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Internship Report
Submitted by: Rahman H. Shahriar ID# 07-09011-2 BBA Program (Accounting & Finance)
UNDER THE GUIDANCE OF AND SUBMITTED TO: Mahal Ishter Shitee Department of Accounting and Finance American International University-Bangladesh
Introduction
1.1 Background of the study: This report is prepared as the degree requirement of BBA, Institute of Business Administration, American International University-Bangladesh . As practical orientation is integral part of BBA, I was sent to the National Bank Ltd, New Eskaton Branch to have real life exposure on a 90 days internship program (from March 01 to May 01, 2010). The academic study has a great value when it has practical application in the real life. Theoretical knowledge has little significance unless it is applicable in the practical life. In order to consolidate the theoretical learning some practical exposure is need. With this motive in view this intern report titled A Study on General Banking and Foreign Exchange Management of National Bank Ltd. is prepared to show the reporting, analyzing and analytical ability of the individual knowledge seeker.
1.2 Rationale of the Study: As a student of BBA, Major in Accounting and Finance I always been fascinated to build a carrier in a financial institution. Through this internship I have got a chance to work in a financial institution like National bank Ltd. While working in a countrys one of the largest and oldest private-sector commercial bank, with years of experience, I realized how a bank contributes to a countrys economy and how could be a foreign exchange division so important for a bank and why banks always try to give more emphasize on proper management of its foreign exchange divisions. We all know that Bangladeshs economy basically depends on its Agriculture, exporting Readymade Garments and foreign remittance. Every year also she has to import products ranging from capital machineries to daily life commodities to meet up her growing demand. Today in open market world business firms are no more constrained in to their domestic market. They are also letting them engage with their foreign counterparts through export and import. With the help of state of the art technology like internet, hi-speed transportation system doing millions of dollar
transactions are no more science fiction has become daily life chores in business world of Bangladesh. And financial institutions mostly banks play very vital role in these sectors. Banks help business firms to import goods from foreign countries and in exporting goods to other countries through its foreign exchange wing and expertise. All this foreign deals are being true through the bank; to be more specific through foreign exchange division of bank. For these all reasons I do believe the knowledge and experience I will congregate while working on this report titled A Study on General Banking and Foreign Exchange Management of National Bank Ltd. will give me a apparent idea about the mechanism of general banking and its foreign exchange management. With this motive in view I am proposing to do my intern report titled A Study on General Banking and Foreign Exchange Management of National Bank Ltd.
1.3 Statements of the Problems: What is the condition of the Economic and Banking sectors of Bangladesh? How National Bank Ltd. has come to its present state? How National Bank Ltd operates its general banking? How Foreign Exchange management system of National Bank Ltd. is running? What are the problems of National Bank Ltd. in foreign Exchange management?
1.4 Scope of the Study: The academic study has a great value when it has practical application in the real life. Theoretical knowledge has little significance unless it is applicable in the practical life. In order to consolidate the theoretical learning some practical exposure is need. With this motive in view this intern report titled A Study on General Banking and Foreign
Exchange Management of National Bank Ltd. will enhance the analyzing and analytical ability of the individual knowledge seeker. 1.5 Limitations of the study: This study has been conducted with the motive to prepare a report on the Banks general activities and state of affairs in foreign trade. On doing the study, I personally came across some problems that may be cited as the limitations of the study, which are as followsVery inadequate time to make an in-depth inference about foreign exchange business. Enough information was not available to make a comprehensive study. In many case, Up to date information was not available. Incomplete and obscure data. Relevant papers and documents were not available.
1.6 Objectives of the Study: Main Objective: To be proverbial with General Banking and Foreign Exchange Management of National Bank Ltd. Other Objectives: To observe the Economic and Banking sectors of Bangladesh. To overview National Bank Ltd. To show foreign Exchange management system of National Bank Ltd. To identify the problems of National Bank Ltd. in foreign Exchange management. To generate appropriate recommendations regarding the problems of National Bank Ltd. in foreign Exchange management.
1.7 Methodology of the study: In order to make the report more meaningful and presentable, two sources of data and information have been used widely.
Primary sources of information: Face to face conversation with the respective officer of the branch Face to face conversation with the clients Relevant file study as provided by the officer of the concerned organization
Secondary sources of information: Annual report of the National Bank Ltd. Periodicals NBL listed by the Bangladesh Bank Different books, articles etc.
keep pace with time and in harmony with national and international economic activities and for rendering all modern services, NBL, as a financial institution automated all its branches with computer network in accordance with the competitive commercial demand of time. Moreover, considering its forth-coming future the infrastructure of the Bank has been rearranging. The expectation of all class businessman, entrepreneurs and general public is much more to NBL.
