Intern Report - ajoy.ASH 1510049M

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Foreign Remittance of Pubali Bank Ltd and its contribution on the Economy of Bangladesh.
Table of Contents
Chapter-1: Introduction.................................................................................................................................. 4
1.1 Background of the Study .................................................................................................................... 4
1.2 Objectives of the Study: ..................................................................................................................... 5
1.3 Scope of the Report: ........................................................................................................................... 5
1.4 Research Methodology....................................................................................................................... 5
1.5 Rationale of the Study: ....................................................................................................................... 6
1.6 Limitations of the Study: .................................................................................................................... 6
Chapter-2: ....................................................................................................................................................... 7
Theoretical Review ......................................................................................................................................... 7
2.1 What is Foreign Remittance? ............................................................................................................. 7
2.2 Importance of Foreign Remittance .................................................................................................... 7
2.3 Determinants of Foreign Remittance: ................................................................................................ 7
2.3.1 Migration stock: ............................................................................................................................. 7
2.3.2 Host Country Economic Condition: ............................................................................................... 8
2.3.3 Home Country Economic Condition: ............................................................................................. 8
2.3.4 Income Differential: ....................................................................................................................... 8
2.3.5 Dummy variables: .......................................................................................................................... 8
2.3.6 Inflation Differential: ..................................................................................................................... 9
2.3.7 Return on financial assets:............................................................................................................. 9
2.3.8 Exchange rate: ............................................................................................................................... 9
Chapter-3 ...................................................................................................................................................... 10
Literature Review ......................................................................................................................................... 10
Chapter-4: ..................................................................................................................................................... 11
Background of Pubali Bank Ltd ..................................................................................................................... 11
Department of Business Administration

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4.1 Corporate Mission and Vision .......................................................................................................... 11

4.2 Organization Hierarchy ..................................................................................................................... 12
4.3 Bank Divisions ................................................................................................................................... 13
4.4 SWOT Analysis of Pubali Bank .......................................................................................................... 13
Chapter-5: Foreign Remittance of Pubali Bank Ltd ...................................................................................... 15
5.1 Foreign Remittance Types of Pubali Bank Ltd .................................................................................. 15
5.2 Inward Remittance ........................................................................................................................... 15
5.2.1 Purpose of Inward Remittance .................................................................................................... 15
5.2.2 Source of Inward Remittance: ..................................................................................................... 16
5.2.3 Bangladesh Bank Restrictions on Inward Remittance: ................................................................ 16
5.2.4 Role of Exchange Houses in foreign Inward remittance: ............................................................ 16
5.2.5 List of Exchange Houses: ............................................................................................................. 16
5.3 Outward Remittance: ....................................................................................................................... 18
5.3.1 Purpose of Outward Remittance: ................................................................................................ 18
5.3.2 Different Types of Outward Remittances: ................................................................................... 18
5.3.3 Bangladesh Bank Restrictions on Outward Remittance: ............................................................. 21
5.4 Role of Different Institutes Considering Foreign Remittance .......................................................... 21
5.5 Mode of Foreign Inward and Outward Remittance: ........................................................................ 23
5.6 Foreign Remittance Process of PBL .................................................................................................. 23
5.6.2 Informal Channel: ........................................................................................................................ 24
5.6.3 Disadvantages of informal channel of remittance: ..................................................................... 24
5.6.4 Bangladesh Bank initiatives to bring more remittances in formal channels: .............................. 24
5.6.5 Remittance Flow in Bangladesh: ................................................................................................. 24
5.6.6 Impact of Foreign Remittance on Our Economy: ........................................................................ 25
5.6.7 Socio-Economic Impact of Remittance ........................................................................................ 26
Chapter-6: Foreign Remittance in ................................................................................................................ 27
Pubali Bank Ltd (Performance Measurement and Analysis) ........................................................................ 27
6.1. Import Position Pubali Bank Ltd as of 2019 ..................................................................................... 27
6.2 Export position of PBL as of 2019 ..................................................................................................... 28
6.3 Area wise Import and Export position of PBL -2019......................................................................... 29
6.4 Yearly Foreign Remittance Position of PBL....................................................................................... 30
6.5 Comparison of Remittance Earning with other existing commercial banks .................................... 31

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Chapter-6: Findings of the study .................................................................................................................. 32

Chapter: 7 Problems of Pubali Bank Ltd in Remittance Management System ............................................ 32
Chapter: 8 Recommendations ...................................................................................................................... 33
Chapter: 9 ..................................................................................................................................................... 33
Conclusion .................................................................................................................................................... 33
Chapter-10 .................................................................................................................................................... 34
References .................................................................................................................................................... 34

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Chapter-1: Introduction
1.1 Background of the Study
To help the Non-resident Bangladeshis for remitting their earnings to home through legal channels Wage
Earners' Scheme was initiated in 1974. That scheme soon became very popular among the Bangladeshi
migrant workers working abroad. Migrants of Bangladesh remitted some $11.8 million to their home
country in the fiscal year of 1974-75. The amount of remittance increased over $350 million in the fiscal
year of 1980-81 and $750 million in the fiscal year of 1990-91.Since then Bangladesh has been receiving
higher remittance year by year. Since the number of emigrant workers from Bangladesh has been rapidly
increased over the years, there is a significant rise in the amount of annual remittance to the country. In June,
2015 Bangladesh receives almost $15 billion remittance amount. Remittance is rising day by day as a key
force to the growth of economy and reduction in poverty in Bangladesh. In indeed, it is the second position
among the foreign currency earnings sector of Bangladesh (Bangladesh Bank, 2012).
Bangladesh is one of the largest remittance receiver among other countries in the world. It has a large number
of people working abroad as skilled, semiskilled or unskilled manpower. The Middle East countries like
Saudi Arabia, UAE, Kuwait, Qatar, Oman, Iran etc. are major countries where the workers of Bangladesh
go and work hardly for earning money. Remittance wage earners plays an important role to match the gap
of trade deficit (Import payment is higher than export receipt) of Bangladesh.
Remittances have helped to ameliorate the social and economic indicators like nutrition, living condition
and housing, education, healthcare, poverty reduction, social security, and investment activities of the
recipient households. Remittances have been playing a large role to the economic growth and the livelihoods
of people in Bangladesh. Remittance income is more valuable for any developing country like Bangladesh.
The importance of remittances has also evolved against most of the macroeconomic variables along with the
contribution to the GDP.
Remittance contributes to our national economy in a large scale by increasing foreign exchange reserve, per
capita income and employment opportunities. Bangladesh has been continuously received robust remittance
because migrant workers are working hard and earning huge money in abroad and thus the GDP (Gross
Domestic Product) of Bangladesh has been expanding. In 2016, the remittance which has sent by the migrant
workers is the 5.15 percent of the total GDP ($195 billion) of Bangladesh. With these remittances, the
government has been compensating trade deficit. The determinants of remittance include employment in
abroad, GDP growth, exchange rate and oil price. Remittance is contributing to alleviate the poverty of
Bangladesh through microenterprise development, generating substantial employment and income.
Remittance also contributes to the expansion of financial market activities such as banks and
insurance companies and the development of payment systems through enhancing direct capital flows and
distributing those funds to users end and for investment or finance consumption purposes. The government

