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Foreign Exchange Business (L/C) of the Prime Bank Limited Letter of Transmittal Jun 20, 2000 ............... Lecturer The School of Business Asian University of Bangladesh Uttara Model Town, Dhaka-1230. Subject : Submission of Internship Report. Dear Sir, It is my great pleasure to submit the internship report on "Motivation and its impact on organizational growth special reference to a Letter of Credit (L/C) Operation as a part of foreign exchange business to the Prime Bank Limited" Which is a part of BBA Final Semester to you for your consideration. I made sincere efforts to study related materials, documents, observe operations performed in Prime Bank Limited and Examine relevant records for preparation of the report. Within the time limit, I have to make this report as comprehensive as possible. But there may be some mistakes due to various limitations. For this reason, I beg your kind consideration in this regard. Thank You. Yours Faithfully, .............................. BBA Final Semester ID No - ...... The School of Business Asian University of Bangladesh Uttara Model Town,Dhaka - 1230.

AcknowledgementI express my sincere gratitude and thanks to my program supervisor ............, Lecturer, School of Business, Asian University of Bangladesh for his brilliant and excellence guidance and assistance to complete this report. On the other hand, I am really thankfulness from my deep heart to Late Mr. Anwar Hossain Senior Vice-President, Human Resources Division, Head Office, Prime Bank Limited, Motijheel, Dhaka. I also wish to express my gratitude to dear Mr. Yahya N. Adnan, Senior Vice-President & Branch in-charge and Mr. Md. Mahiuddin Ahmed, First Asst. Vice-President and many special thanks to Mr. Md. Abdul Bari Mollah, Senior Officer, Foreign exchange department, Prime Bank Limited, Mohakhali Branch, Mohakhali, Dhaka, for solving my problems with a smiling face. Finally, I am grateful to Prof. Dr.Jahirul Haque, Din of The School of Business, Asian University of Bangladesh for providing me such an opportunity to conducts a Internship program on "Motivation and its impact on organizational growth special reference to a Letter of Credit (L/C) operation as a part of foreign exchange business to the Prime Bank Limited."

AN OVER VIEW OF PRIME BANK LIMITED

CHAPTER - ONE AN OVER VIEW OF PRIME BANK LIMITED 1.1 INTRODUTION OF PRIME BANK LIMITED Prime 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.

Organogram Of Prime Bank Limited (PBL) 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 Sl. Employee Status 1. Managing Director 2. Deputy Managing Director 3. Sr. Executive Vice-President 4. Executive Vice-President 5. Sr. Vice President 6. Vice President 7. Sr. Asst. Vice President 8. Asst. Vice President 9. First Asst. Vice President 10. Senior Executive Officer 11. Executive Officer No. of Employee 1 1 1 1 13 12 8 15 26 38 55

12. Principal Officer 13. Senior Officer 14. Management Trainee Officer 15. Junior Officer 16. Driver

15 48 107 106 13 Total - 460

Business Reporter Prime 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 payment during the year. Bangladesh Bank reduced Bank Rate (the rate at which it lends to Commercial Banks) to 7% from 8% with effect from August 29, 1999. The minimum Cash Reserve Requirement (CRR) of the scheduled banks to be maintained with Bangladesh Bank has been reduced from 5% to 4% However, Statutory Liquidity Requirement (SLR) remained unchanged at 20%. Bangladesh Bank also placed severe restriction with regard to credit allocation to the Directors of Private Banks (Incidentally since inception, the Directors of Prime Bank do not borrow from their own Bank as a policy decision decision of the Board). iii) Prime Bank Limited Prime Bank Limited witnessed a considerable improvement in its overall business performance during the year 1999. The Bank achieved satisfactory progress in all areas of its operation and earned an operating Profit of Tk. 360.51 million showing a growth of 63% over the previous year. The Bank, as a prudent measure, marked down the value of investment in shares and securities to market price as on 31-12-99 by complying with International Accounting Standard (IAS-30) After making full provision, the net pre tax-Profit of the Bank for the year stood at Tk. 316.77 million compared to Tk. 17.39 million in 1998. The return on Assets (ROA) was 5.30% well above the industry average. iv) Capital Funds The Authorized and Paid up Capital of the Bank are Tk. 1000.00 million and Tk. 400.00 million respectively. The Bank raised its paid up capital from Tk. 200.00 million to Tk. 400.00 million during the year through Public Issue of 2,000,000 ordinary shares at par value of Tk. 100.00. With the increase of Paid-up Capital to Tk. 400.00 million, the capital base of Prime Bank Limited has become one of the strongest. The total Capital Funds of the Bank at the year end stood at Tk. 719.23 million against Tk. 293.70 million in the previous year. The Capital Adequacy Ratio is 15.14% as on 31-12-99, which is well above the stipulated 8% required for Banks in Bangladesh. The ratio of Tierl capital is 14.06%.

v) Deposits Deposits of the Bank grew by 44% to Tk. 7660.02 million as at 31st December 1999 as against national average of 14.20%. The Bank introduced several dep