National Bank Essay Example for Free

depicted object swear EssayA enquiry design is actu every survive(predicate)y important essential for acquiring experience through learning and spreading the scope of Knowledge. I have d unmatched my research program in national brink curb, worldwide counterchange Branch. This research bailiwick is aimed at providing a comprehensive picture to the atomic number 18as of Foreign Exchange operation of issue Bank Limited. The distinguish has been divided into twelve parts. These argon- Introduction, Brief History of Banking Sector of Bangladesh, Corporate review of NBL, Foreign Exchange, Documents Used in Foreign Exchange Business, Letter of Credit (L/C), Import, trade, Foreign Remittance, Findings and Analysis, References. National Bank Limited is one of the largest commercialized Bank of Bangladesh. The main objective of the Bank is to provide all of confideing services at the doorsteps of the people. The Bank as well as participates in various social and read ing programs and takes part in implementation of various policies and promises made by the G all all overnment.National Bank Limited plays a pioneering section in handling contrary trade and foreign flip transactions. With wide ne dickensrk of branches at home and a large number of correspondent trusts worldwide, it is handling the largest volume of export-import business organization including homebound remittances. For this reason, Foreign Exchange of the Bank is very much essential. But now a days jargoning sector of Bangladesh is pang the disease of default culture which is the consequence or result of bad performance of most banks. There are three types of modes of foreign exchange market, which are- Export Financing, Import Financing and Foreign Remittance.Foreign Exchange Branch does these foreign exchange activities vastly. In this root, I mention the overall operating procedure of foreign exchange transaction of National Bank Limited. I also mention the findings o f my report and describe the recommendation to overcome the limitation. I have taken all the reason adequate to(p) care to ensure the accuracy and quality to make the report standard. And I believe that it has included all the necessary information to be relevant.INTRODUCTIOIN livestock OF THE REPORTAs a mandatory part the BBA Program, all the students of the faculty ofBusiness Studies, Premier University, Chittagong have to undergo a three month keen-sighted research program with an objective of gaining practical knowledge about current business world. After this research program each and every students have to set up a research report mentioning their activities during the research program. Ive started my research at the National Bank Limited, Foreign Exchange Branch. At the end of the research program I am submitting my research report focusing on the share of Foreign Exchange operation to the overall performance of bank especially on favorableness perspective under the super vision of Tasnim Uddin Chowdhury, Lecturer, Department of Finance, in Premier University, Chittagong.OBJECTIVES OF THE STUDYThe general objective of the study is to gather practical knowledge regarding banking organisation and operation. The research gives us a chance to relate the four year long theoretical learning of BBA Program with the reserch experience. This consists the pursuanceTo get an overall composition about the Foreign exchange Business of National Bank Limited. To apply theoretical knowledge in the practical field.To describe the organizational structure, management, background, functions and objectives of the bank and its contribution to the national economy. To achieve overall understanding of National Bank Limited.To analyze the financing systems of the bank to find out whatsoever contributing field. To examine the profitability and productivity of the bank.To acquire knowledge about the everyday banking operation of National Bank Limited.To evaluate the effec t of world recession on foreign exchange income of NBL, Foreign Exchange Branch.To understand the real management situation and try to recommend for improving existing problems.SCOPE OF THE STUDYThis study provides those scopes of knowing are the following History and performance of National Bank Limited.Terms employ in foreign exchange operationsForeign exchange operations of National Bank LimitedLiterature review.Total concept of Foreign Exchange Operation.METHODOLOGY OF THE STUDYThe report is prepared on the basic of foreign Exchange of National Bank Limited. To conduct the overall study, at first I explored the sources of Primary and Secondary information and data. Different files of the part and statement prepared by FED helped me to prepare this report. To present numerical data, I employ the Annual Report of 2008 and monthly statement of January to October 2009 of National Bank Limited, Foreign Exchange Branch. For preparing this report I have used some graphical represent ation to find out different types of analytical and interpretation.SOURCES OF DATAAs mentioned earlier, mainly