A Report Of Asia Bank Foreign Exchange Remitance

IntroductionThe Jews in Jerusalem introduced a kind of banking in the form of money lending before the

birth of Christ. The word 'bank' was probably derived from the word bench' as during ancient

time Jews used to do money -lending business sitting on long benches.

First modern banking was introduced in 1668 in Stockholm as 'Svingss Pis Bank' which

opened up a new era of banking activities throughout the European Mainland.

In the South Asian region, early banking system was introduced by the Afgan traders

popularly known as Kabuliwallas. Muslim businessmen from Kabul, Afganistan came to

India and started money lending business in exchange of interest sometime in 1312 A.D.

They were known as 'Kabuliawallas'.

Industrial Overview

Now a day's bank plays an important role of financial stability of a country. It is an

institute, which is responsible for safeguarding the financial stability of a country. Due to

globalization & technological innovation banking system has become very competitive. The

present economic state of Bangladesh demands immediate market development of

financial institutions. The key to success in such demanding market situation is how automated

the service is on a continuous real time basis.

Number and Types of Banks

The number of banks in all now stands at 49 in Bangladesh. Out of the 49 banks, four are

Nationalized Commercial Banks (NCBs), 28 local private commercial banks, 12 foreign

banks and the rest five are Development Financial Institutions (DFIs). Sonali Bank is the

largest among the NCBs while Pubali is leading in the private ones. Among the 12 foreign

banks, Standard Chartered has become the largest in the country. Besides the scheduled

banks, Samabai (Cooperative) Bank, Ansar-VDP Bank, Karmasansthan

(Employment) Bank and Grameen bank are functioning in the financial sector. The number

of total branches of all scheduled banks is 6,038 as of June 2000. Of the branches, 39.95 per

cent (2,412) are located in the urban areas and 60.05 per cent (3,626) in the rural areas. Of

the branches NCBs hold 3,616; private commercial banks 1,214, foreign banks 31 and

specialized banks 1,177.Bangladesh Bank (BB) regulates and supervises tile activities of all

banks. The BB is now carrying out a reform programmed to ensure quality services by the

banks.

1313

NCl3s

PCBs

Specialized BanksBangladesh Bank (Central Bank of Bangladesh)

Bangladesh Bank (BB) has been working as the central bank since the country's

independence. Its prime jobs include issuing of currency, maintaining foreign exchange

reserve and providing transaction facilities of all public monetary matters. BB is also

responsible for planning the government's monetary policy and implementing it thereby. The

BB has a governing body comprising of nine members with the Governor as its chief. Apart

from the head office in Dhaka, it has nine more branches, of which two in Dhaka and one each

in Chittagong, Rajshahi, Khulna, Bogra, Sylhet, Rangpur and Barisal.

Bangladesh Bank in a Brief

Bangladesh Bank, the central bank of the country, was established as a body corporate

Vide the Bangladesh Bank Order, 1972 (P.O. No. 127 of 1972) with effect from 16th

December, 1971. The general superintendence and direction of affairs and business of the

Bank are entrusted to a nine member Board of Directors which consists of the Governor as

chairman, a Deputy Governor, three senior government officials and four persons having

experience and proven capacity in the fields of banking, trade, commerce, industry or

agriculture - all nominated by the government. The board, which is the highest policy

making body, meets at least six times a year and at least once every quarter under the

chairmanship of the Governor. The Governor, appointed by the government as the chief

executive officer, directs and controls all the affairs of the Bank on behalf of the Board.

Vision and Mission

http://matters.bb/

Vision

The Bangladesh Bank (BB), through ensuring the quality of services and the competence of'

its staff, shall operate as a modern, dynamic, effective, and forward-looking central bank to

manage the country's monetary and financial system with a view to stabilizing the internal

and external value of Bangladesh Taka conducive to rapid growth and Development of the

economy.

Mission

To uphold the vision and in pursuant with the Bangladesh Bank Order of 1972,

Bangladesh Bank's mission is to promote and maintain macroeconomic and price stability

through:

Formulating and implementing appropriate monetary policy consistent with the

country's national development goals;

pursuing prudent policies to ensure stable internal and external value of Taka;

Identifying policy priorities for implementation by the Government through assessing

the transmission channels and the interactions of monetary policy with fiscal,

exchange rate, and other macroeconomic policies and their impact on the economy;

Proposing necessary legislative measures to attain the central bank's objectives and

perform its functions including strategies and regulations for and supervision of

banking companies and financial institutions with the aim to providing efficient

financial intermediation and financial services to large, medium, small, and micro

enterprises and to pro-poor activities ;

Promoting, regulating and. ensuring a secure and efficient payment system, including

the issue of Bank Notes;

Giving advice to the Government on the interaction of monetary policy with fiscal

and exchange rate policies, on the impact of various policy measures on the

Company;

Analyzing priority macroeconomic issues for policy advice and dissemination of

information to attain the central bank's social responsibility.

To this end, 1313 would ensure that it has the requisite human and infrastructural resources

and build its capability to promote and ensure a robust and well-functioning financial sector.

This mission statement pledges that the guiding philosophy of BB's operations would be

sound regulatory Framework conducive to the operation of efficient market mechanism along

with transparency and accountability, professionalism, ethical standards, adoption of

modern technology in operational and decision making processes, and trust and respect in all

relations. Periodic strategic planning would serve to identify the emerging challenges, key

changes affecting BB's internal and external environment and set its strategic guidelines, set

priorities, promote improvements in management practices, and induce necessary changes in

organizational culter to fulfill its mission, BB would undertake activities related to developing

the national financial system and management of monetary, foreign exchange, and credit

policies. The Bangladesh Bank's core mission strategies cover both monetary policy and

financial sector developments.

Monetary Policy

The aim is to achieve the twin goals of containing inflation and promoting sustained and

stable economic growth; provide policy advice to the Government on deficit financing and

public debt management; manage the balance of payments and foreign exchange reserves;

provide payment services and ensure the stability of the financial system; conduct treasury

and government securities related operations; and efficiently perform other international

financial activities.

Financial Sector Developments

Critical activities cover the development of the financial systems; provide effective

prudential supervision; ensure information access, market intelligence, and contingency

planning to avoid systematic risks; assist banking and financial entities to become efficient

and competitive; discover new modalities for delivering agricultural and industrial term

credit; enhance the access of small and medium enterprises to investment funds; further

develop the market in public and private debt and risk capital; and promote measures f0r

inclusion of people hitherto bypassed in formal financial systems.

In addition, the Bangladesh Bank will continuously adopt necessary measures for taking a

proactive stance in decision making; compiling relevant statistics and conducting high

quality and timely economic research to review the country's financial and economic

conditions to support decision making; ensuring efficient and professional management of

BB's human and financial resources; and establishing BB's distinct identity based on its

values and strategic roles.

In order to uphold the mission, Bangladesh Bank's aim would be to provide the required

leadership by discharging its duties in a manner that shows a clear vision, is watchful, far-

sighted, intelligent and responsive based on an effective and efficient communication

strategy. At all times, BB's aim would be to remain committed, efficient, capable, logistically

Supported, speedy, focused, and aggressive where necessary in order to ensure that the

Bangladesh Bank

Always remains a credible and prestigious institution with an efficient organizational

structure committed to achieving its goals.

Objectives of the Study

Objectives:

The objective of the analysis is to evaluate the procedure of “Foreign Exchange Remittance”

of Bank Asia Limited. There are also many objectives. The primary objective of this report is

to comply with the requirement of the Bank Asia Limited. But the objective behind this study

is something broader. Objectives of study are summarized in the following manner:

To evaluate import – export procedures.

To evaluate the performance of the bank.

To apply theoretical knowledge in the practical field.

To make bridge between the theories and practical procedures of banking day-to-day operations.

To gain practical knowledge by working in different desks of Jessore branch office of bank Asia Ltd.

To observe the working environment in commercial banks.

To study existing banker-customer relationship.

To know the overall functioning of Bank Asia Limited.

To have some practical exposures that will be helpful for my future career.

Specific Objectives:

To submit a report, for the fulfillment of my BBA program.

Is to find out the “Foreign Exchange Remittance of Bank Asia Ltd.”

Broad Objectives:

Together comprehensive knowledge on total banking functions.

To identify the factors contributing to the attractive & operative performance of the local branch of the bank.

To make a study of the facts in order to arrive at certain conclusion about foreign exchange system.

Critically analyze the functions and the operations of each level of the organization of

Bank Asia Limited.

Sources of Data:

In order to make the report more meaningful and presentable, two sources of data and

information have been used widely.

The “Primary Sources” of Data are as follows:

Face-to-face conversation with the respective officers and staffs of the Branch.

Informal conversation with the clients.

Practical work exposures from the different desks of the departments of the Branch covered.

Relevant file study as provided by the officers concerned.

The “Secondary Source” of Data and Information are:

Annual Report of Bank Asia Ltd.

Various Books, articles, compilations etc. regarding general banking functions,

foreign exchange operations and credit policies.

Different Procedure Manual published by Bank.

Limitation of the Study

There are some limitations in every analysis. I have also faced some problems at the time

analyzing the performance of the bank. The limitations of my analysis are given below:

i. Time is limited (3 month)

ii. Insufficiency of information.

iii. The bank personnel are very busy.

iv. It was very difficult to collect the information from various personnel for their job constraint.

v. As some of the fields of banking are still not covered by our courses, there was difficulty in understanding some activities.

vi. Another limitation of this report is Bank’s policy of not disclosing some data and information for obvious reason, which could very much useful.

Industrial Overview

Now a day's bank plays an important role of financial stability of a country. It is an

institute, which is responsible for safeguarding the financial stability of a country. Due to

globalization & technological innovation banking system has become very competitive. The

present economic state of Bangladesh demands immediate market development of

financial institutions. The key to success in such demanding market situation is how automated

the service is on a continuous real time basis.

Mission & Vision:

Mission

To assist in bringing high quality service to our customers and to participate in the growth

and expansion of our national economy.

To set high standards of integrity and bring total satisfaction to our clients, shareholders and

employees.

To become the most sought after bank in the country, rendering technology driven innovative

services by our dedicated team of professionals.

Vision

Bank Asia’s vision is to have a poverty free Bangladesh in course of a generation in the new

millennium, reflecting the national dream. Our vision is to build a society where human

dignity and human rights receive the highest consideration along with reduction of poverty.

The Objectives of the Bank

a) To regulate the issue of the currency and the keeping of reserves;

b) To manage the monetary and credit system of Bangladesh with a view to stabilizing

domestic monetary value;

c) To preserve the par value of the Bangladesh Taka;

d) To promote and maintain a high level of production, employment and real income in

Bangladesh; and to foster growth and development of the country's productive

resources for the national interest

Organogram

Board of Directors

CHAIRMAN

Mr. Anisur Rahman Sinha

VICE CHAIRMAN

Mr. Anwarul Amin

Mr. A.M. Nurul Islam

DIRECTORS

Mr. Romo Rouf Chowdhury

Ms. Farhana Huq Chowdhury

Ms. Shameem Choudhury

Mr. Shaique Uddin

Mr. Murshed Sultan Chowdhury

Mr. Mir Shahjahan

Mr. Faisal Samad

(Alternate Director of Ms. Mahrina Chowdhury)

