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146648760 Internship Report On Foreign Exchange Essay

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A Research Report
Foreign Exchange Operations of Jamuna Bank




Prepared To:

A. K. M. Moniruzzaman Ph. D
Department of Management Studies

Prepared By:

Name : Md. Zakir Hossain
ID : 05122353
Sec : A
Session : 2005-2006

Department of Management Studies

Date of Submission: 20th November, 2011

Letter of Transmittal

A. K. M. Moniruzzaman Ph. D
Department of Management studies
Jagannath University Dhaka.

Subject: Submission of Internship Report.

Dear Sir,

It is my privilege to let you know that as partial fulfillment of the requirements for the degree of Bachelor of Business Administration (BBA), I have completed my term paper report in the Jamuna Bank Limited. I have to furnish a report based on my practical experience. The report focuses mainly on the foreign exchange operations of Jamuna Bank Limited.

It was stimulating opportunity and a valuable experience for me to the real business world. I am grateful for providing me such an opportunity to gather practical experience of working in a private commercial bank, like Jamuna Bank Limited.

Hope that you would be very pleased to accept my report and oblige me.

Sincerely Yours

Md. Zakir Hossain
ID – 05122353
Department of Management Studies
Jagannath University Dhaka.


At first I want to express my gratitude to almighty Allah for giving me the strength, ability and opportunity to complete the report within the schedule time successfully.

My sincere gratitude goes to my respected internship supervisor, Professor A. K. M. Moniruzzaman Ph. D, report would not have been possible and such endeavor really deserves compliment. Thanks to him for giving me the opportunity to prepare this report which I think will enhance my skill and help the practical application of my knowledge in future.

I received cordial cooperation from the officers and members of staffs of jamuna Bank Ltd, Dilkusha / Principal branch, Dhaka and the teachers and staff of Jagannath University of Dhaka. I want to express my cordial gratitude to them for their cooperation without which it would not have been possible to complete the report.

I am reallythankful to Mr. Kamal Uddin, SAVP and operation in charge, Jamuna Bank Dilkusha Branch for giving me the excellent opportunity to do my practical coordination in this branch. I would also like to thank to Mr. Shahed Morshed Chowdhury, JAVP, Mr. A S.M Masouk, SEO, Mr. ABM Mazharul Hoque Sikder, EO of Import Division, and Ms. Sapna Habib Srabanti, Officer, Customer Care for giving me the excellent direction with their proper compassionate with me.

Executive Summary
A few years back also, banks are nothing but a medium whose only task is to collect money from people who have excess of it and give it to those people who need it.But very recently banks have diversified their operations into various sectors. Even, they have notification able contribution in maintaining the global relation among various countries of the world. The JBL is one of the newest banks of Bangladesh; in fact, it has been doing business just over 10 years in the country. However, in this short period of time, it has already made a significant impact on the economic, financial, and social system of Bangladesh. Jamuna Bank Ltd has a long and relishing heritage. Jamuna Bank Limited (JBL) started its journey in the financial sector of the country as an investment company back in May 20, 1999. The company operated up to 1999 with 9 branches and thereafter with the permission of the Central Bank converted in a full-fledged schedule private commercial bank in June 2, 1993 with paid up capital of Tk. 39.00 crore to serve the nation from a broader platform. The Bank and its first Branch at the busiest commercial hub of the country at 61, Dilkusha commercial Area, Dhaka was opened. My Report titled “Foreign Exchange Practices in Private Banks: A Case Study of Jamuna Bank Ltd.” is conducted to describe the section as well as the organization where I was placed as an Intern. The first chapter gives a broad over view about the origin of the report, objective of the report, methodology of preparing the report, data collection procedure and its source, scope and limitations faced while preparing the report. After the first part it has been focused in the second part of the report. The overview consists of the definition and objective of the bank, historical background of the banking institutions and banking operations in Bangladesh. The report part started from the third chapter. In that chapter, describe the theoretical framework of foreign exchange and other foreign exchange activities.The fourth chapter is highlighted of Jamuna bank with SWOT analysis.The fifth chapter consists General foreign exchange policy of the bank.The sixth chapter consists of performance evaluation of the bank in 2009.The seventh & last chapter highlighted with recommendations, problems and Conclusion.

