Internship Report

on
“Foreign Exchange Operations of Janata Bank
Limited”

Prepared For
Md. Moniruzzaman
Senior Lecturer
Department of Business Administration
Stamford University Bangladesh

Prepared By
S.M. Zahid Hossain
ID No: BBA 05416987
BBA Program
Major: Finance
Department of Business Administration

Date of Submission: 11th February, 2018

Stamford University Bangladesh.

 Letter of Transmittal
Date: 11th February, 2018

Mr. Md. Moniruzzaman

Senior Lecturer
Dept. of Business Administration
Stamford University Bangladesh.

Subject: Submission of internship report on Foreign Exchange Operations of

Janata Bank Limited.

Dear Sir,
I am proud to be a student of BBA of Stamford University Bangladesh. I have completed
the internship report “Foreign Exchange Operations 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,

S.M. Zahid Hossain

ID No: BBA 05416987
BBA Program
Major: Finance
Department of Business Administration

ii
 Student’s Declaration

Internship Report

I here announce that the extensive study entitled

“Foreign Exchange Operations of Janata Bank Limited”
Prepared 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 term or honor

S.M. Zahid Hossain

ID No: BBA 05416987

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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 Operations of Janata
Bank Limited” for the degree of Bachelor of Business Administration (BBA) major in
Finance from Stamford University Bangladesh carried out by S.M. Zahid Hossain, ID
No : BBA 05416987 under my supervision. As far as I am concern, no part of the thesis
report has been submitted for any degree diploma, title, or recognition before.

Md. Moniruzzaman
Senior Lecturer
Dept. 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 Md. Moniruzzaman, Senior Lecturer, Dept. of Business
Administration, Stamford University Bangladesh without his guidance and support it
would be very difficult for the successful completion of my 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

The 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 in2013 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. In total national market share of export,
import and 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
SL. No Chapters & Contents Page No
Cover Page
Inside top page
Letter of Transmittal ii
Student’s declaration iii
Supervisor’s certificate iv
Acknowledgment v
Executive Summery vi
Table of Contents vii-ix
List of Figures x
List of Tables xi
Chapter:1 – Introduction 01-04
1.1 Background of the study 02
1.2 Rationale of the Study 02
1.3 Objectives of the Study 03
1.4 Scope of the Study 03
1.5 Limitations of the Study 03-04
1.6 Methodology of the Study 04
Chapter:2 – Background of the Organization 05-11
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
2.4 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

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 Chapter:3 – General Banking Activities of JBL 12-48
3.1 General Banking Activities of Janata Bank Ltd. 13
3.1.1 Account Opening Section 13-14
3.1.2 Documents for Opening Some Special Account 14
3.1.3 Limited company 14
3.1.4 Club/Societies Account 14
3.1.5 Savings Account Individual or Joint 15
3. 1.6 Other Products and Services 15
3.2 Remittance in Bangladesh 15-16
3.3 Local remittance 16
3.3.1 Pay Order Issue 16
3.3.2 Demand Draft Issue 16-17
3.3.3 Telegraphic Transfer 17
3.3.4 Mail Transfer (MT) 17
3.4 Clearing section 17-18
3.5 Cash Section 18
3.6 Dishonor of Cheques 18-19
3.7 Deposit Section 19
3.8 Closing Accounts 19-20
3.9 Accounts Section 20-21
3.10 Credit and risk management (CRM) 21-23
3.10.1 Loan & Advances 23
3.10.2 Foreign exchange 23-24
3.10.3 Foreign exchange market and Bangladesh 24
3.10.4 Foreign Exchange Products in Bangladesh 24-25
3.10.5 Different Foreign Exchange Rate in Bangladesh 25-26
3.10.6 History of Exchange Rate System in Bangladesh 26
3.10.7 Interbank Transaction in Foreign Exchange in Bangladesh 27
3.10.8 Movement of Monthly average of USD/BDT Exchange Rate. 27
3.10.9 Category Wise Position of Interbank FX Transaction 27-28
3.10.10 Foreign Exchange Department 28-29
3.10.11 Import Section 29-36
3.10.12 Export section 37-42
3.10.13 Remittance section 42-48
Chapter:4 – Analysis and Findings 49-59
4.1 Trend analysis 50-52
4.2 Income from Foreign Trade 53
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4.2.1. Import Earning and Portion of Import earnings on Total Foreign 53
Trade
4.2.2. Export Earning & Portion of Export Income on Total Foreign 54
Trade Earnings:
4.2.3 Remittance Earnings and Portion of Remittance on Total Gain of 55
Foreign
4.2.4. Comparison of Import, Export and Remittance Earnings 56
4.3 SWOT Analysis Foreign Exchange Department of Janata Bank 57-58
Ltd.
4.4 Findings 59
Chapter: 5 Concluding Chapter 60-69
5.1 Recommendations 61
5.2 Conclusion 62
Bibliography 63
Abbreviation 64
Appendices 65-69

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 List of Figures

Name of Figures Page no.

Figure: 2.1 Management Structure of Janata Bank Ltd. 09
Figure: 3.1 The buyer and seller 28
Figure: 3.2 Types of L/C form 33
Figure: 3.3 Export L/C process 37
Figure: 3.4 Types of Remittance of JBL 42
Figure 4.1: Total Imports Financing of JBL 50
Figure 4.2: Imports Financing Growth Rate of JBL 50
Figure 4.3: Total Exports Financing of JBL 51
Figure 4.4 Exports Financing Growth Rate of JBL 51
Figure 4.5 Foreign Remittance Performance of JBL 52
Figure: 4.6 Foreign Remittance Business Growth Rate 52
Figure 4.7: Earning from Import of JBL 53
Figure 4.8: Earning from Export of JBL 54
Figure 4.9: Remittance on Foreign Trade 55
Figure: 4.10 Earning percentage of Import, Export, Remittance 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 08
Table 2.3: District-wise Branch Distribution 11
Table 3.1: Exchange Rate Movement (Taka per US$) 27
Table 4.1: Import Finance 50
Table 4.2: Total Export Financing of JBL 51
Table 4.3: Import Earning & Portion of Import Income on Total Foreign 53
Trade
Table: 4.4 Export Earning & Portion of Export Income on Total Foreign Inc 54
ome
Table: 4.5 Remittance earnings & Portion of it on Foreign Trade 55
Table: 4.6 Comparisons of Import, Export, Remittance earnings 56

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