janata bank

FOREIGN EXCHANGE MANAGEMENT OF

JANATA BANK LIMITED

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Internship Report

on

‘FOREIGN EXCHANGE MANAGEMENT OF

JANATA BANK LIMITED’’

Supervised by

……………………….

Mohammad Anisur Rahman

Assistant Professor

Dept . Of MIS

University Of Dhaka

Date of Submission: August 26, 2013

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Submitted ByLashkar Md Nazibul Islam

MBA 3rd Batch Roll: 03-47

Department Of MISFaculty of Business Studies

University Of Dhaka

Submitted toDepartment Of MIS

Faculty of Business StudiesUniversity Of Dhaka

Letter of Transmittal

August 26, 2013


Assistant Professor

Department of MIS

University of Dhaka

Sir:

I want to submit my internship report on “Foreign Exchange Management Of Janata Bank

Limited”. This report is going to provide valuable assistance to the organization in finding out

the factors regarding Foreign Exchange Management .

Therefore, I need your kind attention to assess my report considering the limitations of the study.

Your kind suggestion will persuade me to perform better research work in future.

Yours sincerely,

Lashkar Md. Nazibul Islam

ID : 03-047

MBA 3rd Batch

Roll: 03-47

Department of MIS

Faculty of Business Studies

University Of Dhaka

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Declaration

I do hereby solemnly declare that the work presented in this report entitled ‘’ Foreign Exchange

Management Of Janata Bank Limited’’ has been carried out by me and has not been previously

submitted to any other University/ College/ Organization for academic qualification/ certificate/

diploma or degree.

The work I have presented does not violate any existing copyright and no portion of this report is

copied from any other work done earlier for a degree or otherwise.

I further undertake to indemnify the department against any loss or damage arising from breach

of foregoing obligations.

……………………………

Lashkar Md. Nazibul Islam

MBA 3rd Batch

Roll: 03-47

Department of MIS


University Of Dhaka

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Letter of Authentication

I have certified that Lashkar Md. Nazibul Islam , ID 03-47 ,has completed his Internship

Program successfully in Janata Bank Limited under my supervision. I have gone through his

draft report copy and found it satisfactory.

He is permitted to submit the report.

Supervisor

………………………..


Assistant professor

Department of MIS

University of Dhaka

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Acknowledgement

In the preparation of this internship report, I acknowledge the encouragement and assistance

given by a number of people from Janata Bank Limited. I am grateful to Ayub Khan, Manager,

Md. Taowhid Reza, Executive Officer and I also like to thank all the Department staffs of

Divisional Office of Janata Bank Limited for their valuable suggestions giving me helpful

support and assurance .

I would like to express my gratitude to my supervisor Mohammad Anisur Rahman, for sharing

his ideas and interests with me about my study. His contribution boosted my confidence and

helped me finish my study on time. At last, I want to show my gratefulness to all the respondents

who spared their precious time in answering my questionnaires.

Lasker Md. Nazibul Islam

MBA 3rd Batch

Roll: 03-47

Department of MIS


University Of Dhaka

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EXECUTIVE SUMMARY

Today necessity of a Bank as a financial institution is undeniable. A country is financially rich

when it has modern financial institutions of its own. These institutions play a vital role in the

field of financial stability of a country. Banking sector is one of the stable financial institutions

of a country. Due to Globalization and Technological changes, the banking business has become

very competitive now a day. All banks are competing to give effective real time service to their

customers. For giving friendly service to the customers they need experienced and well-educated

working force. The overall approach of the report is a Descriptive one as it goes into the depth of

service quality of Janata Bank Ltd. Here both primary and secondary information were used.

Interview was the basic techniques comply to collect primary data from any people within the

organization. Information about the varieties of activities within the Correspondent Banking

Department was collected through interviewed. Different circulars and papers of Janata Bank

Ltd, Term papers of JBL Training manuals, Guidelines for Foreign Exchange Transactions,

General Banking Operation manual, Banking Lecture sheet within the organization helped me to

gather data about the organization. The report contains three chapters. The first chapter of the

report describes the introductory words of the internship report in which Introduction of Topic,

Origin the Report, Background of the study, Objective of the Report, Scope of the Report,

Methodology & Limitations. The Second Chapter Contains, Foreign Exchange function,

Export/Import procedure , SWIFT , Function of SWIFT , SWIFT code, Procedure Of Opening

The Letter Of Credit (L/C).The third chapter contains the organizational part of “Janata Bank

Ltd.”, Organization Structure of “Janata Bank Ltd.”, Vision of “Janata Bank Ltd.”, and Mission

Statement, Product and services of “Janata Bank Ltd.”. Different Problems, suggestions,

recommendations have come at the end of the report within the chapter four. The Problems

findings during the three-month long internship period & suggestions are given from

observation, comparative analysis, strategic point of view etc. To increase the efficacy in

customer service Janata Bank Ltd. should try to develop the process of providing services. Janata

Bank Ltd. has passed a long way since it is providing services. Already it has earned a strong

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positioned in the field of customer service. To continue to hold the position and be perfect in this

sector it will have to keep more and more attention to the customer retention and development.

Janata Bank Ltd is a government owned bank with numerous branches spreading all over

Bangladesh. It collects remittances from NRB from different countries and transfers the currency

in BDT to the destined location. Here I have tried to describe the remittance processing structure

of JBL. Along with, I have included the changes made by globally accepted protocol UCP-600

and wired transfer service SWIFT. In this report I have tried to show the contribution of JBL’s

remittance earning on national remittance earning. JBL’s performance is not dissatisfactory but

the remittance earning is not increasing as the rising national remittance curve. After analyzing

the data of JBL’s remittance earnings process this report have suggested that JBL lacks in

foreign currency collection structure. Its remittance earning is increasing but the increase is far

below the national remittance increase. JBL should take up to the mark structural change in

service to cope with the national trend and help Bangladesh earn more remittance. In addition,

with this intern report have been included the regression analysis of import-export volume with

regard of exchange rate. .

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Table of Content

Chapter

Particulars Page Number

CHAPTER ONE

Introduction

1.1 Origin of the Report 01

1.1 1.2 Background of the Study 01

1.3 Objective of the Study 02

1.4 Scope of the study 02

1.5 Methodology of the Report 03

1.5.

1

Selection of the topic 03

1.5.

2

Identifying data sources 03

1.5.

3

Collection of data 03

1.5.

4

Sampling 03

1.5.

5

Findings of the study: 03

1.6 Limitation of the Report 04

Literature Review

2.1 Foreign Exchange Its Meaning

And Definitions

05

2.2 Functions Of The Foreign

Exchange Market

06

2.3 Export Its Meaning And 07

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CHAP

TER

TWO

Definitions

2.4 Formalities Of Export

Procedure

08

2.5 Disposal Of Export Procedure 09

2.6 Import Its Meaning And

Definitions

10

2.7 Import Procedure 11

2.8 Payment Modes 12

2.9 Opening Letter Of Credit (L/C) 13

2.10 Procedure Of Opening The

Letter Of Credit (L/C)

13

2.11 Swift 15

2.12 The Functions Of Swift 16

Chapt

er

Particulars Page Number

Organizational

Part

CHAPTER

THREE

3.1 Historical Background Of The Organization

17

3.2 Organizational Structure 18 2functions Of The Foreign Exchange Market

3.3 Mission 19

3.4 Vision 19

3.5 Offered Services By The Organization

19

3.6 Services Areas 20Findings

4.1 Foreign Exchange

Management Of JBL

22

4.2 Export Of JBL 23

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CHAPTER

FOUR

4.3 Export Finance Of JBL 23

4.4 Import Of JBL 27

4.5 Import Finance Of JBL 27

4.6 Foreign Remittance Of JBL 29

4.7 Swift Of JBL 33

4.8 List Of SWIFT Branch/Office

OF JBL

34

4.9 Documents Used In Foreign

Exchange In JBL 35

Chapter

Particulars

Pag

e

No

CHAPTER FIVE

5.1 Recommendation 40

5.2 Conclusion 41

5.3 Reference42

5.4 Appendix 43

1.1 ORIGIN OF THE REPORT

Although total M.B.A. program combines an excellent blend of theoretical and classroom

knowledge but aside this internship program facilitates a student to bring light on their

theoretical knowledge to apply this in practical ground. I was assigned to Janata Bank,

Sonargaon Road Branch, and foreign exchange department for my practical execution.

