2015

InternshipReport
AStudyonGeneralBankinga
ndForeignExchangeDivision
ofSouthEastBankLimited.
ConductedonBehalfofS

outheastBankLtd.

GulshanBranch,Dhaka-1212

Ananna Protity
BRAC UNIVERSITY
8/26/2015
 Page |1

INTERNSHIPREPORT

ON

GENARAL BANKINGANDFOREIGNEXCHANGE

DIVISIONOFSOUTH EASTBANKLIMITED

SubmittedTo:

Suntu Kumar Ghosh

Assistant ProfessorBRAC Business School

BRAC University

SubmittedBy:
ANANNAPROTITYID
:11304075
BRACBUSINESSSC
HOOL

Bachelor ofBusinessAdministrationBRAC

University

Date ofSubmission

26 AUGEST 2015
 LetterofTransmittal
August 26,
2015Suntu
KumarGhosh
Asst.
Professor&SupervisorBRAC
BusinessSchoolBRAC
University

Subject:SubmissionofInternshipReport

Dear Sir,

WithagreatpleasureIheresubmitthereportontheGeneralBankingandForeignExchangeDivisio
nofSoutheastBankLimited.whichhasbeendoneasthemainpartoftherequirementofthe
course.Iexpressmyprofoundgratitude tomysupervisorSuntu KumarGhosh, Asst.
Professor,BRACBusiness School for providinghis
importantinstructions,propersuggestionsandcorrections forimprovement.

Whiledoingmyinternship,Ihavethe opportunityto meet allemployees inthe

GulshanBranch(SoutheastBank).Almosteach of thepeopleIcame acrosshadbeenveryhelpful.

However, shouldyou need anyclarificationIwill beobligated to providewith furtherexplanation.

Thankyou.

Yourssincerely,ANA

NNA PROTITYI.D:-

11304075

BRACBusinessSchool
Declaration

IsoberlydeclarethattheworkinthisinternshipreporttitleAStudyonGeneralBankingandForeignE
xchange Division ofSouth East BankLimited"is an originalwork
donebyme(ANANNAPROTITY)under thesupervision ofSuntu KumarGhosh, Assistant
Professor,BRACBusinessSchool,BRACUniversity.

Hereno part ofthis report has been previouslysubmitted to anyotheruniversity/college /institution/

organizationfor anyacademiccertificate / degree / diploma.

This workIhave donedoes notrupture anyexistingcopyright and no portion ofthis report

iscopiedfrom anywork done earlierfor anydegree.

Ifurtheraccept to indemnitythe departmentagainst anyloss or damage arisingfrom breach ofthe

forgingobligation if any.

ANANNAPROTIT
YI.D:11304075
BRACBusinessSc
hoolBRACUnivers
ity
 Acknowledgement

For makingastudyreport, a sinceresupervision, and guidance ofexpert and

experiencedprofessionals arerequired.Ihavereceived sincere co-operation,valuable
suggestions,inspirations,andreferencesfrommyrespected Teachersand the Executives of
SoutheastBankLtd.

First of all,Iexpressmyprofoundgratitude to mysupervisorSuntu Kumar Ghosh,

AssistantProfessor,BRACBusiness School for providinghis
importantinstructions,propersuggestionsandcorrections forimprovement.

Iliketo expressmythanks anddeepestgratitude to SoutheastBankLtd.Staff of GulshanBranchfor

givingme the opportunity, appointment forthe internshipprogramthatIhave completed.

It is mypleasure to extend myheartiestgratitudeto Mr. MdHamidul Haque,Vice

President&Manager(Operations),Mr. Abdur Rashid, Assistant VicePresident&Incharge-
GeneralBanking, Mr. Muhammad MunirulIslam, Assistant VicePresident&InCharge-
ForeignTrade,of Southeast bankLimited,GulshanBranchwho, inaddition to their wholehearted
support, haveallowed me to carryout thestudyinparallel withmyregularworkload.Iwould also like
to takethe opportunitytogivemyheartfelt thanks to Mr. Salah
uddinAhmed,SeniorprincipalOfficer,SoutheastBankLimited,GulshanBranch forhis endless
support andalso providingme withallthe materialsthatwasrequired forpreparingmyreport.Iwill
neverforget their kind and friendlybehaviour.

Last ofall,mydeepestgratitudegoes to AlmightyAllah forgivingme courage andabilitytocomplete

this task.
PREFACE

Internship is the integralandbasicrequirement ofall the business studyprograms. Becauseit isthe

practicalimplication ofthe theoreticalknowledgewhich wehavetaught in our businessSubjects to
gain further knowledge andexperienceaboutprofessional business activities.ItEquips us with the
necessaryknowledge, skills and values of business culture which arebasicRequirement ofthe
business professional andwhichalso helps newgraduates to performProfessionallyastheyget first
step in theirpracticalprofessionallife.For this
reasonIwasplacedatSoutheastBankLimited,GulshanBranch,Dhaka 1212 WhereIhavedonemy12
weeksinternship.Duringmyinternship tenureIhavegained alot of Knowledge about
BankingOperations under thesupervision andguidance of myInternship Supervisors.
DuringmywholedurationIwas rotated inthe differentsection ofthe branchandwas
thoroughlybriefedabout theprocedures of different bankingoperationsbytheconcerned staff.
Myinternship reportcontainsall the knowledge whichIhavelearnt there.
 ExecutiveSummary

SoutheastBankLimited is a private bank providingfinancial services to

thecustomers.SEBLisaleadingprivatecommercialBankwhichstarts itoperation on under
Companies Act, 1994 onMarch 12,1995. Through its countrywide 115branch network, it is
providingacomprehensiveandcompetitive banking service to its clients .With the startingthe
operation of SEBL, the mainbranchcontinue its operation .Through its
threecoredepartments,namelyGeneralBanking,AdvancesandForeignExchange, its provides
allkinds of bankingserviceto its customers.TheSoutheastBankLimited is
growingveryimpressivelyand makingprofits which growinghigherdaybydayandalso makingthe
wishes of peoplecome true through the philosophyoftransferring concepts to
reality.Banksproduct portfolio includes such typeof innovativeproducts accordingto
theneedsandpreferences ofthe customerswhich are providingbenefits
tocustomersaswellasaddingprofits tothe bank. SEBLhas product-basket encompassesRealTime
Online AnyBranchBanking,IslamicBanking,MerchantBanking, Dual
CurrencyVisaCreditCard,VisaTravelCard,ATMs,EducationLoan Scheme,
DoubleBenefitScheme,ConsumerLoan,Millionaire Deposit Scheme, SME Banking,
CorporateBanking,SyndicateLoan, MonthlySavingsScheme, Monthly IncomeScheme, Pension
SavingScheme,WageEarnerPension Scheme,SMS Bankingetc. in addition to SEBLhas
traditional creditandforeigntrade related products and services.

Throughoutmyoverall studyIhavemainlytriedto criticallyreviewthe

GeneralBankingandForeignExchangeActivities of southeastBankLtd.GulshanBranch.The1st
chaptercontainsthe Background,objectives,Rational; limitations etc. ofthe
study&2ndchapterdescribedOrganizationalprofile ofSoutheastBank. On theotherhand the
th th th
3rdchapterdeals with Majorresponsibilityof thejob,the 4 ,5 and6 chapterdeals withmajor part
th th
ofthe report, 7 chaptercontains SWOT analysis.The8 chapter discussed with the findingspart of
th th
thereport. The9 chapterdeals with recommendationsandatlast10 chapterdiscussed with
conclusion.

