EXIM BANK Product and Performance Evaluation

EXIM BANK Product and Performance Evaluation

PREFACE

Theoretical knowledge is completely different phenomenon than practical environment. One can acquire theoretical knowledge by learning only in a classroom. But generally, there is a significant gap between practical situation and theoretical knowledge. To bridge this gap, practical experience is required to be achieved to match theoretical knowledge. In order to achieve this requirement BBA of Stamford University has taken up an effective step for the student, which is known as the Internship Program.

One of the most tried and proven methods of combating, is the shortcomings in the experience in the Internship program. It is the combined arrangement between the educational institution and business houses operating in the practical field. BBA program is targeted to produce skillful “Business Executive” having an absolute professional outlook. So, the Undergraduate of this discipline should be pragmatic and should have a first hand view of the real life business environment.

EXECUTIVE SUMMARY

As a Part of requirement of MBA program of Faculty Of Business Studies, University Of Dhaka, the project was assigned on October 01, 2005. The topic of the study is Customer Service of EXIM Bank: Prospects, Benefits and prospects.

EXIM Bank Limited was established under the rules and regulations of Bangladesh Bank & the Bank Companies’ act 1991, on the 3rd august 1999 with the leader ship of Later Mr. Shahjahan Kabir, founder chairman .a group of highly qualified and successful entrepreneurs joined in EXIM Bank.

The authorized capital and paid up capital of the Bank are Tk 1,000.00 million and Tk 253.13 million respectively. As a commercial Bank, EXIM Bank Ltd performs all traditional Banking with the support of modern technology and professional Excellency.

The compositions of source of Banks fund are paid up capital, reserve, customer deposit and call loan from different Banks. The Bank uses major portion of this fund for investment in loans and advance. The Bank also invests securities and shares. The EXIM Bank remains committed to increasing its deposit base on lowering the Banks over all cost of fund.

The authorize capital of the Bank is Tk. 1,000.00 million .In the year 2002 the Bank raised it reserved from Tk 119.61 million to taka 298.39 million In the year 2003 EXIM Bank reserve highest number of amount 784.27 million Tk. Than the previous four years.

A strong deposit base is necessary for the success of a Bank. By realizing this truth EXIM Bank arrange a strong deposit background. Like during the year 2003 EXIM Bank mobilized a sustained amount of deposit from mid-level income group people under deposit savings scheme .As of December 31,2001 the Bank mobilized total deposit of Tk 7255.02 million as against total deposit of Tk 3934.47 million of preceding year. The deposit scheme of the Bank attached a large number of small and medium savers.

By using this deposit item EXIM Bank earn their total deposit amounts. Here term deposit earns highest deposit amount after that called deposit, current and other savings deposit basically fully their deposit needs. In EXIM Bank principal branch, the following departments are under general banking section:

Account opening section

Deposit section

Clearing section

Account opening is the gateway for clients to entire into business with bank as:

1.Al-waida current deposit.

2.Mudaraba saving deposit.

3.Mudaraba short- term deposit (SND)

EXIM Bank offer Educational Savings Scheme” to support customer in financial planning well ahead in time for customer children’s higher education. To create more awareness and motivated people to save, EXIM Bank offers MULTIPLE SAVINGS Scheme. The period of deposit is 10 years. If deposit is withdrawn before 1st year then no interest will be paid. A deposit receipt will be issued at the time of opening the account. The deposit can avail Loan upto 80%of the deposit under this scheme.

This scheme offers a customer to buy Smart Saver Term Deposit 5 time the investment amount. Smart Saver is a 5-year term deposit scheme.

To create more awareness and motivated people to save, EXIM Bank offers SUPER SAVINGS scheme. If the deposit is with drown before six years term, then savings interest rate 1% will be applied before payment is made. Monthly installment rate is TK.500/-, 1,000/-, 2,000/- or 5,000/-. The depositor can have a separate account in the bank from which a standing instruction can be given to transfer the monthly deposit in the schemes account.

The deposit should notify the bank immediately or any change of address. If necessary, at the request of the depositor, the scheme can be transfer to a different branch of the same bank.

The bank will provide to the customer a deposit receipt after opening the account .If the deposit is withdrawn before a 5-year term, then saving interest rate will be applicable and paid to the depositor. A depositor can avoid Loan up to 80% of the deposit amount under this scheme. In this case, the interest will be charge against Loan as per bank’s prevailing rate.

Foreign Exchange Department (FED) is the international department. Bangladesh Bank issues license to schedule banks to del with foreign exchange. If the branch is authorized dealer in the foreign exchange market, it can remit foreign exchange from local country to foreign countries.

EXIM Bank is authorized dealer to del in foreign exchange business in case of inward remittance and outward remittance.

Loans offered by EXIM banks Murabaha import Bill (PDA), House Building Lon (staff), Term Loan, Loan (general), Foreign Documentary Bill purchase (FDBP), EXIM Bank sanction SOD aginst different security. The bank has no control over the goods and loan sanction under trust.

In Foreign Exchange Department it is required communicating with foreign bank frequently and quickly. EXIM Bank should give more attraction among their customer, which is collect, more deposit and increase investment scope.

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