AB Bank

Internship Report
Internal Analysis of Foreign Exchange Operations
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in AB Bank Ltd. [Mohakhali Branch]
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Submitted to
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Mr. Syed Kamrul Islam
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Senior Lecturer
North South University

Submitted by
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School Of Business
Fall 2010
North South University
ACKNOWLEDGEMENT
While preparing the report lots of people helped me on various occasions. In this regard, I
would like to give special thanks to my Internship Supervisor Mr. Syed Kamrul Islam, He
always guided me to bring in something original for the internship report and encouraged
to work hard to produce a quality report on my three months internship program. Again I
thank him to allow me work on such a challenging report. After that I owe my special
thanks to my Internship Supervisor at AB Bank Ltds Mohakhali Branch, Branch Manager
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Mr. Sayed Farhad Alam for being so understanding and helpful to complete my internship
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and advices in this regard.
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I am grateful Mr. Moyaz Khan (In-charge, Foreign Exchange department), Mr. Nasimul
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Haque (senior officer, Import Division), Mr. Imran Mohammdullah (Officer, Import
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Division) and Mr. Ashif Haque Khan (Officer, Export Division) for helping me with
feedback.
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relevant data and information. I also thank all the survey respondents for their valuable
04 January 2010
To
Mr. Syed Kamrul Islam
Senior Lecturer,
School of Business,
North South University.
Subject: Submission of BUS 498 Internship Report.
Dear Sir
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authorized me to prepare as Internship Report.
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In the following pages, I have presented BUS 498 Internship Report, which you had
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This internship at AB Bank Ltd has given me an opportunity to get hands on

experience about the foreign exchange operations in AB Bank Ltd. Also it has
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provided me the scopes to apply my learning of the theories in a corporate
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environment. I am thankful to you and AB Bank Ltd for giving me this opportunity.
I enjoyed preparing the report though it was challenging to finish within the given
time. In preparing this report, I have tried my level best to include all the relevant
information and tried to identify different characteristic of AB Bank Mohakhali
Branchs foreign exchange department.

Thank you.
Sincerely,
M Maruf Hossain
ID# 061 545 030
Executive Summary
Foreign Exchange section of any bank deals directly with the international business
activities. Therefore as an International Business major I worked on creating this report as
an internal evaluation of Foreign Exchange departments core processes. I have completed
my 3-month internship in AB Bank Ltds Mohakhali branch. This report gives a brief
overview and evaluation on the branchs Foreign Exchange Department.
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In this report I have covered the workflow of processing letter of credit. I have found out
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that this particular branch almost perfectly completes the processes for each letter of credit.
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In addition this report includes a survey that was conducted among the employees of this
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department to find out their evaluation on the departments various functional areas. Overall
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the responses are positive, but I feel AB Bank top management still has some major things
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to look into to ensure continuous performance growth.
Furthermore this report includes a brief analysis on foreign exchange departments financial
performances over last couple of years. The analysis has demonstrated satisfactory
performance over this period.
Finally I have included my recommendation based on the findings from the researched areas
and my observation of 3 months.
Table of Content
Title
Page No.
01
1.0 Introduction
01
1.2 Objectives of the Study
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1.3 Significance of the Study
02
1.4 Methodology
02
1.5 Scope and Limitations of the Study
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1.6 Limitations of the Study
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1.1 Origin of the Report
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2.0 Company Profile
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2.1 Background of the Company
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2.2 Mission, Vision and Objectives
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2.3 Organization Structure
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2.3.2 Branch Organogram
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2.4 ABBLs Services and Various Functional Departments
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2.5 ABBLs Competitive Conditions in Banking Industry
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2.3.1 Managerial Hierarchy in ABBL
2.5.1 Competitive Analysis Using Porters Model
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2.5.2 SWOT Analysis
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2.6 Future Directions
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3.0 Performance Evaluation
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3.1 Hypothesis
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3.2 Methodology
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3.3 Step-by-step L/C Processing Flow
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3.3.1 Letters of Credit (L/C)
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3.3.2 Parties to a Letter of Credit
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3.3.3 Typical Flow of Commercial Letter of Credit Processing
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3.3.4 ABBLs role
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3.3.5 Document and Information Preservation
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Title
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3.3.6 Updating L/C database on Bangladesh Bank server
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3.4 Internal Management Survey Analysis
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3.5 Financial Performance Analysis
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3.5.1 Earning from L/C
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3.5.2 Budgeted Vs Actual Performance
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3.5.3 Growth Rate Over Years
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5. Conclusion
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4. Recommendation
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Appendix
1.0 Introduction
1.1 Origin of the report
This report is an Internship Report prepared as a requirement for the completion of the BBA
Program of School of Business, North South University.
Ive completed working in foreign exchange department in AB Bank Mohakhali branch as an
intern. AB Bank Limited is one of the most reputed banks in Bangladesh. With nation-wide
active presence, it plays a significant role to mobilize commercial activities of the country. As
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a second-generation bank it has been dealing with foreign transactions since beginning.
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Foreign exchange section of any bank deals directly with the international business activities
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(i.e. L/C is an essential part of export/import of a country]. Therefore as an International
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business major it was a pleasure to get inside this core process. So in this report I have
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analyzed the overall performance of foreign exchange department.
1.2 Objectives of the study:
Broad objective:
It will be an internal evaluation of the foreign exchange department of ABBL

Mohakhali Branch.
Specific objective:
To see the difference between theoretical and practical aspects of the process
To get the employees insight of the L/C process
To measure the gap between expected and actual performance to meet goals
Internal Analysis of Foreign Exchange Operations in AB Bank Ltd. [Mohakhali Branch]
1.3 Significance of the study

My analysis and findings will definitely help current management of AB Bank and all other
stakeholders in these particular ways:
They will have neutral evaluation of the working processes
They will get to know the employees evaluation on the management
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1.4 Methodology
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Data collection for the project basically depended on the primary data along with secondary
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data sources as much as possible. In order to construct the theoretical part, the people working
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in AB Bank, especially in the Foreign exchange department were consulted. Primary data was
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collected through questionnaire surveys and some interviews as required.
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For secondary information I researched relevant data and stats from the branchs info section.
Also, I looked into published data sources.
1.5 Scopes of the study

Mohakhali branch of ABBL is actively serving people with all its major departments such as
Credit, Accounts, Cash and Foreign Exchange etc. Also, there are sub-divisions inside these
departments. As an intern, I have spent majority of my time particularly in Foreign Exchange
Department. So, I decided to focus on analyzing import and export L/C processing only. This
report does not include analysis on foreign remittance transfer.
Also, the report just gives brief overviews of the services offered by other departments of the
branch. Detailed working processes or evaluation of these departments are not included.
1.6 Limitations of the study

