Report on Exim Bank Limited

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Report on Exim Bank Limited

Background of EXIM Bank Ltd

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. He had a long experience as a good banker. A group of highly qualified and successful entrepreneurs joined their hands with the founder chairman to materialize his dream. In deed, all of them proved themselves in their respective business as most successful star with their endeavor, intelligence, hard working and talent entrepreneurship. Among them, Mr. Nazrul Islam Mazumder became the honorable chairman after the demise of the honorable founder chairman.

This bank starts functioning from 3rd August, 1999 with Mr. Alamgir Kabir, FCA as the advisor and Mr. Mohammad Lakiotullah as the Managing Director. Both of them have long experience in the financial sector of our country. By their pragmatic decision and management directives in the operational activities, this bank has earned a secured and distinctive position in the banking industry in terms of performance, growth, and excellent management. The authorized capital and paid up capital of the bank are Tk. 1000.00 million and Tk313.87million respectively.

The bank has migrated all of its conventional banking operation into Shariah based Islami banking since July/2004.

Organo gram


The bank is started with an authorized capital of TK.100 million in 1999 & as on 31st December 2000 authorized capital stood 1000 million. The paid up capital stood at TK 627 Million as on 31st December 2003 .Capital structure of EXIM Bank has changed from year to year .The components of the capital structure and paid up capital; proposed cash dividend, retained earnings and other reserve.

Corporate Culture

This bank is one of the most disciplined Banks 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 we belong has not been imposed; it has rather been achieved through our corporate conduct.

Vision and mission

Our vision and mission are stated in the following bullets:

· To be the finest bank in the banking arena of Bangladesh under the Shariah guidelines.

· To maintain Corporate and business ethics.

· To become a trusted repository of customers’ money and their financial advisor.

· To make our stock superior and rewarding to the customers/share holders.

· To display team spirit and professionalism.

· To have a Sound Capital Base.

· To provide high quality financial services in export and import trade.

· To provide excellent quality Customer service

Shariah board

The Board of directors has formed a Shariah Supervisory Board for the Bank. Their duty is to monitor the entire Bank’s transactional procedures, & assuring its Shariah compliancy. This Board consists of the following members Chairman: The tasks of the Shariah supervisor in summary is replying to queries of the Bank’s administration, staff members, shareholders, depositors, & customers, follow up with the Shariah auditors and provide them with guidance, submitting reports & remarks to the Fatwa & Shariah Supervision Board and the administration, participating in the Bank’s training programs, participating in the supervision over the AlIqtisad AlIslami magazine, & handling the duty of being the General Secretary of the Board.




“Islamic banking” is based on profit-loss sharing and an interest-free banking system that takes root in the twentieth century. It is an outcome of the extensive research and brain storming of the Islamic Philosophers and Economists in the light of the Qur’aan and the Sunnah. The concept of Islamic banking having considered and proven it equitable and conducive to the economic progress, it has spread out across the globe under diverse nomenclatures such as, Shariah Banking, PLS Banking etc. In the absence of interest-free banks in the country, the people of Bangladesh, to meet emergency and against their will, had to do banking transactions with conventional banks. At long last, the first, interest-free banking activities under Islamic Shariah set out in Bangladesh in the year 1983. Days in, days out, this banking system reaches in its golden pinnacle.

Members of Shariah Council

Professor Moulana Mohammad Salah Uddin Mr. Md. Nazrul Islam Mazumder
Moulana Mohammad Sadequl Islam Mr. A.K.M Nurul Fazal Bulbul
Professor H.M. Shahidul Islam Barakaty Mr. Md. Abdul Mannan
Mr. A.S.M. Fakhrul Ahsan Mr. Zubayer Kabir
Hafez Moulana Mufti Mohammad Khair Ullah Mr. Abdullah Al-Zahir Sawpan








Member BANKS having Islamic Banking Branches (9)










Some projects and track records of the CSBIB

1. Islamic Banking Award

The Central Shariah Board has taken project to offer yearly ‘Central Shariah Board Islamic Banking Award’ to the individuals and organization showed excellence in Islamic Banking field. The award includes a crest, a certificate and cash money of BDT one hundred thousand.