Mr. M. Shamsul Alam

Lt. Col. (Retd.) Fariduddin Ahmed

PRESIDENT & MANAGING DIRECTOR

Mr. Erfanuddin Ahmed

COMPANY SECRETARY

Mr. Aminul Islam

Board’s Audit Committee

Mr. A M. Nurul Islam - Chairman

Mr. Anwarul Amin - Member

Mr. Murshed Sultan Chowdhury - Member

Management Executives

PRESIDENT & MANAGING DIRECTOR

Mr. Erfanuddin Ahmed

DEPUTY MANAGING DIRECTOR

Aminul Islam

Erfanuddin Ahmed

SENIOR EXECUTIVE VICE PRESIDENT

S.M. Khorshed Alam

Irteza Reza Chowdhury

EXECUTIVE VICE PRESIDENT

Mohammed Roshangir

A.H.J. Rahman

Nasirul Hossain

Md. Azhar Ali Miah

Syed Nazimuddin

SENIOR VICE PRESIDENT

Swapan Dasgupta

M.M.A. Moquit

Md. Arfan Ali

Raiqul Hasan

A.K.M. Shahnawaj

Mohammad Borhanuddin

Md. Sazzad Hossain

Maruf Mohammed Ahsan

Md. Abu Bakar Laskar

VICE PRESIDENT

Mohd. Shahabullah

Md. Ashrafuddin Ahmed

A.K.M. Shaiful Islam Chowdhury

S.M. Iqbal Hossain

Md. Mozaffor Hossain

Syed Iltefath Hussain

Asadul Karim

Md. Raja Miah

FIRST VICE PRESIDENT

Niaz Ahmed Chowdhury

Nazneen Sultana

Md. Ekramul Hossain

Md. Zahid Hossain

Md. Zia Arin

Md. Azharul Islam

Afzalul Haq

Sui Tofail Ahamed

ASSISTANT VICE PRESIDENT

Alamgir Hossain

Debashish Karmaker

Md. Azizul Haque Khan

Ali Tarek Parvez

Humayun Yusuf Kabir

K.S.A. Ansari

Arequl Arefeen

Kamal Uddin Ahmed

Md. Saiful Islam Laskar

A.K.M. Rezaul Haque Chowdhury

Md. Murshid-Al-Amin

Md. Shahidul Islam

FIRST ASSISTANT VICE

PRESIDENT

Khairul Haque

A.M.M. Nizamuddoula Khan

Faiz Mohammed

Syed Md. Ali Reza

Ibne Mohammad Shamsuzzaman

K.M. Shakhawat Hossain

Md. Prashanta Samir

Md. Tarek Hassan

Md. Inamul Islam

Mehbub Hasan

Tunku Humayun M. Morshed

Kazi Shamsul Haque

Mohammed Mamun-or-Rashid

Md. Mortuza Ali

M.M. Saiful Islam

Md. Jahangir Alam

Md. Hosnezzaman

Syed Humayun Kabir

Md. Elias Mollah

Nesar Ahmed

M.R. Chowdhury Rashed

Md. Serajul Islam

A.K.M. Tareq

Md. Mohsin Jamal

Sujit Kumer Sen

Mohammad Mainul Islam

Md. Belal Hossain

Muhammed Nizam Uddin

Md. Murshed Alam

Md. Omar Hayat Chowdhury

Md. Akmal Hossain

Towheedul Islam

Emdadul Haque

Saiful Islam

M.M. Shariful Islam

Mehedi Zaman Khan

H.M. Mostaizur Rahman

Md. Mazibur Rahman

Syed Md. Jarzis

Kazi Nowshaduzzaman

Mohammad Mahmud Alam

Hasan A. Saimoom

Ahmed A. Jamil

Md. Anisur Rahman

Mohammed Shahjahan

Md. Sultan Hayat Khan

M. Hasibul Alam

Md. Moniruzzaman

Rownak Amin

A.K.M. Mohsin Uddin

Md. Shahidul Islam

Md. Mustaizur Rahman

Product & Services

a) ATM Services

The Bank carries its banking activities through twenty four branches in the country. Bank Asia

customers have access to 21 ATMs as a member of ETN. Under the ATM network the Stelar Online

Banking Software enables direct linking of a client's account, without the requirement of a separate

account. The Bank has already set up its own ATM machine at 6 corresponding branches and is also in

the process of setting up its own ATM network at every focused point in the city with a view of

providing retail banking services.

Connect Asia

Bank Asia symbolizes modern banking with innovative services in Bangladesh. We provide Online

Banking, ATM Support, SMS and Net Banking Services in the country. Our newly developed web

application is fully authentic, secured and robust. This technology based services also provide you Fund

Transfer through internet, Debit/Credit Card facility, free SMS message of special type of withdrawal

from your account time to time.

b) On-line Banking:

All branches under online banking system will be able to do banking practices using a common server

(which is centralized) from where only the branches will be able to enter using a common password.

c) Internet Banking:

Any one including any client or any branch from any direction will be able to enter in the system to do

banking transactions.

Internet Banking Services

Check account balance

Take print out of account statement for a particular period

Transfer fund within your own account

Make payment of mobile phone bill

Recharge your mobile phone as well as others from your account

Enquire foreign exchange rate

Enquire currency exchange rates.

Acquire information on all our products.

Every transaction report will be sent to client’s e-mail account.

Can change the password, pin code and respective mobile number (For All Mobile Operator's).

d) Sms banking

Short Message Service (SMS) is a communications protocol allowing the interchange of short text

messages between mobile telephone devices. SMS text messaging is the most widely used data

application. SMS as used on modern handsets was originally defined as part of the GSM series as a

means of sending messages of up to 160 characters (including spaces), to and from GSM, CDMA

networks and Digital AMPS, as well as satellite and landline networks. Most SMS messages are

mobile-to-mobile text messages, though the standard supports other types of broadcast messaging as

well.

e) Locker Services

Bank Asia brings to you a very user-friendly locker service that is a fine blend of security and

confidentiality. At the same time for sheer convenience and further security we have also made

arrangements for a well appointed rest room where you can beautify yourself, wear your jewelry before

you step out for your appointment or you may also take your own time to go through your valuable

documents in absolute discretion.

f) Bank Asia Credit card

Bank Asia Credit Card is accepted more than 3500 merchant outlets around the country. Bank Asia

credit card offers you free credit facility up to 45 days and minimum 15 days without any interest; you

can also pay 8.33% of your billing amount or current dues every month and thus have the flexibility to

plan your payments.

Our Schemes

g) Bonus Savings Scheme

Modern Banking is a result of evolutions driven by changing economic activities and lifestyles.

Entering a new millennium, banking needs have become more diverse and exotic than ever before.

Bank Asia Ltd. is a new entrant in the private banking scenario of Bangladesh with a promise to fulfil

every possible customer need with high efficiency and satisfaction. Its team of dedicated professionals

is committed to provide an unparalleled service by using the latest technology to make bankable

proposals harvest maximum benefits for the customers, the shareholders and the society at large. It is an

immense pleasure for Bank Asia to introduce Bonus Savings to its customers.

h) Deposit Pension Scheme

Deposit monthly installment ranging from Tk. 500/- to Tk.10,000/- and on maturity the holder receives a handsome amount as per table below:

Amount Payable at Maturity

Monthly Deposit

Payment After 3 Years



Payment After10 Years

Payment After12 Years

500 21,500 41,000 65,500 115,000 160,000 1,000 43,000 82,000 131,000 230,000 320,000 2,000 86,000 164,000 262,000 460,000 640,000

Bonus Savings Schemes

Deposit Pension Scheme

Double Benefit Plus

Triple Benefit Plus

Monthly Benefit Plus

Coverage Loan

Poverty Alleviation

http://www.bankasia-bd.com/index.php?page_id=258







3,000 129,000 246,000 393,000 690,000 960,000 4,000 172,000 328,000 524,000 920,000 1,280,000 5,000 215,000 410,000 655,000 1,150,000 1,600,000 8,000 344,000 656,000 1,048,000 1,840,000 2,560,000 10,000 430,000 820,000 1,310,000 2,300,000 3,200,000

Features of this product are:

In case of premature liquidation, the applicable interest rate is savings Bank account rate.

Installment to be made available in Savings Account in due time.

i) Double Benefit Plus

Only individuals can open this account.

Money deposited in this account will be doubled in 6 (six) years.

Deposit amounts will be Tk. 100,000/-or it’s multiple, and maximum will be Tk. 2,500,000/-under single name and Tk. 4,000,000/-under joint name.

In case of premature encashment, the applicable rate will be the simple savings rate of the Bank; however, there will be no interest payment for premature encashment within six months life of the account.

Loan facility will be available up to 90% of the deposited amount.

Value at maturity

Tenure Initial deposit Value at maturity7-years Tk. 100,000/= Tk. 200,000/=

j) Triple Benefit Plus


Money deposited in this account will be Tripled in 9 (nine) years 6 (six) months.

Deposit amounts will be Tk. 100,000/-or it’s multiple, and maximum will be Tk.

2,500,000/-under single name and Tk. 4,000,000/-under joint name.

In case of premature encashment, the applicable rate will be the simple savings rate of the

Bank; however, there will be no interest payment for premature encashment within six

months life of the account.

Loan facility will be available up to 90% of the deposited amount.

Value at maturity

Tenure Initial deposit Value at maturity

9.6-years Tk. 100,000/= Tk. 300,000/=

k) Monthly Benefit Plus

MB+ is a 5-year scheme that lets the customer earn monthly benefit of Tk. 850/- or its multiple by

minimum initial deposit of Tk. 100,000 or its multiple. Features of this product are: MB+ is a 5-year

scheme that lets the customer earn monthly benefit of Tk. 850/- or its multiple by minimum initial

deposit of Tk. 100,000 or its multiple. Features of this product are:


The individual must have a Savings account with the bank in which the monthly benefit will be credited

automatically. This link account will not be charged for incidental charges.

Deposit amounts will be Tk. 100,000/-or it’s multiple, and maximum will be Tk. 2,500,000/-under

single name and Tk. 4,000,000/-under joint name.

The tenure of deposit will be 3 years and 5 years. The person will get monthly benefit of Tk. 975/-

for deposit amount of Tk. 100,000/-for 3 years term deposit and Tk. 1,000/-for deposit amount of

Tk. 100,000/-for 5 years term deposit.

In case of premature encashment, the applicable rate will be the simple savings rate of the Bank;

however, there will be no interest payment for premature encashment within six months life of the

account. The principal amount will be adjusted at the time of providing savings account rate.

Loan facility will be available against the account.

Deposit and monthly payment matrix

Deposit amount (In Taka) Monthly interest amount100,000 850200,000 1700300,000 2550

400,000 & onwards 3400 & onwards100,000 850

L) Coverage Loan This product will facilitate the customer to have financing for purchase of Apartment, house,

construction of new house, extension of existing house etc.

The product will allow Automobile/car [brand new or recondition] financing for personal

use only. But car model should not order four years at the time of registration in

Bangladesh.

A consumer credit scheme that support purchase of various consumer durable such as

television, Refrigerator, Ac etc. Any Bangladeshi individual has the means and capacity to

repay the loan.

Medical emergencies in life come unannounced! One can hardly BD prepared for such

exigencies. Now Bank Asia’s Medical Support Gives you the financial support and peace of

mind to tackle any unforeseen.

m) Repayment Procedure

Loan will be repaid depending on the inflows from investment as well as from other source of income

as weekly, monthly or quarterly basis.

Interest Rate

General interest & rates are as Bank Asia declared with the honorable customer is shown below. We

offer different rates and interest on different product. Below you will see some tables that include most

significant information.

The Table Below Contains the Chart of Bank Asia:

Interest Rate on Lending

Type Mid Rate MaximumAgriculture (including Jute) Term Loan (Large & Medium Scale Industries)Working CapitalExportOther Commercial LendingSmall & Cottage Industries (with Govt. refinance)Small & Cottage Industries (without Govt. refinance)Urban HousingOverdraft (OD) against FDR (issued by bank asia ltd)Overdraft (OD) against FDR (issued by other bank)Overdraft (OD) against FDR (MB+, DB+, DG+ of B.A. Ltd)Micro Credit (Micro Credit Scheme)Micro Credit (Personal Credit Scheme)Micro Credit (Car Own Scheme)Micro Credit (Consumer Credit Scheme)OthersOverdraft (OD) against FDR (Similar Instruments issued by other banks)

9.00%15.50%15.5%7.00%

16.00%12.00%13.00%16.00%15.00%16.00%16.00%12.00%16.00%16.00%16.00%16.00%16.00%

9.00%17.00%17.00%7.00%

17.50%12.00%13.00%17.50%16.00%17.00%17.00%12.50%17.00%17.00%17.00%17.00%17.00%

Interest Rate on Deposit

Type Interest rate

Savings Deposit

Short Term Deposit

Fixed Deposits: 1 Month tenor




Fixed Deposits: 1 Year tenor

Fixed Deposits: Above 1 Year tenor

6.00%

5.00%

7.00%

8.00%

9.00%

9.50%

9.75%

10.00%

n) Corporate Social Responsibility

In these days of globalization, businesses, industry, financial institutions cross national

boundaries every day. All over the world there is now a demand from the civil society, politicians and

governmental authorities on such corporate bodies to fulfill certain social obligations

Also known as corporate social responsibility. Bangladesh is no exception. Corporate bodies are under

increasing social scrutiny and pressure to contribute to social welfare of

the communities in which they operate. These relate to contributions towards improving the livelihood

opportunities of the less fortunate, provision of facilities for education and health, protection of the

environment, and encouragement of cultural and social activities in the rural as well as urban areas. The

Board of Bank Asia has been conscious of our corporate social responsibilities from the very

beginning. In fulfilling our obligations, the Board of Directors, in consultation with the management,

has been providing support and resources for the following activities:-

(a) Introduction of scholarships for poor but meritorious students of the communities in which

our rural branches operate to provide opportunities for higher education in modern subjects to build up

their career.

