Internship ReportOnFunctions of Foreign Exchange of Jamuna Bank Limited (JBL)

Submitted By: Tazizur Rahman ID: 01-18 Batch: First

Submitted To: Md. Abul Kashem Assistant Professor

Date of Submission:

Department of Management Information SystemsFaculty of Business StudiesUniversity of Dhaka

Letter of SubmissionDate: August19, 2010

Md. Abul KashemAssistant ProfessorDepartment Of Management Information Systems (MIS)University of Dhaka

Subject: Submission of internship report.

Dear Sir,

This is to inform you that I have completed my internship report on the topic Functions of foreign exchange of Jamuna Bank Ltd of Bangladesh. I have completed my internship attachment period with Jamuna Bank Ltd. Preparing this report, I have collected information from all available sources in the most realistic and professional way.

In writing this report, I have followed the instructions of my organization while at the same time consulting my institute supervisor. I have endeavored to the utmost potential and limited constraints to project the report as reflective as possible. I earnestly hope that this report will meet your specification would be delighted to furnish you with any clarification if required.

Thanks and Regards

Yours Truly

-------------------------------

(Tazizur Rahman) BBA program (1th Batch)Roll no.01-18Department of Management Information SystemsUniversity of Dhaka

DECLARATION

I affirm that the Internship Report titled Functions of Foreign exchange of Jamuna Bank Limited(JBL) being submitted for the internship part of BBA program is the original work carried out by me. It has not formed the part of any other reports submitted as internship report either in this or any other University.

Thanks and Regards Yours Truly

-------------------------------(Tazizur Rahman) BBA program (1th Batch) Roll no.01-18

I certify that the declaration made above by the candidate is true.

Md. Abul KashemAssistant ProfessorDepartment of Management Information SystemsUniversity of Dhaka

Supervisors CertificationThe Internship ReportOf Tazizur RahmanTitle as

Functions of Foreign Exchange of Jamuna Bank Limited (JBL)

Is approved and accepted in quality form.

Md. Abul KashemAssistant ProfessorDepartment of Management Information SystemsUniversity of Dhaka

Acknowledgement

Successful completion of any work needs inspiration, guidance, and financial and logical help from others. My study is not behind this theme. In preparing this report, different persons have extended their helping hands to me. It would have not been possible for me to prepare this report without their help. I am very much fortunate to get the sincere guidance and supervision from a number experienced persons.

First of all, I would like to express my indebtedness and deep sense of gratitude to my honorable supervisor Asstt. Professor Md.Abul Kashem, Department of Management Information Systems, University of Dhaka, whose scholastic supervision, kind and whole hearted guidance, warm advice and encouragement have enabled me to prepare this report.

I am indebted to The Senior Assistant Vice President and Manager Md. Masudur Rahman of Motijheel Branch of Jamuna Bank Limited help to do my internship. I also like to thank all officers of Motijheel Branch for giving me suggestions and facilitating my internship report.

I would like to convey my thanks to all other officers for their valuable suggestions and contributions that have helped me much in preparing this report.

I am grateful specially, with Sumon Kumer, Mahbubur Rahman, Md. Anisur Rahman who are helped me to prepare this report by providing necessary data and information.

. Tazizur RahmanBBA Programs (1th batch)Roll: 01-18 Department of Management Information Systems University of Dhaka

Executive Summary

At present around 60 private Commercial Banks are operating in Bangladesh. Jamuna Bank Limited is one of the leading third-generation banks in Bangladesh. Jamuna Bank Limited began its journey on 3rd June 2001 under the companies Act, 1994. Jamuna Bank Limited concludes all types of commercial banking activities. The core business of the bank comprises of working capital finance, project finance, deposit banking, import, export and corporate finance. The bank is also rendering personal (consumer) credit, services related to local and foreign remittances. The banks strategy is to gradually cover the total arena of banking.

Jamuna Bank Limited is highly capitalized new generation Bank with an Authorized Capital and Paid- up Capital of Tk 1600.00 million and Tk 390.00 million respectively. Currently the Bank has 57 branches. More branches are planned to be opened soon.

Foreign Exchange department operates the imports and exports section. It informs the customer how to open L/C for exporting and importing goods and provide different types of L/C, Import, and Export Form to the customer. With the aim of providing efficient and reliable remittance facility through banking channel to nonresident Bangladeshi, JBL is always trying to increase its remittance business all over the world. JBL is trying to make a broad based remittance arrangement with various reputed exchange houses.

General banking department performs the core function of bank operates the day to day transaction. It deals with Account opening section, Check Clearing, Cash, Remittance and account section. Credit department of this bank handles the Lease items, lease period, Lease deposit, Credit policy and strategies etc. It informs the customer about its procedures of sanctioning credit and others.

Jamuna Bank Limited has a strong management consisting of a number of experienced and skill officials. A group of devoted and well- trained employees and working hard to render the best service to the clients. The unattractive salary structure of the bank has been a major problem for JBL throughout these years. Limited work force and lack of marketing activities have also hampered the operations of JBL.

If the management of JBL can overcome the drawbacks and come- up with effective marketing and financial strategies, Jamuna Bank Limited will soon turn into a leading Private Commercial Bank in Bangladesh.

Chapter-1: Introduction

1.1 Rationale of the Study As an indispensable part of BBA program, Department of Management Information Systems, University of Dhaka, all the students have to undergo an internship program of three months duration in any organization with a view to acquiring practical knowledge. Theoretical Knowledge is not enough for a business student. There is a gap between the theoretical knowledge and practical knowledge. Our internship program has been launched mainly to bridge the gap. Under this program the students are required to write report based on observation and experiences during the course of work. I was assigned to Jamuna Bank Limited at Motijheel Branch to complete the program. This report is an outcome of a study on Functions of Foreign Exchange of a Commercial Bank Limited. I was rotated more or less all the desks of JBL at Motijheel Branch to learn their day to day activities.

Jamuna Bank Limited is the third generation market leader in banking sector in Bangladesh. The company offers students the perfect opportunity to gain on-the-job experience by supporting and guiding them during their internship program in many business areas. After all they know that todays students can be tomorrows most efficient employees. Through internship students become aware of organizational culture and learn how to show professional excellence to a great extent. This learning helps them when they finally enter into practical field.

1.2 Objectives of the study

BBA program is designed to produce banking executives who are capable to handle 21st century banking. So, as a student of this program, we must have to know what is happening in practice. So one may feel difficulty if he does not know what is happening in bank. To eradicate this shortcoming, every student of the program is placed in banks after the completion of theory. Most precisely we can identify the objectives of this report as follows: To apply theoretical knowledge in the practical field. To observe the functions of general banking section. To have exposure to the functions of credit section. To have exposure to the functions of foreign exchange section. To observe the working environment in commercial bank. To study the existing overall banker customer relationship. Finding formal channels. Analysis the trend of foreign remittance through formal channel. Money laundering activities. Problems of informal channels. Importance of formal channels. Finding the ways to increase foreign remittance in Bangladesh.