2. Essay Competition

Central Shariah Board arranges an Essay Competition each year on different Islamic Banking and finance related subjects. There are three groups in this competition and the winners receive a handsome amount of money as prize.

3. Training on Islamic Economic & Banking

To arrange training courses on Islamic Economics & Banking related subject for the executives of different banks and teachers of colleges and Madrasahas, Muftis, Imam and Khatib (Orator) of Masjids in one of the major the board.

4. Shariah Manual on different Islamic Banking products

The Board has taken initiatives to prepare Shariah manuals on different modes of investment for easy operation of banking activities. The work will be finished by the end of 2007.

5. Publication of journal

Central Shariah Board is publishing a Quarterly research journal named “Islamic Banks’ Central Shariah Board Journal.”

6. Publication of Bulletin

In view to make Islamic Banking Activities were familiar and circulate Islamic Banking and finance related news the Board began to publish a bulletin named “Islamic Finance” The Board is planning to publish the Bulletin a monthly news magazine in future.

7. Publication of Books

The Board published a book entitled “Shariah Board in Islamic Banks and Financial Institution” and more books written of Islamic banking and finance related subjects are waiting to be published.

8. Exchange of views

In view to enhance Islamic Banking activities a delegation of the Board is visiting the member banks for two years and exchanging views with the higher authorities of banks. The delegation offered then different advice and indications.

9. Islamic Credit Card

The board is carrying on research an Islamic credit card for all of the member banks.

10. Draft of Islamic Bank company law

The board prepared Islamic Bank company law (Draft) and submitted it to Bangladesh bank for promulgation. It is presently, The Islamic Banks operating in Bangladesh is being general under the “Bank company law 1991 which was actually legislated for the operation of conventional banks.

11. Approval of Inter-Islamic Bank Money Market regulation

To solve the liquidity scarcity no Islamic bank can borrow money from call Money Market became of Interest connection. So the board approved “Inter-Islamic Bank Money Market regulation” so that Islamic Banks can deal each other to solve the scarcity of liquidity and excess liquidity accordingly of Shariah.

2.7 Board of Directories

Late Shahjahan Kabir Md. Nazrul Islam Mazumder
Founder Chairman Chairman
Alamgir Kabir, FCA Kazi Masihur Rahman
Former Advisor Managing Director
Name of Directors
Mr. Md. Nazrul Islam Mazumder
Mr. Md. Faiz Ullah
Mrs. Nasima Akhter
Mr. A.K.M. Nurul Fazal
Mr. Zubayer Kabir
Mr. Md. Habibullah
Mr. Md. Abdul Mannan
Al-haj Md. Nurul Amin
Mr. Abdullah Al-Zahir Sawpan
Mr. Mohammed Shahidullah

Key functions of the EXIM Bank Ltd

Like other commercial Banks EXIM Bank performs all traditional Banking business including introduction of a wide range of caving and credit products, retail banking and professional management. But the EXIM Bank emphasizes its functions in export and import trade handling and financing of export oriented industries will enhance wealth, quotes more employment’s opportunities, helps formation of capital and reduces in the balance of payment of the country.

The other functions are as follows:

ü Receiving deposit

ü Granting investment

ü Creation of deposit by investment

ü Transfer of money

ü Discounting of bill of exchange

ü Investment in profitable sectors

ü Export and Import.

