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Chapter: 1Introductory Aspects1.1. Background of the study:
Internship program is the systematic gathering, recording and analyzing of data about the subject that a student goes to team on the program.The aim of this Internship program is to connect practical knowledge with theoretical knowledge. Now the world is a competitive world. So everybody has to be expert in both practical knowledge and theoretical knowledge.During my work, I have faced various obstacles. By the grace of Al Mighty Allah and by the help of some related person, I have overcome those problems successfully.
1.2. Objectives of the Study:
The objective of the study is to gather practical knowledge regarding banking system and its operations. Theoretical classes of MBA provide us theories regarding different subjects whereas practical orientation gives us the chance to view those systems and their operations. More precisely we can identify the objectives of this report as follows:
(To know about the general Banking activities of the sample banks.
(To observe the working environment in commercial banks.
(To know about the remittance of funds.
(To apply theoretical knowledge in the practical filed.
(To have exposure to the functions of foreign exchange section.
(To examine the rules and regulations of UCBL in exercising foreign exchange dealing.
(To observe the various investment indicators of UCBL.
(To evaluate the views of business community regarding the effectiveness of the foreign exchange dealing by UCBL.
(To know the organization of the sample banks.
(To study the existing overall banker customer relationship.
(To identify the problems, if any faced by the officials dealing in foreign business and to examine their views to solve them.3. MethodologyFor the procedure of different banking operations, I had observed the operations and worked with the officers at the same time I had interviewed the United Commercial Bank Limited officials for getting more information. For the analysis part, data have been collected from different statement and the annual reports of the bank. Information from primary sources has been collected Website of sample bank. Secondary sources are from journal and brochures of banks etc.4. Scope of the Study:Banking system occupies an important place in a Nation's economy. A banking institution is indispensable in a modern society. It plays a vita! role in the economic development of a country and forms the core of the money market in an advanced country. In recent times the banking sector over the world has been undergoing a lot of changes due to deregulation, technological innovation, globalization etc. Bangladesh banking sector is lagging for behind in adopting these changes.
In my report, the main areas of commercial banking have been covered is Foreign Exchange Section which comprises following three departments:( Foreign Exchange Department( Foreign Remittance Section( Import Section and( Export Section.5. Limitation of the Study:There have been some limitations from which these report suffers. The limitations are briefly pointed out below: Time is the first limitation as the duration of the program was of two and a half month only. Another limitation of this report is Bank's policy of not disclosing some data and information for obvious reason, which could be very much useful. The data that seems insufficient may be suffering from lack of reliability to some extent. Supply of more practical and contemporary data is another shortcoming. The study was not done very successfully due to inexperience. Recent -data is not available because of not holding AGM within 4 years.
CHAPTER - ONE
AN OVER VIEW OF PRIME BANK LIMITED
1.1 INTRODUTION OF PRIME BANK LIMITEDPrime Bank Limited (PBL) was established on 17th April, 1995 with an Authorized Capital of Tk. 1000 Million and Paid up Capital of Tk. 100 Million (raised to Tk. 200 Million in 1997) by a group of highly successful entrepreneurs from various fields of economic activities such as shipping, oil, finance, garments, textiles and insurance etc. It is a full licensed scheduled Commercial Bank set up in the private sector in pursuance of the policy of the Government to liberalize Banking & Financial services.
The Chairman of the Bank, Mr. Md. Nader Khan is a renowned business elite of Chittagong. He is also the Chairman of Drum Kulshi Girls High School, Fatikchari, Chittagong and Vice-President of the Governing Body of CIDER International School and also a member of the CIDER Trust. He has also been elected as Vice-District Governor of Lion District 315 B4 for the year 1999-2000.
The former Government of the Bangladesh Bank Mr. Lutfar Rahman Sarkar was the first Managing Director of the Bank. The Bank is being managed by highly professional people having wide experience in domestic and international Banking.
