Internship Report on NBL Part-2
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This letter summarizes an internship report submitted by Racy Daniel Godino to his supervisor at Eastern University. The report examines the contribution of foreign exchange at National Bank Ltd., where Godino completed his internship. It includes sections on the bank's profile, foreign exchange operations, documents used, letters of credit, import, export, and foreign remittance. The report also analyzes National Bank's performance compared to other private banks in terms of import, export, and remittance volumes. While banks play an important role in foreign trade, the summary notes the banking sector in Bangladesh currently faces issues like a culture of default that impacts bank performance.
Internship Report on NBL Part-2
- 1. i LETTER OF TRANSMITTAL August 27, 2015 Dr. Md. Zamanur Rahman Supervisor & Associate Professor Faculty of Business Administration Eastern University Dhanmondi, Dhaka-1205 Subject: Submission of Internship Report. Dear Sir, It is a great pleasure and privilege to submit the internship report titled “Contribution of Foreign Exchange of Commercial Banks of Bangladesh: A Case Study with National Bank Ltd.” which was assigned to me as a partial requirement for the competition of my BBA Program. Throughout the study, I have tried with the best of my capacity to accommodate as much information and relevant issues as possible and tried to follow the instructions as you have suggested. I tried my best to make this report as much informative as possible. I am grateful to you for your guidance and kind co-operation at every step of my endeavor on this report. I shall remain deeply grateful, if you kindly put some effort to go through the report and evaluate my performance. All of my efforts will be successful if the report can serve its purpose. Sincerely yours, ……………………. Racy Daniel Godino ID # 113200088 Faculty of Business Administration Eastern University
- 2. ii LETTER OF AUTHORIZATION This is to certify that Racy Daniel Godino 26th Batch, ID: 113200088, is an intern of BBA program. He has completed his internship successfully on “Contribution of Foreign Exchange of Commercial Banks of Bangladesh: A Case Study with National Bank Ltd.”. The internship report has prepared as a partial requirement of BBA program. No part of this report has been published in any journal before or copied from any report. I wish his every success. ............................................ Dr. Md. Zamanur Rahman Supervisor & Associate Professor Faculty of Business Administration Eastern University Dhanmondi, Dhaka-1205
- 3. iii ACKNOWLEDGEMENT First, I would like to express my deepest gratitude to the Creator, who created and nurtures me in this transitory world. I also express my gratitude to him for giving me an opportunity to complete my internship program successfully as a partial requirement of BBA program. Then, I would like to express my indebtedness and deep sense of gratitude to me honorable supervisor Associate Professor Dr. Md. Zamanur Rahman, Faculty of Business Administration Eastern University, whose scholastic supervision, kind and sympathetic guidance, warm advice and encouragement have enabled me to materialize this report successfully. I would like to express my sincere gratitude to the Manager, all executives, officers and employees of National Bank Limited, Asad Gate Branch, who had responded cordially to meet my needs relating to the report and gave me feeling that I am not alone in this great responsibility. Without their effort, it would be impossible to bring this report to the light. I shall never forget the help from some book, term papers, journals etc., above all I really be indebted to authors of these works. I am grateful to the Brothers of Holy Cross and my beloved parents, friends and well-wishers for their inspiration that lead me to go ahead. Finally, I thank all the persons who have directly or indirectly contributed in preparing this report.
- 4. iv Table of Contents Contents Page No. Letter of Transmittal i Letter of Authorization ii Acknowledgement iii Table of Contents iv- iv List of Tables iv List of Figures iv Executive Summary iv Chapter 01 : Introduction 01-04 1.1 Background of the Study 02 1.2 Objectives of the Study 02 1.3 Rational of the Study 03 1.4 Scope of the Study 03 1.5 Limitations of the Study 03-04 Chapter 02 : Literature Review 05-09 2.1 Profile of National Bank Ltd. 05-0 2.1.1 History of NBL 06 2.1.2 Vision of NBL 07 2.1.3 Missionof NBL 07 2.1.4 Objectives of NBL 07-08 2.1.5 Strategies of NBL 08 2.1.6 Business Goal 08 2.1.7 The Future Trust 09 2.1.8 Corporate Culture 09 2.2 Foreign Exchange Status 09 Chapter 03 : Methodology 10-12 3.1 Methodology of the Study 11 3.2 Sources of data 11 3.2.1 Primary Data 11 3.2.2 Secondary Data 11 3.2.3 Analysis Tools Used 12
- 5. v Chapter 04 : ForeignExchange Status of NBL 13 4.1 Operations of Foreign Exchange 14 4.1.1 Meaning of Foreign Exchange 14 4.1.2 Regulatory Requirement of Foreign Exchange 14 4.1.3 Why Exchange to be Controlled 15 4.1.4 Functions of Foreign Exchange Dept. 15 4.1.5 Foreign Exchange condition of NBL 16-18 4.1.5.1 Import 16 4.1.5.2 Export 17 4.1.5.3 Foreign Remittance 18 4.2 Documents Used in Foreign Exchange 19-24 4.2.1 Letter of Credit (L/C) 19 4.2.2 Bill of Exchange 19 4.2.3 Bill of Lading 19-20 4.2.4 Commercial Invoice 20 4.2.5 Certificate of Origin of Goods 20 4.2.6 Inspection Certificate 20 4.2.7 Insurance Policy or Certificate 20-21 4.2.8 Proforma Invoice Indent 21 4.2.9 G.S.P. Certificate 21 4.2.10 Packing List 21 4.2.11 Documentary Credit 21-24 4.3 Letter of Credit 25-35 4.3.1 Parties of Letter of Credit Transaction 25-26 4.3.2 Basic Forms of Documentary Letter of Credit 26-28 4.3.3 Classification of Letter of Credit as per Function 28 4.3.4 Steps in Letter of Credit Opening 28-29 4.3.5 Required Documents for Letter of Credit Opening 29 4.3.6 Particulars Involved in Offering Shee 30 4.3.7 Justification for Fitness of Letter of Credit Opening 30-31 4.3.8 Methods of Settlement 31 4.3.9 Operation of Documentary Letter of Credit 31-34
