Internship Report

on
Foreign Exchange Operation of Janata Bank
Limited

Supervisor
Mahjabeen Ferdous
Assistant Professor
Department of Business Administration
Stamford University Bangladesh

Submitted By
Khadija Akter
ID No: BBA 05416929
Batch: BBA054(H)
Major: Finance& Banking
Stamford University Bangladesh

Stamford University Bangladesh

Date of Submission: 14th January, 2018

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 Letter of Transmittal

Date: 14th January, 2018

To
Mahjabeen Ferdous
Assistant Professor
Department of Business Administration
Stamford University Bangladesh

Subject: Submission of Internship report.

Dear Madam,
I am proud to be a student of BBA of Stamford University Bangladesh. I have completed
the internship report Foreign Exchange Operation of Janata Bank Limited that has
been prepared as an integral part of my degree requirement. I have tried my best to follow
the instructions in preparing this report and submitted it to you for further action.

I hope you would find this report up to your expectation. I would be grateful to receive
your suggestions and comments regarding this.

It will be my pleasure to clarify any matter regarding this report. I thank to you for
allowing me the opportunity to undertake the task and for your sincere guidance and
cooperation.

Sincerely Yours,

Khadija Akter
ID No: BBA 05416929
Batch: BBA054(H)
Major: Finance & Banking
Stamford University Bangladesh

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 Student’s Declaration

I here announce that the extensive study entitle

Foreign Exchange Operation

of
Janata Bank Limited
Conducted on behalf of Mahjabeen Ferdous, Assistant Professor
Presented in Partial accomplishment of the Requirement for the award of the degree
Bachelor of Business Administration
From

STAMFORD UNIVERSITY BANGLADESH

Is my original work and not put forward for

the award of any other degree/Diploma/ fellowship
or other similar or honor

Khadija Akter
ID No: BBA 05416929

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 STAMFORD UNIVERSITY BANGLADESH

“Certificate of supervisor”

To Whom It May Concern

This is to certify that the internship report on “Foreign Exchange Operation of Janata
Bank Limited” for the degree of Bachelor of Business Administration (BBA) major in
Finance & Banking from Stamford University Bangladesh carried out by Khadija Akter,
ID No: BBA 05416929under my supervision. No part of the report has been submitted for
any degree diploma, title, or recognition before.

Mahjabeen Ferdous
Assistant Professor
Department of Business Administration
Stamford University Bangladesh

iv
 Acknowledgement

First of all I express my gratitude and praiseworthy to all mighty Allah for giving me
every assistance in the way of my life. It is an honor for me to express my gratitude to the
Stamford University Bangladesh for providing me all the facilities in every possible way
to prepare this thesis paper. The successful completion of this thesis might never be
possible in time without the help of some persons whose inspiration and suggestion made
it happen.
At the very outset, I would like to take the opportunity to express my heartiest gratitude to
my supervisor Mahjabeen Ferdous, Assistant Professor, Department of Business
Administration, Stamford University Bangladesh, My special thanks to Md. Solaiman
(Manager), Md. Motaharul Islam (Assistant Manager), Kazi Belal Hossain (Senior
officer), Md. Mahbubul Alam (Senior officer) Janata Bank Ltd, Fakirapool Branch,
Dhaka Without their guidance and support it would be very difficult for the successful
completion of my report.

I would like to take the opportunity to express my wholehearted gratitude to my fellow

friends, near and dear ones who offered encouragement, information, inspiration and
assistance during the course of constructing this report.

Finally, I would like to express my profound gratitude to my family members who have
given me the opportunity to accomplish the BBA program and making this report in turn.
However, the responsibility of errors and omissions in this report, if any, lies in my
account.

