report on partex
TRANSCRIPT
CCHAPTERHAPTER- ONE- ONE
INTRODUCTION
Islami Bank Bangladesh Limited.
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1.0 Background of the Study
This report was done as part of the requirement for successful completion of the internshipThis report was done as part of the requirement for successful completion of the internship
program. Exposure to the business world and acquiring practical work experience was theprogram. Exposure to the business world and acquiring practical work experience was the
primary objective of this assignment. I was attached with IBBL Bank ltd. For myprimary objective of this assignment. I was attached with IBBL Bank ltd. For my
internship. The report focuses on internship. The report focuses on Foreign exchange operation as I was attached with that as I was attached with that
division during the tenure of my internship. The topic for this report was decided upondivision during the tenure of my internship. The topic for this report was decided upon
after approval by my faculty advisor Mohammad Rakib Uddin Bhuiyan lecturer ofafter approval by my faculty advisor Mohammad Rakib Uddin Bhuiyan lecturer of
Northern UniversityNorthern University BangladeshBangladesh.
1.1 Scope of the Study
The scope of this paper is to discussion of various aspects of Foreign exchange operation
of IBBL.
Foreign exchange profile of the selected banks.
Foreign exchange Remittance Procedure.
Import policy.
Export policy
Letter of credit
Analysis of the findings and recommendation.
1.2 Objectives of the Study
The first objective of writing the report is fulfilling the partial requirements of the BBA
program. The main purpose of this study is to have a better orientation on Foreign
Exchange business performances of the bank. In this report, I have attempted to give an
overview of Foreign Exchange Operation of Islami Bank Bangladesh Limited . Following
are the other objectives
To familiar the history and operations of Islamic Banking in Bangladesh.
To show overall Foreign exchange proposal, appraisal procedures, documentation system of IBBL and Conventional Banks.
To show an overview of Foreign Exchange Operation of IBBL. To show the differences with conventional banking regarding Foreign exchange
aspects
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To identify strength and weakness of Foreign exchange of IBBL.
1.3 Methodology
The study is performed based on the information extracted from different sources
collected by using a specific methodology. First of all I selected the topic of the report
then I had to collect information relating to the topic by primary and secondary sources
and through personal interview. After gathering the information I had to determine the
procedure of research and sampling plans. After gathering all the information I required, I
have come up with an expected result of the report.
Population
All the Branches of IBBL located in everywhere in Bangladesh has been taken into
consideration as population.
Sample:
Islami Bank Bangladesh Ltd, New market Branch.
1.4. Sources of Information Source of data of this report can be divided into two categories:
Primary Sources: Practical experience of banking. Training, workshop & seminar. Related files, books study provided by the officers concerned.
Secondary Sources: Research papers, training materials, magazines. Annual Report ,Audit Reports of IBBL Banking related text books, Relevant books, Research papers, Newspapers and
Journals, Manuals. Class notes of IBTRA, Website of IBBL.
1.5 Limitations of the Study From the intention to make the report realistic and properly accepted this report has been conducted. However, many problems appeared in the way of conducting the study. During the study it was not possible to visit the whole area covered by the bank although the financial statements and other information regarding the study have been considered. The study considers following limitations:
The study does not cover critical analysis and implementations of comparative
study in an intensive manner.
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During my internship program up to date information was not published.
The time of this study was very inadequate to obtain depth knowledge in every
department.
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.
This study completely depended on official records and annual reports.
Confidentiality of data was another important barrier that was confronted during
the conduct of this study.
Rush hours and business was another reason that acts as an obstacle while gathering data
Lack of proper knowledge about internship title.
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CCHAPTERHAPTER- TWO- TWO
AN OVERVIEWAN OVERVIEWOFOF
ISLAMI BANK BANGLADESH LTD.ISLAMI BANK BANGLADESH LTD.
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Islami Bank Bangladesh Limited
2.0 What is Islamic Bank?
An Islamic Bank is a financial institution that operates with the objectives of
implementing and materializing the economic and financial principles of Islam in the
banking arena.
The definition of Islamic Bank as approved the General Secretariat of the OIC is stated in
the following manner. “An Islamic Bank is a financial institution whose status, rules and
procedures expressly state its commitment to the principle of Islamic Shariah and to the
banning of the receipt and payment of interest on any of its operations.”
According to Islamic Banking Act 1983 of Malaysia, “Islamic Bank is a Company which
carries on Islamic banking business. Islamic banking business means banking business
whose aims and operations do not involve any element which is not approved by the
religion of Islam.”
2.1 Why Islamic Bank?
The objective of Islamic banking is not only to earn profit, but to do good and welfare to
the people. Islam upholds the concept that money, income and property belong to Allah
and this wealth is to be used for the good of the society in general and human being in
particular.
Islamic banks operate on Islamic principles including profit and loss sharing, strictly
avoiding interest, which is the root of all exploitation and is responsible for large scale
inflation and unemployment.
An Islamic bank is committed to try its best to do away with disparity and establish justice
in the economy, trade, commerce and industry, build socio-economic infrastructure and
employment opportunities.
2.2.1 Introduction of IBBL.
Islami Bank Bangladesh is one of the pioneer private commercial bank of Bangladesh. It
was incorporated on 13.03.1983 as a public company with limited liability under company
act, 1913. The Bank started its business from 30.03.1983. IBBL is based on Islamic
Sharia’h. It is the first Islamic Bank in Southeast Asia. Now, it is the leading private
commercial Bank in Bangladesh. IBBL is committed to do its all activities in interest free
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profit sharing by complying Islamic Shari’ah. IBBL through its steady progress and
continued success has, by now, earned the reputation of being one of the leading private
sector banks of the country.
2.2.2 Mission of IBBL
To establish Islamic banking through the introduction of a welfare oriented banking
system and also ensure equity and justice in the field of all economic activities, achieve
balance growth and equitable development through diversified investment operations
particularly in the priority sectors and less developed areas of the country. To encourage
socio-economic uplift and financial services to the low income community particularly in
the rural areas.
2.2.3 Vision of IBBL
The vision of IBBL is to always strive superior financial performance, be considered a
leading Islamic Bank by reputation & performance.
To establish & maintain modern banking techniques.
To ensure soundness & development of financial system based on Islamic
principles.
To build–up a strong & efficient organization with highly motivated
professionals.
To work for the benefit of people& encourage savings in the form of direct
investment
Ensuring stability in financial system with accountability, transparency
&integrity.
2.2.4 Functions of IBBL
The functions of Islami Bank Bangladesh Limited are as under:
To maintain all types of deposit accounts.
To make investment.
To conduct foreign exchange business.
To extend other banking services.
To conduct social welfare activities through Islami Bank Foundation.
2.2.5 Aims & Objectives
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To conduct interest –free banking
To establish participatory banking instead of banking on debtor – creditor
relationship.
To invest on profit and risk sharing basis.
To accept deposits on Mudaraba & Al-Wadeah basis.
To establish a welfare-oriented banking system.
To extend co-operation to the poor, the helpless and the low-income group for
their economic upliftment
To play a vital role in human development and employment generation.
To contribute in achieving the ultimate goal of Islamic economic system.
Alleviating poverty through Zakat and profit sharing micro-finance.
2.2.6 Islamic Banking in Bangladesh
In August 1974, Bangladesh signed the Charter of Islamic Development Bank and
committed itself to reorganize its economic and financial system in accordance with
Islamic Shari‘ah. Earlier in November 1980, Bangladesh Bank, the Central Bank of the
country sent a representative to study the working of several Islamic banks abroad.
In November 1982, a delegation of IDB visited Bangladesh and showed keen interest to
participate in establishing a joint venture Islamic band in the private sector. They found a
lot of work had already been done and Islamic banking was in a ready form for immediate
introduction. Two professional bodies Islamic Economics Research Bureau (IERB) and
Bangladesh Islamic Bankers’ Association (BIBA) made significant contributions during
the formative stage of Islamic bank in the country.
At last, the long drawn struggle to establish an Islamic bank in Bangladesh come to a
reality and Islami Bank Bangladesh Limited was established in March 1983 in which 19
Bangladeshi nationals, 4 Bangladeshi institutions and 11 banks, financial institutions and
government bodies of the Middle East and Europe including IDB and two eminent
personalities of the Kingdom of Saudi Arabia joined hands to make the dream a reality.
Later other seven Islamic Banks, different Islamic Insurance Companies and Financial
Institutions were established in the country.
2.2.7 Corporate Information: 31.12.2009
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Islamic Bank Bangladesh Limited is a multinational Joint Venture Public Limited
Company engaged in commercial banking business based in Islamic Shari‘ah with 57.36%
foreign shareholding having largest branch network (211 brunches) among the private
sector Banks in Bangladesh. It was established on the 13th march 1983 as first Islamic
Bank in the South East Asia.
Date of Incorporation 13th March 1983 Inauguration of 1st Branch, Local Office, Dhaka. 30th March 1983
Formal Inauguration 12th August 1983 Authorized Capital Tk.10,000.00 millionPaid-up Capital Tk.4752.00 millionShare of Capital: a)Local Shareholders b)Foreign Shareholders
40.42%59.58%
Equity Tk.17932.00 millionZones 10Branches 211
Deposits Tk.195720.00 million (As on 31st
December’08)
Investments Tk.208430.00 million (As on 31st
December’08)
Foreign Exchange Business: Tk.342440.00 million (As on 31st
December’08)Number of Shareholders 31130Manpower 9260IPO 1985Listed in Dhaka Stock Exchange 19851st Rights Share issue 19892nd Rights Share issue 19963rd Rights Share issue 20004thRights Share issue 2003Opening of 50th Branch 26th November 1991 Opening of 100th Branch 12th June 1997Opening of 150th Branch 30th November 2004Joining/Agreement with CDBL 29th December 2004IDB President visit 31st August 2007IBBL Mudaraba Perpetual Bond issue 25th November 2007
Inauguration of Broker House 1st January 2008(Source: - Annual Report 2008)
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N.B- Annual Report 2009 has not published in internship duration.