Some limitations of this study which are discussed below:
Result that appear after conducting this study may not reflect the same situation for
all the other branches of ABBL as this study is only based on the opinions of
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respondents of one particular branch
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The survey may not reflect the true intention of the employees.
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This research may not contain the actual scenario of the respected topic as the
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sample size is not that large. The reason is that this department has only about 25
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employees who are directly or indirectly involved with Foreign Exchange activities.
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Due to time limitation many aspects could not be discussed in this study.
It was rather difficult to manage and convince the employees to take part in the
survey. It was often asked to take the data from the internal source of ABBL which
the management was reluctant to share stating it was confidential.
2.0 Company Profile

2.1 Background of the company
AB Bank Limited, the first private sector bank was incorporated in Bangladesh on 31st
December 1981 as Arab Bangladesh Bank Limited and started its operation with effect from
April 12, 1982.
Bangladesh Government adopted a new policy in 1981 to allow private sectors initiative in
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bank formations. A group of Bangladeshi entrepreneurs thus proceeded to establish the first
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bank in the private sector with the assistance and support of renowned Dubai based Galadari
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family. A Foundation was laid for the formation of a joint venture bank with Dubai Bank Ltd,
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thats major share holders were the Galadari Brothers. The new bank was named Arab
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Bangladesh Bank Ltd. It was incorporated in Dhaka on 31 December 1981 and it commenced
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its banking business from 12 April 1982. Mr. M. Matiul Islam was, made the first chairman of
the bank and Mr. Hafizul Islam was chosen as Managing Director.
In 1986, the Union Bank of the Middle East Ltd. (LIBMR) inherited the shared of Dubai Bank
Ltd. and continued as a shareholder till early part of 1987 when they decided to offload their
invest in Bangladesh and concentrate their activities in the U.A.E. With necessary approvals of
the relevant authorities including Bangladesh Bank, the share held by them in the company
were transferred to Bangladeshi shareholders.
During the last 28 years, AB Bank Limited has opened 77 Branches in different Business
Centers of the country, one foreign Branch in Mumbai, India and also established a wholly
owned Subsidiary Finance Company in Hong Kong in the name of AB International Finance
Limited. To facilitate cross border trade and payment related services, the Bank has
correspondent relationship with over 220 international banks of repute across 58 countries of
the World.
In spite of adverse market conditions, AB Bank Limited which turned 28 this year, concluded
the 2008 financial year with good results. The Banks consolidated profit after taxes amounted
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2007 to stand at over Tk 8,400 cr as at the end of 2008.
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to Taka 230 cr which is 21% higher than that of 2007. The asset base of AB grew by 32% from
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The Bank showed strong growth in loans and deposits. Deposit of the Bank rose by Tk. 1518
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cr ie. 28.45% while the diversified Loan Portfolio grew by over 30% during the year and
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recorded a Tk 1579 cr increase. Foreign Trade Business handled was Tk 9,898 cr indicating a
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growth of over 40% in 2008.
The Bank maintained its sound credit rating in 2008 to that of the previous year. The Credit
Rating Agency of Bangladesh Limited (CRAB) awarded the Bank an A1 rating in the long
term and ST-2 rating in the short Term.
2.2 Mission, vision and objectives

Vision Statement
To be the trendsetter for innovative banking with excellence & perfection
Mission Statement
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To be the best performing bank in the country
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Objective
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To exceed customer expectations through innovative financial products & services and
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through dedicated workforce.
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establish a strong presence to recognize shareholders' expectations and optimize their rewards
2.3 Organization structure

2.3.1 Managerial hierarchy in ABBL
In general, the management hierarchy of ABBL is as following:
Managing Director
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Assistant Vice President
Senior Principal Officer
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Senior Assistant Vice President
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Vice President
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Senior Vice President
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Executive Vice President
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Senior Executive Vice President
Deputy Managing Director
Principal Officer
Senior Officer
Officer
Trainee Officer
2.3.2 Branch Organogram
Manager
General
Foreign
Credit
Department
Teller
Credit Risk
Credit
Service
Operations
Management
Administration
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Customer
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Credit
Accounts
Exchange
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Recovery
Export
Banking
Import
Remittance
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Monitoring &
Compliance
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Clearing
2.4 ABBLs Services and Various Functional Departments

Types of Banking Service:
ABBL is always ready to provide all types of banking as the different needs of different
clients. This bank provides all services through rules and regulations. The different categories
of banking that ABBL offers are as follows:
Retail Banking:
The retail banking comprises the domestic braches network with the specialized
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customer credit, real estate finance. Retail banking deals with the banking service to the
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individuals. ABBLs retail banking strategy is aimed at keeping as closely in tune with
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the customers needs as possible and further improving the quality of advisory services.
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As a result, ABBL offers different product ranges to different target groups. In this
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banking individuals may their personal accounts like Current Accounts, Savings
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Accounts, FDR Accounts, and STD Accounts etc.
Institutional Banking:
ABBL offers various services to various organizations, shipping airlines, contractors,

schools, colleges Universities, doctors. The services include Deposit services, Current
accounts in both as foreign currencies, Local and Foreign Currency remittance etc.
Commercial Banking:
Being a commercial bank ABBL offers a wide variety of commercial banking service
to the respected clients as much as possible. Basically the services are like trade
financing, issuing import L/Cs, investment advice, project finance opportunities etc.
Correspondent Banking:
The bank has already established Correspondent Banking arrangement with the leading
international banks covering important cities and countries.
International Banking:
ABBL is equipped with modern technology & provides following international banking
service:
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Plays vital role in import, export and other foreign currency of the country.
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Renders fastest service to the exporter importer through its SWIFT service.
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Offers competitive price for exporter and importer.
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Provides support to the exporter and importer.
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Uploads its commitments in international payment.
Islami Banking
To provide the Islamic banking services in accordance with the principles of Islamic
Shariah, ABBL has established Islamic banking wing. The goals and objectives of
Islamic banking Wing are as follows:
To facilitate the Islamic banking system in the country
To create new entrepreneurs and to arrange required finance for them
To play effective role for socio economic development of the country
To give assistance in launching welfare oriented economic
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Deposit Services:
As a commercial bank the business philosophy of ABBL is to provide innovative banking. The
future growth of the banking industry and its profitability depends on customer satisfaction. So
if any financial institution can prove a satisfactory service success is indisputable. In this
connection services may be divided as followings:
Foreign Currency
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Local Currency
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Loan / Advances:
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AB Bank is extending credit facilities in all sectors covering commercial credit lines to the
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business community. In addition to that other facilities like consumer credit, student loan
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scheme, PC loan, loan against DSC, supervisory credit to the farmers, weavers in the
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agricultural sector etc. to be extended for development of the country.