4) Prudent lending policy. 5) Strict expense discipline. 6) Loyal and committed employees who make lasting customer relationships and International teamwork easier to achieve support the business principles. 7) National Bank Limited also operates according to certain key business values. 8) The highest personal standards of integrity at all levels. 9) Commitment to truth and fair dealing. 10) Hands-on management at all levels. 11) Commitment to quality and competence. 12) A minimum of bureaucracy. 13) Fast decisions and implementation. 14) Putting the teams interests ahead of the individual's. 15) The appropriate delegation of authority with accountability. 16) Fair and objective employer. 17) A diverse team.
2.4 Vision:
Ensuring highest standard of clientele services through best application of latest information technology, making due contribution to the national economy and establishing ourselves firmly at home and abroad as a front ranking bank of the country are our cherished vision.
2.5 Mission:
Effort for expansion of our activities at home and abroad by adding new dimensions to our banking services are being continued unabated. Alongside, we are also putting highest priority in ensuring transparency, accountability, and improved clientele service as well as to our commitment to serve the society, through which we want to get closer and closer to the people of all strata. Winning an everlasting seat in the hears of the people as a caring companion in uplifting the national economic standard through continuous s up gradation and diversification of our clientele services in line with national and international requirements is the desired goal we want to reach.
8) To ensure the best uses of its creativity, well disciplined, well manages and perfect growth.
Principle Officer
Senior officer
Assistant Officer
Junior Officer
83.44
1.68
76838.64
Borrowing
Deposits
Other Liabilities
Paid up Capital
10000/-
4,12,549/-
7,57,914/-
14,16,970/
a) Private car and station wagon new and reconditioned. b) Refrigerator and deep fridge. c) Air cooler, Air condition, Room-heater, Water Purifier. d) Sewing machine. e) Photocopier f) Generator. g) Other goods that are not mentioned above but are considered essential.
Source: Economic Review 2010, Ministry of Finance. ( Taka in crore) From the table and the graph we can see that GDP is in increasing trend. The highest growth was occurred on the fiscal year 2007-08 that was 15.52%. And in last fiscal year the growth was 12.33%. This growth rate indicates that the income, production, export are increasing in the economy. This is positive sign for the Economy.
( Taka in crore)
The table 2 shows that over the last 5 years financial institutions are covering GDP from 1.61% to 1.68%. In the last fiscal year the GDP from the institutions was Taka 11595 crore where the total GDP was Taka 690571 million. Last year the GDP growth was 13.18%.
3.3 Inflation:
Inflation is the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Central banks attempt to stop severe inflation, along with severe deflation, in an attempt to keep the excessive growth of prices to a minimum. The rate of inflation over the last 5 years is given below: Table 3.3: Rate of Inflation Year
Inflation (12 month average) up to March 2010 2005-2006 7.16% 2006-2007 7.20% 2007-2008 9.94% 2008-2009 6.66% 2009-2010 6.26% Source: Economic Trend May10, Bangladesh Bank
increasing the rate of inflation is the increasing trend of commodity price rising worldwide. Here, the inflation is fluctuating and in March10 the rate of inflation was 6.26%. To keep the inflation in a tolerable level Government has taken some measures. Government decided to increase production for the availability of the commodity as well as monitoring market and started selling
essential commodity to the consumers in open market at reasonable price so that the price level can be kept in a tolerable level. Side by side, to avoid the increasing of inflation by banks it raises Cash Reserve Ratio (CRR) by 0.5% and Statutory Liquidity Ratio (SLR) by .05%. After raising the requirement these get stood at 5.5% and 18.5% respectively. Therefore, banks have to lend less amount of loans and advances that decrease the money supply in the market which will help to keep price level in a tolerable level.
Trade
Others
Total
69251.9 23063.4 196385.5 4 6 (100%) (35.26% (11.74% ) ) 77000.8 23558.8 216444.5 3 5 (100%) (35.58% (10.88% ) ) (Taka in crores)
capital financing, constructions, transport, trade, and different other purposes. From the table we can see that the highest priority sector is trade, and industry. The sector where loan are provided less is transport and communication that is 1.51% in last year. In general the amount of advances in each sector is in increasing trend. Banks should lend more on agriculture sectors and transport and communication for the development of the economy.