Last but not theleast, this reportincludesdifferentaspect about SoutheastBankLimitedwhich

isveryhelpful for everyreader.
 TABLEOFCONTENT
CHAPTER ONE

INTERODUCTION

1.1 Foundation ofthe study-------------------------------------------------------------------------- 9

1.2 Objective of thestudy---------------------------------------------------------------------------- 9
1.3 Research methodology---------------------------------------------------------------------------10
1.4 Limitations of thestudy-------------------------------------------------------------------------- 11

CHAPTER TWO

2.1 Companyprofile---------------------------------------------------------------------------------- 12
2.2 Vision ofSEBL----------------------------------------------------------------------------------- 12
2.3 Mission ofSEBL---------------------------------------------------------------------------------- 12
2.4 Core values ofSEBL----------------------------------------------------------------------------- 13
2.5 Core strengths of SEBL--------------------------------------------------------------------------13
2.6 Core competencies ofSEBL-------------------------------------------------------------------- 13
2.7 Organogram-------------------------------------------------------------------------------------------- 14
2.8 Corporate profile----------------------------------------------------------------------------------15
2.9 Fiveyears ofperformanceat aglance-------------------------------------------------------------16
2.10----------------------------------------------------------------------------------------------------SEBLser
vices----------------------------------------------------------------------------------------------- 16
2.11-----------------------------------------------------------------------------------------------------Manage
ment ofSEBL------------------------------------------------------------------------------------- 18

CHAPTER THREE

3.1 Majorresponsibility-------------------------------------------------------------------------------19
3.1.1 Account openingdepartment------------------------------------------------------------- 19
3.1.2 ForeignExchange department------------------------------------------------------------20

CHAPTERFOUR

4.1 Functions GBdepartments------------------------------------------------------------------------22

4.2 Frontdesk/Account openingsection--------------------------------------------------------------22
4.3 ClearingSection------------------------------------------------------------------------------------ 26
4.4 Accounts Department------------------------------------------------------------------------------ 28
4.5 CashSection----------------------------------------------------------------------------------------- 28

CHPATERFIVE

5.1ForeignExchange------------------------------------------------------------------------------------ 29
5.2Functions of ForeignExchange department----------------------------------------------------- 29
5.3Localregulationsof ForeignExchange------------------------------------------------------------30
5.4Internationalregulations of Foreign Exchange---------------------------------------------------31
5.5Letter of Credit(L/C)--------------------------------------------------------------------------------32
5.6----------------------------------------------------------------------------------------------------------Typeo
fletterof credit----------------------------------------------------------------------------------------33
5.7Parties ofletterofcredit-------------------------------------------------------------------------------34
5.8ImportantdocumentusedinL/C----------------------------------------------------------------------35
5.9Transmission ofL/C---------------------------------------------------------------------------------36
5.10------------------------------------------------------------------------------------------------------Risks
involved in ForeignExchange---------------------------------------------------------------------37
5.11-------------------------------------------------------------------------------------------------------Expor
t Mechanism-----------------------------------------------------------------------------------------38
5.12-------------------------------------------------------------------------------------------------------Expor
t procedure-------------------------------------------------------------------------------------------39
5.13-------------------------------------------------------------------------------------------------------Expor
t financing--------------------------------------------------------------------------------------------41
5.14--------------------------------------------------------------------------------------------------------Back
to BackL/C-------------------------------------------------------------------------------------------42
5.15--------------------------------------------------------------------------------------------------------Fees
andchange ofSEBLfor Export----------------------------------------------------------------------43

CHAPTER SIX
Project Work on SEBLExportPerformance

6.1 Objective of study-------------------------------------------------------------------------------------46

6.2 Research Methodology--------------------------------------------------------------------------------46
6.3 Export Performance------------------------------------------------------------------------------------46

CHAPTER SEVEN

SWOT ANALYSIS47

CHAPTEREIGHT
Findings of study49

CHAPTERNINE

Recommendations------------------------------------------------------------------------------------------51

CHAPTER TEN

Conclusion---------------------------------------------------------------------------------------------------52
 CHAPTERONE

INTRODUCTION

1.1 Foundationofthe study

ThisreportisaninternshipreportpreparedasarequirementforthecompletionofBBAprogram(Major
inHumanresourcesmanagement)ofBRACUniversity.The primary goal ofinternship
istoprovidethejobexposuretothestudentandanopportunitytoimplementtheoreticalknowledgeinrealli
fesituation.Theprogramcoversaperiodof12weeksoforganizationalattachment.

ThisreportfocusesontheGeneralbankingandforeignexchangeoperationsofSoutheastBankLtd.Throu
ghthisinternshipprogram,IgotsomepracticalKnowledgeaboutthegeneralbankingand theexport
import practices ofacommercial bank andalsorealized that, how
muchimportantissueforacountrytheforeigntradeoperationis.IwassenttotheSOUTHEASTBankLtd.,
th
GulshanBranch,Dhakatotakethepracticalexperienceoftheactivitiesofbankingfrom18 Mayto
th
18 Auguest of 2015.

1.2 ObjectiveoftheStudy

Everytaskhasaparticularaim.Astudywithoutobjectivecannotreachthedestination.Myinternshipprogr
amwasalsodirectedtosomeparticulartargets.Themainobjectiveofthestudyistogainpracticalknowledg
eandexperienceonGeneralbankingaswellasForeignTradeOperation.

Theobjectives arewritten downbelow:

General:

To getpracticalidea about bankingactivities.

ToobservetheGeneralbankingandForeignExchangeoperationofSoutheastBankLimitedand
theirservices.

Specific:

To familiarize with practical job environment.

To observebanker-customerrelationship.
TofindoutsomeproblemsandlimitationsofSoutheastBankanditsForeignExchangemechanis
m.
 Page |10

To haveanexposure onthe financialinstitutionssuch asbanking environment ofBangladesh.

To relate the theories ofbankingwith thepractical in banking.
To observethe processesofL/C.
To observethe major outlineof foreignbusiness.
To observetheforeigncorrespondents of SEBL.
To analysis the expansion of ForeignTrade Business of SEBL.
TorecommendsolutionoforsolvingtheproblemsfacedbySEBLinforeignexchangebusiness.

1.3 ResearchMethodology:

TomaketheReportmoremeaningfulandpresentable,twosourcesofdataandinformations
have been usedwidely.

a. PrimaryData.

b. SecondaryData.

Bothprimaryandsecondarydatasourceswereusedtogeneratethereport.Therelevantinformationiscolle
ctedfromtheprimarysourcesandalsousesthesecondarysourcesofinformation.

Primarydata are collectedthrough:

1. Observationfor the totalinternee period.

2. Openendedand closesendedquestions.

3. Conductedinterviewstuffs ofthe branch.

4. Face to face contactswith the officers.

Secondarydataare collectedthrough:

1. Manuals of SoutheastBankLimited.

2. Website browsing.

3. Banks other published information.

 Page |11

1.4 Limitations oftheStudy:

Therearesomelimitationsinaneverystudy,Ialsofacedsomelimitationsorobstaclesinthewayof
completedmyinternship report.

Thelimitations of this studyare:

AllthetimeofpreparingmyreportItriedtogathereverydetailsofprocessbutthemajorlimitation
is lackofadequate information.
Sufficientrecords, publications werenot availableas permyrequirement.
Althoughbankershavetriedtheirbesttohelpme,theirnatureofjobissuchthatgivesthem little
timeto discuss.
Suchastudy wascarriedoutbymeforthefirsttime.So,inexperienceisoneofthemainfactors that
constituted thelimitation of thestudy
IhavegotideaaboutForeignExchangeTransactiononlyfromtheemployees,Department
ofForeignExchange,SoutheastBankLimited,Gulshanbranch.
ThebranchissobusiertodotheirworksespeciallyForeignExchangeDivision;sometimes it
might be time constraint.
Only12weeksarenotsufficienttovisitallthedesksinthebranch.Sosomedeskswereremainedun
visited.Timeprovidedforconductingthisstudyisanotherimportantconstraint.
 CHAPTERTWO

2.1 COMPANYPROFILE:
SoutheastBankLimited is aorganizedcommercial bank in the private sector established
undertheterritoryofBank CompanyAct, 1991 and incorporatedasaPublicLimited
CompanyunderCompaniesAct, 1994 on March 12, 1995. TheBank started commercial
bankingoperations onMay25, 1995.Duringthis short span oftime the Bank is successful in
positioningitselfas aprogressive and dynamicfinancial institution in the country.

SoutheastBankLimitedhasbeenlicensedbytheGovernment ofBangladesh as
aScheduledcommercialbank in theprivate sector in pursuanceof thepolicyofliberalization of
bankingandfinancialservices andfacilities in Bangladesh.Inviewof theabove, theBank within a
period of20years ofits operationachieveda remarkablesuccess and met
upcapitaladequacyrequirementof BangladeshBank.

SoutheastBankLimitedhas 115branches throughout Bangladeshand its aim is to bethe

leadingBank in the country's principal markets. The bankbyconcentratingontheactivities in its
area ofSpecializationhasachievedgoodmarket reputation with efficientcustomerservice. The Bank
iscommitted to providingcontinuous trainingto its staff to keep them up to
datewithmodernPractices in their respective fields of work.The Bankalsotries tofulfill its sharein
communityresponsibilities. Bysuchmeasures theBank intends to growandincrease
shareholders'earningpershare.SoutheastBankLimitedpledges to maximize
customersatisfactionthroughservicesand build atrustingrelationship with customers,whichhas
stoodthe test oftime for the last 20years.

2.2VisionofSEBL:
Thevision is to be apremierbankinginstitution in Bangladeshand contribute significantlyto
thenationaleconomy.

2.3MissionofSEBL
SoutheastBank is verymuch concernabouttheirmissionbecause divergent
viewsamongmanagerscanonlyberevealed andresolvedthrough the mission statement.

Themission ofthe hank is statedbelow:

High qualityfinancialservices with the help of latest technology.

