EXIM Bank Bangladesh Ltd. Shariah Based Islami Bank.
Economic history shows that development has started everywhere with the banking system and its contribution towards financial development of a country is the highest in the initial stage. Schumpeter (1933) regarded the banking system as one of the two main agents (other being entrepreneurship) in the whole process of development. Keynes also emphasized the role of banking services in the process of economic development of a country, while she was addressing the House of Lords regarding International and Monetary System (quoted in Sharma 1985). Moreover Alexander Gerashchenko (1962) in his popularly known “Gerschenkron’s Hypothesis” explained the banking system as the key role player at certain stage of the industrialization process.
The word ‘Bank’ comes from the word ‘Bancus’.Generally by the word “Bank” we can easily understand that the financial institution dealing with money. But there are different types of banks like Central Banks, Commercial Banks, Savings Banks, Investment Banks, Industrial Banks, and Co-operative Banks etc. But when we use the term “Bank” without any prefix, or restriction, it refers to the Commercial banks. Commercial banks are the primary contributors to the economy of a country. So we can say Commercial banks are a profit-making institution that collects the deposits from the surplus unit of the society and then lend the deposits collected to the deficit unit of the society. So the people of the society and the government are very much dependent on the commercial banks as the financial intermediary. As banks are profit-earning concern they collect deposit at the lowest possible cost and provide loans and advances at higher. The differences between two are the profit for them.
Modern banking system plays a vital role for a nation’s economic development. Over the last few years the banking world has been undergoing a lot of changes due to deregulation, technological innovations, globalization etc. These changes in the banking system also brought revolutionary changes in a country’s economy. Present world is changing rapidly to face the challenge of competitive free market economy. It is well recognized that there is an urgent need for better, qualified management and better-trained staff in the dynamic global financial market. Bangladesh is no exceptions of this trend. Banking Sector in Bangladesh is facing challenges from different angles though its prospect is bright in the future.
Internship program is essential for every Business Administration student. In other words it is mandatory for the student of any professional degree. It helps them to get acquainted with the real life situation. To acquire some practical knowledge it’s a best way. This internship report is based on the author’s internship experience in EXIM Bank Ltd, Malibagh Branch, Dhaka-1217.
Bachelor of Business Administration is a specialized course. Southeast University arranges a four years specialized course to provide some efficient graduates in this business sector of the country. The whole course design is not limited within the theoretical boundary but it also extends to the practical exposure through the internship program. After completion of 4 years in the BBA program of the faculty of business studies, department of Finance, Southeast University, three months organizational attachment is must. So the preparation and submission of this report is partial requirement for the completion of the Bachelor of Business Administration (BBA).This report is outcome of the two months long internship in out of three months program conducted in Exim Bank Limited, one of the reputed private commercial banks of the country .While working operating procedures carried out by the bank were observed and supportive effort with the trainers, bankers & under the guidance of my faculty respective supervisor Md. Shamsul Arefin.
This internship program has been prepared on the basis of my practical experience in the general banking along with the foreign exchange division activities. I really worked hard about the foreign exchange division. This report will also provide the essential information’s how the private commercial banks contribute for the economic development of the country.
I have tried my best to utilize the opportunity to enrich my knowledge on banking system and incorporate it with the theoretical course.
The internship program which is necessary to complete the BBA program exercise a significant importance as it enables a student to familiar with the practical business activities. The student work closing with the people of an organization and learn about the function of that organization. This program enables a student to develop his analytical skill and scholastic attitude.
Classroom learning is all about theoretical and internship learning is all about practical. Characteristics of internship learning can be thought of as ‘touchable’ and ‘viewable’ whereas classroom learning is conceptual in nature. Here lies the importance of internship. It helps students to compare between classroom learning, knowledge and practical reality at the Community level. Just prior to joining the job it acts as a tool to accelerate the new graduates in their professional life.
- To obtain practical experience about foreign exchange activities by involving Internship program.
- To build professional carrier in the banking sector as well as any financial institution.
- To know about the foreign exchange activities in Bangladesh.
1.5 RATIONALE OF THE STUDY:
Bangladesh is one of the underdeveloped countries in the world. The company of the country has a lot left to be desired and there are lots of scopes for massive improvement. In an economy like this, banking sector can play a vital role of an intermediary can mobilize the excess fund of surplus sector to provide necessary finance, to those sectors, which are needed to promote for the sound development of the economy.
Like in many other emerging market economies, commercial banks in the Bangladesh economy are to face an increasing competition for their business in the coming days. Their business will no longer remain easy as they had earlier the real change in the banking business has started to come with govt.’s decision to allow the business in the private sector in the middle of the eighties. This report is an effort to reflect a clear idea about the strategies, activities and performance of EXIM Bank Bangladesh Ltd. Regarding Foreign exchange banking practices in Bangladesh- A case study of EXIM bank Ltd(Malibagh branch), Dhaka-1217.
1.6 Objectives of the study:
The objective of the study is to gather practical knowledge on banking system and operation. This internship gives us a chance to co-ordinate with the theoretical knowledge and the practical experience and to evaluate theForeign exchange banking practices in Bangladesh- A case study of EXIM bank Ltd. And also the performance of general banking this Bank. The following are of objectives for internship in bank:
1.6.1 General Objective
The general objective is to prepare & submit a report on the topic of “Foreign exchange banking practices in Bangladesh- A case study of EXIM bank Ltd.” The primary purpose of this report is to get an idea about the relationship between customers & Exim bank Limited, a second-generation bank of the country and make a analysis of foreign exchange practices on the banking sector of Bangladesh.
1.6.2 Specific Objective
- To apply theoretical knowledge in the practical field.
- To be familiar with the banking management system.
- To have exposure to the functions of general banking section.
- To analyze the service procedure of Exim Bank Ltd.
- To evaluate the performance of foreign exchange division.
- To come up with a SWOT analysis of Exim Bank.
- To know the return on export, import & remittance.
- To familiarize the working hours, values and environment of the bank.
- To analyze the financing system of the Bank and find out whether the bank needs any improvement.
- To familiarize different rules and regulations of export and import formalities.
- To find out the contribution of private commercial banks for the economic development of the country.
1.7 Scope of the study:
During these three months internship program in EXIM Bank Ltd, Malibagh Branch almost all the desks have been observed. For that purpose I needed to get information from Exim Banks Head Office. But I was appointed into EXIM Bank Ltd, Malibagh Branch, Dhaka-1217. There I had to work in foreign exchange & general banking department desks as a routine work. It was difficult to collect the information relevant my report, because the people of this Bank was so busy with their duty that they cannot be able to give me much time. Here I try to cover the activities and rules and regulation related to my report.
1.8 Limitations of the study:
Although I have obtained wholehearted cooperation from employee of EXIM Bank Ltd, Malibagh branch but they were extremely busy. So they were not able to give me much time, as they and I would like. Besides, total duration of internship is not sufficient to give me more than a superficial idea of the functioning of the various departments. I was rotated through on the way of my study. I have faced the following problems, which may be termed as the limitation/short coming of the study. These are as follows:
- It was very different to collect the information form various personnel for the job constrain.
- Bank policy was not disclosing some data and information for obvious reasons.
- Due to time limitation many of the aspects could not be discussed in the present report.
- Since the bank personnel where very busy, they could provide me little time.
- Another significant problem faced during the preparation of this report was the contradictory explanation of a single subject by different employee.
- Because of the limitation of information some assumption was made. So there may be some personal mistakes in the report.
- The time 2 months out of 3 months only, which is in sufficient to know all activities of the branch are prepare the report.
- The insufficiency of information was not adequately available. Moreover, the sources were hazardous and in-discipline. Therefore the providence of insufficient information came out as a constraint.
- Almost all the personnel were apparently too busy to assist us with their valuable support.
- Long internship was not able to provide us with adequate time to impose more databases sophistic to the formulation of this report.
- During the internship, in many part of our enquiry, our performance was hindered by some sort of inexperience of some of the personnel of the bank due to lack of orientation to the procedure of such internees.
- There was no remuneration for our internship that demoralizes our motivation to keep consistency in our extensive study.
- Sometimes we had to face unexpected conduct on the part of some of the personnel that was supposed to be a little bit more cordial.
- The study was limited only to the EXIM BANK Limited.
- Another Problem was time constraints. The duration of my work was only three months. But this time is not enough for a complete and fruitful study.
- Getting financial information is very hard job.
- The Bank was a busy one having heavy rush of people, whom officers need to deal with. So allocation of time for an internee is very much tough for the officers of the bank.
- Although there are a lot of limitations, I have tried to put my best effort as far as possible to prepare the report.
1.9 Methodology of the study:
The planned methodology of the research is given below:
1.9.1 (A) Sources of data.
Data regarding the completion of this research will be collected from both primary and secondary sources.
The core information and data source is expected to be primary, because it will involve interviewing officials of Exim Bank, Malibagh branch to get detailed information about the innovative products they offer. The officials who will be interviewed are:
- Branch Sales & Service Manager
- Sales Team Manager
- Cash Manager
- Personal Financial Consultant
(1) Primary sources.
- Practical desk work
- Face to face conversation with the officer
- Direct observations
- Face to face conversation with the client
- Annual reports of Exim Bank Ltd.
- Files & Folders
- Memos & Circulars
- Daily diary (containing my activities of practical orientation) maintained by me,
- Various publications on Bank,
- Different circulars sent by Head Office and Bangladesh Bank.
1.9.2 (B) Questionnaire design, data collection and answer.
As the internship program involves constantly interacting with officers, I am able to manage some answers of the questions. The questionnaire is made by me of some general questions. This will try to measure the quality of services in comparison to other multinational banks of Bangladesh. Most of the information will be collected by interviewing of the bank officials.
For several years annual report of various schemes this section of EXIM Bank Ltd, Malibagh Branch, and Head Office is a big source. While conducting the study both primary and secondary information were explored. But hardly any primary information could be found. In the absence of primary information the majority of the study has been based on secondary information.
Profile of the Organization
2.1 Historical Background of the Bank:
Export Import Bank of Bangladesh Limited is a public listed scheduled bank categorized in private sector and established under the ambit of Bank Companies Act, 1991 and incorporated as a public limited company under the Companies Act, 1994 on June 02. The Bank started commercial banking operations effective from August 03, 1999. The Bank converted its Banking Operations into Islamic Banking based on Islamic Shariah from traditional banking operation in July 01, 2004 after obtaining approval from Bangladesh Bank.
During the span of time the Bank has been widely acclaimed by the business community, from small entrepreneurs to large traders and industrial conglomerates, including the top rated corporate borrowers for forward- looking business outlook and innovative financing solutions. With a few of the Company’s activities and program on the basis of Islamic Shariah, within this period of time it has been able to create an image of responsibility for itself and has earned significant reputation in the country’s banking sector. Within an operative period as eight years, the bank has arrived at a strong financial and business position by expanding its market share compared to its contemporaries and to some extent to the 2nd even 1st generation banks of private sector. In edition, the Bank has also made a significant contribution to the national economy under the prudent leadership and untiring support of the member of the Board of Directors, who are leading business personalities and reputed industrialists of the country.
As a matter of policy, the Bank conducts its business on the principles of Mudaraba, Murabaha, Bai-Muazzal and hire purchase transaction approved by Bangladesh Bank. The Bank is one of the interest-free Shariah-based Banks in the country and its modus-operandi is substantially different from those of other commercial banks.
The gradual improvement in the overall policy environment has enabled Bangladesh to improve its economic performance in recent years. Successive governments in Bangladesh have been confronted with the problem of stimulating the economic growth rate in a country where a substantial segment of the population lives below the subsistence level. Economic policies are still guided by five year plans. The prospect of economic growth in Bangladesh in the near future will depend on the pace of economic reforms and the quality of macroeconomic management. Accelerating the rate of economic growth will require higher levels of investment. This will primarily come from private flows of foreign direct investment. This can be established by reforming the financial system and continuing the process of financial deepening.
The banking industry in Bangladesh is one characterized by strict regulations and monitoring from the central governing body, The Bangladesh Bank. As the government is often the owner and regulator as well as the supervisor and customer of a bank, there has been ample opportunity for mismanagement over the years. The banking sector is plagued with a lack of credit discipline, archaic loan recovery law, corruption, inefficiency, overstaffing, etc. Several reform measures of the financial sector have been taken to improve the situation. Relative stability achieved by the support extended by both the central bank and the Government of Bangladesh in the past has restored public confidence in the country’s banking sector. Moreover, Nationalized Commercial Banks (NCBs) and old generation Private Commercial Banks (PCBs) would have to lower the rate of NPAs in their portfolios. Failure to do so would mean re-capitalization, at least for the NCBs. This may in turn lead to a further drain on the limited resources of the Government of Bangladesh at this time or in the immediate future this recapitalization would not be feasible. With these conditions in place, the World Bank anticipates the likelihood of a situation where the ever-increasing burden of non-performing loans and growing rate of debt servicing would place the economy under enormous strain and result in a crisis in the banking sector in the long term.
The main concern is that currently there are far too many banks for the bank to sustain.
As a result the market will accommodate only those banks that can transpire as the most competitive and profitable ones in the future.
Export Import Bank of Bangladesh Limited that was named before as Bengal Export Import Bank Ltd. being newly formed commercial bank of the country with a distinctive identity was opened in 3rd August 1999,with the permission if Bangladesh Bank under Banking Companies Act-1991. The bank received the certificate of incorporation #C-37884(2164)/99 under the company act of 1994.
Exim Bank Limited was established in 1999 under the leadership of Late Mr.Shahjahan Kabir, founder chairman who had a long dream of floating a commercial bank which would contribute to the socio-economic development of our country. Mr.Nazrul Islam Mazumder became the honorable chairman after the demise of the honorable founder chairman respectively.
The bank has migrated all of its conventional banking operation into Shariah based Islamic banking since July/2004.
Currently the major financial institutions under the banking system include
- Bangladesh Bank
- Commercial Banks
- Islamic Banks
- Leasing Companies
- Finance Companies
Figure 1: Percentage different banking Sectors in Bangladesh
The number of banks in all now stands at 49 in Bangladesh. Out of the 49 banks, four are Nationalized Commercial Banks (NCBs), 28 local private commercial banks, 12 foreign banks and the rest five are Development Financial Institutions (DFIs).
Generally, the commercial banks and the finance companies provide
Myriad of banking products/services to cater to the needs of their customers. However, the Bangladeshi Banking industry is characterized by the tight Banking rules and regulations set by the Bangladesh Bank. All banks and financial institutions are highly governed and controlled under the Banking Companies Act 1993. The range of banking products and services is also limited in scope. With the liberalization of markets competitions among the banking products seems to be growing more instances each day. In addition, the banking products offered in Bangladesh are fairly homogeneous in nature due to the tight regulations imposed by the central bank. Competing through differentiation is increasingly difficult and other banks quickly duplicate any innovative banking service.
These private banks are popularly known to public as First Generation Banks (9 banks opened during 1982-88), Second Generation banks (13 banks opened during 1992-96) and Third Generation banks (13 banks opened during 1999-2001).
The name of all the banks operating in Bangladesh and their date of incorporation are given below:
|Name of bank||Date of incorporation||Name of bank||Date of incorporation|
|Nationalized commercial banks||Specialized banks|
|Sonali bank Ltd||1972||BKB||1972|
|Janata Bank Ltd||1972||BSB||1972|
|Agrani Bank Ltd||1972||BSRS||1972|
|Rupali bank Ltd||1972||RAKUB||1987|
|Private Commercial Banks|
|1st generation private banks||2nd generation private banks|
|AB bank Ltd.||1982||Eastern bank Ltd||1992|
|Utara bank Ltd||1983||National credit and commerce bank Ltd||1993|
|National bank Ltd||1983||Prime bank Ltd||1995|
|Islami bank Ltd||1983||Dhaka bank Ltd||1995|
|IFIC bank Ltd||1983||Southeast bank Ltd||1995|
|United Commercial bank Ltd||1983||Al-Arafa Islami Bank Ltd||1995|
|The City bank Ltd||1983||Social Investment bank Ltd||1995|
|Pubali bank Ltd||1984||Dutch-Bangla bank Ltd||1996|
|Al-Baraka bank Ltd||1987|
|3rd generation private banks||Foreign commercial banks|
|Bangladesh Commerce Bank Ltd||1998||Standard Chartered bank||1948|
|Mercantile Bank Ltd||1999|
|Standard bank Ltd||1999||American Express Bank Ltd||1996|
|One Bank Ltd||1999||State Bank of India||1975|
|Exim Bank||1999||Habib Bank Ltd||1976|
|Premier Bank Ltd||1999||Muslim Commercial bank||1994|
|Mutual Trust Bank Ltd||1999||National Bank of Pakistan||1994|
|First security Bank Ltd||1999||CITI Bank N.A.||1995|
|Bank Asia Ltd||1999||HSBC||1996|
|The Trust bank Ltd||1999||Shamil Islami Bank||1997|
|Jamuna Bank||2001||Credit Agricol Indosuez||1997|
|Shahjalal Islami Bank||2001||Hanvit Bank||1999|
|Bank of Ceylon||2007|
Source: Bangladesh Bank.
2.2 Key Function of EXIM Bank:
Like other commercial banks like EXIM bank performs all traditional banking business including introduction of a wide range of caving and credit products, retail banking and ancillary service with the support of modern technology and professional management, but the Exim Bank Bangladesh Limited emphasizes its function in export and import trade handing and financing of export oriented industries will enhance wealth, quotes more employment opportunities helps formation of capital and reduces in balance in the balance of payment in the country
2.3 Social Commitment:
The purpose of the banking business is, obviously, to earn profit, but the promoters and the equity holders of EXIM bank are aware of their commitment to the society to which they belong. A chunk of the profit is kept aside and/or spent for socio-economic development through trustee and in patronization of art; culture and sports of the country and the bank want to make a substantive contribution to the society where we operate, to the extent of our separable resources.
2.4 Corporation Culture:
This bank is one of the most disciplined Bank with a distinctive corporate culture. Here we believe in shared meaning, shared understanding and shared sense making. Our people can see and understand events, activities, objects and situation in a distinctive way. They mould their manners and etiquette, character individually to suit the purpose of the Bank and the needs of the customers who are of paramount importance to us. The people in the Bank see themselves as a tight knit team/family that believes in working together for growth. The corporate culture they belong has not been imposed; it has rather been achieved through their corporate conduct. The Bank achievement has been possible because of the able leadership; dedicated and committed services provided by all levels of management and staff which all possible because of a good and quality full corporate culture.
2.5 Communications Strategy of EXIM Bank:
EXIM Bank is a third generation bank. It has converted into Islami Banking in July 01, 2004 with the approval of Bangladesh Bank. EXIM Bank mainly emphasis on public relation out of four communications strategy. EXIM Bank does following activities for their market promotion and advertising.
- When they open new branch, send letter to the elite persons, offices and industries in that area for opening account in their bank.
- Every year they arrange get together for their loyal customer in Dhaka and Chittagong. For that reason EXIM Bank build good relationship with their clients. EXIM Bank also solves the clients problems and they show the procedure the overcoming the problem.
- They arrange the ceremony of award to the honorable person in every year.
- They send gift item at the beginning of the year to the senior citizen of the society. These items include pen, dairy, calendar, pen stand, wall clock etc.
- They also give special gift to the elite person in different occasions.
- In every month the higher authority of EXIM Bank give information about the market condition and suggestion to the branch manager.
- The managers of every branch tell present condition of his branch to the head office in every month.
- Head Office updates deposit and investment guideline to the branch manager.
- EXIM Bank sponsors different types of National games.
EXIM Bank will soon setup a Research and Development Division and separate marketing divisions, which are, help them to implement better marketing strategy.
2.6 Place Strategy of EXIM Bank:
One of the simplest methods of segmenting markets is by their geographic location. People who are living in one region of the country have consuming and purchasing habits that differ from those who live other regions. For example, the usage of woolen sweaters and jackets is higher in north India, due to the extreme cold during cold during the winter months, compared to consumers in south India. Even in local markets, geographic segmentation is important. A bank branch in the western part of the city may attract account holders from that part of town to the bank. However, the bank branch manager may find it difficult to attract customers from the eastern part of the city due to the location inconvenience. When marketers analyze geographic data, they study sales by region, by state, city size, specific locations and the kind of retail outlets where sales are made.
Its may be seen and unseen it is not necessary that bank perform its activities by branch network. Bank may be deal contacts with a client or corporation in different location out of Bank branch. EXIM Bank has 54 branches in urban and rural area. But most of them are in urban commercial area.
2.7 EXIM’s Objectives:
Based on their mission and vision, Exim Bank has come up with few objectives, which they believe will help them reach their desired destination. They are:
2.7.1 Gaining a larger market share: Exim Bank currently has a quite low market share of less than 6%. They want to increase their market share in the coming years.
2.7.2 Strengthening brand image: Exim wants to establish them as a bank providing excellent service in the minds of the customers. This will help them strengthen their brand image.
2.7.3 Provide technologically advanced services: Exim wants to provide technologically advanced services for the convenience of their customers. They were the first bank in the country to introduce Money link ATM cards. Now they have introduced Phone-banking, Internet banking and sms/ online banking.
2.7.4 Making banking comfortable and convenient for customers: Exim wants to retain their customers by making customers feel comfortable while they are at the banking premises. For this reason they have arranged for adequate seating facilities. Now customers do not have to wait for long hours in queues, they can sit with their token until their token number appears on the screen and they are called to the counter.
2.7.5 Encourage and motivate customers so as to increase sales and profits: Exim wants to retain their previous customers by keeping them motivated by providing them with gifts for extensive use of ATM cards and Credit Cards and by providing higher interest rates to customers who open their accounts with a higher initial balance. This will also help them to attract new customers.
2.7.6 Ensuring customer satisfaction: Standard Chartered Bank has made use of different means of getting feedback from customers so as to understand their level of satisfaction, based on which they can take the necessary actions to ensure customer satisfaction.
2.8 EXIM’s Strategies:
Exim Bank has formulated some strategies to achieve their desired Objective. These are:
Promotional activities: Exim Bank is trying to achieve their objective of increasing their market share by engaging in promotional activities. Example: They are offering free shopping worth Tk 2,000 from Agora to customers who will be able to refer at least 5 new customers to EXIM.
Assigning targets to salespeople: The salespeople of Exim Bank are assigned targets based on their desired increase in market share. Salespeople are paid based on the number of sales they can make. If they are unable to achieve their target, they are not paid. This acts as a negative motivational factor, which is a driving force for the salespeople.
Offering a very wide range of innovative products: Exim Bank wants to establish themselves as a strong brand name in the minds of customers. In order to achieve this objective they are continuously coming up with innovative products such as night banking, 24 hours ATM banking, 24 hours Phone banking, Internet banking, Sms banking, platinum credit cards having a maximum credit limit of BDT 1,000,000 and many more.
Introducing more convenient and comfortable means of banking: The innovative products offered by Exim have already made banking more convenient for customers. They have introduced token systems for customers who want to engage in cash and cheque transactions or want to make remittances. Customers no longer have to wait for long hours in the queue; they can sit making themselves comfortable and wait for their token number to appear on the screen before they go to the counter.
2.9 Vision of Exim Bank:
The gist of their vision is “Together towards Tomorrow”. Export Import Bank of Bangladesh Limited, as the name implies, is not a type of Bank in some countries on the globe, but is the first of its kind in Bangladesh. It believes in togetherness with its customers, in its march on the road to growth and progress with services.
- Provides the greatest return to the stakeholders by the stakeholders by achieving sound profitable growth.
- Be perceived by the customers and employees as the best whenever it operates.
Customer Services and Automation:
“To err human and forgiveness divines” a proverb, the bank believes but the customers will not accept. Because for a service they pay for they want it 100% defect free. So improvement of the customer service should always be their motto altered expectations of the customer have shifted the focus from resource base productivity.
To operate in the globalize environment, the banks future plan is to equip all the units of the bank with the modern technology, such as online computer network telex, fax, e-mail etc. for the service of the customer round the clock, it has a plan to install ATMs suitable places in Dhaka and other cities of the country.
2.10 Missions of Exim Bank:
The bank has chalked out the following corporate objectives in order to ensure smooth achievement of its goals-
- To be the most caring and customer friendly and service oriented bank.
- To create a technology based most efficient banking environment for our customer.
- To ensure ethics and transparency in all levels.
- To ensure sustainable growth and establish full value of the honorable shareholders.
- To add effective contribution to the national economy.
- Provide high quality financial services in export and import trade.
- Providing efficient customer service.
- Maintaining corporate & business ethics.
- Become trusted repository of customers’ money and their financial advisor.
- Making its products superior & rewarding to the customers.
- Display team spirit and professionalism.
- Create sound capital base.
- Enhance shareholders wealth.
- Fulfilling its social commitments by expanding its charitable & humanitarian activities.
2.11. Corporate profile:
Name of the Company : Export Import Bank of Bangladesh Limited
Chairman : Mr. Md. Nazrul Islam Mazumder
Managing Director : Kazi Mashiur Rahman
Company Secretary : Mr. MD. Golam Mahbub
Legal Status : Public Limited Company
Date of Incorporation : June 02, 1999.
Registered Office : “SYMPHONY”
Plot # SE (F)-9, Road # 142 GulshanAvenue,
Line of Business : Shariah based islami banking
Authorized Capital : 350.00 Crore
Paid Up Capital : 267.75 Crore
Shariah based Islamic banking : since July/2004.
Stock Exchange Listing : August 03, 1999.
Fax : 880-2-988 9358
SWIFT : EXBKBDDH
E-mail : firstname.lastname@example.org
Website : www.eximbankbd.com
Auditor : hoda Vasi Chowdhury & Co. Chartered
Accountants. BTMC Bhaban (8th Level),
7-9, Kawran Bazar, Dhaka-1215
Number of Branches : 54
2.12 Organizational Structure of Exim Bank:
The development of on organization depends on the management style of their organizations the same the development if the bank is being occurred only for the good management team. Management of the Exim Bank controlling of all the resources of the organization. To achieve the ultimate objective of making Exim Bank the finest banking of the country, the workforce will be futuristic in outlook, professional in attitude and honest in reputation.
The board of directors wants to repose in the management all executive powers to run this service industry administration and credit portfolio independently without any undue influence from outside. The board formulates policy and gives policy directives to the management. Transparency and accountability are strictly ensured at all leaves of the bank. Bank operate with integrity, competence and farsightedness abiding by all the principals and provisions laid down in the bank company act 1991, 1994 and the guidelines of Bangladesh Bank. The bank is committed to pursue a straight forward, upright legitimate banking business, never be tempted by the abnormal prospect of large returns to do any thing. It will only do what may be done under the national policy.
2.13 Organizational Development of the Exim Bank:
In the 1450s and 1960s a new integrated type of training originated knows was organizational development. Organizational development is an intervention strategy that uses group processes to focus on the whole culture of an organization in order to bring about planned change, it seeks to change belief attitudes, values structure and practices so that organization can better adapt to technology and live with the fast pace of change.
The general objective of organization development is to change all parts of the organization in order to make humanly responsive, more effective, and more capable of self-renewal.
The organizational development process does not preclude the use of conventional training method, which is useful for some purpose. The management of Exim Bank is also concern about the training for its development. They believe that if the employees will be trained enough they would contribute more for the development of the banking business that is why; they send some employee in every batch. So a number of employees took training from different training institutions such as Bangladesh Bank, National Bank training Institute, Bangladesh Institute of Bank Management.
2.14 Shariah Auditing:
This is the civil supervisory aspect that shapes the Bank’s main feature. Its existence is part of the Shariah Supervision procedures. One of its main tasks is to check the Shariah complacency in the Bank’s transactional procedures in accordance to the Fatwa’s issued in that regard, under the guidance of the Shariah Supervisor.
The Shariah auditor is assigned the task of revising the bank’s transactional procedures throughout the year to check the extent to which the staff members and the different departments have abided by the regulations, advices, and Fatwa’s issued by the Fatwa & Shariah Supervisor Board, forums & banking conferences. As well as, the Shariah Supervision Board certifies assuring that all the contracts that state a right for the Bank or an obligation on the Bank.
Moreover, the Shariah Auditing submits periodic reports to the Shariah Supervisor in order to be proposed to the Shariah Supervisor Board to state what it finds appropriate in that regard.
2.15 SHARIAH BOARD:
The Board of Directors has formed a Shariah Supervisory Board of the bank. Their duty is to monitor the entire Bank’s transactional procedures, & assuring its Shariah complacency. This Board consists of the following members headed by its chairman.
The tasks of the Shariah Supervisory in summary is replying to inquires of the Bank’s administration, staff members, depositors, customers, follow up with the Shariah auditors and private them with the guidance, submitting reports & remarks to the Fatwa & Shariah Supervision Board and the administration, participating in the Bank’s training programs, participating in the supervision & handling the duty being the General Secretary of the Board.
2.16 Hierarchy of Position Structure of EXIM Bank:
Chairman è Advisor è Board of Director
Managing Director (M.D)
Deputy Managing Director
Senior Executive Vice President
Senior Vice President
Vice President (V.P)
Senior Assistant Vice President
Assistant Vice President (A.V.P)
Senior Principal Officer (S.P.O)
Principal Officer (P.O)
Executive Officer (E.O)
Assistant Officer (A.O)
2.17 Hierarchy of Position Structure of EXIM Bank:
Senior Assistant Vice President & Manager
– Md. Shah Alam
Senior Principle Officer & 2nd officer
– Sheikh Ishruk Osman
Senior Principle Officers (S.P.O)
Executive Officers (E.O)
– Md. Shawpan
– Ishrat Jahan Chowdhury
– Morshada Akter
– Md. Tofiqur Rahman
Senior Officers (S.O)
– Sharmin Jahan
-Md. Shakhawat Hossain
Md. Ashraful Islam
– Keya Chowdhury
– Md. Monirul Islam
Assistant Officers (S.O)
– Md. Mahbubur Rahman
-Md. Taslim Uddin
-Md. Amin Al-Mamun
-Md. Shohrab Hossain
-Shamima Sharmin (AIUB)
-Shaila Rahman (Stamford University)
-Sheikh Anik Mahmood (Stamford University)
-ABM Mamunur Rashid (Stamford University)
-Md Sadman Sadik (Stamford University)
-Mohammad Tanvir Alam (Southeast University).
Above those there is also some office staffs (2) are doing their jobs. 3 M.L.S.S & 2 Elite force security guards also doing their work spontaneously
2.18 Branch Network:
I worked in Malibagh branch, Dhaka-1217. It is 23rd number branch of Exim bank Bangladesh Ltd. Malibagh Branch is established on16th June 2003. The address of Exim Bank is 484, D.I.T Road, Malibagh,
The Bank operates through its Head Office at Gulshan, Dhaka and 54 branches in the whole Bangladesh. In Dhaka city there are 16 branches with a head office. They are:-
1) Motijheel Branch 2) Rajuk branch, 3) Malibagh Branch,4) New Eskaton Branch,
5) Elephant Road Br, 6) Islami Banking Branch (Uttara, Dhaka), 7) Gulshan Branch, 8) Panthapath Branch, 9) Nawabpur Branch, 10) Imamgonj Branch, 11) Dhanmondi Branch, 12) Mirpur Br. 13) Bashundhara Branch (Badda), 14) Paltan branch, 15) Kawran bazaar branch, 16). Shatmasjid Road Branch (Dhaka). The branches of Exim Bank outer from Dhaka are:-
1) Mawna Chowrashta Branch, 2) Agrabad Branch (Chittagong), 3) Khatungonj Branch (Chittagong), 4) Gazipur Chowrashta Branch (Gazipur), (Dhaka), 5) Sonaimuri Branch (Noakhali), 6) Sylhet Branch (Sylhet), 7) Jessore Branch, 8) Asulia Branch,
9) Narayangonj Branch (Narayangonj), 10) Shimrail Branch (Dhaka) , 11)Laksham Branch (Comilla), 12) Jubilee Road Br. (Chittagong), 13) Rangpur Branch(Rongpur), 14)MoulvibazarBranch,(Moulovibazar),15) Fenchugonj,Branch(Fenchugonj,Sylhet), 16)Savar Bazar Branch (Savar,Dhaka), 17) Comilla Branch(Monoharpur Comilla), 18)Bogra Branch(Barogola, Bogra),19) Ashuganj Branch, 20) CDA Avenue Branch (Chittagong), 21) Chowmuhani Branch (Noakhali), 22) Mudaforganj Branch ( Laksam Comilla), 23) Kustia Branch, 24) Rajshahi Branch, 25) Golapgonj Branch (Sylhet), 26)Chagalnaiya Branch (Feni), 27)Naria Branch (Shariatpur), 28) Khulna Branch, 29)Pahartoli Branch (Chittagong), 30)Beani Bazar Branch (Sylhet), 31)Nabiganj Branch (Sylhet), 32)Barishal Branch, 33)Bianibazar(sylhet), 34) Nobigong (sylhet). And there are also proposed four branches in the country. They are 1) Dinajpur, 2) Feni
3) Narayangonj, 4) Panchoghoti. The Bank also carries out international business through a Global Network of Foreign Correspondent Banks.
Slogan of the Exim Bank “Local Bank Global Network”.
EXIM branch also open an offshore banking outer the country. It is called “Exim exchange”. It works as like “Western Union”, “American Express”, “Money gram” etc.
2.19 Products & Services:
Export Import Bank of Bangladesh Limited launched several financial products and services since its inception. Among them are Monthly Income scheme, Monthly Savings Scheme, Super Savings Scheme, Education Savings Scheme, Multiplus Savings Scheme, Hajj Deposit Smart Saver Scheme. All of these have received wide acceptance among the people.
2.19.1 Monthly Savings Scheme
The prime objective of this Scheme is to encourage people to build up a habit of saving. In this Scheme one can save a fixed amount of money every month and receive substantial lump sum of money after five, eight, ten or twelve years.
2.19.2 Monthly Income Scheme
Under this Scheme, customer has to deposit a fixed amount of money for five years and in return he will receive benefits on monthly basis. Benefits start right from the first month of opening an account under the Scheme and will continue up to five years when the depositor will get refund of his deposit. This scheme is a sure investment for a steady return.
2.19.3 Super Savings Scheme
Super Saving Scheme offers a small depositor to invest his fund (minimum 10,000/-) and the fund will be double in 6 (six) years period. This scheme will secure the future of the investment with ease.
2.19.4 Smart Saver Scheme
Smart Saver is a high return investment plan which helps a customer builds up sizeable amount in a period of 5 years. This scheme offers a customer to buy Smart Saver Term Deposit 5 times the invested amount. Smart Saver is a 5 years term deposit scheme.
2.19.5 Education Savings Scheme
The most gratifying experience for parents is proper education of their children. Educational expense is rapidly increasing and therefore appropriate planning needs to be done by all parents. EXIM Bank offers “Education Savings Scheme” to assist in financial planning well ahead in time for the children’s higher education. Deposit of Tk 25,000/- and multiples thereof at a time will be accepted under the scheme. The instrument shall be issued for 7 years, 10 years or 20 years terms.
2.19.6 Multiplus Savings
Savings helps to build up capital and capital is the prime source of business investment in a country. Investment takes the country towards industrialization which eventually creates wealth. That is why savings is treated as the very foundation of development. To create more awareness and motivate people to save EXIM Bank offers multiplus savings scheme any individual, company, educational institution, government organization, NGO, trust, society etc may invest their savings under this scheme. The deposit can be made in multiplus.
2.19.7 Mudaraba Hajj Scheme
In order to smooth arrangement of fund for performing Hajj, the bank has introduced this scheme for 5, 8, 10, 15 & 20 year’s period
2.19.8 Swift Service
The SWIFT services helped in sending and receiving the messages and instructions related to NOSTRO Account operations and L/C related matters. The bank has brought 06 of branches under SWIFT network.
Exim bank is foreign commercial bank in the arena of banking business, To all intents and purposes; it’s on time delivered service to the customers as demand is considerably better than others. By means of day to day customer service, the customers are being well-informed concerned with its contemporary and up – to -the- minute invented products easily. It also thinks that Customer Care brings perfection to a bank and believes that effective Customer Care strengthens the product knowledge in to customer’s mind more positively and precisely.
The following financial products are available for the customers. The products are customers friendly and easy to use. The product mix is maintained in accordance with the need basis for the customers and profit generating for the banks as well.
- Corporate finance
- Industrial finance
- Commercial finance
- Lease finance
- Syndicate finance
- Hire purchase finance
- Real state finance
2.19.10 Modes of investment
- Bai Muazzal
- Izarah Bil Baia
- Wazirat Bil Wakala
- Quard -e- Hassan
- Local Documentary Bill Purchased
2.19.11 Foreign exchange
- Non Resident Foreign Currency Deposit Account.
- Foreign Currency Deposit Account.
- Al- Wadiah Current Deposit.
2.19.13 Mudaraba Saving Deposit:
- Mudaraba Monthly Saving Scheme (Money Grower)
- Mudaraba Monthly Income Scheme (steady Money)
- Mudaraba Super saving Scheme (Double in6 Years)
- Mudaraba Multiple Saving Scheme (More than triple in10 years)
- Mudaraba Education Saving Scheme.
2.19.14 Mudaraba Short term Deposit.
Mudaraba term Deposits.
- One month
- Three months
- Six months
- Twelve months
- Twenty Four months
- Thirty Six months
Exim bank of Bangladesh limited, one of the leading private commercial banks, I promoted by a group of renowned Bangladeshi entrepreneurs, and commenced its banking operation on 3rdAugust 1999. Within an operative period as short as six years, the bank has arrived at a strong financial and business position by expanding its market share compared to contemporaries and to some extent to the 2nd even 1st generation banks sector. In addition, the bank has also made a significant contribution to the national economy sector under the prudent leadership and steady support of the member of the Board of the Directors, who are leading business personalities and reputed industrialists of the country.
The progression of marketing operation of any organization depends on the efficacy of custom service. To achieve superior customer responsiveness often requires that the company achieve superior efficiency, quality and innovation. To achieve superior customer Responsiveness Company needs to give customers what they want when they want it. It must ensure a strong customer focus, which can be attained through leadership; training employees to think the customers; bringing the customers into the company through superior market research; customize the product to the unique needs of individual customers or customer groups and respond quickly to customers’ demands. Customers’ service is the set of activities and organization use win and retains customers’ satisfaction. It can be provided before, during or after the sale of product or exist on its own. The progress of Exim Bank LTD is very rapid with the concern of profit making and growth of its operation within the country towards the country’s economy.
2.21 Overall Performance of Exim Bank:
|Figure in Crore|