Performance of the Bank at a Glance

Sl. No Particulars 2003 2004 2005 2006
01. Authorized Capital 100.00 100.00 100.00 350.00
02. Paid-up Capital 31.39 62.78 87.90 171.38
03. Reserve Fund 22.82 35.73 57.00 81.09
04. Deposits 1524.30 1907.82 2831.90 3503.20
05. Investment(General) 1228.91 1933.20 2604.60 3264.13
06. Investment(Shares & Bonds) 237.70 154.30 163.30 223.33
07. Foreign Exchange Business 3461.96 4931.24 7294.00 9617.51
a) Import Business 1926.00 2678.10 4143.20 4949.67
b) Export Business 1512.46 2241.84 3128.50 4623.46
c) Remittance 23.50 11.31 22.30 34.38
08. Operating Profit 56.27 83.58 117.58 137.87
09. Loan as a % of total Deposit 80.62% 101.97% 91.97% 93.18%
10. No. of Foreign Correspondent 185 200 222 246
11. Number of Employees 627 768 934 1020
12. Number of Branches 19 28 28 32
13. Return on Assets 3.15% 3.44% 1.65% 1.73%

Branch Network:

The number of branches as it stands now is 28 (Twenty Eight) and steps are being taken to open few more branches at commercial important places by the year 2006.

Branch Codes and Names

Branch Code Branch Name Branch Code Branch Name
01 Motijheel 15 Uttarra
02 Panthapath 16 Laksum
03 Agrabad 17 Mirpur
04 Khatungonj 18 Jubilee Road
05 Gazipur 19 Elephant Road
06 Imamganj 20 Mawna
07 Gulshan 21 Bogra
08 Sonaimuri 22 Jessore
09 Sylhet 23 Malibag
10 Nawabpur 24 Ashulia
11 Narayangonj 25 Ashugonj
12 Shimrail 26 CDA Avenue
13 Rajuk Avenue 27 Choumuhoni
14 New Eskaton 28 Satmasjid Road
29 Bashundara 30 Fenchugonj
31 Comilla 32 Rangpur

Product & Services

2.11 E-cash/ ATM Service

The bank is currently providing Credit Card Service (MasterCard) to the privileged customers of the bank in collaboration of Prime Bank. Floating VISA card for both Debit and Credit card service is under process.

Accounts Opening Section

This section deals with opening of different types of account. It is also deals with issuing of cheque books and different deposit books to the different accounts openers. A customer can open different types of accounts through this department such as

Ø Current Account

Ø Saving Account

Ø Monthly Saving Scheme (MSS)

Ø Monthly Income Scheme (STEADY MONEY)

Ø Multi Plus Saving

Ø Super Saving Scheme

Ø Education Saving Scheme

Ø Fixed Deposit Account

Requirements of Opening an Account

There are some requirements that have to be completed for opening an account.

Current Account

Current Account is an account where the account holders can make numbers of transactions with in a working day. There is no restriction on the number and the amount of withdrawals from the current account within availabilities of funds.

As the Banker is under the obligation to repay this deposit on demand on profit is paid in this account. Generally, current account is opened for Businessman and trades for easy transaction. But a person can open CD Account for specials purpose. Requirements for the different types of Accounts holders are discussed.

Proprietorship Firm

There is a different account opening form for the proprietorship firm by the EXIM Bank of Bangladesh Ltd. For this account, a customer must need to submit the papers with the form

Ø Photograph

Ø Signature and Rubber- stamp seal of the client

Ø Introducer of EXIM Bank ltd.

Ø Introducer must be an account holder

Ø Chairman certificate / Citizenship certificate of the proprietor

Ø Trade license

Current deposit account is opened with neither a sum of nor less then 1000.

The Introducer must attest Photographs of the account holder.

Partnership firm

There is a different account opening form for the proprietorship firm. Interaction for running an account is given in this form. The following documents are required to open these types of accounts.

Ø Photograph

Ø Signature and Rubber- stamp seal of the service receiver

Ø Introducer of EXIM Bank ltd.

Ø Introducer must be account holder

Ø Chairman certificate / Citizenship certificate of the partners

Ø Trade license

Ø Partnership deed registered by Notary public

Ø Partnership letter along with address and signature

Current deposit account is opened with neither a sum of nor less then 5000.The introducer must attest Photographs of new account holder.