Fast&accurate customerservice.
 Balancedgrowthstrategy.
High standard business ethics.
Steadyreturn on shareholders'equity.
Innovative bankingat acompetitiveprice.
Deepcommitment to thesocietyand thegrowthofnationaleconomy.

2.4CoreValuesofSEBL
Integrity
Respect
Fairness
Harmony
Team Spirit
Courtesy
Commitment
Service Excellence
Insight andSpirit
Enthusiasm forWork
BusinessEthics

2.5CoreStrengthsofSEBL
Transparent and QuickDecision Making
EfficientTeam of Performers
SatisfiedCustomers
Internal Control andCompliance
Skilled Risk Management
Diversification

2.6CoreCompetenciesofSEBL
Knowledge
Experience and Expertise
CustomerFocus
Transparency
Determination
 Zeal forImprovement
Reliability
Pursuit of DisciplinedGrowth Strategy
2.7Organogram:

TheSEBLhas 15 layerorganogram wherethe MD stands in the toppositionand junior

officerstands in thebottom position. Thetop to button organogram has been shown below:

ManagingDirector

DeputyManagingDirector

SeniorExecutiveVicePresident

ExecutiveVicePresidentSeniorVicePresident
VicePresident

FirstVicePresident

SeniorAsst.VicePresident

Asst. VicePresident
SeniorPrincipalOfficer

Principal Officer

ExecutiveOfficer

SeniorOfficer

Officer

Junior Officer
 2.8CorporateProfile

Name ofthe Company: Southeast BankLimited

Legal Status : PublicLimited Company
Date of Incorporation : March 12, 1995
RegisteredOffice : Eunoos Trade Centre52-53, DilkushaC/A (Level 2,3 & 16),Dhaka-
1000 Chairman : AlamgirKabir,FCA
Vice Chairman : Ragib Ali
ManagingDirector : Shahid Hossain
CompanySecretary: Muhammad Shahjahan
Line of Business :Banking(bothConventional andIslamicBanking)
AuthorizedCapital : BDT15,000 million
Paid Up Capital : BDT 9,169.50 million
Date ofOpeningof FirstBranch : May25, 1995
Year ofInitial Public Officer : 1999
Stock ExchangeListing:April 10, 2000 (DSE) and April 24, 2000 (CSE)
CompanyAuditors: HowladarYunus&Co. andSyful Shamsul Alam&Co.
TaxConsultant: AkhterZamil&Co.
LegalAdvisors : TheLegal
CreditRating: CreditRating InformationandServicesLimited(CRISL)
Validityof theCredit Rating: Up to June22, 2015
No. ofForeignCorrespondents : 791
Phone: 9571115 (Hunting)
Fax: 9550086, 9550093 &9563102
SWIFT : SEBDBDDHXXX
E-mail : info@southeastbank.com.bd
Website: http://www.southeastbank.com.bd
Name oftheBanks SubsidiaryCompanies : Southeast Bank
CapitalServicesLimitedSoutheastFinancialServices
(UK)LimitedSoutheastFinancialServices (Australia) PtyLimitedSoutheastExchange
Company(South Africa) PtyLimited
2.9 Fiveyearsperformanceataglance

InMillionTaka
Particulars 2014 2013 2012 2011 2010

AuthorizedCapital 15,000.00 10,000.00 10,000.00 10,000.00 10,000.00

Paidup Capital 9,169.50 8,732.86 8,732.86 8,317.01 6,930.84

ReserveFund /Others 18,292.59 13,074.71 10,864.68 10,683.05 10,265.96

Deposit 189,472.54 177,519.46 152,901.24 127,178.22 107,253.19

Advance 147,070.81 134,863.82 126,968.97 107,288.56 93,981.20

Investment 56,378.59 57,589.06 37,656.56 29,846.60 18,869.07

ImportBusiness 155,691.00 131,644.82 111,537.50 99,509.01 103,726.70

Export Business 112,137.60 95,220.40 84,464.20 75,982.06 58,158.06

GuaranteeBusiness 13,603.30 17,226.41 21,506.65 25,673.90 22,781.19

RemittanceBusiness 48,740.50 39,299.10 41,455.40 49,544.10 28,082.25

TotalIncome 27,667.10 26,918.30 23,134.18 19,931.91 16,100.81

TotalExpenditure 19,337.34 20,218.11 17,638.99 13,846.24 9,331.55

Operating Profit 8,289.76 6,700.20 5,495.19 6,085.66 6,769.26

Net Profitafter Taxand Provision 3,836.94 3,378.82 1,648.72 1,912.19 2,763.93

FixedAssets 7,913.00 7,795.65 7,677.51 7,373.11 4,463.64

TotalAssets 236,608.40 220,930.85 189,921.58 158,078.59 131,784.27

2.10SEBLServices:

General Banking Services:

1. Accounts Opening
2. Accountmaintaining.
3. Account closing
4. IssuingPayorder.
5. Bank draft.
6. Demanddraft.
7. OpeningofFixed Deposit.
8. ClearingofBank cheques.
Foreign Exchange BusinessServices:

1. Letter ofcredit
2. Parties toLetter ofCredit
3. Operations of DocumentaryLetters of Credit
4. L/CApplication
5. Scrutinyof Documents
6. ScrutinyofL/C Application

InvestmentServices:

1. InvestmentScheme forDoctors
2. Small BusinessInvestmentScheme
3. Housing InvestmentScheme
4. Small TransportScheme
5. CarLoanScheme
6. TransportInvestmentscheme.
7. AgricultureimplementsinvestmentSchemeRuralDevelopmentScheme.

OtherConsumerSavingsSchemes:

1. PensionSavingsScheme(PSS)
2. EducationSavings scheme (ESS)
3. Marriage Savings Scheme (MSS)

Sanchaypatraschemes:

1. EightyearsProtirakha Sanchaypatra (PSP)

2. FiveyearsBangladesh Sanchaypatra(BSP)
3. SanchaypatraInterest onhalfyearlyrest (SP)
4. SanchaypatraInterest onquarterlyrest (SP)

Technology:
At present, all bankingtransactions of SoutheastBank are fullyautomated. Moreover,allactivities
of tradeandoperations arebeingdone throughcomputersand other automation toolsSuchas ATM,
SWIFT. The bank is the memberof the shared ATM NetworkprovidedbyElectronic Transaction
Networkltd. (ETN).At present 55 ATM booths areavailableall overDhaka cityand in thecities of
Chittagongand Sylhet.
2.11 Management ofSEBL:

Differentaspects of managementpractice in Southeast Bank are discussedbelow:

Planning-

SoutheastbankLtd.hasdoneitsplanningwithinthepurviewofthecorporateplan.Theoverallplanningap
proachinSoutheastBankistop-
down.Eachbranchcanplanaccordingtothegoalimposedbythecorporatelevel.Itdoesntplan
independently. Andsoutheast bank hasaplanningdivision. This department is mainlyresponsible
for theoverallplanning.

Organizing-

SoutheastBankLtd.isorganizedaspertheexisting
businesslocations.Ithas115branches,eachofwhichisaseparateentity.Eachunitisresponsibleforownpe
rformanceandfollowedbyManagerHeadseach.He/sheis
directlyresponsibleoftheirunit,withineachbranchit isorganizedfunctionally.

Staffing-

Therecruitmentinsoutheastbankisdoneintwoways.OneasaProbationaryOfficerforthemanageme
ntprogramandithasaprobationperiodoftwoyears.Anotheroneisnon-
managementlevelasTraineeOfficer.

Directing-

ThemanagementapproachinSoutheastBankistop-
downorauthoritative.Informationjustseeksthroughlowermanagementlayer.Worksaredesignedinsuc
hawaythatonecannotleavewithoutclearingthetasksasheisassignedforaday.Sittingarrangementinallo
fficeisdoneinawaythat the superiorcan monitor thesubordinate all time.

Controlling-

Control mechanismsaregiven bellow-

i. Establish standards

ii. Monitor resultandcompare standards.

iii. Correctdeviation

iv. Communicationthrough thecontrolprocess.

v. Reviseand adjust control method in light of controlresults and changing condition.

 CHAPTERTHREE

3.1MajorJobResponsibilities:
InternshipExperienceIdid mythree month internship programin
SoutheastBankLtd,Gulshanbranch. Duringmyinternship program,I gained lots of experience
aboutcorporateenvironment.Myinternshipexperiencearegiven below-

InternshipPosition,Duties&Responsibilities
Thereport has beenprepared on the basis of experiencegathered duringthe period of
internship.Within this timeof period,Iworked with two departments
namelyGeneralBankingandForeignExchange department.
Bank is not follow anyguideline orfixed anyresponsibilities for internship student. MainlyI

3.1.1Account OpeningDepartment

I worked with SoutheastBankLimited,GulshanBranch where I workedfirstlywith

theaccountopeningdepartment. HereIhave learned the procedureofopeningan account and the
documentsthat areneededforopeninganaccounts&typesofaccountsallocatedbySoutheast
BankLimited. Thefollowingactivities whichhad done byme:

To file differentaccountforms in different files.

