Loans and Foreign Exchange Activities of The City Bank Ltd.

Internship Report Presentation

Organizational Part
CBL is the 1st private sector bank in Bangladesh which was established at March 27, 1983. It has a corporate vision to be the leading bank in the country with the best practices and the highest social commitment. It has 83 branches countrywide from which 22 Authorized Dealer branches and 1800+ employees. By July 2007, it has the authorized capital of Tk 175 crore and paid up capital of Tk. 72 crore. In last 10 months CBL has earned a profit of Tk 113 crore with a target for tk 180 crore for the year 2006 being ranked at 2 among the private sector 48 banks. 41% of deposits are from FDR and 37% loans and advances are given to as WC loan. It has a board of 13 members. Mr. Aziz-Al-Kaiser is the Chairman and Md. Shoeb is the Managing Director (Acting). There are different committees in the CBL to perform its activities as Executive Committee, Management Committee, Credit Committee, Asset/Liability management committee etc. CBL is planning to open 5 new branches soon this year.

Organizational Structure
CEO

Head-Marketing

Head- Corporate

Head -GB

RM

Branch

Learning part Loan Activities of The City Bank Ltd.

Types of Loans and Advances in CBL
Continuous Loan Demand Loan Term Loan Agricultural & micro credit

Continuous Loan
Overdrafts SOD against Financial Obligations (FO) SOD against Work Order (WO) Cash Credit Cash Credit (Pledge) Cash Credit (Hypothecation)

Demand Loan
LTR (Loan against Trust Receipt) LIM (Loan against Imported Merchandise) PCC (Packing Cash Credit) ECC (Export Cash Credit) Cash Incentive EDF (Export Development Fund)

Term Loan
Short Term Industrial Loan, Mid Term Industrial Loan, and Long Term Industrial Loan Transport Loan House Building Loan (Commercial) Loan against Fixed Deposit Receipt/ Eligible Financial Instrument

Foreign Exchange Activities

equirements for doing export import business: Import registration certificate. Export registration certificate. An account with a bank. Tax identification number certificate. VAT Membership certificate from the chamber of commerce. Business association and other required documents.

Issuance of L/C
t the time of issuing documentary credit following precaution should be taken. The client should have following characteristics: A/C holder of the bank Good transaction Integrity Credit worthiness. ocal Rules: Guidelines for Foreign Exchange Transaction regulation on import (Guideline Chapter xv) of Bangladesh Bank. The Import/ Export Act 1950 Import policy order for the year Customer duty, VAT, SRO Tariff ate of exchange and its application

Operations of a Documentary Credit

Step- 1 Customers written request of issuance of letter of credit. Step-2 Submission of necessary papers & documents along with standard and approved L/C application form duly signatory. tep-3 crutiny of papers 7 documents submitter by the importer following documents be submitted: Indent/ Performa invoice Insurance cover note with money receipt Tax identification number (TIN) certificate

Operations of a Documentary Credit

Step-4 Preparation of L/C proposal. Proposal to be placed to the competent authority for approval. Step-5 Approval of L/C proposal by the competent authority and terms & conditions there to. Step-6 Allotment of L/C number. Step-7 Realization of margin and commission as per approval & schedule of charges.

Operations of a Documentary Credit

tep -8 Transmission of L/C. Before transmission following things to be checked: Whether the item applied for import is duly coded. Price and demand of the importable item in the wholesale market. Whether the queried price is competitive. Confidential report/ opinion about the importer. Germaneness of IRC. Full descriptions of goods, quantity, unit price, total value inco-terms, derailed terms & conditions to be checked. Validity date of proforma Invoice/ indent to be checked. Indenters registration number, genuineness of indenter.

Operations of a Documentary Credit

Step-9 Advising of L/C. Step -10 Confirming of L/C. Step -11 Amendment of L/C.

Conclusion
Commercial Banks play a vital role in the overall economic development as well socioeconomic development of any country. It also has a great impact on the economic system of any country. It helps to make a strong relationship among the different units of the economic system. As a first private sector Bank in our country, The City Bank Ltd. Plays a vital role in our national economy, including employment generation, industrial development, development in foreign exchange business, capital formation, implementation of monetary policy etc. In this report I tried my level best to focus all the functional are of CBL. The areas are deposit collection, loans and advances and foreign exchange business.

Thank you

Presented by

Ashis Banik 041 11 347 BBA Daffodil International University