I am required to prepare an internship report under the supervision of our honorable teacher

Mohammad Anisur Rahman “Foreign Exchange Management of Janata Bank Limited” to

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conduct a precision analysis on the typical subject. I have always tried my best to reflect my

experience of the practical incidence in this report.

1.2 BACKGROUND OF THE STUDY

To supply well-versed graduates Department of MIS is conducting MBA program with excellent

reputation. Each of the degree needs practical knowledge of respective field of discipline to be

fruitful. To complete MBA program also has an Internship Report, relating to the exchange of

theoretical knowledge into the partial fulfillment of the Internship program.

During the Internship Program, I am under the supervision and guidance of Mohammad Anisur

Rahman assigned to prepare a report about particular topic among some option which should be

relevant to my practical knowledge within 90 days MBA program. To fulfillment of the

Internship program the report is originated entitled “Foreign Exchange Management Of Janata

Bank Limited.”

1.3 OBJECTIVES OF THE REPORT

1.3.1 BROAD OBJECTIVE

This report is prepared primarily to fulfill the Masters of Business Administration (MBA)

degree requirement in MBA program of the faculty of business studies, department of

management information systems, University of Dhaka.

1.3.2. SPECIFIC OBJECTIVES

The main purpose of the report is to get a clear idea about Foreign Exchange

Management of Janata Bank Limited

To identify the Export procedures

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To identify the Import Procedures

To observe the Foreign Remittance functionality of Janata Bank Ltd.

To get a clear knowledge about SWIFT

To get a clear knowledge about opening LC

To know about the maintenance of other formalities of foreign exchange.

1.4 SCOPE OF THE REPORT

This study would focus on the following areas of Janata Bank Limited.

Actual Foreign Exchange management of Janata Bank Limited.

Overview the current procedure of export & import and remittance management.

Opening LC and maintenance of other formalities of foreign exchange.

Organizational structures and responsibilities of management.

Each of the above areas would be critically analyzed to determine the proper efficiency of Janata

Bank’s Foreign Exchange Management system.

1.5 METHODOLOGY OF THE REPORT

The study requires a systematic procedure from selection of the topic to final report preparation.

To perform the study the data sources are to be identified and collected, they are to be classified,

analyzed, interpreted and presented in a systematic manner and key points are to be found out.

The over all process of methodology is given in the following page in a form of table that has

been followed in the study.

1.5.1 Selection of the topic The topic of the study was assigned by our supervisor. Before

assigning the topic it was discussed with me so that a well

organized internship report can be prepared.

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1.5.2 Identifying data sources Essential data sources both primary and secondary are identified

which will be needed to complete and work out the study..

i) The primary sources are: Face to face conversation with the officers.

Practical desk work.

Relevant files study as provided by the concerned officers.

ii) The Secondary sources : Annual reports of JBL.

Foreign exchange of JBL.

Periodic reports of JBL.

Annual Reports of Bangladesh Bank (BB).

1.5.3 Collection of data Primary data are collected by using interviewing technique. The

reports are an exploratory research and for qualitative survey

open ended question were ask to the Bank official.

1.5.4 Sampling Population: All the Branches of JBL located in everywhere in

Bangladesh has been taken into consideration as population.

Sample:. JBL, Main Branch, is the vital sample

1.5.5 Findings of the study: The collected data were scrutinized very well and were pointed

out and shown as findings. Few recommendations are also made

for improvement of the current situation.

1.5.6 Final report preparation: On the basis of the suggestions of our honorable faculty advisor

some corrections were made to present the paper in this form.

1.5.7 Limitation of the report when I was preparing this report I have faced some limitations

1.6 LIMITATIONS

I have faced some limitations, when I was preparing this report which is mentioned below.

Time limitation: It was one of the main constraints that affected covering all aspects of the study.

Lack of Secondary Information: The import export data of Bangladesh is not much available over

the net. Secondary source of information was not sufficient for the completion of the report.

Limitation of the Scope: Much confidential information was not disclosed by respective

personnel of the department.

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2.1 FOREIGN EXCHANGE ITS MEANING AND DEFINITIONS

The exchange of one currency for another, or the conversion of one currency into another

currency. Foreign exchange also refers to the global market where currencies are traded

virtually around-the-clock.

Any currency other than the local currency which is used in settling international transactions.

Also called foreign currency.

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http://www.businessdictionary.com/definition/foreign-currency.html

http://www.businessdictionary.com/definition/call.html

http://www.businessdictionary.com/definition/transaction.html

http://www.businessdictionary.com/definition/settle.html

http://www.businessdictionary.com/definition/currency.html

System of trading in and converting the currency of one country into that of another. See also

foreign exchange market.

Foreign Bill Negotiation

2.2FUNCTIONS OF THE FOREIGN EXCHANGE MARKET

The foreign exchange market performs the following important functions:

(i) To effect transfer of purchasing power between countries- transfer function;

(ii) To provide credit for foreign trade - credit function; and

(iii) To furnish facilities for hedging foreign exchange risks - hedging function.

Transfer Function:

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http://www.businessdictionary.com/definition/foreign-exchange-market.html

http://www.businessdictionary.com/definition/country.html

http://www.businessdictionary.com/definition/converter.html

http://www.businessdictionary.com/definition/trader.html

http://www.businessdictionary.com/definition/system.html

The basic function of the foreign exchange market is to facilitate the conversion of one currency

into another, i.e., to accomplish transfers of purchasing power between two countries. This

transfer of purchasing power is effected through a variety of credit instruments, such as

telegraphic transfers, bank drafts and foreign bills.In performing the transfer function, the

foreign exchange market carries out payments internationally by clearing debts in both

directions simultaneously, analogous to domestic clearings.

Credit Function:

Another function of the foreign exchange market is to provide credit, both national and

international, to promote foreign trade. Obviously, when foreign bills of exchange are used in

international payments, a credit for about 3 months, till their maturity, is required.

Hedging Function:

A third function of the foreign exchange market is to hedge foreign exchange risks. In a free

exchange market when exchange rates, i.e., the price of one currency in terms of another

currency, change, there may be a gain or loss to the party concerned. Under this condition, a

person or a firm undertakes a great exchange risk if there are huge amounts of net claims or

net liabilities which are to be met in foreign money.

Exchange risk as such should be avoided or reduced. For this the exchange market provides

facilities for hedging anticipated or actual claims or liabilities through forward contracts in

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exchange. A forward contract which is normally for three months is a contract to buy or sell

foreign exchange against another currency at some fixed date in the future at a price agreed

upon now. No money passes at the time of the contract. But the contract makes it possible to

ignore any likely changes in exchange rate.

(http://www.preservearticles.com/2012012721683/what-are-the-functions-of-the-foreign-

exchange-market.html, 2012)

2.3 EXPORT ITS MEANING AND DEFINITIONS:

A function of international trade whereby goods produced in one country are shipped to

another country for future sale or trade. The sale of such goods adds to the producing nation's

gross output. If used for trade, exports are exchanged for other products or services. Exports

are one of the oldest forms of economic transfer, and occur on a large scale between nations

that have fewer restrictions on trade, such as tariffs or subsidies.

Most of the largest companies operating in advanced economies will derive a substantial

portion of their annual revenues from exports to other countries. The ability to export goods

helps an economy to grow by selling more overall goods and services. One of the core functions

of diplomacy and foreign policy within governments is to foster economic trade in ways that

benefit both parties involved. (http://www.investopedia.com/terms/e/export.asp, 2013)

2.4 FORMALITIES OF EXPORT PROCEDURE

There are a number of formalities, which an exporter has to fulfill before and after shipment of

goods. These formalities or procedures are enumerated in brief as follows:

Obtaining Export Registration Certificate ERC: No exporter is allowed to export any

commodity for export from Bangladesh unless he is registered with Chief Controller of

Imports and Exports (CCI & E) and holds valid Export Registration Certificate (ERC).