(b) Bank Asia has an agreement with the Bangladesh Eye Hospital to provide all costs of treatment for

all born-blind children of Bangladesh.

(c) Based on our commitment to protect the environment, Bank Asia took the pioneering role in

financing CNG conversion facilities and CNG billing stations for automobiles.

(d) In collaboration with an organization named D-Net, we are setting up Computer

Learning Centers close to all our rural branches – providing for both capital and recurring expenses.

(e) Apart from lending directly for reduction of poverty, we have been collaborating with some large

and small NGOs in creating employment opportunities through micro-finance and other types of

lending and social welfare activities.

(f) We patronize and encourage cultural activities, sports, in arts, and work on the lives of

distinguished sons of the soil.

(g) In the context of the two looks, and the SIDR cyclone in the coastal areas in

2007, your Bank contributed over 14 (fourteen) million taka to the Government’s

Relief Fund.

Branch Expansion

The Bank at present carrying its banking activities through Thirty four Branches, including ATM,

Locker & Foreign Exchange services in the country. It has nine rural branches as well.

Branches At A GlanceBranch Name Address Phone / Swift Code

Fax NumberCorporate Branch Noor Tower (1st floor)

73, Sonargaon Road (1/F Free School Street)Dhaka-1205, Bangladesh

Ph: 880-2-9674501,9674502Fax: 880-2-9674502

BALBBDDH002

Principal Office Branch

111-113, Motijheel C/A.Dhaka - 1000.

Ph: 880-2-9571450, 9571451Fax: 880-2-9566223Telex: 632513 BAPO BJ

BALBBDDH003

Gulshan Branch Bay's Gallaria 57, Gulshan Avenue (Ground Floor)Dhaka - 1212.

Ph: 880-2-8828103,8828179Fax: 880-2-8816739Telex: 642450 BAGUL BJ

BALBBDDH004

Agrabad Branch 69, Agrabad C/ A, Chittagong.

Ph: 880-31-714665,724876, 714703,Fax: 880-31-714548,Telex: 633274 BAAGR BJ,

BALBBDDH005

Malkhanagar Branch

Union Parishad BhabanTaltola Bazar, MalkhanagarMunshigonj

Ph: 0171 - 831040Fax:

Scotia Branch 32, Kazi Nazrul Islam Avenue Kawran Bazar

Ph: 880-2-8110161,8125011Fax: 880-2-9123077

BALBBDDH

MCB Dilkusha Branch

4 Dilkusha C/A,Dhaka

Ph: 880-2-9568871 - 3Fax: 880-2-9563649

BALBBDDH008

MCB Sk. Mujib Road Branch

1269/b Sk. Mujib RoadAgrabad C/A, Chittagong

Ph: 880-31-715125 - 7Fax: 880-31-710352

BALBBDDH009

Sylhet Main Branch 60 NILOY, Dargah GateSylhet

Ph: 880-821-722616, 712256Fax: 880-821-722616

Tarail Branch Tarail Bazar Kishoreganj

Ph: 09434-75099

MCB Banani Branch

A. R. Tower24 Kamal Ataturk RoadBanani, Dhaka - 1213

Ph: 880-2-9885610,9889104Fax: 880-2-9889104

Khatunganj Branch 273/268, KhatunganjChittagong

Ph: 880-31-610036,638013

BALBBDDH013

Fax: 880-31-632905Mitford Branch Bismillah Tower

147/148, Mitford RoadDhaka – 1100

Ph: 880-2-7320620 - 1Fax: 880-2-7314999

Uttara Branch House # 79A, Road #07Uttara Model Town, Dhaka

Ph: 880-2-8957427 - 9Fax: 880-2-8957431

Ashulia Branch Chowdhury Plaza (1st Floor)Zamgara Bazar, Ashulia, SavarDhaka

Ph: 880-2-7702447

North South Road Branch

89 Shaheed Syed Nazrul Islam ShoroniNorth South Road, Dhaka

Ph: 880-2-9563768 - 69Fax: 880-2-9563223

CDA Avenue Branch

665 CDA Avenue East NasirabadChittagong.

Ph: 880-31-843640Fax:880-31-843640

Sylhet Uposhohor Branch

Rahim Tower,Subhanighat Bishwa Road,Sylhet.

Ph: 880-821-815844Fax: 880-821-815866

Lohagara Branch Mostafa Center, Lohagara, Chittagong.

Ph: 01711245462, 0173-111963

Dhanmondi Branch Meher Plaza,House # 13/A (2nd Floor) Road # 5.Dhaka-1205

Ph: 880-2-9664640,8653618,0447465044500474650446Fax: 880-2-9664640

Station Road Branch

Station Road BranchMohiuddin Market170, Station RoadChittagong.

Ph: 88-031-2850934,2850935, 06074487118Fax: 88-031-2850936

Bashundhara Branch

Plot # 25, Block-A, Avenue RoadBashundhara R/ADhaka.

Ph: 880-2-8835321,8835322 Fax:

Rajshahi Branch Ahmed Plaza, Alu PattiRajshahi

Ph: 880-721-812503-4Fax: 880-0721-812502

Khulna Branch Al-Mashah Complex44, Mojid SaraniKDA Avenue (Shib Bari Mor).Khulna

Ph: 88-041-2830134-7Fax:

Chatkhil Branch Holding No. 3147Khipara Road Chatkhil BazarChatkhil, Noakhali.

Ph: 03222-75179Fax: 03222-75179

EPZ Branch Zone Service Complex (Ground Floor)CEPZ,Chittagong

Ph: 031-800406Fax: 031-801391

Mohakhali Branch 82,Mohakhali C/ADhaka-1212

Ph: 02-8857236,857036Fax:

Mirpur Branch Nishi Plaza Plot No: 1, Avenue: 4 Section: 6, Block: C Pallabi, Mirpur Dhaka-1216.

Ph: 9013814, 9013841, 9013844 Fax: 880-2-9012122

Anderkilla Branch 184,J.M Sen AvenueAnderkillaChittagong

Rohitpur Branch Rima PlazaRohitpur BoardingKeranigonj, Dhaka

Ph: 880-2-7766677Fax: 880-2-77666600

Bogra Branch Jamil Shopping Centre,Baragola, Bogra

Ph: 880-51-51642-4Fax: 880-5178641

Jessore Branch Jess Tower (1st Floor)39/M.K. Road,Jessore.

Ph: 0421-67728,67748,67783,67784Fax: 0421-67738

Bahadderhat Branch

Mamtaz Tower 4540,Bahadderhat, Chittagong.

Ph: 031-2553741-44,Fax: +88-031-2553745.

BALBBDDH018

Shantinagar Branch Treasure Island,42/43, SiddeshwariCircular Road,Dhaka-1217

Ph: 88333978Fax:

Tongi Branch

Mariom Tower (1st floor) 13 Anarkoli Road Tongi Bazar Tongi, Gazipur

Ph: 9816303-5Fax: 880-9816306

Authorised Dealer Branches

Authorized Dealer Branches

Branch Name Address Location/

District Swift Telephone/Fax Email

Agrabad Branch

69, Agrabad C/ A Chittagong

Agrabad,Chittagong-4100

BALBBDDH005

880-31-714665,724876, 714703,Fax:880-31-714548

[email protected]

Corporate Branch

Noor Tower (1st floor) 73, Sonargaon Road (1/F Free School Street)

Sonargaon Road,Dhaka-1205

BALBBDDH 880-2-9674501,9674502,Fax:880-2-9566223

Principal Office Branch

111-113, Motijheel C/A Motijheel,Dhaka-1000

BALBBDDH003

880-2-9571450, 9571451Fax:880-2-9566223

Gulshan Branch

Bay’s Gallaria (Ground Floor), 57, Gulshan Avenue.

Gulshan,Dhaka-1212

BALBBDDH004

880-2-8828103, 8828179Fax:880-2-8816739

MCB Dilkusha Branch

4 Dilkusha C/A Dilkusha,Dhaka-1000

BALBBDDH008

880-2-9568871 - 3Fax:880-2-9563649

Scotia Branch

32, Kazi Nazrul Islam Avenue, Karwan Bazar.

Karwan Bazar,Dhaka-1212

BALBBDDH 880-2-8110161, 8125011Fax:880-2-9123077

MCB Banani Branch

A. R. Tower,24 Kamal Ataturk Road

Banani,Dhaka-1213

880-2-9885610, 9889104Fax:880-2-9889104

MCB Sk. Mujib Road

Branch

7, Sk. Mujib Road Agrabad C/A

Agrabad,Chittagong-4100

BALBBDDH009

880-31-715125 - 7Fax:880-31-710352

[email protected]

Khatunganj Branch

273/268,Khatunganj

Khatunganj,Chittagong-4000

BALBBDDH013

880-31-610036, 638013Fax:880-31-632905

[email protected]

Mitford Branch

Bismillah Tower 147/148, Mitford Road

Mitford Road,Dhaka-1100

880-2-7320620 - 1Fax:880-2-731499

Uttara Branch

House # 79A,Road #07

Uttara Model Town,Dhaka-1230

880-2-8957427 - 9Fax:880-2-8957431

North South Road

Branch

89 Shaheed Syed Nazrul Islam Shoroni

North South Road,Dhaka-1100

880-2-9563768 - 69Fax:880-2-9563223

CDA Avenue Branch

665 CDA Avenue East Nasirabad

East Nasirabad,Chittagong-4200

880-31-843640Fax:880-31-843640

Station Road

Branch

Station Road Branch Mohiuddin Market 170,

Station Road,Chittagong

88-031-2850934, 2850935, 06074487118

Fax:88-031-2850936CEPZ Zone Service Complex

(Ground Floor), CEPZCEPZ,Chittagong

031800406, 01713108867, 01720299899Fax:031801391

Mirpur Branch

Nishi Plaza(1st Floor), Plot-1, Avenue-4, Block-c, Sec-6, Pallabi, Mirpur.

Mirpur.,Dhaka-1216

8031177

Anderkilla Branch

184,J.M Sen Avenue (Opposite Chittagong City Corporation) Anderkilla,Chittagong

Anderkilla,Chittagong

(031) 2854881,2854882,2854883

Rohitpur Branch

Rima Plaza,Rohitpur Boarding, Keranigonj, Dhaka.

Keranigonj,Dhaka

7766677, 01715496888Fax:88-02-7766600

Rural Branches

Rural Branches

Branch Name Address Location / District District Tel / Fax

Malkhanagar Branch

Union Parishad Bhaban Taltola Bazar Malkhanagar. Malkhanagar Munshigonj 0171 - 831040

Tarail Branch Tarail Bazar Tarail Bazar Kishoreganj 0171 - 403322

Ashulia Branch Chowdhury Plaza (1st Floor) Zamgara Bazar, Ashulia. Savar Dhaka 011-816786,

0174 - 017309Lohagara Branch Mostafa Center Lohagara Chittagong 0171-245462,0173-

111963

Bashundhara Branch

Plot No#25,Block-A,Avenue Road,Bashundhara R/A, Dhaka,Bangladesh.

Dhaka 880-2-8835321,8835322

ChatkhilKhilpara Road, Holding No.3147, Chatkhil Bazar, Chatkhil.

Chatkhil Bazar Noakhali 01818090892, 01721931881

Rohitpur Branch

Rima Plaza, Rohitpur Boarding, Keranigonj, Dhaka. Keranigonj Dhaka

7766677, 01715496888,Fax: 88-02-7766600

Branches with ATM Service

Branches With ATM ServiceBranch Name Address Location /

District Swift Tel / Fax

MCB Dilkusha Branch

4 Dilkusha C/A Dilkusha, Dhaka - 1000 BALBBDDH008 880-2-9568871 - 3,

Fax:880-2-9563649

Scotia Branch 32, Kazi Nazrul Islam Avenue, Karwan Bazar.