In this area ABBL specially offers two types of schemes for different persons. Anybody can
not be the member with the bank. Everybody must be come through the official rules and
regulations to take loan. These are:
Consumer Credit Scheme
Personal Loan Scheme
Jewelry Loan Scheme
Education Loan Scheme
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Treasury and Dealing Room (service):

ABBL has got its independent treasury and dealing room with Reuters Dealing System that
does ensures following benefits:
Provides daily exchange rate buying and selling.
Forwards cover to competitive price.
Deals in foreign currency with Central Bank, Commercial Banks and other potential
clients
Enables to buy and sell third currency with all lending banks worldwide.
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Covers exchange fluctuation risk by providing competitive premium.
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Clearing and Collection Services:
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The bank also provides clearing and collection service to the clients. It is the service that the
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clients submit another banks cheque to collect money from that bank through first
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clearinghouse. If any cheque is dishonored by any case it must be informed to the client
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immediately. This service is two categories:

Inward Bills Collection
Outward Bills Collection
Fund Transfer Service:

There are four types of fund transfer service generally provided by PBL. They are:
Payment Order
Demand Order
Telex Transfer
Mail Transfer
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2.5 ABBLs Competitive Conditions in Banking Industry

ABBL is a second-generation bank group in the country, following the first-generation
government-owned banks. Its appearance was in a shakeout environment, which is now
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Growth
Mature
Declining
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Embryonic
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moving toward a matured environment (according to industry lifecycle)
Current position
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Starting point
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2.5.1 Competitive Analysis Using Porters Model
Rivalry among Competing Banks

Rivalry among the banks is high. The banking sector in Bangladesh comprises four types of
scheduled banks. It is dominated by the four nationalized commercial banks followed by foreign
commercial banks and private commercial banks. All of the major rivals are offering very much
similar products. Banks of Bangladesh today are trying to provide best customer services, lowering
their service charges and trying to include new products and services in their product portfolio.
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Also some of the new private banks are snatching the total deposits and total advances belonging to
the nationalized commercial banks and each other by providing extra benefits. Everyone is moving
towards low cost and better services. Banking business is now more or less depending on personal
relationship of the bankers. Whenever a good banker changes the bank, he/she takes some of his
loyal employees with him/her to the new one where he is going to join. This is a common trend in
Bangladeshi banking industry. So, in terms of rivalry, ABBL has to be very cautious as
completion is intense.
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Potential Entry of New Banks
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The banking industry is a highly regulated industry and entry into this industry is not easy
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because it requires huge capital and fulfillment of legal requirements. Bangladeshi financial
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institutions are highly regulated by the Central Bank (Bangladesh Bank).
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The potential entry barriers of this industry are paid up capital, competition, core deposit and
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business. Considering all the facts we can say that the entry barrier in the banking industry is high
and ABBL has an advantage here.
The Bargaining Power of the Buyers

Once only the big business people were the main customers of the banks, but now people from
different classes are banking with different banks. The consumers credit schemes, personal
loans, credit cards, consumer loans etc. have been launched targeting the middle class and
lower-middle class.
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Most banks tend to maintain relationship banking, which carefully maintains vigorous
relationship with customers and try to provide more than what the customer wants. Switching
cost is also low, because a client can easily get similar credit facility from another bank with
better offers.
Bargaining power of buyers is high in this industry which is always a concern for ABBL,
just like other banks as well.
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The Bargaining Power of the Suppliers
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Depositors are considered the suppliers in the banking industry. Depositors are regarded as the
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suppliers because they provide surplus or additional fund to banks and then the banks use these
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fund to give loans and advances. It is the depositors surplus money that is transferred to those
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who are in need of this money. The banks act as an intermediary here.
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The power of supplier is not overwhelming but they can influence interest rate based on the
supply of the fund. People from all sorts of life have to deposit their money in any bank.
People are oblige to come to the bank if they want to keep their money in a risk less and safe
place, on the other hand the banks have to survive on their money so the power of supplier is
moderate in this industry.
Currently, however, the bargaining power of suppliers has increased and banks are often
suffering from liquidity crisis. So, for the time being, bargaining power of suppliers is
significant
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Substitute Products
Non-Banking Financial Institutions offer financial products and services that are similar to
what the banks offer. There are nowadays lots of financial institutions in the country that are
performing some of the activities similar to banks such as providing loans and leasing
facilities. These are leasing companies, co-operative banks, life insurance companies etc. In
Bangladesh there are 28 Non Banking Financial Institutions. Of them 12 are leasing
companies, 6 are investment finance companies, 2 are in housing loans and the rest carry out
other sort of activities.
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Non-Banking Financial Institutions are expected primarily to fill in the gaps in the supply of
financial services that are not normally provided by the banking sector. The trend is that the
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Non-Banking Financial Institutions would continue to progress and assume a significant role in
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addressing the development strategies of the country by complementing directly with the
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banking sector to meet financing requirements of the changing economy.
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ABBL thus have to compete with these substitute options customers have.
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2.5.2 SWOT Analysis

Environmental Scan
Internal Analysis
Strengths
External analysis
Opportunitie
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Weaknesses
Threats
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SWOT MATRIX
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Strengths
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Accountable Corporate Governance:
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Good Corporate Governance is an issue of vital importance to the Board and
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Management of AB Bank. The Board of Directors, as the apex level of authority, is
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responsible and accountable for the overall direction and is ultimately answerable to
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regulatory authorities and shareholders for the activities, strategies and performance of
the company.
AB Bank board has a formal schedule of matters especially reserved for its decision
including corporate strategy, approval of budgets and balance sheet, annual financial
results, Director appointment, proposal for dividend, approval of major corporate
transactions and credit proposals beyond the delegated business power of the
management.
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Experienced Senior Management

The senior management of the bank is responsible for promoting the highest level of
business ethics and integrity. Their aim is to create and foster a culture throughout the bank
that emphasizes and demonstrates the importance of maintaining high business ethics and
close relationship with customers.
Quality Customer service
Customers are the focal point of all the banks activities. AB Bank is committed to its
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customers for excellent, innovative and speedy solutions across all customer segments. The
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bank provides a full range of banking services to small and medium size companies and
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also to private individuals and entrepreneurs. They have expertise corporate banking, retail
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Compensation Package
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banking and trade finance.
AB Bank maintains an equal opportunity in recruitment, training and promotion of all

employees regardless of gender or ethnic origin. The bank tries to pay all its employees the
best compensation package. Accordingly, AB Banks salary structure is revised upward on

a regular basis. The bank also keeps employees informed about the progress of the business
and their part in it for their constant commitment to the bank. They also encourage the
development of the employee involvement in the bank through formal and informal
meetings.
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AB Bank Shares
Shares of AB Bank are one of the most actively traded stocks on the Dhaka Stock
Exchange (DSE) and Chittagong Stock Exchange (CSE). The continual improvement in the
banks underlying profitability is the reason for trust and confidence of investors on the
bank.
Social Welfare
AB Bank has fully commitment towards serving the communities in which it operates. The
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bank believes that healthy economy and sound banking go together. A chunk of the banks
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annual profit is being given to the AB Bank Foundation for social welfare. The main
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objective of the foundation was to invest part of the banks profit in poverty alleviation and
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Online Banking Services
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community welfare.
AB Bank is among the few banks in Bangladesh, which provides the online banking
services to its customers. By using the modern banking services, AB Bank customer can
withdraw or deposit an amount of cash under the AB Bank account no matter in which
branch the actual account exist. This service gives its customer huge flexibility. More and
more urban customers are becoming attracted to this service day by day.
Training and Development

