One Bank

THE REPORT ON GENERAL BANKING, CREDIT, FOREIGN TRADE
IN ONE BANK LIMITED

(A Report Submitted to te F!"u#t$ O% Bu&i'e&& Admi'i&tr!tio'
,%or te p!rti!# Fu#%i##me't o% Re(uireme't& %or te EMBA o%
Bu&i'e&& Admi'i&tr!tio')

F!"u#t$ o% Bu&i'e&& Admi'i&tr!tio'
*'i+er&it$ o% S"ie'"e !'d Te"'o#o,$ Citt!,o',
Prepared by : Md. Elias, Roll No: 397, EMBA , USTC.
1
Letter of Transmittal
10.11.09
Dr. Mohammed Solaiman
Dean
Faculty of Business Administration
USTC.
Sir.
Bein nominated !y Faculty of Business Administration "USTC under
and co#ordination and su$er%ision of you "& ha%e successfully
com$leted a re$ort &n 'ne Ban( Limited !ein an e)istin em$loyee of
this Ban( .& *or(ed on the to$ic+The role of customer ser%ice
manaement in com$etiti%e Ban(in industry 'f ',- Ban( Limited..
'n the !asis of my study and $ractical e)$erience & am su!mittin this
re$ort on the actual facts and findins of my *or(.
& li(e to than( you for your (ind su$er%ision.
& ho$e *ith my !est $erse%erance that in my re$ort & *ill !e a!le to
su!mit you a fact full /udment a!out the to$ic and lay the %erdict on
you.
Sincerely yours"
MD. -lias
-MBA#Finance
&D ,o0 192" Batch0 13
th

USTC.
2
PREFACE
The most sinificant to$ics of our -MBA course. ,o* the *orld is
com$etiti%e. So *e ha%e to earn the 4no*lede a!out the critical
en%ironment of !usiness. This ty$e of $roram hel$s the student to
ac5uire $ractical (no*lede a!out the contem$orary !usiness
orani6ation. &t *ill also hel$ the student to !e an effecti%e e)ecuti%e in
future. Different orani6ations ta(e different (ind of $olices to
o$erate their !usiness. A re$uted $ri%ate Ban( li(e ',- Ban( Limited
Ta(es different (ind of modern !an(in system to satisfy their
customer.
As a student of -MBA 7Finance8 student 'f USTC. & ha%e !een Assined
to $re$are +The 9e$ort 'n :eneral Ban(in" Credit" Forein Trade &n
',- BA,4 L&M&T-D. & ha%e tried my !est *ith all my a$titude to
com$lete this re$ort *ith a$tness.
3
ACKNO-LEDGEMENT
&t has !een a reat o$$ortunity for me to ha%e the assistance and
uidance of the *hole Ban(in system of ',- Ban( Limited as *ell
their unconditional team su$$orts throuhout my $ro/ect in 'BL.& had
the access to most of the secondary information *as $ro%ided *hich
e%entual hel$ed me a lot in $re$arin my re$ort.
This is an e)clusi%e instance of $rofessional life & am $assin and
en/oyed in time of $re$arin this re$ort.
&t *ill !e a shame if not than( to those reat $eo$les *ho hel$ me to
learn the difficult tas( of !an(in and co#o$eration me all the times to
com$lete the /ourney.
& *ould li(e to i%e my ratitude to my honora!le su$er%isor ;ro. D9.
Mohammad Solaiman" Dean" Faculty of Business Administration. For
i%in his %alua!le time in this $ro/ect and i%e me uidelines to
$re$are this $ro/ect.
& $ay my res$ect to Mr.Mosta5ue <ossain"Senior =ice ;resident and
Manaer of the 'BL">u!ilee 9oad Branch"Chittaon for hel$in me to
$re$are my re$ort.
& am dee$ly than(ful and :rateful es$ecially to Mr. Mohammad ,asir
Uddin" 'fficer"*ho ha%e shared his %alua!le time *ith me and hel$ed
me to collect %arious information a!out 'BL.Also than(ful to
Mr.Md.A!dullah Al <arun"'fficer and <ead 'f Trade Finance#-)$ort
*ho hel$ed me to $re$are this re$ort smoothly and Also :rateful and
Than(ful to Mr.Samir Cha(ra!orty Senior ;rinci$al 'fficer and also
than(ful to Mr.Shaha!uddin Siddi5ue" Mr.Matiur 9ahman and Ms.
,asima A(thar Assitant 'fficer of 'BL" *ho ha%e shared their %alua!le
time *ith me and hel$ed me to $re$are the $ro/ect Correctly.