After applying to the CCI&E in the prescribed from along with the necessary papers,

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concerned offices of the Chief Controller of Imports and Exports issues ERC. Once

registered, exporters are to make renewal of ERC every year.

Securing the order: After getting ERC, the exporter may proceed to secure the export

order. He can do this by contracting the buyers directly through correspondence.

Obtaining EXP: After having the registration, the exporter applies to Janata Bank

Limited with the trade license, ERC and the Certificate from the concerned Government

Organization to get EXP. If the bank is satisfied, an EXP is issued to the exporter.

Signing of the contract: After communicating with buyer the exporter has to get

contracted for exporting exportable items from Bangladesh detailing commodity,

quantity, price, shipment, insurance and mark, inspection, arbitration etc.

Receiving the Letter of Credit: After getting contract for sale, exporter should ask the

buyer for Letter of Credit clearly stating terms and conditions of export and payment.

Procuring the materials: After making the deal and on having the L/C opened in his

favor, the next step for the exporter is to set about the task of procuring or manufacturing

the contracted merchandise.

Endorsement on EXP: Before the exporter with the customs or postal authorities lodges

the export forms, they should get all the copies endorsed by Janata Bank Limited. Before

shipment, exporter submits EXP. form with commercial invoice. Then Janata Bank’s

respective officers check it properly, if satisfied, certified the EXP. Without EXP

exporter cannot make shipment. The customer must declare all export goods on the EXP

issued by the authorized dealers.

(http://www.nfpl.net/pdf/procedure%20for%20import%20and%20export.pdf, 2012)

2.5 DISPOSAL OF EXPORT PROCEDURE

Original: Customs authority reports first copy of EXP to Bangladesh Bank after

shipment of the goods.

Duplicate: Negotiating bank reports the Duplicate to Bangladesh Bank in or after

negotiation date but not later than 14 days from the date of shipment.

Triplicate: On realization of export proceeds the same bank to the same authority

reports Triplicate.

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Quadruplicate: Finally, the negotiating bank as their office copy retains Quadruplicate.

Shipment of goods: Exporter makes shipment according to the terms and condition of

L/C.

Presentation of export documents for negotiation: After shipment, exporter submits the

following documents to Janata bank Limited for negotiation.

Bill of Exchange or Draft

Bill of Lading

Invoice

Insurance Policy/Certificate

Certificate of origin

Inspection Certificate

Consular Invoice

Packing List

Quality Control Certificate

G.S.P. certificate

Examination of Document: Banks deal with documents only, not with commodity. As

the negotiating bank is giving the value before repatriation of the export proceeds it is advisable

to scrutinize and examine each and every document with great care whether any

discrepancy(s) is observed in the documents. The bankers are to ascertain that the documents

are strictly as per the terms of L/C Before negotiation of the export bill. Bank officers assigned

for examining the export documents may use a checklist for their convenience.

Negotiation of export documents: Negotiation stands for payment of value to the exporter

against the documents stipulated in the L\C. If documents are in order, Janata Bank Limited

purchases (negotiates) the same on the basis of banker- customer relationship. This is known as

Foreign Documentary Bill Purchase (FDBP).If the bank is not satisfied with the documents

submitted to Janata Bank Limited and gives the exporter reasonable time to remove the

discrepancies or sends the documents to L/C opening bank for collection. This is known as

Foreign Documentary Bill for Collection (FDBC).

Settlement of Local Bills:

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The settlement of local bills is done in the following ways, -

The customer submits the L/C to Janata Bank Limited along with the documents to

negotiate

Janata Bank Limited officials scrutinize the documents to ensure the conformity with the

terms and conditions.

The documents are then forwarded to the L/C opening bank.

The L/C issuing banks gives the acceptance and forwards an acceptance letter.

Payment is given to the customer on either by collection basis or by purchasing the

document.

(http://www.nibusinessinfo.co.uk/content/exporting-and-other-ways-disposing-inward-

processing-goods, 2012)

2.6 IMPORT ITS MEANING AND DEFINITIONS

Import means purchase of goods or services from abroad. Normally consumers, firms and

Government organizations import foreign goods or services to meet their various necessities.

Main import items are food item, edible oil, fertilizer, petroleum, machineries, chemicals, raw

materials of industry, cement clinkers etc. So, in brief, we can say that import is the flow of

goods and services purchased by local agent staying in the country from foreign agent staying

abroad. (http://www.investopedia.com/terms/e/export.asp, 2013)

2.7 IMPORT PROCEDURE

Authorized Dealer, banks are always committed to facilitate import of different goods into

Bangladesh from the foreign countries. Import Section, which is under Foreign Exchange

Department of a bank, is assigned to perform this job. And to serve its parties demand to import

goods, it always maintains required formalities that are collectively termed as “Import

Procedure”.

i) At first, the importer must obtain Import Registration Certificate (IRC) from the CCI&E

submitting the following papers:

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Up to date Trade License.

Nationality and Asset Certificate.

Income Tax Certificate.

In case of company, Memorandum & Articles of Association and Certificate of

Incorporation.

Bank Solvency Certificate etc.

Required amount of registration fee

ii) Then the importer has to contact with the seller outside the country to obtain the Proforma

Invoice. Usually an indenter, local agent of the seller or foreign agent of the buyer makes this

communication.

Beside these other sources are:

• Trade fair.

• Chamber of Commerce.

• Foreign Missions in Bangladesh.

• Journals etc.

iii) When the importer accepts the Proforma Invoice, he/she makes a purchase contract with

the exporter detailing the terms and conditions of the import.

iv) After making the purchase contract, importer settles the means of payment with the seller. An

import procedure differs with different means of payment. The possible means are Cash in

Advance, Open Account, Collection Method and Documentary Letter of Credit. In most cases,

the Documentary Letter of Credit in our country makes import payment. Purchase Contract

contains which payment procedure has to be applied. (http://www.nfpl.net/pdf/procedure%20for

%20import%20and%20export.pdf, 2012)

2.8 PAYMENT MODES

Cash in advance: Importer pays full, partial or progressive payment by a foreign

DD, MT or TT. After receiving payment, exporter will send the goods and the

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transport receipt to the importer. Importer will take delivery of the goods from the

transport company.

Open Account: Exporter ships the goods and sends transport receipt to the

importer. Importer will take delivery of the goods and makes payment by foreign

DD, MT, or TT at some specified date.

Collection Method: Collection methods are either clean collection or

documentary collection. Again, Documentary Collection may be Document

against Payment (D/P) or Document against Acceptance (D/A). The collection

procedure is that the exporter ships the goods and draws a draft/ bill on the buyer.

The exporter submits the draft/bill (only or with documents) to the remitting bank

for collection and the bank acknowledges this. Then the remitting bank sends the

draft/bill (with or without documents) and a collection instruction letter to the

collecting bank. Acting as an agent of the remitting bank, the collecting bank

notifies the importer upon receipt of the draft. The title of goods is released to the

importer upon full payment or acceptance of the draft/bill.

Letter of credit: Letter of credit is the well-accepted and most commonly used

means of payment. It is an undertaking for payment by the issuing bank to the

beneficiary, upon submission of some stipulated documents and fulfilling the

terms and conditions mentioned in the letter of credit.

(http://www.nibusinessinfo.co.uk/content/exporting-and-other-ways-disposing-

inward-processing-goods, 2012)

2.9 OPENING LETTER OF CREDIT (L/C)

In global business environment, buyers and sellers are often unknown to each other. So seller

generally demands guarantee of payment for his exported goods. In this situation bank has an

important role. Bank gives export guarantee that it will pay for the goods on behalf of the buyer.

This guarantee is called “Letter of Credit” or LC. Thus by letter of credit the contract between

importer and exporter find a legal sphere. (http://www.investopedia.com/terms/e/export.asp,

2013)

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2.10 PROCEDURE OF OPENING THE LETTER OF CREDIT (L/C)

After receiving the perform invoices from the exporter, by applying for the issue of documentary

credit, the importer requests his/her bank to make a promise of payment to the supplier.

Obviously, the bank will only agree to this request if bank can rely fully on reimbursement by

the applicant. According to the accepted custom as the sole security for the credit, particularly if

they are not the sorts of commodity that can be traded on an organized market, such an

agreement would make the bank to bear excessive risk outside its specialized field. The applicant

must therefore have adequate fund in the bank account or a credit line sufficient to cover the

required amount. Banks deals with documents and not with goods. Once the bank has issued the

credit its obligation to pay is conditional on the presentation of the stipulated documents within

the prescribed time limit. The applicant cannot prevent a bank from honoring the documents on

the grounds that the beneficiary has not delivered goods. The importer submit the following

documents with the application for opening the L/C

• Tax Identification Number (TIN)

• Valid trade license

• Import registration certificate (IRC)

The bank will supply the following documents before opening the L/C

• LCA form

• IMP form

Submission of Necessary Documents by Exporter to the Negotiating Bank:

As soon as the seller/exporter receives the credit and is satisfied that he can meet its terms and

conditions, he is in a position to load the goods and dispatch them. The seller then sends the

documents evidencing the shipment to the bank. Exporter will submit those documents in

accordance with the terms and conditions as mentioned in L/C. Generally the documents

observed by the foreign exchange department are:

Bill of exchange

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Commercial invoice

Bill of lading / Air way bill / Truck receipt

Certificate of origin

Packing list

Clean Report of Finding (CRF)

Insurance cover note

Pre-shipment certificate

The Documents Sent To The Issuing Bank Through The Negotiating Bank:

The negotiating bank carefully checks the documents provided by the exporter against the credit,

and if the documents meet all the requirement of the credit, the bank will pay, accept, or

negotiate in accordance with the terms and conditions of the credit. Then the bank sends the

documents to the L/C opening bank.

Making the Payment of Foreign Bill through the Reimbursing Bank:

The L/C issuing bank getting the documents checks immediately and if they are in order and

meet the credit requirements; it will arrange to make payment against L/C through

reimbursement bank and will send the importer the document arrival notice.

2.11 SWIFT

SWIFT (Society for Worldwide Interbank Financial Telecommunication) provides a network

that enables financial institutions worldwide to send and receive information about financial

transactions in a secure, standardized and reliable environment. Swift also sells software and

services to financial institutions, much of it for use on the SWIFTNet Network, and ISO 9362.

Business Identifier Codes (BICs) are popularly known as "SWIFT codes". High-value payment

market infrastructures focus primarily on security and resilience to support time-critical

payments, efficiency to have the right trade-off between risks and cost. Liquidity cost reduction

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by early finality, easy collateral coverage and better liquidity management through real-time

interactive services Balancing cost, efficiency and risk are your key requirements, and SWIFT

meets them with a reliable, secure and reusable messaging infrastructure, supporting

international and proprietary standards. More than 62 high-value payments clearing and

settlement systems covering more than 90 countries and carrying more than 240 million

payments a year, rely on SWIFT for secure messaging services and common message standards

essential to their smooth operation. Because customers are multilateral, customers need a trusted

third party like SWIFT to provide secure, reliable and proven messaging solutions. SWIFT’s

offering is more compelling in terms of cost and risk than alternatives, thanks to reusability of

participants’ existing SWIFT infrastructures, value-added services such as FIN Copy, and

standard support services. SWIFT solutions for high-value payment clearing systems support the

messaging layer for payment transaction processing, cash management, business administration

functions, reporting and generic communication. ((http://www.janatabank-bd.com/jb7.htm,

2013), 2013)

2.12 THE FUNCTIONS OF SWIFT

SOLUTIONS FOR

For payments

Cash Reporting

Supporting your real-time account information needs

Payments and cash management

Economic changes in the payments landscape have forced the banking community to find new

ways to reduce their operational costs, mitigate their liquidity risk and increase the revenue and

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efficiency of their core payment products.. SWIFT has developed offerings in payments and cash

management to help the banking community meet these urgent challenges: Enhance customer

service: automate exceptions and investigations in order to reduce enquiry turn-around time and

to provide transparency on enquiry status to your customers, provide a compelling value

proposition for corporate or person-to-person retail payments for immigrants (workers’

remittances) – including mobile payments. Improve liquidity and risk management: receive

end-of-day as well as intra-day cash reports – information vital to get visibility on cash positions

across your organization and to improve liquidity management. In addition, SWIFT is

considering extending its value proposition to include liquidity risk management tools. Increase

operational efficiency and save costs: SWIFT’s single window allows you to rationalize your

connectivity channels with:

1. Correspondent banks for clearing and settlement of domestic or foreign currency payments

using SWIFT’s payments clearing messaging services

2. High value payments clearing and/or settlement systems operating on a real-time gross

settlement basis using SWIFT’s secure and reliable FIN domestic services for high value

payment market infrastructures

3. Retail payments clearing systems using SWIFT’s cost efficient services for retail payments

market infrastructures: the services help to clear “batches” of payments prior to settlement at

discrete intervals, with or without netting. ((http://www.janatabank-bd.com/jb7.htm, 2013),

2013)

3.1 HISTORICAL BACKGROUND OF THE ORGANIZATION

Janata Bank Limited is the 2nd largest state owned commercial bank in Bangladesh. Immediately

after the liberation of Bangladesh in 1971, the erstwhile United Bank Limited and Union Bank

Limited were renamed as Janata Bank. The established of Janata Bank was happened under the

Bangladesh Bank order 1972. It was incorporated as a public Limited Company on 21, May 07

vide certificate of incorporation No-C66933(4425)07 in the early era of privatization. Janata

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Bank Limited, one of the state owned commercial banks in Bangladesh, has an authorized capital

of Tk. 20000 million (approx. US$ 250 million), paid up capital of Tk. 11000.00 million, reserve

of Tk.17234 million. The Bank has a total asset of Tk. 508567 million as on 31 st December

2012. Immediately after the emergence of Bangladesh in 1971, the erstwhile United Bank

Limited and Union Bank Limited were renamed as Janata Bank. On 15 th November, 2007 the

bank has been corporatised and renamed as Janata Bank Limited. Janata Bank Limited

operates through 889 branches including 4 overseas branches at United Arab Emirates. It is

linked with 1202 foreign correspondents all over the world. The Bank employees more than

15(fifteen) thousand persons. (http://www.janatabank-bd.com/jb1.htm, 2013)

3.2 ORGANIZATIONAL STRUCTURE

13.2.1. MANAGEMENT ASPECT

Like every other business organization, the foremost duty of the top management is to makes all

the major decisions of Janata Bank. The boards of directors are being at the topmost level of

organizational structure plays an important role in policy formulation and successful execution,

but it is not a direct concern of the day-day operations of the bank. The duty was delegated to the

management committee. The board mainly sets the objectives and policies of the bank. The

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management consists of one chairman, eleven directors, one CEO & MD and one company

secretary.. Mid and lower level employees get the direction and instruction from the Board of

Directors about the tasks they have to meet. The chief executive provides the guideline to the

managers and employees, but bears the responsibility for determining how tasks and goals are to

be attained. (http://www.janatabank-bd.com/jb1.htm, 2013)

(http://www.janatabank-bd.com/jb1.htm, 2013)

3.3 ORGANIZATION MISSION AND VISION

3.3.1 MISSION:

As it is recognized as the leading commercial bank in the aspect of Bangladesh market and it is

providing retail and corporate banking services, it is trusted and respected as a partner in the

social and economic development program in our country and among our nation.


3.3.2 VISION:

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Becoming effective largest commercial bank in the perspective of Bangladesh to support socio-

economic development of the country and assists go ahead for becoming leading bank in South-

Asia. (http://www.janatabank-bd.com/jb1.htm, 2013)

3.4 OFFERED SERVICES BY THE ORGANIZATION

Beside regular banking operation, Janata Bank Limited offers specialized services to different

walks of clients/agencies throughout the country. Under the network of utility services,

customers of different govt. organizations, corporate bodies, local bodies, educational

institutions, students, etc are getting essential benefits from the Bank continuously. The utility

services of Janata Bank Limited's are:

3.4.1 BILLS COLLECTION:

• Collecting the gas bills of Titas, Bakhrabad and Jalalabad Gas Transmission and Distribution

Companies.

• Regular collection of electricity bills of Dhaka Electricity Supply Authority, Dhaka

Electricity Company, Bangladesh Power Development Board and Rural Electrification Board.

• Regularly collects the telephone bills of Telegraph and Telephone Board.

• Collects Water/Sewerage bills of Water and Sewerage Authority.

• Municipal holding tax of City Corporation/ Municipalities is collected by JBL.

3.4.2 PAYMENTS MADE ON BEHALF OF GOVT.

• Payment of non- Govt. teacher’s salaries

• Providing girl Students scholarship/stipend & Primary Student Stipend.

• Provides army pension

• Payment of widows, divorcees and destitute women allowances

• Old-age Allowances

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• Food procurement Bills

As per decision of the govt. 46 (Forty Six) branches of JBL(40 branches in Dhaka city, 1(one)

branch in Narayangonj city and 5(five) branches in Chittagong city) are involved to receive all

utility bills in a same station from January'04. (http://www.janatabank-bd.com/jb8.htm, 2013)

3.5 SERVICES AREAS

Branches

There are 851 branches of Janata Bank

Limited in home and abroad. Among them

443 branches are situated in urban areas

including four foreign branches and

408branches are in rural areas. And all

foreign branches are situated in United Arab

Emirates. There are 851 branches of Janata

Bank Limited in home and abroad. Among

them 443 branches are situated in urban

areas including four foreign branches and

408branches are in rural areas. All foreign

branches are situated in United Arab

Emirates

.(http://www.janatabank-bd.com/jb9.htm,

2013)

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3.5.1List Of Branch

Local Office 1

Corporate-1 Branch 12

Corporate-2 Branch 40

Overseas Branch 04

Grade-1 Branch 204

Grade-2 Branch 209

Grade-3 Branch 296

Grade-4 Branch 117

Total Branches : 883


3.5.2 Overseas Branch

SL

.

Name Status

01. Abu Dhabi Foreign

02. Al-Ain Foreign

03. Sharjah Foreign

04. Dubai Foreign

Total : 04


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4.1 FOREIGN EXCHANGE MANAGEMENT OF JBL

One of the most important businesses carried out by the commercial bank is foreign trading.

General focusing states that, the trade among various countries falls for close link between the

parties dealing in trade. The situation calls for expertise in the field of foreign operations. The

bank, is referred to as rending international banking operation which provides such services.

Transactions with overseas countries in respect of export, import and foreign remittance dealings

are under the preview of foreign exchange department. International trade demands a flow of

goods from seller to buyer and of payment from buyer to seller. In this case the bank forms bridge

between the buyer and seller. Among all departments Foreign exchange department of Janata

Bank Limited is one of the most important. This department handles various types of activities.

Among these main three are as follows:

Export

Import and

Foreign remittance

JBL collects remittances from NRB from different countries and transfers the currency in BDT to

the destined location. Here I have tried to describe the remittance processing structure of JBL.

Along with, I have included the changes made by wired transfer service SWIFT. In this report I

have tried to show the contribution of JBL’s remittance earning on national remittance earning.

JBL’s performance is not dissatisfactory but the remittance earning is not increasing as the rising

national remittance curve. After analyzing the data of JBL’s remittance earnings process this

report have suggested that JBL lacks in foreign currency collection structure. Its remittance

earning is increasing but the increase is far below the national remittance increase. JBL should

take up to the mark structural change in service to cope with the national trend and help

Bangladesh earn more remittance.

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4.2 EXPORT OF JBL

Janata Bank Limited exports a large quantity of goods and services to many countries. Readymade

textile garments (both knitted and woven), Jute, Jute-made products, frozen shrimps, tea, hide and

skin, vegetables are the main goods that Bangladeshi exporters exports to foreign countries.

Garments sector is the largest sector that exports the lion share of the country's export. Bangladesh

exports most of its readymade garments products to U.S.A and European Community (EC)

countries. Bangladesh exports about 40% of its readymade garments products to U.S.A. Most of

the exporters who export through Janata Bank Limited foreign exchange Branch are readymade

garment exporters. They open export L/Cs here to export their goods, which they open against the

import L/Cs opened by their foreign importers

4.3 EXPORT FINANCE OF JBL

To boost up country's Export, Janata Bank Limited has been providing different kinds of assistance to exporters. Some of which are as under:-

Providing Pre-Shipment and Post-Shipment Finance, Export Guarantee and bonding

facility etc.

Concessional rate of interest for exports Finance.

Back to Back L/C under bonded Warehouse facility

Sight & Unasked L/C against Firm Contract for import of raw materials.

Sight L/C under EDF

Exporter's Retention Quota A/C both interest bearing and non-interest bearing.

Export incentive Program.

Banking at Export Processing Zone

Scope for establishment of export oriented industry by 100% foreign investment and

by joint-venture

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The sole bank to disburse Government Export Promotion Fund against export of

Computer Software & Data Entry Processing..


Janata Bank Limited's Export Performance

In 2011 Janata Bank Limited's export target is Tk.-14,400.00 cr and the achievement isTk.- 15,375.82 cr what is about 109.82% of the target with 29.74% growth.

Export growth of Janata Bank Limited (2002-2011): (Taka in Core)

Year Target Achievement Achievement Rate

Growth

2002 4000.00 3445.46 78.84% +6.38%2003 4000.00 4286.49 107.16% +24.40%2004 4800.00 5462.33 113.80% +27.43%2005 6825.00 5839.48 85.56% +6.90%2006 7000.00 7089.66 101.28% +21.40%2007 7,798.38 7185.55 92.14% +01.35%2008 8622.66 8541.78 99.06% +18.87%2009 6648.00 8565.31 128.84% +00.28%2010 10500.00 11851.52 112.87 +38.37%2011 14000.00 15375.82 109.82% +29.74%


Export growth of Janata Bank Limited (2002-2011): (Taka in Core)

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1 2 3 4 5 6 7 8 9 100

2000

4000

6000

8000

10000

12000

14000

16000

YearTargetAchievementAchievement RateGrowth


Contribution to National Export business of Janata Bank Limited (Million US$)

National Export Contribution to National Export of Janata Bank Limited

Financial Year Target Achievement Achievement Percentage2003-2004 7227.70 7603.00 632.90 8.21%2004-2005 8565.78 8655.00 692.80 8.00%2005-2006 10159.20 10526.16 958.02 9.10%2006-2007 12500.00 12187.50 1057.68 9%2007-2008 14500.00 14111.08 1107.50 8%2008-2009 16298.43 15565.19 1293.21 8%2009-2010 17600.00 16204.65 1407.11 8.68%2010-2011 18500.00 22924.38 2075.38 9.05%(http://www.janatabank-bd.com/jb5.htm, 2013)

Contribution to National Export business of Janata Bank Limited (Million US$)

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2003-2004

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Percentage Achievement AchievementTarget


Commodity-wise Export performance: 2005 to 2011

(Taka in Core)

Year RMG Frozen Fish

Hide & Skin

Raw Jute

Jute Goods

Vegetables

Tea Others Total

2005 2933.47

595.63 615.34 56.80 479.87 126.58 9.64 1022.15

5839.48

2006 3549.82

674.47 758.66 68.84 544.40 136.35 2.79 1354.33

7089.66

2007 3540.93

743.28 780.70 75.91 495.55 127.05 1.94 1420.19

7185.55

2008 4214.55

797.60 837.55 74.68 644.54 162.90 5.20 1804.76

8541.78

2009 4447.82

817.53 1021.22

101.78 521.41 156.60 2.09 1796.86

8865.31

2010 6367.07

1032.42

1318.93

182.74 790.16 163.54 0.20 1996.46

11851.52

2011 9597. 1427.5 1899.8 146.30 916.63 211.64 0.00 1176.5 15375.8 of 69

28 4 6 7 2(http://www.janatabank-bd.com/jb5.htm, 2013)

Year

RMG

Frozen

Fish

Hide & Sk

in

Raw Ju

te

Jute Goods

Vegeta

bles

Tea

Others

Total

02000400060008000

10000120001400016000

Series1Series3

Series5Series7

Series1Series2Series3Series4Series5Series6Series7


4.4 IMPORT OF JBL

Import means purchase of goods or services from abroad. Normally consumers, firms and

Government organizations import foreign goods or services to meet their various necessities.