To sequencingthat forms in different files.
To fill up KnowYour Customer(KYC) form.
To find out the irregularityof differentaccounts.
 Page |20

Account opening Form

I alsoworked partiallyinclearingdepartment.In clearingdepartment, helpingtheclearing

officerand learningclearingprocess andalsowork forEndorsementof Cheque.

3.1.2ForeignExchange Departments

As in this internshipperiod,employeesintroduced me all necessarydocuments required forexport-

import.In this department,Iobserved howaL/C is
open,procedureofL/Copening,documentaryneeded.Ihavedonefollowingtask in this department-

Maintainingof Registered of EXP

Checkingof L/C documents
Dashboardentryof EXP
Maintainingalsoother important registered book.
 Page |21

EXPORTFORM(EXP)
 CHAPTERFOUR

General bankingis the startingpoint ofall the bankingoperations.It is thedepartment,

whichprovides day-to-dayservices to the customers. Everydayit receives deposits from the
customersandmeetstheirdemand for cashbyhonouring cheques.It opens newaccounts, remit
funds,issuesbankdraftsandpayorders etc.

4.1 FUNCTIONSOF GB DEPERTMENT:

1 FRONTDESK/ACCOUNTSOPENING SECTION

2 CLEARINGSECTION

ACCOUNTSSECTION
CASH SECTION

.244
FRONTDESK /ACCOUNTOPENINGSECTION

4.2 FrontDesk /Account Opening Section:

To establish a bankerandcustomerrelationship accountopeningis thefirst step. Openingof
anaccount binds theBankerandcustomer into contractual relationship. But selection of
customerforopeninganaccount isverycrucialfora Bank.Indeed,fraud andforgeryof all kinds
startbyopeningaccount. So, theBank takes extremelycautious measurein its selection of
customers.

Thefollowing works are donebythis section-

1. Acceptingof deposit

2. Openingofaccount

3. Check book issue

4. Closingof account
ACCCEPTINGOFDEPOSIT:
Acceptingdeposits isoneof themain classicfunctions of banks. Therelationship between
abankerand hiscustomerbegins with theopeningof anaccountbythe formerin the name
ofthelatter.Initiallyall theaccountsareopened with adeposit of
moneybythecustomerandhencetheseaccountsarecalleddepositsaccounts. Banker solicits
depositsfrom the members ofthepublic belongingto
differentlifestyles,engagedinnumerouseconomicactivities
andhavingdifferentfinancialstatus.Therearetwo officers performing various functions in this
department.

Thedeposits those areacceptedbySEBLmaybeclassified in to:

a) DemandDeposits.

b) Time Deposits.

DEMANDDEPOSITS:
Theamount in accountsarepayable on demandso it is calleddemand deposit account.
SEBLacceptsdemanddepositsthrough the openingof

Al-WadiahCurrent account (CD)

Mudaraba Savingsaccount(SB)

TIMEDEPOSITS:
A deposit which is payableat a fixeddate oraftera period ofnoticeis a time deposit.In
SEBLMotijheelBranch(Islamic Banking) accepts timedepositsthrough Mudaraba Term
DepositReceipt(MTDR), MudarabaShort Noticed Deposit (MSND),and Mudaraba Schemesetc.
Whileacceptingthese deposits, a contract is donebetween the bankand thecustomer.When the
bankeropens an account in the name ofacustomer,therearise contractsbetween thetwo. This
contractwill bea valid oneonlywhen both the partiesarecompetent to enterinto contracts.

SEBLaccepts timedeposits through the openingof

Mudaraba Term Deposit Receipt(MTDR)

Mudaraba Short Notice Deposit(MSND)

Mudaraba MonthlySavingScheme(MMSS)

OPENING AN ACCOUNT:
Therelationshipbetweenthe Customer and Banksestablished thoughno. of bankaccounts.It isa
contractual relationship. However, selection ofcustomer for openinganaccount is
verycrucialforaBank. There areseveral steps need to be followed to open anaccountin
SoutheastBank.
Thesteps are:

Step1: Applicant fills up the relevantapplication form in the prescribed manner.Step2:

Heor Sheis required to fill up the specimensignature card.

Step3: For individual introduction is neededbyanaccountholder.

Step4: Theauthorizedofficersanalyze theintroduction and examinethe documents submitted.

Step5:Issuance of depositslip and the depositmust be made in cash. Nochequeor draft

isacceptable to theBank.
Step6: Afterdepositingthe cash onechequebook&pay-in-slip book is issued.Step7:
Now fromas the account has beenopened

CHEQUEBOOKISSUE:
Freshcheque book is issued to the accountholderonlyagainst requisition on theprescribed

Procedure ofissuance ofa cheque bookinflowchart

Procedure ofissuance ofa cheque book:

A customerwho openeda new a/cinitiallydeposits minimum required moneyin
theaccount.
Theaccount openingform is sent for issuanceofachequebook
RespectedOfficerfirst draws achequebook
Officerthen sealed it with branch name.
In-charge officer enters thenumberof the chequeBook in ChequeIssue Register.
Officeralso entrythecustomers nameand theaccount number in thesame Register.
 Accountnumber is thenwritingdown on thefaceof theChequeBookandon everyleafofthe
Cheque book includingRequisition Slip.
Thename ofthecustomer is alsowritten down onthe face of theChequebook and onthe
Requisition slip.
ThewordIssuedonalongwiththedateofissuanceiswrittendownontherequisition
slip.
Number ofChequebookanddate ofissuanceis also written on the applicationform.
Next, the customer is asked to sign in the Chequebook issue register.
Then the respectedOfficersigns on the face of the requisition slip put his initial
inthe registerand hand over thechequebook to thecustomer.

CLOSINGTHEACCOUNT
Upon the request of acustomer, anaccountcanbe closed.Afterreceivingan applicationfromthe
customer to closeanAccount, thefollowingprocedureis followedbyabanker. Thecustomer should
beasked to draw the finalcheque for theamount standing to the credit of his a/cless the amount of
closingand other incidentalcharges andsurrender theunused cheque leaves.Theaccount should be
debited forthe account closingchargesetc.andan authorized officer ofthe Bank should
destroyunused cheque leaves.Incase of joint account, theapplicationforclosingthe account should
be signedbyallthe jointholders.

A bankercanalsoclose the account of his customer orstop theoperationof theaccount

underfollowingconsiderablecircumstances:
Death of thecustomer
Customers insanityandinsolvency
Order of thecourt(Garnisheeorder)
Specific charge for fraudforgery
Stop payment ofcheque
A bankercan stop payment of cheque of his customerunder followingconsiderable
circumstances
Firstlytheaccount holder will applyto stop the payment of his cheque

DishonourofCheque:
Ifthe cheque isdishonoured, SEBLsends amemorandum (chequereturn memo) to the
customerstatingthe reason in the followingway:
Refer to drawer
Effects not clearedMaybe presentagain
Exceedsarrangements
Fullcover not received
Paymentstoppedbydrawer
 Drawers signaturediffers/ required
Alterations in date/figures/wordsrequiredrawersfull signature
Cheque is posts dated/out of date/mutilated
 Amount in wordsandfiguresdiffers
Crossedcheque must bepresentthrough abank.
Clearingstamps required/requirescancellation.
Addition to the discharge of Bank should be authenticating.
ChequecrossedAccountPayeeOnly
CollectingBanks dischargeirregular/required.
If thechequeis dishonoured dueto insufficiencyof funds SEBLinform the
accountholderimmediately

CLEARINGSECTION

4.3 ClearingSection:

This section ofthe bankreceivesall kinds of cheques infavour oftheclient for clearingas
the part oftheir bankingservice.Afterreceivingthe Chequeit is necessaryto endorseit
andcross it specially.Basicallythecheques for clearingareoffollowing types:

Inward ClearingCheque

Chequesreceived from the ClearingHouse,ofSEBL.

OBC (OutwardBillsfor Collection)

Cheques of otherbranchof SEBL,within ourclearinghousearea.Thesecheques
aredirectlysent to the respective branchandrequestthem to sendIBCA(InterBank
CreditAdvise). WhenIBCAcomes, thencustomers accounts arecredited fortheamount of
thecheque.

Clearing Cheque
Cheques of anotherbankwithin our clearinghousearea.Thesechequesaresent
toclearinghouseviathe PrincipalBranch. When drawee bank honour thecheques, then
theaccount ofChequedepositors are credited.