The present Managing Director Mr. Kazi Abdul Mazid has long experience in domestic and international Banking. The Bank has made significant process within a very short time due to its very competent Board of Directors, dynamic management and introduction of various customer friendly deposit and loan products.
1.2 ORGANOGRAM OF PBL
Managing Director (MD)
Deputy Managing Director (DMP)
Senior Executive Vice President (SEVP)
Executive Vive President (EVP)
Senior Vice President (SVP)
Vice President (VP)
Senior Assistant Vice President (SAVP)
Assistant Vice President (AVP)
First Assistant Vice President (FAVP)
Senior Executive Officer (SEO)
Executive Officer (EO)
Principal Officer (PO)
Senior Officer (SO)
Management Trainee Officer (MTO)
Junior Officer (JO)
Number of employees of PBL
The total number of employees of this Bank 460 (Four hundred sixty) as on May 2000. These as:-
No. of Employee
2.Deputy Managing Director
3.Sr. Executive Vice-President
5.Sr. Vice President
7.Sr. Asst. Vice President
8.Asst. Vice President
9.First Asst. Vice President
10.Senior Executive Officer
14.Management Trainee Officer
Total - 460
Number of Branches of PBL
Total Number of Branches of PBL is 20 (Twenty).
1.3 AT A GLANCE OF PBL AS ON 30TH JUNE, 1999
Business ReporterPrime Bank Limited performed well in the first half despite the difficult economic environment with an increase in operating Profit by 102% to Tk. 138.78 Million compared to the same period last year. The Bank also made its mark in efficiently managing its loan portfolio by keeping the Classified Loans and Advances at 1.98% being one of the lowest in the Banking Sector of the country, says a press relea
The Board of Prime Bank Limited takes the privilege to welcome you all to the Fifth Annual General Meeting and has the pleasure to present the Fifth Annual Report of the Bank along with the Annual Account and Auditors Report for the year 1999.
i) Bangladesh Economy-an Overview
Bangladesh is pursuing a prudent monetary and fiscal policy in order to achieve higher economic growth as well as maintaining macro-economic stability. The country has been largely successful in implementing the rehabilitation programs to make up the colossal damage caused by the devastating flood of 1998 and achieved 5.2 percent GDP growth in FY 1999 as against 5.7 percent in the previous year. The inflation rate has come down significantly to 7.2% at the end of November 1999 mainly due to bumper crop production. The monetary and credit policy for FY 2000 has been formulated with the objective of keeping foreign exchange reserves at a satisfactory level and rate of inflation at a tolerable limit. Adoption of measures like massive agricultural credit disbursement and increased input supply have contributed a lot to bumper crop production in FY 1999. Similar measures have also been undertaken to maintain higher growth in agriculture in current FY 2000.
Performance of the Industrial Sector, however, was not satisfactory during the year. After growing by 9.5% in 1997-98, industrial production fell to 2.5% in 1998-99. The total value of GDP, however, increased to US$ 36503 million compared to US$ 34059 million in the previous year increasing per Capita GDP to US$ 282 compared to US$ 268 in last year.
ii) Money and Banking
Monetary and credit policies in Bangladesh were pursued with a view to accelerate the pace of economic activities during FY 1999. Total domestic Credit during the year rose by 13.1% compared to 12.6% in 1998-99, net credit to private sector increased by 13.8% compared to 13% increase in 1997-98. Money supply growth was 8.6% in 1998-99 compared to 4.8% in 1997-98. During the year, Bank deposits increased by 14.2% to Tk. 592340 million which was 11.3% in the preceding year.
Total export earnings during the year 1998-99 was US$ 5324 million compared to US$ 5172 million in 1997-98 showing a growth of 2.9% Total import payment for 1998-99 was US$ 8018 million which was 6.6% higher than that of the previous year. The current account deficit increased to US$ 394 million from US$ 253 million in the preceding year due to increase in import