Presentation on

Foreign Exchange Operationof Janata Bank Limited

University Of Development Alternative

Presented by : Imran Hossain ID-021112087

Faculty of Business Administration

Supervised By : Krishan Chandra Shah

INTRODUCTION

The primary purpose of making this report is to learn an idea about the “Foreign exchange” operations of JANATA Bank Limited. JANTA Bank is a second-generation bank of the country and makes an industry analysis on the banking sector of Bangladesh. The main characteristics of banks are profit – earning concern organization. Generally by the word “Bank” we can easily understand that it’s refers to the financial institution deals with money transaction and Banks collect deposits at the lowest possible cost and provide loans and advances at higher cost. there are different type of banks like ; Central Bank, Commercial Banks, Saving Banks, Commercial banks, Investment Banks, Industrial Banks, Co-operative Banks etc. are the primary contributors to the country.

Mission and Vision of Janata BankMission:To be recognized as the leading

commercial bank in the Bangladesh market providing retail and corporate banking services and as a trusted and respected partner in the social and economic development

program of our nation.

Vision:To become the effective largest commercial

bank in Bangladesh to support socio-economic development of the country and to be a leading bank in South Asia

Methodology Objective

To know about foreign exchange operation of Janata Bank Limited.

To analyze the real Foreign Exchange performance of Bangladesh.

To know the Foreign Exchange Import and Export guideline, police, rules and regulation of Bangladesh.

To evaluate Foreign Exchange performance of Janata Bank.

To evaluate the successful Foreign Exchange operation of JBL.

To identify problems in foreign exchange operation of JBL. To recommend suggestion for the successful foreign

exchange operation of JBL

Foreign Exchange Business:

Foreign RemittanceImport Export

 

Foreign Exchange Accounts:

Nostro AccountVostro AccountLoro Account

Lforeign Exchangef the study

Functions of Foreign Exchange Department

Foreign Remittancerrency Remitting

Impact of Foreign Remittance

Remittance:Remittance means sending

or transfer money or money-worth from one place to another. Generally the process of remittance can be divided into two major categories:

Inward RemittanceOutward Remittance

Impact on National Economy

Impact on Social Structure

Impact on Bank Business

Remittance

Major steps of Import

Step 1 - Registration with Chief Controller of Import and Export(CCI&E) Step 2 - Determination terms of credit Step 3 - Proposal for Opening of L/C Step 4 - Application by importer to the banker to open letter of creditStep 5 - Opening of L/C by the bank for the openerStep 6 - Shipment of goods and lodgment of documents by exporterStep 7 - Lodgment of Documents by the opening Bank from the negotiating bank Step 8 – Retirement Step-9 Amendment of Letter of creditStep-10 Payment procedure of the Import Documents

Cont…

Major steps of ExportStep-1 Registration from Chief Controller of Import & Export (CCI & E)Step-2 Obtaining Export Registration Certificate (ERC)Step-3 Obtaining Export Form (EXP)Step-4 Disposal of Export Form (EXP)Step-4 Securing of OrderStep-5 Signing of the contractStep-6 Procuring the Materials Step-7 Forwarding Foreign Bills of Collection Step-8 Import Documents Associates with Export Step-9 Shipment of goodsStep-10 Procedure for collection of Export Bill

Letter of Credit is a guarantee or undertaking or commitment to the

beneficiary/exporter for making payment issued by the issuing bank on

behalf of the importer upon fulfillment of some conditions. As distance

involved in international trade, buyers and sellers do not know each

other. It is difficult for both the buyers and seller to appreciate each

others‘ integrity and credit worthiness. By opening a Letter of Credit on

behalf of buyer in favor of seller, commercial banks undertake to make

payments to a seller.

Letter of Credit

Types of L/C`s

Back to Back L/C Back-to-Back L/C is defined as a credit, which is opened at the instructions and the request of the beneficiary of the original export L/C on the strength creditRevolving L/C A revolving credit is a credit, which provides for the amount of the credit to be renewed automaticallyTransferable L/C A transferable credit is a credit, which can be transferred in whole or part by the original beneficiary to one or more ―Second beneficiaries

The Letter of Credit (L/C) Process

Foreign trade Finance

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

200000

20112012

2013

Total Import

Total Export

Remittance

Have to Improve Recruitment Process

More supportive attitude among employees

On-line banking system

Have to meet customer satisfaction

Increase service level

Computerized banking system

Recommendations JBL should provide more computers for this branch. JBL also take proper step to improve their online banking services and

provide best services to customer. JBL Credit Policy mainly focuses on Macro Economic Development which

is blessing for middle and large scale business house and industry. They should provide more loans to small and lower scale business with easy conditions.

JBL Should use Data Base Networking in Information Technology (IT) Department.

In foreign exchange department it is required to communicate with foreign banks frequently and quickly. To make the process easy modem communication media for example e-mil, Fax and win fax, Internet etc. Should be used.

CONCLUSIONThere are a number of nationalized and foreign banks operating their foreign activities in Bangladesh. Among them Janata Bank is one of them leading commercial bank. JBL has introduced a new dimension in the field of innovative and benevolent banking in our country. The bank has successfully made a positive contribution to the economy in Bangladesh. Its profit is gradually increasing. It plays a great role in International Trade etc. The bank ensures quality services to the customers. it should introduce new import and export finance especially for new investors. I hope JBL will do more work for socio-economic development besides their banking business. I hope this report provide a good guideline. I wish continuous success and healthy business portfolio of JBL.