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 Executive Summery

Main objective of this report is to analyze the performance of foreign exchange operation
of Janata Bank Ltd. This is descriptive in nature that has been administrated by collecting
secondary data. Source of data were collected from annual report of JBL and reading
material published by JBL etc. For analyzing data M.S Office and M.S Excel software
were used. This report has been shown that trend of export import and remittance
increases year by year but in 2013 and 2016 the growth rate of export and import got
lowest due to world recession and inflationary pressure respectively. Remittance flows are
greatly affected in 2014. Operating profit has strong positive relation with export and
import with significant level lower than .05remittance also has strong positive relation but
significant level higher than .05. In total national market share of export, important
remittance, JBL contribute with the proportion at 14%, 8% and 7% for export, import and
remittance respectively. Huge amount of remittance come from UAE where most of
Bangladeshi expatriate lives and almost 4 overseas branches are situated.
Although export, import, remittance increase gradually and their relationship with
profitability has strong positive relation JBL should concern that their export, import and
remittance will not be fall down that’s why they can develop attractive financing
packages such as Pre-Shipment and Post- Shipment Finance, Export Guarantee facility
etc at a law rate for exporters and importers, JBL should increase strong network with the
Overseas Exchange Companies and Banks in different parts of the world to ensure better
remittance services for its customers and online Banking in every branch to promote
Remittance, In case of L/C opening, Bank should provide low margin facility to clients.
More Import and export item can be included JBL can provide Consulting facility by an
expert group of officials for foreign exchange, In case of payment of remittance, they
should introduce debit card so that customer can withdraw money within a second at
anywhere.

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 TABLE OF CONTENTS
Chapters & Contents Page No
Letter of Transmittal ii
Student’s declaration iii
Supervisor’s certificate iv
Acknowledgment v
Executive Summery vi-vii
Chapter:1 – Introduction 01-04
1.1 Background of the Study 02
1.2 Rationale of the Study 02
1.3 Objectives of the Report 03
1.3.1 General Objectives 03
1.3.2 Specific Objectives 03
1.4 Scope of the Report 03
1.5 Methodology of the Study 03-04
1.6 Limitations of the Study 04
Chapter:2 – Background of the Janata Bank Ltd. 05-16
2.1 An Overview of Janata Bank 06
2.2 Mission, Vision, Strategy Statement of Janata Bank: 06-07
2.3 Ownership Structure of Janata Bank Ltd. 07
3.4 Composition of the Board of Janata Bank 07
2.5 Capital and Reserves of Janata Bank 08
2.6 Milestones in the Development of Janata Bank 08
2.7 Management Structure of Janata Bank Ltd. 09
2.8 Risk Management of Janata Bank: 10
2.9 HRD of Janata Bank 11
2.10 District-wise Branch Distribution: 11
2.11 Balance sheet 12-13
2.12 Profit and Loss Account 14-15
2.13 Cash flow Statement 16

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 Chapter 3-Foreign Exchange 17-22
3.1 Foreign exchange 18
3.2 Foreign exchange market and Bangladesh 18-19
3.3 Foreign Exchange Products in Bangladesh 19
3.4 Different Foreign Exchange Rate in Bangladesh 19-20
3.5 History of Exchange Rate System in Bangladesh 20-21
3.6 Interbank Transaction in Foreign Exchange in Bangladesh 21
3.7 Change in Exchange Rate in Bangladesh: 22
3.8 Category Wise Position of Interbank FX Transaction 22
Chapter -4Foreign Exchange Department Of Janata Bank Limited 23-32
4.1 Foreign Exchange 24
4.2 Foreign Exchange Department: 24
4.3 IMPORT SECTION 24
4.3.1 Registration of importer 25
4.3.2 Import procedure: 25
4.3.3 Import Policy Order: 25-26
4.3.4 Steps in an Import Letter of Credit Transaction 26-32
Chapter -5 Export section 33-38
5.1 EXPORT SECTION 34
5.1.1 Export L/C 34
5.1.2Obtaining Export Registration Certificate (ERC): 34
5.1.3 Securing Export Order 35
5.1.4 Obtaining EXP Form: 35
5.1.5 Signing of the contract 35
5.1.6 Receiving Letter of Credit 35
5.1.7 Procuring the materials: 35
5.1.8 Endorsement on EXP: 35
5.1.9 Disposal of Export procedure 35
5.1.10 Shipment of goods: 36
5.1.11 Presentation of export documents for negotiation: 36
5.1.12 Examination of Document: 36-37
5.1.13 Negotiation of export documents: 37
5.1.14 Settlement of Local Bills: 37
5.1.15 Modes of Payment 37-38