Karwan Bazar,Dhaka - 1215

BALBBDDH880-2-8110161, 8125011, Fax: 880-2-9123077

Sylhet Main Branch 60 NILOY, Dargah Gate Dargah Gate,

Sylhet - 3100

880-821-722616, 712256, Fax: 880-821-722616

MCB Banani Branch

A. R. Tower 24 Kamal Ataturk Road

Banani, Dhaka - 1213

880-2-9885610, 9889104, Fax: 880-2-9889104

Ashulia Branch

Chowdhury Plaza (1st Floor) Zamgara Bazar, Ashulia Savar, Dhaka 011-816786,

0174 - 017309

Dhanmondi Branch

Meher Plaza House # 23A (Old), Road # 13 ( New)

Dhanmondi, Dhaka

880-2-9664640,8653618, Fax: 880-2-9664640

Bashundhara Branch

Plot No#25,Block-A,Avenue Road,Bashundhara R/A, Dhaka,Bangladesh

Bashundhara, Dhaka

880-2-8835321,8835322

Mohakhali Branch

82, Mohakhali Commercial Area, Dhaka – 1212

Mohakhali, Dhaka - 1212

8857236, 8857036,01713041304

Anderkilla Branch

184,J.M Sen Avenue (Opposite Chittagong City Corporation) Anderkilla,Chittagong

Anderkilla, Chittagong

(031) 2854881,2854882,2854883

Bogra Branch Jamil Shopping Centre, Baragola, Bogra

Baragola, Bogra

051-51642-4, Fax: 88-051-78641

Jessore Jess Tower (1st Floor), 39/M.K. Road, Jessore Jessore

88-0421-67728, 88-0421-67783-84, Fax: 88-0421-67738

Branches with Locker Service

Branches With Locker Service Branch Name Address Location /

District Swift Tel / Fax Email

Gulshan Bay’s Gallaria Gulshan, BALBBDDH0 880-2-8828103,

Branch (Ground Floor), 57, Gulshan Avenue. Dhaka - 1212 04 8828179, Fax: 880-

2-8816739

Sylhet Main

Branch

60 NILOY, Dargah Gate

Dargah Gate, Sylhet -3100

880-821-722616, 712256, Fax: 880-821-722616

MCB Banani Branch

A. R. Tower 24 Kamal Ataturk Road

Banani, Dhaka - 1213

880-2-9885610, 9889104, Fax: 880-2-9889104

MCB Sk. Mujib Road

Branch

7, Sk. Mujib Road Agrabad C/A

Agrabad, Chittagong – 4100

BALBBDDH009

880-31-715125 - 7, Fax: 880-31-710352

[email protected]

Uttara Branch

House # 79A, Road #07

Uttara Model Town, Dhaka – 1230

880-2-8957427 - 9, Fax: 880-2-8957431

CDA Avenue Branch

665 CDA Avenue East Nasirabad

East Nasirabad, Chittagong – 4200

880-31-843640, Fax: 880-31-843640

Mohakhali Branch

82, Mohakhali Commercial Area, Dhaka – 1212

Mohakhali, Dhaka - 1212

8857236, 8857036, 01713041304

Mirpur Branch

Nishi Plaza(1st Floor), Plot-1, Avenue-4, Block-c, Sec-6, Pallabi, Mirpur.

Mirpur, Dhaka -1216 8031177

Departments

With the view to ensure systematic operation and to promote customer services of the bank, the

following job allocations have been made among all the Officers which will come enforce with

immediate effect.

Manager & Sub Manager

Branch Operation as Sub-Manager.

Custodian of Safe Key (Volt).

Custodian of Securities relating to Loan & Advance Department.

Supervision & preparation of Loan Proposals, Sanctions, Documentation, Disbursement,

Recovery etc. with the consultation of Mr. Sarder Nazrul Islam, First Asstt. Vice President &

Manager.

Supervision of preparation and submission of all periodical statements relating to Loans &

Advances Department, General Banking and others.

Correspondence with Head Office & others.

Custodian of Booklet of Authorized Signatures (BAL) & Test Key.

Dealing In-Charge: Loans & Advances Department.

Dealing In-Charge: Locker Operation.

Custodian of all Corporate Office circulars/manuals/guide books/branch files etc.

Maintenance of Printed & Security Stationeries & consumption thereof.

Foreign Exchange

In charge Foreign Exchange Department.

Joint Custodian of Safe Key (Volt).

Processing of opening L/Cs,Lodgment of Documents, Issuance of EXP, Preparation of

Export Documents, Issuance of Shipping Guarantee, Returns to Bangladesh Bank,

Foreign Remittance, Marketing & Deposit Mobilization.

Preparation of Loan Proposals, Sanctions, Documentation, Disbursement, Recovery etc. jointly

with Mr. Sudev Biswas, Senior Officer & Mr. Milton Roy, Sub-Manager.

Correspondence with Head Office & others.

Dealing Officer Loans & Advances Department.

Joint Custodian of all Security Stationary.

Deposit mobilizing & marketing.

Credit & Loan

Joint Custodian of Securities relating to Loan & Advance Department.

Preparation of Loan Proposals, Sanctions, Documentation, Disbursement, Recovery etc.

jointly with Mr. Md. Rabiul Islam, Executive Officer.

Preparation of all periodical statements relating to Loans & Advances & others

Dealing Officer all types of Loans & Advances Department,

Accounts & General Banking

Dealing In-Charge: Accounts & General Banking.

Checking of daily vouchers & posting in the voucher register.

Preparation of all periodical statements relating to General Banking, Accounts & others

(SBS-01, SBS-02, Weekly Position, Bangladesh Bank Position etc.)

Issuance & Maintenance of T.T/ D.D/P.O.

Issuance & Maintenance of BASP/FDR/Other Special Deposit Schemes.

Regularization of all account opening forms.

Maintenance & vouchers passing against on line (Transfer) transactions.

Reconciliation of daily statement of Bangladesh Bank & Other Bank.

Passing of Monthly Salary/Bonus/Expenses/Provision vouchers etc.


Cash

Dealing In-Charge: Cash Department. (Supervision of receive, payment, sorting, stitching,

posting etc.)

Joint Custodian of Safe Key.

Cash Remittance to & from Sonali Bank & Bangladesh Bank, Counting, Cash withdrawal & other

relative works.

Preparation of daily cash position.

Preparation of all periodical statements relating to Cash Department & others (CTR, STIR etc.)

Maintenance & voucher passing against on line (Cash) transactions.

ATM Box Monitoring & Supervising.

Cash Receive/Payment. (Having necessary posting/passing).

Cash sorting, stitching, peasting etc.

Customer Service

Clearing

Bills both inward & outward.

Issuance & Maintenance of T.T/ D.DlP,O.

Issuance & Maintenance of BASP/FDRIOther Special Deposit Schemes.

Account Opening.

Issuance of Cheque Book.


Preparation of all consumer credit scheme & attests with Mr. Sudeb Biswas as credit

Assistant.


Teller.

Clearing

Bills both inward & outward.

Issuance & Maintenance of T.T/ D.D/P.O.

Issuance & Maintenance of BASP/FDRIOther Special Deposit Schemes.

Account Opening.

Issuance of Cheque Book.


Credit Card & ATM Card issue, Monitoring, Supervising & Recovery.


Locker Operation as assistance of Mr. Milton Roy.

ATM Box Monitoring & Supervising.

Receptionist

Attending reception desk.

Dispatch both inward & outward.


Credit Card & ATM Card issue, Monitoring, Supervising & Recovery.

Locker Operation as assistance of Mr. Milton Roy.

Performance

International Division

Nostro Accounts: A bank who maintains the account with foreign bank is called the nostro account. It means our account with them. Suppose Bank Asia maintains an account with ICICI Bank Mumbai. This account is called the nostro account.

Financial institutions with which Bank Asia maintains account.

SLNO

Currency

Bank- City Country Opening date Date ofReporting toBangladesh

Blank

A/C NO

1. USD AMEX NEW YORK USA 22.12.99 17.07.01 10700-001

2. USD SCB NEW YORK USA 26.12.99 17.07.01 10700-0023. USD CITY BANK

NANEW YORK USA 19.12.99 170701 10700-003

4. USD HAB NEW YORK USA 15.05.01 17.07.01 10700-0185. USD HSBC NEW YORK USA 30.03.04 19.0504 10700-0216. ACUDAB BANK LTD MUMBAI INDIA 21.12.99 17.07.01 10700-009

7. EURO CITY BANK NA

LONDON ENGLAND

15.03.00 17.07.01 10700-0108. USD MASHREQ

BANKNEW YORK USA 10.03.00 17,07,01 10700-012

9. CHF CREDIT SUISSE

ZURICH SWITZERLAND

06.03.01 170701 10700-013

10. CAD BNS TORONTO CANADA 20.0201 17.0701 10700-01411.EURO COMMERZ BERLIN GERMAN

Y15.06.00 17.07.01 10700-015

12. GBP NATWEST LONDON ENGLAND

26.01.01 17.0701 107W-01713.EURO HYPOVERIEBS

RANKBERLIN GERMAN

Y14.01.01 2301.02 10700-020

14.ACUD HABIB BANK KARACHI PAKISTAN

24.09.01 25.09.01 10700-01915. AUD HSDC SYDNEY AUSTRAL

IA03.05.04 28.06.04 10700-022

16.ACUD ICICI BANKLTD

MUMDAI IDNIA 04.09.04 120904 10700.023

17.ACUD BNB THIMPl1 BHUTAN 18.05.05 31.05.05 10700-02418.ACUD MCD BANK

LTDCOLOMBO SRILANK

A240505 31.05.05 10700-25

19.ACUD MCD BANK LTD

KARACHI PAKISTAN

2405.05 OLD 107W-028

20.ACUD SCB MUMBI INDIA 21.09.05 21 11.05 10700-02621. JPY UBAF TOKYO JAPAN 140.03.06 18.06.06 10700-02722. USD WACHOVIA NEW YORK USA 01 03 08 11.03 OR 107(N).029

Balance with Other banks –Outside Bangladesh (Nostro Account)As at 31 December 2008

Name of the Bank Account Type

2008 2007Curren

cy Type

FC amount

Exchange Rate

Equivalent Taka

FC amount

Exchange Rate

Equivalent Taka

Interest Bearing:Standard Chartered Bank, New York CD USD 758153.31 70.00 53070732 1021375.96 70.00 71496317Citibank Na, London CD EURO 9876.28 90.00 888865 925.59 90.00 83303Citibank Na, New York CD USD 8097.87 70.00 566851 424166.20 70.00 29691634Citibank Na, London CD GBP 1884.45 130.00 244979 45833.29 130.00 5958328Mashreqbank psc, New York CD USD 22127.91 70.00 1548954 14427.21 70.00 1009905National Bank plc,London CD GBP 26149.88 130.00 3399484 3368.46 130.00 437900Habib American Bank, New York CD USD 616886.00 70.00 43182020 124553.24 70.00 8718727Standard Chartered Bank, Mumbai CD ACU 365426.87 70.00 25579881 165297.13 70.00 11570799

128481766 128966913

Non Interest Bearing:AB Bank Ltd, Mumbai CD ACU 395363.36 70.00 27675435 80732.19 70.00 5651253American Express Bank Ltd,New York CD USD 17400.11 70.00 1218008 477767.66 70.00 33443736Credit Suisse First Boston, Zurich CD CHF 1366.45 50.00 68323 6353.2 50.00 317660Bank of Nova Scotia, Zurich CD CAD 5920.6 55.00 325633 3996.95 55.00 219832Commerzbank AG, Frankfurt CD EORO 6062.8 90.00 545652 174233.97 90.00 15681057Habib Metropolitan Bank Ltd, Karachi CD ACU 120092.92 70.00 8406504 6299.49 70.00 440964Hypo Vereinsbank, Munich CD EURO 1640.51 90.00 147646 778.41 90.00 70957HSBC, New York CD USD 383954.99 70.00 26876849 812798.04 70.00 56895863HSBC Australia Ltd, Sydney CD AUD 5418.42 50.00 270921 4366.08 50.00 218304ICICI Bank Ltd, Mumbai CD ACU 1058010.46 70.00 74060732 17923.89 70.00 1254672

Bhutan National Bank Ltd, Thimphu CD USD 120400.00 70.00 8428000 42850.00 70.00 2999500Muslim CommercialBank Ltd,Colombo CD ACU 38907.74 70.00 2723542 352822.76 70.00 24697593

Muslim Commercial Bank Ltd, Karachi CD ACU 138925.80 70.00 9724806 99880.00 70.00 6991600Nepal Bangladesh Bank, Kathmandu CD ACU 123420.32 70.00 8639422 … … …Wachovia Bank N.A, New York CD USD 40237.44 70.00 2816621 … … …UBAF, Tokyo CD JPY 1934958.00 .55 1064227 1466032.73 .55 806318

172992321 149689309

301474087 278656222Vostr'o Account: It means their account with us. If the foreign bank like ICICI Bank Mumbai maintains an account with Bank Asia Dhaka then this account is called Vostro Account.