The table and the graph show that Private Commercial Banks are providing the highest portion of advances. In the quarter July-September in 2009 private commercial banks are provided 63.95% advances of total loan and advances. In 2008 the total advances was Taka 191079.8 crore and it increase at Taka 216444.5 crore in the quarter July-September in 2009. From the overall analysis it is clear that the economy of our country is growing positively. And the loan and advances provided by the Banks have significant impact on this economy growth. It helps to accelerate the growth of investment, production, income of the economy.
and outstanding entries beyond 30 days are reviewed by the management for their settlement. FOREIGN EXCHENGE MANAGEMENT OF NATIONAL BANK LTD.
In terms of section 2(d) of the foreign exchange regulations 1947, as adopted in Bangladesh, Foreign Exchange means foreign currency and includes any instrument drawn, accepted made or issued under clause (13) of article 16 of the Bangladesh Bank order, 1972, all the deposits, credits and balance payable in any foreign currency and draft cheques, letter of credit and bill of exchange expressed or drawn in Bangladesh currency but payable in any foreign countries. In exercise of the power conferred by section 3 of the foreign exchange regulation, 1947 Bangladesh Bank issues license to schedule Bank to deal with exchange. These Banks are known as Authorized Dealers. Licenses are also issued by Bangladesh Bank to persons or firms to exchange foreign currency instruments such as T.C, currency notes and coins. They are known as Authorized Money Changers.
4.3 Functions of foreign exchange department of National Bank Ltd: 4.3.1 Exports:
1. Pre-shipment advances 2. Purchase of foreign bills 3. Negotiations of Foreign Bills 4. Export guarantees 5. Advising/confirming letters letters of credit 6. Advance for deferred payments exports 7. Advance against bills for collection
4.3.2 Imports:
Opening of letter of credit Advance bills Bills for collection Import loans and guarantees
4.3.3 Remittances:
Issue of DD, MT, TT etc. Payment of DD, MT, TT etc. Issue and enhancement of travelers cheques Sale and enhancement of foreign currency notes Non-resident accounts
A bill of lading specifically stating that goods are loaded for ultimate destination specifically mentioned in the credit.
4.4.4Commercial Invoice:
A commercial invoice is the accounting document by which the seller charges the goods to the buyer. A commercial invoice normally includes the following information: 1. Date 2. Name and address of the buyer and seller
3. Order of contract number, quantity and description of the goods, unit price and the total price 4. Weight of the goods, number of the package, shipping marks and numbers 5. Terms of delivery and payment 6. Shipment details
Be a document issued and/or signed by an insurance company or its agent, or by underwriters Be dated on or before the date of the date shipment as evidenced by the shipping documents or establish that cover is effective at the latest from such date of shipment Be for an amount at least equal to the CIF value of the goods and in the currency of credit.
4.5 Import:
Import is foreign goods and services purchased by consumers, firms & Governments in Bangladesh. An importer must have import registration certificate (IRC) given by chief controller of import and exports (CCI & E) to import anything from other country. To obtain IRC the following certificates are required1. Trade License 2. Income tax clearance certificate 3. Nationality certificate 4. Bank solvency certificate 5. Asset certificate 6. Registration partnership deed (if any) 7. Memorandum and Article of Association 8. Certificate of Incorporation (if any) 9. Rent receipt of the business premises
7. One set of form 8. Insurance cover note with money receipt 9. Others
4.5.5 Before opening a L/C, the issuing Bank must check the following:
L/C application properly stamped, signature verified and margin approved and properly retained. Indent/proforma invoice signed by the importer and indentor/supplier. Ensure that the relevant particulars of L/C application correspond with those stipulated in indentor/proforma invoices. Validity of L/C entitlement of goods, amount etc. conforms to the L/C application. Conversion and rate of exchange currently applied. Charges like commission, F.C.C, postage, telex charge, if any recovered. Insurance cover note in the name of issuing Bank A/C, Importer covering required risks and voyage route. Incorporation of instruction for negotiating Bank as per Banks existing arrangement. Reimbursement instructions for reimbursing Bank
If foreign Bank confirmation is required, necessary permission should be obtained and accordingly advising Bank is advised as per Banks existing arrangement. If added information is required on account of the applicant charges should be recovered from the applicant. In case of issuance L/C, mention rate of interest clearly in the letter of credit.