primary and lower-ranking data has been used. Sometimes the customers gave some important information regarding the services of the BankPRIMARY DATAOfficial records of National Bank Limited (NBL)..Expert opinion. standby DATAMonthly Statement of NBL.Annual Report of NBL.Official Files.Selected books.Other manual information.Websites.Various publications on the Bangladesh Bank.Newspaper reports in this concern.DATA ANALYSIS AND variantBoth quantitative and qualitative analysis will be performed on the findings. The quantitative analysis will be done on the trend of export- import, harvest-time pattern of export-import, pre and post facilities provided for easing the export-import operations. Qualitative analyses will be based on the macroeconomic variables and foreign exchange policy provided by Bangladesh bank, the central bank of Bangladesh. Different statistical tools will be used for the analysis of the findings.LIMITATIONS OF THE STUDYTo provide current information and to make the report read-worthy, support from various sources is essential. In spite of having my wholehearted effort, I could non collect some information required at the time of the study. So this study is not free from the following limitation Due to unavailability of latest annual report (Annual report 2009), I have to prepare the report on the basis of annual report 2008. As a result, analysis, presentation of data may not show the existing position/present condition of National Bank Limited. For the whole research I had only 90 days, out of which I get 61 days because of late commencement of research program, which were totally insufficient. So I confront time shortage extremely. Lack of previous experience to prepare this type of report and it is totally recent to me as an intern.Foreign exchange division follows equal Customs and Practice for Documentary Credits (UCPDC ), but within this short period, I was totally stunned to understand. Learning all the banking functions within just two months was really difficult. Sometimes the officers of National Bank Limited were very busy. For this reason the personal did not co-operate me. National Bank Limited did not give me any kind of monetary support for this research program Most of the working days in NBL, I have to work in cash department to help in IPO subscription collection, so I get limited time work in other departments to have practical knowledge some other limitation ofthis report is Banks policy of not disclosing some data and information for obvious reason, which could be very much helpful.BRIEF HITORY OF BANKING empyrean OF BDEVOLUTION OF THE WORD BANKThe new-fashioneds program bank originated from Italian word Banca. Banca means long tool. In ancient time Italian Jews merchant used to do business of lending money by sitting on the tools. It is assumed that the word bank derived from t he word Banca. To meet the expense of war of 1171 one type credit certificate was launched in Italy at an interest rate of 5% it was called as Monte in Italian language and Bank in German language then German language was widely used in Italy. As a result the word Bank gradually changed to the word Banca from which the word Bank originated.THE EMERGENCE OF MODERN BANKINGThe linguistics and etymologists suggests an interesting story about banking origins. Both the old French word Banque and the Italian word Banca were used centuries ago to mean a bench or moneychangers table. This describes quite well what historians have observed concerning the first bankers, who lived more than 2000 years ago. They were money changers, situated harshly at table or in a small shop in the commercial district, aiding travelers who came to town by exchanging foreign coins for local money or discounting commercial notes for a fee in order to supply merchants with working capital. The first bankers pro bably used their own capital to fund their activities, but it was not long before the idea of attracting deposit and securing temporary loans from wealthy customers became a source of bank funding.Loans were then made to merchants shippers and landowners at judge of interests low as 6 percent per annum to as proud as 48 percent a month for the riskiest ventures. Most of the early bank was Hellenic in origin. The banking industry gradually spread outward from the classical civilizations of Greece and Rome into northern and western Europe. The early bank in Europe was places for safe tutelage of valuable items (such as gold andsilver bullion) as people came to fear loss of their asset due to war, theft, or expropriation by government. When colonies were established in newton and South America, old world banking practice were transferred .DEVELOPMENT OF BANKING IN BANGLADESHSince early British rule, the history of banking in Bangladesh grunge shows that the traditional trade-ne tworks developed before the banks invaded hobnailed areas. And the banking services have slowly flourished in Bangladesh territory. Even today, in many places, moneylenders provide credit services. Small shopkeepers and businessman use