Lastly. & am %ery much rateful to my all teachers." for this in%alua!le
contri!ution and co#o$eration in ad%ancin the re$ort and there!y
com$letin -MBA $roram ultimately.
E.EC*TI/E S*MMAR0
The re$ort attem$ts to sho* the summari6ed $icture of 'BL &t has
mainly hihlihted the !usiness strateies and %arious Ser%ices ?
functions of !an(in such as@ :eneral Ban(in "Credit"Forein
-)chane" Ad%ance Ban(in" credit De$artment.Thouh all de$artment
and sections are co%ered in the re$ort "it is not $ossi!le to o to de$th
of each acti%ities of !ranch !ecause & am *or(in only T*o
de$artments . So o!/ecti%es of this re$ort ha%e not !een fulfilled *ith
com$lete satisfaction . <o*e%er "hihest endea%or has !een i%en to
achie%e the o!/ecti%es.
&t is found that the ',- Ban( !ranches $ro%ides all the con%entional
!an(in ser%ices as *ell as some s$eciali6ed financin acti%ities to the
economy. Forein e)chane ser%ices de$artment is one of the larest
de$artment of the Ban( in terms of man$o*er and $rofit earned. This
de$artment $ro%ides all the ser%ices related to international and
dis!urse credit if the $ro$osal is sound. As s$eciali6ed financin" it
$ro%ides term finance to medium and small Ascale industries. The
Ban( also $ro%ides house !uildin loan. Thus !y $ro%idin this %arious
ser%ices ',- Ban( Limited " >u!ilee 9oad Branch is $layin an
im$ortant role in the !an(in system and in the $ayment system of
Banladesh.
!
TABL- 'F C',T-,TS
SL ,o.
Cha$ter01 I'trodu"tio' to te Report
1.1 &ntroduction
1.B '!/ecti%es 'f the Study
1.1 Methodoloy 'f the Study
1.C Limitation 'f the Study
Cha$ter 0 B Fu'"tio' O% ONE B!'1
B.1 Bac(round
B.B Missions of the Ban(
B.1 Ca$ital
B.C Dearly ;erformance at a :lance
B.E ;roducts ? Ser%ices
B.3 Social Commitments
B.2 'rani6ational Structure
Cha$ter01 Credit Po#i"$
1.1 1.1 ;9&,C&;L-S A,D ;'L&C&-S 'F L'A,S
?AD=A,C-S D-;A9TM-,T
1.B Credit ;olicies 'ffered !y the ',-
1.1 Lendin Criteria of ',- Ban(
1.C Different Ty$es of Credit Facilities in ',- BA,4
L&M&T-D.
1.E Su$er%ision and 9eco%ery of Loans ? Ad%ances
Cha$ter0C Ge'er!# B!'1i',
C.1 &ntroduce of :eneral Ban(in
C.B Account '$enin Section
C.1 9emittance Section
C.C Clearin and Bills Section
C.E Cash Section
Cha$ter0E Forei,' E2"!',e
E.1 &ntroduce of Forein -)chane
E.B Forein -)chane Mechanism
E.1 &m$ort De$artment
E.C -)$ort De$artment
Cha$ter03 CRM
Cha$ter02 Imp#i"!tio'& Str!te,$
2.1 ;ro!lems
2.B 9ecommendation
2.1 Conclusion
Bi!liora$hy
"
INTROD*CTION TO THE REPORT
7
343 INTROD*CTION
The $ros$erity of a country de$ends u$on its economic acti%ities. Li(e
any other s$here of modern socio#economic acti%ities" !an(in is a
$o*erful medium of !rinin a!out socio#economic chanes of a
de%elo$in country. Ariculture" commerce and industry $ro%ide the
!ul( of a countryFs *ealth. Githout ade5uate !an(in facility these
three cannot flourish. For a ra$id economic ro*th a fully#de%elo$ed
!an(in system can $ro%ide the necessary !oost. The *hole economy
of a country is lin(ed u$ *ith its !an(in system.
The functions of the !an( are no* *ide and di%erse. 'f all the functions
of the modern !an(" lendin is !y far the most im$ortant. They $ro%ide
!oth short#term and lon#term credits. The customers come from all
*al(s of life" from a small !usiness to a multi#national cor$oration
ha%in its !usiness acti%ities all round the *orld. The !an(s ha%e to
satisfy the re5uirements of different customers !elonin to different
social rou$s. The !an(in !usiness has" therefore" !ecome com$le)
and re5uires s$eciali6ed s(ills. They function as a catalytic aent for
!rinin a!out economic" industrial and aricultural ro*th and
$ros$erity of the country. The !an(in can" therefore" !e concei%ed as
a +a sector of economy on the one hand as a lu!ricant for the *hole
economy on the others.. As a result different ty$es of !an(s ha%e come
into e)istin to suit s$ecific re5uirements.