I. Article 7(a): A credit may be advised to a beneficiary through another Bank (the advising Bank) without engagement on the part of the advising Bank, but that Bank, if it elects to advise the credit, shall take reasonable care to check the apparent authenticity of the credit which it advises. If the Bank elects not to advise the credit, it must so inform the issuing Bank without delay. II. Article 7(b): If the advising Bank cannot establish such apparent authenticity it must inform, without delay, the Bank from which the instructions appear to have been received that it has been unable to establish the authenticity of the credit and if it elects nonetheless to advise the credit it must inform the beneficiary that it has not been able to establish the authenticity of the credit.
Amendments on increase of credit amount and extension of shipment period both the cases amendment of insurance cover note also to be submitted. Proper recording and filling of amendment is to be maintained. Amendment charges (if on account of applicant) will be recovered and necessary voucher is to be passed.
Under this arrangement, the seller submits the documents evidencing the shipment to the accepting Bank (nominated by the issuing Bank for acceptance) accompanied by draft down on the Bank at the specified tenor. After being satisfied with the documents, the accepts the documents and the draft and if it is a Bank other than issuing Bank, then sends the documents to the issuing Bank stating that it has accepted the draft and maturity the reimbursement will be obtained in the pre-agreed manner.
Preparing sale memo: A sale memo is made at BC rate to the customer. As the T.T & OD rate is paid to the ID, the difference between these two rates is trading. Finally, an Inter Branch Exchange Trading Credit Advice is sent to ID. Requisition of the foreign currency: For arranging necessary fund for payment, a requisition is sent to the International Department. Transmission of telex: A telex is transmitted to the correspondent Bank ensuring that payment is being made.
4.6 Export:
Practically by the term export we mean carrying out of anything from one country to another. From the Bankers point of view- export means sending of visible things outside the country for sale. Export trade plays a vital role in the development process of an economy. With the earning, the country meets the import bill.Although export trade is always encouraged, anybody cannot export anything to any place. Like importer, the exporters are also required to get them registered before entering into export trade. Export Registration Certificate (ERC) given by CCI & E is required for this purpose. The required documents to be obtained ERC are almost same as IRC. When National Bank (authorized dealer) receives a L/C (cable or original) it ascertains the correctness of the test number and the authorized signature. Then the Bank sends the original copy of the L/C to the beneficiary. The export presents the relative documents to the negotiation Bank after the shipment of the goods. The L/C issuing Bank undertakes to honor is obligation only if the beneficiary fulfills the conditions stipulated in the L/C, May namely, the submission of stipulated documents within the stipulated time. Even a slight deviation of the documents from these specified in the L/C may give an excuse to the negotiating Bank. So the negotiating Bank must be careful, promote, systematic and bias-free while scrutinizing the tender documents after careful and thorough examination of the documents,
The Banker has to list out the discrepancies, which may be classified as major or minor, irremovable or removable. The removable discrepancies can be corrected by the tendered or future losses, which may arise due to non-interpretation of proceeds.
The following types of discrepancies may be noted while the negotiating Bank examines the documents: L/C expired Late shipment Amount drawn in excess of the L/C Bill of Exchange not properly drawn Descriptions of the goods differ Bill of lading or Airway bill state Bill of lading classed Insurance cover note as per terms L/C Insurance cover obtained after the bill of lading or Air bill date Enough number of copies not submitted as required by L/C Negotiation under L/C restricted Packing list and certificate of analysis not as per L/C Documents not properly endorsed Full shipment not effective and part shipment prohibited Gross weight and net weight shown in different documents differ Same documents required by L/C not submitted and Documents inadequately stamped
Document with major discrepancies, which could not be negotiated, should be sent on collection basis with the permission of the exporter.
Terms and conditions should be stated in contract clearly in case of other modes of payment: Cash in advance
Phyto-sanitary Certificate
After passing the above vouchers, an inter branch exchange trading debit advice is sent for debiting the NOSTRO account. National Bank Ltd. has NOSTRO account with its reimbursing Bank (American Express Bank in New York). An FDBC register is maintained, where first entry is given when the documents are forwarded to the issuing Bank for collection and the second one is done after realization of the proceeds.