AB Bank has a personnel-training society with good resources. They give regular training
to the officer of both middle and lower levels. Again if there is any strategy or technology
change, there will be special training program arranged based on individual needs.
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Weaknesses
No feedback from bottom level employees
The bottom-level employees and even the mid-level managers at AB Bank dont take part
in the decision-making process. So the information flow is mostly one way. Though AB
Bank has some unofficial way to collect information from the bottom level employees, but
it is not effective at all.
High emphasize on fixed deposits
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AB Bank gives high emphasize on fixed deposits every year, which means that they always
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end up paying high interest expense for their deposit mix. Certainly, this will decrease their
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dealing spread and keeps them always in pressure. So, their cost of goods sold is very high
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Problem with Attitude
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which is not very good for any company in this competitive market.
The front desk employees are often found not to be too keen on taking care of their
customers. Though they have a long employee line in every branch, their loyalty to the
company and their ethics level are not very satisfactory. Many of the employees have been
found to limit thinking to their own interest only, which indicates that there is problem with
their attitude. Some of them create unofficial groups through which they solve each others
problem and support each other to achieve their personal goals, not too much concern
about their personal interest.
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Less emphasis on advertising through the electronic media

AB Bank does not promote their brand or products on a regular basis. They seem to be over
confident over their companys publicity. They sometimes see it as an extra expenditure.
They also dont do much electronic media advertising. On the other hand competitors likeDutch Bangla Bank, Brac Bank and many others do the opposite by frequently coming up
with creative ads in electronic media. This is a big weakness for AB Bank, which may
prove to be very big mistake in the future.
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Extra large number of employees
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AB Bank currently has quite a big number of employees compared to its capabilities. This
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decreases the employees individual efficiency as well as effectiveness. In addition to that,
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many of the employees are not too loyal and responsible as they are expected to be at each
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and want it to be done by others.
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level. There is a tendency that middle level managers want to avoid their responsibilities
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Opportunity
Goodwill
AB Bank has quite a strong market image as a second generation bank. Local people know
AB Bank as a center of trust and professional where local expertise use to serve. If they
expand their business and utilize this strength as more diversified business opportunities,
they can create even more stronger image in the country.
Mobile telephone bill collection
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As telecommunication industry is expanding with an startling rate recently, AB Bank could
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maintain good business relation with those telecommunication companies. They can look
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forward to make some mutual agreement of responsibility of bill collections. This will give
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them more liquid money, which would boost up their cash requirement.
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Expanding the business area
AB Bank could also boost the number of branches to take advantage of increase demand
among the existing customer with better services and thus generate more net profit. In
recent years the bank has opened al lot of new branches, which is a good sign of
improvement and also a commendable strategy.
Premium Service Banking

AB Bank can improve its customer service by tailoring the individual business needs. This
service enhancement collectively will allow a customer to manage their business finances
and cash resources more efficiently and conveniently. The services like Internal Analysis of Foreign Exchange Operations in AB Bank Ltd. [Mohakhali Branch]
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Express payments
Foreign Exchange and Money market information
Auto Fax Report
Hotline (Your single point of contract)
Inward remittance information services
More efficient brokerage house
Globalize the Business
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As the bank has a strong business brand image, it holds a great opportunities to globalize
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their business more extensively. They can arrange more foreign correspondent banks or by
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establishing more foreign branches as the foreign branches have better and big business
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opportunities.
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Upgrading the Online banking service
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AB Banks online banking service is not up to the standard of the service compared to
multinational banks. They usually serve the service based on the historical data, not real
time basis. So, the bank should take initiative to add some additional services for their loyal
clients. This will give them better opportunity to acquire more market share.
Expanding its network outside Dhaka and Chittagong

The bank has not been effective in increasing the number of branches outside Dhaka and
Chittagong. Most of AB Banks branches are targeted at the city people only; they have not
concentrated of the rural people too much. Thats why the company could not capture a
large portion of the market as well as market share. The authority of the bank needs to take
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this into consideration not only for them but also for the poor rural people. After all there is
question of ethics come in every steps of business.
Governments changing attitude towards Private Sector Development

The government is favoring private sector investment, which is good for the AB Bank, as
they can now expand their business with the favoring rules and regulations of Government
of Bangladesh. This kind of government support will lessen their problems. AB Bank is a
local private bank and it holds more diversified opportunities to do business on their own
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-N
SU
.C
interest. They always can expect positive feedback from government.
25
Threats
Fierce Competition
As the banking industry of Bangladesh has promising prospects in, AB Bank is facing
strong competition the entrance of new potential competitors. The second-generation banks
like- Dhaka Bank, Dutch Bangla Bank and Southeast Bank re the main competitors for AB
Bank. Also foreign bank operations in Bangladesh are also taking a big portion of market
share. These foreign banks have successfully created better market image than those of
SU
Political Interference and Government Regulations
.C
local banks in Bangladesh.
-N
AB Bank is facing political interference in big loan sanctioning and also there is to some
:E
extent unethical recruitment of employees. Also there is 45% tax rate for all financial
ol
le
ct
ed
Fr
om
institutions, which is very high and also a real threat for the growth of the company.
Highly Capital Reserve Requirement imposed by the Central Bank

If there is liquid money crisis the market, AB Bank will find it hard to manage its capital
reserve requirement. As Banking Law Act 1991, Bangladesh Bank is regulated the capital
requirement not less than 9%. And if for some reason the bank fails to meet the reserve
requirements then the consequences and sanctions will be severe.
Decreasing banking business area

Nowadays banking businesses are being narrowing down and its services and products are
also diversifying in other sector of the financial market. Few banking services are being
done by insurance companies, leasing firms, house building loan companies and so on. So,
26
banks are now surviving by doing general banking, which is already threat and can be
bigger in future. AB Bank management should start to think about this issue more closely
and have to take necessary steps.
The Central Bank changing the interest rates

It is the Central Government who changes the interest rates. They either increase or
decrease it depending on the economy according to the policies they want to
implement. And whatever changes the Government makes the banks of Bangladesh
.C
have to abide by it and the amount deposits received by banks was significantly
SU
reduced as people were now investing in other non-banking financial institutions
-N
and the stock market. Also peoples tendency to take loans increase as the interest
:E
charge on loans was also reduced. But in the recent days, due to pressure from IMF
Fr
om
and World Bank the Central Bank is going to increase the interest rates.
ol
le
ct
ed
It is not up to the banks to decide what interest rate they will offer on the deposits.
In fact it is the Central Government that makes that decision for them whether the
banks like it or not. Also if the Central Government comes up with additional
regulations that will mean more costs for the banks to maintain them.
Unstable political environment of the country

The political environment of Bangladesh is quite unstable and it affects the Industry from
performing efficiently.
In Bangladesh where the political environment is absolutely
unpredictable the external forces constantly keep on changing. For instance, a sudden call
of Hartal or strike might end up with the cancellation of the events. Thus, there is an
enormous possibility of incurring a huge loss.
27
2.6 Future direction

AB Bank plans to expand its operations in the investment banking in the following areas in
near future:
Islamic Capital Market Products
Processing
Islamic Capital Market Products
Supporting
going
to
be
.C
prepared
infrastructure
Status
Business Area
They are planning to launch and manage
SU
Asset Management / Mutual Fund
ol
le
ct
ed
Fr
om
:E
-N
Mutual Fund in future.
28
3.0 Performance Evaluation
3.1 Hypothesis
The foreign exchange department of AB Bank Mohakhali Branch has a good management
and they are doing okay to meet targets.
ol
le
ct
ed
Fr
3. Financial report evaluation
:E
2. Survey analysis
om
1. Step-by-step L/C processing flow
-N
I used 3 criteria for performance evaluation:
SU
.C
3.2 Methodology
For survey, my samples were the all the employees of ABBL Mohakhali Branchs foreign
exchange department employees who are directly or indirectly involved with the process. I got
total 24 people to participate in the survey.
29
3.3 Step-by-step L/C Processing Flow

3.3.1 Letters of Credit (L/C)
Letter of credit is an instrument issued by a bank to a named party which substitutes the banks
creditworthiness for that of its customer. The letter of credit states the banks willingness to
guarantee its customers credit and the banks conditional obligation to pay the party named in
the letter of credit. In a letter of credit transaction, banks deal only with documents; they
SU
-N
Revocable or Irrevocable Letter of Credit
.C
have nothing to do with the goods.
:E
A revocable letter of credit is one that can be amended or canceled by the issuing or opening
om
bank at any time without prior notice to, or agreement of, the beneficiary. It is seldom used.
Fr
An irrevocable letter of credit is one that is a definite commitment by the issuing bank to pay,
ol
le
ct
ed
provided the beneficiary complies with the terms and conditions of the letter of credit. An
irrevocable letter of credit cannot be amended or canceled without the consent of the issuing
bank, confirming bank (if the L/C is confirmed), and the beneficiary.
Commercial Letters of Credit

A commercial letter of credit is used as a payment method in conjunction with the movement
of goods.
A commercial letter of credit is an instrument that states the banks obligation to pay the
beneficiary upon presentation of conforming documents evidencing that goods have been
30
shipped. ABBL only pays the beneficiary if the required documents presented are in
accordance with the terms and conditions of the letter of credit.
The same commercial letter of credit can be viewed as either an import or an export letter of
credit, depending on the customers role in the trade transaction. For the applicant (importer or
buyer), it is an import letter of credit; for the beneficiary (exporter or seller), it is an export
letter of credit.
SU
.C
3.3.2 Parties to a Letter of Credit
The party that arranges for the letter of credit to be issued
Beneficiary
The party named in the letter of credit in whose favor the

letter of credit is issued.
Issuing or
opening
bank
ol
le
ct
ed
Fr
om
:E
-N
Applicant
Advising
bank
Applicants bank that issues or opens the letter of credit in

favor of the beneficiary and substitutes its creditworthiness
for that of the applicant
An advising bank may be named in the letter of credit to

advise the beneficiary that the letter of credit was issued.
Paying
bank
The bank nominated in the letter of credit that makes payment to

the beneficiary without recourse, after determining that documents
conform, and upon receipt of funds from the issuing bank or another
intermediary bank nominated by the issuing bank.
Confirming
bank
The bank which, under instruction from the issuing bank,

substitutes its creditworthiness for that of the issuing bank. It
ultimately assumes the issuing banks commitment to pay.
31
3.3.3 Typical Flow of Commercial Letter of Credit Processing

1. The applicant (buyer or importer) initiates the request for a letter of credit.
2. The issuing bank (opening) issues the letter of credit and forwards it to the beneficiary directly or
transmits it to the advising bank.
SU
.C
3. The advising bank authenticates and presents the letter of credit to the beneficiary. If the issuing
bank nominates the advising bank to be its paying agent, the advising bank may also become the
paying bank. The issuing bank may also request that the advising bank add its confirmation to the
letter of credit.
-N
4. The beneficiary ships the goods.
Fr
om
:E
5. The beneficiary forwards the documents required under the terms and conditions of the letter of
credit to the paying (confirming) bank.
ol
le
ct
ed
6. The paying (confirming) bank examines the documents to ensure compliance with the terms and
conditions of the letter of credit. If the documents comply, the paying bank receives funds from the issuing
bank before releasing payment to the beneficiary.
7. The paying (confirming) bank forwards the documents to the issuing bank. Upon receipt, the issuing bank
reexamines the documents to ensure compliance with the terms and conditions of the letter of credit.
8. The issuing bank debits the applicants account.
9. The issuing bank releases the documents to the applicant.
32
The commercial letter of credit flow is illustrated here:
BENEFICIAR/
SELLER/
EXPORTER
APPLICANT/
BUYER/
IMPORTER
(4) Transportation of goods
Documents
(5)
Advice of
L/C
Money
(8)
Money (8)
Application
for LC
Documents
(9)
(1)
(3)
ADVISING
BANK/PAYING
(CONFIRMING)
BANK
ISSUING/
OPENING
BANK
(6) Money
(7) Documents
Fr
om
:E
-N
SU
.C
(2) L/C
ol
le
ct
ed
My observation on the workflow:
ABBL officials are very careful about the relevant papers and documents. They say the margin
of error is absolutely zero here as the deal with only the papers, not the actual products. So they
are not afraid to send discrepancy notice to the parties for even the slightest of errors in paper
or presented information.
Also officials are always busy making sure the payment is made or received in due time.
33
3.3.4 ABBLs role

A bank may take on more than one role in a single letter of credit transaction. At least two
banks are involved in most transactions the bank in the applicants country and the bank in
the beneficiarys country. However, it is not unusual to find three, and sometimes four,
different banks participating in one transaction. ABBL usually has single role [for its
Bangladeshi party] in any import or export.
However, as ABBL has presence in India and the UK, occasionally it may assume multiple
.C
roles in a single transaction.
SU
This L/C process presents a number of advantages and potential risks to the applicant and
om
:E
-N
beneficiary involved. Although advantages are so many, risks are often troublesome.
Assurance that payment
ol
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ct
ed
APPLICANT
Fr
Advantages
Potential Risk
Merchandise not as
will only be made upon
represented in
beneficiary s compliance with
documentation
L/C terms and conditions
BENEFICIARY
Mitigation of commercial
and country risks, if credit is
Non-compliance with L/C

terms and conditions
confirmed
Currency conversion
approved before goods
shipped
34
Collection time minimized
Elimination of foreign
exchange risk for L/C issued
in currency of beneficiary s
country
AB Bank Ltd.
Fee-based revenues
(Risks may vary
Cross-sell opportunities
Issuing Bank credit risk of

the applicant and operational
depending on
Advising Bank operational
.C
bank role)
risks
SU
risks
ol
le
ct
ed
C
Paying Bank operational

risks
Confirming Bank credit
risk of the issuing bank,
Fr
om
:E
-N
operational risks, and country

risk of the issuing bank s
country
Negotiating Bank
operational risks; credit risk
of the beneficiary
35
3.3.5 Document and Information Preservation