#
345 OB6ECTI/ES OF THE ST*D0
-%ery study starts *ith a fe* o!/ecti%es. '!/ecti%es assist the
researcher to ad%ance tactfully. The follo*in o!/ecti%es ha%in *ith
study as $resented !elo*0
To (no* the Ban(in systems $ro$erly and ho* they are
functionin.
<el$ to achie%e the $ractical (no*lede a!out the Ban(in sector.
<el$ to (no* a!out the modern facilities of Ban(in sector.
<el$ to (no* the im$act of Ban(in on our national economy.
;ro%ide information a!out the !usiness orani6ation.
<el$ to introduce the internee *ith different orani6ation.
To (no* *hat $romotional acti%ities they ta(e to moti%ate their
em$loyees.
To (no* *hether trainin ma(es strain on their $erformance.
Focusin on the $resent ser%ice *hich offered !y the Ban( to*ard
their clients to satisfy.
9
347 METHODOLOG0 OF THE ST*D00
To ;re$are this 9e$ort "needed three months. At first " ha%e done all
my daily *or(s and then & ha%e i%en time to $re$are $ro/ect re$ort. &
ha%e com$osed different ty$es of data from different sources durin
this e$isode. & ha%e ot all sort of su$$ort from e%ery le%el of
em$loyees. They e)$end their $recious time to $ro%ide me (no*lede
a!out $ractical side of Ban(in i.e. ho* the Ban( is functionin.
Collected different ty$es of $rimary data !y direct con%ersation *ith
the $rimary sources. & ha%e made a tete#a#tete *ith the <ead of
Branch" Manaer '$eration and of other di%isional in#Chares for all
time. All of them $ro%ide all sorts of ;rimary data that & needed.
For $re$arin the re$ort used some secondary data.. These *ere
collected from ',- Ban( >ournals" Maa6ines" Ban(Fs annual re$orts"
$eriodicals and other $u!lications of this Ban(.
Also ta(en hel$ from ne*s$a$er. For collectin $rimary data" $re$ared
5uestionnaire" *hich *as deli%ered to the client to find out different
ty$es of o$$ortunities and threats.
1$
348 LIMITATION OF THE ST*D0
9esearch is a %ery im$ortant $art of -MBA course. &t i%es the student
to achie%e the $ractical (no*lede of !usiness. So it is easy to say that
im$ortance of internshi$ is (no*s no !ounds. But *hile the internshi$
$roram is oin on *e face some $ro!lems. The limitations of such
acti%ities are i%en !elo*0#
The time *hich is $ro%idin for us from uni%ersity is not sufficient
for atherin data and achie%in idea a!out the institution.
&n many case uni%ersity may not a!le to $ro%ide all sort of co#
o$eration !ecause of different limitation of uni%ersity.
&nternshi$ re$ort is one (ind of research *or(. 9esearch *or(
re5uires hue time. financial assistance and su$$orts from the
concerned authority. But in case of some institution" such (ind of
assistance is not a%aila!le.
&n many case the rele%ant authorities are not a*are a!out
internshi$.
&n case of collectin data from $rimary res$ondent" they i%e the
a%erae ans*er of all 5uestions.

11

F*NCTION OF ONE BANK
12
543 B!"1,rou'd
The ',- Limited is incor$orated in Banladesh as !an(in com$any on
>une 10" 1999 under Com$anies Act.199C. Banladesh Ban(" the
central !an( of Banladesh" issued !an(in license on >une 12" 1999
under Ban(in Com$anies Act.1991. The <ead 'ffice of The ;remier
Ban( Limited is located at Banani" one of the fast ro*in commercial
and !usiness areas of Dha(a city.
Ban( started o$eration on B3#10#1999
545 Mi&&io'& o% te B!'1
The Ban( has a clear %ision to*ards its ultimate destiny#to !e the !est
amonst to$ financial institutions. The missionFs of the Ban( is"
To !e the most carin and customer friendly $ro%ider of financial
ser%ices" creatin o$$ortunities for more $eo$le in more $laces.
To ensure sta!ility and sound ro*th *hilst enhancin the %alue
of shareholders in%estments.
To aressi%ely ado$t technoloy at all le%els of o$erations to
im$ro%e efficiency and reduce cost $er transaction.
To ensure a hih le%el of trans$arency and ethical standards in all
!usiness transacted !y the Ban(.
To $ro%ide conenial atmos$here *hich *ill attract com$etent
*or( force *ho *ill !e $roud and eaer to *or( for the Ban(.