Limited Company

A separate account from is used for limited company. There are two kinds of limited company – Public Limited Company and private limited company. The bank always takes precautions for opening this type of account. Several documents are submitted by the clients, which should be checked carefully by the Bank to be legally in a safe position. Requirements to open an account are as follows:

  1. Public limited company

Ø Photograph

Ø Signature and Rubber- stamp seal of the client

Ø An Introducer of EXIM Bank ltd.

Ø Introducer must be CD account holder

Ø Chairman certificate of the partners

Ø Trade license

Ø Certified copy of memorandum and articles of association

Ø Certificate of Incorporation

  1. Private limited company

Ø Photograph

Ø Signature and Rubber- stamp seal of the service receiver

Ø Introducer of EXIM Bank ltd. Introducer must be CD account holder

Ø Chairman certificate of the directors

Ø Trade license

Ø Certified copy of memorandum and articles of association

Ø Certified of Incorporation

Ø List of directors as per return of joint stock Company with signature

Ø Certificate of commencement of business

Club Society

The following documents duly completed shall be obtained from the customer at the time of current deposit account of association / Club / Charity / Trust / Society etc.

Ø Photograph

Ø Signature and Rubber- stamp seal of the client

Ø Introducer of EXIM Bank ltd. Introducer must be CD account holder

Ø Chairman certificate of the client

Ø Certified true copy of constitution / By- laws / Trust deed / Memorandum and Articles of association

Ø Certificate of Registration of the Association / Club / Charity / Trust / Society (For inspection and returned only certified.)

Ø List of members of the governing body / Executive Committee of the Association / Club / Charity / Trust / Society with their address

Saving Account (Individual/ Joint)

Saving Account (SB) is meant for the people of the lower and middle classes who wish to save part of their income to meet future needs and intended to earn an income from their saving. For opening of this type of accounts the following requirements are necessary:

Ø Photographs attested by the introducer

Ø Chairman certificate of the Account holder

Ø An introducer of Exim Bank Ltd.

Ø Introducer must be CD Account holder

For joint accounts, signatures of all the account holders are necessary.

Profit rate of savings deposit and short- term deposit (STD) are as follows.

S.L No. Names of Accounts Profit Rate
1 Saving Deposit 6.00%
2 Short term deposit (STD) 5.50%

Monthly Saving Scheme (MSS)

It is project of EXIM Bank, which is a scheme like DPS. The slogan of this scheme is “securing your future with case. A small savings to day will provide you comfort tomorrow”

Monthly installment deposit

Ø The saving amount is to be deposited with in the 10th day of every month. In case

Of holidays the deposit amount is to be made on the following date

Ø The deposit may also be made in advance

Ø The depositor can have a separate account in the Bank from which a standing

Year wise monthly installment statement charge

No of Year Monthly Installment (TK.) Monthly Installment (TK.) Monthly Installment (TK.)
1000 2000 5000
5 78082 156164 3904111
8 148404 296809 742024
10 210190 420380 1050952
12 288923 577847 1444618

Monthly Income Scheme (STEADY MONEY)

Bangladesh is a developing country. But in our country opportunity of investment is very low. People of our country always try to save their excess money and they are looking for where they can deposit the money. According to their demand EXIM Bank started this monthly income scheme that really makes good sense. Sure investments for a steady return.

Highlights of the Scheme

Ø Minimum deposit TK. 25000

Ø Higher monthly Income for higher deposits

Ø The scheme is for Three years period

Ø Monthly income will be credited to the depositors account on the fifth of each month

Multi plus Savings

Saving help to build up capital is the prime source of business investment in a country. Investment takes the country towards industrialization. This eventually creates wealth. That is why savings are treated as the very foundation of development. To create more awareness and motivation people to save, EXIM Bank offers multi plus Savings scheme.