Financial institutions which maintain an account with Bank Asia.

SI. NO Currency Bank City Country

1 USD MUSIL COMMERCIAL BANK

KARACHI PAKISTAN

Foreign Exchange Operation Remittance of mounds:

With a network of their branches spread over the entire country banks are very suitable institutions for the remittance of funds from one place to another bank remittance are safe, swift, cheaper and simple.

Inward and Outward Foreign Remittance:

The term "inward remittance" includes not only remittances received by SWIFT, IT NT etc. but also purchase of bills, traveler cheques

etc. inward remittance in foreign currency comprises the following inflow.

I. Remittance received by drafts and mail transfer.

2. Remittance received by SWIFT/secured mail/web mail transfer.

3. Remittance received by telegraphic transfer and

4. Purchase of bills and travelers cheques.

As per existing exchange control regulation in Bangladesh inward remittance equivalent to US dollar 2,000 and above, should be reported on prescribed from "From C". Bangladesh bank has allowed to the effect that declaration in "From-C" will not be required by the beneficiary in Bangladeshi against any remittance sent by any Bangladeshi national working abroad. Therefore, the A/D branches, before disbursement or the remittance, shall obtain Payment of Drafts and Mail Transfer:

A. Before payment or any draft and mail transfer in foreign currency the A/D branch must observe the following procedures:

1. AID branch shall examine whether the draft/mail transfer has been properly drawn on them.

2. The signatures appearing on the instruments must be verified by the A/D branch.

3. A/D branch shall ensure that there is no alteration or tempering in the body of thc draft/MI'.

4. The A/D branch should also ascertain whether cover has been credited to the nostro account of the head office against such draft/mail

transfer.5. Conversion of the foreign currency into taka be made by applying rate of the bank

Before disbursement of any Authenticated mail/SWIFT/Telegraphic transfer received from foreign correspondent the A/D branch shall ensure

that:

1. An authorized officer of the A/D branch has authenticated the test appearing in tile T.T. message.

2. The T.T. has been received through the mail/SWIFT/telex machine of the A/D Branch. After being satisfied on the authenticity of the

instrument /1/D branch shall disburse the same.

Payment of Taka Draft Issued by Foreign Bank/Exchange Companies:In the financial year 2005-2006, inward foreign remittance (wage earners) of taka = 3,22,75G.80 million was received in Bangladesh remitted by

different banks and exchange companies the commercial banks in Bangladesh conclude taka drawing arrangements with different

banks/exchange companies subject to prior approval of Bangladesh bank. The exchange companies, as per arrangements, draw taka drafts on

the nominated branches of the banks Bangladesh. They remit cover of their drawings in US dollar/pound sterling through the new

York/London correspondents as per arrangement for credit to the head office account of the banks in Bangladesh. The bank purchases such

US/dollar/pound sterling cover fund and credits the taka proceeds to the taka account of the exchange companies maintain with the banks.

Taka drafts issued by banks/exchange companies (located outside Bangladesh) are being declaration from the beneficiary in a prescribed from

"From-C", where applicable

paid by debit to the taka account of the exchange companies provided the instruments are found

otherwise in order.

Outward Foreign Remittance

All remittance from Bangladesh to a foreign country or local currency credited to nonresident taka

account of' foreign banks or convertible taka accounts constitute outward remittance of foreign

exchange. Any person who wishes to purchase foreign exchange must lodge an application for the

purpose on a prescribed from with an authorized dealer branch. There arc two types of application

forms for outward remittance -"1MP from" and IM from".

A. IMP from is designed to cover remittances for payment of import obligation.

B. TM from arc designed to cover all other types of remittances other than imports.

Outward remittance may be made only by the A/D branches by method appropriate to the country to

which remittance is authorized. Most the outward remittances are approved by THC authorized dealer

on behalf of Bangladesh bank due to delegation of authority by Bangladesh bank to A/D branches.

Only a few remittances of special nature require Bangladesh bank's prior approval.

On receipt of the application in the prescribed from, the authorized dealer branch may affect the sale of'

foreign exchange if they are empowered to approve the application on behalf of Bangladesh bank;

otherwise prior approval of Bangladesh bank is to be obtained. If the transaction requires prior

approval of Bangladesh bank, the form should be forwarded by the A/D branch to Bangladesh bank for

consideration. The customers are not generally allowed to submit any application to Bangladesh bank

directly. Onward remittance if favor of beneficiaries outside Bangladesh may be made in any of the

following manners:

A. By issuing demand draft.

B. By Issuing Mail Transfer

C. By issuing SWIFT/Telegraphic Transfer

D. By issuing Travelers cheques for travel purpose

Other Outward Commercial Remittance Other Than Imports:

A/D branches are allowed to effect the following types of outward remittances without prior

permission of' Bangladesh bank subject to the fulfillment of formalities mentioned at chapter 16, 17, 18

and 19 of guidelines for foreign exchange transaction :

Remittance of royalty and technical fee if it does not exceed 6 of cost of imported machineries.

Remittance of profits of branches of foreign firm other than financial institutions.

Remittance of profits of sterling Tea Estate Companies.

Remittance of profit of banks, insurance companies and other financial institutions

Remittance of subscription to foreign media service.

Remittance of cost/fees for renter monitors.

Remittance of membership fee of foreign professionals and scientific institutions for

application, registration, admission, examination of TOEFL, SAT etc.

Remittance of freight and passage collections by branches or agents of foreign airlines and

shipping companies.

Remittance of surplus carryings of foreign airlines and shipping companies.

Remittances of surplus earnings of courier companies.

Remittances against export claims (short weight claims, quality claim).

Release of Foreign Exchange for Travel Abroad:

The At) branch may release the following amount of foreign exchange to ally 13,1nglaclc,tilt national for

travel purpose during a calendar year as tinder :

A. For visit to SAARC member countries and Myanmar: if travel is made by road, yearly Quota is US

$ 500 per person and if travel is made by air yearly Quota is US $ 1,000 (cash US $ 500 and

balance in T/C).

B. For visit to other countries (other than SAARC countries and Myanmar) yearly Quota is US $

3,000 per person. - cash US $ 500 and balance in T/C

But is both the cases (A and B above), cash FC notes up to US $ 200 can be issued by AD branch Without

visa and cash FC notes up to US $ 500 be issued after production or visa.

Requirement:

A. Valid passport of the passenger with visa.

B. Confirmed air ticket.C. T/M from duly filled in and signed by the passenger photocopy of the passport of the assignor,

photocopy of the valid ticket Along with T/M from duly filled in and signed but the passenger will

be retained by AD branch.

Student Files:

Foreign exchange may be released by the Ads for admission and study by Bangladesh nationals in regular

courses in recognized educational institutions abroad subject to verification of bonfires according to the

following drill:

(A) Application and Required Papers:

i. . Application duly filled in

ii. Original and photocopy of admission letter issued by the educational institution in favor of thc

student (such as the 1-20 in tile case of US institutions);

iii. Original and photocopy of estimate relating to annual tuition fee, broad and lodging, incidental

expenses etc. issued by the concerned educational institution (1-2 in case of US institutions)

iv. Attested copies of educational certificates of the applicant; and

v. Valid passport.

(B) Examination and Processing by AD

i. After Scrutinizing the application and the supporting documents submitted the AD shall issue

foreign exchange as per estimate furnished by the educational institution subject to

adjustment with the travel entitlement. On application from the concerned student, expenses in

transit not exceeding US dollar 200 or its equivalent in other freely convertible currency may be

allowed out of travel entitlement described in Para I of chapter 19 of `Guidelines of Foreign

Exchange Transactions, 1996, volumc-1'.

ii. In each case of sale of foreign exchange, the front page of the original letter of

estimate/acceptance letter issued by the concerned educational institute should bear clearly tile

round stamp of the foreign exchange issuing bank branch and also tile signature of the officer of

the said branch.

iii. After verifying the original copies of papers referred to in Para 10(A) above, the foreign exchange

issuing ADs would attest the photocopy thereof and preserve the same. Thereafter the original

copies would be returned to the applicant.

iv. Foreign exchange payable to the educational institution should be issued in favor of the institution

concerned in the form of TT/MT/Draft. If payment on account of board and lodging/ incidental

expenses etc. are not required compulsorily to be in favor of tile educational institution, foreign

exchange on these counts may be issued in favor of the student in the form of TC/Draft etc.

Educational institutions sometimes require applications to send advance amounts for processing

of applications; retention of seats etc, if the papers of the foreign educational institutions clearly

state such requirement, advance remittance may be affected.

v. The facility of purchase o1'foreign exchange/ remittance will not be admissible for more than one

academic year at a time.

vi. For each release of foreign exchange subsequent to the first release, then current progress report

and current estimate of the educational institution should take into consideration. The Ads shall

maintain separate file for each student with al relevant papers in readiness for perusal by

inspecting officials of Bangladesh bank.

vii. All purchases of foreign exchange throughout the entire duration of a course of' study pursued

aboard should be from one AD bank branch. For any intended change in this respect, the relevant

file shall be transferred direct to the concerned new AD branch on written request by the student.

Under no circumstances should the file be tile handed over to the student

Traveler Cheques:

A traveler cheque is another instrument issued by banks for the remittance of money from one place to

another. It is issued for the convenience of the traveling public. When a person wants to travel without

taking the risk of carrying cash with him he may avail of tile facility of traveler cheques.Loss of Traveler

Cheques:

A traveler cheque is encashable only when the payee countersigns the same in the presence of the paying

banker. In case it is lost without his counter-signature, tile traveler cliques can not be encashed easily by

the finder because to forge the signature of the payee in the presence of the paying banker is not any

easy task. The banker refunds the amount such traveler cheque to its purchaser.

The purchaser of a traveler cheque may default in fulfilling his own duty to sign in the presence of the

paying banker and thereby the cheque may be enchased by some one else. In an American case,

Emerson vs. American express company the purchaser of .the traveler cheque countersigned them as

against the rules and thereafter some of them were stolen and enchased. The purchaser sued the

issuing banker for wrongly enchasing the clique. But the counter held that the purchaser had

committed a breach of the contract with tile bank and the letter was not derelict in its duty for not

sending notice of loss of such clique to every branch of the bank and other establishment. The

purchaser's claim against tile bank was, therefore, rejected. On tile other hand, if the signature of the

purchaser on the traveler cheque is forged and payment has been made by the bank, it would be

considered negligence on the part of the bank and it will be held responsible for tile same.

Foreign Exchange Risk:

Foreign exchange risk arises from adverse movement of exchange rate when the Bank has positions in

foreign currencies. It is defined as the deviation in earnings arising due to unfavorable changes in

exchange rates. The Treasury Department, where foreign exchange is arises, has been restructured by

operationally and physically segregated front office and back office. The department has also been

equipped with better human and technical resources following the central bank guidelines

Money Laundering:

A definition of what constitutes the offence of money laundering under Bangladesh law is set out in

section 2 ('Iha) of thc prevention of money laundering act 2002 (act No. 7 of 2002) which is reads as

follows: "Money Laundering Means:

(Au) properties acquired or earned directly or indirectly through illegal means;

(Aa) illegal transfer, conversion, concealment of location or assistance in the above act of the

properties acquired or carried directly of indirectly through legal or illegal means;"

Another declination or Money Laundering under US law is, "... The involvement in any one transaction

or series of transactions that assists a criminal in keeping, concealing or disposing of proceeds derived

from illegal activities."

Why Money Laundering Done?

1. Money represent tile lifeblood of the organization that engage in criminal conduct for financial gain

because it covers operating, replenishes inventories, purchase the services of corrupt officials to

escape detection and further the interests of the illegal enterprise, and pays for an extravagant

lifestyle's spend money in these ways, criminals must make tile money they derived illegally appear

legitimate.

2. A trail of' money from an offense to criminals can become incriminating evidence. Criminals must

obscure or hide the source of their wealth or alternatively disguise ownership or control to ensure

that illicit proceeds are not used to prosecute them.

3. File proceeds from crime often become the target of investigation and seizure. To shield ill-gotten

gains from suspicion and protect them from seizure, criminals must conceal their existence or,

alternatively, make them look legitimate.

Why we Must Combat Money Laundering?

1. Money laundering has potentially devastating economic, security, and social consequences. Money

launderings a process vital to making crime worthwhile. It provides the fuel for drug dealers,

smugglers, terrorists, illegal arms dealers, corrupt public officials, and others to operate and

expand their criminal enterprises.