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of Bangladesh is using remittance income to build schools, colleges, universities hospitals, roads, &
highways, bridges, culverts, etc. Remittance income is positively the socio-economic condition of migrant
families. Remittance income makes more strong local currency (Bangladesh) against US dollar.
Several banking institutes throughout Bangladesh have been contributing to help the people of this country
to these remittance from these foreign countries through their various modern technological equipment and
skilled human resources. To know more about the actual contribution of commercial named Pubali Bank
Ltd, I selected this subject among the rest other subject to conduct study. Here, i explained every related
topics and issue of the foreign remittance and tried my best to provide all relevant as required.
1.2 Objectives of the Study:

Remittance unit of Pubali Bank Ltd plays a vital role like other commercial banks in our economy.
The main objective of the study has been mentioned below:
 To find out the remittance process of Pubali Bank Ltd and to know its contribution on the
economy of Bangladesh.
Secondary objectives of this study are:
 To find out the problems of remittance income of Bangladesh; and
 To recommend some suggestions based on findings to overcome the barriers of remittance
income in Bangladesh
1.3 Scope of the Report:

The scope of this report was extended to the foreign remittance activities of Pubali Bank Limited.
In my report, I have highlighted the various steps, procedures of PBL remittance. I have also discussed
about the process and income of the PBL remittance after learning from the bank personnel. So the
scope of the report covers the specific knowledge on PBL remittance. I have tried to analyze and evaluate
of foreign remittance income of our country based on adequate information contained in documents and
articles. I have tried to show the actual impact of remittance on our economy as well as on the profit of
banking sector.
1.4 Research Methodology

This research study has been conducted and analyzed on the basis of
 Secondary data and information.
The sample period of these secondary data and information is for last 6 years. These data and
information were collected from different A-ranked journals, articles, published books, conference
proceedings, newspapers, and from last 6 years annual report of Pubali Bank Ltd. A large part of
data and information of this report was collected from the website of Bangladesh Bank, Ministry

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of Expatriates’ Welfare and Overseas Employment, Bureau of Manpower, Employment and

Training, and the World Bank.
This report mainly focused on three things. Firstly, it shows the remittance income of Bangladesh.
Secondly, it shows the impact of remittance on our economy and financial sector. At last, it
investigates and find out the opportunities and challenges of remittance income in Bangladesh.
Tabular, chart, and graphical representation have been used to properly reflect the actual data and
information.
1.5 Rationale of the Study:

As remittance is the lifeline of a country Pubali Bank Ltd should extend their remittance services
and improve the condition of the bank through remittance flows. Remittance can also increase the
profit of bank by receiving the higher remittance have done this report to show up performance of
Pubali Bank Ltd in terms of remittance and also find out the reasons why the bank is receiving
lower remittance at recent years. And the ways through which the bank overcome this problem.
1.6 Limitations of the Study:
 Difficulty in collecting some primary data because of company secrecy.

 The record system of the annual report is not efficient for related data collection.
 Lack of access to full remittance service providing process.
 Limitation of time and
 As I am still under graduation process, the thing I have explained here may not reach the
perfection level that could be possible to reach for our teacher who are more knowledgeable
than I am.

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Chapter-2:
Theoretical Review
2.1 What is Foreign Remittance?
Remittances actually refers to the transfer of funds by the migrants workers (expatriates) to their
families at home. Foreign remittance define the transfer of foreign currencies from one place/person
to another place/person. Elaborately foreign remittances refers to sale and purchase of all foreign
currencies for the purposes of Import, Export,Travel and others. Anyway, particularly Foreign
Remittance means sale and purchase of foreign currencies for the purposes except export and
import.
2.2 Importance of Foreign Remittance

In any developing countries the common problem is shortages of foreign exchange reserve which
is very essential to pay the import bills. Bangladesh is not an exceptional country but Bangladesh
depends more on remittances to meet the problem of payment of the import bills.
Remittances functions as an alternative to inefficient or nonexistent credit markets and also

promotes growth by smoothing the investment constraint. There may be positive impact of
remittances on economic growth if remittances are used for the purpose of children’s education and
welfare expenses such as health care, rehabilitation. There may be a positive impact on labor
productivity and output of the home country in the long run. A positive multiplier effects on GDP
may be occurred because of spending remittances on either consumption or real estate. Remittances
may act as an alternative way to promote investment in those countries in which there is poor
financial sector. Foreign remittance has a great impact on socio economic conditions of a
country.Banking system also makes profit through remittance and can expand its financial inclusion
program.
There may be negative impact of remittances on growth in the host country if “demonstration
effect” exist. To consume import the remittance recipients can be motivated.
2.3 Determinants of Foreign Remittance:

2.3.1 Migration stock:
It is generally supposed that there is a correlation between increase in the number of migrant
workers abroad and level of remittances. Howsoever, it is important to determine the amount of
remittance sent home by migrants on the basis of compositional features of them. Mixing
of temporary and permanent migrants is such a feature where the temporary migrants are thought

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to send higher proportion of their income. Remittance flow has been increasing from those countries
to which our country people go to earn more money. For an example, most number of migrant labor
workers are working in Saudi Arabia so the remittance flow from Saudi Arabia is higher than any
other countries in the world Other countries such as U.A.E, Oman, Malaysia etc. have also large
number of Bangladeshi migrants and so our country receives huge remittance from that countries
2.3.2 Host Country Economic Condition:

Many studies found significant relationship between host countries’ output with the flow of
remittances. At present we know that the economic condition of Saudi Arabia is not good because
of falling the price of oil and gold. Many expatriates in Saudi Arabia are not getting salaries at
proper time and many people lose their jobs because of company’s decision to reduce employees.
As a result there is a negative impact on remittance flow from Saudi Arabia. Because of
bad economic conditions many people are not willing to go to Saudi Arabia though the govt. of
K.S.A has released a large number of Visas. Expected economic condition of the labor importing
countries may raise because of existing migrant workers’ wages and creates a positive incentive on
demanding for low-cost foreign workers
2.3.3 Home Country Economic Condition:

The migrants’ home country economic condition is also regarded as one of the important
determinants of remittances of workers. An adverse economic situation in the migrants’ home
country will play a vital role in sending remittances. Adverse economic condition results in a fall
in income of a family in a home country may lead to a surge in inflow of remittances as the migrant
will send more remittance to family by working harder. In case of considering the flow of
remittances from various source countries to home country, we don’t use home country economic
activities directly in our model while we use income deferential between host and home country to
reflect the benevolence motive to remit.
2.3.4 Income Differential:

The ratio of GDP of host and home country at purchasing power parity (PPP) is used to measure
income differential between host and home country. The benefits of using this measure over other
measures are of considering for non-tradables. Valuation of non-tradeables depends on decision of
remitters because they send remittance to purchasing goods and services at home. One can dispute
that the flow of remittances has a propensity to rise during the economic downturn in home country
if the estimated coefficient of this variable is positive. Chami et al (2005) used the difference
between home and host country (US) per capita output to reflect the benevolence motive in their
empirical model. Schiopu and Siegfried (2006) used the ratio of GDP per capita in USD at PPP as
a proxy for the income differential.
2.3.5 Dummy variables:

The recent worldwide surge in the flow of workers’ remittances has been occurred because of
regulatory tightening for the terrorist attack on USA on September 11, 2001 and it’s supported by

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many surveys. Two different factors are supposed to have contributed in this regard; one is the
increase in monitoring by financial regulators on remittance service providers, which caused a shift
of remittances from informal to formal sources. Another may have resulted from the uncertainty of
deportation among undocumented migrants, inducing them to send a larger proportion of their
income.
2.3.6 Inflation Differential:

There may be increase or decrease in the flow of remittances due to higher inflation in the home
country relative to host country can. Higher inflation at home country reduces the purchasing power
of family of migrants. Therefore the migrants try to send more remittances. On the contrary, it also
represents more risk and uncertainty in the home country relative to host country. If money of
domestic country is depreciated, migrants will intend to send more remittance to home country as
the families at home country will receive more money in local currency. If money of domestic
country is appreciated, migrants will intend to send less remittance to home country as the families
at home country will receive less money in local current .
2.3.7 Return on financial assets:

The level of remittances should be correlated with the return on financial assets if remittances are
influenced by investment motive. So remittances in home country can be negatively correlated with
the host country real interest rate or positively correlated with the home country real interest rate.
Increase in real interest rate differential between home and host country should have effect on the
level of remittances, assuming equal market risk in both countries
2.3.8 Exchange rate:

Workers’ motive to send remittance is influenced by bilateral exchange rate between host and home
country. Due to exchange rate depreciation two opposing effects may arise. They are namely wealth
effect and substitution effect. Prices of goods and services reduce in the foreign currency because
of depreciation or devaluation of home currency. A remitter buys more foreign goods rather than
domestic ones due to this condition. On the contrary, the remittance sender becomes affluent as
his/her income increases in the domestic currency. Thus he is encouraged to buy more goods
(including real estates) and services in home country. The remittance flows in the home country
may temporarily increase because of depreciation but eventually it might undermine the confidence
of remitters in the economy. Meaningful depreciation of domestic currency in the floating rule also
played a key role in the current increase in workers’ remittance in the country.

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Chapter-3
Literature Review
Bangladesh is one of the leading remittance recipient countries through the export of its labor services to the
Middle East and South East Asian countries since the early 1970s. At present there are more than 7 million
Bangladeshi expatriates are working in the Middle East’s countries, Malaysia, Singapore, Korea, USA,
Canada, UK, Europe, Australia, New Zealand, etc. The number of illegal migrants should be taken into
consideration. Despite ongoing political, diplomatic crisis and economic recession in the Middle East’s
countries, United States and Europe, overseas workers of Bangladesh remitted $20.62 billion (10% growth
over the last year) in June 13, 2015 and it is a record in the country’s history. Moreover, Bangladesh has
maintained a steady 6% plus growth over most of the last10 years with the aid of strong export and remittance
growth. (REMITTANCE, F, 2015)
Remittances can help relax the budget constraint in the recipient economies and increase consumption
of both durables and nondurables. Moreover remittances can lead to higher accumulation of human capital
through allowing for education and health care, and also can lead to increased physical and financial
investment. The inflow of remittances on the macro-economy can lead to accelerated long-run growth as a
result of additional investments in physical and human capital IMF (2005).
In last few decades, the remittance amount has increased as the number of Bangladeshi migrants in world’s
other countries are increasing. Siddiqui (2003) states, Bangladesh has a long history of migration. Migration
has shaped and is still shaping Bangladeshi society showed that three quarters of sixty two (62) villages
migrating from rural areas migrate internally, and some twenty four per cent (24%) people of them can
migrate overseas (Afsar, 2004).
Transfer of remittances takes place through different methods. Forty six per cent (46%) of the total volume
of remittance has been channeled through official sources, around forty (40 %) through hundi, four point six
one per cent (4.61%) through friends and relatives, and about eight per cent (8%) of the total was hand
carried by migrant workers themselves when they visited home (Siddiqui & Abrar 2001).
Banks are the major actors in remittance transfer. On the issue of transfer of remittance the banking services
have to be made more attractive to wean clients away from hundi. Banks have to match the level of services
currently provided by the hundi operators such as cost and speed. Different steps may be undertaken to
improve the quality of services provided by the banks (Siddiqui & Abrar 2001)
Remittance service is not only used by migrants but also government uses to settle import export transactions
etc. Salim (1992) point out that remittances are used to make import payments and are used for productive
investment by the government. Ali (1981) identified overseas remittances achieving a favorable balance of
payments and as well as creating a new resources base for the country. Puri and Ritzema (2001) tell that
remittance is the portion of international migrant workers’ earnings sent back from the country of
employment to the country of origin, play a central role in the economies of many labor sending countries.
Each additional migrant worker brings in $ 816 in remittances annually, Hussain and Naeem (2009). Osmani
(2004) tells that remittances have been identified as one of the three factors that have been responsible for
reducing the overall incidence of poverty in Bangladesh. Remittance inflows increase during downturns as
emigrant workers went to provide financial support to the family members in the country of their origin

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(Sayan, 2006). Remittance inflows increase during downturns as emigrant workers went to provide financial
support to the family members in the country of their origin (Sayan, 2006).
Chapter-4:
Background of Pubali Bank Ltd
Pubali Bank Limited is the largest Commercial Bank in Private Sector in Bangladesh. It provides
mass banking services to the customers through its branch network all over the country. This Bank
has been playing a vital role in socio-economic, industrial and agricultural development as well as
in the overall economic development of the country since its inception through savings mobilization
and investment of funds. Pubali Bank limited has achieved constantly about 20% growth for the
last 6 (six) years.The Bank was initially emerged in the Banking scenario of the then East Pakistan
as Eastern.
Mercantile Bank Limited at the initiative of some Bangali entrepreneurs in the year 1959 under
Bank Companies Act 1913. After independence of Bangladesh in 1972 this Bank was nationalized
as per policy of the Government and renamed as Pubali Bank. Subsequently due to changed
circumstances this Bank was denationalized in the year 1983 as a private bank and renamed as
Pubali Bank Limited. The Government of the People’s Republic of Bangladesh handed over all
assets and liabilities of the then Pubali Bank to the Pubali Bank Limited. Since inception this Bank
has been playing a vital role in socio-economic, industrial and agricultural development as well as
in the overall economic development of the country through savings mobilization and investment
of funds. At Present, Pubali Bank is the largest private commercial bank having 465 branches and
it has the largest real time centralized online banking network.
4.1 Corporate Mission and Vision

Mission Statement
 High quality financial services with the help of the latest technology
 Fast and accurate customer service
 Balanced growth strategy
 High standard business ethics
 Steady return on shareholders' equity
 Innovative banking at a competitive price
 To review all business lines regularly and develop the Best Practices in the industry
 Working environment to be supportive of Teamwork, enabling the Employees to perform
to the very best of their abilities.
Vision Statement
Providing customer centric lifelong banking service.