1.3 Research Methodology

The methodology of this report is totally different from many reports. I have emphasized on the practical observation. Almost the entire consists of my practical observation. While preparing the report, I have taken from two sources:-

Area of Study:My project was Banking Activities of General, Foreign Trade & Credit Department of JAMUNA Bank Limited with Special Reference to Motijheel Branch.

Primary Sources: Primary sources include interviews and conversation with officers and executives of the bank of different divisions and department.

Secondary Sources:Secondary sources of information include annual report, internet, general report, investment manual, general banking manual, foreign exchange manual, Banking related Books, selected books journals and other publication etc.

1.4 Organization of the Report

The sequence in which the internship report materials are arranged and bound just as follows:

1. Cover Page & Title Page2. Letter of Submission2. Declaration3. Supervisors Certification 4. Acknowledgement5. Executive Summery5. Table of Contents7. List of Table8. List of Figures10. Chapters11. References12. Appendices

1.5 Limitation of the Study

There were some problems while I doing internship. A wholehearted effort was applied to conduct the internship and to bring a reliable and fruitful result. In spite of having the wholehearted effort, there exit some limitations, which acted as a barrier to conduct the program. The limitations were:-

a. Sometimes I was assigned to do some jobs without explaining why this work is to be done. This situation has created a lot of problems to understand why a specific function is being performed.

b. Another problem is concerned with data collection. JBL starts from 1999 , so there are shortage of sufficient data for comparing. Moreover, the bank has supplied me the annual report only for one year.c. Another problem is time constraint. 45 days are not sufficient time to prepare a complete internship report.

Chapter-2: Description of the Organization

2.1 About the Bank

Jamuna Bank Limited (JBL) is a Banking Company registered under the Companies Act, 1994 with its Head Office at Printers Building (2nd & 8th Floor), 5, Rajuk Avenue, Dhaka-1000. The Bank started its operation from 3rd June 2001.

Jamuna Bank Limited is a highly capitalized new generation Bank with an Authorized Capital and Paid-up Capital of Tk.1600.00 million and Tk.390.00 million respectively. Currently the Bank has 50 branches, 3 SME branches & 1 SME center.

The Bank undertakes all types of banking transactions to support the development of trade and commerce of the country. JBL's services are also available for the entrepreneurs to set up new ventures and BMRE of industrial units.

Jamuna Bank Ltd., the only Bengali named new generation private commercialBank was established by a group of winning local entrepreneurs conceiving an idea of creating a model banking institution with different outlook to offer the valued customers, a comprehensive range of financial services and innovative products for sustainable mutual growth and prosperity. The sponsors are reputed personalities in the field of trade, commerce and industries.

The Bank is being managed and operated by a group of highly educated and professional team with diversified experience in finance and banking. The Management of the bank constantly focuses on understanding and anticipating customers needs. The scenario of banking business is changing day by day, so the bank's responsibility is to device strategy and new products to cope with the changing environment. Jamuna Bank Ltd. has already achieved tremendous progress within only two years. The bank has already ranked as one of the quality service providers & is known for its reputation.

Jamuna Bank offersdifferent types of Corporate and Personal Banking Services involving all segments of the society within the purview ofrules and regulations laid down by the Central Bank and other regulatory authorities.2.2 Board of Directors

Chairman1 Al-Haj Md. Rezaul Karim AnsariVice Chairman2. Gazi Golam MurtozaDirectors3. Al-Haj M. A. Khayer4. Engr. Md. Atiqur Rahman 5.Engr. A.K.M Mosharraf Hussain6. Fazlur Rahman7. Golam Dastagir Gazi Bir Protik8. AL-Haj Nur Mohmmed9. Md. Tajul Islam10. Sakhawat Abu Khair Mohammad11. Md. Belel Hossain12. Md. Sirajul Islam Varosha13. Md. Mohmadul Hoque14. Farhad Ahmed Akand 15.Shaheen Mahmud16.Kanutosh Majumder17.Md. Ismail Hossain Siraj18.A.S.M Abdul Halim(Independent Dirtector)SponsorsMr. Md. Irshad KarimManaging Director & CEO Md. Motior Rahman

2.3 JBLs Vision, Mission & Corporate Strategy

Vision

To become a Leading Banking Institution by playing a significant role in the development of the country.

MissionThe Bank is committed to satisfy diverse needs of its customers through an array of Products at a competitive price by using state of the art technology and providing timely service so that a suitable growth, reasonable return and contribution to the development of the country can be ensured with a motivated and professional work-force.

Corporate Strategy Employees of JBL share certain common values, which helps to create a JBL Culture. The clients come first Search for professional excellence. Openness to new ideas and new methods to encourage creativity. Quick decision making Flexibility and prompt response A sense of professional ethics

2.4 Strategies

To manage and operate the Bank in the most efficient manner to enhance financial performance and to control cost of fund To strive for customer satisfaction through quality control and delivery of timely services To identify customers' credit and other banking needs and monitor their perception towards our performance in meeting those requirements. To review and update policies, procedures and practices to enhance the ability to extend better service to customers. To train and develop all employees and provide them adequate resources so that customers' needs can be reasonably addressed. To promote organizational effectiveness by openly communicating company plans, policies, practices and procedures to employees in a timely fashion To cultivate a working environment that fosters positive motivation for improved performance To diversify portfolio both in the retail and wholesale market To increase direct contact with customers in order to cultivate a closer relationship between the bank and its customers.

2.5 Objectives of Jamuna Bank Limited

To earn and maintain CAMEL Rating 'Strong' To establish relationship banking and improve service quality through development of Strategic Marketing Plans. To remain one of the best banks in Bangladesh in terms of profitability and assets quality. To introduce fully automated systems through integration of information technology. To ensure an adequate rate of return on investment To keep risk position at an acceptable range (including any off balance sheet risk) To maintain adequate liquidity to meet maturing obligations and commitments. To maintain a healthy growth of business with desired image. To maintain adequate control systems and transparency in procedures. To develop and retain a quality work-force through an effective human Resources Management System. To ensure optimum utilization of all available resources To pursue an effective system of management by ensuring compliance to ethical norms, transparency and accountability at all levels.

2.6 Financial Performance of Jamuna Bank Limited

2.6.1. PROFITIn 2009 JAMUNA Bank Limited has earned an operating profit of Tk 1914.25 million as against Tk 1040.20 million of 2008. The profit after taxation & provision stood at Tk 923,123,207 in 2009 against Tk 479,437,923 of 2008.