Outward clearingcheque
 Cheques of anotherbankwhicharesituated outside theclearingarea thosecheques
arecalledoutwardclearingchequeThese Cheques are cleared in two ways:Firstly,if
anybranch of our bankexistswithin the clearinghouse area of drawee bank, then
wesendthecheque to thatbranch ofour bankand that branchcollects the proceedsthrough
clearinghouse formalitiesand sends anIBCA to us.In second way, if thereis no branch of
ourbank, then we directlysend the cheque to thedrawee bankandrequest them to send
theproceedsbyPO or DD or byin anyother means.

InwardBillsfor Collection (IBC)

These are from other branch of Southeast BankLtd.These Chequesaresettled
bysendingIBCA,debiting depositorsaccount and creditingsendersbranchaccount.
Thesearecan befrom the another bank outside theclearinghouse.
TheseChequesaresettleddebitingdepositor's accountandsending DDor PO in favour
ofsenders bank.

Possibility ofdishonour
Unlike Cheque, thereis no possibilityofdishonouringofPO / DD / TT because
beforeissuing, issuingbank takes out the amount of theinstrument in advancefrom
thecustomer commonforallinstruments.

Received forCollection:
It will begivenat thedeposit slip
Receivedtoo latefor Collection:In case anInstrument if it is present forclearanceafterthe
Bankinghour, then this seal is givenat thedeposit slipBranch Crossing: Authorizedofficer
put branchcrossingat theface of instrument for clearance.

Payee A/C credited:When aninstrument is received bytheclearance section then

thisseal is put at the backsideof theinstrument.

Date:Datewill place atthe face of theinstrumentalongwith collection seal.

MONEYTRANSACTION:
Sending/Transfermoneyfromoneplacetoanotherplaceforthecustomerisanotherimportantservice
ofbanks.Andthisserviceisanimportantpartofcountryspaymentsystem.Forthisservice,people,esp
eciallybusinessmencantransferfundsfromoneplacetoanotherplaceveryquickly.
DemandDraft
PayOrder
Online Transaction
Thebankfollowedmodernonlinetransaction(payment&withdrawaloffund)throughhighspeed
WANservice.Itisremarkablethatcustomersareoftentaking advantageof theonline
transaction.Thechargesofonlinetransactionaretabledbelow.Itshouldbementionedthat,
thereisnocommissionandfeechargedinonlinetransactioninsidetheclearinghouse.In
 caseofoutsidetheclearinghouse,commissionistk.0.10and15%VATonthecommission.
The
minimum charge is tk.0.10 commission and VATon it.

ACCOUNTSDEPERTMENT

4.4 AccountsDepartment:
AccountsDepartment is calledas the nerveCentreof thebank.In banking
business,transactionsaredoneeverydayand thesetransactionsareto be recorded properlyand
systematicallyas thebanksdeal with the depositorsmoney.Anydeviation in properrecording
mayhamperpublicconfidence and the bankhas to sufferalot
otherwise.Improperrecordingoftransactions willlead to the mismatch in the debit side and in the
credit side. To avoidthesemishaps, the bankprovides aseparatedepartment; whosefunction is to
check the mistakes inpassingvouchers orwrongentries orfraudor forgery. This departmentis
calledas Accounts Department.Besides theabove, the bank has to preparesome internal statements
aswellas somestatutorystatementswhich to be submitted to the central bank. Accounts
Departmentprepares these statementsalso.Thedepartment has to submit somestatements to the
Head office, which isalsoconsolidatedbythe Head Office later on.

CASHSECTION

4.5 Cash Section:

Cashdepartment is the most vital andsensitiveorgan ofthe branchas it deals with allkinds
ofcashtransactions. This departmentstarts the daywith cash in vault.Eachdaysomecashthat
isopeningcashbalancearetransferred to thecash officers from the cash vault.
Netfigureofthiscashreceipts andpayments are added to theopening cash balance. The figure is
calledclosingbalance. Thisclosingbalance is then added to thevault. And this is the
finalcashbalance figureforthe bankat the end ofanyparticular day. Cashdepartmentin theSoutheast
Bank, GulshanBranch is authorized dealer offoreigncurrency, soit candeal with buyingand
sellingof foreigncurrency.
 CHAPTERFIVE

5.1 ForeignExchange:

ForeignExchangereferstotheprocessormechanismbywhichthecurrencyofonecountryisconvertedint
othecurrencyofanothercountry.Foreignexchangeisthemeansandmethodsbywhichrightstowealthina
countryscurrencyareconvertedintorightstowealthinanothercountryscurrency.

5.2 Functions ofForeignExchange Department:

Export

Pre Shipmentadvances.
Purchase offoreign bills.
Negotiatingofforeign bills.
Export guarantees.
Advising/ confirmingletters letterofcredit.
Advancefordeferredpayment exports.
Advanceagainst bills forcollection.

Import

Openingofletter of credit(L/C)
Advance bills.
Bills for collection.
Importloanandguarantees.

Remittances

Issue of DD, MT, TT,etc.

Payment ofDD, MT, TTetc.
Issue andenhancement oftravelers cheque.
 Page |30

Saleandenhancementforeigncurrencynote.
Non-residentaccounts.

Dealings:

Rate computation.
Maintenance offoreign currencyaccount.
Forwardcontracts.
Exchange position and cover operations.

Statistics:

Submission of returns.
Collection of credit information.

BasicallytheForeignExchangedepartmentdealswiththeL/Coperation.Therearemainlythreetypes of
transactions which lead to foreignexchange.Theseare:

a) Export

Import

ForeignRemittance.

5.3LocalregulationofForeignExchange

InBangladeshforeignexchange transactions arebeing controlledbythe some localrules. Theseare:

Foreign exchange regulation(FER)Act, 1947(Act No. VIIof1947)enacted on

th
11 March, 1947 in BritishIndiaprovides the legal basis forregulating
certainpayment,dealinginFEand securities and import and export ofcurrencyandbullion.
This Actwasfirstadapted in Pakistanand then in Bangladesh.
BangladeshBankissuesForeign exchangecircular from time to time to control
theexport, import andremittance business.
Ministryof commerce issues export and import policygivingbasic formalities for
importand export business.
SometimeChiefControlofImport&Export (CCI&E) issues public notice foranykindof
change inforeign exchange transaction.
Bangladeshbank publishedtwo volumes in 1996. This is compilation of the
instructionto be followedbythe authoriseddealers in transitionsrelation to foreignexchange.
BangladeshBankhaspublishedabookGuidelineforForeign
ExchangeTransaction(Volume-VI)toregulateforeignexchange.Itisamended
 Page |31

aftereveryfiveyears. And the volumes includeinstructionsas on the31 May,2009andshould

be read withForeignExchangecirculars or circularLetterissuedsubsequently.
StatutoryRevenue Order(SRO).

5.4InternationalRegulationofforeignexchange

Therearesome international organizationsinfluencingourforeignexchange transactions. Theseare:

TheUniform Customs and Practice for DocumentCredit, 2007

Revision.ICCPublication No.600 (UCP) is rulesthat applyto
documentarycredit.

Commercial letterof credit is the lifeblood of internationaltrade.For morethan 70years,the

Uniform Customs and Practice for documentarycredit
havegovernedletterofcredittransaction worldwide. The UCP hasremained a
vitalcomponent of internationaltrade.Bankers,traders,lawyers,transporters,academics and
all who deal with letterofcreditstransaction will refer to UCP600 on adailybasis.

The InternationalChamberof Commerce (ICC), theWorld BusinessOrganizationbasedin

Paris, is the globalleader in the developmentofstandards,rules and
referenceguidesforinternationaltrade. Thereis also an international court of arbitration to
solve theinternationalbusinessdisputes.

World Trade Organization (WTO)is anotherinternationaltrade organization establishedin

1995. Generalagreement on Tariffand Trade(GATT)was established in 1948,
aftercompletion of it's 8th round the origination has been abolished and replaced
byWTO.This organizationhas rolein internationaltrade,through its 124 member
countries.
5.5LetterofCredit(L/C)

Letter ofCredit(L/C) isa paymentguaranteeto the sellerbythe buyers bank.Letter ofCreditcan be

definedasaCredit Contract wherebythe buyersbank is committed(onbehalf ofthebuyer)to place
anagreedamount of moneyat thesellers disposal claimed bythe negotiatingona particulardate
under some agreedconditions.Ifthe conditions of thecredit do not requireforpresentation of
specifieddocuments, it is calledCleanCredit. On thecontrary, if the presentationof specified
documents is obligatory, thecredit is called aDocumentaryCredit. TheUniformCustoms and
Practice forDocumentCredit, 2007Revision.ICCPublication No.600 (UCP) isrules that applyto
documentarycredit.

Anyarrangement,howevernamedordescribed,thatisirrevocableandtherebyconstitutesadefiniteun
dertakingof theissuingbank to honoura complyingpresentation.

Honour means:

To payatsight if the credit is availablebysight payment.