2.2.8 Membership of Different Organization/Chamber
Local:
Bangladesh Institution of Bank Management (BIBM)
The Institution of Bankers Bangladesh (IBB)
Bangladesh Association of Banks (BAB)
Bangladesh Foreign Exchange Dealers' Association (BAFEDA)
Central Shariah Board for Islamic Banks of Bangladesh
International Chamber of Commerce- Bangladesh
Foreign:
International Association of Islamic Banks (IAIB), Jeddah, K.S.A.
Accounting and Auditing Organizations for Islamic Financial Institutions
(AAOIFI), Manama, Bahrain.
General Council of Islamic Banks & Financial Institutions (GCIBFI),
Manama, Bahrain (IBBL is a member of its Executive Council)
Society for Worldwide Inter-bank Financial Telecommunication (SWIFT).
2.3 SWOT Analysis of IBBL
SWOT Analysis:
SWOT Analysis is an important tool for evaluating the company’s Strengths, Weaknesses,
Opportunities and Threats. It helps the organization to identify how to evaluate its
performance and scan the macro environment, which in turn would help the organization
to navigate in the turbulent ocean of competition. The SOWT analyses of IBBL are
presented below:
2.4 Strength:
Adequate Finance: Islami Bank Bangladesh Ltd. has adequate finance. That is why
they need not to borrow money from Bangladesh Bank or any other banks.
More funds for Investment: For adequate financial ability they can provide loan to
the more investment clients.
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Honest and Reliable Employees: All of the employees of Islami Bank are honest
and reliable. They are always devoted themselves to the works for better customer
service. They have no corruption report.
It has vast years of experience since its establishment.
IBBL is only the Bank which is the pioneer of welfare banking system among all
other financial and banking organization.
At IBBL, the top management is the driving force and the think tank of the
organization where policies are crafted and often cascaded down.
IBBL provides its customer excellent and consistent quality in every service.
IBBL is a financially sound company.
IBBL utilizes state-of-the art technology to ensure consistent quality and operation.
IBBL provides its works force an excellent place to work.
IBBL has already achieved a good will among the clients.
IBBL has a research division.
2.5 Weakness
IBBL lacks well-trained human resource in some area.
IBBL lacks aggressive advertising
The procedure of credit facility is to long compare to other banks.
Employees are not motivated in some areas.
Absence of structured marketing and credit policy
Lack of coordination among the branches and Head Office.
2.6 Opportunities:
Emergence of E-banking will open more scope for IBBL.
IBBL can introduce more innovative and modern customer service.
Many branches can be open in remote location.
IBBL can recruit experienced, efficient and knowledgeable work force as it offers
good working environment.
The successful launching and needs to an Islamic Money Market in the country.
2.7 Threats:
The worldwide trend of mergers and acquisition in financial institutions is causing
problem.
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Frequent taka devaluation and foreign exchange rate fluctuation is causing
problem.
Lots of new banks are coming in the scenario with new service.
Local competitors can capture huge market share by offering similar products.
Lack of skill personnel because of poor salary structure rather than other private
banks.
Unknown attitudes of the people about the Islamic Banking.
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CCHAPTERHAPTER- THREE- THREE
INTERNSHIP POSITION AND DUTIES
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Islami Bank Bangladesh Limited.
3.1 First day at office:
I have started my internship program at Islami Bank Bangladesh Limited, New market
Branch from 31st January 2010. First day I reached office at 9.30 am. At first I met with
the branch manager Md. Jalaluddin (VP) with my conformation letter and he introduces
me with the entire officer in the branch. After introducing he placed me into Foreign
Exchange department in where all activities including L/C opening, Remittance etc. are
done. At first day I worked till 6.00 PM.
3.2 Working hours:
I worked there as like a permanent employee. Everyone is supposed to be in the office
within 10 AM. I have to maintain the time line. Though there is a sign out time but most
of the employee worked in office till 6.00 PM.
3.3 Working environment:
Our branch located in front of Dhaka College it is a so busy environment in our branch.
The work environment of the branch is so nice and fruitful. There are 60 employees in the
branch. All are so coorporative and helpful. I had more opportunity to learn about the
banking activities in this branch.
3.4 Job rotation:
Our total duration was divided into total working days that came to a total working days of
2 months. By the rotationally I worked every sector in the branch. And the times were
distributed in the following manner:
Departments Duration
IBTRA Training session 17th January to 30th January 2010.
Foreign Exchange 31st January to 28th February 2010.
L/C Opening (Export & Import) 31st January to 13th February 2010
Remittance 14th February to 28th February 2010.
General Banking 1st March to 7th March 2010
Investment 8th March to 16th March 2010.
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3.5 Working activities during my internship period:
The Following activities were done by me during my internship period.
3.5.1 Foreign exchange department:
My main focus was the foreign exchange department. In this part I was looking after the
foreign exchange related work. Always I tried to keep me busy with Mr. Ahmad Ulla
Officer of Foreign Exchange Department and tried to look carefully what is doing and
how. Basically I followed the dealings related to the points below:
Letter of Credit
Formalities,
Handling of Export Document,
Passing of different entries,
Posting of vouchers.
3.5.2 Account opening:
At the bank, account opening is the first and important for the bank authorities and client.
Most of the customers who come first time to open an account are not aware about the
procedures; in that cases I helped them to open the account smoothly. In this section I was
careful about the following
Mode of operation of different types of accounts,
KYC and their formalities for opening.
3.5.3 Cheque book issue:
I also work in cheque book issue in front desk. After receiving the requisition we cheek
the signature and issue cheque book. For 10 leaves book charge 10 taka, 20 leave 20 taka,
50 leaves 50 taka. But in most recent the branch provides micro cheque which is providing
by the main branch according the rules of Bangladesh bank. Now for the every leave the
bank charges 2.5 tk.
3.5.4 Demand draft issue:
By the DD any person can send money from one branch to another branch of IBBL. To
send the money he/she must fill up the IBBL prescribed form of DD and Paid
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charge/commission receive DD block. All the information of DD is describe in the DD
form.
3.5.5 Inward and outward cheque clearing:
After seven days I am working in clearing section. Here I deal with two types of clearing,
Inward and outward clearing. The cheques of Islami Bank Bangladesh Ltd New Market
Branch which are deposit in other bank, those cheques are come in our branch for
collection. We posted that cheque and debit client’s account. I also return some cheque
because of insufficient fund, wrong entry, signature differ and other reason.
In outward clearing we received others bank, then we posted that cheque in the Software
which is provided by Bangladesh Bank. After that we send the soft copy of posted cheque
in Bangladesh Bank for clearing
3.5.6 Check the balance and provide bank statement
Sometimes many customers came to know their balance in their account. I provide their
balance information to use the Software. I also provide the monthly or six monthly basis
bank statements to the client by using the software.
3.6 Learning Points:
Two months internship is the partial fulfillment of the course and a field of achieving
some practical experience and combines that with academic knowledge. Accordingly I
have joined in Islami Bank Bangladesh Limited at New Market Branch. To say honesty it
is a nice and dynamic Bank in current business world. The bank has commendable
contribution to enrich my knowledge and experiences. At the time of working in the
practical world I have found huge discrepancies between my academic knowledge and
practical situation. During the internship period I have actively attempted to attain some
new aspects. But sometimes it was difficult enough to perform in an appropriate manner
due to lack of required assistance of the organization authority. During two months
internship period I have learned lots of things. Few of them are listed below:
How to open an account.
Issuing check book to account holders.
Requirements to become an account holder.
How to deposit the money into the bank.
Considerable factors to invest money in potential sector.
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Requirement for investment.
Buying and selling process of foreign currencies.
How to opening LC, Back to back LC.
How to sue against detaulter.
Issuance of Credit card, promissory notes.
How to close an account.
How to maintain office time i.e. 10 am to 5 pm.
How to behave with the customers.
What are the basic reasons to dishonor a cheque.
Why the Cheque are sometimes crossed.
Working the two months as intern in IBBL enriched my knowledge and added some
technical quality in my experience; though I have learned lots of things, the bank could not
met what I have expected.
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CCHAPTERHAPTER- FOUR- FOUR
FOREIGN EXCHANGE OPERATION OF IBBL
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Islami Bank Bangladesh Limited. 4.1 Foreign Exchange Department:
Foreign Exchange Business of IBBL witnessed unprecedented challenge in the year 2008.
The challenge was particularly felt in import business in spite of starting the year with
good promise and high growth. Import business maintained more than 100% growth up to
June 2008 mainly due to high import of food grains, fertilizers etc. and price hike in some
cases up to 4 (four) times in the international market. This high volume of import business
resulted in creation of higher volume of investment in the form of special limits in favor of
different clients.
As a result, the import business growth took declining path from 94% in July to 23% in
December 2008 over the corresponding period. Export, Remittance and Treasury business
however maintained a steady growth except in the last 2 (two) months were month to
month growth fall considerably. This was due to the financial turmoil in the USA & EU.
They have however achieved the targets in those areas quite comfortably.
In this paper, I shall look back at the ups and down in foreign exchange business (import,
export, remittance & FEX dealing) of the bank in 2008, project the prospects of the
business in the coming year and suggest specific agenda in order to overcome the hurdles
and maintain a steady growth of the business in the New Year.
4.2 Meaning of Foreign Exchange:
Foreign Exchange means currency & trade exchange say conversion of one to another.