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4.2 Organization Hierarchy

Chairman
↓
Board of Directors
↓
Managing Director
↓
Additional Managing Director
↓
Deputy Managing Directors
↓
General Manager
↓
Deputy General Manager
↓
Assistant General Manager
↓
Senior Principle Officer
↓
Principle Officer
↓
Senior Officer
↓
Officer
↓
Junior Officer

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4.3 Bank Divisions

 Board Division & MD's Secretariat
 Human Resources Division
 Establishment Division
 Law Division
 International Division
 Credit Division
 Credit Administration, Monitoring & Recovery Division
 Consumers Credit Division
 Central Accounts Division
 ICT Operation Division
 Software Development Division
 Lease Financing Division
 Compliance Division
4.4 SWOT Analysis of Pubali Bank

Each and every organization should be aware of their strengths, weaknesses, opportunities and
threats. This analysis is known as SWOT analysis. The central purpose of SWOT analysis is to
identify strategies that fit or match a company’s resources and capabilities according to the demand
of environment in which company operates. So the strategic alternatives generated by a SWOT
analysis should be built on company’s strengths in order to exploit opportunities and counter threats
and to correct weaknesses.
SWOT analysis explains environment of an organization in two broad ways. They are:
a) Internal Environment Analysis: It includes strengths and weaknesses.
b) External Environment Analysis: It includes opportunities and threats
During my internship period in Pubali Bank I have found some aspects relating to the Bank’s
strengths, opportunities, weaknesses and threats, which I think, affect the bank’s performance.
These are given below:
Strengths
 As a large bank, it has qualified and experienced manpower.

 Branch location is suitable for business.
 Bank’s assets position is quite satisfactory and now there is no fund crisis.
 Bank has requisite wealth to sustain in the various challenges of market economy.

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Weakness
 As many employers retired from the bank, there is a crisis for manpower in the bank.
 Bureaucrat official process hampered the daily internal workflow.
 Lack of motivation for the workers.
 Low salary structure for the employees.
 In some cases management-employee relation is not good.
Opportunities
 Expansion of new investment areas.

 Scope for automation will open a big door of opportunity.
 The bank undertakes need-based training program.
Threats
 Newly developed privatized and foreign banks.

 Facing a great competition with other commercial banks and financial institutions.
 Loan recovery systems are very weak.
 Policies are not practiced properly.

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Chapter-5: Foreign Remittance of Pubali Bank Ltd
5.1 Foreign Remittance Types of Pubali Bank Ltd

According to the Foreign Exchange Regulation Act, 1947 and guidelines for Foreign Exchange
Transactions, Bangladesh Bank has classified all foreign remittances into two broad categories:
1. Inward remittance
2. Outward remittance
5.2 Inward Remittance

Inward remittance takes place when our country receives remittance from foreign countries. In
details, foreign inward remittance means the remittance of freely convertible foreign currencies that
we receive from foreign countries against which the permitted dealers make payment in local
currency to the beneficiaries. The ways of receiving inward remittances are draft, mail transfer, TT,
export bills, travelers’ cheques and foreign bills. A local bank receives specific commission for
providing inward remittance service.
5.2.1 Purpose of Inward Remittance

Remittances are being sent from abroad for the following purposes:-
 Family maintenance
 Indenting Commission
 Recruiting Agents Commission
 Realization of Export Proceeds
 Donation

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 Gift
 Export broker’s Commission etc.
5.2.2 Source of Inward Remittance:
The ways through which remittance comes in our country are mentioned below:
 Expatriate Bangladeshis.
 Exporters.
 Visitors.
5.2.3 Bangladesh Bank Restrictions on Inward Remittance:

 Any amount can be sent as remittance by the remitters.
 The beneficiary must fill and sign in Form ‘C’ (Appendix 5/6) for above US$5000
mentioning the purpose of remittance.
 If any incoming passenger bring more than US $5000, the fact must be declared to the
custom TAND he remittance is for gift, donation, and permission to be obtained from
respective ministry/authority.
All banks have to report to Bangladesh Bank about total foreign exchanges of each month on inward
remittances through statements along with schedules before a stipulated date.
5.2.4 Role of Exchange Houses in foreign Inward remittance:

Exchange houses offer a wide range of services from Demand Drafts (DD) to instant credit facilities. They
facilitate easy access for customers by delivering products. Exchange houses are extensively used for
remittances from UAE. Unlike the banking channel this channel is based on Vostro accounts I.e. accounts
maintained by exchange houses with various banks in beneficiary countries. These accounts are prefunded
by exchange houses.
5.2.5 List of Exchange Houses:

The list of exchange houses of Pubali Bank Ltd has been mentioned below with their geographical position.
At present total number of exchange houses of Pubali Bank Ltd is 54 (Bank 12 and
Exchange houses 42)
Table 03: List of exchange houses.
Name of exchange houses/bank. Geographical location
 Bahrain Financing Company

 Dalil Exchange

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 Zenj Exchange Co. W.L.L.

 Nation Finance Exchange CO,
 Bahrain
 Hamdan Exchange
 Bahrain
 Daulat Enterprise Inc. Canada
 Al-rajhi Bank
 Al Rajhi Commercial Foreign Exchange
 Bank Al-Jazira , K.S.A. Al Amoudi Exchange Company
 National Commercial Bank
 Arab National Bank
 Bank Al Bilad
 Al. Jamil Exchange Co.
 K.S.A.
 Al Mulla International Exchange Co. W.L.L.
 Al Muzaini Exchange Co. K.S.C.C.
 Al Moosa Exchange Company W.L.L.
 Bahrain Exchange Company W.L.L
 City International Exchange Co. W.L.L.
 Dollarco Exchange Co. Ltd.
 Kuwait Bahrain International Ex. Co. W.L.L.
 National Money Exchange Co. W.L.L.
 Oman Exchange Company Ltd.
 U.A.E. Exchange Centre W.L.L.
 Kuwait
 May Bank
 Ime (M) Sdn.Bhd
 Nbl Sdn Malaysia
 Malaysia
 28 Bank Muscat S.A.O.G.)
 Gulf Overseas Exchange Co. L.L.C.
 National Bank Of Oman
 Oman International Exchange L.L.C.
 Oman & Uae Exchange Centre & Co. L.L.C.
 Oman
 Eastern Exchange Eastablishment
 Trust Exchange Company W.L.L.
 Al Dar For Exchange Works
 Arabian Exchange Qatar
 Indian Bank
 Balaka Exchange Pte Ltd
 Singapore
 Eastern Union Remittance & Exchange Ltd.
 British Arab Commercial Bank, U.K.