To incur a deferredpayment undertakingandpayat maturityif thecredit is available bydefe

To accept a bill of exchange (draft) drawn bythebeneficiaryandpayatmaturityif thecreditis

Buyersandsellersenterinto contracts for buying andsellinggoods/ services andthe buyerinstructs

his bank to issueL/C in favours ofthe seller.Here bankassumesfiduciaryfunctionbetween the buyer
and seller.

Letter ofcredit is an undertakingbythe importers bank that if the exporter exports the
goodsandproduces documentsasstipulated in the letter,the bank would makepayment to
theexporter.
5.6Typesof letterof Credit

DocumentaryofCreditmaybeeither:
RevocableCredit:Thistype ofcreditcanbecancelled oramendedatanytimebythe issuingbank
without prior noticeto the beneficiary. Nowit is not used.
IrrevocableCredit:Thistypeofcreditcantbecancelledoramendedbytheissuingbank
withouttheagreementofpartiesconcernedthereto.Allthecreditsissuedinourcountryareinirrevocablen
ature.
AddConfirmedCredit:Whenathirdbankprovidesguaranteetothebeneficiarytomake
paymentincaseoffailureofmakingpaymentofissuingbank,theL/CiscalledconfirmedL/C.Incaseofcon
firmedL/C,athirdbankaddstheirconfirmationtothebeneficiarytomake
paymentinadditiontothatofissuingbank.ConfirmedL/Cgivesthebeneficiaryadouble
assurance of payment.

AlsotherearespecialtypesofDocumentaryofCredit

RevolvingCredit:Arevolvingcreditisonewhere,underthetermsandconditionsthereof,theamount
ofcreditisrenewedorreinstatedwithoutspecificamendmenttothecreditbeingneeded which provides
forrestoringthe credit to the original amount after ithasbeen utilized.
TransferableCredit:IfthewordTransferableincorporatedinanL/C,thentheL/Cis
transferable.Thefirstbeneficiary
cantransfertransferableL/Ctosecondbeneficiary.Butsecondbeneficiarycannot transfer it furtherto
first beneficiary.
Back-to-BackCredit:One creditbacksbyanother.Itmayso happenthat the
beneficiary/sellerofanL/Cisunabletosupplythegoodsdirectasspecifiedinthecreditasaresultofwhichh
eneedstopurchasethesamegoodsandmakepaymenttoanothersupplierbyopeningasecondletterofcredi
t. Inthiscase,thesecondcreditcalledaBacktoBack
L/C.Thebacktobackisanewcreditopenedonthebasisofanoriginalcreditinfavourofotherbeneficiary;u
nderthisconceptthesellerofthefirstcreditoffersitassecuritytotheadvisingbankfor the assurance ofthe
secondcredit.
 OnthebasisofpaymentCriteria
SightPaymentCredit:ThistypeofL/Cisbaseduponpaymentonpresentationofdocuments. When
theL/Cbearsaclause of payment at sightthentheL/Ciscalledsight paymentL/C.
DeferredPaymentCredit:WhenthepaymentofL/Cistobemadeafteraspecifiedperiod
oftime ofshipment then theL/C is calleddeferredpaymentL/C.

OnthebasisofDestinationCriteria
InlandCredit:WhentheL/Capplicant&beneficiaryfromsamecountryandgoodshandledwith in
countrythen theL/C is calledInlandL/C.
ForeignCredit:PartiesofL/Cespecially applicantandbeneficiaryoftwodifferentcountries
dealseach otherthroughL/C, this types ofL/C iscalledforeignL/C.

5.7Partiestoaletterof Credit
Thereare anumberof parties involved in anL/C:

Importer/Buyer/Applicant:Theperson orbody(customer ofthe bank)who requests the

bank(openingbank) to issueletter ofcredit. The importeror buyer is theapplicant of
aletterofcredit.Applicant must be the client of the issuingbank.

Issuing/OpeningBank:This is the bank,whichissues documentarycrediton account of itsclient.

Thebank that opens/ issues letter ofcrediton behalf oftheapplicant/importer.

Exporter/seller/ beneficiary:Beneficiaryof the L/C is thepartyin whosefavour the letter ofcredit

is issued orestablished.

Advising Bank/Notifying Bank:Thebankthroughwhich theL/C is advised to thebeneficiaryor

exporter.It is a bank situated in the exportingcountryand it maybea branch of theopeningbank ora
correspondentbank.

Confirming Bank: Thebankwhichadds its confirmation to the creditandit is done at therequest

of the issuingbank. Theconfirmingbankmayor maynot be theadvisingbank.
Negotiating Bank:Thebank that negotiates document andpays the amount to the
beneficiarywhenpresented complyingcreditterms.If the negotiation ofthe documents isnot
restricted to aparticular bank in theL/C, normallynegotiating bank is the banker of the
beneficiary.Usuallythis is exportersbank that purchases the export documents.

Reimbursing/Paying Bank:This bank acts as an agent of theIssuing Bank,authorized to

makepayment or to honour reimbursingclaim of theNegotiatingBank.Thebanknominated in
thecreditbythe issuingbank to make payment against stipulateddocuments,complyingwith
thecreditterms.

TransferringBank:Thebankwhich will transfertheL/C, beinginstructed bythe originalbeneficiary.

5.8ImportantDocumentUsed in L/C
Forwarding: Forwardingis theletter givenbythe advisingbank to theissuingbank.Severalcopiesare
sent to theissuingbank. All copies includingoriginal should bekept in the bank.

CommercialInvoice: The invoice prepared relatingto shipment of thegoods is

commonlyidentifiedascommercialinvoice.Commercialinvoice is an integral part ofthe
shippingdocumentpreparedbythe selleras per terms ofthe credit.Invoice is thepricelist
alongwithquantities. Two copies should be given to theclient and theothercopies should be kept
in thebank.

BillofExchange:Abillofexchangeisaninstrumentinwritingcontaininganunconditionalorder,sign
edbythe maker, directing a certain person to payon demand or a at fixed ordeterminablefuture
timea certain sum of moneyonlyto, or to theorder of a certainperson, or tothe bearer ofthe
instrument. (NegotiableInstrumentAct. 1881, Section-5).Itmaybe eitheratsight or
certaindaysight.At sightmeans making paymentwhenever documents will reach in
theissuingbank.

Packing List:Packinglist is the letterdescribingthe number ofpackets and there

size.Ifthereareseveralcopies, thentwo copies should begiven to the client and theremainingshould
be keptin the bank

Bill ofLading:Bill ofLadingis thebill givenbyshippingcompanyto theclient.It is a

transportdocument, the bill of ladinggives proof ofshipment of goods from port of lading/place
ofreceiptto port of discharge/placeof destination. OnlyonecopyofBill ofLadingshould be given to
theclient and the remaining copyshould be kept in the bank.

Certificate ofOrigin:Certificate of origin is a document describingthe producing countryofthe

goods. Anapprovedchamberofcommerce ofthe exporters countrygenerallyissues thecertificate
oras has beenstipulated in the credit terms.
Inspection ofcertificate:An inspectionprior to shipment is conducted
byanindependentbodywhichconfirmsbycertifyingthat the quantityandprice and other aspectsof
thegoods as havebeenspecified in the contract. Theinspection agencyis nominatedbythe buyer or
L/C openingor as per rules of the importerscountry.

Proforma Invoice: ProformaInvoice is thesale contactbetween sellerandbuyer in export-import

business.It is a form ofquotation to apotential buyer, invitinghim to buythegoods onstatedterms.

Inco-Terms:Inco-Terms simplymeanInternationalCommercialTerms.These are also

knownasContractTerms orTrade Terms orDeliveryTerms or SalesTerms or Purchase Terms.
Theseareusedin thefield of internationaltrade orforeigntrade.

NostroAccount: Theforeigncurrencyaccount maintained bythe authorizeddealers in

foreignexchange with theforeign banks/correspondentsarecalled Nostro Accounts. All
foreignexchange transactions are routedthrough nostro accounts. Nostro
Accountmeans'ouraccountwithyou.

VostroAccount: CurrentAccounts of foreign banks with their correspondents in the

latterscurrencyis called VostroAccounts. Vostro account means'youraccount with us'.

LoroAccount:LoroAccountsarecurrent accounts which the banks maintain with banks abroad

on behalf oftheirclients.LoroAccounts means'their account withyou.

Insurance document:Insurance is acontract wherebythe insurer is undertakingto indemnifythe

assured to theagreedmannerandextent againstfortuitous losses.

5.9TransmissionofLetterof Credit

SWIFTisanabbreviationofSocietyforWorldwide InterbankFinancialTelecommunications.It is a
system of transmittingauthenticatedmessages widelyusedbyBanks&FinancialInstitutions.SWIFT
is aco-operative organizations set up inBrussels under Belgianlaw in 1973.