Main import items are food item, edible oil, fertilizer, petroleum, machineries, chemicals, raw

materials of industry, cement clinkers etc. So, in brief, we can say that import is the flow of goods

and services purchased by local agent staying in the country from foreign agent staying abroad.

4.5 IMPORT FINANCE OF JBL

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Through quite a good number of Authorized Dealer Branches and 1198 nos. foreign

correspondents world wide Janata Bank Limited has been extending full range import and relevant

finance facilities.

Import Items :

Capital Machineries and Industrial raw materials.

Fuel & Lubricants.

Intermediate goods.

Consumer durable, spare parts and equipments.

Consumer goods : Food & Food Grains, Baby food, Petroleum, CDSO (Crude Degummed

Soya bean Oil), CPO (Crude Palm Olin) Oilseeds, Cement Clinker, Construction Materials,

Fertilizer, Chemicals and many other goods permissible by Import by Import Policy of the

country. (http://www.janatabank-bd.com/jb5.htm, 2013)

Facilities Offered :

Opening of L/C at competitive/ reasonable margin and commission

Interest at concession rate on import finance to the prime customers & interest rebate

facilities.

Import Trend

Setting Industrial vision to facilitate optimally, bank's involvement has been showing sharp rising

trend as under:

Year Taka in Million2000 48004.802001 54666.302002 58889.102003 60476.802004 74919.70

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2005 72912.202006 128809.002007 84065.40


1 2 3 4 5 6 7 80

20000

40000

60000

80000

100000

120000

140000

YearTaka in Million

4.6 FOREIGN REMITTANCE OF JBL

Inward foreign remittance through Janata Bank Ltd. up to November 2012 is Tk. 51508.55

million. Foreign remittance from NBRs reached record high of Tk. 45924 million in 2011 against

Tk.36788 million in 2010 and continue to play an important supporting role in strengthening the

economy of the county Janata Bank ltd. by reducing lead-time, has ensured quick delivery of

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foreign remittance, an NBR branch has been opened to serve exclusively Non-resident

Bangladeshis through Speedy Money Remittance System with instant to the beneficiaries.

Anybody willing to remit foreign currency from any corner of the world can use wide network of

the bank. The remittance reaches to the beneficiary within 3 days without charging any

commission. Our worldwide network includes 4 branches in UAE, 2 exchange houses in Italy and

correspondent relationship with all the major Banks and all important trade centers of the world.

Recently Janata Bank Ltd. has launched its Speedy Foreign Remittance Payment System which

enables beneficiaries to receive their money within shortest possible time. The beneficiary also

gets information of remittance through automated SMS. It’s a secured, easy, cost effective and

speedy way of remittance for the remitter. Janata bank Ltd. has signed an agreement with

Western Union Network to facilitate wide range of remittance of the globe. Both the organizations

make it possible to receive the money from about 300,000 locations of 200 countries instantly

with prevailing mutual mechanism and workforce. The achievement of Janata Bank Ltd. in

attracting foreign remittance as compared to country’s performance is given bellow:

COUNTRY WISE REMITTANCE OF JANATA BANK LIMITED

To facilitate sending money in Bangladeshi Taka directly, Janata Bank Limited has Taka Drawing

Arrangement with many banks/exchange companies in different countries. The expatriate

Bangladeshis may send their money in BDT (Bangladeshi Taka) through the branches/subsidiaries

of Janata Bank Limited and foreign banks/exchange companies. Remittance services are available

at all branches and foreign remittances may be sent to any branch by the remitters favoring their

beneficiaries. Remittances are credited to the account of beneficiaries instantly or within shortest

possible time.

Inward remittance from Bangladeshi nationals working abroad continued to play an important role

in strengthening the current account. Receipts on this sector increased gradually in every year

from 2006 to 2009. The underlying reason was that Bangladesh Bank has simplified the approval

policy of drawing arrangements between foreign exchange houses and domestic bank. Janata

Bank’s management has taken this opportunity.

For quick payment of TTs issued by 4(Four) UAE branches of Janata Bank Limited ( Abu Dhabi,

Al-Ain, Dubai &Sharjah branch) Foreign Exchange Corporate Branch, Dhaka( FECB, Dhaka),

Laldighi East Corporate Branch, Chittagong(LDE, Ctg), Foreign Exchange Corporate Branch,

Sylhet( FECB, Sylhet), Khulna Corporate Branch, Khulna, Barisal Corporate Branch, Barisal

&Rajshahi Corporate Branch, Rajshahi are nominated.

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To facilities to its remitters Janata bank Limited has started-

1. FECB, Dhaka will cover whole Dhaka Division,

2. LDE, Ctg will cover whole Chittagong Division, except branches under greater Comilla and

Noakhali Area.

3. FECB, Sylhet will cover whole Sylhet Division,

4. Khulna Corporate will cover whole Khulna Division,

5. Barisal Corporate will cover whole Barisal Division,

6. Rajshahi Corporate will cover whole Rajshahi Division,

7. Comilla Corp. will cover all branches under greater Comilla district.

8. Noakhali Corp. will cover all branches under greater Noakhali district.

Commission for issuance of Taka Drafts from our UAE branches has been reduced and refixed

from AED 10.00 to AED 4.00 and commission for issuance of TTs drawn on Bangladesh and

payable at any bank branches are re-fixed at AED 12.00 from AED 30.00. Commission for

issuances of Taka drafts at UAE branches has been reduced irrespective of amount. 1% interest

above the normal savings deposit rate is offered to SB accounts receiving foreign remittance.

Facilities offered to the remitters

Commission for issuance of Taka Drafts from our UAE branches has been reduced and refixed

from AED 10.00 to AED 4.00 and commission for issuance of TTs drawn on Bangladesh and

payable at any bank branches are re-fixed at AED 12.00 from AED 30.00. Commission for

issuances of Taka drafts at UAE branches has been reduced irrespective of amount.

1% interest above the normal savings deposit rate is offered to SB accounts receiving foreign

remittance.

NON RESIDENT FOREIGN CURRENCY DEPOSIT ACCOUNT (NFCD)

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Expatriate Bangladeshi Nationals and persons of Bangladesh origin including those having dual

nationality may open non- Resident Foreign Currency Deposit Account with any authorized

dealer branches of Janata Bank Limited in Bangladesh for a period of one month, three months,

six months or twelve months on renewable basis depositing minimum US Dollar 1000/- or Pound

Sterling 500/- . The eligible persons may open this account at any time of their return to

Bangladesh. Interest on NFCD Account is applicable on the basis of Euro currency interest rate

which is tax free in Bangladesh. Principal amount including accrued interest is convertible in

local currency as well as reparable to the account holder abroad . This account may be maintained

as long as the account holder desires. NFCD account opening Forms are available with

authorized dealer branches of Janata Bank Limited in Bangladesh and Embassy/ High

Commission Offices of Bangladesh abroad.

Rules/Procedures for Opening NFCD Account

Application in plain paper to Manager of concern Authorized Dealer branches of Janata

Bank Limited.

Signature of the applicant verified by an official of Bangladesh Embassy /High

Commission abroad or Notary Public of the country where the applicant resides and

photocopy of the pages of passport containing specimen signature of the applicant where

Janata Bank Limited branches or representative offices are not available. FC Account may

also be opened through our 4 (four) U.A.E. branches and 2 (two) branches of Janata

Exchange Co. Italy.

Photocopy of passport attested by officials of Embassy / High Commission Office of

Bangladesh abroad or our branch officials.

Two copies of passport size photograph.

Letter of authority for handover of NFCD Receipt.

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Resident Foreign Currency Deposit ACCOUNT (RFCD):

Persons ordinarily resident in Bangladesh may open RFCD Accounts with the foreign currencies

brought in at the time of their return from abroad. This account may be opened with any

authorized dealer branches of Janata Bank Limited in US Dollar and Pound Sterling. Interest is

payable if the deposit is maintained for a term of not less than one month and the balance is not

less than US Dollar 1000/- and Pound Sterling 500/-. RFCD account may be maintained as long as

the account holder desires. Balances of such accounts are repatriable abroad.

