me in my future work.
5.2. Implications to Universitys Internship Program
An implication to universitys internship program is to build a good re
49
CHAPTER: SIX
Recommendation
50
6.0 Recommendation:
I have observed some important operational activities of the bank. On the basis
of my inspection
I would like to recommend the following suggestionThough the performance of general customer service is good, and their
employees are
well trained but shortage of employees and lack of space, employees c
annot provide
better service to the customer. So the authority ensuring this facilit
y to provide good
customer service, which will bring efficiency of the banks operation
Make a good relationship or respect to the other employee
Should increase the number of ATM booth. And also ATM processing system should
be
improve.
The loan approve process should be easier that the clients can feel convenient
to take loan
from the bank.
IT division must be developed.
Should increase the space inside the branch especially in the cash c
ounter & customer
service.
Bank should introduce more promotional programs for the customers.
Conduct quarterly or half-yearly economic analysis of existing industri
es of the country
to point out profitable sectors to invest this analysis will help to
create a separate
investment portfolio for the bank.
Introduce a special yearly bonus for achieving the target set by the bank.
Target will be
set by senior authority based on the overall condition of the market.
This bonus will
motivate employees to give more of their effort, which will possibly become frui
tful for
the bank.
51
CHAPTER: SEVEN
Conclusion
52
7.0 Conclusion:
Bank Asia Limited is one of the most successful bank of our country. In this rep
ort an honest attempt is
made to describe the General banking & Trade financial activities of
Bank Asia Limited.
I did my
internship program in Bank Asia Limited, Banani Branch. Here, I have got an over
all knowledge
about the bank operation, but my main focus was in General Banking &
Foreign Exchange
Department. Internship program is very important for every BBA student
because it helps to
make real life experience in the business world. And Also it enhances the self c
onfidence of the
student which will help him/her to survive in the competitive corporate world in
the future. I am
greatly indebted to all the three departments: General Banking departme
nt, Trade Finance
Department and Credit department of MCB Banani Branch for their contin
uous support and
inspiration during the period of Internship.
53
References
www.bankasia-bd.com (Official website of Bank Asia Limited)
Bank Asia Limited, Annual Report 2013
Corporate Outlook- September 30, 2013 (www.bankasia-bd.com)
http://www.bankasia-bd.com
http://www.bankasia-bd.com/home/vision
http://www.bankasia-bd.com/home/sme_banking
http://www.bankasia-bd.com/home/retail_banking
http://www.bankasia-bd.com/home/soc
http://www.bankasia-bd.com/home/branch