Some Example is given in the following table:

Any amount can be deposited in multiples of TK. 10,000

Deposit Term Payable at maturity Payable amount
10000 6 years Double 20000
20000 6 years Double 40000
50000 6 years Double 100000
100000 6 years Double 200000
200000 6 years Double 400000
500000 6 years Double 1000000

Fixed deposit amount

There are deposits, which are made with the Bank for a fixed period specified in advance. The Bank do not maintained the cash reserves against these deposits and therefore. The Bank offers higher rates of profit on such deposits. These deposits generally constitute 50% or more of the total deposit. Usually customers are allowed to open this accounts for a certain period and the rate of profit varies in accordance with the terms of deposit.

The terms and their rate of interest of EXIM Bank Ltd. Are as follows

Fixed Deposit: 1 (one) month

SL. No. Range of Account Rate of Interest
1 TK.10,000 to 20,000 9.50%
2 TK. 20,000 to 50,000 9.50%
3 Above TK. 50,000 9.50%

Fixed Deposit: 3 (Three) month

SL. No. Range of Account Rate of Interest
1 TK. 10,000 to below TK.


2 TK. 50000000 to above TK. 100000000 11.75%
3 Above TK. 100000000 11.75%

Fixed Deposit: 6 (six) month

SL. No. Range of Account Rate of Interest
1 TK.10,000 to 20,000 11.50%
2 TK. 20,000 to 50,000 11.50%
3 Above TK. 50,000 11.50%

Fixed Deposit: 12 (Twelve) month

SL. No. Range of Account Rate of Interest
1 TK.10,000 to 20,000 11.75%
2 TK. 20,000 to 50,000 11.75%
3 Above TK. 50,000 11.75%

Fixed Deposit: 2 (Two) Years

SL. No. Range of Account Rate of Interest
1 TK.10000 to 20000 11.75%
2 TK. 20000 to 50000 11.75%
3 Above TK. 50000 11.75%

Fixed Deposit: 3 (Three) Years

SL. No. Range of Account Rate of Interest
1 TK.10000 to 20000 11.75%
2 TK. 20000 to 50000 11.75%
3 Above TK. 50000 11.75%

Cash Section

Cash Section of any Bank plays a vital role in general banking procedure. Because it deals with the most liquid assets there are several counter works simultaneously in cash section of EXIM Bank Malibagh branch. There are also some electronic counting machines by which a huge amount of case money can be counted with in a few minutes

Cash receiving procedure

The work of cash receiving counter is examining deposit slips. Depositor uses the prescribed deposit slips. Supplied by the bank for deposit cash, draft, cheque, pay order etc. In all types of deposit teller must cheek the following thing:

Ø The slip has been properly filled up

Ø The title of the account and its number

Ø The amount in figure and in word is same

Ø Instrument signed by the depositor

After checking all these things the teller will accept the cash, cheque, draft, pay order etc. against deposit slip. The teller will place in the drawer accounting to denominations. The teller will place signature affix ’cash receipt, rubber stamp seal’ and record in the cash received register book against the account number, at the end of the procedure, the cash officer passes the deposit slip to the computer section for posting purpose and returns the customer’s copy.

Accounting treatment:

Date Particulars Debit(TK) Credit(TK)
Cash A/C Dr.

To customers A/C

xxxx xxxx

Cash Payment Procedures


In order to safeguard the position the paying Banker has to observe the following precaution before honoring the cheque:

Ø A cheque must look whether it is an opened or closed cheque.

Ø The paying officer should see whether the cheque is drawn on his or her Branch

Ø He must see if the cheque is postdated of predated. A teller must not pay postdated cheque.

Ø The officer must carefully see the apparent tenor to the cheque. If it is mutilated or materially altered then the officer must not honor it.

Ø The officer must compare the signature of the cheque with the signature on the specimen signature card.

Ø The officer must verify the regularity of the endorsement.

Passing the cheque

After verify the above mentioned things the officer to make payment by putting “pay cash” seal the cash officer make it clear to pay. The cash officer gives the cash amount to the holder and record in the cash paid register.