In each step of the workflow, the BBL server is updated with latest status and figures. And
once the L/C is processed and all the payments are made, all the associated documents [hard
copies] are preserved in folders. These documents include:
1. L/C Opening Papers
EXP Form [Date-wise]
ii.
Letter of Undertaking [4 copy]
iii.
LCA form
iv.
Application Agreement Form
v.
Insurance Money Receipt + Cover Note + Policy
vi.
Proforma Invoice / Indent
vii.
L/C Opening Application / Client Forwarding / Request Letter
ol
le
ct
ed
2. Credit Report
Fr
om
:E
-N
SU
.C
i.
3. L/C
SWIFT 799 / 999 Or D&B BIR
i.
Issue of Documentary Credit SWIFT copy
ii.
Debit Advice
4. PSI Request [LC & for each amendment]

i.
Application
ii.
PSI Form [Prescribed]
iii.
TIN certificate
36
5. Amendments
i.
SWIFT copy
ii.
Clients Request Letter
iii.
Debit Advice / Advice of documentary credit
6. CRF [Clean Report Finding] of PSI report
7. Shipping Guarantee
Forwarding letter [In ABBL letter-head paper]
ii.
Commercial Invoice, Packing List / Certificate of Origin / Bill of Lading / Airway
SU
.C
i.
:E
-N
Bill /Truck Report / Courier Report /Delivery Challan / Others
om
8. Shipping Documents
Foreign Banks forwarding / Cover letter / Remittance Letter
ii.
Bill of Exchange
iii.
Commercial Invoice
iv.
Packing List
v.
Bill of Lading / Airway Bill /Truck Report / Courier Report /Delivery Challan
vi.
Shipping Companys Certificate
vii.
Certificate of Origin
viii.
Beneficiarys Certificate
ol
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ct
ed
Fr
i.
ix.
Shipment Advice
x.
Pre-shipment / Inspection Certificate
xi.
Certificate
xii.
Request for Acceptance / Payment
37
xiii.
Installation Certificate
xiv.
Clearance of Consignment
xv.
Warranty and Guarantee Certificate
xvi.
Covering Note
xvii.
Prottoyon Potro [If available]
9. Advice of Refusal / Discrepancy Notice [Acknowledgement and Hard Copy]
10. Arrival notice of Client/Applicant
11. Client Letter for Releasing Documents Or Request to Retire Shipping Documents
SU
.C
12. Advice of Acceptance

13. Debit Advice
:E
-N
14. Purchase of Foreign Currency
ol
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ct
ed
16. Loan Agreement
Fr
Instructions
om
15. MT 202 [Acknowledgement + Draft] Or P.O/D.D and Payment Forwarding Or Payment
17. Advice of Letter of Credit Payment
18. Bill of Entry
Note: All the listed document types may not be available. However, starred () documents
must be presented.
38
3.3.6 Updating L/C database on Bangladesh Bank server

ABBL also requires updating all the info of each L/C into Bangladesh Banks server. They do
it for each L/C after the payments from parties are received and processing is done. As an
intern, I was given the responsibility to perform this updating task. And here is what I have
observed:
Most of the updating task is performed by interns. To be more specific, the department
is so busy that they themselves can hardly manage time to do it by themselves.
Sometimes Bangladesh bank server remains down and non-responsive for hours that
SU
.C
greatly delays the updating process.
Bangladesh Bank server has a help manual for the updating process, but it does not go
:E
-N
in that detail. So, at times I had to ask someone experienced continuously to know what
om
to input.
Fr
Sometimes the information required by server database is not available in the L/C
ol
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ed
documents; so I had to look for other ways (i.e. inputting placeholder data) as suggested
by officials there.
39
3.4 Internal Management Survey Analysis

Number of clients
1. ABBL Mohakhali branch has limited number of clients in Foreign Exchange Department.
SU
83%
.C
17%
Were already
running with full
capacity; its fine
what we have now.
We have the capacity
to serve more clients
in current state
Were already
running beyond
capacity; more clients
would worsen the
situation
ol
le
ct
ed
Fr
om
:E
However, 4 people thought these small

numbers of clients are good enough to
create full workloads; it was fine what they
already had.
0%
-N
The very first thing that drew my attention

while working with foreign exchange
department was there are only very
limited number of clients (about 10) that
they regularly deal with. Also, they did not
seem to increase the number. So when
asked how they thought about it, 20 out of
24 respondents (83%) said they can
serve more clients.
How do you see it?
2. How is it to deal with limited number of clients?
It is bad,
because
the clients
has too
much
bargaining
power, 2
It ensures
that we
can pay
more
attention
to specific
client
needs for
better
service, 8
Its
decided
by the
head
office, so
we have
nothing to
do with it,
2
Our
clients are
big
parties, so
number of
clients
doesnt
really
matter
much, 12
Client-targeting and sales forecast are

actually decided by ABBL head office. So
Branches do not usually have much to do
with number of clients,
When asked about it, 12 out of 24
respondents (50%) further said that these
were big parties, and thats why number
really didnt matter that much.
8 people thought this was actually better as
it was allowing them to pay more attention
to client needs.
Only 2 people felt it was bad as it allowed
clients too much bargaining power.
40
Management:
3. How do you rate your skill as a member of Foreign Exchange Department?
Response to this question came out as a

major surprise to me. 50% respondents
rated their own skill as a foreign
exchange official as medium, which
should be a concern for the bank
management.
Below
ordinary
Excellent
Fr
om
:E
Medium
-N
SU
.C
However, 6 people were confident enough

to rate themselves at least 8 (in a scale of
9)
ol
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ct
ed
4. How do you rate the whole Foreign Exchange team in terms of skill level?
Although most employees rated their own

skills with less confidence, they had high
confidence on themselves as a team.
While 18 out of 24 respondents rated
team skill 7 or above (in a scale of 9), 6
people had full trust on their team
ability.
Nevertheless, 6 employees rated team skill
level as medium or below medium.
Below
ordinary
Medium
Excellent
41
5. What do you think about the number of workers in the Foreign Exchange Department?
My personal feeling was that workers in

the foreign exchange department needs
We need more people

to meet workload
0%
more people to work with as they have
17%
to work extra hours everyday. But 83%
Currently we have
enough people to
meet current
workload
respondents reacted that they had