To !e socially res$onsi!le and stri%e to u$lift the 5uality of life !y
ma(in effecti%e contri!ution to national de%elo$ment.
Sloan of the ;remier Ban(
The sloan of the 'ne Ban( is +G- MA4- T<&,:S <A;;-,. that means
to dra* attraction of the customer and this !an( a!le to do that.
13
547 C!pit!#
The authori6ed ca$ital of the Ban( is T( 1"B00 million and ;aid u$
Ca$ital of is T( 1019 million. million in B002. Accumulated reser%e
reached to T( EB2 million in B002 aainst T(. 9H.BC million at the end
of $er%ious year. The !an(Fs Ca$ital Ade5uacy ration *as 11.23 $ercent
on ris( *eihted assets as on 11 Decem!er" B001 *hich is a!o%e the
sti$ulated re5uirement of 9 $ercent of Banladesh Ban(.
Ty$es of De$osits
Sa%in Account S$ecial De$osit Scheme
Current Account Monthly De$osit Scheme
Cor$orate Account Monthly Sa%in Scheme
Short term De$osit -ducational Sa%in Scheme
Fi)ed De$osit Account
1
548 0e!r#$ Per%orm!'"e !t ! G#!'"e9
Fi%e Dears Financial <ihlihts0
SL NO
PARTICULERS
2007 2006 2005 2004 2003
1 A%&'ori(ed Capi&al 1,200 1,200 1,200 1,200 1,200
2 Paid %p )api&al 1,039 888 807 690 600
3 S&a&%&ory Reser*e 527 381 262 168 98
4 Capi&al 2,107 1,650 1,307 1,077 847
5 To&al +eposi&s 24,484 20,253 18,030 10,915 8,847
6 To&al ,oa- . Ad*a-)e 19,709 15,681 13,851 9,613 6,051
7 /-*es&0e-& 3,587 3,321 2,165 1,229 688
8 /0por& B%si-ess 1a-dled 25,133 21,601 17,435 15,255 9,814
9 E2por& B%si-ess 1a-dled 19,413 16,360 11,916 6,974 5,213
10 3%ara-&ee B%si-ess 1a-dled 949 947 1,367 948 633
11 To&al /-)o0e 3,587 2,886 2,007 1,433 1,061
12 To&al E2pe-di&%re 2,658 2,211 1,520 932 800
13 Ne& /-&res& /-)o0e 638 398 315 385 166
14 4pera&i-5 Pro6i& 929 674 626 201 261
15 4pera&i-5 E2pe-ses 598 452 310 234 147
16 Pro6i& A6&er Ta2 a-d Pro*isio-s 405 347 302 165 91
17 To&al Asses&s 27,475 23,143 20,105 13,419 9,975
18 N%0ber o6 Correspo-ders 280 270 268 258 223
19 N%0ber o6 E0ployees 781 580 386 300 209
20 N%0ber 46 Bra-)'es 30 23 18 15 10
21 ,oa- +eposi&s Ra&io 80.50% 77.43% 76.82% 88.07% 68.39%
22 Capi&al Ade5%a)y Ra&io 10.25% 10 9 12 14
23 Tier71 8Capi&al9 8.91% 8.69% 8.44% 10.51% 14.34%
24 Re&%r- o- Asse&s 3.67% 3.12% 2.87% 3.35% 2.85%
25 Ear-i-5 Per S'are 38.97 39.06 37.46 24.01 23.44
26 +i*ide-d
Cas' 10% 15%
Bo-%s S'are 25% 17% 10% 17% 15%
27
Ne& Asse& :a%le8Boo;
:a%le<S'are'oldersE=%i&y Per S'are 176.39 171.03 159.34 142.6 131.56
1!
54: Produ"t& ; Ser+i"e&
34 Ser%ice 'f The ;rofessional ;ersonal
The 'fficers of ',- Ban( Limited ha%e" to their credit" decades of
!an(in e)$erience *ith ,ationalI international !an(s at home
and a!road. They are suita!ly e5ui$$ed to meet customer
e)$ectations and are a%aila!le at all times to $ro%ide a sinle#
*indo* customi6ed and confidential ser%ice.
54 A State#'f#The#Art Technoloy Ban(in
The Ban( *ill $ro%ide a state#of#the#art technoloy !an(in such
as Any Branch Ban(in" ATM Ser%ices" <ome#Ban(in" Tele#
Ban(in" Mo!ile#Ban(in etc.
9etail Ban(in
Ban( limited offers indi%iduals the !est ser%ices" includin
the follo*in" to $ro%ide com$lete customer satisfaction0
De$osit ser%ices.
Current Account in !oth Ta(a and ma/or forein currencies.