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 Chapter 6- Remittance Section 39-35
6.1 REMITTANCE SECTION 40
6.1.1 Instruments of Foreign Remittance 40
6.1.2 Inward Remittance: 41
6.1.3 Mode of Inward Remittance of JBL 41
6.1.4 Outward Remittance 41
6.1.5 Mode of Outward Remittance 42
6.1.6 Remittance Chain 42
6.1.6.1 Step-1 (Remittance Sending Process) 42
6.1.2.2 Step-2 (Remittance Receiving Process) 42-43
6.1.7 Remittance Product/Service of JBL 43-45
Chapter -7 Analysis Part 46-58
7.1 Trend analysis 47
7.1.1 Import Finance: 47
7.1.2 Export Financing 48
7.1.3 Foreign Remittance 49
7.2 Income from Foreign Trade 50
7.2.1. Import Earning and Portion of Import earnings on Total Foreign Trade 50
7.2.2. Export Earning & Portion of Export Income on Total Foreign Trade 51
Earnings:
7.2.3 Remittance Earnings and Portion ofRemittance on Total Gain of Foreign 52
7.2.4. Comparison of Import, Export and Remittance Earnings: 53
7.3 Ratio Analysis 54
7.3.1. Return on Import 54
7.3.2 Return on Export 55
7.3.3 Return on Inward Foreign Remittance 56
7.7 SWOT Analysis Foreign Exchange Department of Janata Bank Ltd. 57-58
Chapter:8– Findings 59-60
8.1 Findings 60
Chapter:9- Recommendations and Conclusion 61-65
9.1 Recommendations 62
9.2 Conclusion 63
References 64
Abbreviations 65

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 List of Figures

Name of Figures Page no.

Figure: 2.1 Management Structure of Janata Bank Ltd. 09
Figure: 4.1 Types of L/C form 29
Figure: 5.1 Export L/C process 34
Figure: 6.1Types of Remittance of JBL 40
Figure 7.1: Total Imports Financing of JBL 47
Figure 7.2: Imports Financing Growth Rate of JBL 47
Figure 7.3: Total Exports Financing of JBL 48
Figure 7.4 Exports Financing Growth Rate of JBL 48
Figure 7.5 Foreign Remittance Performance of JBL 49
Figure: 7.6 Foreign Remittance Business Growth Rate 49
Figure 7.7: Earning from Import of JBL 50
Figure 7.8: Earning from Export of JBL 50
Figure 7.9: Remittance on Foreign Trade 52
Figure: 7.10 earning percentage of Import, Export, Remittance 53
Figure 7.11 Import return of JBL. 54
Figure 7.12: Export return of JBL. 55
Figure 7.13: Foreign remittance return of JBL. 56

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 List of Tables

Name of Tables Page no.

Table 2.1: Composition of the Board of Janata Bank 07
Table 2.2: Capital and Reserves of Janata Bank 07
Table 3.1: Interbank Foreign Exchange Rates 22
Table 7.1: Import Finance 47
Table 7.2: Total Export Financing of JBL 48
Table 7.3: Import Earning & Portion of Import Income on Total Foreign 50
Trade
Table: 7.4 Export Earning & Portion of Export Income on Total Foreign 51
Income
Table: 7.5 Remittance earnings & Portion of it on Foreign Trade 52
Table: 7.6 comparisons of Import, Export, Remittance earnings 53
Table 7.7: Import and Net Income of JBL 54
Table 7.8 Import return of JBL. 55
Table 7.9: Export & Net income of JBL. 55
Table 7.10: Export and Net Income of JBL. 56
Table 7.11 Foreign remittance & Net income of JBL. 56

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