2. Money laundering diminishes government tax revenue and therefore indirectly harms honest

taxpayers. It also makes government tax collection more difficult.

3. Money laundering distorts asset and commodity prices and leads to misallocation of resources.

4. One of the most serious microeconomic effects of money laundering is felt in the private sector.

Money launders often use front companies, which co-mingle the proceeds of illicit activity with

legitimate funds, to hide tile ill-gotten gains. These front companies have access to substantial

illicit funds, allowing them to subsidize front company products and services at levels well below

market rates.

5. No one knows exactly how much "dirty" money flows through the world's financial system every

year, but the amounts involved are undoubtedly huge. Tile international; money fund has estimated

that the magnitude of money laundering between 2 and 5 percent of world gross domestic product, or

at least USD 800 billion to USD 1.5 trillion. In some countries, these illicit proceeds dwarf

government budgets, resulting in a loss of control of economic policy by governments. Indeed, in

some cases, the sheer magnitude of the accumulated asset base of laundered proceeds can be

used to corner markets-or even small economics.

6. Among its other negative socioeconomic effects, money laundering transfers economic power from

the market, government, and citizens to criminals.

7. The social and political costs of laundered money are also serious as laundered money may be used to

corrupt national institutions. Bribing of officials and governments undermines the moral fabric in

society, and, by weakening collective ethical standards, corrupts our democratic institutions.

8. Nation cannot afford to have their reputations and financial institutions tarnished by an association

with money laundering, especially in today's global economy.

9. It is generally recognized that effective efforts to combat money laundering cannot be carried out

without the co-operation of financial institutions, their supervisory authorities and the law

enforcement agencies. Accordingly, in order to address the concerns and obligations of these three

parties, these guidance notes were drawn up.

Money Laundering Risk:

In order to combat money laundering risk, Bangladesh Bank preached the awareness of money

laundering issues across the country especially the rural areas and selected some banks for certain

areas for spreading tile awareness. Bank Asia was selected for Kishoregonj district and the bank

organized two-day long workshop where 83 participants from 80 branches of different banks

participated. More manpower was shaped during the year within the Bank to strengthen the

compliance system, and Branch Compliance Officers designated in all the branches are

independently reviewing and verifying the account transactions to locate any suspicious transaction.

An updated Anti Money Laundering Manual was prepared and distributed to all the branches. In

addition, the Department began an audit on Anti Money Laundering compliance’s in the branches.

Transaction profiles of our customers are embedded into the Stelar Online Banking Software which

helps in preventing illegal transactions.

One of the important functions of the commercial banks in the world is to undertake import of

merchandise into the country and payment of foreign exchange towards the cost of the merchandise to

the foreign suppliers.

Un almost all the countries of the world there is import trade control in one form or the other which

supervises the import into the country and controls certain items of exports depending upon national

exigencies.

Bangladesh, the import of goods is regulated by the Ministry of Commerce in terms of the Import and

Export (Control) Act, 1950; with Import policy orders issued biannually, and Public Notices issued from

time to time by the Chief Controller of Imports and Exports (C.C.I&E).

According to tile Imports and Exports Act, 1950 as adopted in Bangladesh, any one willing to carry

import business needs registration with the licensing authority, i.e., Chief Controller o1' Imports and

Exports (C.C.I&E) and its offices at the important trade centers of the country.

Foreign exchange department of national bank is one of the most important department of ail

department this department handles various types of activities by two separate sections.

i. Import Section

ii. Export Section.

Import Section

The function of this section is mainly to deal with various components such as:

Letter of credit (L/C).

Payment against document (PAD).

Payment against trust receipt (PATR).

Load against imported merchandise (LIM).

The followin5 documents are required to be submitted the licensing authority for registration as

importers.

1) Questionnaire form duly filled in and signed.

2) Income tax registration certificate.

3) Trade License from the Municipal or Local Authority.

4) Bank Certificate.

5) Nationality certificate.

6) Partnership Deed where applicable.

7) Certificate of Registration with the Register of Joint Stock Companies and

memorandum & Articles of Association in case of Private and Public Ltd. Co.

8) Certificate from the chamber of Commerce/ Registered Trade Association.

9) Ownership documents or rent receipts of the place of business.

10) Any other documents required under the relevant import policy.

The IRC is a security document issued under embossing seal and duly signed by the authorized

officials of C.C.I & E and to be kept under safe custody. The IRC is required to be renewed every

year on payment of usual fees.

Licensing for Imports:

Most imports into Bangladesh require a license from the licensing authority. Commercial banks have

been entrusted with responsibility of licensing imports in both industrial and commercial sectors.

The following documents arc required to be submitted by the importer to his banker for licensing:

1) The LCA form properly filled in quintuplicate signed by the importer.

2) L/C Application duly signed by the importer.

3) Purchase contract, i.e., indent for the goods issued by an indenture or Performa invoices as the

case may be.

4) Insurance cover note.

5) Membership certificate from a recognized Chamber of Commerce and Industry or Town

Association or registered Trade Association.

6) Proof of payment fees for the Import Registration Certificate.

7) A declaration, in triplicate, that the importer has paid income tax or submitted income tax return

for the preceding year.

8) In case of public Sector, attested photocopy of allocation letter issued by the allocation

authority, Administrative Ministry or Division specifying the source, amount, purpose,

validity and other terms and conditions against the imports.

9) Any such documents as may be required as per instructions issued /to be issued by Chief

Controller of Imports & Exports from time to time.

Registration of LCAF with Bangladesh Bank:

If foreign exchange is intended to be bought from the Bangladesh Bank against an LCAF it has to be

registered with Bangladesh Bank's Registration Unit located in the concerned area office of the CCI&E.

For such registration the LCAF, duly filled in signed by the importer and authenticated by the

Authorized Dealer, shall be submitted by the Authorized Dealer to the concerned registration unit.

The Authorized Dealers should ensure that this registration number of importers is a variably 1'urnished

on IMP form. Where the importer is exempted from such registration, a suitable mention of this fact

should be made on the IMP form.

After registration the original and duplicate copies of the LCAFs will be delivered to the authorized

representatives of the Authorized Dealers. The triplicate and quadruplicate copies will passed on the

concerned area office of the CCI&E and the quintuplicate will he retained by the Registration Unit.

Where no registration of LCAFs is needed, the Authorized Dealer will send the triplicate and

quadruplicate copies to the concerned area office of the CCI&E, retaining the order copies with itself.

In no case the Authorized Dealers will accept authenticated LCAFs for opening L/C direct from the

parties. Normally the Authorized Dealer issuing and authenticating an LCAF would also open the L/C

but if it requires transfer to another Authorized Dealer this should be done directly by the transferring

Authorized Dealer itself.

Letter of Credit L/C:

L/C application form is a sort of an agreement between customer and bank on the basis of which of

which letter of credit is opened. This is a printed form bearing stamps of prescribed amount in

accordance with stamp act in force. It stipulates the conditions governing the letter of Credit, containing

an understanding by the customer to make funds available in his account with the bank when bills

would be presented under credit.

Jessore BranchLC – Report (2008-2009)

No.

$ Rate BDT Country

% of Margi

n

Margin Commission

Swift Others

1 14500 69.25

100412 Bhutan

10 100000 5021 3000 350

2 10632.5

69.25

736000 India 20 148000 3682 3000 350

3 74800 69.25

5194000 Japan 20 1039000

25968 3000 350

4 62400 69.25

4322000 India 20 865000 21606 3000 350

5 8075 69.25

560000 India 20 112000 2796 3000 350

6 22000 69.25

1524000 India 20 305000 7618 3000 350

7 75021.5

69.25

5195000 China 20 1039000

25967 3000 350

8 20800 69.25

1440000 India 20 288000 7202 3000 350

9 7600 69.40

527000 India 20 106000 2632 3000 450

10 50200 69.40

3484000 India 10 348000 17419 3000 450

11 25323.2

69.40

1758000 India 20 352000 8787 3000 450

12 2007 69.40

140000 India 20 28000 696 3000 450

13 107000 69.40

7426000 Japan 20 7430000

37129 3000 450

14 107000 69.40

7426000 China 20 1486000

37129 3000 500

15 18900 69.40

1312000 India 10 132000 6558 3000 500

16 10500 69.40

729000 India 10 73000 3643 3000 500

17 87000 69.40

6038000 China 15 500000 30189 3000 350

18 1200 69.40

84000 India 10 9000 500 3000 350

19 70610 69.40

4900000 China 15 736000 24502 3000 350

20 5649.6 69.40

393000 India 20 82000 1906 3000 350

21 7366.11

69.5 512000 India 20 100000 2560 3000 350

22 50228.3

69.5 3490870 India 20 348000 8340 3000 350

23 24000 69.5 1668000 India 15 250000 36836 3000 35024 106002 69.5 7368000 China 15 110600

04103 3000 350

25 11808 69.5 821000 India 25 83000 13553 3000 35026 39000 69.5 2711000 India 10 272000 7160 3000 35027 20605 69.5 1433000 India 20 23000 6041 3000 35028 17386.

369.5 1209000 China 10 140000 1164 3000 320


969.4 1102000 India 20 110000 1353 3000 350

33 3900 69.4 271000 India 10 27000 7009 3000 35034 30200 69.4 1402000 Japan 10 140000 14314 3000 35035 41250 69.4 2863000 China 20 573000 800 3000 35036 2304 69.4 160000 India 20 32000 2280 3000 35037 6600 69.4 458000 China 20 92000 6376 3000 35038 18374.

869.4 1276000 China 10 128000 11242 3000 350

39 32400 69.4 2249000 India 25 217000 14314 3000 35040 41250 69.4 2863000 India 10 287000 17454 3000 45041 12250 69.5 851375 India 10 86000 4257 3000 45042 6865 69.5 687703 India 20 137541 3438 3000 34043 11500.

369.5 800000 India 20 195000 3996 3000 340

44 15000 69.5 1043000 India 30 313000 5212 3000 34045 16461.

069.5 1144044 India 20 228000 5720 3000 340

46 7072.5 69.5 492000 India 100 492000 1475 3000 35047 730000 69.5 2085000 India 30 626000 10425 3000 35048 8349.9

269.5 581000 China 20 116064 2801 3000 200

49 8000 69.5 556000 China 20 112000 2780 3000 20050 12240 69.5 851000 India 20 171000 4253 3000 20051 5248 69.5 365000 China 10 30000 1823 3000 45052 10273.

669.5 714015.

2China 20 143000 3570 3000 450

53 47000 69.5 3267000 India 20 327000 16333 3000 45054 22809.

669.5 1585267 India 10 159000 7926 3000 450


769.5 3039000 Japan 15 759699 15494 3000 350

59 13300 69.5 925000 India 10 138653 4625 3000 35060 18900 69.5 1313550 Japan 10 132000 6567 3000 45061 36000 69.5 2502000 India 10 625500 12510 3000 45062 13300 69.5 924350 India 15 139000 4622 3000 45063 881205 69.5 615000 India 20 123000 3073 3000 45064 42000 69.5 5004000 India 10 504400 20016 3000 45065 81200 69.5 9035000 India 10 903000 36140 3000 45066 58800 69.5 6255000 India 10 62550 2520 3000 35067 21000 69.5 1459500 India 20 292000 7298 3000 45068 73500 69.5 5108250 India 10 511000 20433 3000 45069 8000 69.5 556000 China 20 112000 2780 3000 45070 17225 69.5 97137 India 10 120000 5096 3000 45071 10690.

369.5 743000 India 25 186000 3715 3000 450

72 10363.5

69.5 721000 India 30 216000 3601 3000 340

73 16000 69.5 1112000 China 20 223000 5566 3000 35074 32368 69.5 2249576 China 20 450000 11248 3000 35075 37600 69.5 2614000 India 10 262000 130360 3000 45076 17700 69.5 1231000 India 10 124000 6150 3000 450

Types o f L/C

• Revocable irrevocable/c. Confirmed /Unconfirmed L/C. Transferable L/C. Back to back L/C. Accept L/C. Revolving L/C. Red clause L/C. Green Clause L/C.

Procedures of Opening L/C:a) Application for Opening L/CAn importer who is desirous to import goods from foreign country will apply issuing bank for

opening an L/C. the importer will provide an application mentioning the following aspects.

Full particulars of applicant's bank accounts.

Types of business.

Historical background.

Amount of required L/C limit.

Terms of 'payments.

Name of imported goods.

Repayment schedule and source of fund.

b) Documents Required for Opening. L/C

An importer or L/C opener has to submit the following documents:

Application from (provided by the bank).

Import registration certificate.