informal credit at high interest rate. Traditional mahjongs money lending business gradually declined due to expansion of bank and the micro credit programs of NGOs, reconciling banks and government agencies.PUBLIC SECTOR BANKSDuring the liberation war in 1971, the economic, political, and social system including the banking system was severally damaged. At that time, all big and medium monetary institutions except two small banks had their head office in the West Pakistan. The non-beagle owners and managers of the financial establishments that operated in East Pakistan had abandoned them. After independence in 1971, the new government had to take over management and ownership of all such institutions. The banks Nationalization Order 1972 was issu ed to nationalize banks and financial institutions (except those incorporated abroad) in order to run chaos in the field of ownership, party bureaucracy, the intelligentsia, and pressure group. By several orders the government of Peoples Republic of Bangladesh created- Six nationalized commercial banks (NCBs)1. Sonali Bank2. Agrani Bank3. Janata Bank4. Rupali Bank5. Pubali Bank6. Uttra BankOne industrial bank (BSB)One agricultural bank (BKB)One industrial development financial institution (BSRS) The bank and financial institutions which originated during the Pakistan period and were merged, and renamed and functioning after independence of Bangladesh. In the year 1983, the government allowed private sector to participate in the banking business. The Publi Bank and the Uttara Bank were denationalized in 1985, due to non profitability. This action reduced the number of NCBs to four. Such restructuring of public sector banks was in order to play their role in industry, agriculture, ex port, self employment etc. underground COMMERCIAL BANKSTaking advantage of the liberalization policy of the government regarding participation of private sector in the banking business, a number of private banks were established in and after 1983. With the emergence of private banks in Bangladesh, a agonistical situation in the sector has been created. Now there are 48 commercial banks in Bangladesh which are enlisted with Bangladesh Bank, among them four (4) are NCBs, five (5) are specialized banks, twenty nine (29) are private commercial banks and ten (10) are foreign commercial banks. The emergence of private banks has added a new dimension to the banking system in Bangladesh. The private commercial banks show a steady growth in wrong of number of branches, deposit and advances.CORPORATE REVIEW OF NATIONAL BANKHistory of National Bank LimitedNational Bank Limited has its prosperous past, excellent present, prospective future and under processing projects and activities. Establ ished as the first private sector Bank fully owned by Bangladeshi entrepreneurs, NBL has been golden as the largest private sector bank with the passage of time after facing many stress and strain. The member of the board of directors is creative businessman and international economist. For rendering all modernservices, NBL, as a financial institution automated all its branches with computer network in accordance with the competitive commercial demand of time. Moreover, considering its forth- coming future the infrastructure of the Bank has been much more to NBL. Keeping the target in mind NBL has taken forwardness branches by the wear 2000-2001. The emergence of National Bank Limited in the private sector is an important event in the banking area of Bangladesh. When the national was in the grip of severe recession, Govt. took the farsighted decision to allow in the private sector to revive the economy of the country.Several dynamic entrepreneurs came forward for establishing a ba nk with a motto to revitalize the economy of the country. National Bank Limited was born as the first hundred percent Bangladesh owned Bank in the private sector. From the very inception it is the firm determination of National Bank Limited to play a vital role in the national economy. We are determined to bring back the long forgotten taste of banking services and flavors. We want to serve each one promptly and with a sense of committal and dignity. The President of the Peoples Republic of Bangladesh Justice Ahsanuddin Chowdhury inaugurated the bank formally on March 28, 1983 but the first branch at 48, Dilkusha Commercial Area, capital of Bangladesh started functioning on March 23, 1983. The 2nd Branch was opened on 11th May 1983 at Khatungonj, Chittagong. Today we have total 103 Branches all over Bangladesh. A representative office was established in Yangon, Myanmar in October, 1996 by our bank and obtained permission from the government of Bangladesh to handle border trade with Myanmar .opportunities is being explored for but business avenues there.Now NBL is on line to establish trade and communication with the prime international banking companies of the world. As a result NBL will be able to build a strong root in international banking horizon .Bank has been drawing arrangement with well conversant money transfer service