TheSWIFT is a computerized messageundertakesquick transfer offunds, transmission ofLetterof

Credits(L/C)and other remittances worldwide.It has become most dependable and speedysystem
forinternationalfinancialtransactions. The SWIFT networkalsohandlesforeignexchange
confirmation and reconciliation. Themajor advantage of theSWIFT is that it has
aformatrequirementfor messages. This allows banks to interconnect it to
othercomputersystemssuch asCHIPorUSFedwireand reduces settlementrisks.
5.10 RisksinvolvedinForeignExchangeBusiness

Risk of non-payment
Risk of non-deliveryof goods
Risk of receivingsubstandardgoods
Risk of frauds in goods
Charter partyfrauds
Containerfrauds
Exchangerisk
Failure ofForeign banks
Suddenchanges in polices
Countryrisk
 ExportProcedures

The importandexporttradeinourcountry areregulated bytheImportandExport(Control)Act,1950.

UndertheexportpolicyofBangladeshtheexporterhastogetvalidExportregistrationCertificate(ERC)fr
omChiefControllerofImport&Export(CCI&E).TheERCisrequiredtoreneweveryyear.TheERCnum
beristoincorporateonEXPformsandotherpapersconnectedwith exports.

UndertheexportpolicyofBangladesh,theexporterhastogetthevalidexportregistrationcertificate(ERC
)fromchiefcontrollerofexport&import(CCI&E).TheERCisrequiredtoreneweveryyear.TheERCnum
beristobeincorporatedonexportform&otherpapersrelatedwith exports.

For obtainingexport registrationcertificate fromCCI&E, thefollowingdocuments arerequired:

ApplicationforERC.
Nationality&assetscertificates.

Trade license.
Partnershipdeed(for partnership business).
Bank certificate.
IncomeTaxCertificate.
Memorandum&article of association &certificateof incorporation(forLimitedCompany).

5.11 ExportMechanism
Exporter willmake the goods readyfor shipment.
Thearrangements haveto be taken for inspectionofthegoodsbythecompetent authorityas
percreditterms.
Exporterwilldeclare export on EXP
fromagainstexportL/CfirmContract/Advancepayment.
Exportershave to take approvalfrom custom authorityon EXPbysubmittingExportL/Cand
othernecessarydocuments.
Afterthat, shipping companywill receive thegoodsand will issue B/L.
Exporterwillcollectcertificate oforigin for documentation.
Thenexporterwill submit the full set of documentto the negotiating Bank
fornegotiation.
 Negotiating Bank will dispatch the documents to theissuing Bank for Clearance of
thegoods from port of destinationagainstpayment aspercreditterms.

5.12 ExportProcedure
Thereare anumberofformalities, which anexporterhas to fulfill before and after shipment
ofgoods.These formalities or procedures areenumerated as follows:

ObtainingExportRegistrationCertificate ERC:No exporter is allowedto export

anycommoditypermissible forexport fromBangladeshunless heis registeredwith
ChiefControllerofImportsand Exports (CCI&E) and holds validExport RegistrationCertificate
(ERC). Afterapplyingto the CCI&E in the prescribedfrom alongwith thenecessarypapers,
concerned officesofthe ChiefController ofImportsand Exports issuesERC.Once
registered,exportersare tomakerenewal of ERC every year.

Securing the order:

AftergettingERC, the exporter mayproceed to secure theexport order. He can do this

bycontractingthe buyers directlythroughcorrespondence.

Signing ofthe contract:

Aftercommunicatingwith buyer the exporterhasto

getcontractedforexportingexportableitemsfromBangladesh
detailingcommodity,quantity,price, shipment, insuranceandmark,inspection,arbitration etc.

Receiving the Letter ofCredit:

Aftergettingcontract forsale,exporter should askthe buyerforLetter of Credit clearlystatingterms

and conditions of export andpayment.Afterreceiving L/C, the followingpoints areto belooked for:

Theterms of theL/C arein conformitywith thoseofthe contract.

The L/C is an irrevocableone, preferablyconfirmedbytheadvisingbank.
The L/Callows sufficient time for shipment and areasonable time for registration.

If theexporterwants theL/C to be transferable, divisible and advisable, heshould ensurethose

stipulations arespeciallymentioned in theL/C.

Procuring thematerials:

Aftermakingthe deal and on havingtheL/C opened in hisfavour, the next step forthe exporteris
to set about thetask of procuringor manufacturingthecontracted merchandise.
 Page |40

Endorsement on EXP:Beforetheexport formsare lodgedbytheexporterswith

thecustoms/postalauthorities, theyshouldgetall
thecopiesendorsedbySEBL.Beforeshipment,exporter submits EXP. form with commercial
invoice. Then SEBLofficerchecks it properly, ifsatisfied,certifies theEXP. Without it exporter he
cannotmake shipment. The customer mustdeclare all exports goodson the EXP issued
bytheauthorizeddealers.

Shipment of goods: Theexporter should takethepreparationfordeliveryof

goodsasL/C&underother terms & conditions, prepareand submit shippingdocuments
forpayments/acceptance/negotiations in duetime.

Presentationofexportdocuments fornegotiation:

Aftershipment, exportersubmitsthe followingdocuments to SEBLfornegotiation.

EXP form
Bill of exchange
Bill ofLading
Invoice
Insurance Document
Certificate oforigin
InspectionCertificate
PackingList
QualityControl Certificate
G.S.P.certificate
Otherdocuments

Banks deal with documents only, notwith commodity. As the negotiating bank is
givingthevaluebeforerepatriationofthe export proceeds itis advisableto scrutinize and examine
eachand everydocument withgreat care whetheranydiscrepancy(s)is observedin the
documents.Thebankers are to ascertainthat the documents arestrictlyas perthe
termsofL/CBeforenegotiation oftheexport bill. Bankofficersassigned forexaminingtheexport
documentsmayuse achecklist fortheir convenience.
 Page |41

Negotiationstands forpayment of value to the exporteragainst the documentsstipulated in

theL\C.If documents arein order, SEBLpurchases(negotiates) thesameon the basis of banker-
customerrelationship. This is known asForeignDocumentaryBill Purchase (FDBP).

Ifthe bank is not satisfied with the documents submitted to SEBLgives theexporterreasonabletime
to remove the discrepancies orsends thedocuments toL/Copeningbank forcollection.
This is known asForeignDocumentaryBill forCollection (FDBC)

5.13 ExportFinancing:
Financingexports constitutesanimportantpart ofa banksactivities.Exportersrequire
financialservices atfourdifferentstagesoftheir export operation. Duringeach of these
phasesexportersneeddifferenttypes offinancialassistance depending on the nature of the export
contract.

Pre-shipmentcredit

Post-shipmentcredit

Pre-shipmentcredit:

Pre-shipmentcredit,as the namesuggests, isgivento finance theactivities of anexporterprior tothe

actual shipment ofthe goodsforexport. Thepurposeofsuchcredit is to meet workingcapitalneeds
startingfrom the point of purchasingof rawmaterials to final shipment of goodsfor exportto
foreigncountry.Before allowingsuch credit to the exporters the bank takes into considerationabout
the credit worthiness, export performance ofthe exporters,together with all
othernecessaryinformation required forsanctioningthe credit in accordancewith
theexistingrulesandregulations.Pre-shipmentcredit is given forthe followingpurposes:

Cash forlocal procurement and meeting relatedexpenses.

Procuringand processing of goodsforexport.
Packingand transporting of goodsforexport.
Payment ofinsurancepremium.
Inspectionfees.
Freightchargesetc.
An exportercan obtaincreditfacilitiesagainstlienon the irrevocable,confirmedandunrestrictedexport
letterof credit in form of the followings:

Export cashcredit(Hypothecation)
Export cashcredit(Pledge)
Export cashcreditagainst trust receipt.
Packingcredit.
Back to back letter ofcredit.
CreditagainstRed-clause letterofcredit.

Post Shipment Credit:

This type ofcredit refersto the creditfacilitiesextended to the exportersbythe banksaftershipment

of the goods against export documents. Necessityfor such creditarises, as theexportercannotafford
to waitforalongtime for without payingmanufacturers/suppliers. Beforeextendingsuch credit, it is
necessaryon the part ofbanks to look into carefullythe financialsoundness of exporters and
buyersas well as other relevantdocumentsconnectedwith the exportin accordancewith therules
andregulations in force. Banks in our countryextend post shipmentcredit to the exportersthrough:

1. Negotiation ofdocuments underL/C;

2. Foreign DocumentaryBill Purchase(FDBP):

3.Advancesagainst Export Billssurrendered for collection

5.14BacktoBackL/CisanimportantpartofSEBL:
Back-to-Back L/C:Itmayso happen that the beneficiary/seller ofanL/Cisunable to
supplythegoodsdirect as specifiedin the creditas aresult ofwhich heneeds to purchase the
samegoodsand makepayment to anothersupplierbyopeningasecond letter ofcredit.In this case,
thesecondcreditcalledaBacktoBackL/C.ABack-to-BackmechanisminvolvestwoseparateL/Cs.
Oneis master ExportL/Cand another is Back-to-BackL/C.On the strengthofMasterExport
L/Cbankissues back to backL/C.Back-to-BackL/C is commonlyknown asBuyingL/C.On the
contrary, MasterExportL/C is known asSelling L/C.

Scrutiny ofMaster L/C:

Defective Points or Clausesappears in the MasterL/C

Issuingbank is not reputed
Advisingcreditbytheadvisingbank without authentication.
 Port of destination absent.
Inspectionclause.
Nomination of specificshipping/Airline or nomination of specified
vesselbysubsequentamendment.
rd rd
B/Lto blankendorses, to endorse to 3 bank, to be endorsed to buyer or3 party.
No specificreimbursing clause.
Shipment/presentationperiod is not sufficient.
Original documents to besent to buyer ornominated agent.
FCRconsigned to applicant or buyer.
Shippersloadandcountisnotacceptableclause.
L/C shall expirein thecountryof theissuingbank.
Negotiation is

restricted.Paymentunder back-to-

back L/C:

Paymentat maturityoutofexports proceeds.

Incase of export failureor non-realization/shortrealization ofexport proceeds,forced loan

i.e.OAPhas to be created in order to settle theBack-to-BackL/Cpayment.

5.15 Fees&Chargesof SEBL forEXPORT

Negotiationcommissionfor export bills inforeigncurrency:

No charges forNegotiation.Interest on overdueperiod will be appliedas per ourlendingrate.

Negotiationcommissionfor export bills inlocal currency:

@0.25% flat orminimum Taka 1,000/-plus interest forthe period the bill

remainoutstanding.AdvisingForeignBankLCs to the local beneficiary@ Taka1,000/- perinstance

LC advising charge - Local LC (BTB &Inland):

- Taka 750/-per instancefor ourBankclient.

 - Taka 1,000/-per instance for other bank'sclients.

AmendmentAdvice:

- Taka 750/-per instancefor ourBankclient.

- Taka 1,000/-per instance for other bank'sclients

Transfer ofLC:

- Transfer Charge-Taka1,000/- perinstanceforour Bank'sclient.

- Commission for transfer ofamendment-Taka 500/- perinstanceforourBank'sclients.

Addingconfirmation charge@ 0.25%per quarter

ForeignBank'sguaranteecommissionagainstdiscrepant bills At actual

CollectingBank'schargesfromabroadAt actual

Processing ofdocumentsunder collection in foreigncurrency:

- Fullwaiver ofhandling charges.

- Postage / Swift / Mail / Telex/ Courierchargesto be realizedat actual.

Processing ofdocumentsunder collection in local currency:

- Fullwaiver ofhandling charges.

- Postage / Swift / Mail / Telex/ Courierchargesto be realizedat actual.

Mailing of ExportDocument:

- 1st mailatactual orminimum Taka 1,500/-

- 2nd mail at actual orminimum Taka 800/-

Advisingofguarantee to thebeneficiaryin original without anyengagement on our part @ Taka500/-flat.

Advisingof Guarantee inoriginalbyaddingour confirmation. As per agencyagreement or@ 0.50% per

quarter orpart thereof minimum Taka 1,000/-.

Advisingofguarantee in our own format oron theformat supplied bytheopeningbank with our
fullengagement -As peragencyagreement or@ 0.50% perquarter orpart thereof minimum Taka 1,000/-.

Issuing BidBond / PerformanceBond favouring overseas beneficiarythroughforeign correspondent

atclientsrequest -As per agencyagreementor @0.25%perquarter or partthereofalongwith SWIFT /Mail
charge.

Chargefor issuanceof Export Performance Certificate @Taka200/- and stationarycharge Taka50/-.

Chargefor issuance of ProceedsRealizationCertificate (PRC) /PRC forCashIncentive/

CustomPurpose:

- Taka 500/-per instance

- Taka 200/-speciallyforJute Sector

Chargefor issuanceofBack to BackLC Certificate- Taka 500/-per instance.EXP issuingcharge -

Chargefor issuanceofC&FCertificate-Taka500/- perinstance.
 CHAPTERSIX

6.1Objectiveofthe Study

Myinternshipprogramwasalsodirectedtosomeparticulartargets.AsweknowthatForeignExchangem
arketisverymuchcompetitivenow,sothemainobjectiveofthisparticularprojectworkistogainsomekno
wledgeandexperienceonExportperformanceofSEBLwithOtherimportant privatebanks.

6.2ResearchMethodology:

Tomakethisworkmoremeaningfulandpresentable,twosourcesofdataandinformationsareneedednor
mallybutbecauseoftimeshortensitwasdifficulttogetprimarydata.SohereIonlyuse thesecondarydata.

Secondarydataare collectedthrough:

Manuals of Southeast BankLimited.

Annualreport of Southeastbankand otherbanks.
Website browsing.
Banks other published information.

6.3 Exportperformance

SEBL. B.ASIA ONEB. M.T.B. EXIMB. J.B.L

Name
Year
2010 58,158.06 43963.70 31961.09 5810.98 61285.90 55211.80
2011 75,982.06 67480.10 66360.78 52943.29 76231.46 61583.64
2012 84,464.20 68417.30 79413.67 68282.56 83579.04 73990.33
2013 95,220.40 75155.30 86201.54 60555.54 96646.56 88617.43

2014 112,137.60 88146.12 97291.00 82224.78 111,129.50 91406.94

InMillionTk.
TheCHARTpresentsgrowthrateand position ofSEBLbycomparingwith the otherprivatebank on
the basis of Export.On the above chart we see thecomparative position of SEBLissatisfactory.Its
export performance will increaseyear toyear.The procedureof export ofSEBLis quicker. So
exporters aremoreinterested to export through SEBL.

CHAPTERSEVEN

SWOTANALYSISOFSEBL
It is verydifficult to findout &analyze the overallbankingperformance of SEBLwith in
averylimited time.SWOTanalysis is a simple framework for generatingstrategicalternatives from
asituationanalysis.It stands forStrength, Weakness, Opportunityand Threats of
SEBL,GulshanBranch.

Strength

LeadingRetailloanproviders.
Betteremployee relations.
Betterlocation ofthe branch.
Betterfinancialstanding.
Interestingconsumer schemes.
Quick deliveryofforeignexchange.
On line Banking
ATM facility
SimultaneouslyIslamicBanking.
Well reputation in the market.
SoundImport&Export operation.
Satisfactoryoperating efficiency.
Good relation withImporter&Exporter.
Experienced Management team.
Membership with SWIFT.
Online bankingsystem.
Weaknesses

Inadequate work force.

Conservative loan facility.
Lack of sufficientown ATM booths.
Lowmanpower inForeignExchange.
Lack of properManagement.
Highcost offund.
Lack of well workingenvironment.
No customercomplain desk.
Moderatecorporategovernance.

Opportunities

Marketleadership.
Growth ofthe bankingsector.
Different consumerserviceschemeof theSEBL.
Makethegoodwill.
Performmore quicklyservices.
Go beyond the nationalboundaries.
SMS banking.
Import&Export areincreasing gradually, so bankcan exploit this opportunity.
To increase ForeignExchangeRemittance.
Creation of brand image.
To increase moreonlineproducts&services.

Threats

Intense competition.
Government rulesandregulation.
Economicalvariation.
Policyof competitive banks.
Loss arisingfrom fluctuation in foreigncurrencyexchangerate.
Assets andLiabilitiesdenominated in foreigncurrencies have foreign exchange risk.
 Failure ofForeignbanks.
 Lack of thrust to the foreign investors.
Governmentimposes high Tax&VAT in Export-ImportBusiness.
Politicalunrest.

CHAPTEREIGHT

FindingsofSEBL

South EastBankLimited is oneof theleadingprivate banks in the country.Thefindingsof

thereportare-
InBangladesh,developingcountry,SEBLhastakencostleadershipstrategytoreachtothe client
as atrusted partner.
SEBLconsidersclients as bankclient not branchclient.
DevelopinganeffectiveL/CmarketingstrategyisnowbeingconsideredimportantbySoutheast
bank
Internetbankinghasbeenusedinalimitedform.SoutheastBankprovideslittlesomeonlinebanki
ngservice.Balanceofanaccountorloanordepositcanbecheckedandinquiriesarepossiblethroug
honlineandBanktransfertheircustomersL/Cordertoabroadbankbyonlinebanking
Foreign exchangedivision also expandingits service daybyday.
ForeignexchangedivisionContributealargeamountofincomeonthetotalincomeofthe
bankeachyear.
Still there is lack of manpower in Foreignexchange division to provide quick service.
SoundImport&Export operation.