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 Al Ansari Exchange
 Habib Exchange Co. L.L.C.
 Mashreq Bank Psc
 Al Rostamani International Exchange Company.
5.3 Outward Remittance:

Outward foreign remittance occurs when our country remits currency to foreign countries. In details,
Outward remittance means selling of foreign currency by the authorized dealers or formal channels. It must
be assured by the authorized dealers that foreign currencies are remitted and used only for the right purpose.
Outward remittance can be done by appropriate method to the country to which remittance facility is
authorized by Bangladesh Bank.
5.3.1 Purpose of Outward Remittance:

 To settle Import Payment.
 To meet Travel Expenses/Medical Expenses/Educational Expenses etc.
5.3.2 Different Types of Outward Remittances:

A) Private Remittance
B) Official & Business Travel related Remittance
C) Commercial Remittance
A) Private Remittance:
 Family remittance facility:
Expatriates working in Bangladesh with the approval of the Government Bangladeshi migrant worker
can remit 75% of their net income through an Authorized Dealer (to the country of their origin). They can
also remit 100% of their leave salary as savings and pension benefits, without the prior approval of
Bangladesh Bank. Here net income indicates the gross income of the applicant less all mandatory deductions
of income tax, provident fund and pension fund, house rent and others of a fixed nature. (FE Circular No.06,
April 15, 2013)
Moderate amounts of remittance for maintaining family members of abroad (spouse, children, parents)
are permitted by BB on written request supported by certificates/required documents from the related
country.
 Membership fee and registration fee:
Authorized Dealer (AD) may remit for membership fee and registration fee to professional/scientific
institutions without prior approval of Bangladesh Bank. They can also remit fees for application, registration,
admission, examination (TOEFL, SAT etc.) so that students can admit into foreign educational institutions
on the basis of written application from the related foreign institution showing the amount that will be
remitted. Such remittances should be paid directly to the related institution through draft/TT etc. and the
transaction should be reported to the BB backed by Form TM in the usual monthly return.

19
 Education:
Bangladesh Bank approval is required to release foreign exchange for the students at school level in foreign
countries to support their education expenditures. Besides, ADs can release remittances for Bangladesh
students to admit and study in regular courses. Undergraduate, post graduate and language courses are pre-
requisite for bachelor degree & professional diploma/certificate in recognized institutions in foreign
countries subject to verification of bona fides according to the following conditions.
Application duly filled in;

 The educational institution issue original and photocopy of admission letter on behalf ofthe student
(such as US institutions require I-20);
 The concerned educational institution issue original and photocopy of estimated annual tuition fee,
board and lodging, incidental expenses etc.
The applicant need to attest copies of educational certificates.
 Valid passport is required.
 The facility of purchasing of foreign exchange/remittance will not be allowed for more one academic
year at a time;
 The current progress report and current estimated costs of the educational institution should be taken
into consideration for releasing of foreign exchange subsequent each time.
 The ADs will keep individual file for each student with all relevant papers in readiness for inspection
of BB officials
Remittance of consular fees:
Foreign embassies in Bangladesh collect consular fees and deposit in a Taka Account maintained with an
AD for remitting consular fees to foreign countries without prior approval of Bangladesh Bank. The AD
needs to submit report of such remittance in the usual monthly returns along with the relevant TM Form to
Bangladesh.
 Travel:
Bangladeshi adult nationals can visit to SAARC member countries and Myanmar and other countries under
the annual travel quota contract at maximum $5000 or equivalent $7000 respectively during a calendar year.
The minors (below 12 years age) can avail the facility of applicable quota for half amount than adults’ fee.
But, cash amount in foreign exchange must not surpass $3000 per person for per trip.

20
ADs should ensure the following conditions at the time of releasing foreign exchange for travel purposes:
 The willing traveler is a client of Authorized Dealer bank (AD bank)

 The willing traveler is well known to the authorized dealer bank.
 The AD bank must be satisfied about the authenticity of the application;
 The willing traveler must possess a confirmed air ticket (if needed) for the journey;
 The released amount is endorsed on the passport and air ticket of the traveler with irremovable ink,
signature and name of the authorized dealer branch inscribed in the passport and ticket.
 Health/Medical
Without prior approval of Bangladesh Bank, ADs may release up to $ 10,000 as remittance for medical
treatment in foreign countries on the basis of the recommendation of the medical board/specialist fixed by
the Health Directorate and the cost estimation of the foreign medical institutions. The AD must submit
documents to BB (foreign exchange operation dept.) if the releasing amount of remittance exceeding $10000
to support treatment in foreign countries. And the supporting documents will be verified by Bangladesh
Bank to justify the authenticity of the expenses.
 Seminars and workshops:
ADs may release remittance to the participants of private sectors up to $200 per day for SAARC member
countries or Myanmar and $250 per day for other countries without prior approval of Bangladesh Bank.
 Foreign nationals:
The ADs may issue Transaction Currency to foreign nationals limitlessly and foreign currency notes up to
$2000 per person against submitting of equal amounts in foreign currencies. However, the TCs and foreign
currency notes should be released only on origin of a ticket for a country outside Bangladesh and the issued
amount should be endorsed on the concerned passports.
 Remittance for Hajj:
Each year Government of Bangladesh announces the scale at which foreign exchange will be issued to
willing pilgrims to perform Hajj. It should be ensured that release of foreign exchange will be made as per
instructions (issued by BB each year).
B) Official and Business Travel Related Remittance:
Business travel for new exporters:

New exporters are allowed to carry up to $6,000 and ADs may issue this amount without prior
approval of Bangladesh Bank on the basis of the recommendation letter from EPB (Export

21
Promotion Bureau). Bangladesh Bank will grant more than $6000 requirements after considering
the applications submitted by ADs with supporting documents.
Business travel quota for importers and non-exporters:

Importers carry business travel quota such as annual upper limit of $5000 and non-exporting
producers have a quota of 1% of their imports/turnover settled during the previous year/declared
in their tax returns.
Retention Quota of Exporters:

Merchandise exporters may retain up to 50% of repatriated FOB (Free On Board) value of their
exports in foreign currency accounts (for garments exporters, the quota is 10%) may use for
business. Through this amount they can visit abroad, participate in export fairs, attend at seminars,
office maintenance abroad, and import of raw materials.
5.3.3 Bangladesh Bank Restrictions on Outward Remittance:
 An application on prescribed form must be submitted to an AD or Bangladesh Bank
wherever necessary for purchasing of foreign currency.
 The prescribed application form will be according to Form IMP (Appendix 5/11) and for
other types of remittances Form TM (Appendix 5/5, Chap.5, Sec.1, Para-2) for payments
against imports in to Bangladesh.
 Ads must use TM form for reporting even if the remittance is approved by Bangladesh
 Bank in any other manner. For example: issuing a special permit.
 The ADs may affect the sale of foreign exchange if they have the empowerment to
approve the application after receiving receipt of the application in the prescribed form.
 AD should forward the form to the Bangladesh Bank for consideration if the transaction
requires prior approval of the Bangladesh Bank.
5.4 Role of Different Institutes Considering Foreign Remittance

 Ministry of Finance:
Ministry of Finance (MoF) is a government body that works with state budget, taxation and
economic policy. This major policy making body is related to banking and remittance. Macro-
economic policies that affect exchange rate, monetary and fiscal mechanisms, foreign exchange
reserve etc. are regulated by this ministry.
 Bangladesh Bank:

22
Among other powers and functions, BB regulates scheduled bank activities, acts as a clearing-
house, retain foreign exchange reserves and monitors floating exchange rate mechanism in the
current accounts. Bangladesh Bank exhorts the nationalized and private banks to connect with
foreign banks and exchange houses in the enlisted countries. It has an isolated department for
regulating and monitoring remittance entitled Foreign.
 Exchange Policy Department (FEPD):
This department also plays an important role to foreign remittance sector. This department mainly
generates, analyses, interprets and distributes data on inflow of remittance. It provides update
information about remittance with proper description and showing also positive and negative trends
in remittance.
 Nationalized Commercial Banks (NCBs):
Nationalized Commercial Banks (NCBs) of Bangladesh make direct banking facilities available
at the doorsteps of Bangladeshi emigrants specially in those countries where a large number of
Bangladeshis are employed. Four NCBs are deeply involved in remittance transfer. These are Pubali
Bank, Janata Bank, Agrani Bank and Pubali Bank Ltd. Within these four NCBs have more than
5000 branches. Through them they can disburse remittances even in distant areas. Besides their
own branches, NCBs have opened exchange houses in joint collaboration with different banks and
financial institutions in different countries of the world.
 Private Commercial Banks
Private Commercial Banks (PCBs) are also involved in remittance transfer. Of the PCBs, Islami
Bank of Bangladesh Ltd (IBBL) has been found to be most proactive in the area of migrants’
remittance. National Bank, International Finance and Investment Corporation (IFIC), Prime Bank
and Uttara Bank are other private banks involved in remittance transfer. Most of their activities are
in the Middle East. Saudi Arabia is the major working area of Islami Bank along with Qatar, Bahrain
and UAE.

23
5.5 Mode of Foreign Inward and Outward Remittance:

The following are the mode of Inward/Outward Remittances:
 TT (Telegraphic Transfer): An electronic method of transferring funds; it’s utilized
primarily for overseas wire transactions. These transfers are used most commonly in
reference to CHAPS (Clearing House Automated Payment System)
 MT (Mail Transfer): This mode is used when you wish to transfer money from your
account in Center 'A' to either your own account in Center 'B' or to somebody else's
account. In this mode of transfer, you are required to fill in an application form similar to the
one for DD, sign a charge slip or give a cheque for the amount to be transferred plus exchange
and collect a receipt.
 FD (Foreign Drafts): A bank draft which is drawn on a financial institution in the country of
currency. It can be purchased at commercial banks and usually have a fee depending on the
institution and the type of account you hold.
 PO (Payment Order): It refers to a directive to a bank or other financial institution from a bank
account holder instructing the bank to make a payment or series of payments to a third party
via paper and/or electronic means.
 TC (Travelers Cheque): A traveler's cheque is a medium of exchange that can be used in place
of hard currency.
 EFT (Electronic Fund Transfer): EFT is the electronic transfer of money from one bank account to
another, either within a single financial institution or across multiple institutions, via computer based
systems, without the direct intervention of bank staff.
5.6 Foreign Remittance Process of PBL

Remitting process refers to a process through which fund is transferred from one country to another
country. For example, a local bank has 300 domestic branches. The bank has corresponding relationship
with a foreign bank say “Global Bank”, and maintaining “Nostro Account” in US $ with the bank.
Bangladeshi expatriates are sending foreign remittances to their local beneficiary through that account. Now,
when the Bangladeshi expatriates remit the money through other banks of different countries to their
“Remittance Account” with “Global Bank”, then the international division of Head Office of the local bank
will receive telex message and the remittance section of the local bank will record the advice and originate
the advice letter to the respective branch of the bank. The branch will first decode the test, verify signature
and check the account number and name of the beneficiary. The branch transfers the amount to the account
of the beneficiary after being fully satisfied and intimates the beneficiary accordingly. But sometimes
the complexity arises, if the respective local bank has no branch where the beneficiary maintains his account.
Then the local bank has to take help of a third bank who has branch there.
5.6.1 Formal Channel:

Fund transfer from one country to another country through official channels, i.e. banking channel, post
office, and other private service channels, such as- Western money order, Neno money order etc.
The legitimate purposes for moving money abroad through formal channel are;
 To invest
 To lend

24
 To meet trading/ Personal obligation

 To safeguard assets against theft or seizure by repressive regimes.
5.6.2 Informal Channel:

It’s an unofficial channel for fund transferring from one country to another country through hand or over
telephone such as “Hundy”. Haque (1992) remarked that remittance collected by informal “Hundy” rings
operating in Middle East counties and UK are also used to finance illegal trade and transactions.
Islam (2000) observes that as informal channel is needed for illegal trade of goods, as well as gold and drug
into Bangladesh, and therefore, helping the ever-present problem of capital flight out of Bangladesh.
The reasons behind using informal channel for moving money from abroad are as follows:-
 The majority of the Bangladeshi remitters are unskilled laborers. As these laborers are
 poorly educated, they often prefer informal channels to avert difficulties in formal channel.
 Costs of informal channels are about 45 percent of formal costs.
 Highly trust based, inexpensive, speedy, accessible and a convenient way of transferring funds.
 Strong incentive to use IMTS if the official exchange rate is overvalued.
 The weaknesses in conventional financial systems, such as high costs, poor or
 Unavailable service and lack of access
 Dealing in arms & ammunition
 Drug trafficking
 Financial terrorist activities
 Evasion of exchange regulations/ control
 Evasion of taxation
 Disguise or remove proceeds of threat/ fraud/ bribe
 Making blackmail payments
 Paying ransom for kidnappers.
5.6.3 Disadvantages of informal channel of remittance:

 Financial inclusion is not extended.
 Contribution to GDP decreases.
 Contribution to banking sector decreases.
 Per Capita income is not actually represented due to informal remittance transactions.
5.6.4 Bangladesh Bank initiatives to bring more remittances in formal channels:

 Allowing banks to tie up with NGOs to render faster delivery of remittances to beneficiaries.
 Automated banking payment system has been launched to provide better services to clients.
 Attracting new entrants, including new banks, card companies such as VISA and various
entrepreneurs and non- government organizations (NGOs) to provide remittance facility to make the
remittance market competitive.
 Increasing the number of exchange houses to receive more remittance in formal channel. Sending
remittance over mobile phone (currently launched by Bkash) to home country.
5.6.5 Remittance Flow in Bangladesh:

Remittance flow in Bangladesh has been increasing year by year. Now Bangladesh is one of the
best remittance receiving countries among the developing countries. The economic, micro

25
economic and socio economic conditions are improving year by year because of receiving
increasing remittance. Economic experts of Bangladesh, column writers in newspapers, have
expected the remittance flow might be decreased because of reduction in oil prices and gold
which are the main contributing properties of some middle-east countries where a large number
of Bangladeshi migrants are working abroad.
5.6.6 Impact of Foreign Remittance on Our Economy:

The contribution of foreign remittance rising of living standard cannot be described so easily. So
the importance of foreign remittance in the economy of Bangladesh is widely recognized and
requires little reiteration
 Impact on GDP:
The Gross Domestic Product (GDP) is one of the main exponents used to get a perception about
the health of a country's economy. It is determined with the total dollar value of all goods and
services produced over a specific time period. GDP is calculated as:
GDP = private consumption + gross investment + government investment + government spending

+ (exports - imports).
Remittance has a great impact on our economy. We know that the increase in consumer spending
in our economy increases GDP. Increase in foreign remittance has been gradually boosting our
GDP (Gross Domestic Product).
 Impact of remittance on consumption:
Remittance flow to our country has changed the life of the families of migrants. Now they can admit
their children to private schools and can afford nutrition food and can also bear the treatment cost
of family members. Therefore increase in remittance increase the consumption of goods by people
of the country due to increase in the level of income of country people.
 Increase savings:
Foreign remittance has increased the level of income of country people. Now can save money after
their expenditures. Therefore the remittance received by our country people is saved in different
banks by making short term or long term deposit.
 Increase capital:

26
A big source of capital in different banks is comprised because of savings by the local people whose
relatives are sending remittance from different developed countries. This huge amount of money is
investing is different project by the bank to make profit.
 Impact of remittance on investment:
Foreign remittance is increasing the investment of our country. The remittance is using for small
and big investment in different project, establishing firm or industry, small or big shop which
increases the proper utilization of money.
 Increase employment:
Many people of country have been moving to developed countries to earn extra money. As a result
the unemployed people gets job in foreign countries and unemployment rate decreases and
employment increases. As the investment increase, the employments of our country also increase.
The people of our country are getting jobs in different project, firm or industries.
 Impact of remittance on import:
It has a negative impact on our economy too. By increasing remittance, it also increases
consumption of foreign product. It increases import of foreign products. People have enough money
to buy foreign product, although government is trying to save our domestic companies by
implementing necessary rules and regulation. Thus the domestic markets lose profit because of
selling less products.
5.6.7 Socio-Economic Impact of Remittance

Remittance has a great impact on our socio economic factors. Remittance flows have changed the
scenario of the socio economic condition of our country by adding the income and consumption
level of immigrant workers’ family. Now rural areas people are building Houses like urban areas’
people.They send their children to private school and college. They use high configured smartphone
with internet connection and LED TV. They live like urban areas people. The scenario of the
economy of society has been changed only because of remittance. Remittance has the following
impacts on our socio-economic condition:
 The economic development of the country is ensured by improving the economic condition
of the migrants through remittance.
 Unskilled and illiterate people of rural areas can contribute to the development of society.
 It improves the ability of investment for self-employment and entrepreneurship.
 Hotel, traveling, transportation and other businesses get momentum in the country
for movement of migrant workers.

27
 The financial capability and purchasing power of the migrant workers have been
enhancing.
 The migrant workers are being conscious about cleanliness, hygienic environment, and
necessity of literacy, discipline, and standard of living.
 Technological advancement in migrant workers.
 Migrant workers family members get involved with banks and other financial institutions.
 Now rural people wants to use gas facility without using chimney because they have the
ability to pay utility bills.
 At present rural people get the financial services and remittance through banking agents and
mobile banking services. So they need not to go to town for financial services.
Chapter-6: Foreign Remittance in

Pubali Bank Ltd (Performance Measurement and Analysis)
6.1. Import Position Pubali Bank Ltd as of 2019
Import (BDT in Million)

180000
162773
155714
160000
141670
140000
121852
120000 112564
97517
100000
80000
60000
40000
20000
0
2014 2015 2016 2017 2018 2019
Year
This chart shows an increasing growth of import through PBL indicating the more reliance on import rather
than export. This is the sign of lower production and GDP. More emphasize must be given to improve the
national production of goods and services to lower the import. Government, Financial and other regulatory
authorities must be come forward to work hand in hand to assist in the growth of production activity. Import
activities are necessary for the country like ours which are continuously developing the infrastructural
surrounding the state for improving their development activities and production activities for being able to

28
the future exporter. Such activities must be structure in a structured and planned way thinking the major
future benefits of the people of the state.
6.2 Export position of PBL as of 2019
Export (BDT in Million)

140000
120000 130434
100000
104862
96128
80000 85740 86764
77071
60000
40000
20000
0
2014 2015 2016 2017 2018 2019
Year
Export position of Bangladesh is increasing gradually though there are many internal and external constraints
in the economy of Bangladesh. But this trend must be geared up as early as possible to make the economy
of Bangladesh the strongest one because there is no alternative left without it to robust the economy of
Bangladesh. Such increasing trend ensures the growth of GDP and can improve the condition of poor of the
poorest. The prior condition of the improvement of export activities is to develop of infrastructure of a state.
Improving the export activities is an urgent issue of a country like ours because without sufficient export
activities the balance of trade will be negative that is really adverse for a country like ours. So, banking
institute should come forward to facilitating the export activities in all possible way that they can

29
6.3 Area wise Import and Export position of PBL -2019
REGION WISE EXPORT AND IMPORT POSITION -

2019
Import Export
1399
1241
BDT IN CRORE
849
295
239
204
183
166
156
104
83
68
51
48
37
34
22
14
10
8
5
2
0
0
0
0
AXIS TITLE
Area wise export and import position indicates that Narayanganj is doing a balanced export and import
comparing with the other region. Besides, Central Dhaka, North and South Dhaka are doing well in this
perspective. More initiatives need to be taken to improve the present scenarios of the less developed region
to increase their exports and imports. This growth is crucial for Bangladesh right now as Bangladesh is
heading toward the goal of achieving the status of developing country which required sufficient
infrastructures throughout country to facilitate the export and import activities.