This is a part of economic & Science. This is a big deal divided into different currencies
instrument such as Draft, Traveler Cheque, bill of exchange business including sell,
purchasing of currency notes & TC etc. Currency Exchange means the conversion of one
Currency into another currency.
4.3 Foreign Exchange Market
Foreign Exchange market means the places where foreign currency is bought & sold. In
this more that supply, currency value. Alternately following are the features of foreign
exchange market:
Bank & client.
Different Banks in the same foreign exchange market.
Different Bank & Schedule Bank of the same country.
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Different Control Bank.
4.4 Overall Process of Foreign Exchange Business:
Like all modern banks, IBBL also operates in the area of the foreign exchange business. In
this perspective, IBBL performs the following tasks:
Opening letter of credit (L/C) against commission for importing industrial,
agricultural and other permissible items under Islamic Shariah and Import policy.
Opening letter of credit on the principle of Mudaraba sale, on the principle of
Musharaka sale and under wage earner scheme.
Handling of export / import document.
Negotiation of export / import document when discrepancy occurs.
Financing in import under MPI (Mudaraba Post Import).
Financing to export on profit or loss sharing.
Handling Inward and Outward remittance.
IBBL is playing a very important role in the foreign Exchange business of the country.
The foreign trade handle by the bank may be classified as under:
1. Import Business
2. Export Business
3. Foreign Remittance.
Letter of Credit & its Classification:
The first thing that is required to run foreign exchange business is letter of credit. A letter
of Credit is a conditional undertaking of payment by the issuing bank to the beneficiary.
As per UCPDC, there are two types of L/Cs:
Revocable
Irrevocable
Parties to an L/C.:
Issuing Bank/Importer’s Bank/Applicant’s Bank.
Supplier/Beneficiary/Exporter.
Confirming Bank (if any)
Documents required for opening L/C:
Branch will supply the following paper/documents to the client before opening of the L/C:
L/C application form
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LCA Form
IMP Form
Agreements (as applicable)
Charge documents etc.
The above papers must be completed and filled in and signed by the party and verified by
the branch.
Application for L/C;
At first the interested parties apply for opening L/C along with the required papers and
documents.
Sanctioning L/C:
Upon receipt of the application, dealing officer will initiate office note covering the
following:
Whether the client has valid limit.
Whether the proposal is within the limit or within the power of Branch incumbent.
The item to be imported is permissible.
Whether Credit Report of the supplier obtained as per instructions of the
Guidelines.
Market Report of the goods.
Competitive price of the goods
The indent bears the Indent Registration Certificate (IRC) number & Bangladesh
Bank permission of the Indenter.
The indent bears the signature of Agent & Importer.
On being satisfied, Branch will issue a letter of credit on behalf of the importer and send
the same to the beneficiary through any of our Correspondent banks.
Obtaining credit report of the Supplier/ Beneficiary:
The AD should obtain confidential report of the Suppliers/Beneficiaries from their
branches or correspondents abroad or in their discretion satisfy them-selves as to the
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standing, means by consulting standard books of reference issued by International Credit
Agencies.
Advising & Disposal of L/C copies:
L/Cs should normally be typed in Bank’s printed format in manifolds The Original L/C is
to be sent to the advising Bank for beneficiary & 2nd copy to the above bank at the same
time for their own purpose, 3rd copy for importer, 4th copy for reimbursing bank 5th & 6th
copy for office copy of the bank, 7th copy for IBW.,8th copy for CCI & E & 9th copy for
Bangladesh Bank.
Cash security for L/C:
Cash Security is to be obtained before opening of the L/C from the client as per sanction
of the L/C or as per requirement of Bangladesh Bank & that should be posted under the
heading Sundry deposit (Security L/C Cash) & recorded in the Security Deposit Register
party wise as well as L/C wise.
Realization of Bank charges:AD will realize commission & Bank charges at the time of Opening L/C as per Head
Office circular.
Maintenance of L/C Opening Register:
Particulars of the L/C to be recorded in the L/C opening register (B-56) putting L/C
numbers chronologically.
Amendment of L/C:
After opening of L/C amendments may be effected only if all the parties concerned are
agreeable i.e. the beneficiary, the importer, the issuing bank. For any amendment, the
importer must request the opening bank in writing duly supported by revised indent/pro-
forma invoice etc. where necessary.
4.5 Snap Shot of Overall Performance of Foreign Exchange Business of IBBL
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The two decades of foreign exchange business of the bank has been a success story. By
now, Islami Bank has established itself as one of the leading banks of the country in
foreign exchange business. As the bank continues to cover different milestones in its
success journey, total foreign exchange business of the bank stood at TAKA
599,370.55million at the end of 2007, with a share of 50.47% in Import, 24.49% in export
and 25.02% in remittance maintaining a good balance between inflow and outflow of
foreign currency for the country. The bank made 2nd highest contribution in the countries
import and remittance with 10% and 20% share respectively while in export the bank’s
contribution was the highest among the Private Commercial Banks (PCB) with a share of
around 10%. The bank has been playing a vital role in industrialization of the country and
earning valuable foreign exchange for the country from export and remittance services.
The table below shows the picture of foreign exchange business of the bank in the last 25
years with growth trend-
Table: Foreign Exchange Business of IBBL: Fig. in Million Taka
Year Import Export Remittance Total F. Ex
Business
Growth Rate
1983 10.80 - - 10.80 -
1984 861.60 63.70 443.80 1369.10 -1985 979.42 265.00 492.38 1736.80 27%1986 1800.61 622.42 1172.71 3595.74 107%1987 1578.45 971.15 1424.64 3974.24 11%1988 2015.30 1349.70 1125.40 4490.40 13%1989 3394.90 1543.80 901.60 5840.30 30%1990 3917.70 2588.30 1339.90 7845.90 34%1991 6204.27 3966.58 1814.13 11984.98 53%1992 8778.51 4948.81 2028.59 15755.91 31%1993 8612.70 5841.64 2402.51 16856.85 7%1994 14623.43 7790.42 2943.00 25356.85 50%1995 21218.38 11015.75 2447.21 34681.34 37%1996 17874.80 11766.40 3328.30 32969.50 -5%1997 17370.00 14469.40 4806.00 36645.40 11%1998 20238.30 14894.30 6360.60 41493.20 13%1999 20396.00 14798.00 8415.00 43609.00 5%2000 25327.00 16889.00 7644.00 49860.00 14%2001 25,907.00 16,082.00 9,879.00 51,868.00 4%.2002 33,788.00 16,673.00 14,670.00 65,131.00 26%2003 46,237.00 21,738.00 16,668.00 84.643.00 30%2004 59,804.00 29,151.00 23,669.00 112,624.00 33%2005 74,525.00 36,169.00 36,948.00 147,642.00 31%2006 96,870.00 51,133.00 53,819.00 201,822.00 37%
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2007 1,37,086.00 66,690.00 84,123.00 2,87,899.00 43%2008 1,68,329.00 93,500.00 1,40,420.00 3,95,193.00 27%
4.6 Performance of Foreign Exchange Business in 2008
2008 has been a very challenging year for IBBL in respect of foreign exchange business.
Although we made a good start in the beginning of the year and made good progress up to
the 1st half of the year, we had to curtail the growth due to the compelling situation of
bringing down the investments in line with the capital position of the bank. The financial
crisis in the USA & Europe also played its role. Export & Remittance business were
unaffected throughout the year except in the last 2 months. Our Summarized performance
in F.EX Business is shown as under:
(Million Tk.)
Achievement 2008 Business plan 2009
Business Target Achievemen
t
% of
achievement
Growth Target
Amount % of
growth
Import 199,000 168,329 85% 23% 244100 45%
Export 93,500 93,920 100% 41% 131500 40%
Remittance 126,500 140,420 111% 67% 211000 50%
In 2008 our market share stood at 10.25%, 9.56% & 23.07% in import, export &
remittance respectively while in 2007 it was 10.83%, 7.82% & 18.59%. The success is due
to the relentless efforts of the branch managers and their teams.
4.4.1 IMPORT BUSINESS
Import business involves transactions in foreign exchange. By foreign exchange we
generally mean foreign currency like US Dollar notes, Great Britain Pound etc. Bank notes
or what we commonly call foreign currency notes however, do not play any significant
role in settlement of international transactions. The term foreign exchange is used in
broader sense as a process of conversion of one currency into another. Foreign Exchange
and Foreign Trade is a part of economic science; it deals with the means and method by
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which rights to wealth in one country's currency are converted into those of another
country.
As our Bank is an Islami Bank, we have to abide by the principles of Islamic Shariah. Our
branches have to follow the internal circulars of the bank in respect of import business and
this guidebook. All of our AD Branches are instructed to follow this guide book at the
time of foreign exchange dealings. Any subsequent amendment, modification, addition of
foreign exchange circulars issued by Bangladesh Bank and our Head Office also to be
followed by the AD Branches.
4.4.2 Requirement for Import:
General Instructions on Import:
Unless otherwise specified, any Item, which does not appear either in negative
or in restricted list of Import Policy Order (IPO), shall be freely importable.
Unless otherwise specified, Item(s) included in negative list cannot be imported.
Any Item included in restricted list shall be importable only on fulfillment of the
conditions specified by the competent authority (CCI&E) against the item.
Goods from countries banned by IPO or goods originating from those countries
shall not be importable. Goods shall not also be importable in the flag vessels of
those countries.
Pre-shipment inspection (CRF) is mandatory for import of any item other than
export oriented & Tax free items.
4.4.3 Registration of Importers & procurement of Import Registration Certificate
(IRC):
In terms of the Importers, Exporters, and Indenters’ (Registration) order- 1981, no person
can import goods into Bangladesh unless he is registered with the CCI&E or otherwise
exempted from the provision of the said order. Before any Letter of Credit (LC) is opened
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or remittance made for imports into Bangladesh, AD branch should verify that the
importer is registered with the CCI&E or otherwise exempted from such registration. The
AD branch should ensure that the registration number of the importer is invariably
furnished on the IMP form. Where the importer is exempted from such registration, a
suitable mention of this fact should be made on the IMP form.
The CCI&E authority receives applications from the persons or institutions that are
interested to become importer. These persons are given Import Registration Certificate
(IRC) if they fulfill the criteria & submit application to the CCI&E along with papers
required by the CCI&E as under:
Nationality Certificate.
Certificate from the Chamber of Commerce & Industry/Registered Trade
Association
Bank Solvency Certificate
Trade License
Income tax paid Certificate (TIN Number
Any other documents required by CCI&E.
4.4.4 Import Formalities & Procedures
Application for Import: -
A valid importer will submit the following paper/documents to his Bank to open
an L/C:
L/C Application form duly signed by the importer with adhesive Stamp (the stamp
value may increase or decrease as per policy of the Govt.).
Indent/pro forma Invoice.
Insurance Cover Note
LCAF duly filled in & Signed by the importer
Membership Certificate from Chamber of Commerce/Trade Association.
Tax payment declaration
Charge documents such as Musharaka/Murabaha/Bai-Muazzal Agreement
IMP & TM form (Travel & Miscellaneous Form).
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IRC, Pass Book, Trade license, Membership Certificate from the Chamber of
Commerce or their recognized /affiliated body in case of new customers.
VAT registration Certificate
Export L/C in case of Back to Back L/C
Any other paper/document that may deem necessary.
LC Authorization Form
The ADs are authorized to issue 'Letter of Credit Authorization Forms' (LCAFs) in
conformity with the IPO allowing imports into Bangladesh. LCAFs or import permits or
clearance permits are not required for imports by the Ministries and government
departments. The LCAFs available with the ADs, are issued in sets of 5 copies each. Of
these, the one marked "For Exchange Control Purpose" should be used for opening LC
and for effecting remittances. The ADs should be very careful about compliance with the
instructions of the Import Policy Order (IPO) and relevant Public Notices in the issuance
of LCAFs.
Authentication/Registration of LCAF:
When the importer submits LCAF (Letter of Credit Authorization Form) with other papers
to the Bank to open L/C, Bank will authenticate the LCAF, confirming the following:
IRC, renewal fee paid.
Item to be imported is eligible as per import policy /pass Book.
LCAF is duly filled in and signed by the importer.
Bank will endorse the value with particulars and equivalent Taka on the back of exchange
control copy of LCAF
Endorsement on LCA FormsAt the time of opening of L/C against a LCA form, full particulars should be endorsed on
the back of the Exchange Control copy of the relative LCAF form under stamp and
signature of the authorized official of the branch. The amount of Taka equivalent of the
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L/C amount should be shown after converting the F.C. amount into taka at the ruling rate
of exchange.
Validity of LCA for shipment
Unless otherwise specified shipment of goods shall be made within seventeen months in
the case of machinery and spare parts and nine months in the case of all other items from
the date of issuance of LCA Form by bank or registration of L.C Authorization Form with
Bangladesh Bank Registration unit as the case may be.
Lodgment of Imports Bills:
Upon receipt of import documents it must be checked with L/C carefully and if it is found
in order, entry to be made in the Bill Register & necessary voucher to be passed putting
Bill number on the documents. This process is called lodgment. Documents must be
lodged immediately after receipt of the same.
Scrutiny/ checking of Import Bills:Documents normally consist of –
Financial document i.e. bill of Exchange/Draft.
Commercial documents i.e. invoice, packing list, Inspection Certificate,
Certificate of Origin, Export License, etc.
Transport documents i.e. Bill of lading, Air Way bill, Truck receipt, Railway
receipt & Postal receipt and
Insurance documents, Insurance advice etc.
Other documents
Intimation to the Importer:
Upon receipt of the shipping documents, Importer is to be advised with full particulars of
the date of lodgment with request to retire the document.
Refusal of documents by nominated bank / confirming bank / issuing bank: It may refuse
to honor or negotiate. It is the sole judgment of the issuing bank approach the applicant for
waiver of the discrepancies (Article –16.b)
Discrepancy Notice:
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When Nominated Bank/ Confirming Bank/ Issuing decides to refuse to honor or to
negotiate it must give a single notice to the presenter within 5 banking days following the
date of its receive..
Retirements of Import Bills:
Then they retire the import bill according to the rules and regulations of the bank.
Realization of Bank dues:At the time of retirement, Bank will realize all dues & charges from the client as per Head
Office circular.
Endorsement of Import Documents & Delivery of Shipping Documents:
After realizing all charges & dues from the client, Bank will endorse the documents
favoring C&F agent / client, & hand-over the shipping documents
Payment of Import Duties, VAT etc. (In case of MPI)
At the time of taking delivery of goods from the port, custom duties, VAT, Port Charges
etc. will be paid by the L/C opening Bank through C&F Agent. For releasing goods
through port branch, they will issue IBDA for required amount and after receiving the
IBDA, L/C issuing branch will respond the same by debiting importers/clients investment
Account. Prior instructions along with documents are to be sent to clearing (Port) Branch
Approved methods of payments:
Letter of Credit may be established providing for payment to the beneficiary
located either in the country of origin of goods or in the country of shipment of
goods.
Letter of Credit may also be established providing for payment to the beneficiary
in a third country, not being the country of origin of goods or the country of
shipment, provided the Authorized Dealers are satisfied that the payment to the
beneficiary in a third country does not involve any extra expenditure.
Letters of Credit established as per the three above should provide for payment in
any of the following manners:
In any freely convertible currency like U.S. Dollar, EURO, Pound
Sterling, Japanese Yen etc.
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In local currency of the country of the beneficiary or in the currency
of the country of origin/shipment of goods, or
In TAKA for credit to the non-resident bank account of the country
of the beneficiary or of the country of origin/shipment of goods.
For imports from the countries who are members of Asian Clearing
Union (A.C.U) – in Asian Monitory Union (AMU), Bangladesh
TAKA or in the currency of the supplier.
It is also not permissible to establish L/C providing for alternate countries of origin
of goods unless prior approval of the Bangladesh Bank is obtained.
Payments for imports under various commodity exchange agreements will be
governed by the instructions issued by the Bangladesh Bank from time to time.
4.4.5 Import & Export Business under Islamic Framework
The banking system aiming to achieve the goal of Islamic economy through setting a well
designed Islamic Monitory system. Regarding use of money or exchange of currencies
Islam has its clear-cut instructions through some distinctive guidelines. Avoiding interest
(Riba), restricting exploitation & speculation etc. are the major guidelines in this exchange
process. So Islamic Banking system is doing banking business under Islamic guide lines.
So, what are the guidelines of Islam for Foreign Exchange Business or how Foreign
Exchange Business is done under Islamic banking system?
4.4.6 Financing Foreign Trade:
In modern banking Foreign Trade is taken into a shape where customers are provided with
various products and services, by the bank. They get financial assistance at all stages of
their Import & Export trade from bank. Almost all such facilities can be provided under
Islamic mode. The general principles in financing import and export business are
elimination and avoiding of interest in all operation. The different Islamic modes are as
under:
Source of Finance for Imports:
Cash –
a. Cash foreign exchange (balance of foreign exchange reserve
with Bangladesh Bank)
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b. Foreign currency account maintained by Bangladeshi nationals
working / living abroad.
External source (Commodity Aid. Loan, Credit or Grant)
Commodity exchange - Barter and Special Trading Arrangement
(STA):
Commercial importers and industrial consumers may utilize their respective shares under
Barter / STA as notified.
Import under the Special Trading Arrangements (STA) which are or were conducted with
prior approval / permission of the Government shall be subject to the specific procedures
laid down by the government in this respect. The provision of this paragraph will remain
effective only up to the time of completion of on-going agreements.
4.4.7 Import Finance
Mainly three types of import are done purpose wise.
Import of trading item for ultimate user or consumer.
Import of Raw materials or industrial item for further processing or further
production
Import of Capital Machinery & Capital Item.
In all types of import usually the importer take bank finance. Under Islamic modes,
finance can also be made for the first two types under Bai-Murabaha & Bai-Muajjal mode
and for the 3rd type under Hire-Purchase under Shirkatul Melk (HPSM) mode. Import
finance can also make under Bai-Salam or Musharaka or Mudaraba modes.
Islami Banks have to perform its all transactions related to import & export by abiding the
National and International rules/regulations in addition to its own
rules/regulations/guidelines etc.
Bai-Murabaha means "Sale on agreed upon profit" and in case of import we can do the
same practice. As per the procedure Bank purchase goods from foreign supplier and sale
to the importer/client. As per international banking practice and as per UCPDC goods
consigned to the opening bank i.e. the owner of goods is bank till transfer the ownership
by endorsement on the back of Bill of Lacing (B/L) or other transport document. Also as
per UCPDC payment claim by the supplier of the goods to the L/C opening bank through
drawing bill of exchange on Bank.
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As per Islamic Banking practice import finance under Bai-Murabaha is made under single
deal covering the investment at L/C stage, Bills stage, and post import stage as under:
Murabaha Import L/C
Murabaha Import Bills
Murabaha post Import
IMPORT UNDER BAI-MUAJJAL
It is a Contract between a Buyer and a Seller under which the seller sells certain specific
goods (permissible under Shariah and law of the land) to the buyer at an agreed fixed price
payable at a certain fixed future date in lump sum or within a fixed period by installment.
IMPORT UNDER HIRE PURCHASE UNDER SHIRKATUL MELK (HPSM)
For import of machinery and other durable and reusable item import is made under HPSM
mode. HPSM is a mechanism as combination of three systems namely- Izarah, Shirkat and
Bai-(Purchase and Sale) Bank and client import the item jointly sharing money as per
agreement i.e. Shirkat Bank gives lease of their portion at an agreed rent. Bank Sale their
portion of the property gradually by receiving periodical payment from the client.
IMPORT UNDER MUSHARAKA.
Musharaka is the mode of investment where the equity participation of both the bank and
client is essential. In this case unlike Bai-mechanism no sale price is fixed. The profit
earned is shared between the bank and the clients at agreed ratio. In case of any genuine
loss arises then it will also be shared between the bank and the client as per equity ratio.
IMPORT UNDER MUDARABA
When the capital user/entrepreneur has no capital and the capital holder has got no direct
participation in the business, then such type of business is calling Mudaraba.
In case of import bank may finance under Mudaraba mode paying full cost of imported
goods. In such case bank may supervise the utilization of Capital, its return and operation
process involved. Client is under obligation to maintain all documentation and record of
sale and purchase of goods. Profit will be shared as per agreed ratio, and loss will be beard
if genuine by the bank.
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4.4.8 Import under Back to Back L/C:Back-to-Back L/C is a L/C backed by another L/C i.e. this type of import L/C is opened
against lien of Export L/C/Mother L/C/Master L/C.
Classification of BB L/C:
Foreign BB L/C.
Inland BB L/C.
Procedure of opening of BB L/C:
Documents to be obtained from the client-
Preparation of Credit report on the client:
Preparation of BB L/C proposal:
Numbering of L/C in the L/C opening Register
Transmission of L/C:
Disposal of L/C copies
Realization of Bank Charges
Lodgment of BB Bills
Conveying of Acceptance
Payment/ settlement of BB Bills.
Realization of Bank dues and charges.
Collection/ Submission of Bill of Entries & Matching thereof
4.10 A Comparative analysis of Import Business of IBBLIf we analyze the scenario of 2008 in which the import business was conducted, we
find the followings:
High growth up to June, 2008:
The target growth for 2008 in import business was 45%. With the high growth of
import in the first four month of 2008 (167%, 143%, 135%, 173%) from January to
April in individual months which continued up to July in aggregate figures too due
to high volume of imports of fertilizers, food items, industrial raw materials etc., it
was presumed that we would be able to achieve the target-growth quite
comfortably. The figures may be seen from Table: Import
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Comparison of Import: month to month 2007 & 2008
Sep
Oct
Nov Dec
Sep
Oct N
ov Dec
Feb
07
Jan
07
Mar
07
Apr 0
7
May
07
Jun
07
Jul 0
7
Aug
07Feb
08
Jan
08
Mar
08
Apr 0
8
May
08
Jun
08
Jul 0
8
Aug
08
0
5000
10000
15000
20000
25000
Mill
ion
Tk.
2007 7235 7537 7811 8602 10112 9634 10760 12281 11206 17,475 16898 17535
2008 19305 18337 18371 23490 14511 13719 10574 10804 10543 7429 9410 10217
Growth in amount 12070 10800 10560 14888 4399 4085 -186 -1477 -663 -10046 -7488 -7318
Growth in % 167% 143% 135% 173% 44% 42% -2% -12% -6% -57% -44% -42%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Table: Import
4.5.1 EXPORT BUSSINESS:
Export Business occupies a very important position in the Balance of Trade and Balance
of payment of the country. Export occupies an important position in the foreign exchange
business portfolio of the bank. In handling export business, certain Acts, guidelines, &
regulations have to be followed such as the Export Trade Control Regulation Act,
Guidelines for Foreign Exchange Transactions published by Bangladesh Bank and Export
Policy issued by Ministry of Commerce from time to time. At the same time, as a Shariah
based Bank, our export business should comply with the provisions/ principles of Islamic
Shariah. If any of the provisions of this guidebook contradicts in any way the government
rule or accepted international banking practice in that case the government rule or the
international banking practice (ISBP) will reign on this book. Any subsequent not covered
in this book must also be followed. If any area of foreign exchange business is not covered
in this book in that case the prevailing rules of Bangladesh Bank and international norms
have to be followed.
Definition and Classification of Export:
By export we generally mean selling of visible and invisible goods and services outside
the country against letter of credit, firm contract or Advance payment. Besides, local
supplies against Letter of Credit /contract through banking channel are also deemed as
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export. However the local export does not need to be reported to Bangladesh Bank in the
schedules.
Types of Export:
Export must be executed under the following payment/settlement system
Export against L/C or firm contract
Export against Advance payment
Export under consignment basis
4.5.2 Export stage (Procedure to be followed for handling foreign export business):
Certification of EXP Forms
In order to avoid any loss of foreign exchange of the country, branch shall not certify any
EXP form unless they have satisfied themselves with regard to the following:
Arrangements have been made for realization of export proceeds within the
prescribed period.
Arrangements have been made for receipt of title to goods like Bill of Lading,
Airway Bill etc. by the branch on shipment of the underlying goods.
The EXP Form has been signed either by the exporter or his authorized
representative.
Formalities for Negotiation (FBN)/Collection of Payment (FBC) after execution of
export by the exporter.
Submission of Export Document/Bill by the exporter
Export bill is a set of documents prepared by the exporter/beneficiary after execution of
export as per requirement of export L/C/Sale Contract for receiving payment. The exporter
will submit the documents to the nominated bank along with the Duplicate, Triplicate and
the Quadruplicate copies of the EXP forms. Export bill may consist of:
Financial document i.e. Bill of Exchange/Draft,
Commercial documents i.e. Invoice, packing list, Inspection Certificate,
Certificate of Origin, Export License, etc
Transport documents i.e. Bill of lading, Air way bill, Truck receipt
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Railway receipt & Postal receipt and
Insurance documents.
Any other document stipulated in the Credit.
Scrutiny /Examination of documents
Checking of Amendment of the L/C:
The following points should be considered:
Whether amendment(s), if any, have been accepted or rejected by the concerned
parties:
The beneficiary or other parties may have to be contacted for the matter.
The same may also be determined by an examination of the documents.
Bill of exchange/ Draft:
The following points should be considered:
It is drawn under the correct letter of credit.
Appears to be drawn and signed by the beneficiary
If the documents are under a transfer, drawn by the second beneficiary.
Tenor is in accordance with the terms of the credit.
Is correctly endorsed, (if necessary).
Amount in words is exactly equal to amount in figures, and both amounts indicate
the currency, as stipulated in the letter of credit.
Drawee is as required in the letter of credit.
Amount does not exceed the balance of the letter of credit or the amount
permissible under the letter of credit.
Amount agrees with that of the invoice, unless otherwise stipulated in the credit.
Does not appear to have been altered, but if so, that alterations have been
authenticated.
Contains any clause required in the letter of credit.
Checking of other documents:
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Other documents have to be checked as per International standard banking practice
outlined in the latest I.C.C Publication No. 500 on Uniform Customs & Practice for
Documentary Credits. In addition, the International Standard Banking Practice (ISBP) for
the examination of documents under Documentary Credits, ICC Publication No. 645
should also be followed.
Recording of L/C particulars:
Full particulars of the L/C to be entered in the L/C Advising Register B-78 allotting
separate serial number for each L/C in the Register. The same serial number has to be
noted on the top left-hand corner of the printed L/C advising form or on the original L/C
itself as the case may be.
If we are not requested by the Issuing bank to add our confirmation the L/C, we must not
add our confirmation. In such cases, the matter should be explicitly noted for the
beneficiary by incorporating the following clause in our advising letter and/or in the body
of the L/C advising format as the case may be: ‘Since we have not been requested by the
opening bank to confirm the L/C, this advice conveys no engagement or
responsibility on our part’.
Negotiation/Purchase of documents
As per Art No. 10 (b) ii of UCPDC-500, Negotiation means the giving of value for Draft
and/or documents by the bank authorized to negotiate. After scrutiny of documents, if it is
found in order, bank may negotiate the documents. And office note should be initiated
note for taking decision negotiation & disbursement of fund.
Negotiation under Reserve
Bank may negotiate documents under reserve if not prohibited in the L/c and ask for
waiving of discrepancies from the L/C opening Bank/Applicant.
Purchase against indemnity or Sending on collection:
If the documents are not in order (discrepant), bank may purchase the documents against
indemnity depending on the past performance of the client or send the documents on
collection basis
Sending of documents to the L/C opening bank for payment:
Preparation of forwarding schedule:
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After negotiation /receipt of the documents, the documents are to be sent for payment or
on collection basis. For this purpose a forwarding schedule (F-127) as to be prepared.
Specific instruction regarding A/C Number and Bank name where payment to be remitted
by the paying bank has to be mentioned. Two authorized officers must sign on the
Forwarding Schedule.
Endorsement of documents
Documents should be endorsed; especially bill of Exchange (draft) and full set Bill of
Lading in favor of L/C opening Bank or as per instruction in the Credit.
Dispatch of documents:
After proper endorsement and forwarding schedule duly filled in, the export documents
are to be dispatched to the L.C. issuing Bank or as per instruction of the credit through
banks enlisted/nominated courier/express mail service.
Ledger/Register/File maintenance
Export bill wise entry should be made in the export bill register (B-93). The FBN voucher
to be posted in the FBN ledger (B-79 bill wise and party wise). The bill wise file should be
maintained properly for record and follow up.
Documentation:
Branch will obtain usual charge documents from the exporter. Specially the General
Indemnity from the client. Branch may also obtain specific indemnity from the exporter
against discrepancy (ies) in the export bill.
Disposal of Duplicate EXP form:
Bank will forward the duplicate of the EXP form to the nearest controlling office of
Bangladesh Bank within 14 days of shipment.
