AMERICAN INTERNATIONAL UNIVERSITY BANGLADESH AIUB

Proposal

Internship
Foreign Exchange Transactions in First Security Islami Bank Ltd

Submitted To:

Farooque Hossain

Internship Supervisor
Faculty of Business Administration

American International University-Bangladesh (AIUB).

Submitted By: Group: 6

Sukran Al

ID: 08-11641-2

---------- Submission Date: 08th March, 2012

1. Brief Introduction of the Topic/Study

1.1 Title of the Study Foreign Exchange Transactions in FSIBL 1.2 Profile of the Organization or Business Establishment The First Security Islami Bank Ltd. is a National Banking sector which was incorporated on the 29th August, 1999 as a Banking Company under the companies Act 1994 to carry on the banking Business. It obtained permission from Bangladesh Bank on 22nd September, 1999 to commence its Business. It has started its operation as a commercial bank on the 25th October, 1999 with a branch at Dilkusha. At present the Bank has 84 branches. In the background of economic liberalization and financial sector reforms, a group of highly successful local entrepreneurs conceived an idea of floating a Shariah based commercial bank obedient banking activities of the bank encompass a wide range of services including accepting deposits, making loans, discounting bills, conducting money transfer and foreign exchange transactions, and performing other related services such as safe keeping, collections and issuing guarantees, acceptances and letter of credit. 1.3 Rationale of the Study: Foreign Exchange Transaction is very important for business. Most of the Foreign Exchange Transaction is done by Bank. So it is very important for banking business also. In banking business there are lots of tasks in Foreign Exchange Transaction those are Export, Import, and Remittances etc. The implication of the Foreign Exchange Transaction is very essential to achieve the organizational goal. As I am a student of Finance & Accounting, by this report I want to know To know the Foreign Exchange Transaction of First Security Islami Bank Ltd. How to Export tasks are doing by the Bank? How to Import tasks are doing by the Bank? What are the other Remittances in Commercial Bank? And Finally I will make this report because it was an academic requirement of my BBA program.

2. Statement of the Problems

Its a short time to understand details about Foreign Exchange Transaction and I am not directly doing all these tasks practically. Other hand I do not get these kind of experience form our in past and also its different from our course out line. I have observing in a few days. Its not easy to do everything within a few months even Bank Officers are facing problems because of day by day new system are updating.

3. Scope and Delimitation of the Study

The study has basically covered the followings Theoretical aspects of the new integrated rules & regulations of the foreign exchange business. Current Payment procedures exercised by FSIBL Categorization of different types of income from foreign exchange transaction. Rationale behind deploying the new system. Practical orientation of the proposed system.

4. Objectives of the Study

The primary objective of the study will be to meet compulsory requirements of submitting a report which is an integral part of the Internship Program focusing on all the workings and understanding I want to gather during my attachment in FSIBL. The document will also been focused to capture an overall view of the Foreign Exchange Transactions performed by FSIBL. The Secondary objectives of the report would encompass the following: To obtain an overall view of the current foreign exchange transaction performed by FSIBL Banani Branch. To gather knowledge of existing procedures regarding L/C opening ,L/C Advising, L/C Confirmation ,Reimbursement Authorizations , Payment Instructions , Export Bill Collections, Negotiation etc. To focus on the problems associated with the foreign exchange business in FSIBL Banani Branch. To document the Schedule of charges in the case of foreign exchange business. To highlight on various issues regarding the calculation of different rates like BC selling rate ,TT/OD selling & buying rates, TT clean ,TT (Doc) , OD sight export , Usages Export bills selling rates, Forward rates to public, Cash & Travelers Cheques buying & selling rate ,cross rates &Libor rates etc. To recommend for further improvement of the proposed system.

5. Methodology of the Study

This report is basically based on the topic named Foreign Exchange Transactions in FSIBL Banani Branch (In case of Commercial Bank). Since I am doing my internship program on this particular department, therefore, in preparing the report I concentrate on the issues exclusively focused by FSIBL in this project. The report is based on both Primary & Secondary data that means on the support documents related to Foreign Exchange Transactions in FSIBL Banani Branch. Moreover my three months practical orientation in FSIBL Banani branch and visit to FSIBL ex-head office in Dilkhusha & (Gulshan Branch New Head Office) also helping me to have a very concrete idea regarding the procedures and the related issues as well. Primary Data Sources Personal observation Personal Interview File inspection Internal Records Secondary Data Source Annual Report of PBL Audit Reports Website Relevant books, Research papers, Newspapers and Journals. Internet and various study selected reports.

6. Timeline of Activities:
Date Activities Literature collection and outline preparation Data collection Observation Data analysis Preparation of the draft Submission of the first draft Submission of the report** 02/02/12 to 20/02/12 21/02/12 to 06/03/12 07/03/12 to 17/03/12 18/03/12 to 28/03/12 29/03/12 to 05/04/12 06/04/12 to 19/04/12