30
6.4 Yearly Foreign Remittance Position of PBL
Foreign Remittance(BDT in Million)
43542 43807 43683
40565
37757
36593
2014 2015 2016 2017 2018 2019
Year
The above chart shows that after a robust growth in the foreign remittance earning, there are two massive
falls in 2016 and 2017 which may be due to the decrease in the price of oil and changing the legal criteria in
the Middle East countries. But after such falls, the remittance earnings started to go up from 2018 to 2019
which is surely a good sign.

31
6.5 Comparison of Remittance Earning with other existing commercial banks

as of 2019.
Foreign Remittance( BDT in Million)

60000
50000
50454
48423 47312
40000 43683 42354
40921
30000
20000
10000
0
Dutch Bangla Islami Bank Ltd Exim Bank Ltd Pubali Bank Ltd United Citi Bank NA
Bank Ltd Commercial Bank
Ltd
This comparative chart shows Islami Bank Ltd, Dutch Bangla Bank Ltd and Exim Bank Ltd are the highest
remittance earner compare to the Pubali Bank Ltd. But the remittance earning of the Pubali Bank LTD is
higher than that of the United Commercial Bank and Citi Bank N.A.
These analyses give us a clear indication that overall foreign remittance earning is not much rich compare
to other banking institutions. So, required measures must be taken as early as possible to bring about changes
in the policies of foreign remittance sector.

32
Chapter-6: Findings of the study
Findings are given below:
 Pubali Bank remittance flow in percentage of total remittance has been decreasing due to some
reasons. The following reasons are mainly liable for decreasing the performance of Pubali Bank in
terms of receiving remittance:
 Many newly emerged private commercial banks are receiving remittance from foreign countries.
 Inefficiency of remittance unit of Pubali Bank Ltd.
 Late payment of remittance amount to the beneficiaries.
 Less careful about the remittance services.
 Higher cost of remitting money by the expatriates.
 Providing lower quality of remittance services.
 Internal corruption news of Pubali Bank discourages the expatriates to send money through PBL.
 Illiterate family members are unwilling to go to bank to receive remittance because they think it’s
burdensome than informal channel.
 In informal channel the family members of migrant receives more money than the banking system
and rural area people feel insecure to go to banks rather they receive remittance through hundi (a
most popular informal channel)
 Majority of migrants are unskilled and uneducated and so they fear to send remittance through bank
by facing difficulties.
Chapter: 7 Problems of Pubali Bank Ltd in Remittance Management

System
There are many problems in Pubali Bank remittance management system and these are affecting the
smooth and profitable operation of remittance activities. The problems are mentioned below:
 Lack of efficient employees.

 Lack of better internet facility.
 Lack of effective management system.
 Lack of data processing system.
 Lack of IT specialized.
 Lack of security.
 Lack of proper monitoring activities.
 Lack of reporting in timely manner.
 Vulnerable software with having bugs.
 Sometimes the central sever gets too slow that data base system does not work.
 Old technological devices disturbs and gets hanged frequently

33
Chapter: 8
Recommendations
As the remittance unit of Pubali Bank Ltd is playing a vital role to our economy and financial development.
So the bank need to improve its remittance receiving facility. Following recommendation can be followed:
They need to recruit specialized and qualified employees for remittance unit. They need to upgrade
their devices through which they perform remittance operations.
They need to improve their central server capacity and also improve the data base management
system so that the server does not get slow at the time working.
They should ensure the security of the RMS+ (software) and also solve the lagging and bugs
problems of the software. Charging less for proving remittance facility in comparison to other banks.
They should use the back cover screen on the monitor of computers so that employees do not face
the problem of eye burn and headache.
They should make the payment of remittance amount as early as possible.
Chapter: 9
Conclusion
In the internship period I have learnt about the operations of remittance unit of Pubali Bank Ltd. As a largest
state owned commercial bank, Pubali Bank Ltd has been receiving huge amount of remittance. But the
amount of remittance receiving by the bank has not been expectedly increasing year by year because of their
some weaknesses. The bank can contribute more to the economy of our country as well as financial
development in terms of remittance. The bank can raise its profit by receiving higher remittance. The bank
need to provide better remittance facility so that they can receive higher remittance comparatively than other
banks in Bangladesh. Moreover the bank must show excellence in remittance area to successfully compete
with other govt. and private banks.

34
Chapter-10
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Report
Annual report of Pubali Bank – 2018

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1

Department of Business Administration

4.1 Corporate Mission and Vision .......................................................................................................... 11

Department of Business Administration

Chapter-6: Findings of the study .................................................................................................................. 32

Department of Business Administration

Department of Business Administration

1.2 Objectives of the Study:

1.3 Scope of the Report:

1.4 Research Methodology

Department of Business Administration

of Expatriates’ Welfare and Overseas Employment, Bureau of Manpower, Employment and

1.5 Rationale of the Study:

1.6 Limitations of the Study:

 Difficulty in collecting some primary data because of company secrecy.

Department of Business Administration

2.2 Importance of Foreign Remittance

Remittances functions as an alternative to inefficient or nonexistent credit markets and also

2.3 Determinants of Foreign Remittance:

Department of Business Administration

2.3.2 Host Country Economic Condition:

2.3.3 Home Country Economic Condition:

2.3.4 Income Differential:

2.3.5 Dummy variables:

Department of Business Administration

2.3.6 Inflation Differential:

2.3.7 Return on financial assets:

2.3.8 Exchange rate:

Department of Business Administration

Department of Business Administration

4.1 Corporate Mission and Vision

Providing customer centric lifelong banking service.

Department of Business Administration

4.2 Organization Hierarchy

Department of Business Administration

4.3 Bank Divisions

4.4 SWOT Analysis of Pubali Bank

 As a large bank, it has qualified and experienced manpower.

Department of Business Administration

 Expansion of new investment areas.

 Newly developed privatized and foreign banks.

Department of Business Administration

Chapter-5: Foreign Remittance of Pubali Bank Ltd

5.1 Foreign Remittance Types of Pubali Bank Ltd

5.2 Inward Remittance

5.2.1 Purpose of Inward Remittance

Department of Business Administration

5.2.3 Bangladesh Bank Restrictions on Inward Remittance:

5.2.4 Role of Exchange Houses in foreign Inward remittance:

5.2.5 List of Exchange Houses:

Exchange houses 42)

Table 03: List of exchange houses.

Name of exchange houses/bank. Geographical location

 Bahrain Financing Company

Department of Business Administration

 Zenj Exchange Co. W.L.L.

Department of Business Administration

5.3 Outward Remittance:

5.3.1 Purpose of Outward Remittance:

5.3.2 Different Types of Outward Remittances:

B) Official & Business Travel related Remittance

 Family remittance facility: