An Internship Report On Foreign Exchange Mechanism of IFIC Bank Limited

Prepared for:
Mr. Mizanur Rahman, Assistant Professor, Dept. of Management Studies, Jagannath University

Prepared by:
Md. Maniruzzaman Roll No. 085480, Reg. No. 0802323677 Session 2007-2008 MBA Program, 2nd batch, 4th semester

Department of Management Studies Jagannath University, Dhaka

Date of submission: December 11, 2011

Letter of Transmittal

To Md. Mizanur Rahman, Assistant Professor & Internship Supervisor Department of Management Studies Jagannath University, Dhaka Subject: Submission of the Internship Report. Dear Sir, It is my pleasure to submit before you my internship report on Foreign Exchange Mechanism of IFIC Bank Limited, Nawabpur Road Branch. It is also a part of our MBA Program. During the period of internship and preparing this report, I have tried to put my best efforts to make this report a comprehensive. This report covers details various chapters like Introduction, overview of organization, practical experience gathered through internship etc. Sincerely Yours

Md. Maniruzzaman MBA program, Section- A 4th Semester, 2nd Batch Roll No. 085480, Reg. No. 0802323677 Department of Management Studies. Jagannath University, Dhaka.

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Acknowledgements

I would like to give my sincere thanks to our honorable teacher, Md. Mizanur Rahman, Assistant Professor, Department of Management Studies, Jagannath University. And furthermore, I extend my honor to Professor Dr. MD. Mosharraf Hossain (The Dean of Business Studies faculty) for his support and any kind problem solving mentality. Also thanks to IFIC Bank Limited, Nawabpur Road, Branch all of Officers they helps me to learn everyday banking task of Foreign Exchange department and special thanks to Mr. Sumon Roy, Senior Assistant Vice President and Relationship Manager and Md. Abdus Sattar Assistant Vice President. I would like to express my thanks to owe much of my career success to the support of my family. I acknowledge the loving support of my family and friends for their kind support during my studies.

And finally never enough thanks to one who doesn't want to be named.

Md. Maniruzzaman Roll No. 085480, Section - A MBA Program, 2nd batch, 4th semester Department of Management Studies Jagannath University, Dhaka

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Executive Summary

Banks play an important role in the development of a country. Bangladesh Government and Central Bank developed implemented different rules and regulation on behalf of the healthier economy. World Bank also gave his favorable eyes to restructure the banking society. Banks play an important role in the development of a country. Bangladesh Government and Central Bank developed implemented different rules and regulation on behalf of the healthier economy. World Bank also gave his favorable eyes to restructure the banking society. This report is based on the Foreign Exchange department of International Foreign Investment and Commerce Bank Limited (IFIC Bank Ltd). Nawabpur Road Branch. Internship program is the pre-requisite for the MBA Program 4th semester. Classroom discussion alone cannot make a student perfect in handling the real business situation; therefore, it is an opportunity for the students to know about the real life situation through this program. A report has to be built for the university and organization requirement. The topic of the report is Foreign Exchange of IFIC Bank Limited. The main purpose of the report becomes very clear from the topic of the report. The report discusses about the different Import and Export related functionalities and general discussion about the bank.

This report is broadly categorized in six different parts. At First chapter there is introduction where I describe the statement of the problem, objectives of the study, methodology, limitation etc. In the second chapter scenario regarding the main topic of the report in Bangladesh, Chapter three describes the overview of the bank with SWOT analysis, chapter four describe practical experience gathered through doing internship, chapter five includes findings and in chapter six conclusion and recommendations and/or suggestions for the further researchers.

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Table of Contents
Chapter SL # Contents titles Title page Letter of Transmittal Acknowledgement Executive Summary Table of Contents Introduction Statement of the research problem Origin of The Report Objectives of the Study Methodology Definitions of terms used in the study Limitation of the Study Scenario regarding Foreign Exchange in Bangladesh Introduction External Trade Remittance Balance of Payments Exchange Rate Import Payments Export Receipts Import Growth An Overview of the Organization Background Corporate Information Organization Structure Number of Branches Number of Employees Vision Statement Mission Statement Product/Services Scheme Corporate Banking Retail banking SME Banking Principal Activities General Banking International Trade Finance Credit/Loan management SWOT Analysis of the Organization: Identification of Strengths, Weaknesses, Opportunities and Threats of the organization Conclusion Action plan Practical Experiences gathered foreign exchange department of IFIC bank Ltd. Introduction Import Operation Import Categories Procedure and Mechanism of L/C Opening Lodgment of Import Bill Retirement of Import Document Shipping Guarantee Nature of Credit 36 36 37 37-46 46 47 47 49 Page No. II III IV V-VI 2 2 3 4 4 5-8 9 10 11 11 11 12 12 12-13 14 14-15 16 17 17-19 19-24 25 25 25 25 26 26 26 27-28 28-29 29-30 30 31-33 33 34

Chapter One

1.0 1.1 1.2 1.3 1.4 1.5 1.6 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.8.1 3.8.2 3.8.3 3.9 3.9.1 3.9.2 3.9.3 3.10 3.10.1 3.10.2 3.10.3

Chapter Two

Chapter Three

Chapter Four

4.0 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8

4.9 4.10 Chapter Five 5.0

Kind of Credits occurred in L/C Operation Inland L/C Operation Findings and Analysis

50-51 51 53

Chapter Six

6.0 6.1 6.2

Conclusion and Recommendations Conclusion Recommendations

55-56 56-57

End Matter References Appendix: 5 Years at a glance Financial performance of IFIC 2010 Questionnaire 58 59 60-62 63

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