L/C expired L/C overdrawn Partial shipment or transshipment beyond L/C terms
II. Bill of exchange Amount of bill differs with Invoice Not drawn on L/C issuing Bank Not signed Tenor or B/E not identical with L/C Full set not submitted Invoice Not issued by the beneficiary Not signed by the beneficiary Not made out by the name of the applicant Description, price, Quantity, Sales terms of the goods not correspond to the credit Not marked one fold as original Shipping marks differ with B/L & Packing list
III. Packing List Gross weight, Net weight & measurement, number of cartoons/packages differ with B/L Not marked one fold as original Not signed by the beneficiary Shipping marks differ with B/L
IV. Bill of Lading/ Airway Bill Full set of bill not submitted
B/L is not drawn or endorsed Shipping on Board, Freight prepaid or Freight collect etc. notations are not marked on the B/L B/L not indicate the name and capacity of the party i.e. carrier or master, on whose behalf the agent is signing the B/L Shipped on board notation not showing name of pre-carriage vessel/intended vessel Shipping on board notation not port of loading and vessel name (incase bill indicate a place of receipt or taking in charge different from the port of loading) Short form B/L Charter party B/L Description of goods in B/L not agree with that of invoice, B/E & P/L Alteration in B/L not authenticated Loaded on deck B/L bearing clauses or notations expressly declaring defective condition of the goods and /or the packages
V. Others: Non-negotiable documents not forwarded to buyers or forwarded to L/C terms Inadequate number of invoice, Packing list & others submitted Short shipment certificate not submitted
Payment is given to the customer on either by collection basis or by purchasing the documents A LBPD register is maintained to record the acceptance of the issuing Bank. Until the acceptance is obtained, the record is kept in a collection register.
X Local Bank
B Beneficiary
A Remitter
Fig: Flow Chart of Remittance rocess National Bank Limited is the Authorized Dealer (AD) to deal in foreign exchange business. As an authorized dealer, the bank must provide some services to the clients
regarding foreign exchange and this department provides the service of remitting foreign currencies from one country to another country. In the process of providing this remittance service it sells and buys foreign currency. The conversion of one currency into another takes place at an agreed rate of which the Banker quotes one for buying and another for selling.
Demand Draft Mail Transfer Telegraphic Transfer Bills & Travelers Cheque Export Process
Inward Remittance
ii) Outward Remittance: Outward remittance covers sales of foreign Currency by Authorized Dealer (AD) or Formal Channel through issuing foreign Telegraphic Transfer (T.T), Demand Drafts (D.D), Travelers Check etc. as well as selling of foreign exchange under L/C and against Import Bills retired. The Authorized Dealers have to demonstrate utmost caution to ensure that foreign currencies remitted or released by them are used only for the purposes for which they are released. Most outward remittance is approved by the authorized dealer on behalf of Bangladesh Bank.
Demand Draft Mail Transfer Telegraphic Transfer Outward Remittance may be made for following purposes:Letter of Credit Traveling Medical treatment Educational purpose Attending seminar Balance Amount of Foreign Currency Account Profit of foreign companies Technical assistance Letter of Credit (L/C) payment Fair, exhibition for export promotion. Fig: Modes of outward remittance Outward Remittance
Banking Channel
Post Office
Formal Channel
Money Exchange
Fig: Forms of Formal Channel The legitimate purposes of moving money abroad through formal channel are: To invest To lend To meet trading or personal obligations To safeguard assets against theft or seizure by repressive regimes.
Informal channel Fund transfer from one country to another country through hand by hand or over telephone in an unofficial channel like Hundi. Experts state that remittance collected by
informal Hundi rings are used to finance illegal trades and transactions. Terrorist financing is also made by this sort of channel.
Smuggling
Under Invoicing
Informal Channel
Others
Informal channels are used for moving money abroad in order to: Deal in arms & ammunitions Traffic drugs Finance terrorists activities Evade exchange regulations or control Evade taxation Disguise or remove proceeds of threat/fraud/bribe Make blackmail payments Pay ransom for kidnappers etc.
In case the factory premises is a rented one, letter of disclaimer duly executed by the owner of the house/premises to be submitted.
needs to purchase them from, and make payable to, another supplier. In this case, it may sometime be possible to use either a back to back credit or a counter credit. Both these concepts involved the issue if a second credit by the seller in favor of his supplier. Under the back to back concept, the seller, as beneficiary of the credit, offers it as security to the advising Bank for the issuance of the second credit. As application for this second credit the seller is responsible for reimbursing the Bank for payment made under it, regardless of whether or not he himself is paid under the first credit. There is, however, no compulsion for the Bank to issue the second credit, and in fact, many Banks will not do so.