Follow up/correspondence:
After dispatch of the documents branch will make proper follow up and make necessary
correspondences to realize/repatriate the proceeds in time. Branch will take up the case
with the L/C opening Bank if the documents are in order. branch will take up the matter
with the exporter if the bill was purchased under indemnity and payment refused by the
L/C opening bank. Correspondence will continue till repatriation of the proceeds. As per
Bangladesh Bank Foreign Exchange Guidelines, proceeds should be repatriated within 120
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days of export. If the proceeds are not repatriated within the prescribed period, AD should
report that to Bangladesh Bank.
Accounting for realization:
Upon receipt of confirmation from the correspondent’s Local Rep. Office or from our
Head Office of payment of bill amount by the paying bank in the NOSTRO A/C, the
following voucher/entries has to be passed for adjustment of the Investment A/C:
Dr. IB General A/c Head Office, IBW (by Mid rate)
Cr. Foreign Bills Purchased / Negotiated (FBP/FBN) A/c
Cr. Exchange A/c.
Cr. Investment Income A/c (FBP/FBN)
Issuance of PRC: (Proceeds Realization Certificate)
The exporter/client may apply for PRC (Proceeds Realization Certificate) in writing in
their letterhead pad stating detailed information such as – (i) Export L/C number, (ii)
Invoice value, (iii) Realized value, (iv) Date of realization. If satisfied on checking, PRC
may be issued.
Payment of local agent commission.
At the time of negotiation, the amount of commission payable to the buying house/ local
agent should be kept in the marginal deposit account (Under Reserve), at the rate
mentioned in the transfer letter/condition. After realization of exports proceeds, local agent
commission is to be paid against application of the exporter(s).
Where the proceeds are received after collection, the local agent commission is to be paid
directly by debiting IB General A/C as per transfer instructions mentioned on the reverse
of the export L/C and as per request of the exporter.
Disposal of Triplicate & Quadruplicate of EXP Form
The Triplicate copy of the EXP form should be reported to Bangladesh Bank after
realization of proceeds in the month following the month of realization through schedule
A-1/01. The quadruplicate should be kept as office copy for record
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4.5.3 Export Finance
Export means flow of goods and services produced within Bangladesh but purchased by
economic agent (individuals, firms & government) of other countries. In other words in
case of exports products sold outside the country. So getting payment against such sale
usually require different time span depending on the terms of sale contract or relative
payment terms of export L/C.
In view of above exporter require immediate fund and other financial facilities to execute
their export order. It is the bank who extends such facilities as needed by the exporter.
And facilitating export by financing exporter at different stages is now important part of
bank’s activities.
Exporter requires financial assistance at two stages namely
1. Pre-shipment stage &
2. Post–shipment stage
So, export finance is classified into two categories
1. Pre-Shipment finance
2. Post-Shipment finance
Different Islamic modes are there for financing export at two different stages as mentioned
above.
4.5.4 Pre-Shipment Finance under Islamic Modes:
Bank facilities/ investments at pre-shipment stage:
At pre-shipment stage exporter may require funded or non-funded investment/facility and
may approach/propose for such investment. The exporter may also apply for post shipment
investment after execution of export. The non-funded facility includes Back-to-Back L/C
facility/guarantee for import /procurement of raw materials for production of finished
goods (outlined in Import chapter). The funded Investment is required to procure finished
goods, processing/production of finished goods and meeting other working capital needs.
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The funded investment need of the client may be met applying a number of modes.
Murabaha or bai-Muajjal (export) may be applied in case of commercial items. In case of
industrial items especially for RMG sector, Bai-Salam Investment mode is to be applied
The non-funded facilities are to be rendered as per Guidelines of Bangladesh Bank. The
Funded Investments of Bai-Salam, Bai - Murabaha and Bai Muazzal are to be rendered as
per respective manual(s) of the Bank.
Pre-shipment finance as the name suggest, given to finance the activities of an exporter
prior to the actual shipment of goods for export. The purpose of such finance is to meet
Working Capital needs starting from the point of purchasing raw materials to
transportation of goods for export to foreign country. Pre-shipment finance is given for the
following purposes.
Finance for local procurement of goods.
Procuring and processing of goods
Packing & transportation of goods
Payment of Insurance premium
Payment of utility bill
Payment of wages and salary
Freight charge.
Pre-shipment finance can be made under Islamic mode as follows.
Post Shipment Finance
Post shipment finance is made by the bank after shipment of the good by the exporter.
Exporter made/arranged all document as per the requirement of the L/C terms or as per
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contract terms, then submit to their bank (IBBL in case of our exporter client). Upon
submission of the documents bank provide finance under the following modes:
Bai-as-sarf
Bank purchase the foreign currency value of the documents under Bai-As-Sarf: Foreign
Documentary Bill (FDB).
Bai-As-Sarf is a trading mechanism where the bank buy foreign currency from the client
at an agreed rate. In case of Bai-As-Sarf: FDB bank purchase the value of the export
documents expressed in Foreign Currency and paid equivalent taka in favor of the client.
The client will get net amount after adjustment of their respective liabilities, if any. After
realization of documents value from the issuing bank/importers bank abroad the FDB
liability will be adjusted and bank will earn exchange income from it.
Musharaka Documentary Bills (MDB) Inland:
In order to avoid the risk associated with the Foreign Currency Positions against purchase
of Inland Export Bills and at the same time to meet the finance need of the valued clients,
Islami Bank Bangladesh Ltd. introduced Musharaka mode of finance in place of Inland
Bills Purchased (IBP) as Post shipment finance. The new investment mode will be titled
“Musharaka Documentary Bills (MDB) inland”.
Apprehension of fall of export orders:
It was apprehended that orders will fall due to the financial crisis and closure of different
chain stores in USA & Europe which take the major share of exports from Bangladesh. It
is of course a bit early to comment conclusively in that way as the figures are yet to arrive.
On the other side, it is reported that due to high production cost in China, a good portion
of the low end orders are coming to Bangladesh which will compensate the fall of orders
in other RMG items.
Much will depend on success of the bailout efforts & the economic recovery plan that is
being taken in the USA and European Union. And also on the ability of the Bangladesh’s
export to attract low end orders at a comparatively low cost that china and other competing
country.
All these things combined, it cannot be said that everything would be positive in the
coming year. I propose as under:
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Dealing with Discrepant documents
Discrepancies:
Any deviations or lapses of the documents with the L/C terms, the applicable provisions of
these rules and international banking practice to be treated as discrepancy
Scrutiny of Shipping Documents, handling of discrepant documents both Import &
Export related.
As per Article 5 of UCP-600 Banks deal with documents and not with goods, services or
performance to which the documents may relate.
Documents as per UCP
Commercial Invoice
Transport Document (B/L, AWB, TR & RR etc.)
Insurance documents
Bill of exchange (if L/C available by Acceptance).
Other Documents (As per requirement of the Credit)
Other Documents
These are the other documents:
Certificate of origin
Packing List
Inspection certificate
Shipping Advice
Carrier Certificate
Radio Activity measurement Certificate.
Pythosanitary Certificate
Fumigation Certificate
Weight Certificate/list
Beneficiary Certificate
Analysis Certificate and others
Complying presentation
As per UCP documents may be treated complying presentation if document fulfill the
following:
In accordance with the terms and conditions of the credit.
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The applicable provisions of the UCP
International standard banking practice (ISBP-681)
Must not conflict with other documents or credit
Examination of Documents:
Bank has to examine / scrutinize the documents with reasonable care whether the
documents complied with the terms and conditions of the related L/C and international
standard banking practice as well as UCP.
Banks should examine a presentation on the basis of the documents alone to determine
whether or not the documents appear on their face to constitute a complying presentation,
as outlined in Article 14 (a) of UCP600.
Examination of draft
Examination of Invoice
Insurance:
Examination of B/L, AWB, TR, Rail Way Receipt & Post parcel receipt
Certificate of origin:
It should be signed, dated and properly titled.
It should be issued by the competent authority as called by the terms of
credit.
It certifies the country of origin and must indicate that the origin of the
goods is from the country as called by the L/C.
Description of merchandise in the certificate should be the same as that given in the
invoice.
Packing List:
Weight certificate / list
Inspection certificate
It is properly titled, signed and dated.
Examination of other documents:
Moreover, there weight list, inspection certificate, certificate of measurement, quality
certificate, chemical analysis etc. Which are often required as per contract. Each of these
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documents should describe the goods invoiced as per L/C terms. These must be signed and
authenticated by the appropriate authority.
These certificates are usually dated before date of shipment.
Common discrepancies found in shipping documents
General:
a. Late shipment effected
b. Late presentation of documents
c. Early shipment i.e. shipment made prior to issuance of L/C or time
stipulated in L/C
d. L/C expired
e. L/C overdrawn
f. Partial shipment or transshipment effected in contrary to L/C terms.
Bill of exchange
Invoice
Packing list
Bill of lading:
Others:
i. Non-negotiable documents not forwarded as per L/C terms.
ii. Inadequate number of invoice, packing list, B/L etc. submitted.
iii. Short shipment certificate not submitted
iv. Certificate of origin differs with L/C terms.
v. Shipping Company Certificate regarding ownership of vessel not
issued
vi. LCA Form, IRC, HS Code and Export L/C number are not
mentioned in all documents as per L/C terms.
Realization formalities of export proceeds of bills with discrepancies
Discrepant export documents may be sent to the L/C opening bank on collection basis for
realization of export proceeds thereof
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Discrepant export documents may be settled upon negotiation of he seller and
buyer
Discrepant export documents may be settled on discount upon negotiation between
the exporter and importer with prior permission of Bangladesh Bank
Searching of prospective new buyers at the importers country abroad for
selling out the consignment if the issuing bank refuse to accept discrepancies and
so refused by the importer.