- 6. vi 4.3.10 How Letter of Credit Works 34 4.3.11 Presenting a Letter of Credit 35 4.3.12 Common Mistakes made with Letter of Credit 35 4.4 Import 36-38 4.4.1 Meaning of Import 36 4.4.2 Who is an Importer 36 4.4.3 Types of Import 36 4.4.4 Name of Some Importers 37 4.4.5 Name of Some Imported Items 37 4.4.6 Goods are not Importable 38 4.5 Export 39-41 4.5.1 Meaning of Export 39 4.5.2 Export Procedure 39-40 4.5.3 Name of Some Exporters 41 4.5.4 Name of Some Exported Items 41 4.6 Foreign Remittance 42-47 4.6.1 Meaning of Remittance 42 4.6.2 Types of Accounts for Foreign Remittance 42-43 4.6.3 Process of Foreign Remittance 43-44 4.6.4 Banks with Nostro Account 44 4.6.5 Types of Foreign Remittance 45 4.6.5.1 Inward Foreign Remittance 45-47 4.6.5.2 Outward Remittance 47 Chapter 05 : Results and Analysis 48-56 4.7 Comparative Scenario 49 4.7.1 Public Bank Vs. Private Bank 49-51 4.7.2 Comparison with 5 private Banks according to Import’14 52 4.7.3 Comparison with 5 private Banks according to Export’14 53 4.7.4 Comparison with 5 private Banks according to Remittance’14 54 4.7.5 Contribution of NBL to the total Export’14 of BD 55 4.7.6 Contribution of NBL to the total Import’14 of BD 56
- 7. vii Chapter 06 : Findings, Recommendations & Conclusion 57-60 5.1 Findings 58 5.2 Recommendations 59 5.3 Conclusion 60 Reference 61 Acronyms 62
- 8. viii List of Tables Name of the Table Page no. 1. Import of NBL 16 2. Export of NBL 17 3. Foreign Remittance of NBL 18 4. Name of Some Importers 37 5. Name of Some Imported items 37 6. Name of Some Exporters 41 7. Name of Some Exporters 41 8. Bank wise quarterly Remittance Inflow 49-50 9. Comparison with 5 Private Ltd. Banks according to Import-2014 52 10. Comparison with 5 Private Ltd. Banks according to Export-2014 53 11. Comparison with 5 Private Ltd. Banks according to Foreign Remittance-2014 54 12. Comparison with 5 Commercial Banks with the total Export-2014 of BD 55 13. Comparison with 5 Commercial Banks with the total Import-2014 of BD 56
- 9. ix List of Figures Name of the Figure Page no. 1. Import of NBL 16 2. Export of NBL 17 3. Foreign Remittance of NBL 18 4. Procedure of documentary credit 23 5. Letter of Credit Transaction 25 6. The Process of Letter of Credit 34 7. Export procedure at a glance 40 8. Process of Foreign Remittance 44 9. Types of Foreign Remittance 45 10. Remittance Inflow: Public Vs. Private Banks 51 11. Import in 2014: Private Ltd. Bank wise 52 12. Export in 2014: Private Ltd. Bank wise 53 13. Foreign Remittance in 2014: Private Ltd. Bank wise 54 14. Comparison with 5 Commercial Banks with the total Export-2014 of BD 55 15. Comparison with 5 Commercial Banks with the total Import-2014 of BD 56
- 10. x EXECUTIVE SUMMARY An internship program is very important & essential for acquiring experience through learning and spreading the scope of Knowledge. I have done my internship program in National Bank Limited. This internship report is aimed at providing a comprehensive picture to the areas of Contribution of Foreign Exchange of Commercial Banks of Bangladesh: A Case Study with National Bank Ltd.” The report has been divided into several parts. These are: Introduction, Corporate review of National Bank Limited (NBL), Foreign Exchange, and Documents Used in Foreign Exchange Business, Letter of Credit (L/C), Import, Export, Foreign Remittance, Findings and Analysis, References. National Bank Limited is one of the largest commercial Bank in Bangladesh. The main objective of the Bank is to provide all of banking services at the doorsteps of the people. The Bank also participates in various social and development programs and takes part in implementation of various policies and promises made by the Government. National Bank Limited plays a pioneering role in handling foreign trade and foreign exchange transactions. With wide network of branches at home and a large number of correspondent banks worldwide, it is handling the largest volume of export-import business including homebound remittances. For this reason, Foreign Exchange of the Bank is very much essential. But, now a day’s banking sector of Bangladesh is suffering the disease of default culture which is the consequence or result of bad performance of most banks. In this report a comparison is shown among five private Ltd. Banks. These banks are- Southeast Bank Ltd., Bank Asia Ltd., Dhaka Bank Ltd., AB Bank Ltd. and National Bank Ltd. All these Banks are contributing a lot to the total Import and Export of Bangladesh. Another comparative scenario is shown which is between the performances of Private Ltd. Banks and Public Ltd. Banks. This research will obviously help everyone to understand the contributing of Banks from the perspective of Foreign Exchange of Bangladesh. I have taken all the reasonable care to ensure the accuracy and quality to make the report standard. And I believe that it has included all the necessary information to be relevant.