Internship report on

Foreign Exchange Activities of AGRANI Bank Limited

Submitted by- Kazi Arifur Rahman

ID- 1530614030
Course- Bus-498

Submitted to- Tasfia Mazid

Course- BUS-498

Submission Date- 2nd September, 2019.

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Letter of Transmittal

2nd September, 2019

Tasfia Mazid

Lecturer, School of Business and Economics

North South University Dhaka-1229

Subject: Letter of Transmittal

Dear Sir,

This is to inform you with due respect that I have successfully completed the Internship
Report of BUS 498 course for the semester of Summer,2019. I have followed almost all the
instructions that you have given and I have also applied some relevant concepts that I have
learnt throughout my North South journey. However, I will be glad to clarify any
inconsistency that may arise.

Finally, I would like to express my gratitude for your supportive thoughts and kind
consideration.

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Executive Summary

This is my very first internship report based on the 3 months long internship program that I
had successfully completed in North South University from 25th May to 25th August, 2019 as
a requirement of my BBA program of North South University. As being a completely new to
practical, corporate world setting, every hour spent or moment in Solid Agrani Bank gave me
some sorts of experience all the time all of which cannot be explained in words but to be felt
only. But nevertheless, they were all useful as well as valuable for my career.

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 Table of Contents
I. Company Background………………………………………………………....5
II. History of AGRANI Bank Limited…………………………………………....6
III. Vision…………………………………………………………………………..7
IV. Mission………………………………………………………………………....7
V. Objectives………………………………………………………………….......7
VI. Introduction……………………………………………………………………8
VII. Kinds of services……………………………………………………………….9
VIII. Functions of foreign exchange services……………………………………….10
IX. Letter of credit…………………………………………………………………11
X. Forms of letter of credit………………………………………………………..11
XI. Different issues regarding L/C…………………………………………………13
XII. Discussion about Import L/C…………………………………………………..14
XIII. Discussion about Back to Back L/C……………………………………………19
XIV. Monitoring issue of Bangladesh Bank…………………………………………21
XV. SWOT analysis…………………………………………………………………23
XVI. Recommendation ………………………………………………………………25
XVII. Conclusion………………………………………………………………………25
XVIII. Appendix………………………………………………………………………..26

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Introduction

Agrani Bank Limited, it is a leading commercial bank with more than 900 outlets tactically
located in almost all the commercial arenas all over Bangladesh, foreign Exchange Houses
and hundreds of overseas Communicators, came to see as a as a Public Limited Company on
17th May , 2007 to take over the business/ assets/ liabilities/rights / obligations of the Agrani
Bank which is emerged as a nationalized commercial bank in the year of 1972 immediately
after the independent of sovereign Bangladesh. Agrani Bank Limited in full swing
functioning as a growing concern basis of a Vendors Agreement signed between the ministry
of finance, Government of the People's Republic of Bangladesh and on behalf of the previous
Agrani Bank and the Board of Directors of Agrani Bank Limited on November 15, 2007 with
reflective effect from 1st July, 2007. Agrani Bank Limited is a governed by a Board of
Directors containing of 12 memberships headed by a Chairman. The Bank is headed by the
Managing Director and Chief Executive Officer who is assisted by Deputy Managing
Directors and the General Managers. The bank has already been 11 Circle offices, 32
Divisions in head offices, 62 zonal offices and 921 branches including 27 corporate and 40
Authorized Dealers branches.

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 History
Agrani Bank Limited is undertaking Bangladesh banks (nationalization) order from 1972
(P.O. No-26 of 1972) came into see in 1971 which took over both the assets and liabilities
of the east while Habib Bank ltd. and commerce bank ltd. Activating in the then East
Pakistan. The bank started operation with 249 branches with its head organizing in Dhaka.
Most importantly it changed its dictum from class banking to figure banking. As there had
been poor banking edifice and then it has been failed to build sound banking system by local
entrepreneurs before unconventionality and the newly born independent country was down
with enormous economic problem, the new govt. of the country had to build the banking
substructure, accelerate the economic growth of this country and spread it country wide to
the banking service to the doorsteps of the pastoral poor so that they get official financial help
and contribute in the economic activities in Bangladesh.

Agrani Bank Limited surely is one of the largest nationalized commercial bank and take the
responsibility of expanding its networks in rural area by the time increasing. Presently this
bank has its 408 branches independently operating out of total 866 branches located in rural
areas applying as many as 29 programs directing rural people. In the annual report of
2007,said 866 branches are existed. It assisted above 29.59 lakh rural farmers including
small entrepreneurs and poor women with a sum of TK. 1419.53 core (2007). On the other
hand private ownership did never step forward such venture during pre-independence retro.
Also these non-profits banking activity, Agrani Bank Limited has been performing its 'usual
commercial activities increased from 1471 to 6012 during the period from 1972 to 2007. On
15 November’2007 Agrani Bank Limited transferred to Agrani Bank Limited by a Vendors
Agreement with government. All the Assets & Liabilities of Agrani Bank took over to Agrani
Bank Limited. All the shares of Agrani Bank Limited Purchased by the Government & now
the status of Agrani Bank Limited turn from Nationalized Commercial Bank to Government
Commercial Bank as a Public Limited Company. This improvement was done by
Management Advisory Team (MAT) so in pursuit of the long tenure goals improvement,
modernization and commercialization. In 2004, the Ministry of Finance appointed

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PricewaterhouseCoopers (PwC). 2.3 Subsidiary Companies of Agrani Bank Limited: The
Bank has 4 wholly-owned subsidiary Companies named follow

1) Agrani Exchange House (Pvt.) Ltd. in Singapore

2) Agrani Remittance House SDN, BHD in Malaysia

3) Agrani Equity and Investment Limited

4) Agrani SME Financing Company Limited.

Vision Statement of ABL

Agrani Bank is to become the best foremost state owned profitable bank of Bangladesh
working at international level of efficacy, quality, sound management, excellent customer
service and strong fluidity.

2.5 Mission Statement ABL:

The mission of ABL is to control ethically and equitably within the rigorous frame-work set
by our regulators and is to assimilate ideas and the lessons from best practices to improve
our business policies/protocols and procedures to the benefits of our customer and
employees.

Objectives of the ABL

Agrani Bank Limited is a state-owned commercial bank. The [principle objective in mind the
bank goals at excelling quality and expanded services. To fulfil its mission Agrani Bank
Limited has its main purposes as following

Winning at least 7% of share of deposits and 6% of share of loans and advances of

Bangladeshi market. By gaining competitive advantages through lowering overall cost
likened to that of competitors. Overtaking the competitors by providing all quality customer
service. By achieving technological leadership among the peer to peer group. Causative gross
domestic product. Maintaining a satisfactory deposit mix and contributing towards the
economic well-being of the country by focusing particularly on SME and agricultural sectors.
Strengthening research capability for ground-breaking products and services. To help to grow
free enterprise. Increase loan portfolio diversification and geographical coverage. Ensure
maximum level of advance recovery. Provide finance and specialized services to the export.
Boosting economic development.

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Introduction of Foreign Trade

The term foreign trade can easily be defines as a business activities that transcends national
boundaries. This can be happen between parties or govt.Generally through foreign exchange
trading both the exporter and the importer benifited.almost in every international transaction
there are some specific characteristics which has to maintain all the organization such as the
contract sales, details of delivery or tracking, agreed products or goods, requiring
documentation, covering insurance.

Foreign trade is an economic profitable for a country to focus in the production of that goods
which has less or lesser comparative advantages including spectrum of goods or
products,services,transferring of techlogies,investment and so on.

In this way there maintain a close relationship and bridge between the parties dealing the
trade. The bank which giving this kind of transaction defines as a rendering international
banking functions.

What is Foreign Exchange?

Where people can do transaction in a bank in foreign currency is named foreign exchange.
Any types of dollar operation/transactions are done by that section.Agrani Bank Limited
foreign exchange branch is working with the nut office inner division. The whole process is
being governed by Bangladesh Bank.

Definition of Foreign Exchange

It is such a process which renovates one state currency into another and transferal money
from one country to other countries.

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Foreign Exchange Services

Agrani Bank Limited is an execution of numerous kinds of services in international

transaction of their customers. Some are mentioning below –

1. L/C Opening:

Our country is largely an import oriented country. So here Letter of Credit is a vital document
which is issued by Bank. Two parties are not known to each other in international market.
Bangladeshi importers give an L/C to exporters of foreign state to give the guarantee of
payment. This bank is opening L/C in favour of their customers or clients.

2. Export processing:
When exporter of foreign file comes to Agrani bank, the bank assemble the payment from
foreign bank for its party. On that time Agrani Bank purchase bill only when their party
needs early cash.

3. Back to Back and Local L/C:

Another popular process where in against of export L/C Agrani Bank gives the facility to
open a Back to Back and Local L/C.

4. Dollar sale and purchase:

Agrani Bank Limited sales dollar against passport. Exchange rate is given by the Bangladesh
Bank which is changed on almost every day.

5. Loan Facilities
Facility of Loan is given to the clients to aid in foreign exchange. Different types of loan
facility are given below-

 LTR

 CC

 Sanction of L/C

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Customers:

Now Agrani Bank Limited is a well-known bank is foreign exchange business arena. It is
serving the business and people working overseas from the very beginning. The parties of
this Bank in foreign exchange are as follows-

Nitol Motors
NAVANA
Knittex
Panoroma
Zaber and Zubaier Fabrics

Functions of Foreign exchange department

Import

 Opening the documentation named letter of credit (L/C)

 Advancing bills
 Bills which is for collection
 Import loan and guarantees

Export

 Shipment especially pre-shipment advances

 Foreign bills purchasing
 Negotiating of bills(foreign)
 Export guarantees
 Confirming letter of credit
 Advance on late payments exports
 Advance against bills for assemblage

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Import:

Definition of Import L/C

If the bank commences to make imbursement to the foreign bank is normally known as
documentary credit on behalf of the importer.

A letter of credit is referred as tool issued by bank to a customer placing at the letters removal such
agreed sums in foreign coinage as specified. An importer is a country requests her/his bank to
expose a credit in foreign currency in favour of her/his exporter at a bank in the letters country.
Then the letter of credit is allotted against payment of total/volume by the importer or against
acceptable security.

Agrani Bank Limited provides several services to the importer of this state. To get import
facility the party must have mentioning requirements-

Existing deposit Account (CD)

IRC (Import registration certificate)

Mortgage

Tax identification Number.

Policy insurance

Forms of Letter of Credit

There are two forms of letter of credit (L/C).These are given below-

Revocable letter of credit

Irrevocable letter of credit

Revocable L/C

If the letter of credit need to amendment/ change of any clause or cancelled by the consent of
both the exporter and importer is normally known as revocable letter of credit.

Irrevocable L/C

In this case the letter of credit cannot be change/amendment without the agreement of the
importer and exporter which is known as irrevocable letter of credit.

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Types of letter of credit

They are classified into several types according to the technique of settlement employed. All
credits must evidently specify in key categories. They are given below-

Sight payment credit

Deferred payment credit

Acceptance credit

Transferable credit

Parties to a Letter of Credit

Letter of credits are issued by a bank at the appeal of an importer in favour of an exporter
from whom he/she has contracted to acquisitions some products or commodities. Both the
importer and the exporter and issuing bank are parties to the letter of credit. There are
actually one or more than one banks that are involving in several capacities and at various
steps to play a major role in the total operation of the credit.

 Negotiating Bank
 The Confirming Bank
 The Opening Bank
 The Advising Bank
 The Buyer and the Beneficiary
 The Paying Bank

Contents of the Letter of Credit Authorization (LCA)

Agrani Bank normally issued letter of credit authorization base on forms which is clearly
indicating the bank name and range of the bank responsibility under the credit. The contents
of the Letter of credit authorization are included following information:

Name of the buyer: Who is also known as the accounted since it is for his account that the
credit has been opened?

Name of the seller: Who is also identified as the beneficiary of the credit?

Moment of the credit: Which one should be the worth of the merchandise plus any shipping
controls determined to be paid underneath the credit?

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Expiration date: Which one is stated the latest date documents may be present? Including a
latest date, the buyer may exercise control over the time of shipping.

Documents required: Which will generally include commercial invoice consular or customer
invoice, policy insurance as credential.

General description of the merchandise: Which will briefly and in a general sense nicely
describes the merchandise enclosed by a letter of credit?

Documentary Letter of Credit (Import / Export)

This is such kinds of commercial letter which a bank issue on behalf of foreign seller
(exporter) according to the route of the (importer) purchaser. The documents that are shown
under are referred as export documents form the importer’s side. These are given below-

Bill of exchange

Exchange bill is that particular tool through which payment is caused in both trade internal
and international. The payment for the goods is recuperated by the seller through the medium
of a bill of exchange drawn on the buyer for the amount contingent on the contract. It is a
navigable instrument. There are basically five main parties involving in a bill of exchange.
They are-

Drawee

Drawer

Payee

Endorser

Endorsee

Bill of lading

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 Is a document of title to goods entitling the container to receiver the commodities as
recipient or endorsee and it’s with the assistance of that document on receipt form the
exporter that the importer takes the ownership of the goods form the carrying pitcher at the
port of journey's end.

Airway bill / Railway receipt

When the goods is going to be transported small in bulk or requiring fast delivery or those
are unpreserved in nature in the deals are in between the neighbouring countries then mode of
conveyances other than shipping may be resorted to far from the carriage of the commodities
Airways bill or Railway receipt takes the place of Bill of lading which is depending on the
nature of the carter.

Commercial invoice

On some basic point it is the seller’s bill for the produce. Including a description of goods,
the price of per unite in a specific location, total value of the goods, packing specifications,
terms of sales, letter of credit, bill of lading number etc. There are no standard forms far a
commercial invoice. The invoice is to made out by the seller under his sign in the name of the
buyer and it must be submitted in a group of at least 3 copies.

Insurance policy

In case the international trading the insurance policy is a must which is to cover the risk
assessment of loss on batches while they are on seas/roads/airways. The insurance is the
responsibility of the buyer (consignee) under

Certificate of origin

This is a certificate issued by a recognized authority in exporting country certifying the

country of origin of the goods. It is usually by the chambers of commerce. Some time, it is
certified by local consul or Trade Representative of the importing country as per terms of the
credit.

Packing list

The exporter have to prepare an accurate packing slope that showing item by item and the
contents of the shipment to enable it to the receiver of the shipment for checking the
contents of the goods, number and marks of the package, quality maintains, package net
weight, gross weighting, measurement etc.

Weighting and Measurement

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It is issued by recognized specialist (like chambers of commerce and industry) in exporting
country confirming correct weighting and dimension of of the goods exported.

Bill of Entry

It is a document which is contains of the particulars imported goods as well as the volume of
customs duty payable.

Payment against Documents (PAD)

Agrani Banks deals in documents and not in goods. If the shipping document against the L/C
is in order then the L/C opening the bank must have to payment to the foreign bank within
three days or seventy two hours according as Uniform Customs and Practice for
Documentary Credit (UCPDC 500 of revision of ICC).

When the shipping documents falls discrepancy, the L/C opening bank informed to the
negotiating bank within 7days.Andif the importer have not satisfactory funds in the bank
account then the bank payment to the foreign bank against the shipping documents.

Export

Export L/C is issued to a foreign bank favouring Bangladeshi exports through our banks
having correspondent a good relationship with them.

Agrani Bank provides different facilities to the exporter of Bangladesh. To get the most
export facility the party must have following requirements that are given below

 Current deposit (CD)

 ERC (Export registration certificate)
 Mortgage
 Tax identification number
 Insurance policy.

Agrani bank limited permits 50% to 70% loan against mortgage. Other than this the loan
facilities are –

 Back to back- 75% of export L/C

 Cash credit-90% in FDBP

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  Packing credit (PC)- 90% of export L/C

Service Provided by Bank against Export L/C

A. Advising of export L/C: The advising bank receiving the import L/C sent by the issuing
bank which is located abroad will advise the Letter of credit to the beneficiary without any
appointment or responsibly on their parts. It will see the following things only-

a. Legitimacy of L/C (Test agreed in case of Telex L/C and signature verified in case air mail
L/C.

Merchandise identified in the L.C is permitted and caused incorporated in the Letter of
credits are not against country’s protocols

Add Confirmation of Export L/C

Agrani Bank may include additional confirmation to export L/C where there are specific
training from the L/C issuing bank that are to do so. Supplementary confirmation of L/C
elasticities the seller a double guarantee of payment. Bank’s obligation of adding
confirmation:
a. Issuing Bank should be a renowned bank.
b. Credit line or arrangement with the L/C issuing bank.
c. L/C clause will acceptable to confirming bank
d. Approve from the capable authority for adding validation of export L/C
e. Confirmation burdens are to be improved as per following rules.

C. Negotiating of Export L/C:

 This need to be submitted by the exporter to Agrani bank for negotiation or collection
against the export L/C. The exporters go to submit the documents to the bank as per
prerequisite of bank. List of export forms is as follows-

Export L/C
Bill of exchange
Weight list

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Bill of Lading
EXP Form
Insurance document
Inspection Certificate
packing list
Invoice
Any other documents as per L/C
ERC (Export registration certificate)

Agrani Bank must inspect all the documents which is required in the credit with applied care
to learn whether they are settle with all the terms of the credit, the bank may be negotiate and
pay to the value of export bill to the exporter at-

 OD buying rate (Sight Draft)

 Appropriate rate (For DP Bill)
 Usage rate (For DA Bill

FDBC

If the exporters document is not purchase by Agrani Bank Limited is called Foreign
Documentary Bill Collection. At the growth data of export bill ABL collects the payment for
party. The collection process is same as LDBC..

1. FDBP: If the exporter needs money before the maturation of exports document. He/
She can be sale it to Agrani Bank Limited. It is called Foreign Documentary Bill
Purchase. The steps of FDBP are deliberated with an example. Let, Riaz Enterprise is
a well-known party of Agrani Bank Limited who exports shirt to China at $40000/-.
In AAA Ventures Ltd. buys it and their bank is Bank of China. The Steps are as
follows:

a. Agrani Bank Limited is receiving a L/C of $ 40000 from Bank of China.

b. Agrani Bank Limited inform Riaz Enterprise about L/C

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c. Riaz Enterprise what the money right now. So they sale to ABL and get 90% of payment.
ABL gives an FDBP No.

d. When bill is purchased, ABL creates a FDBP $40000×90%=36,000 will be given to Riaz
Enterprise right now.

e. When ABL receive payment from Bank of China, ABL charge Riaz Enterprise the
following cost-

Interest 13%
Postage charge Tk.800(SAARC),Tk.2000(Outside Asia)
Expend charge Tk.250
Handling charge Tk.500

f. After those cost is deducted from rest of 10% L/C amount. Riaz Enterprise get the
payment.

Back to Back L/C

It is very popular in Bangladesh. Now the question is what is back to back L/C? Defining it in
that way we can say Back to Back is the condition where the end user unlocks a Letter of
Credit in favour of the importers, the importers asks his bank for a companion Letter of
Credit to be issued to the suppliers. So, the original Letter of Credit performances as the
monetary basis for the second Letter of Credit Many of the banks do not look favourable
upon this category of financing of other choices are existing.

Kinds of Back to Back L/C

Back to Back Letter of Credit can be divided into two types:

 Foreign
 And local.

Foreign Back to Back L/C

Agrani Bank limited advice this kind of L/C. It opens against a master Letter of Credit to do
business on-board. Payment is given in other country.

2. Local L/C:

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Local back to back L/C is to be opened against a master L/C to pay local businessman. It is
happen in Business within Bangladesh. Local L/C can be separated into two types-

a) Cash L/C:

It is the L/C which normally opened for a bank acceptance. No master L/C is needed for that.
Sometimes people want a bank guarantee. It is one of them which can be at sight and may be
defer.

b) Local back to back:

It is generally used to do business in this state. It is opened in for against a master Letter of
credit. Agrani Bank limited receives a big amount of profit from this back to back L/C.
Agrani Bank is not a shadowy entity.They are same business people just like the importers
and exporters. They are in the business of offering money for the purpose of financing nice-
looking proposals. The proposals they mark can save considerable expenditure and Tim of
many international businessman. ABL can effort as the advising bank or the issuing bank.

Service Provide by Bank against Back To Back L/C:

 LDBC
 LDBP

In back to back Letter of credit the following limits of loan facilities are given-

 90 percent loan against master L/C

 75 percent can receive opening back to back L/C
 And the rest 15% is given when bank have export document.

For example against $ 7,00,000 master L/C, $ 13,80,000 loan facilities are given. $13,50,000
is given when L/C is opened $ 130,000 is given after receiving documents.

LDBC:

It is called Local documentary bill collection is a service of Agrani Bank limited to assemble
the bill of their parties for payment. When Agrani Bank limited is advising bank so that they
can collect the payment against the document. When in Back to Back L/C Agrani Bank
limited is advising bank. After the fruition period Agrani bank limited collect they payment
by LDBC.

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Steps in LDBC:

The procedures are as following

1. Exporter dowries the documents to Agrani Bank Limited for collection from importer
within 3 days of shipment. The document including-

a) .Bill of exchange

b) Delivery receipt

c) Packing list.

d) Commercial invoice

e) Country of origin.

f) Track receipt

1. Agrani Bank sends the documents to issuing bank for collection.

ABL use a supervisory number or LDBC No.And If back to back Letter of credit is not on
sight in the issuing bank wont not give the payment to Agrani Bank on receiving day date.
Therefore an acceptance is sent to ABL, saying that the payment will be made after
maturation period. It could be 90 days or 120 days etc.

2. Than Agrani Bank Limited got paid by pay order.

3. The Bank will send the pay order for clearing.
4. And after that the payment is received by Agrani Bank through clearing will collect
change and give the money to party.

charges
Advice charge 500tk
Commission 730-1000tk
Postage charge 20Tk

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LDBP:

Local documentary bill purchasing is a great deal of profit for Agrani Bank limited.In this
case,when the export documents comes to the party want to get payment without any waiting
for the maturation time. So Agrani Bank Limited, economics for that day and care interest.

For example, HometexTextile Mills Ltd. Exports finished Bedsheet to Philippine and buy
clothes from M/S Harmoni chemicals of Bangladesh. Here Hometex Textile Mills Ltd’s bank
is Agrani Bank bank and M/S SHarmoni chemicals bank is Agrani Bank limited. Therefore
the parties involved are as following:

Now if Harmoni chemicals want to get payment fully before the bill of maturation, ABL can
purchase the bill and thus it is called LDBP.

Steps in LDBP:

Very first a party brings to a document of back to back L/C to Agrani Bank limited. The
officer checks the documents and He/she emphasize on-

 Opening data.
 USD $ or other currency
 L/C No.
 Name of the two parties

Than a number is given (LDBP No) and as advice is sent to issuing bank.

Issuing bank sends an ‘advice of acceptance’ to ABL

Party marks following documents.

a) Bill of exchange.

b) Tracking receipt.

c) Commercial invoice.

d) Packing of the list.

e) Delivery of Challan

f) Delivering receipt.

g) Country of origins

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Next the party comes for vending the bill to Agrani Bank Limited with all the documents.
The party collects the voucher and obtain payment, rest of the amount which was not to be
purchased by Agrani Bank limited and the Bank cut the cost of party from it.

Reporting & Monitoring of Bangladesh Bank

The full control of foreign Exchange Bangladesh Bank has many controlling form all
information systems that for all commercial banks as well. Agrani Bank limited also has to
footmark on it. This Bank has many type of reporting forms and several IT systems to inform
Bangladesh Bank afor dollar transaction.

Declaration Form:

IMP form:

When it come to the issue of import Letter of Credit is done by a bank or ABL, IMP form is
desired to retain a record and advise Bangladesh Bank.

LCA form:

Not more than 6 copy and from 1st copy is used to report Bangladesh Bank. Second copy is to
get the delivery of product. Third and fourth copy is for CCI. Now this record kept by
Bangladesh Bank. Fifth and Sixth copy is kept in foreign exchange L/C file of ABL.

EXP Form:

It is an interesting issue that Exp form is used in export like IMP form is used in
import.Similiarly to get an Exp for party have to or must show L/C and contracts like
preformed statement commercial invoice etc. Exp form has to be confirmed by imposts and
then exporter vessels the properties.

MT Form:

Another form is TM form which is used to sell cash dollar. When cash dollar is going out
Bangladesh Bank need a reporting MT form?

Reporting by Internet:

Foreign currency transaction system:

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At the end of the month how much import/export/foreign remittance comes and goes out that
is reported by the software function. Firstly the officer will give the posting and then made a
schedule that is checked by foreign exchange head department that statements are created and
sent it to the Bangladesh Bank with different coloured pages.Thent he month end statements
should be done and submitted by 5 of a month, but remember wrong posting is punishable
worth only taka. 5,00,000 for the Branch head and Tk. 10,00,000 only for the officer.

L/C Monitoring System:

It is program in every single day which governed by Bangladesh Bank. When Letter of Credit
is opened foreign exchange officer spring the posting it in a 3 step Letter of credit monitoring
scheme by internet.

All the nursing, reporting is governed by Bangladesh Bank as it is a foreign precise impact on
the economic condition.

SWOT Analysis/Finding

SWOT Analysis is the strategic analysis of an organization’s acquaintance and impending in

the perspective of their strength, weakness, opportunity and threat. This actually analysis
used to the organization to make more on their current line of presentation and also predict
the future to advance their presentation in comparison of their competitors.

By doing SWOT Analysis, an organization can witness their existing position. It can also be
measured as an important means for making fluctuations in the strategic management of their
organization.

The acronym SWOT stands for:

SWOT is an abbreviation for the internal strength and weaken of a organization and the
environmental opportunity and threat can be facing that firm. Therefore if we consider
Sonali Bank as a business organization and analyse its strength, weakness, opportunity and
threat the scenario will be as follows:

Strength:

 Both Energetic and smart team work

 Good Relationship Management
 Competitive lending
 Cooperation
 Membership SWIFT
 Good banker-CRM
 Financially strong Position
 Strong position in the CAMEL rating game

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  Huge business arena
 Services that charges are relatively reasonable.

Empowered Work force

Weakness:

 Lack of motivation, training session and job rotation

 Lack of proper experienced employees that in junior level management
 Lack of own ATM services functions
 Common Tendency to consent the bank in quest of flexible setting
 Lack of proficient manpower in some department
 Limited advertising and publicity of bank’s products and activities
 Nonappearance of strong marketing actions
 Out-of-date Software and Hardware at Agrani Bank Motijheel branch
 Office atmosphere is not virtuous as private bank environment

Diversification

High charges of L/C

Opportunity:

Growth of sales volume

 Changing in political location

 Launching own ATM card amenities
 Enlargement of banking services into other different facilities
 Expansion online branches
 Experienced skilled Managers
 Different services of their FCB’S (Phone Banking/Home Ban king)
 Current card services of Standard Chartered Bank or other private Bank
 interest on daily basis on deposit offered by HSBC
 Appearance of new PCB’s
 Government has been controlling industrial credit
 Downturn of global economy
 Strengthening of competition in the manufacturing business

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Threats:

· Upcoming Banks or Branches

· Comparable products are offered by other banks

· Default Loans

Recommendation
Identify the above mentioned glitches during my internship; I would like to recommend from
bottom of my heart to some way to overcome these problems and obstacles. These are as
follows:

On clearing & local remittance sections:

 Agrani Bank should make a list of database to maintaining their registry records in to
the Computer. Only a ‘search’ command they may find out their essential clearing
evidence.
 Agrani Bank should open their branches in the business location such as EPZ, port to
afford them a prompt services to importer and exporter.
 ABL can give consideration to interest local manufacturer for conclusive them about
local L/C.
 Where computer mains every circle of lives together with banking activities most of
the ABL’s employees is still not skilled on computer literacy. So near future the
management should give an attention to the computer training to their employees.
 They can make a database /search for other solution for preparing their debit and
credit voucher. To do this an adopting a better explanation will make their work
easier.
 Rapid attention should be given to the FDR customers if the bank thinks that they
does not want to lose new customer only then.

Conclusion
Now a days many new commercial banks have been established in the last couple of years
and these banks have made the banking and online banking sector very competitive and
trustworthy. So, now the banks have to establish their process and do their operations
rendering to the need of the marketplace. The principle task for banks, to endure in this
competitive situation is by managing its possessions and liabilities in an well-organized way.

As an internee student of Agrani Bank Ltd at Motijheel Branch, I have really enjoyed my
three months internship from the side of knowledge to the side of practices viewpoint. I am

25
self-assured that three months internship programme in Agrani Bank limited will certainly
help me to understand career in the job market. But during my internee it was not much
possible for me to go to the complexity of branches’ sections methodically because the short
span of time.Agrani Bank Limited (ABL) is the widely prolonged Bank’s in Bangladesh. Due
to the risk of deposit shortage, this Bank may diminish its different kinds of unnecessary
expenditure and should exploit profit through induction new systems and get different
people’s belief.

Appendix

Weekly journal- 01

9th-13th June

Opening a bank account

It was really an amazing experience for me so far working as an internship officer in the
Agrani Bank limited. In the very first day I went to the office timely at sharp 10am.then the
AGM of the bank sent me to the officer who is expert at opening a bank account. She was
very polite and co-operative. Before that I understood that Bank account is a contractual
agreement between a bank and its customers, allowing the customer to use bank service for a
fee. Account maybe established in the name of individuals or firms. There are two types of
bank account. They are-operating and non-operating bank account. She showed me the
procedure how to open a bank account and when a customer came to open their account I
observed each and every thing the customer and the officer did. At first she gave me to read

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out an account opening application form book for individual.in the first page there was a lot
of rules and regulation for opening a bank account. All the rules are given below in the image

Then the individual person has to fill up the form step by steps and those steps are-

Account opening application form (individual)

 account name
 tittle of the account
 Purpose of opening account
 Whether the customer maintains account in other bank
 Personal information
 Attested photo
 Name of a/c holder
 Signature

Personal information

 Tittle of A/C
 A/C operators name
 Father, mother or spouse name
 Nationality, date of birth
 Gender, occupation
 Address, phone number etc.

Account opening form (nominee information)

 Tittle of a/c
 A/c no.
 nominee’s name
 other personal information

Estimated level of potential transaction

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Description Number of potential Total amount of Maximum amount
monthly deposit potential monthly of a single depsit
deposit
cash

Transfer

Foreign inward
remittance

Grand total

description Number of potential Total amount of Maximum amount

monthly withdrawal potential monthly of a single
withdrawal withdrawal
cash

transfer

Foreign outward
remittance

KYC profile form (usable only to open individual A/C)

 tittle of the account
 nature of the account
 customer’s occupation
 potential monthly income of the customer
 source of funds
 documents collected to ascertain the source of funds
 credentials

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Take cheque book and savings book from the bank

Customer will submit account opening form to officer of bank. The officer will give a
him/her a book. The customers can savings money by that book. When they need money they
will draw cheque and submit cheque to counter bank. That times the customer het money
from bank counter.

Continue transaction in bank

When account holder get cheque book savings book then he/she continue transaction in bank.
Account holder need money from bank. That time they will draw cheque and submit to bank
counter.

Then my supervisor Sharmin madam told the importance of opening bank account. Maintain your
financial transaction through bank is safest and wiser decision. Various industries maintain their
financial transaction by bank. Industries are also maintain their financial foreign transaction by
bank.besides,industries give salaries to the employees by cheque.universites of our country also give
salary to the faculty members by cheque.So,accounts opening are very important.

Precaution

Sharmin madam told me that a banker should take the following pre caution while opening an
account in his name of a partnership form:

 number of partners
 opening of an account
 the partnership letter or mandate
A partner authorized to operate the firm’s account cannot delegate his/her authority to another
person without the consent in writing of all other partners.

Conclusion
It was really a pleasure for me working under sharmin madam, my supervisor. She showed me A-Z
knowledge of opening an account procedure. Besides some customers came to sharmin madam for
opening an account and that time I observed all the things that my supervisor instructed.so this is all
about my first week journal. The next week I will make a journal about clearing sanction and
authorization posting.

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Journal-2

Date: 16th-20th June, 2019

After successfully completing the part of bank opening account I was sent to the cheque issue
department. Here I met Mr.Palash who is in charge of clearing the cheque. He was so co-
operating that I had understood each of the things he told me and showed me practically.

Firstly he told what cheque, clearing is and the processes. Now I am going to describe all the
things that are given below-

A cheque is a written order from an account holder, instructing their bank to pay a specified
sum of money to a named recipient. Cheques are not legal tender but are legal documents and
their use is governed by the Bills of Exchange.

Check clearing is the process of moving money to complete a payment made by check. The
process can take several days, or it may be almost instant, depending on how the recipient
handles the payment.

Moving funds between banks

In most cases, the recipient (or payee) submits the check to their bank, and the bank collects
funds from the check writer’s bank.

Internal payments and check cashing

Funds sometimes move quickly. For example, if the check writer and the payee both use the same
bank, internal transfers are faster. Like if you cash a check at the check writer’s bank, the funds come
out of that account immediately.

When all goes well, the process is smooth. But depending on your perspective, the timing can be a
problem:

If you received the check, you’re probably in a hurry for it to clear.

If you wrote the check, you might be hoping for a few extra days to get money into your account.

Logistically, the receiving bank or credit union (where the payee deposits or cashes the check) sends
the check to the bank that the funds are drawn on, or to a clearinghouse. Banks originally sent
physical checks to each other, but they increasingly use images of checks for improved efficiency.

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Assuming funds are available and there is no problem with the check, the paying bank transfers
money to the receiving bank.

Checks You Write

 How long does it take a check to clear after you write it?

Mr.Palash sir told me that it depends on several factors. In most cases, checks hit your
account two to three days after the payee receives your payment. Until the check clears, it is
essentially just an IOU—a promise to pay, which you might not fulfil. But the clearing
timeline is compressing since the Check 21 Act, which enables banks to handle a greater
number of checks electronically.

Using Checks You Receive

If you receive a payment by check, you're probably antsy to use the money: You might need
it for expenses, or you might have doubts about whether or not the check will bounce. So
how long do you have to wait for the check to clear?

“Available” does not mean cleared

When somebody writes you a check, it has "cleared" when the check writer’s bank transfers
money to your bank and you can spend the funds. However, it's not always clear if or when
the money arrives (or not). Your bank often allows you to spend money from deposited
checks—and even withdraw cash—before a check clears.

How long should you wait before assuming a check has cleared?

Mr. Palash told me it’s wise to be conservative about checks you're unsure of. With checks
written from major banks, you'll often (but not always) find out within a few days if there's a
problem. When checks come from overseas accounts, things can take much longer. Your best
bet is to contact your bank and get a firm answer on the status of the check. Explain your
concerns, and ask whether or not you're taking any risk if you spend the money.

Journal-3

23rd – 27th, June.2019

Cheque Authorization

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In the 3rd week I have learned about the authorization of cheque issue. The name of my Supervisor
was Mr.Mizan. From his very busy schedule he showed me how to do this process very accurately
through the software. But before that some certain basic formats are given below for the
authorization-

 Cheque handover to the officer, take the cheque and go the software for the online
authorization
 The officer check the A/C holding number
 Check the A/C name
 Money he/she want to withdrawal
 Online number matching which is 7 digit number
 Check will expire after the first 6months of the cheque issue
 STA-short term account,CD- current deposit

Authorized cash transaction

These are the terms where A/C holder wants to withdrawal the amount. If the
amount more than 5lakh then the bank will call the A/C holder for verification.
In case of deposit
 Officer check the cash holder name
 Amount
 Phone number

If A/C holder is named of two people then the officer have to check the both person’s name
and signature.in this foreign exchange branch there are 5 officers who are taking care of this
sector.

Journal-04

Description

First of all, I want to thank you Madam for giving me the opportunity to share my internship
experience with you. It is actually a great pleasure for me. Now I am sharing the experience
with you of my second week of my office.

Work Done

This week, I seat with one of the supervisors who is in charge of Human Resource
Department. The main task of HRD-1 is to do administrative tasks. There are six wings, two

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units and one general section under HRD-1. There was a little bit of pressure of work in the
fourth week.

Learning & Achievements

Day-01: We were taken to the planning, promotion and transfer wing and recruitment and
outsourcing wing. Here we learnt how HRD-1 plans for their employees, in which basis they
give promotions to their employees and how to transfer their employees in their other
branches for different purposes. And the task of recruitment and outsourcing wing is to
recruit necessary no. of employees for the organizations and also outsourcing employees
like Economic Advisor, Cleaners and Security Guards on contract basis.

Day-02: We were taken to the Recognition and Reward wing and also to the Organization
and Development wing. Here we observed and learnt how HRD-1 recognizes its hardworking
employees on the basis of some criteria’s and give them reward. Besides, the task of
Organization and Development wing is to figure out how they can make their employees
more effective and skillful and how they can develop them for the betterment of the
organization.

Day-03: At the third day, we were taken to the Performance and Regulation wing where to
try to improve the performance of the employees and try to settle the dispute between
their employees if any occur.

Day-04: At this day, we were taken to the Enterprise Resources Plan (E.R.P) unit and Branch
office Services Unit (B.O.S.O) where we learnt how they plan for their resources and what
services does branch unit offers.

Day-05: We were taken to the general section of HRD-1 department. Here, The HRD-1 keeps
personal profile of their employees.

Notable Incidents

The HRD-1 of Agrani Bank is very much unbiased and strict regarding their works. They do
the administrative tasks very careful and sincerely.

Journal-05

Description

First of all, I want to thank you Madam for giving me the opportunity to share my internship
experience with you. It is actually a great pleasure for me. Now I am sharing the experience
with you of my second week of my office.

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Learning and achievements

In the 5rd week I have learned about the Lien of FDR and Saving Certificate issues. The name
of my Supervisor was Mr. Rahat. From his very busy schedule he tried to make my concept
clear about lien of FDR and Saving certificate form or Sanchaipatro.First of all he told me
what does it mean and how it works-

A certificate of deposit (CD) is a savings certificate with a fixed maturity date and specified
fixed interest rate that can be issued in any denomination aside from minimum investment
requirements. A CD restricts access to the funds until the maturity date of the investment.

How do CDs work?

Certificates of deposit are a secure form of time deposit, where money must stay in the bank
for a certain length of time to earn a promised return. A CD, also called a “share certificate”
at credit unions, almost always earns more interest than a regular savings account.

National Saving Certificate

NSC is a fixed income investment product, which means one earns a predefined interest
during the period of holding. ... At the time of maturity, the holder of the certificate submits
the certificate to the Post Office and gets the amount invested plus the interest.

How to Buy

You need to fill the NSC application form available at the post office.

Carry original identity proof for verification at the time of buying.

You can buy the certificate with cash, cheque or demand draft drawn in favour of the
postmaster of the post office from where the NSC is being bought

Here is the different form of savings certificate and their profit percentage

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Journal-06

In this weak my supervisor send me to the Foreign Exchange Department and this was a
whole new place to me and there are lots of officer working on that floor. Here first of all I
was introduced by the department manager Mr.Shafayat Sir. He introduced me what is the
working procedure of this department. He suggested me to buy a book named “Documentary
Credit” where I can find a summary of the credit system function. Then the next day he sent
me to a senior officer who showed the working procedure of this branch.

Mr.Saleh( Senior Officer of Agrani Bank Foreign Exchange branch) make me understand of
the basic knowledge about Letter of Credit system and the procedure.

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Letters of credit accomplish their purpose by substituting the credit of the bank for that of the
customer, for the purpose of facilitating trade. There are basically two types: commercial and
standby.

Commercial Letter of Credit

Commercial letters of credit have been used for centuries to facilitate payment in
international trade. Their use will continue to increase as the global economy evolves.

A commercial letter of credit is a contractual agreement between a bank, known as the

issuing bank, on behalf of one of its customers, authorizing another bank, known as the
advising or confirming bank, to make payment to the beneficiary.

Elements of a Letter of Credit

 A payment undertaking given by a bank (issuing bank)
 On behalf of a buyer (applicant)
 To pay a seller (beneficiary) for a given amount of money

Step-by-step process:
 Buyer and seller agree to conduct business. The seller wants a letter of credit to
guarantee payment.
 Buyer applies to his bank for a letter of credit in favour of the seller.
 Buyer's bank approves the credit risk of the buyer, issues and forwards the credit to its
correspondent bank (advising or confirming). The correspondent bank is usually
located in the same geographical location as the seller (beneficiary).
 Advising bank will authenticate the credit and forward the original credit to the seller
(beneficiary).
 Seller (beneficiary) ships the
goods, then verifies and develops the
documentary requirements to support the
letter of credit. Documentary
requirements may vary greatly depending
on the perceived risk involved in dealing
with a particular company.

Bill of Lading

A document evidencing the receipt of

goods for shipment and issued by a

36
freight carrier engaged in the business of forwarding or transporting goods. The documents
evidence control of goods. They also serve as a receipt for the merchandise shipped and as
evidence of the carrier's obligation to transport the goods to their proper destination.

Agrani Bank’s top Parties are-

 Zaber and Zubaier Fabrics Ltd

 Nitol Motors
 Navana
 Knittex
 Panoroma Apparels Ltd etc…

Journal-07

In this week I met with Mr. Shafiq sir who is a senior officer really helped me a lot about
different interesting things about credit system. Agrani Bank deals with mainly two types of
LC. One is Import lc and the other one is foreign Lc.

Back to Back LC

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Back-to-back letters of credit consist of two letters of credit used together to finance a
transaction. A back-to-back letter of credit is usually used in a transaction involving an
intermediary between the buyer and seller, such as a broker, or when a seller must purchase
the goods it will sell from a supplier as part of the sale to his buyer. Back-to-back letters of
credit are actually made up of two distinct LCs, one issued by the buyer's bank to the
intermediary and the other issued by the intermediary's bank to the seller. With the original
LC from the buyer's bank in place, the broker goes to his own bank and has a second LC
issued, with the seller as the beneficiary

Import LC

An import Letter of Credit is an unconditional undertaking, given by a bank (the. "Issuing

Bank") at the request of their customer (the Applicant or Importer) to pay the Beneficiary (or
Supplier) against stipulated documents, provided all the. Terms and conditions in the Letter
of Credit are complied with.

Margin depends on-

 Relation with the parties

 Company background
 mortgage

Thank You
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