Accounting treatment

Date Particulars Debit(TK) Credit(TK)
Customers A/C. Dr.

To Cash A/C

xxxx xxxx

Dishonor of Cheque

A Banker can dishonor a cheque in the following situation

Ø Insufficient fund

Ø Payment stopped by drawer

Ø Alternation required drawer signature

Ø Effect not clear in the cheque

Remittance Section

Pay Order (PO)

It is a process of money from payer to payee with in a certain clearing area through Banking.

A person can purchase payment order in different modes such as pay order by cheque and for these different modes accounting treatments is also different.

Accounting treatment:

(PO by cash)

Date Particulars Debit


Credit (TK)
Cash A/c

To Bills payable A/c

To PO Commission A/c

Xxxx Xxxx


EXIM Bank charge different amount of commission on the basis of payment order amount. The charges for payment order are given in the following chart:

Total amount of PO Commission
Up to 10000 TK. 15.00
TK. 10001 to TK. 100000 TK. 25.00
TK. 100001 to TK. 500000 TK. 50.00
TK. 50,00,01 and above TK. 100.00

Demand Draft (DD)

It is an instrument containing an unconditional order of one Bank to another to pay a certain amount of money to the named person or order the amount therein on demand. DD is very much popular instrument for remitting money form one corner of a country to another. Commission for DD is 0.10% of the principal amount.

Accounting treatment:

(DD by cheque / cash)

Date Particular Debit




Cheque / Cash A/C Dr.

To Demand Draft A/c

To DD Commission A/c



Different between pay order and demand draft:

There are some different between pay order and demand draft

Ø In case of demand draft both the payer and payee need to have account. But there is no certain rule for pay order.

Ø PO is used in the same clearing area. DD is used for all kinds. DD can not be done in the same clearing area.

Ø DD is drawn on a certain Bank officer. But there is no certain rule for po.

Telegraphic Transfer (TT)

Telegraphic transfer is the quickest method of transferring funds from one place of another. Sometimes the remitter wants that the money to be available to the payee immediately. If banker is requested to remit the fund telegraphically. Here the remitted bears the additional charge of telex/ telephone. Charge for TT is o.1% of the principal amount and the additional charge telex/ telephone is TK. 40.00. In case of TT both the parts must have accounts.

(PO by Cheque)

Date Particulars Debit


Credit (TK)
Cash A/c Dr

To TT Commission A/c

xxxx xxxx

Bills and Clearing Section

For safety and security in financial transaction people use financial instrument like DD, PO, and Cheque etc. Commercial bank’s duty is to collect the financial instrument on behalf of their customer. The process that the bank use known as clearing and collection.

The main function of this section is to collect instrument on behalf of the customers through Bangladesh Bank clearinghouse. Outside bank clearing (OBC), Inter branch clearing (IBC).Upon the receipt of the instrument this section examines the following things

Ø Whether the paying bank within the Dhaka city.

Ø Whether the paying bank out side the Dhaka city.

Ø Whether the paying bank in their own branch.

Outward Clearing

Outward Clearing held if the instrument collected by specific branch within the Dhaka city and of their own branch. Here the following procedures are followed:

Ø The clients receive the duly-signed instruments.

Ø Cheeked for any apparent discrepancy.

Ø Clearing stamps are affixed on the instrument and on the deposit slip.

Ø Branch code number also affixed on the instruments.

Ø The authorized signature endorses instruments.

Ø Particulars of the schedules send to the main branch of EXIM Bank of Bangladesh

Ltd. with issuing an Inter Branch Debit Advice (IBDA).

Essential things for clearing the instruments

There are three essential things required for clearing the instrument

Ø Crossing Seal

Ø Endorsement Seal

Ø Clearing Seal

Accounts Section

This is very much crucial department for each branch of a commercial Bank. Records of all the transaction of every department are kept here as will as other respective branches. Accounting department verify all financial amount and contents of transaction. If any discrepancy arises regarding any transaction this department report to the concerned department.