Con%erti!le Ta(a Accounts.
Local and forein currency remittances.
=arious ty$es of financin to cater to the !an(in
re5uirements of multinational clients.
74 &nstitutional Ban(in
',- Ban( Limited *ill offer %arious ser%ices to forein missions"
,:'s and %oluntary orani6ations" consultants" airlines" shi$$in
lines" contractors" schools" collees and uni%ersities. The ser%ices
include mainly the follo*in0
De$osit ser%ices.
Current Account in !oth Ta(a and ma/or forein currencies.
Con%erti!le Ta(a Accounts.
Local and forein currency remittances.
=arious ty$es of financin to cater to the !an(in
re5uirements of multinational clients.
84 Cor$orate Ban(in
',- Ban( Limited caters to the needs of the cor$orate
clients and $ro%ides a com$rehensi%e rane of financial ser%ices"
*hich include0
Cor$orate De$osit Accounts.
;ro/ect ? &nfrastructure Finance" &n%estment Business
Counsellin" Gor(in Ca$ital and other finances.
Bonds and :uarantees.
1"
:4 Commercial Ban(in
Bein a commercial !an(" ',- Ban( Limited $ro%ides
com$rehensi%e !an(in ser%ices to all. ty$es of commercial
concerns. Some of the ser%ices are0
Trade Finance.
Commodity Finance.
&ssuance of &m$ort LICs.
Ad%isin and confirmin -)$ort LICs. # Bonds and :uarantees.
&n%estment ad%ice.
',- Ban( Limited *ill $ro%ide s$eciali6ed ser%ices to Ministries"
Autonomous and Semi#autonomous !odies.
3. 'n#Line Ban(in
',- Ban( Limited offers JAny BranchJ !an(in ser%ice that
facilitates its customers to de$osit" *ithdra* and transfer funds
throuh the counters of any of its !ranches *ithin the country.
Merchant Ban(in Ad%isory Ser%ices
The Ban( *ill $ro%ide Merchant Ban( ad%isory ser%ices" offer
com$lete $ac(aes in areas of $romotion of ne* com$anies"
e%aluation of $ro/ects" merers" ta(e#o%er and ac5uisitions" liaise
*ith the :o%ernment *ith reard to rules and reulations"
manaement of ne* issues includin under*ritin su$$ort etc.
Ca$ital Mar(et '$eration
The Ban( *ill also introduce ca$ital mar(et o$eration *hich *ill
include ;ortfolio Manaement" &n%estors Account" Under*ritin"
Mutual Fund Manaement" Trust Fund Manaement etc.
&slamic Ban(in Ser%ices
',- Ban( Limited *ill o$en &slamic Ban(in Branches to ser%e
the customers *ho are interested in !an(in !ased on &slamic
Sarah.
Farm And 'ff#Farm Credits 79ural8
'ut of Ban(Js social commitment to*ards the $o$ulation at the
rass#root le%el" it *ill $artici$ate in farm and off#farm credit
$rorammers in rural Banladesh to !rin in economic !uoyancy
in the $eri$hery.
17
3. Seed Money For Self#-m$loyment
The educated youn $eo$le *ith an a$titude for orani6in
enter$rises *ill !e $ro%ided *ith the seed money $rimarily for
self#em$loyment and su!se5uently *ill !e i%en ad%isory ser%ices
as *ell as re5uired fund for e)$ansion into a fast ro*in
$roducti%e and em$loyment eneratin %enture.
Credit To Gomen -ntre$reneurs
The Ban( !elie%es in J-5ual '$$ortunity ;olicyJ and as such has a
$lan to introduce credit $rorammers for *illin and talented
*omen entre$reneurs
Consumer Credit Facility
The Ban( offers a Consumer Credit Scheme" facilitatin financial
ease in ac5uirin %arious day to day consumer $roducts such as
usa!le a$$liances and other items.
Counter For ;ayment 'f Bills
Dedicated counters are a%aila!le at ',- Ban( LimitedJs !ranches
to recei%e the $ayment of %arious utility 7D-SA" Mo!ile ;hones8
!ills.
'ther Ser%ices
9emit funds from one $lace to another throuh DD" TT and MT
etc.
Conduct all (inds of forein e)chane !usiness includin issance
of LIC" Tra%ellerJs Che5ue etc
Collect Che5ues" Bills" Di%idends" &nterest on Securities and issue
;ay 'rders" etc.
Act as referee for customers. Loc(er facility for safe (ee$in of
%alua!les and documents.