Preformed invoice.

Four set of' IMP form.

Insurance cover note.

VAT registration number.

Letter of credit authorization form

c) Examination for Opening L/C

Application must be carefully checked by the concern officer considering the facts mentioning below:

The terms and conditions of L/C applications are consistence with exchange control and import trade regulation UCPDC 500.

Illegibility of imported goods.

'I'he L/C must be opened in favor of importer.

That is signed by the importer and agreed with the terms and conditions.

Indenting registration number.

Goods are not made in Israel and vessels to be used are not of Israel.

Insurance cover note with date of shipment.

Whether IRC is up to date or not.

Whether IMP form is dully filled up and signed.

• The imported goods are marketable.

After scrutinizing all these legal aspects necessary entry is given to the margin register and

charges, commission and margin is realized.

d) Cable/Telex/Fax/Letter of Credit

In international trade, receipt of L/C by Cable /Telex/Fax is preferred by all. In that case the

whole text of UC is to be transmitted by telex/cable/fax to the advising bank by the opening

bank. If the importer desires that the L/C is to be advised by a short cable, then a short coded

cable is sent incorporating principal terms of the L/C. The cable must conclude with the words

"Airmailing details". The regular airmail L/C must state this is in confirmation of our cable

dated

e) Additional Confirmation to Import L/C

The beneficiary of' L/C may ask for the additional confirmation to a letter of credit by an

internationally reputed bank located in beneficiary's country. In that case after adding

Confirmation, tile negotiation becomes restricted to the bank who has added their confirmation

to the credit. In case there is no branch of the advising bank in the beneficiary's country, the

reimbursing bank may confirm to the advising bank that they are holding reimbursing

authority. This may also serve the purpose of adding confirmation.

Date Dr. (TK) Cr.(TK)

Party A/C Dr.S. Deposit margin on VC Cr.

XXXXXXXXXX

S. Deposit VAT on UC Cr. XXXXXS. Deposit A/C tax deducted from UC com. (imp) Cr. XXXXXIncome A/C commissions on L/C Cr. XXXXXIncome A/C Data Max. Cr. XXXXXIncome A/C Postage Cr. XXXXXIncome A/C courier charge Cr. XXXXXIncome A/C ti9iscellancous Cr. XXXXX

f) Transmitting the L/C

'File L/C is transmitted to the advising bank for advising L/C to the beneficiary’s/C is generally

transmitted through telex or fax. Before transmission a final examination of the L/C is necessary

for the issuing bank. It is customary to advice a credit to the beneficiary for receiving L/C.

g) Add Confirmation

Very often advising bank receive request from the issuing bank to add their confirmation while

advising credit to the beneficiary. the advising bank can do it is there bank prior arrangement

between advising and issuing bank or if it feels that the issuing bank is repute and reliable

institution and good enough to discharge this obligation.

h) Amendment

The letter of credit opened by a bank may need amendment. If the supplier finds that the term

of the credit cannot be complied with in full, he would arrange for necessary amendments by the

opener before the goods are shipped. These amendments must be advised by the opening bank

to the supplier through advising bank.

Sometimes the opener also may like to amend the credit after it has been advised. These

amendments may relate to the decrease or increase in amount of credit, change in foreign

currency, and change in the dates of shipment or negotiation, change in merchandise and other

terms o1'thc credit. These amendments must also be advised by the opening bank to tile supplier

through the advising or confirming bank before the shipment is made.

i ) Cancellat ion

The liability under the letter of credit is reversed as and when bills arc received and paid under it.

If, at the end of period of negotiation allowed under the credit, a portion or full value of credit is

unutilized, it is automatically cancelled. However, the date is valid for negotiation at the other

end.

j) Shipment

Import policy sets down the validity period applicable to each type of license on the basis of the

goods covered by them. Unless otherwise specified, shipment of goods shall take place within

the validity of License/LCAF.

In case of shipment made by sea the date of shipment will be the date on the Bill of Lading.In

case of imports by air, the date of the relevant consignment note/airway bill will normally be

taken as the date of dispatch, provided this represents the date on which the goods left the last

airport in the country from which the import is affected.

In case of post parcels the date of stamp of the office of dispatch on the packet or the dispatch note is taken to be the date of dispatch.

In case of imports made from countries connected with land, the date of dispatch of goods by

rail, road, or other recognized mode of transport to the consignee in Bangladesh or on

consignment basis will be taken to be the date of shipment.

k) Lodgment of Documents

After shipment of contracted goods, the supplier prepares shipping documents and presents

these to negotiating bank. On being satisfied that the documents are in order in terms of letter of

credit, the negotiating bank makes payment to the supplier by debiting the opening bank's

account.

On receipt of the shipping documents from the negotiating bank L/C opening bank should

carefully examine these to ensure that they conform to the terms of the credit.

If there be any discrepancy in the documents, the bank should immediately advise the importer

to seek his acceptance of the documents despite the discrepancy. If the importer refuses to

accept the documents, the bank should advise the negotiating bank by cable or telex for

instruction with regard to disposal of tile goods and the documents. If 110 replies are received

regarding disposal of dishonored documents, the same should be returned to the concerned bank

with the instruction to reverse the entry if the issuing bank is debited with the value of the goods.

If the documents are found in order and these are acceptable to the importer, the bank lodges the

bill in PAD (Payment against Documents).

l) Accounting Procedure at the time of Lodgment

Whether the documents are paid or dishonored, the opening bank will reverse the liability entries in their books as under:

Contingent liability reversal voucher

DR- Banks liability on L/C CR-

Customer's liability on L/C

m) Vouchers of lodgment of documents

DR- Payment against document (PAD) OrBill of exchange (B/E)

CR- Balance with Correspondent Bank account (Responding to the debitentry) Or

In case of Authorized Dealer Branch HO. General A/C is to be credited

CR- Exchange Account

n) Retirement of Import Documents

After retirement of documents by the importer, the bank will put endorsement on the draft stating

"Received Payment" under seal and signature of the bank's authorized officer. The invoice is

certified as "certify invoice value" (stating foreign Currency equivalent of Tk). The B/L is

endorsed in favor of the importer.

Before delivering the import documents to the importers the Authorized Dealer should invariably

endorse on the invoices accompanying the bills the amount in figures and words which they

have remitted from Bangladesh. In case of payment on DA terms, the amount for which the bill

has been accepted should be endorsed in the invoices.

The aggregate amount of foreign exchange sold against an LCAF whether under L/C or

otherwise, should not exceed the value mentioned in the LCAF.

In all cases of remittances for imports into Bangladesh, the importer must submit within 4

months from the dates of remittances the relevant exchange control copy of the customs bill of

entry. In case of import by post, the importer must submit the invoice certified by the customs

authorities in lieu of the exchange control copy of the bill of entry.

The Authorized Dealers will obtain invoice, in duplicate, both of which will be certified by them

as usual. After recording in the IMP form the particulars of the remittance effected, the original

copy of the IMP form along with a copy of the certified invoice shall be forwarded to the

Bangladesh Bank with the usual monthly returns.

The duplicate copy of' IMP form will be retained by the Authorized Dealer. Subsequently when

the exchange control copy of the bill of entry/customs certified invoice is submitted by the

importer, the particulars therein should be matched and checked with those in the IMP form and

invoice filed earlier, to see if the merchandise for which remittance was made has been duly

received in Bangladesh.

o) Clearance in Absence of Shipping Documents

Shipping Guarantee: It is a guarantee-cute-indemnity issued by the bank in favor of the Shipping

company on prescribed form provided by the shipping company. When shipping documents

against L/C are not received by the bank but goods have arrived at port needing immediate

clearance of the consignment to avoid demurrage, this guarantee is issued.

Procedure for issue of guarantee: Importer should submit the following documents to the bank

issue of the guarantee

i. Counter guarantee signed by the importer on prescribed form of the bank.

ii. Copy of invoice

iii. Non-negotiable copy of Bill of Lading/Airway bill etc.

iv. Deposit of 100% margin on invoice value (foreign currency converted into Taka at BC selling

rate)

p) Liability Voucher

Liability vouchers of L/C are to be reversed. Fresh voucher on liability against guarantee is to be

passed in the following way:

DR Customer's Liability on L/G

CR Banker's Liability on L/G

On receipt of documents from the foreign bank, the Bill of Lading is detached and surrendered to

the shipping company for release of guarantee.

q) Retirement Procedure for Deferred Payment of Usance Bill (D.A.)

When the draft is returned by the drawer (importer) having been duly accepted by him, the

following retirement procedure is followed:

i. The maturity date of the bill is to be worked out and noted in the PAD/BE register and also in

due date diary.

ii. The Foreign correspondent should be advised the due date of maturity and be authorized to

debit the nostro account of Authorized Dealer or to claim reimbursement on due date as per

terms of L/C from the reimbursing bank.

iii. In case of' DA. Bill, all documents except the accepted draft are delivered to the importer

against a simple receipt.

iv. The invoice is marked "Documents Delivered against Acceptance and remittance of wil1 be ................................effected on due date".

r) Bill Negotiated under Reserve or on Indemnity

Negotiation of bills under reserve or on indemnity is prevalent in international trade. When there

is discrepancy in the documents the Foreign correspondents or the banks negotiate documents

under reserve or on indemnity at the risk and responsibility of the paying bank (negotiating

bank).

On receipt of such documents the bill will be lodged and retired after acceptance from the

importer and such case must be disposed of within maximum period of 7 days.

s) Bills on Collection outside L/C terms

When a beneficiary is unable to get a bill negotiated under the L/C owing to major discrepancies,

he may request the Foreign Correspondent to send the documents on collection basis outside L/C

terms. In this connection, the procedure to be followed will be the same as stated above.

t) Import Procedure under Aid/Loan/Barter/Grant etc

The procedure for import under Aid/Loan/Barter/Grant etc. is, by and large, the same in respect

of ordinary imports as outlined above.

For tile purpose tile nominated banks in Bangladesh, a banking agreement is to be concluded with

the nominated bank of the donor country. All the transactions relating to certain loan is enrolled

through the dummy accounts opened in the respective nominated banks in tile respective

countries.

u) Barter

It is a self-balancing account in the books of designated bank wherein all the proceeds of

exports and imports arc credited and debited as the case may be and the balance, if any. Left in

the account is set off as per agreement at the end of the barter agreement.

v) Loans

Under loans the L/Cs are opened specifying the source of finance. The contract of

purchase is to be made and the L/Cs are to be opened strictly in terms of provisions made out in

tile relevant foreign exchange circular and/or loan agreement.

Export Section

The objective of the government is to encourage exports to the extent possible so as to earn

valuable foreign exchange for the country. All efforts have to be made to boost up exports of the

country. Therefore, export control is exercised over far less a number of items as compared to

import control. The control is mainly on such items which arc essentially needed in the country

whose indiscriminate exports may affect the domestic economy.

Registration:

Any firms/parties desirous of undertaking export trade are required to obtain Export Registration

Certificate (ERC) from the offices of the Chief Controller of Imports and Exports (C.C.I & E.),

Government of Bangladesh. No person is allowed to export any goods from Bangladesh to any

other country without obtaining such a certificate.

For the purpose of registration, an application in the prescribed form is required to be submitted

to the C.C.1 & E authority along with the following documents:

i) Nationality Certificate from the Local Authority.

ii) Trade license from Municipal Authority.

iii) Bank Certificate.

iv) Income Tax Certificate.

v) Registered Partnership deed in case of partnership concern, Memorandum & Articles

of' Association and Certificate of Incorporation in case of Limited Company.

vi) Copy of rent receipt of the business premises.

Export Order:

On receipt of registration, the exporter will proceed to contact the buyers directly through

correspondences or through a business visit to different foreign countries. TCB, BJMC and other

Trade Corporation sometimes secure bulk contracts and assign or allocate the contracts to the

actual exporters.

Contract:

When sale is agreed, a contract between buyer and seller is executed specifying the detail terms

about the sale, such as full descriptions and quantity of merchandise, value Of commodity

quoting its FOB, CFR, CIF, etc. with provision for payment at sight, DP, CAD, or

nuisance terms, whether inspection before shipment is necessary.

Export Letter of Credit:

When export is made against L/C, the exporter should examine the following terms of L/C to

avoid any future complicity to execute the order:

i) The terms and conditions of L/C are definite, clear and explicit and also in

conformity with those of the contract.

ii) The L/C should be an irrevocable one and be confirmed by the advising bank.

iii) If the import of goods is under control in buyer's country, the buyer holds a valid

import license.

iv) If the L/C is transferable or otherwise, it should be clearly mentioned in the L/C.

v) File L/C should provide sufficient time for shipment and a reasonable time for

shipment and a reasonable time for negotiation. If nothing is mentioned, tile shipper

would be allowed 21 days to negotiate the documents.