Non-Resident Investor's Taka Account (NITA):

Expatriate Bangladeshis may invest their hard earned money in the Stock Exchange for purchase

of Bangladeshi shares and securities. For this purpose, the expatriates may open NITA account

with any authorized dealer branches of Janata Bank Limited. Divident earned from

shares/securities is tax-free in Bangladesh. Balance of NITA account is repatriable abroad at the

prevailing rate of exchange. NITA account may be operated by the nominee. The account holders

may nominate Janata Bank Limited to act as nominee also.

Wage Earners Development Bond (WEDB)

Expatriate Bangladeshi Wage Earners may invest their hard earnings in five years WEDB on

renewable basis for denomination of Taka 25,000/-, Taka 50,000/-, Taka 100,000/-,Taka

200,000/-, and Taka 500,000/- or any multiple of these amounts at attractive rate (Present rate

12.00% (with effect from 1st July 2010) compoundable in every six months) of interest and the

accrued interest is tax free in Bangladesh. Principal amount of WEDB is reparable to the bond

holder abroad at the prevailing rate of exchange.

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4.7 SWIFT

SWIFT (Society for Worldwide Interbank Financial Telecommunication) provides a network that

enables financial institutions worldwide to send and receive information about financial

transactions in a secure, standardized and reliable environment. Swift also sells software and

services to financial institutions, much of it for use on the SWIFT Net Network, and ISO 9362.

Business Identifier Codes (BICs) are popularly known as "SWIFT codes"..High-value payment

market infrastructures focus primarily on security and resilience to support time-critical payments,

efficiency to have the right trade-off between risks and cost. Liquidity cost reduction by early

finality, easy collateral coverage and better liquidity management through real-time interactive

services Balancing cost, efficiency and risk are your key requirements, and SWIFT meets them

with a reliable, secure and reusable messaging infrastructure, supporting international and

proprietary standards. More than 62 high-value payments clearing and settlement systems

covering more than 90 countries and carrying more than 240 million payments a year, rely on

SWIFT for secure messaging services and common message standards essential to their smooth

operation. Because customers are multilateral, customers need a trusted third party like SWIFT to

provide secure, reliable and proven messaging solutions. SWIFT’s offering is more compelling in

terms of cost and risk than alternatives, thanks to reusability of participants’ existing SWIFT

infrastructures, value-added services such as FIN Copy, and standard support services. SWIFT

solutions for high-value payment clearing systems support the messaging layer for payment

transaction processing, cash management, business administration functions, reporting and

generic communication. ((http://www.janatabank-bd.com/jb7.htm, 2013), 2013)

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4.8List of SWIFT Branch/Office

SL No. Branch/Office SWIFT Code1. Janata Bank Ltd. Head Office JANBBDDH2. Janata Bhaban Corp. BR JANBBDDHJBC3. Local Office, Dhaka JANBBDDHJBD4. Dilkusha Corp. BR, Dhaka JANBBDDHDCB5. Motijheel Corp. BR JANBBDDHMC

A6. Foreign Ex. Corp. BR, Dhaka JANBBDDHFEC7. Imamgonj Corp. BR JANBBDDHIMA8. Topkhana Corp. BR JANBBDDHTKD9. Kamal Ataturk Corp. BR, Dhaka JANBBDDHKA

C10. Shantinagar Corp. BR JANBBDDHSNB11. Ramna Corp. BR, Dhaka JANBBDDHJRD12. B B Road Corp. BR, N.Gonj JANBBDDHBN

G13. Bogra Corp. BR JANBBDDHBO

G14. Rangpur Corp. BR JANBBDDHRNP15. MK Road Corp. BR, Jessore JANBBDDHJMK16. Khulna Corp. BR JANBBDDHKD

A17. Barisal Corp. BR JANBBDDHBSL18. For. Ex. Corp. BR, Sylhet JANBBDDHFES19. Comilla Corp. BR JANBBDDHCCN20. Laldighi East Corp. BR, Ctg. JANBBDDHLDE21. Foreign Ex. Corp. BR, Ctg. JANBBDDHCD

A22. SK Mojib road Corp. BR, Ctg. JANBBDDHSMS23. Sadharan Bima Bhaban Corp. Ctg. JANBBDDHSBB24. Dinajpur Corp. BR JANBBDDHDNJ25. Faridpur Corp. BR JANBBDDHFAR

((http://www.janatabank-bd.com/jb7.htm, 2013), 2013)

Overseas Branches

Branch/Office SWIFT CodeJanata Bank Ltd. UAE JANBAEAA

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Abu Dhabi BR JANBAEAAAUHAL-AIN BR JANBAEAAALNDUBAI BR JANBAEAADXBSHARJAH BR JANBAEAASHJ

((http://www.janatabank-bd.com/jb7.htm, 2013), 2013)

4.9 DOCUMENTS USED IN FOREIGN EXCHANGE There are some documents which are specially used in foreign exchange such as

Bill Of Lading

Proforma Invoice

Commercial Invoice

Packaging List

Copy Of Foreign Exchange Message

Letter Of Credit Authorization

Fee Receipt

Certificate Of Origin Of Country

Foreign Currency Account Opening form

Letter Of Authority For Operating Foreign Currency Account Under Wage Earners Scheme

Foreign Currency Account Under Wage Earners Scheme

Specimen Signature Card

Login System

4.9.1 Bill Of Lading

A document issued by a carrier, or its agent, to the shipper as a contract of carriage of goods. It is

also a receipt for cargo accepted for transportation, and must be presented for taking delivery at

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http://www.businessdictionary.com/definition/delivery.html

http://www.businessdictionary.com/definition/transportation.html

http://www.businessdictionary.com/definition/cargo.html

http://www.businessdictionary.com/definition/receipt.html

http://www.businessdictionary.com/definition/goods.html

http://www.businessdictionary.com/definition/contract-of-carriage.html

http://www.businessdictionary.com/definition/shipper.html

http://www.businessdictionary.com/definition/agent.html

http://www.businessdictionary.com/definition/carrier.html

http://www.businessdictionary.com/definition/document.html

the destination. (http://www.businessdictionary.com/definition/bill-of-lading-B-L.html, 2013)See

figure 1.1

4.9.2 Proforma Invoice

A proforma invoice is a quote in an invoice format that may be required by the buyer to apply

for an import license, contract for pre-shipment inspection, open a letter of credit or arrange for

transfer of hard currency. A proforma may not be a required shipping document, but it can

provide detailed information that buyers need in order to legally import the product. Proforma

invoices basically contain much of the same information as the formal quotation, and in many

cases can be used in place of one. It should give the buyer as much information about the order as

possible so arrangements can be made efficiently. The invoices inform the buyer and the

appropriate import government authorities details of the future shipment; changes should not be

made without the buyer’s consent. (http://nhexportassistance.com/documents-forms/export-

documentation-examples/doc_view/11-proforma-invoice, 2013)

As mentioned for the quotation, the points to be included in the proforma are:

1. Seller’s name and address

2. Buyer’s name and address

3. Buyer’s reference

4. Items quoted

5. Prices of items: per unit and extended totals

6. Weights and dimensions of quoted products

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7. Discounts, if applicable

8. Terms of sale or Incoterm used (include delivery point)

9. Terms of payment

10. Estimated shipping date

11. Validity date

See figure 1.2

4.9.3 Commercial Invoice

A commercial invoice form is used for all shipments containing non-documents. The commercial

invoice is the primary document used for importation control, valuation, and duty determination.

This document identifies the products being shipped.

The form should include:

Complete name and address information for both shipper and consignee

Phone numbers for both shipper and consignee

Terms of Sale (Incoterm)

Reason for export

A complete description of the item

What is the item?

What is the item used for?