Basis of Comparison Conventional Bank EXIM Bank Ltd
1 Principal of Islamic Shariah The function and operating modes of conventional banking follows the manmade practices and rules. The function and operating modes on principal of Islamic Shariah.
2 Sector wise investment Conventional banking invests the entire sector in equal ratio. EXIM bank invests RMG, import sector in high ratio than other sector.
3 Advertising Conventional banking uses television, bill, board,

newspaper advertisement.

EXIM bank does not use such types of advertisement.
4 Online business These types of bank such as SCB, DBBL etc gives emphasis to the online business. EXIM bank provides online services but to limited number customer only.
5 Merchant Banking Conventional banking has no merchant banking services. EXIM bank started merchant banking services in 2006
6 Place strategy Conventional banking such as National Bank of Pakistan, Bank of Ceylon does not follow such types of strategy. EXIM Bank follows 1/6 ratio of rural and urban strategy in case of establishment.
7 Fee based Conventional banking such as SCB depends on fee based banking. EXIM bank does not depend on fee based banking.
8 Deposit strategy In case of FDR conventional banks show the bank statement in the whole amount from opening date. In case of EXIM Bank, there is no such type of strategy.
9 Mushraka and Mudaraba investment In conventional banking there is no such practice. In Mushraka and Mudaraba investment income cannot be accounted for on accrual basis.
10 Transaction They contact their operations on interest basis. EXIM bank does not engage in any transaction on interest basis.
11 Call Deposit Conventional banks are engages in call deposit. EXIM bank does not engage in call deposit.

Although there are some differences in conventional banking marketing strategy an EXIM bank marketing strategy but both are almost same in case of product and pricing marketing strategy. In case of product strategy, merely name of the product is different from conventional banking.

S W O T Analysis of EXIM Bank Ltd

SWOT analysis is the detailed study of an organizations exposure and potential analysis is the detailed study of an organizations exposure and potential in perspective of its strength, weakness, opportunities and threats. This facilitates the organization to make their existing line of performance and also foresee the future to improve their performance in competition to their competitors.


EXIM bank ltd has already established a favorable reputation in the banking industry of the country. The bank has already shown a tremendous growth in the profit and deposits sector.

EXIM bank ltd has provided its banking service with a top leadership and management position. The board of directors headed by its chairman Mr. Md. Nazrul Islam is a skilled person in the business world. Alamgir Kabir, the advisor of the bank is a reputed senior chartered accountant 30 years vast experience in accounts, audits, finance and banking at home & abroad. Kazi Masihur Rahman work as the managing director of bank management team.

EXIM bank has already achieved a high growth rate accompanied by an impressive profit growth rate in 2001. The number of deposits and the loans and advances are also increasing rapidly.

EXIM bank has an interactive corporate culture. The working environment is very friendly, interactive and informal. And there are no hidden barriers or boundaries while, communicate between the superior and the employees. This corporate culture provided as a great motivation factor among the employees.


The important weakness is that the bank has no clear mission statement and strategic plan. The bank actually not has any long term strategies whether it wants to focus on retail banking or become a corporate bank. The path of the future should be determined with a strong feasible strategic plan.

The bank failed to provide a strong quality-recruitment in the lower and some mid level position. As a result the services of the bank seem to be dues in the present days.

The poor service quality has become a major problem for the bank. The quality of the service at EXIM bank is higher than the NCC bank, Prime bank or Dutch Bangla bank etc. But the bank has to compete with the Multinational Bank located here.


In order to reduce the business risk, EXIM bank has to expand their business portfolio. The management can consider options of starting merchant banking or diversify into leasing and insurance sector.

Opportunity in the retail banking lies in the fact that the country’s increased population is gradually learning to adopt consumer finance. The bulk of our population is middle class. Different types of retail lending products have great appeal to this class. So a wide variety of retail lending products has a very large and easily pregnable market.