At last if other wise any dispute arise such cases of dispute s shall have to be
settled upon appointing a solicitor in terms of UCP-600.
4.5.4 A Comparative analysis of Export Business of IBBL
If we analyze the scenario of 2008 in which the export business was conducted, we find
the followings:
Steady Growth: Export business achieved 101% of the target and maintained a steady growth all over the
year i.e. more than 41% up to December 2008 as against target growth of 40%.
Table : Export-1
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Comparison of Export: at the end of each month cumulative of 2007 & 2008
07 07 07 07 07 07 07 07 07 07 07
0808
08 08
0808 08
0808
07
0808
080
20000
40000
60000
80000
100000
Mill
ion
Tk.
2007 4526 10149 15803 20665 25717 31031 36531 42017 47313 52828 59701 66690
2008 7730 14924 23372 31293 38339 46561 55582 63721 72477 78524 86,494 93,920
Growth in amount 3204 4775 7569 10628 12622 15530 19051 21704 25164 25696 26793 27230
Growth in % 71% 47% 48% 51% 49% 50% 52% 52% 53% 49% 45% 41%
Jan up to Feb
up to Mar
up to Apr
up to May
up to Jun
up to Jul
up to Aug
up to Sep
up to Oct
up to Nov
up to Dec
4.6.1 FOREIGN REMITTANCE
Foreign Remittance, mainly Wage Earners’ Remittance by Bangladeshi Expatriates plays
a vital role on overall economy of the country particularly on the Foreign Exchange
Reserve position. Foreign remittance also has its impact on the Balance of Trade and
Balance of Payment of the country.
Money coming in and going out in between countries may be regarded as Remittance.
Foreign Remittance: Remittances coming in and going out in between foreign countries
are called Foreign Remittance’’.
In other words ‘Remittance’ means sending/ transferring of fund through a Bank from one
place to another, which may be within the country or between two countries.
Types-of Remittance:
a) Inward Remittance
b) Outward Remittance
Both may be visible or invisible
4.6.2 Inward Remittance
Money or remittance coming in is called Inward Remittance
Various purposes of remittance
a) Family maintenance
b) Indenting commission
c) Donation
d) Gift
e) Foreign Investment
f) Export proceeds, etc.
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Mode of Remittancei. T.T. = Telegraphic Transferii. D.D = Demand Draftiii. M.T. = Mail Transferiv. T.C. = Travelers’ ChequeV. P.O. = Payment Order.vi. Cheques.vii. Notes and Coins.
4.6.3 Maintenance of Inward remittance registers (FBC/FCDP/TT)
On receipt of the remittance or any instrument, entry to be made in Inward remittance
register mentioning serial no, date, name of beneficiary, issuing Bank, Name of Drawee,
Amount etc.
Procedure for payment of Inward remittance
To make payment, the following points are to be observed:
For Demand Draft:
D.D. must be original.
Name of Bank, Name of branch, date, Name and A/c number of the payee/
beneficiary, amount in word and figure must be mentioned.
The D.D. must be as per prescribed format or specimen copy supplied
earlier (if any) by the correspondent.
The amount is perforated.
Payment is not stopped.
Draft is not reported lost
Verification of drawers signature
Confirmation (Telex) from the issuing Bank, if the amount exceeds the
limit as per agreement made earlier
Indemnity Bond to be taken for FCDP.
Telegraphic Transfer:
The Message must be in original.
It must be authenticated under test or SWIFT message with MAC trailer.
Credit confirmation to be taken from IBW, HO.
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T.T. must contain the name of bank, Name of branch, Name and A/c number of the
beneficiary. If the above point are in order payment may be made to the
beneficiary as soon as possible. In case of Express Remittance Scheme with Al-
Rajhi Banking and Investment Corporation, K.S.A., Local Office is to ensure the
payment within the following time frame as per Head Office, ID Circular No.6
dated 22.5.95.
i. Capital Area – 24 hours ii. Major cities –48 hours
iii. Other town –72 hours iv. Remote Areas-120 hours
4.6.4 Outward Remittance
Money or Remittance going out is called outward remittance. Outward remittance may be
made by TT, DD, MT, and TC etc. payment of import bills are also treated as outward
remittance Purpose of outward remittance
Travel/Tour/Visit.
Education.
Seminar/Workshop.
Fees
Family maintenance.
Remittance by Foreign shipping lines, Airlines, Courier services.
Dividend/gain of foreign company.
Hajj.
Salaries and savings by expatriates.
Import Payments.
Expenses of Offices opened abroad.
Remittance of Royalty and technical fees.
Operating expenses of Bangladesh shipping Corp. & Bangladesh
Biman.
Remittances against export claims.
Subscription to foreign media services.
Advertisement.
Bank charges. Etc
Travel
a) For Private Travel:
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Private Travel quota entitlement of Bangladesh is nationals Total USD.3000 per Calendar
year for visit to countries other than SAARC (i.e. India, Pakistan, Sri-Lanka, Nepal,
Bhutan, Maldives and Myanmar).Quota for SAARC countries and Myanmar is USD.1000
per calendar year for Travel by Air and USD. 500 for travel by land. At a time Bank can
issue full amount of above quota if required. Cash dollar may be issued maximum USD.
600 per passport per travel. (This quota may be changed by Bangladesh Bank)
The amounts of travel quota mentioned above are prescribed for adults only. The minors
(i.e. below 12 years) are eligible for 50% of the annual ceilings of adults. Bonafied
requirements beyond these limits may also be allowed with the permission of Bangladesh
Bank.
b) Business Travel: (For Importers & Manufacturers):
Subject to an annual upper limit of USD. 5000, Importers are entitled to business travel
quotas @ 1% of their imports settled during the previous financial year.
Subject to an annual upper limit of USD. 5000, non exporting producers are entitled to
business travel quotas @1% of their turnover of the proceeding financial year as
declared in their tax returns.
c) For Exporters:
New Exporter: New exporters are entitled to a quota for USD. 6000 against
recommendation letter from EPB annually.
Old exporter's can use FCAD EXP retention quota A/c as per their requirement.
d) For foreign nationals:
The ADs may issue foreign currency TCs to foreigners without any limit and foreign
currency notes up to USD 300 or equivalent per person against surrendered of
equivalent amounts in Foreign Currencies.
Education:
Foreign Exchange may be remitted for studies abroad by Bangladesh Nationals in all
regular courses (Subject to being consistent with the Education policy of the Bank Govt.)
in recognized institutions. Authorized dealer branches have to open file for individual
student.
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Quota for medical Treatment:
Foreign currency up to US$10000/- or equivalent may be released by the AD on the basis
of the recommendation of the medical Board set up by the Health Directorate and the cost
estimate of the foreign medical institution. Application for release of exchange exceeding
US$.10,000/- should be forwarded along with supporting documents to Bangladesh Bank
for Prior approval.
Releasing foreign exchange as Fees:
The ADs may release foreign exchange towards remittance of membership fees of foreign
professional and scientific institutions and fees for application, registration, admission,
examination (TOEFL, SAT etc.) in connection with admission into foreign educational
institutions on the basis of written application supported by demand notice / letter from the
concerned foreign institution showing the amount to be remitted.
Family maintenance Quota:
Outward remittance may be made by Bangladesh Nationals-to family members /
dependent parents, spouses and children living abroad with the permission from
Bangladesh Bank. A certificate issued by relevant Bangladesh embassy regarding the
beneficiary, extent of Income abroad along with the embassies recommendation as
required for this purposes.
Foreign nationals who are resident in Bangladesh and who have income in Bangladesh are
permitted to make monthly remittances to the country of their domicile out of their current
savings up to 50% of their income to cover their commitments abroad.
Foreign shipping lines / Air lines/Courier services Company:
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These companies may remit their income after adjustment of the amount spent for local
disbursement and tax payable. Details as per Guidelines for Foreign Exchange
Transactions.
Dividend/ gain of Foreign companies / Share holders:
Dividend / profits / gains may be remitted abroad to the owner / share holders without
prior approval of Bangladesh Bank. Details as per Guidelines for Foreign Exchange
Transactions.
Hajj:
The Government of Bangladesh announces each year the scale/limit at which foreign
exchange may be issued to intending pilgrims for performing Hajj. Release of foreign
exchange for this purpose should be made as per instructions to be issued for this purpose
by Bangladesh Bank each year.
Remittance of salaries and savings by the expatriates:
Expatriates working in Bangladesh with the approval of the Government may remit
through an Authorized Dealer (AD) 50% of salary and 100% of leave salary as actual
savings and admissible pension benefits. No prior Bangladesh Bank approval is necessary
for such remittances.
Expenses of Offices opened abroad
Remittance of up to US$. 30,000/- or equivalent may be made annually to meet current
expenses of such offices opened abroad by a Commercial or industrial concern. Such
remittance may only be made in the names of concerned offices / Subsidiary companies
abroad.
Remittance of royalty and technical fees:
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No prior permission of the Bangladesh Bank or BOI is required by the enterprises for
entering into agreement involving remittance of royalty, the technical know how or
technical assistance fees. Operational services fees, marketing commission etc. if the total
fees and other expenses connected with technology transfer do not exceed the following
limits:
For new projects, not exceeding 6% of the cost of Imported Machineries.
For ongoing concerns not exceeding 6% of the previous years sales as declared in
the income tax return
Operating expenses of Bangladesh shipping corporation and Bangladesh Biman are
allowed to make remittances to meet bonafide disbursements in foreign ports / foreign
stations without approval of Bangladesh Bank. Details as per Guidelines for Foreign
Exchange Transactions.
Remittance against export claims:
The ADs may remit export claims not exceeding 10% of the repatriated export proceeds
on the following accounts:
Short weight claim;
Quality Claim;
Part Shipment.