54< So"i!# Commitme't&
1#
34 Banladesh Flood B00C
Ban( tried to mitiate the sufferins of the flood stric(en $eo$le
in the %illaes of MeradiaI Shatar(ul 7Dha(a8" !y distri!utin
Family Bas amonst 1"100 families. -ach !a contained the
follo*in items0 9ice0 1 4" ;ulses0 1 4" Salt0 14" Molasses
7:ur80 1 4" T*o $ieces of Sari ? B $ieces of Luni 7one lare and
one small8. The reci$ients %ery much a$$reciated our endea%or.
54 111 ne* houses constructed for the flood affected families at
Sylhet and Dohar
After the Flood*aters had receded" the Ban( constructed or
re$aired 111 houses" at an a%erae cost of Ta(a fifteen thousand
each" in the follo*in t*o areas0
a8 Mahmud$ur Union council#02" ;.0 <orichandi" ;.S0 Dohar"
Dha(a# E1 houses
!8 Mullaroan Union council" Dha(in Surma" Sylhet Sadar" Sylhet#
EH houses.
The Ban( s$ent around Ta(a three million in flood related relief
acti%ities.
54= Or,!'i>!tio'!# Stru"ture
19
Manain Director
>
De$uty Manain Director
>
Senior -)ecuti%e =ice ;resident
>
-)ecuti%e =ice ;resident
Senior =ice ;resident
=ice ;resident
>
Senior Asstt. =ice ;resident
>
First Asstt. =ice ;resident
Asstt. =ice ;resident
Senior ;rinci$al 'fficer

>
;rinci$al 'fficer
>
Senior 'fficer
>
'fficer
>
>unior 'fficer
>
Assistant 'fficer
>
Trainee Assistant 'fficer
2$
Credit Po#i"$
21
743 PRINCIPLES AND POLICIES OF LOANS ;AD/ANCES
DEPARTMENT
&ntroduction
The t*o main functions of a !an( are !orro*in money from $u!lic !y
acce$tin de$osit and lendin to the $u!lic for the de%elo$ment of
trade" commerce" industry and ariculture. Ban( offers some interest to
de$ositors for de$osit and ta(es hiher interest for lendin. The marin
is the !an(s $rofit. So" lendin is !y far the most im$ortant function of
the modern !an(s. The strenth of a !an( is" thus" $rimarily /uded !y
the soundness of its ad%ances.
Ad%ances not only $lay an im$ortant role to the ross earnins of !an("
!ut also $romote the economic de%elo$ment of the country. All ty$es of
!usiness acti%ities includin trade" industrial and aricultural ha%e to
de$end on !an( finance. Ban(s !y accumulatin sa%ins of the nation
into $roducti%e uses" hel$ !oth the de$ositors and the !orro*ers. ',-
dis!urses ad%ances in three !road areas. These are industrial credit"
commercial credit and micro credit scheme.
745 Credit Po#i"ie& O%%ered b$ te ONE9
22
The main o!/ecti%e of ',- BA,4 L&M&T-D is to $ro%ide term loan
7includin *or(in ca$ital loan8 and other financial assistances
7includin all (inds of !an(in facilities8 to accelerate the $ace of
de%elo$ment of small industries of Banladesh. To fulfill this !road
o!/ecti%e i.e. to financin small industries" the Ban( underta(es the
follo*in tas(s0
-)tend financial assistance to small industries in $ri%ate sector.
-)tend financial assistance to micro#enter$rises and colla!orate
*ith other institutions enaed in financin and de%elo$in such
enter$rises.
Underta(e $ro/ect $romotion to identify $rofita!le area of
in%estment.
Coo$erate and colla!orate *ith institutions entrusted *ith the
res$onsi!ilities of $romotin and aidin SS& sector.
At the time of e)tendin credit" ',- BA,4 L&M&T-D follo*s certain
$rinci$les. Main $rinci$les of loans and ad%ances are as follo*s0
&. E0K of total loans and ad%ances *ill !e $ro%ided for small
industries.
&&. All lendin *ill !e ade5uately secured *ith acce$ta!le security
and marin re5uirements as laid do*n !y the <ead 'ffice Credit
Committee.
&&&. The Ban( *ill not incur any unco%ered forein e)chane ris(
7currency e)$osure8 in the lendin of funds.
&=. ,o term loans *ill !e a$$ro%ed for the commercial sector.
-)ce$tions *ill !e rare and *ill re5uire a$$ro%al of the <ead
'ffice Credit Committee.
=. -nd#use of term loan and *or(in ca$ital facilities *ill !e closely
monitored to ensure that the funds are used for the $ur$ose for
*hich they are ad%anced.