enough people to meet the current
workload.
We have too many

people compared to
workload
83%
Notably, no one felt that they had too
ol
le
ct
ed
:E
Fr
om
6. Co-operation between the team is
-N
SU
.C
many people compared to workload.
As
most
people
have
shown
confidence in their team ability, they

have also rated their team co-operation
highly.
Nobody rated co-operation as not so
good or poor. Rather 91% response
was that the team had excellent or
good co-operation level.
42
7. Team managing [leading] is...
De-motivating
Ordinary
Somewhat okay
.C
Good
10
12
14
16
Fr
om
:E
-N
SU
Inspiring
ol
le
ct
ed
With my 3-months experience in the department, I thought employees are not

too much happy with the team-leading. I have seen occasions when team leader
has openly blamed members which were not the most expected thing to
happen. Also, at times members have highly criticized leading method. It was
evident to me that there is a big communication gap between the leadership and
members.
However, survey responses did not at all reflect that. Team-leading was
considered good by two-thirds of the total respondents which could be
pretty satisfactory from management perspective.
43
8. Before starting a new deal/LC, does ABBL make sure all the documents are ready in
order?
Most of
the times
we get it
alright, 4
Documents in order are in the core

requirements of L/C processing. 83%
of the respondents claimed that they
Yes, we
make sure
all the
document
s are
perfectly
ready, 20
made sure the documents were

perfectly alright.
17% had to say that most of the times
Unfortuna
tely we
have too
many
discrepanc
ies even
after
processing
,0
ol
le
ct
ed
Fr
om
9. How is the documents preserved?
:E
-N
SU
.C
they got it alright.
Ideally the department wants to have
all the relevant info available both in

hard copy and online. However 14
out of 24 people said they got it in
this expected fashion.
8 People claimed it was fine to have
only some info online and some in
hard copy.
Some
documents
are
preserved
online, and
some are
preserved
only in
hard copy,
8
Only
online, 0
Only in
hard copy,
2
We
preserve all
the
document
info online
and in hard
copy, 14
44
Technical Resources:
10. Do you think ABBL Foreign Exchange Department uses modern technical equipments
and facilities [optimized computers, SWIFT machines, phone etc] to ensure maximum
productivity?
Technological resources such as computer, network server, phone etc are essential part of todays
banking. ABBL Mohakhali Branch is equipped with all these resources. When asked to evaluate
these resources performance, an overall positive feedback was received. Here is the feedback
Most of the people at Mohakhali
:E
Branch Foreign Exchange department
SU
deal with software while working.
-N
Software Interface: Everyone has to
.C
analysis:
om
felt the software they were using
Fr
was easy to work with. 17 out of 24
ol
le
ct
ed
people said the interface was Pretty

good or Excellent.
Software
Computers:
Survey
reveals
the
employees were highly satisfied

with their office computers. 15 said
computers were excellent while 7 said
those were pretty good.
Computers
45
SWIFT Machine: SWIFT machine is

indispensable for foreign exchange
branches
as
all
the
international
messages come through it.
The
SWIFT machine used in Mohakhali

branch did not look too charming to
me, anyway users found it to be
pretty handy. Almost 80% people [19
out of 20] rated it as Pretty good or
.C
Excellent.
om
:E
-N
SU
SWIFT Machine
Fr
Printer: Survey reveals the printer
ol
le
ct
ed
performances were satisfactory to

almost all the users. It is very good as
hassle-free printing saves a lot of time
Printers
46
Server & Network: ABBL has a

strong and stable server that connects
all its branches and ATM booths
throughout the country. Depending on
server quality the data is transferred
fast or slow. Employee responses
indicate that the server performance
was satisfactory and consistent. No
:E
Phone Service: I myself found the
Server & Network
-N
SU
.C
one at all did rate it bad or poor.
om
phone service in this particular branch
Fr
very irritating experience as there
ol
le
ct
ed
were only 2 land-phone connections

for the whole branch which is very
inadequate. It wastes a lot of time.
Anyway, phone service overall got a
positive evaluation although only 4

people felt it was nit good.
Phone service
47
3.5 Financial Performance Analysis

3.5.1 Earning from L/C
Earning from L/C [lac taka]

FY
FY
FY
FY 2010
2007 2008 2009 [Projected]
Import 9900 32145 26489
31711
Export 5526 16922 16800
29590
Earning from Import L/C
30000
The graphics alongside show ABBL
25000
Mohakhali Branchs earning from L/C
20000
processing over last 4 financial years
15000
(including 2010s projected earning)
In Lac taka
35000
10000
We can see that earning from Import L/C
.C
5000
has been pretty consistent over the years.

This Branch has managed to generate over
Fr
om
Earning from Export L/C
:E
-N
FY 2007 FY 2008 FY 2009 FY 2010
SU
20000
15000
ol
le
ct
ed
25000
In Lac Taka
30000
10000
5000
0
2500 million taka for consecutive 3 years

now. Apart from financial year 2007, the
earning from import L/C has met the
target. In 2010 it has already met target
earning and now going to cross it as we
will see in the following pages figurers.
Earning from export L/C has always
been lesser than import L/C. The reason
is that clients here are mainly importers in
this particular branch. However, Export
FY 2007 FY 2008 FY 2009 FY 2010
earning is increasing over the years as we

can see in the graph.
Notably, in financial year 2007 both
import
and
export
experienced
significant low earning. It was because of

the unstable political condition that year.
48
3.5.2 Budgeted Vs Actual Performance
Budgeted & actual Performance [lac taka]
BGT JanNov 10
28460
26410
Import
Export
Import
ACT JanNov 10
37798
24587
40000
25000
compared to its managements budgeted
20000
performance.
15000
It is evident that import section is
10000
doing great this year (January to
5000
November 2010). The target earning
BGT Jan-Nov 10
ACT Jan-Nov 10
Export
Fr
earning is almost 33% more.
om
was 28460 lac taka whereas the actual
Mohakhali Branchs actual performance
.C
30000
SU
show ABBL
-N
beside
:E
The graphics
35000
However, for export, the performance
ol
le
ct
ed
has not been not so great. It is struggling

to meet the sales target and till
November it lags behind 1823 lac
taka. However the branch said it was

confident to make it up by December.
30000
25000
20000
15000
10000
5000
0
BGT Jan-Nov 10
ACT Jan-Nov 10
49
3.5.3 Growth Rate Over Years

Growth Over Years (%)
250
250
200
200
150
150
100
100
50
Import
Export
50
08 vs 09
09 vs 10
07 vs 08
-50
SU
.C
-N
:E
09 vs. 10
20
36
Fr
om
Import
Export
Growth Over Years (%)

07 vs. 08
08 vs. 09
225
-18
206
28
ol
le
ct
ed
Due to severe disorder in political condition, 2007 had a downfall for all economic
activities including import and export. So the following year (2008) had significant
positive growth rate of over 200% compared to 2007.
However, that growth rate was again down following global economic recession in 2009.
In 2009 Import earning experienced negative growth while export earning managed to
have 28% positive growth.
In 2010, earning from both import and export are positive and growing.
50
4. Recommendation
With my 3-months experience of working in ABBL Mohakhali Branch Foreign Exchange
Department and analysis presented in this report, I would recommend following points:
Recruiting more people:

The workload is excessive and staffs in this department have to work extra 1-2
hours everyday. And for some reason if anyone is not available at any given day,
.C
the workload is even more severe. Employees often complain that they do not even
SU
get casual leaves when required. As days are passing, this thing is creating
:E
-N
dissatisfaction among the employees, which ultimately may lead to loss of
om
productivity. So I recommend recruiting more people in this department to reduce
ol
le
ct
ed
Fr
workload to a reasonable level.
Change in leadership style:

In my observation, current way of leading and managing the team is not the getting
the most productive outputs from the team. Better leadership and guidance from
top managerial level would bring more out of the staffs. And more importantly it
would increase the job satisfaction level, which is currently not at desired level I
believe.
Dealing with more businesses:

Currently the branch deals with only 10-15 regular clients (businesses). I suggest
they expand the target market to more clients which will give the branch more
51
bargaining power to deal with client requests, which are at times pretty
unreasonable. Expanding dealing with more number of smaller businesses would
also increase their earning.
Preserving the documents and information:

Not every document and information is backed up online by the foreign exchange
department. They often require old data and information in everyday tasks, and as
the information is not always available online, they have to spend considerable
amount of time to search in stored folders. So if all the information can be made
SU
.C
available on network, less time will be killed looking for it.
:E
-N
Incentives for staffs:
om
I have not observed any noteworthy incentives from management for employees
Fr
for their achievement. Even at times simple appreciation is missing. More incentive
ol
le
ct
ed
would definitely boost motivation level of workers.
Reduce LC Margin:
Before opening an L/C a customer is required to pay the bank a certain percentage
of the total L/C value in advance, is called the margin. If AB Bank reduces the rate
of margin, then perhaps they can attract more customers. At the moment,
Companies with good relationship with the banks only benefits with lower margin
level over others.
52
Reduce Rate of interest on LTR:

Payments for L/Cs could also made through pre arranged credit facilities that the
customer may have with the Bank. Usually, the rates of interest on these credits are
excessively high which actually discourages the customers. Reducing interest on
such credit facilities would actually induce the clients to do more global trade thus
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increasing the banks profit as well as the well being of the countrys Economy.
53
5. Conclusion
Throughout the last 3 months I have got a vast opportunity to observe the overall service
process of foreign exchange division of ABBL. I have also got the scope to interact with
clients directly and reveal their expectations and perceptions about the banks services.
Not to mention, working with the team was such a great experience.
I am sure the banks foreign exchange division will continue to perform satisfactorily like
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respond to the desired changes required by customers.
recent years. ABBL management just has to make sure that they use their goodwill and
54
Appendix
Items:
Internship Report Proposal
Survey Questionnaire
AB Bank Ltd. Budget Discussion Summary [Mohakhali Branch]
.C
O
AB Bank Ltd. November 2010 Flash Report [Mohakhali Branch]
AB Bank Ltd. November 2010 Health Report [Mohakhali Branch]
SU
AB Bank Ltd. 2009 Credit Report
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AB Bank Ltd. Consolidated Balance Sheet 2009
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AB Bank Ltd. Consolidated Income Statement 2009
Bibliography
1. AB Bank Ltd. Annual Report 2009

2. AB Bank Ltd. 2009 Credit Report
3. AB Bank Ltd. Budget Discussion Summary [Mohakhali Branch]
4. AB Bank Ltd. November 2010 Flash Report [Mohakhali Branch]
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5. AB Bank Ltd. November 2010 Health Report [Mohakhali Branch]
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6. AB Bank Ltd. Official website http://www.abbank.com.bd
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7. Bangladesh Bank website: http://www.bangladesh-bank.org/
om
Risky business: Corruption, fraud, terrorism and other threats to global business By
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Stuart Poole-Robb, Alan Bailey
9.
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8. Wikipedia website: http://wikipedia.com

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Internship Report

Internal Analysis of Foreign Exchange Operations

in AB Bank Ltd. [Mohakhali Branch]

Mr. Syed Kamrul Islam

North South University

North South University

thanks to my Internship Supervisor at AB Bank Ltds Mohakhali Branch, Branch Manager

and advices in this regard.

authorized me to prepare as Internship Report.

This internship at AB Bank Ltd has given me an opportunity to get hands on

provided me the scopes to apply my learning of the theories in a corporate

Branchs foreign exchange department.

overview and evaluation on the branchs Foreign Exchange Department.

to look into to ensure continuous performance growth.

1.2 Objectives of the Study

1.3 Significance of the Study

1.5 Scope and Limitations of the Study

1.6 Limitations of the Study

1.1 Origin of the Report

2.0 Company Profile

2.1 Background of the Company

2.2 Mission, Vision and Objectives

2.3 Organization Structure

2.3.2 Branch Organogram

2.4 ABBLs Services and Various Functional Departments

2.5 ABBLs Competitive Conditions in Banking Industry

2.3.1 Managerial Hierarchy in ABBL

2.5.1 Competitive Analysis Using Porters Model

2.5.2 SWOT Analysis

2.6 Future Directions

3.0 Performance Evaluation

3.3 Step-by-step L/C Processing Flow

3.3.1 Letters of Credit (L/C)

3.3.2 Parties to a Letter of Credit

3.3.3 Typical Flow of Commercial Letter of Credit Processing

3.3.4 ABBLs role

3.3.5 Document and Information Preservation

3.4 Internal Management Survey Analysis

3.5 Financial Performance Analysis

3.5.1 Earning from L/C

3.5.2 Budgeted Vs Actual Performance

3.5.3 Growth Rate Over Years

(i.e. L/C is an essential part of export/import of a country]. Therefore as an International

analyzed the overall performance of foreign exchange department.

1.2 Objectives of the study:

It will be an internal evaluation of the foreign exchange department of ABBL

To get the employees insight of the L/C process

Internal Analysis of Foreign Exchange Operations in AB Bank Ltd. [Mohakhali Branch]

1.3 Significance of the study

collected through questionnaire surveys and some interviews as required.

Also, I looked into published data sources.

1.5 Scopes of the study

Internal Analysis of Foreign Exchange Operations in AB Bank Ltd. [Mohakhali Branch]

1.6 Limitations of the study

respondents of one particular branch

the management was reluctant to share stating it was confidential.

Internal Analysis of Foreign Exchange Operations in AB Bank Ltd. [Mohakhali Branch]

2.0 Company Profile

2007 to stand at over Tk 8,400 cr as at the end of 2008.

growth of over 40% in 2008.

Internal Analysis of Foreign Exchange Operations in AB Bank Ltd. [Mohakhali Branch]

2.2 Mission, vision and objectives

To be the best performing bank in the country