If any of the terms of the L/C appears to be vague ambiguous or too difficult for the banker to

ensure compliance, the banker should immediately refer to the concerned correspondent by letter

or cable and get the vagueness removed before advising the L/C to the beneficiary (exporter)

Shipment:

On conclusion of the contract securing the sales order, the exporter should set him earnestly to

the task of' delivering the goods on time. Failure to maintain the delivery schedule will expose

the exporter to claim from the buyers for damages on account of non-shipment or late shipment,

and in addition the exporter may also lose the patronage of the buyer for future export orders.

On dispatch of the goods to the docks, C&F agent should be given clear instructions to effect

shipment as per schedule and arrange to make necessary payments towards port charges. To

observe the customs formalities, the following documents should be sent to C& F agent by tile

exporter.

i) Export Registration Form (GRC)

ii) Commercial Invoice

iii) Packing List

iv) Copy of the Sale contract/Export L/C

v) Form VBF 9A prescribed by the Customs Authority for declaration of export goods

iv) Any other documents relevant to the specific cargo, such as, GSP* certificate or Export

permit.

EXP Form:

All exports must be declared on EXP Form. These forms will be supplied by the

Authorized Dealers for use of the exporter. The Authorized Dealers should, before

certifying any'export form. Ensure that exporter is registered with tile CCI&E under the

Registration (Importers and Exporters) Order 1952.

Certification of EXP Forms by Authorized Dealers:

Before lodging the EXP Forms with tile Customs/Postal Authorities, the exporter should get

copies of the forms certified by an Authorized Dealer. After receipt of the EXP Forms from the

exporters for certification purposes, the Authorized Dealers will see and ensure that each set of

the forms is duly filled in.

Authorized Dealer's Code

Number

Register Serial Year

Preparation of Export Documents:

As soon as the Bill of Lading or Airway Bill or Postal Receipt is received the exporter would

prepare the relevant documents and submit the same immediately to avoid being stale and for

early repatriation of export proceeds to help liquidate bank's loan etc.

The exporter should be very careful in the preparation of export documents, otherwise he will

face difficulty in the negotiation of export documents and collection of export proceeds

from the buyer.

Bill of exchange or Draft:

i) The bill of exchange or draft is usually drawn by the exporter in sets of two or three. It

must bear a date and, the number and date of the L/C or export order under which it is

drawn, and is signed by the exporter.

ii.) It must be made out in the name of the beneficiary's bank or to be endorsed to the

order of the bank depending upon the terms of the Letter of Credit. The draft is to be

drawn on the issuing bank.

iii). The draft may be at Sight or Usance. Under the Foreign Exchange Regulations in

Bangladesh, export proceeds must invariably be repatriated into the country within 4

months from the date of export. Therefore, drafts cannot be drawn with longer period than

120 days sight. Usance bill is to be paid after the period, say, 30, 60, 90 or 120 days,

specified in the bill has expired

iv). In case of usance bill, the requisite foreign bill stamp must be affixed as per Stamp Act in

force in the country.

v.) Amount of the draft must correspond to the value of the invoice and must not exceed the UC

amount or 10% of the L/C amount if it contains the word "About".

vi. Under the Exchange Control Regulations in Bangladesh, draft must be drawn to the order of

an authorized dealer.

vii. It must have interest clause where necessary.

Commercial Invoice:

A commercial invoice is a statement prepared by the shipper containing full details of the goods

shipped. It gives description and price of the merchandise, quantity, quality, packing

details and marks, names and addresses of the seller and buyer, L/C and contract Nos. terms of

trade-FOB, CFR or CIF etc., details of freight charges, insurance premium and other charges,

names of vessels, date of shipment, number of bills of lading etc.

It is to be scrutinized to ensure the following.

i. The invoice is made out in tile name of the foreign buyer and signed by the exporter.

ii. It bears the reference of the L/C or the export order and contains a full description, quantity, number of packing units, shipping marks, etc of the goods shipped.

iii. The full description of merchandise must be given in the invoice strictly as per LIC or export order.

iv. The amount of draft and invoice must be same and within the UC value.

v. Required number of invoices as per L/C plus two copies duly signed by tile beneficiary should be submitted.

vi. The mark and number on the packing shown in tile l3/I, must be identical will those given in the invoice and other documents.

Bill of Lading:

The document evidencing the carriage of goods by sea is the Bill of Lading. Bill of Lading is the

most important of the documents in connection with export of goods and negotiation of

documents. It is a document of title to the goods issued by the shipping company or its agent,

acknowledging the receipt of goods for carriage up to destination which arc deliverable to tile

consignee or his agent in the same condition as they are received

Airway Bill or Air Consignment Note:

The document evidencing the contract of carriage of goods by air is known as the

"Airway Bill or Air Consignment Note". Air-way bills or Air Consignment Notes are issued by

airlines or their agents as a receipt of consignment as carriers.

Marine Insurance Policy:

'File safe conduct of the goods from the time it leaves the exporters godown and till it reaches the

warehouse of the importer is what all parties in the transaction pray for. It depends upon the

safety of the goods during the voyage as well as the safety of the vessel that carries the goods.

Under a marine insurance policy, the insurer is liable for loss of or damage to tile goods only if it

is actually caused by a marine peril, and the principal marine perils.

Packing List:

A packing list prepared by the exporter serves to indicate the exact nature, quantity, and quality of

the contents of each package in a shipment. The list helps the importer to identify the goods and

check them against his won order. Banks may require such a list when they have financial interest

in the merchandise.

Consular Invoice:

It is an invoice signed by a consul, or some other member of the consular service of the

importing country. The main purpose of a consular invoice is to enable the authorities of the

importing countries to collect accurate information about the volume, value, quality, grade,

source, etc. of their imports for assessing import duties and also for statistical purposes.

Certificate of Origin:

It is a document certifying the country of origin of the goods. In many countries, permission to

import is refused unless a certificate of origin is produced by the buyer. This document may form

a part of the invoice itself. The essential feature is a certification of the country of origin

indicating where the goods were originally produced and/or manufactured.

Negotiation of Documents:

Soon after the shipment the exporter should make arrangement for early submission of tile

documents to tile bank, correctly prepared in conformity with tile terms of tile credit for

negotiation. The exporter should remain in constant touch with the negotiating bank for early

negotiation of export bills.

Mode of Payment

There is wide range of choices to receive payment against the exports of goods. This

choice may not entirely lie neither with the exporter nor with the importer.

i) Advance Payment : The exporter may require that the importer should make full payment for

the goods to be exported in advance. This is possible where the goods enjoy sellers' market. The

exporter would dispatch the goods only after he receives the full payment from the importer.

ii) Open Account: Under this method, goods are dispatched directly to the buyer who takes

delivery of them without making payment. He is free to dispose of the goods as he pleases. It

is arranged that he will make payment to the seller at a predetermined future date, say, two

months alter each shipment.

iii) Consignment Sale: The exporter may have his selling agents abroad. The goods are

dispatched to the selling agents abroad. They receive the goods, arrange for their storage and

sale without making any payment for them. The goods arc sold by the selling agents on

behalf' of' the exporters and as and when the sale proceeds are received they are remitted

to the exporters.

iv) Bills for Collection: A documentary collection is an operation in which a bank collects

payment on behalf of seller by delivering documents to the buyer. Under this method, the goods

are dispatched to the importer s country but the relative shipping documents, including the

documents of title to the buyer and a bill of exchange arc sent through a bank for collection of

the payments saving the expenses incurred on account of imports under L/C.

v) Letter of Credit: The most important of the payment method used universally is a letter of

credit (L/C) which serves as a bridge between buyers and sellers around the world.

Conclusion

As an internee of Bank Asia Ltd, I have truly enjoying my internship program from the learning

and experience viewpoint. I am confident that this three months internship program at Bank Asia

will definitely help me to realize my further career in the job market.

The Bank is performing well in all aspect. At present the bank is in growing stage, so there are

great change of deposit growth, investment growth, loans & advances growth. NI and TA also

increased at a very high rate. As there are lots of local and foreign banks in Bangladesh, The

Bank Asia Ltd. is promising commercial Bank among them In this competitive market Bank

Asia has to compete not only the others commercial banks but also with the public Bank. Bank

Asia Ltd. Invested more funds in exports and imports business. It is obvious that the right

thinking of this bank including establishing a successful network over the country and increasing

resources will be able to play a considerable role in the portfolio of development. Success in the

banking business largely depends on foreign exchange.

During the course of my practical orientation I have tried to learn the practical banking activities

to realize it with my theoretical knowledge, which I have greathearted and going to acquire from

various courses of my Bank Asia program.

Recommendation

If they establish networking system with their branches then it can easily transfer

data within short time.

If they cancel the introducer system then they can collect more deposit through new

account and it also satisfied the customer.

Try to avoid giving loan the political person who had bad reputation of loan

repaying.

Evaluate the securities value properly to avoid the risk of loan recovery. The

punishment system should be established to discourage the unlawful activities of

employee.

Bangladesh Bank should more active to provide CIB report.

In foreign exchange department it is require communicating with foreign bank

frequently and quickly. To make the process easy and quick the whole system should

be computerized and modern communication.

Bank Asia Ltd. Should give more attention to advertisement to create more attraction

among their customer, which is collect, more deposit and increase investment scope.

To establish a well occupied information desk in every branch.

Set target as whole branch not as personal target.

Proper and effective training about the newly changes, new concept and money

laundering rules.

Findings

• According to some clients opinion introducer is one of the problems to open an account. If

a person who is new of the city wants to open account, it is a problem for him or her to

arrange an introducer of SB or CD accounts holder.

• Political influence is one of the major problems in Bangladesh. Due to political intervention

the bank becomes obliged to provide loans in most of the cases, which are rarely recovered.

Bank has to face this in convenience situation almost every year.

• Sometimes the employee to unlawfully help the client deliberately overvalues the securities

taken against the loan. As a result if the client fails to repay the loan the authority cannot

collect even the principal money invested by the selling those assets. It is also a very

important factor the leads to loan default.

• Bank Asia Ltd. Doesn’t give their attention on advertisement. As a competition market it is

too much important for any organization to increasing their advertisements procedure.

• Grouping is one of the major problems in Bank Asia Ltd. These are case for target. Top

mgmt. set a personal target to its employees and this create a heavy disturbance to clients.

Some times clients are not properly treated with if they are refused to act according to

employees demand.

• From officer to VP, every body fears of money laundering rules. That’s why; they don’t

interest to take risk.

• Some departments are ineffective to perform well. The reason for their ineffectiveness is

lack of proper and clear concept about their duties.

Abbreviation

A/C Account

CCI and E Chief controller of import & export

DD Demand Draft

TT Telegraphic Transfer

FC Foreign Currency

FDR Fixed Deposit Receipt

FER Foreign Exchange Reserve

IMP Import

IRC Import Registration Certificate

ERC Export Registration Certificate

L/C Letter of credit

LIM Loan Against Import Merchandise

LTR Loan Against Trust Receipt

PAD Payment Against Document

PO Payment Order

STD Short Term Deposit

TIN Tax Identification number

VAT Value added tax

SWIFT Society for Worldwide Inter bank Financial

Telecommunication.

IBC Inter Branch Clearing

OBC Outside Bank Clearing

SOD Security Over Draft

PC Packing Credit

ABP Accepted bills payable

EDF Export Development Fund

Bibliography

1. Bank Management

By- “Dr. A.R.Khan”

2. Business of Banking

By-“Dr. R.M.Debnath”

3. Annual Report of Bank Asia Ltd. 2007 & 2008

3. The Brochure of Bank Asia Ltd.

All types of scheme and manual newspaper, journal, report.

4. Website- www.bankasia-bd.com

5. Personal Ledger of Bank Asia Jessore Branch.

6. Bangladesh Quarterly economic update, ADB, Dec-2007

7. State of Bangladesh economic in FY 2006-07

8. Major economic indicators, Bangladesh Bank, March-2008

9. Economic trend, March 2008, Bangladesh Bank.

10. Monetary Policy Statement, January- June 2008.

http://www.bankasia-bd.com/

A Report Of Asia Bank Foreign Exchange Remitance

Documents

word bank

days bank

grameen bank

briefbangladesh bank

sonali bank

foreign banks

bangladesh bank order

scheduled banks