Operating Profit

Figure-01

2.6.2. DEPOSIT AND DEPOSIT MIX: In the year 2009, due to many uncertainties on economic front, significant pressures on economic performance and among others the adverse impact of global economic crisis, declining trend in interest rates, JBL was able to increase its customers confidence and mobilized a total deposits of taka 32,571,285,187 against total deposit of taka 27,307,936,141.

Figure-02

2.6.3. CAPITAL STRUCTURE:

JAMUNA Bank Ltd commenced its operation on June 03, 2001 with the authorized capital of Tk. 1600.00 million ordinary shares of Tk 100 each and the bank started operation with a sound capital base of Tk. 390.00 million. In 2009 the paid up capital of the bank stood at taka 1621882500. The quantum and break-up of capital of the bank are as follows:

Amount (Taka)Particulars 20092008

Tier I Capital Paid up Capital Statutory ReserveRetained Earnings Share Premium AmountTier II Capital General Provision Maintained Against Unclassified Loan & AdvancesGeneral Provision Maintained Against Off Balance Exposure

3054143494.001621882500.00816479490.00615781504.00-943521210.00

332637999.00

147188811.002131020291.001313265200.00503839433.01313915658.00-313318210.00

213800999.00

84332811.00

Total capital (Tier I +Tier II )916.46674.65

Table- 01

2.6.4. LOANS AND ADVANCESIn FY2009 after the adverse impact of economic crisis declining trend in interest rate JBL, continued to explore its area of credit and was successful to build up a sizable quantum of credit which stood at take 32287.66 as on 31.12.2009, registered an overall increase by 53.48 percent over 2008. The total credit as on 31st December 2008 was taka 21036.86..

Figure-04

2.6.5 Total Assets

A total assets stood at taka 48730.95 in 2009 which is 53.98 % higher than that of 2008.The significant increase in assets was achieved due to rise in loans and advances, investments, money at call and short notice, cash and balances with other bands and financial institution.

Figure-05

Chapter-3: Literature Review

Foreign Exchange

Banks play a very important role in effecting foreign exchange transactions in a country. Mainly transactions with overseas countries are respect of imports; exports and foreign remittance come under his purview of foreign exchange transactions. Banks are the vital sector by which such transactions are effected/settle. Central Bank records all sorts of foreign exchange transaction effected by the Banks and other authorized quarters are to be reported regularly (viz. daily, fortnightly, monthly quarterly, yearly etc) to Bangladesh Bank. In the JBL, Principal branch foreign exchange department plays a vital role to earn the banks maximum profit. This department is classified according to their activities.

Foreign Exchange Export ImportBack to BackRemittance Govt. Sector Private SectorOutward Remittance Inward Remittance

Fig: Organization Structure of Foreign Exchange

JBL foreign exchange department has four sub-sections. Import section, export section. One section for back to back and the fourth one is foreign remittance section. An AGM is the charge of the import and foreign remittance section another AGM is in the charge of the export section. After completing the General banking I have placed in the import section. After completing the import section, I went to the export and then foreign remittance department. I had started my work at import department from the issuing of UC desk. I have tried to put my experience in my diary. My observations in this department are given below.

In Foreign Exchange division follow some transaction Foreign Exchange Regulation Act 1947. Import and Export Control Act 1950 Customs Act 1969

3.1. Import

While doing export-import or overseas business, some difficulties may arise. Because the person who buys the goods (importer) and who sells the goods (exporter) is of different Countries.

So there may rise problems. Moreover, the transactions occur through different currencies. So for minimizing the problem of fluctuation of the value of different currencies, International Chamber of Commerce (ICC) established some regulation. which have to be followed through out the world. These regulations are called UCPDC (Uniform Customs & Practice for Documentary Credit). According to UCPDC, importer must open a UC for importing anything from abroad.

Letter of Credit is a guarantee given by the issuing bank to the advising bank in favor of the exporter that in case of failure of giving payment by the importer, issuing bank will pay the money to the advising bank.

Types of importer

Industrial (rawMaterials, machineries etc.)Commercial(Finished Products)Private SectorImporterActual Users

Fig: Types of Importers

Commercial Some client imports various types of goods for commercial purposes mainly forlocal consumption i.e for direct consumers and industries.

Industrial Some industrialist import raw materials and other indirect materials for their ownindustrial consumption as well as to supply thereof other industries.

Actual users This type of customers import various types of goods for their own consumption.

3.2. Banks Involved In Foreign Exchange Transactions:

While importing, importer at first will open a UC from his country bank. This bank is called issuing bank. Issuing bank will transact regarding this with another bank that is established at the exporter's country. This bank is called advising bank.

After receiving the UC from the issuing bank, advising bank will call the exporter. Exporter will collect it and may give it to the bank in which he maintains his transactions. This bank is called negotiating bank. Negotiating bank wilt collect the money from another bank that is called reimbursing bank.

While paying the UC money, issuing bank and negotiating bank will select another bank that is acceptable to the both banks. This bank is called reimbursing bank.Issuing bank will pay the money to the reimbursing bank. Negotiating bank will collect it from the reimbursing bank. Reimbursing bank is a bank of exporter's country.

3.3. Procedure of Opening L/C:

L/C is a guarantee given by the issuing bank on behalf of the buyer to the advising bank making the seller as beneficiary. The procedure of opening a L/C is

i. Applicant has to apply for opening L/C by a prescribed form.ii. Applicant has to submit the Letter of Indent or Letter of Proforma Invoice.

Letter of Indent: Many sellers have their agent in seller's country. If the contract of buying is made between the buyers and the agent of the sellers then it is called Letter of Indent..Letter of Proforma Invoice: If the contract is made directly between the buyers and the sellers then it is called the Letter of Proforma Invoice.

i. Applicant has to submit IRC (Indentors Registration Certificate). It is a certificate being renewed every year. This certificate is necessary if the contract is made between the buyers and the agents of the sellers. IRC is of two types - COM and IND. COM is given for commerce purpose and IND is given for industrial purpose.

ii. Applicant has to submit LCAF (Letter of Credit Authorization Form)

iii. Applicant has to submit insurance document.

iv. Applicant has to prepare FORM-IMP.

v. Recently, there has been made a provision to give a certificate named TIN (Tax Payers Identification Number). Taxation department issues this certificate..

vi. Then after proper scrutiny bank will open a L/C.

While opening L/C, importer must keep certain percent3ge of the document value in the bank as margin.

3.4 Requirements for opening An L/C:

To open a L/C the requirements of an importer are:

a. He must have an account in JBLb. He must have importers Registration Certificate (IRC)c. Report on past performance with other bank, JBL collects this report for Bangladesh Bank. d. CIB (Credit Information Bureau) report for Bangladesh Bank. e. A proposal approved by the meeting of executive committee of the bank, it is necessary only when the L/C amount is small or there is no limit. f. If the L/C amount is large or there is a limit, then an approval form Bangladesh Bank is needed. Usually this approval is needed for amount more than one crore.

IndentorsBuyer (Importer)Seller (Exporter)Reimbursing BankAdvising BankConfirming BankNegotiating BankIssuing Bank

3.5. Foreign Exchange Mechanism

To have an import L/C limit, an importer submits an application to the Department of Agrani Bank furnishing the following information:

1. Full particulars of bank account 2. Nature of business3. Required amount of limit4. Payment terms and conditions 5. Goods to be imported6. Offered security7. Repayment schedule

A credit Officer scrutinizes this application and accordingly prepares a proposal (CLP) and forwards it to the Head Office Credit Committee (HOCC). The Committee, if satisfied, sanctions the limit and returns to the branch. Thus the importer is entitled for the limit.

3.6. The L/C Application:

JBL provides a printed form for opening of L/C to the importer. This form is known as Letter of Credit Application form. A special adhesive stamp is affixed on the form. While opening, the stamp is cancelled. Usually the importer expresses his desire to open the L/C quoting the amount of margin in percentage. The importer gives the following information,

1. Full name and address of the importer.2. Full name and address of the Beneficiary. .3. Draft amount.4. Availability of the credit by sight payment acceptance!Negotiation deferred payment.S. Time bar within which the documents should be presented.6. Sales type (CIF/FOB/C&F)7. Brief Specification of commodities, price, and quantity, indent no. etc.8. Country of origin.9. Bangladesh Bank Registration no. 10. Import License I LCAF no.11. IRC no.12. Account no.13. Documents required.14. lnsurance cover note / Policy no., date, amount.I 5. Name and address of Insurance Company.16. Whether the partial shipment is allowed or not.17. Whether the Transshipment is allowed or not.18. Last date of shipment.19.1ast date of negotiation.20. Other terms and conditions if any.21.Whether the confirmation of the credit is requested by the beneficiary or not.

The above information are given along with the following documents---

1. Proforma Invoice stating description of the goods including quantity, unit price etc.2. The insurance covers note, issuing company and the insurance number.3. Four set of IMP Form\

3.7. The Letter Of Credit Authorization (LCA) Form:

The Letter of credit authorization (LCA) form contains the followings-1. Name and address of the Importer.2. IRC no. and Year of renewal.3. Amount of UC applied for (Both in figure and in word). 4. Description of item(s) to be imported.5. ITC Number(s)/ HS Code.Stamp and signature of the Importer with seal.

3.8. Form-IMP:

The Form-IMP contains the followings-1. Name and address of the Authorized Dealer.2. Amount of remittance to be permitted (i.e., UC amount).3. LCA form number, Date, and Value in Tk.4. Description of goods, quantity.5. Invoice value in Foreign Currency (i.e., UC amount).6. Country of Origin.7. Port of Shipment.8. Name of Steamer! Airline (i.e., By Road! By Ship! By Air).9. Port of Importation. Indentors name and address.10. Indentors registration number with CCI & E and Bangladesh Bank. 11. Full name and address of the Applicant.12. Registration number of the Applicant with CCI & E.13. Type of lCAF.

3.9. Securitization of L/C Application:

The JBL Official scrutinizes the application in the following manner,

1. The terms and conditions of the L/C must be complied with UCPDC 500. 2. Exchange Control & Import Trade Regulation.3. Eligibility of the goods to be imported.4. The L/C must not be opened in favor of the importer.5. Radioactivity report in case of food item.6. Survey report or certificate in case of old machinery7. Carrying vessel is not of Israel or of Serbia- Montenegro8. Certificate declaring that the item is in operation not more than 5 years in case of car.

3.10. Precautions taken by officer before issuing L/C:

After submission of documentary Letter of Credit application form, the concerned officer scrutinizes the terms and conditions that mentioned in application. He must check the following things

1. 1. Whether the terms and conditions of L/C application are consistent with Exchange Control and Import Trade regulation, UCPDC-5OO.2. L/C must not be opened in favor of the importer or his agent3. L/C must be signed by the importer agreeing all terms and conditionsa. mentioned in the application4. Indenting registration number5. Whether IMP form dully filled and signed6. Validity of IRC7. Insurance cover note with date of shipment8. The HS code of the goods9. The balance of the accounts of the importer10. The goods are not from Israel and vessels to be used is not of Israel11. The issuing officer will try to keep as much margin as possible

3.11. Amendment of Letter Of Credit:

Parties involved in a L/C, particularly the seller and the buyer cannot always satisfy the terms and conditions in full as expected due to some obvious and genuine reasons. In such a situation, the credit should be amended. JBL transmits the amendment by tested telex to the advising bank .In case of revocable credit, it can be amended or cancelled by the issuing bank at any moment and without prior notice to the beneficiary. But in case of irrevocable letter of credit, it can neither be amended nor cancelled without the agreement of the issuing bank, the confirming bank (if any) and the beneficiary. If the L/C is amended, service charge and telex charge is debited from the party account accordingly.

3.12 Adding Confirmation:

Confirmation is given by the Add confirming Bank. An Add confirmation letter contains the followings--

1. L/C No.--2. L/C amount--3. Items to be imported4. Name and address of the Applicant5. Name and address of the Beneficiary-6. Tenor--7. Date of shipment-8. Date of Expiry9. Port of Loading-10. Port of Discharge11. Charges on (which party)12. Name of the Advising Bank13. Name of Reimbursing Bank--14. Name of Confirming Bank

3.13. Dispatching the Import L/C:

After opening of import L/C, JBL principal branch dispatches the L/C. principal branch sends an original copy of the L/C for negotiating and a copy to the advising bank for advising. It also sends reimbursing bank for reimbursement.

3.14. Advising the import L/C:

Advising a L/C through a bank is a proof of apparent authenticity of the credit to the seller/beneficiary. The advising process of a L/C consists of forwarding the original credit to the beneficiary to whom it is addressed. Before forwarding the advising bank has to verify the signatures of the officers of the L/C opening bank (JBL), and at the same time ensures that the terms and conditions of the L/C are not in violation of the existing Exchange Control Regulations. In such act of advising, the advising bank does not undertake any liability.

3.15: Lodgment & Retirement Section:

Lodgment means retirement of funds. If the documents receiving from the negotiating bank JBL principal branch also scrutinize the documents. The officer carefully examines the following points:

Invoice:

1. The invoice should contain quality t quantity t unit price, total value2. The number of copies should exactly meet the requirement of the credit 3. The shipper must sign all the copies

Bill of lading:

1. It must be duly signed and endorsed.2. It must state payment of freight. if the invoice price is on C&F basis the bill of lading must be marked "Freight Paid" and freight is payable at destination. "Freight to. Pay" is marked on BIL

Certificate of Origin:

It should provide evidence of the goods as specified in the credit. it is issued by the Chamber of Commerce of beneficiary's country.

Bill of Exchange:

1. Is the Bill of Exchange drawn in the language of the credit?2. Is the bill of exchange property prepared according to the credit conditions (on a sight or time' basis) and drawn on the specified bank?3. Is it property dated and signed4. Is the amount in figures corresponded exactly with the amount in word?5. Does it contain _I the prescribed notations and clauses?Any other documents such as Weight and Measurement Certificate, Insurance Certificate. Packing list etc. as stipulated in the credit must be examined before negotiation.

After scrutiny of these documents, if there is any discrepancy in the document" the officer will promptly advise the importer and the negotiating bank and asks them to rectify these discrepancies. But if there is no discrepancy. Then he will prepare some vouchers.

3.16. Payment Procedure of the Import Documents:This is the most sensitive task of the Import Department. The Officials have to be very much careful while making payment. This task constitutes the following:

A. Date of payment:Usually payment is made within seven days after the documents have been received. If the payment is become deferred, the negotiating bank may claim interest for making delay.

B. Preparing sale memo:A sale memo is made at B.C rate to the customer. As the T.T & O.D rate is paid to the ID, the difference between these two rates is exchange trading. Finally, an Inter Branch Exchange Trading Credit Advice is sent to ID.

C. Requisition for the foreign currency:For arranging necessary fund for payment, a requisition is sent to the International Department.

D. Transmission of telex:A telex is transmitted to the correspondent bank ensuring that payment is being made.

3.17 Export Section

In the Export section, two types of L/C s are opened-! Back to Back L/C Export L/C

3.19 Back: To Back L/C:

A back-to-back mechanism involves two separate L/Cs. One is master export L/C and another is back-to-back L/C. on the strength of Master export L/C Bank issues Back to-Back L/C.Back-to-Back L/C is commonly known as Buying L/C. on the contrary. Master Export L/C is known as Selling.

3.20Features of Back to Back L/C: Is an import L/C to procedure goods raw materials for further processing. Is opened based on Export L/C. Is a kind of Export Finance? Export L/C is at Sight but Back-to-Back L/C is at Usance. No margin is required to open Back-to-Back L/C.

3.21. Checklist to open Back to Back L/C:

Application is registered with CCI & E and has bonded warehouse license. The Master L/C has adequate validity period 'and has no defective clause. L/C value shall not exceed the admissible percentage of net FOB value of relativeMaster L/C. Usance period will be up to 180 days. Papers required opening Back-to-Back L/C: Import Registration Certificate & Export Registration Certificate. L/C Application & LCA form.

Insurance Policy a IMP form. In addition to above following papers are required for Readymade Garments Industry- Bonded Warehouse license. Quota allocation letter from EPB (where applicable) Letter of disclaimer from landlord if rented premises.

. Steps to issue Back-to-Back L/C: Obtain all required papers. Check the credit limit. Prepare offering sheet if regular credit line is not available. a. Mark lien on the master L/C. Issue the L/C.

3.22 Payment under Back to Back L/C:a) Payment at maturity out of exports proceeds.b) In case of export failure or non-realization/short realization of export proceeds, forced loan i.e. OAP has to be created in order settle the Back-to-Back L/C payment.

3.23. Precautionary measures:a Inclusion the clause for Pre-Shipment Inspection Certificate. a Shipping guarantee under no circumstances.a) Discrepant documents shall not be accepted.b) Proper care regarding amendments of Master L/C.

The flow chart on Back-to-Back L/C Mechanism:

USA bank issues the L/C andForwards the same toBangladesh garments through a Bangladeshi Bank.Buyer USA Ltd. Instructhis bank to issue theExport LlC in favor ofBangladesh Garments ltd

I Bangladesh Garments Ltd. Submits hisExport L/C with a request to his bank, sayJBL for lien of the Export L/C andto issue Back to Back L/C in favor ofTaiwan Textile LtdJBL issues Backto Back L/C and forwardsthe same to TaiwanTextile Ltd. through aTaiwanese Bank

Back-to-Back L/C is essentially a self-liquidating transaction. Usually a Bank issuing Back to Back L/C has no collateral or comfort to rely upon, except the master L/C. therefore Bank officials concerned, should be fully aware of the inherent risk involved in this type of businesses and are advised to issue Back to Back L/C only for the well known customer of the Bank and of undoubted integrity.

3.24 Reporting To Bangladesh Bank:At the end of every month, the reporting regarding the following information is mandatory. A. Filling of E-2IP-2 schedule of 5-1 category; which covers the entire monthAmount of import, category of goods. Currency, country etc.

B. Filling of E-3/P-3 schedule for all charges, commission with TIM form.C. Disposal of IMP form, which includes,

1. Original IMP is forwarded to Bangladesh Bank with invoice and Indent.3. Duplicate IMP is kept with the Bank along with the bill of entry Certified Invoice.4. Triplicate IMP is kept with the Bank for office record.5. Quadruplicate is kept for submission to Bangladesh Bank in case of imports where documents are retired.

3.25.Export L/C

The other type of L/C facility offered by JBL Export L/C. Bangladesh exports a large quantity of goods and services to foreign households. Readymade textile garments (both knitted and woven), jute, jute-made products, frozen shrimps, tea are the main goods that Bangladeshi exporters exports to foreign countries. Garments sector is the largest sector that exports the lion share of the country's export. Bangladesh exports most of its readymade garments products to U.SA and European Community (EC) countries. 0Bangladesh exports about 40% of its readymade garments products to U.SA Most of the exporters who exports through JBL are readymade garment exporters. They open export L/Cs here to export their goods, which they open against the import UCs opened by their foreign importers.

3.26Formalities for Export L/C:The export trade of the country is regulated by the Imports and Exports (control) Act, 1950. There are a number of formalities which an exporter has to fulfill before and after shipment of goods. These formalities or procedures are enumerated as follows.

I. ERC: The exports from Bangladesh are subject to export trade control exercised by the Ministry Of Commerce through Chief Controller of Imports and Exports (CCI & E). No exporter is allowed to export any commodity permissible for export from Bangladesh unless he is registered with CCI & E and holds valid Export Registration Certificate (ERe). The ERC is required to be renewed every year. The ERC number is to be incorporated on EXP forms and other documents connected with exports.

2. Obtaining EXP: After having the registration, the exporter applies to JBL with the trade license, ERC and the Certificate from the concerned, Government Organization to get" EXP. If the bank is satisfied, an EXP is issued to the exporter. An EXP-Form contains the following particulars,

a) Name and address of Authorized Dealerb) Particulars of the commodity to be exported with codec) Country of destinationd) Port of destinatione) Quantityf) L/C value in Foreign currencyg) Terms of Saleh) Name and address of Importer! Consigneei) Bill of Lading! Railway Receipt! Airway Bill! Truck Receipt! Post Parcel Receipt no. and datej) Port of Shipment! Post Office of Dispatchk) Land Custom Postl) Shipment Datem) Name of the Exporter with addressn) CCI & E's Registration number and date of the Exportero) Sector (Public or Private) under which the Exporter falls.

3. Securing the order: Upon registration, the exporter may proceed to secure the export order. This can be done by contracting the buyers directly through correspondence.

4. Signing of the contract: While making a contract, the following points are to be mentioned,

Description of the goods. Quantity of the commodity Price of the commodity. Shipment Insurance and marks Inspection Arbitration

The following_ points are to be looked for, The terms of the L/C are in conformity with those of the contract. The L/C is an irrevocable one, preferably confirmed by the advising bank. The L/C allows sufficient time for shipment and a reasonable time for registration. If the exporter wants the L/C to be transferable, divisible and advisable, he should ensure those stipulations are specially mentioned in the L/C.

5.Procuring- the materials: After making the deal and on having the L/C opened in his favor, the next step for the exporter is to set about the task of procuring or manufacturing the contracted merchandise.6. Registration of sale: This is needed when the items proposed to be exported are raw jute and jute goods.8Shipment of goods: The following are the documents normally involved at the stage of shipment,

i. EXP Formii. photocopy of registration certificateiii. photocopy of the contractiv. photocopy of the L/Cv. Customs copy of ERF Form for shipment of jute goods and EPC Form for raw jute.vi. Freight certificate from the bank in case of payment of the freight at the port of lading is involved.vii. Railway receipt, Berg Receipt or Truck Receipt.viii. Shipping instructions.ix. Insurance policy.

After those, exporter submits all these documents along with a letter of Indemnity to JBL for negotiation. An officer scrutinizes all the documents. If the document is a clean one,

3.27. Export 'Bill Scrutiny Sheet:

The Export Bill Scrutiny Sheet contains the following particulars,

1. Exporter's name2. Presentation date of documents. 3. L/C no.4. Expiry date5. L/C amount available6. The date within which the documents to be presented7. BU AWB! FCR dated8. Shipment date in the L/C Draft date9. Invoice number and date10. Export L/C no, date, issued by11. Documents required in the L/C contract12. Liability position13. Discrepancies14. Calculation of Bill amount (Exporter's Retention Quota, Commission, and Margin).

Documentary credit is following types:Revocable credit:A revocable credit is one where the issuing banks at liberty to revoke i e. cancels the credit at any time.

Irrevocable credit:An irrevocable credit is a documentary credit, which cannot be revoked, varied orChanged/amended or cancelled without the consent of all parties- buyer (Applicant), seller(Beneficiary), Issuing Bank, and Confirming Bank (in case of confirmed L/C). As per Article9(a) of UCPDC 500, an irrevocable credit constitutes a definite undertaking of the Issuing Bank,provided that the stipulated documents are presented to the Nominated Bank or to the IssuingBank and that the terms and conditions of the credit are complied with.

Chapter 4: Finding & Data Analysis:

4.1 Import:

The total business handled by the bank in 2009 was taka 46684.73 million compared to taka 30311.71 million in the preceding year registering a growth of taka 116373.02million 54.02 percent. A sizable L/Cs were also opened by the bank in the year under review. The import items include machinery, consumer goods, fabrics, accessories food items etc.

Import

YearTk(million)

200946685

200830312

200722192

200615458

200512152

4.2 Export:

The bank handled export business worth 21405.94 million in the under report. In 2008 total export business handled by the bank was an increase of taka 18617.43 million . Thus there was an increase of taka 2789.5 million in the export business handled by the ban k 14.98 percent over the preceding year . The major export item was ready made garments agro based products etc.

Export

YearTk(million)

200921407

200818617

200713990

200611584

20056522

4.3Correspondent Relationship:

Over the years the bank has developed beneficial relationship with the foreign correspondents worldwide to facilitate the international trade operations of the bank. Jamuna bank limited has so far established relationship with most leading international banks in 107 countries through 735 correspondents to cover all important financial centers of the world. The bank endeavors to increase the network of correspondent relationship with more overseas banks, financial institutions to cater to the needs of customer globally. Drawing arrangement with overseas exchange houses have already been established for bringing in home remittance through banking channel. Efforts are underway to expand correspondent relationship further to facilitate the banking growing foreign trade transaction.

4.5.Remittance Business & Exchange House:

Jamuna Bank Ltd. has a network of branches in Bangladesh and more branches are going to be added to network soon. Remittance services are available at all branches and foreign remittances may be sent to any branch by the remitters favoring their beneficiaries. Remittances are credited to the account of beneficiaries instantly through Electronic Fund Transfer (EFT) mechanism or within shortest possible time. Jamuna Bank Ltd. has correspondent banking relationship with all major banks located in almost all the countries/cities. Expatriate Bangladeshis may send their hard earned foreign currencies through those banks or may contact any renowned banks nearby ( where they reside/work) to send their money to their dear ones in Bangladesh. To facilitate sending money in Bangladeshi Taka directly, Jamuna Bank Ltd. has Taka Drawing Arrangement with many banks/exchange companies in different countries. The expatriate Bangladeshis may send their money in BDT through the branches/subsidiaries of Jamuna Bank

In order to encourage wage earner for remitting funds through banking channel and ensure smooth facilities of remittance JBL is making constant effort to make arrangements with reputed exchange house all over the world. The banks such effort are directed towards increase of remittance business so as to enhance the inflow of foreign currency. With this end in view JBL has already signed arrangement with the following remittance companies

Placid N.K. Corporation U.S.A Euro Banglad Money Transfer (UK) Ltd Raffles Exchange (U.K) Ltd U.K Money Link (U.K) Ltd U.K Money Gram Payment Systems, USA Rumana Money Services,U.K Zenj Exchange Co.,Bahrain Fast Remit Sdn Bhd,Malaysia

The bank is going to have accord with some other reputed exchange houses operating in the different financial hubs of the world. For providing supports to NRBs Remittance cell has already been established in the head office which is equipped with modern technology for ensuring prompt delivery of remittance services & replies to the wage earner and beneficiaries queries. Total remittance business was 2658 million in 2009.

4.6.Offshore Banking Unit:An offshore banking unit of a bank is a deemed foreign branch of the parent bank situated in Bangladesh. The impressive growth of the economy during the last couple of year and the facilities provided to the foreign investors through opening of special export have attracted lot of foreign investors in the country . Jamuna bank ltd got Bangladesh ban permission against recommendation of BEPZA. To establish its off shore banking unit at its Gulshan branch Dhaka premise. The functions of OBU will be started very soon.

The OBU unit will be able to mobilize deposits from & extend credit facilities to the industries of all the EPZs as well as obtain foreign currency from foreign bank & correspondent bank.

4.7.100% Owned Exchange House Abroad:

Jamuna bank limited got Bangladesh Banks permission for establishing 100% owned exchange houses in following regions of following regions of following countries.

Country Regions

United Stated London Manchester Birmingham

Malaysia Kuala Lumpur Penang

It will help augment inflow of foreign remittance into the country for helping the expatriates to route money to near and dear ones beneficiaries staying in Bangldesh through Banking Channel. The process for establishing the same is in the progress.4.8.Foreign Exchange Risk:Foreign Exchange risk is defined as the potential change in earning due to change in market price .The foreign exchange risk of the bank is minimal as well as the transactions are carried out on behalf of the customers against underlying L/c commitments and otherremittance requirementss. No foreign exchange purpose on banks accountn was conducted during the year .All Nostro account reconcilied on a monthly basis and outstanding entry beyond 30 days is reviewed by the management for itssettlement. Steps have been implemented and some are in under process.

4.9.Export Cash Credit:

YearExport Cash Credit

200953219417

200837940992

4.10.Exchange Gain: DetailsYear 2009Year 2008

On foreign Currency14196011726868

Other Exchange737934-------

Net Exchange Gain22575351726868

4.11.Nostro account related to foreign exchange transaction

Nostro account means our account with you. A Nostro account is a foreign currency account of a bank maintained its foreign correspondents abroad. For example, US Dollar Account of JBL maintained with Citibank, N.A, New York, USA is a Nostro account of JBL.

4.12.Mode of payment of export bills under L/C:

Payment methodsUnder L/CAcceptance Payment CreditNegotiation Payment CreditDeferred Payment CreditAt Sight Payment Credit

At Sight Payment Credit:In a Sight Payment Credit, the bank pays the stipulated sum immediately against the exporterspresentation of the documents.

Negotiation CreditIn Negotiation credit, the exporter has to present a bill of exchange payable to him in addition to other documents, that the bank negotiates.

Deferred Payment CreditIn deferred payment, the bank agrees to pay on a specified future date or event, after presentation of the export documents. No bill of exchange is involved. In NCCBL, payment is given to theparty at the rate of D.A 60-90-120-180 as the case may be. But the Head office is paid at T.T clean rate. The difference between the two rates is the exchange trading for the branch

Acceptance creditIn acceptance credit, the exporter presents a bill of exchange payable to him and drawn at theagreed tenor (that is, on a specified future date or event) on the bank that is to accept it. The bank signs its acceptance on the bill and returns it to the exporter. The exporter can then represent it for payment on maturity. Alternatively he can discount it in order to obtain immediate payment.

4.13.Findings of Foreign exchange Department

Foreign exchange dealings are very sensitive because it involves currency transfer fromone currency to another and have to have very cautious for maintaining the formalities.But in foreign exchange section L/C opening, BLC creation, Lodgment all these aremaintained manually in different register which is lengthy & cost worthy. It is not a goodpractice.

In case of Export L/Cs, sometimes customers insist the Bankers to give their paymentsthrough their documents in spite of discrepant thereof. In some cases, Bank has to givepayment to these customers for different reasons but taking indemnity bond.

Financing to the international trade is very crucial to the economy and as well as it isrisky. Some time the government impose restriction to import some products and toexport some products. But some time it may happen that the customers under invoice toimport goods from outside and vice versa.

Lack of some technical knowledge of International Trade Financing.

4.14.Methods of Overcoming Miss masses:

For L/C opening, BLC creation and lodgment all these are dealings should be donecareful and all the processes should be done with computer.

The Bank should be as strict as possible about giving payments against discrepantdocuments without hurting the customers.

The Bank should not finance to that people who under invoice in case of importing & exporting if it understands. The Bankers must be aware about this unwanted happening. And they should observe the invoice to open a letter of Credit (L/C).

The bank should try to arrange more training programs for their officials. Quality trainingwill help the officials to enrich them with more recent To provide quality service to the customer it is necessary to have trained team of staff.

Chapter Eight

SWOT Analysis

SWOT analysis is the detailed study of an organizations exposure and potential in perspective of its strength, weakness, opportunity and threat. This facilitates the organization to make their existing line of performance and also foresee the future to improve their performance in comparison to their competitors. As though this tool, an organization can also study its current position, it can also be considered as an important tool for making changes in the strategic management of the organization.

Strengths: JAMUNA Bank Limited is managed by highly professional people. The management of the bank constantly focuses on the understanding and anticipating customers needs and solution thereof. JAMUNA Bank Limited has already achieved tremendous progress within a short period of its operation. The bank is already ranked as one of the quality service providers and known for its reputation.

The top management officials of Jamuna Bank Limited have years of banking experience, skill, and expertise will continue to contribute towards further expansion of the bank. JAMUNA Bank Limited has already achieved a high growth rate accompanied by an impressive profit growth rate in 2005. Its operating profit is Tk 419.94 million as against Tk 308.83 million of 2004. The number of deposits and the loans and advances are also increasing rapidly. JAMUNA Bank has an interactive corporate culture. The working environment is very friendly, interactive and informal. And, there are no hidden barriers or boundaries while communicate between the superior and the employees. This corporate culture provides as a great motivation factor among the employees. JAMUNA Bank has the reputation of being the provider of good quality services too its, potential customers. It always focuses on low and no cost deposits which will the growth of the bank. The bank always eagerness to introduce new deposit scheme and has already introduced highly lucrative and attractive deposit scheme to encourage and The bank credit facilities mainly concentrated on trade finance, Agriculture related sector, project finance, whole and retail trading etc. The Bank introduced on line branch banking.

Weakness: Lack of experience employees in junior level of management. . The bank failed to provide a strong quality-recruitment policy in the lower and some mid level position. As a result the services of the bank seem to be Deus in the present days. The poor service quality has become a major problem for the bank. The quality of the service at JAMUNA Bank is not higher than the Dhaka Bank, Brac Bank or Dutch Bangla Bank etc. But the bank has to compete with the Multinational Bank located here. The Bank does not observe social commitment strongly. Most of the branches are not well decorated. No have any own training institution for improving the quality of the employees in this bank.

In terms of promotional sector, JAMUNA Bank has to more emphasize on that. They have to follow aggressive marketing campaign.

Opportunity:

In order to marinating the internal control system, JAMUNA Bank has to expand it credit policy guidelines and procedures for continuous monitoring and upgrading of daily banking activities. The management can consider options of starting merchant banking or diversify into leasing and insurance sector.

Opportunity in retail banking lies in the fact that the countrys increased population is gradually learning to adopt consumer finance. The bulk of our population is middle class. Different types of retail lending products have great appeal to this class. So a wide variety of retail lending products has a very large and easily pregnable market. There are many banks in our country. In this competitive environment JAMUNA Bank must expand its product line to enhance its sustainable competitive advantage. In that product line, they can introduce the own ATM to compete with the local and the foreign bank. They can introduce credit card and debit card system for their potential customer. As a third generation renown bank, Jamuna bank can increase its network with most international banks and financial institutions

Threats:

All sustain multinational banks and upcoming foreign, private banks posses enormous threats to JAMUNA Bank Limited. If that happens the intensity of competition will rise further and banks will have to develop strategies to compete against an on slough of foreign the banks.

The default risks and delinquent of all terms of loan have to be minimizing in order to sustain in the financial market. Because this risk leads the organization towards to bankrupt. JAMUNA Bank has to remain vigilant about this problem so that proactive strategies are taken to minimize this problem if not elimination.

The low compensation package of the employees from mid level to lower level position threats the employee motivation. As a result, good quality employees leave the organization and it effects the organization as a whole.

Chapter Nine

Findings, recommendations and conclusion

9.1 findings Some customers do not understand account opening form & L/C opening form Some customers are not interested or not able to write D.D., Check, pay order voucher. In the present market situation, where the competition among all private commercial banks are very intense and high, the management of Jamuna Bank is failing to find out its major weaknesses. The major weakness of Jamuna Bank Limited is its unattractive salary package. The salary package that Jamuna Bank Limited offers to the employees is relatively poor comparing to other competing banks in the market. JBLs banking strategy is not arranged in such way that provides excellent service to its customers and employees. They have to transfer data from branch to branch and branch to head office by using peon and others. According to some clients opinion introducer is one of the problems to open an account. If a person who is new of the city wants to open account, it is a problem for him/her to arrange an introducer of SB or CD accounts holder. Jamuna Bank Limited fails to recruit expert and skilled person because of this low salary structure. There are some congested branches where modern technical equipment such as computer and manpower are not sufficient. As a result banking activities are not done properly. JAMUNA Bank doesnt give their attention on advertisement. As a competition market it is too much important for any organization to increasing their advertisements procedure. JAMUNA Bank Limited has limited workforce. As a result most of the employees are under huge workload and have to work extra hours though no overtime facility is provided to them. So the cause of serious employees dissatisfaction and result in employee turnover. Jamuna Bank Limited cannot provide A.T.M service to its customers properly. 9.2 Recommendations Trying to make those people understand who do not know how to open a bank account. JBLs human resources management policy has to identify the right combination of skills, knowledge, behavior and values and utilize them for the welfare of the bank. If they are established strong networking system with their branches then it can easily transfer data within short time. If they cancel the introducer system then they can collect more deposit through new account and it also satisfied the customer. To make the process easy and quick the whole system should be computerized and take modern communication media for example e-mail, fax, Internet should be used. Its has to adopt the most recent technologies to improve the quality of service. A group well-trained and expert work force is dedicated to render the best service to the customers. Its working environment has to excellent for its employees and customers The management has to introduce the overtime facility for the employees who work hard extra hours after their office time. The management of Jamuna Bank Limited has to give their attention to take necessary steps to improve salary structure. The management of Jamuna Bank Limited must be identified the weakness point to have in competition in banking sector.

9.3 Conclusion A Lot of new commercial bank has been established in last few years and these banks have made this banking sector very competitive. So, now banks have to organize their operation and do their operations according to the need of the market. Banking sectors no more depends on a traditional method of banking. In this competitive world this sector has trenched its wings wide enough to cover any kind of financial services anywhere in this world. The major task for banks, to survive in this competitive environment is by managing its assets and liabilities in an efficient way.As an internee student in JAMUNA Bank Bangladesh Limited at Motijheel Branch, Dhaka, I have truly enjoyed my internship from the learning and experience viewpoint I am confident that 1.5 month internship program at JAMUNA Bank Bangladesh Limited will definitely help me to realize career in the job market.During the course of my practical orientation I have tried to learn the practical banking to realize my theoretical knowledge, what I have gathered and going to acquire from various courses. It is great pleasure for me to have practical exposure of JAMUNA Bank Limited, because without practical exposure it couldn't be possible for me to compare the theory with practice.Through the departments and sections are covered in the internship program, it is not possible to go to the depth of each activities of branch because of time limitation. So objectives of the internship program have not been fulfilled with complete satisfaction. However, highest effort has been given to achieve the objectives of the internship program.So in conclusion it can be said that every organization has its positive as well as negatives and in case of JAMUNA Bank Bangladesh Limited existence of the later one is less than the earlier one and as the management is determined to reach the pick of success it seems that in near future the negatives will be eliminated. Six years is a very short span of time and the organization, which can establish itself as one of the most reputed private commercial Bank in the country within this short period deserves special credit and with their able leaders JAMUNA Bank will reach the highest level of success very shortly. I wish the bank all success prosperity in their field.

BIBLIOGRAPHY

1.Annual Report of Jamuna Bank Limited 2009: Published by: Head office of Jamuna Bank Limited, Dhaka.

2. Credit Manual: Published by: Head office of Jamuna Bank Limited, Dhaka

3. Foreign Exchange Manual: Published by: Head office of Jamuna Bank Limited, Dhaka.

4.Joel Besis (2001): Risk Management in Banking, 3rd edition, Newyork, Jhon Wiley Ins 5. Transaction in foreign exchange: Principles and Practice. Written by: M. A yusuf and M. R Sinha

6. George H Hempel and Donald G Simonson (1998), Bank Management and Cases 5th edition. Newyork, South- western

7. Web: www.jamunabankbd.com. 8. Various files of Motijheel Branch of JBL

APPENDIX

1. Figure 01, Profit rate ( Page 7)

2. Figure 02, Deposit ( Page 8)

3. Figure 03, Loans and Advances (Page 9)

4. Table 01, Quantum and Break- up of Capital ( Page 8)

5. Table 02, Comparative Deposit Mix ( Page 9)

6. Table 03, Closing Position of Chistia Branch (Page 10)

7. Table 04, Interest rate and service charges ( Page 12)

8. Table 05, Lease Period (Page 23)

9. Table 06, Schedule of Loan repayment (Page 26)