A large of number of private banks is coming into the market in the recent time. In this competitive market EXIM bank must expand its product line to enhance its sustainable competitive advantage. In the product line, they can introduce the ATM to compete with the local and the foreign bank. They can introduce Credit card and Debit card system for their potential customer.

In addition to these things, EXIM bank can introduce special corporate scheme for the corporate customer or officer who have an income level higher from the service holder. At the same time, they can introduce scheme or loan for various service holders. And the scheme should be separate according to the professions, such as engineers, lawyers, doctors etc.


All sustain multinational banks and upcoming foreign, private banks posse’s enormous threats to EXIM bank ltd. If that happens the intensity of competition will rise further and banks will have to develop strategies to compete against at on slough of foreign banks.

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

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


Export Import Bank of Bangladesh Limited is a third- generation private commercial bank in the country with commendable operating performance Directed by the mission to provided prompt and efficient service to clients. It provided a wide range of commercial banking service EXIM Bank has been achieved success among its peer group within a short span of time with its professional and dedicated team of management having long experience, commendable knowledge and expertise in conversion with modern banking. With all its resources, the management of the bank firmly believes that the bank would be able to encounter problem that may arise both at micro and macro economic levels. The management of the bank is maintaining an efficient portfolio in order to have a healthy growth and retain customer satisfaction.

This report has tried to present the overall performance of EXIM bank Ltd in comparison with its closest competitor in the same industry. From the analysis we found that the performance of EXIM bank Ltd is a very satisfactory one.

EXIM Bank is engaged in modern banking. It is expected that EXIM Bank by its efficient Asset and liability management will not be able to maintain its trend of growth and thus over come the threat. Neither Exim Bank nor any other commercial bank can effectively combat risk. However, Exim Bank having small and targeting niche market is likely to be less affected by restrictive monetary and fiscal policy.

The Management of the Bank is planning to meet the required capital adequacy withering the stipulated time frame, and a loan and advance policy that expected the loan loss provisioning in future will be with in tolerable limit having little material impact on future profitability as well as net worth. Although EXIM Bank is yet to be fully automated it has an adequate modern technology to meet its present requirement and it’s proceeding aggressively to enhance its technology level.

As EXIM Bank is performing well in traditional general banking and there is a good demand for Islamic Banking and the opinion of them (The Management) that the performance of the Bank is getting much better than past. I wish and hope that in future EXIM Bank will be Number one commercial Bank in Bangladesh.


Ø Annual Report of EXIM Bank Limited

Ø Different type of brochures of EXIM Bank.

Ø Articles of EXIM Bank.

Ø Several Newsletters From EXIM Bank.

Ø Web site (

Ø Web site (

Ø Web site (

Ø Principles of Marketing (Millennium Edition), Philip Kotler.


A/C Account

B/L Bill of Lading

BB Bangladesh Bank

BIC Bank Identifier Code

BR Branch

C & F Clearing & Forwarding

CC Cash Credit

CCI & E Chief Controller of Import & Export

CFR Cost & Freight

CRF Clean Report Findings

DD Demand Draft

EDF Export Development Fund

EPB Export Promotion Bureau

EPZ Export Processing Zone

ERC Export Registration Certificate

EXP Export Form

FC Foreign Currency

FDD Foreign Demand Draft

FDR Fixed Deposit Receipt

FOB Free On Board

IBCT Inter Branch Credit Transaction

IMP Import Form

IRC Import Registration Certificate

L/C Letter of Credit

LCAF Letter of Credit Authorization Form

LIM Loan against Imported Merchandise

LTR Loan against Trust Receipt.

OBC Outward bills for collection

PAD Payment against Document

PO Payment Order

PSI Pre Shipment Inspection

STD Short Term Deposit

SOD Secured Overdraft

SWIFT Society for Worldwide Inter Bank Financial


TC Travelers Cheque

TIN Trade Identification Number

TR Truck Receipt

UCPDC Uniform Custom & Practice for Documentary Credit