Details as per Guidelines for Foreign Exchange Transactions
Subscription to foreign media services:
On applications from the local newspapers. ADs may remit foreign exchange towards cost
of subscription of news items features articles of foreign news agencies. Remittance
should be made on the basis of (i) contracts entered into between the applicant and the
foreign news agency and (ii) NOC of the Ministry of information.
ADs may remit abroad costs / fees on account of their own subscription of foreign media
services such as Router monitor service without prior Bangladesh Bank’s approval.
Advertisement of Bangladeshi products in mass media abroad:
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ADs may without prior Bangladesh Bank approval effect remittance towards cost of
advertisement of Bangladeshi products in mass media abroad. Remittance applications
from the companies / firms in Bangladesh should be supported by the invoice from the
foreign mass media concerned, and the applicant will have to submit copy of the
advertisement within one month of its issuance. The AD shall preserve the invoice;
application and advertisement copy for post facto checking by inspection officials of
Bangladesh Bank.
Bank Charges and Sundries
The ADs may affect remittances towards settlement of dues to foreign banks of bank
charges. Cost of cables & others incidental charges arising in their normal course of the
business without prior Bangladesh Bank approval. All such remittances should be reported
to the Bangladesh Bank on Forms TM along with appropriate return.
Taking out / bringing in of Bangladesh TAKA
Incoming / outgoing passengers may bring in / take out up to Taka 500 per person in
Bangladesh currency.
In all above cases for outward remittance T.M. form to be obtained and to be reported to
Bangladesh Bank on monthly basis.
N.B. The quotas / ceiling for our ward remittances are subject to change/revision for
which latest circulars amendments must be followed.
Sharing of FTT, FDD and Spot Cash in our foreign remittance business:
Spot cash product has revealed revolutionary potentials in foreign remittance business. So,
huge number of remittance shifted from Demand Draft arrangement to Electronic Fund
Transfer (EFT) arrangement. Out of EFT, Spot Cash facility gave a new dimensions to
remittance services. People can receive money without having any account in the branch.
More over possibility of fraudulent payment of Demand Draft has been minimized owing
to introduction of spot cash. Thus the branches have been being gradually relieved of the
risk of fraudulent payment of FDD as it reduced. But liquidity position of the branch
requires to be increased to render better spot cash services.
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4.6.5 A Comparative Analysis of Foreign Remittances of IBBLAnalyzing the scenario of 2008 in which the remittance business was conducted, we find
the followings:
Good growth:Remittance increased in 2008 on an average more than 80% upo September compared to
corresponding period 2007. The figures may be seen from Table: Remittance. Reason for
increasing remittance is expansion of network by establishment of remittance arrangement
with Global Web-based Remittance Institutions, Banks and Exchange Houses in U.S.A,
Malaysia, Singapore, K.S.A, Oman, Bahrain, UAE, Kuwait etc and Development of
Service, Development of Automation including on line facility.
Table: Remittance
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Comparison of Remittance: at the end of each month cumulative of 2007 & 2008
07 07 07 07 07 07 07 07 07 0707
0808
08 08
08 08
08 08
0808
08
07 08
0
50000
100000
150000
Mill
ion
Tk.
2007 5120 10691 16637 23139 29720 36512 43743 50350 58305 66079 74845 84143
2008 10437 20154 32215 43520 54227 66333 79204 91565 104799 115609 128652 140420
Growth in amount 5317 9463 15578 20381 24507 29821 35461 41215 46494 49530 53807 56277
Growth in % 104% 89% 94% 88% 82% 82% 81% 82% 80% 75% 72% 67%
Janup to Feb
up to Mar
up to Apr
up to May
up to Jun
up to Jul
up to Aug
up to Sep
up to Oct
up to Nov
up to Dec
CCHAPTERHAPTER- F- FIVEIVE
CONCLUSION AND RECOMMENDATIONS
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Islami Bank Bangladesh Limited
5.1 Recommendation:
To ensure better customer services coping with the growth of overall business of
the Branch additional space may kindly be allocated immediately for the branch.
Business Discretionary power may be revised.
Expenditure ceiling may be revised considering the grade of the Branch.
Evening banking allowance may be increased.
Automation of Foreign Exchange portfolio.
Revision of Foreign Exchange related charges.
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Arrangement of monthly /quarterly training courses /workshops for the clients
selected by the Branches in order to promote Investment clients of the desired
level.
Effective human resources should be placed at every department of IBBL for more
speedy and smooth banking operation. Women employee should be increase more
in order to deal women entrepreneurs for create demand for investment.
The Bank should disburse total invested money at once to the clients to achieve
full benefits of invested money.
To create syndicate banking system for foreign exchange business
Decision making process should be free of ambiguity and be time conscious
Ensure reasonable spread and return on assets.
Build good value for sponsors and shareholders.
Formulation of Recruitment / remuneration policy should be outstanding.
Eventually, it should be mentioned that IBBL is still very successful and
competitive in their customer service, banking operation, management process,
record keeping and overall activities of banking.
The Bank should go aggressive advertising and promotional activities to get a
broad geographic coverage.
To fulfill the vision of "mass banking" this Bank should grants investment
portfolio to new entrepreneurs /new businessmen new companies etc.
To remove image problem, IBBL should take various advertisement programs.
Literature on Islamic capital market may be preserved at IBTRA library.
Inclusion of more subjects based on the Quran and Sunnah in the Training courses
of the Islami Bank Training & Research Academy in order to develop human
resources having morally.
IBBL should initiates different investment modes according to changing /diverse
needs of clients by conducting huge Research and study.
IBBL should introduce update technology to render competitive banking service,
launching ATM, SWIFT and on line banking system in all of its branches.
5.2 Conclusion
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IBBL is trying to develop banking sector through welfare and servicing to the people.
Islami economy and banking are bound together. IBBL has emerged facing the many
obstacles yet. This bank is trying to operate their activities according to Islam.
Most of the people in our country have a bad impression about IBBL’s operations
regarding indirect generation of interest, which means no difference between investments
of IBBL loan/credit/advance of conventional banks for this reason. They are not much
interested to investment with IBBL because majority of our people have no proper
knowledge about the activities of Islami banking as well as its investment mechanisms.
IBBL through its steady progress and continuous success has, by how, earned the
reputation of being one of the leading private sector banks of the country. The bank has
shown steady progress in this important sector. IBBL’s capital adequacy, deposits,
reserves, earning per share, export, import and remittances are increasing day by day. So,
no doubt IBBL is a growing profitable financial institution.
Interest free banking system is no more a concept. It is now a Reality, a dynamic system,
embodying a set of superior banking mechanism. More than 300 Islamic bank and
financial institutions are operating in different Countries throughout the world with a
marked success from this inception in our country in 1983. IBBL has been operating with
real and confidence in corporation with other conventional banks. Bringing a new concept
in such business sector, which is growing too rapidly in the world, is rally bold step. As a
large Islamic commercial bank, Islamic bank took various steps to create employment and
socio-economic development for the poor through Islamic shariah as well as to create an
overall climate for the introduction of large scale Islamic banking environment in
Bangladesh.
The significant growing of IBBL has encouraged the traditional banks to open Islamic
banking window, like –HSBC, Dhaka Bank Ltd., Prime Bank Ltd., The city Bank Ltd.
Though IBBL has reached the top position among the PCBs in our country, it has to more
concentrate its customers’ service to survive in the long run by facing the competitors’
strong strategies in banking era.
In my study I have found that IBBL has reached this position by its commitment, people’s
love and dedicated human resources. Islami Bank has been shown its superiority in all
kinds of banking operations in our country.
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The competent management of IBBL should come forward to take pragmatic strategic
decision like –easy procurement, one stop service, and time savings customers’ service
with sufficient logistics supports for the future betterment of the Bank.
To conclude we must say that, Islami bank Bangladesh Limited (IBBL) has immense
potential in Bangladesh. It can play vital role in bringing revolutionary changes in our life
with both material and moral world and in individual and collective level.
BIBLIOGRAPHY
Books:
Khan Jb.Md.Omar Faruk (2003) “Foreign Exchange Mechanism-Import”, 9th Edition,
published by Ministry of Commerce.
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Khan Jb.Md.Omar Faruk (2003) “Foreign Exchange Mechanism-Export”, 9th Edition,
published by Ministry of Commerce.
Hasan M Kabir (2003) “Text Book on Islamic Banking”, Islami Economics Research
Bureau, Dhaka.
Khondoker Md. Abdul Mazid “An overview on Foreign Exchange Operations of IBBL”,
Islami Economics Research Bureau, Dhaka.
Internet:
http://www. Islami Bank Bangladesh Ltd.com.bd,accessed on 17/01/2010 to 26/04/2010
(Time: Whenever data are needed).
http://www. Islami Bank Bangladesh Ltd.bd, vision & mission .asp .accessed 17/01/2010
to 26/04/2010 (Time: Whenever data are needed).
http://www.Foregin exchange operation.bd.Com on 17/01/2010 to 26/04/2010 (Time:
Whenever data are needed)
http://www.IBTR.bd.com on 17/01/2010 to 26/04/2010(Time: Whenever data are needed).
http://www.Islami Bank Bangladesh Ltdbank.pic.com on 17/01/2010 to 26/04/2010
(Time: Whenever data are needed).
Annual Reports/Prospectus:
“Annual Report 2008, Islami Bank Bangladesh Ltd” published by Islami Bank Bangladesh
limited, 2008.
“Annual Report 2007, Islami Bank Bangladesh Ltd” published by Islami Bank Bangladesh
limited, 2007.
“Islami Bank 25 years of Progress” published by Islami Bank Bangladesh limited
Prospectus of Islami Bank Bangladesh limited.
Printing & Brochures of Islami Bank Bangladesh limited.
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