23
747 Le'di', Criteri! o% ONE B!'1
The entre$reneurs of small industry concernI$ro/ect re5uirin financial
assistance from ',- BA,4 L&M&T-D need to fulfill the follo*in criteria0
Standard loan a$$lication form is issued only after the $romoter
is found credit *orthy and acce$ta!le after e%aluation of
information su!mitted in First &nformation Sheet.
=ia!ility of each and e%ery $ro/ect recommended for financin is
su!/ected to thorouhly scrutiny and detailed a$$raisal. The
re$ort must co%er the ',- areas of $ro/ect %ia!ility.
A $ro/ect in cro*ded sector to !e a%oided. &nno%ati%e $ro/ects
and $ro/ects ha%in !oth domestic and e)$ort mar(et shall et
$reference.
Ban( shall ma(e out list of $reference sectors of in%estment
e%ery year.
;ro/ect location should ha%e necessary infrastructural facilities
and en%ironment as$ect shall !e carefully e)amined.
Technoloy re5uirement of the $ro/ect should !e ade5uate.
The $eriod of loan should !e determined !ased on cash flo*
$otential and $ay !ac( $eriod and shall not normally e)ceed E
years.
De!t ser%ice co%erae ratio should !e at least B.E times at the
o$timum le%el of $roduction.
2
9eturn on A%erae Ca$ital and -5uity at the o$timum le%el of
$roduction should not ordinarily !e less than 1EK to B0K
res$ecti%ely"
&99 should $refera!ly !e not less than B0K.
The $ro/ect should ha%e satisfactory !rea(#e%en $oint and marin
of safety.
748 Di%%ere't T$pe& o% Credit F!"i#itie& i' ONE BANK LIMITED4
The loans and ad%ances is al*ays $rofita!le for a !an(. As the !an(
mo!ili6es sa%ins from the eneral $eo$le in the form of de$osit" the
most im$ortant tas( of it is to dis!urse the de$osit as loan and ad%ance
to the $eo$le *ho are in need of fund for in%estment for the
de%elo$ment of commerce and industry.
The %arieties used !y ',- Ban( are !riefly descri!ed !elo* *ith the
common terms and condition and $erformance in each mode0
'%erdraft 7'D80 &t is a continuous ad%ance facility. By this
areement" the !an(er allo*s his customer to o%erdraft his
current account u$ to his credit limits sanctioned !y the !an(.
The interest is chared on the outstandin amount not on the
sanctioned amount. 'D is of t*o ty$es $racticed in ',- BA,4
L&M&T-D.
Secured '%erdraft 7S'D80 ',- sanctions S'D aainst
different securities li(e FD9" Sanchy$atra and Gor( 'rders.
2!
Tem$orary '%erdraft 7T'D80 &t is i%en to the %alued
customers only. Usually it for*ards *ithout any security or
sometimes e)ercise lien aainst the instrument" de$osited
in the !an(. &t is i%en !y the !ranch manaer discretionary
$o*er.
Cash Credit 7CC80 By this arranement" a !an(er allo*s his
customer to !orro* money u$ to a certain limit. CC is a fa%orite
mode of !orro*in !y traders" industrialists" etc. for meetin their
*or(in ca$ital re5uirements. &t is o$erated li(e o%erdraft account.
There are t*o forms of cash credit0
Cash Credit 7<y$othecation80 <y$othecation is a leal transaction
*here!y oods are made a%aila!le to the lendin !an(er as security
for a de!t *ithout transferrin either the $ro$erty in the oods or
$ossession. The !an(er has only e5uita!le chare on stoc(s" *hich
$ractically means nothin. &t is i%en aainst reistered mortae of
land and !uildin" hy$othecation of oods and $ersonal uarantee of
directors.
Cash Credit 7;lede80 ;lede is the !ailment of oods as security
for $ayment of a de!t or $erformance of a $romise. Transfer of
$ossession in the /udicial sense. &n case of $lede oods the !an(
ac5uires the $ossession of the oods or a riht to hold oods until
the re$ayment for credit *ith a s$ecial riht to sell after due
notice to the !orro*er in the e%ent of non#re$ayment.
Loan 7:eneral80 &t is i%en aainst $ersonal uarantee"
hy$othecation of oods and land and !uildin.
Term Loan0 ',- !an( is ad%ancin !oth short and medium term
credit to the industrial sector on the !asis of their ca$ital #structure"
constitution and li5uidity consideration. &t is i%en aainst land and
!uildin alon *ith machinery" $ersonal uarantee of directors and
hy$othecation of ra* materials.
2"
-)$ort Cash Credit0 Ad%ance allo*ed as cash credit for $rocessin
oods for e)$ort. The ad%ance is usually ad/usted from e)$ort
$roceeds. The term ;C 7;ac(in Credit8 is also used for such
ad%ance.