Major Findings
The dynamic first generation bank established in 1983 focusing on technology and services At present, NBL has been carrying on business through its 124 branches and 12 SME / Krishi centers (total 136 service locations) spread all over the country. Since the very beginning, the bank has exerted much emphasis on overseas operations and handled
a sizable quantum of home bound foreign remittance. It has drawing arrangements with 415 correspondents in 75 countries of the world, as well as with 37 overseas Exchange Companies located in 13 countries. NBL was the first domestic bank to establish agency arrangements with the world famous Western Union in order to facilitate quick and safe remittance of the valuable foreign exchanges earned by the expatriate Bangladeshi nationals. This has meant that the expatriates can remit their hard-earned money to the country with much ease, confidence, safety and speed. NBL was also the first among domestic banks to introduce international Master Card in Bangladesh. In the meantime, NBL has also introduced the Visa Card and Power Card. The Bank has in its use the latest information technology services of SWIFT and REUTERS. NBL has been continuing its small credit programmed for disbursement of collateral free agricultural loans among the poor farmers of Barindra area in Rajshahi district for improving their livelihood. Despite shaken domestic economic condition due to global recession, performance of 2009, the year under review was noteworthy. In 2009, the pretax profit of National Bank stood at 3,197.50 million, registering a growth of 13.03 percent over the previous year and profit after tax & other provisions stood at Taka 2,070.47 million reflecting a growth of 36.45 percent. Further, bank's revenue, loans & advances, deposit and assets registered a growth of 22.98, 28.55, 27.66 and 27.53 percent respectively. Capital adequacy maintained at Tk.9, 124.62 million, which was 13.56 percent against statutory requirement of 10 percent. The earnings per share for the year 2009 was Tk.72.74 compared to Tk.53.31 of previous year. Being a regular tax payer, the bank made a direct contribution of Tk.1, 366.20 million to Government Exchequer in 2009 representing an increase of 79.35 percent over 2008. Detailed facts-figures and dsclosures are available in the financial statements and notes of accounts for the year 2009.
RECOMMENDATION
The previous banking system that someone has to go to some specific branch for banking purpose for withdrawing money or depositing is diminishing day by day. Today with the help of modern day computer many banks have gone online that means, the customers can go to any branches for their transactions regardless where they have
opened their account. This has not only been a luxury but a necessity these days. When a customer will see that, they are limited to a certain branch, they would rather choose a different bank where they can use any branches. Since NBL is a thriving bank and willing to capture more market share in the upcoming days, it is high time, the bank implements true online system so that the customers of any branch can do its transaction from any other branch branches near their offices or home or when they travel in other cities etc. The use of computer is important not only for online system but also in everyday process and activities of the employees. This bank still uses traditional paper systems today instead of maintaining computer systems in every aspect. As a result, the work becomes hectic and also mistakes are not always easy to track. By changing their process and use of advanced computer software, the bank can increase employee efficiency and effectiveness. This bank has lots of products to offer already. But these products are more industrial in nature. For general consumer, banks have lots of deposits but not much of credit schemes. Almost all the banks are now providing personal loan, auto loan, house loan etc. It is to be noted that, the bank will earn little profit serving hundreds of customers for personal credit schemes whereas; the bank will earn very high profit by serving just few industrial customers. But it is also to be noted that, serving customer is like a branding. The more customers the bank will serve with their innovative products, the more exposure the bank will get with the help of which, the bank may capture more industrial clients. So, NBL should focus on serving normal consumers.
CONCLUTION
In the organizational environment we feel very cozy to work in that type of convenient ambience. The premises expedite us for enhancing our knowledge as well as give us a proper safeguard about upcoming future circumstances.The banking industry experienced competitive pressure as the national and international banks operating in Bangladesh
strongly pursued the banking and financing needs of the corporate, retail, SME sector customers through diversification of products and services and extending automated banking service with ATM, Debit card facilities and internet Banking. Besides, rates of profit became very competitive for deposit and lending; Customers are demanding higher rate of return against their deposits. On the other hand, Bangladesh Bank is also asking the banks to reduce their lending rates without adjusting the profit on deposits.
I am working in NATIONAL BANK LIMITED for a period of 3 months in which I have felt very welcome throughout this completion of this paper I have been given the most assistant as possible though some information were kept secret from me. I have learned a lot of things like account opening, L/C opening, Credit Boucher, Debit Boucher, Export & Import and all necessary information regarding modern banking system. I believe the best possible work environment is provided bt National Bank Ltd. And I have received the most assistance in training in this institution.