Harmonized Tariff Codes, if known

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Country of origin (where manufactured) for each commodity

Number of units, unit value, and total value (purchase price) of each item

Number of packages and total weight

Shipper's signature and date

(http://www.ups.com/content/us/en/shipping/international/documents/intl_forms/

comm_invoice.html, 2013) See figure 1.3

4.9.4 Packaging list

Packing list is often used to show the information about order delivery. Generally packing list is

known as shipping list and packing slip. Packing slip shows the number of items and kind of items

on the behalf of the outside supplier and vendors to the clients/contractors. Packing slips are

mostly used in term of large scale organizations. This particular document is prepared by the

shipper who is responsible to monitor the process of shipping for timely delivery of order to the

clients. Packing list is tagged on the container or trailer that is delivered to the customers. Other

necessary details of transportation are also entered in packing list.

(http://www.msofficeguru.org/packing.html, 2013) See figure 1.4

4.9.5 Letter Of Credit Authorization

This Letter of Credit - Authorization and Indemnity authorizes a bank to issue a letter of credit for

a company. In exchange, the company indemnifies the bank for any payments which the company

does not make under this letter of credit. This letter contains the name of the bank, name of the

credit beneficiary and the identity of any security held by the bank in exchange for the letter of of 69

credit. It is important that this business transaction be clearly set out in writing. A written Letter of

Credit with Authorization and Indemnity will prove valuable in the event the beneficiary defaults

in their credit obligations or if litigations is filed.

This Letter of Credit - Authorization and Indemnity includes the following:

Parties: Names of bank issuing the letter and beneficiary under the letter of credit;

Indemnity: Beneficiary indemnifies the bank for the payment of any obligations under

this letter of credit;

Authorization: Beneficiary authorizes bank to debit its account in an agreed upon amount

if account is outstanding;

Signature: This authorization and indemnification must be signed and dated by the

beneficiary. (http://www.findlegalforms.com/product/letter-of-credit-authorization-and-

indemnity/, 2013) See figure 1.5

4.9.6 Certificate Of Origin Of Country

A Certificate of Origin (often abbreviated to C/O or COO) is a document used in international

trade. It is a printed form, completed by the exporter or its agent and certified by an issuing body,

attesting that the goods in a particular export shipment have been wholly produced, manufactured

or processed in a particular country. (http://en.wikipedia.org/wiki/Certificate_of_origin, 2013) See

figure 1.6

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RECOMMENDATION

It is clear that the Janata Bank Limited Foreign Exchange department has ensured both quality and

services which helps to improve the overall status of the Bank. Janata bank Limited has able to

achieve second position in country and op position among public banks in export sector in 2013.

For a greater achievement and attain more priority among the customers and clients JBL can walk

through the way under some precision direction:

JBL should approach more attractive facilities with clear go ahead.

To survive in the cut throat competition JBL must step into launching ATM service

as well as debit and credit card facilities.

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Insufficient number of exporter and importer is not enough to achieve the goal who

operate through this bank. So JBL should offer more facilities to attract their clients.

It is a crying need to provide more quality services to their clients in order to compete

in the market.

Total revival of investment of commodity in commercial sector JBL requires a very

rapid and complete action to provide a more accurate and fast recycling of invest

Less interesting export facilities should be proven improved.

Finding out the newer destination of our export goods

adjusted with the newer sector’s customs.

With successful promotional programs JBL can attract more people from this

particular walk of life.

The overall matter of foreign remittance should be driven under a complete

computerized system having a main server country wide to keep up a congenial

environment.

CONCLUSION

Nearly boundary is seen while inspecting the Foreign Exchange Department of Janata Bank Ltd.’s

success. That means, this bank successfully finished last year with an appreciable

performance .JBL attained first place in the last year among the government banks fort’s flawless

completion of blending of solid quality and sincere service. For a greater achievement and attain

more priority among the customers and clients JBL can walk through the way under some

precision direction

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It is clear that the Janata Bank Limited Foreign Exchange department has ensured both quality and

services which helps to improve the overall status of the Bank. For this reason Janata bank

Limited has able to achieve second position in country and top position among public banks in

export sector in 2012

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REFERENCE

1. (http://www.janatabank-bd.com/jb7.htm, 2013). (2013, 02 03). Retrieved 07 22, 2013,

from www.janatabank-bd.com: www.janatabank-bd.com

2. http://en.wikipedia.org/wiki/Certificate_of_origin. (2013, 02 05). Retrieved 08 16, 2013,

from en.wikipedia.org: en.wikipedia.org

3. http://nhexportassistance.com/documents-forms/export-documentation-examples/

doc_view/11-proforma-invoice. (2013, 02 03). Retrieved 08 16, 2013, from

www.nhexportassistance.com: www.nhexportassistance.com

4. http://www.businessdictionary.com/definition/bill-of-lading-B-L.html. (2013, 02 06).

Retrieved 08 19, 2013, from www.businessdictionary.com: www.businessdictionary.com

5. http://www.findlegalforms.com/product/letter-of-credit-authorization-and-indemnity/.

(2013, 02 05). Retrieved 08 15, 2013, from www.findlegalforms.com:

www.findlegalforms.com

6. http://www.investopedia.com/terms/e/export.asp. (2013, 02 08). Retrieved 08 19, 2013,

from www.investopedia.com: www.investopedia.com/

7. http://www.janatabank-bd.com/jb1.htm. (2013, 07 1). Retrieved 07 01, 2013, from

http://www.janatabank-bd.com: http://www.janatabank-bd.com


www.janatabank-bd.com: www.janatabank-bd.com





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13. http://www.msofficeguru.org/packing.html. (2013, 02 05). Retrieved 08 22, 2013, from

www.msofficeguru.org: www.msofficeguru.org

14. http://www.nfpl.net/pdf/procedure%20for%20import%20and%20export.pdf. (2012, 02

10). Retrieved 08 03, 2013, from ww.nfpl.net: ww.nfpl.net

15. http://www.nibusinessinfo.co.uk/content/exporting-and-other-ways-disposing-inward-

processing-goods. (2012, 02 03). Retrieved 08 06, 2013, from www.nibusinessinfo.co.uk:

www.nibusinessinfo.co.uk

16. http://www.preservearticles.com/2012012721683/what-are-the-functions-of-the-

foreign-exchange-market.html. (2012, 01 10). Retrieved 08 05, 2013, from

www.preservearticles.com: www.preservearticles.com

17. http://www.ups.com/content/us/en/shipping/international/documents/intl_forms/

comm_invoice.html. (2013, 02 05). Retrieved 08 19, 2013, from www.ups.com:

www.ups.com

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APPENDIX

WORK ACTIVITIES

Internship duration 23.07.2013 - 23.10.2013

My work activities at Janata Bank are listed below:

23.07.2013 Was acquainted with all the employees of the branch.

24.07.2013 Worked in the reception table.


28.07.2013 Worked in the scroll table

29.07.2013 Worked in the Foreign Exchange table

30.07.2013 Worked in the scroll table

31.07.2013 Worked in the table of Pay Order writing

01.08.2013 Worked with the computer in charge.

05.08.2013 Worked in the Foreign Exchange table.


07.08.2013 Worked in the scroll table.


18.08.2013 Worked in the reception table

19.08.2013 Worked in the clearing table.

20.08.2013 Worked with computer in charge.



24.08.2013 Worked with computer in charge.


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.

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My duties in these tables

Table Name Task Of The Table

Reception

Helping the customers to find the appropriate table.

Account opening

Giving different forms

Scroll

To write down serial no., account no., amount in the scroll.

All the deposit amounts are enlisted here before they are deposited. Pay

Order Table:

To help customers to write pay order forms

To write pay order serial number.

Computer in chargeWorking with him to understand the software functionality.

To get the primary knowledge to write the report.

ClearingTo receive cross cheques,

To classify the cross cheques whether they are of the Janata Bank or

other banks.

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FIGURE 1.1 Bill Of Lading

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FIGURE1.2 Proforma Invoice

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FIGURE1.3 Commercial Invoice

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FIGURE 1.4 Packaging List

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FIGURE 1.5 Letter Of Credit Authorization

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FIGURE1.6 Country Of Origin Certificate

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FIGURE 1.7 Foreign Currency Account Opening form

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FIGURE 1.8

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FIGURE 1.9 Foreign Currency Account Under Wage Earners Scheme

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FIGURE1.10 Specimen Signature Card

FIGURE1.11 Login System

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