Table of Contents

Statement of the research problem
Objectives of the Study
Methodology of the Study
Definition of terms used in the study
Limitation of the study

Scenario of Foreign Exchange Operations in Bangladesh.

Illustrated the international trade in Bangladesh with the help of a diagram 15
Scenario of Foreign Exchange Operations in Bangladesh.


An Overview of Jamuna Bank LTD.

Corporate Information
Organization Structure
Branches information
Number of employees
Vision statement of the Bank
Mission statement of the Bank
Product scheme
Principal Activities
SWOT analysis of JBL
Identification of Strengths, Weaknesses, Opportunities and
Threats of the JBL
Draw conclusion
Prepare action plan

Foreign Exchange: Theoretical Background &
Practical Experiences

Objectives of Jamuna Bank
Strategies of JBL
Foreign exchange: its meaning and definition
Types of foreign exchange
Tools for foreign exchange
General Foreign exchange policy of JBL

Data Analysis
& Findings

Performance of the Bank
Key Financial Indicators
Identified problems for the JBL


Conclusions and Recommendations

Recommendation for the JBL



List of Tables and Figures

List of Figure
Framework of the overall structure of the total work
Organization Structure of JBL
Branch Network
SWOT Analysis
The international trade can be illustrated by the following diagram 44
Types of Foreign Exchange
Profit scenario of JBL
Capital Tire-I
Capital Tire-II
Capital Tire-I & II
Deposit & Deposit Mix
Import Trade
Export Trade

List of Tables
Ways of classifying products and services
Import procedure Flow Chart
Export procedure Flow Chart
Highlights of Jamuna Bank
Capital adequacy ratio
Deposit & Deposit Mix
Import Position
Export Position
Foreign Remittance position

1.1 Statement of the research problem

To write a report it is necessary to select a topic. A well-defined topic reflects what is going on to be discussed throughout the report. The topic that has been assigned by organization supervisor is “The foreign exchange operations– the ultimate way to success”. The report has discussed how the bank can improve the foreign exchange operations.

1.2 Objectives of the study

Primary objective:
The primary objective of this report is to familiar with the working environment of present institutions. And also fulfill the requirement of BBA theoretical knowledge gained from the coursework of the BBA program in a specific field.

Secondary Objective:

To have exposure to the credit operation and other function of Jamuna Bank Limited. To have a clear understanding of the business operation of Jamuna Bank Limited. To discuss the services offered by Jamuna Bank Limitcd.

To assess and evaluate the growth trends of Jamuna Bank Limited. To evaluate the profitability of Jamuna Bank Limited.
To identify the major strength and weakness of Jamuna Bank Limited in respect to other banks. To recommend ways and means to solve problems regarding banking of Jamuna Bank Limited. To get acquainted with the loan structure, size, profile of sector wise outstanding position of loans and system of loan classification of Jamuna Bank Limited.

1.3 Methodology of the Study

To make the Report more meaningful and presentable, two sources of data and information’s have been used widely.

The “Primary Sources” are as follows:
Face-to-face conversation with the respective officers and staffs of the Branch Informal conversation with the clients
Practical work exposures from the different desks of the four departments of the Branch covered Relevant file study as provided by the officers concerned
The “Secondary Sources” are as follows:
Annual Report (2009) of Jamuna Bank Ltd.
Periodicals published by Bangladesh Bank.
Various books, articles, complications etc. regarding general banking function, foreign exchange operation and credit policies. FRAMEWORK OF THE OVERALL STRUCTURE OF THE TOTAL WORK

1.4 Terms used in Foreign Exchange Operations

Foreign Exchange:
Foreign exchange refers to the process or mechanism by which the currency of one country is converted into the currency of another country. ...

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