self-assurance Western union. It has full time arrangement for speedy transfer of money all over the world. Banking is not only a profit lie commercial institution but it has a public bas and social commitment admitting this true NBL is going on with its diversified banking activities NBL introduced monthly Savings Scheme, special fix Scheme, and Consumers. Credit Scheme and savings Insurance scheme etc. To combine the people of lower and middle income group. A team of highly qualified and taste professional headed by the managing Director of thebank who has vast banking experience operates bank and at the top three is an efficie nt Board of Directors for do policies.Vision of National Bank LimitedEstablishing as a top grade efficient bank through best industry of modern information technology and business activities, offering high standard client services and Proper coordination of foreign trade business in the core of their vision.Mission of national bank LimitedWith a view to achieving commercial objective of the bank, their sincere and all out efforts stay put unabated. Respected client and shareholders are attracted to us for our transparency, accountability, social communities, and high quality of clientele services.Objective of national Bank LimitedBring modern banking facilities to the doorsteps of general public through diversification of services, thereby arousing saving relish among the people. Foreign a cordial, deep rooted and farm banker customer relationship by dispensing prompt and improved clientele services. Taking part in the development of the national economy through productive develo pment of the banks resources as well as patronizing different social activities. Connecting clients to modern banking practices by the best application of improved information technology, so that they get advance to continue and feel proud of banking with NBL. Responding to the need of the time by participating in the syndicated large loan financing with like-minded banks of the country, thereby expanding the area of investment Elevating the image of the bank at home and abroad by sustained expansion of its activities.Strategies of National Bank LimitedTo manage and operate the bank in the most efficient manner to enhance financial performance and to control cost of fund. To strive for customer satisfaction through quality control and delivery of well-timed services. To identify customer credit and other banking needs and monitor their perception towards our performance in meeting those and update requirement. To review and update policies procedures and practices to enhance the a bility to extend better services to customer. To train and develop all employs and provide them adequate resources so that customer needs can responsibility addressed. To promote organizational effectiveness by openly communicating company plans, policies, practices and procedures to all employers in a timely fashion To cultivate a working environment that fosters positive motivation for improved performance To diversify portfolio both in the retail and whole cut-rate sale market. To increase direct contact with customer in order o cultivate a closer relationship Business GoalTo patronize, sponsor and encouraged games and sports, entertainment and other socio-economic activities alongside providing the best services to the client.The Future thrustFull duplex on-line BankingIntroducing more innovative products and services Opening new branchesExpansion of business network at home and abroad SMS BankingIntroduction of new liability / Asset productsCorporate CultureEmployees of NBL sha re certain common values, which helps to create a NBL culture.The client comes firstSearch for professional excellenceOpenness to new ideas new methods to encourage creativity Quick decision makingFlexibility and prompt responseA sense of professional ethicsGrowth and Development of NBLThe NBL carries out all traditional functions, which a commercial bank performs such as mobilization of the deposit, investment of funds, financing export and import business, trade and commerce and industry. The banking sector in the country faced different problems conceit the year. Even through the board and management never stopped its effort to maximize wealth, which is reflected by 143.97percent profit growth in 2007, highest ever in the last 15 years. The bank earned the 676.45 core revenue in 2007 as interest, income from investment and commission exchange earning, which who Tk. 53069 corer in the provision year. As a result the total operating profit rode to Tk. 221.51 corer in 2007 from Tk .114.68 corer in the previous year.Branches of NBLNBL, which was started at Dilkusha Branch on March 23rd, 1983, was the first major commercial Bank. In Bangladesh operating throughout the country as well as the age of the bank is only 25 years .During this period it has established total 112 branches over the country and made smooth network inside the country as well as thought the world. The number of branches as well as territory wise is mentioned in the table.