Loan Aainst &m$orted Merchandise 7L&M80 Loan allo*ed aainst
im$orted merchandise and storin the same in !an(Js custody. The
!an( throuh its a$$ro%ed clearin aent clears the merchandise.
The ad%ance is ad/usted !y deli%erin the oods aainst $ayment !y
the im$orter.
Local Bill ;urchase 7LB;80 Ad%ance allo*ed aainst !ills dra*n
under an inland LIC o$ened and acce$ted !y a local !an(. Such local
LIC is usually o$ened as !ac(#to#!ac( LIC aainst e)$ort LIC.
;ayment aainst Documents 7;AD80 The !an( that esta!lishes the
letter of credit is !ound to honor its commitment to $ay for im$ort
!ills *hen these are $resented for $ayment" if dra*n strictly in
terms of the letter of credit. &n fact" the amount stands as ad%ance
to the im$orter" *hich is ad/usted !y deli%ery of documents aainst
$ayment or !y allo*in $ost im$ort finance such as L&M or LT9.
Forein Bill ;urchase 7FB;80 ;ost e)$ort credit allo*ed aainst
e)$ort !ills. &f the !ills are dra*n as $er terms of the LIC" the !an(
$urchases the same and $ay e5ui%alent amount of the !ill to the
credit of the clientJs account. The ad%ance is ad/usted on reali6ation
of e)$ort $roceeds throuh forein aent.
74: Super+i&io' !'d Re"o+er$ o% Lo!'& ; Ad+!'"e&
27
Ho? to Super+i&e !'d Fo##o? up o% Lo!'& !'d Ad+!'"e&
The t*o terms# su$er%ision and follo* u$# are closely related.
Su$er%ision i%es more em$hasis on $ro$er end#use and follo* u$
i%es more em$hasis on timely reco%ery of ad%ances.
The ',- o!/ecti%e of su$er%ision and follo* u$ system is to ensure that
the ad%ances ranted !y the !an( are safe as the fund lent !y the
!an(s !elon to the de$ositors and !an( manaement has tremendous
res$onsi!ility in safeuardin the interests of millions of de$ositors.
&n conductin su$er%ision and follo* u$" !ranches ha%e to follo* the
under noted common methods0
i) 4ee$ *atch o%er the leders and accounts to ensure that
o$erations are reular and as $er $rocedure.
ii) -nsure that in$uts I materials are $urchased I $rocured as $er
$roceduresIterms of sanction and are used $ro$erly and
out$uts are sold $ro$erly.
iii) 4ee$ *atch o%er the inflo* and outflo* of fund.
i+) Collect $eriodical re$orts" returns and information a!out the
!orro*er
and e)amine the acti%ities of the $ro/ect I enter$rise
financed.
+) -nsure that security I collaterals ha%e !een o!tained as $er
terms of sanction and %aluation has !een assessed correctly
and security is maintained $ro$erly.
+i) -nsure that security has !een $ro$erly insured *here
re5uired as $er $olicy" $rocedure and $ractice.
%ii8 4ee$ reular contact *ith the !orro*er !oth formally and
informally and $ay reular %isits to the $ro/ect I enter$rise
financed.
2#
%iii8 -nsure that a$$ro$riate actions are ta(en in time to reulari6e
the irreularities and reco%er the loan as $er schedule.
Re"o+er$ o% Lo!'& !'d Ad+!'"e&
The most serious $ro!lem that affects the entire !an(in industry today
is the $ro!lem of reco%ery of !an( ad%ances. A systematic $lan of
re$ayment of Loan should !e arraned for each !orro*er de$endin
u$on the nature of loan. &t is %ery much needed for a sound lendin
system.
9eco%ery of loans should !e $rom$t and accordin to re$ayment
schedule to facilitate the !an(ers to recycle the scares resources for
!est use of more and more customers for social !enefit. Ban(er should
(ee$ a close *atch on all their ad%ances to ensure that timely action is
ta(en in each case for ad/ustment of the account or its rene*al and
the !an(er should decide to continue the facility.
At the time of re%ie* of the ad%ance and rene*al of sanction"
necessary amendments" modifications in terms and conditions are
made and the ad%ances are allo*ed to continue on the amended or
modified terms and conditions. &f the ad%ances do not run on the
sanctioned terms and conditions or if !an( find any undesira!le feature
in the !orro*erJs account !y *hich reco%ery of ad%ance !ecomes
difficult and nursin the account is not considered *or(a!le" !an(
recalls such ad%ances.
Ban( enerally recalls its ad%ances under the follo*in cases0
i8 &f death occurs either of the !orro*er or the uarantor.
29
ii8 &f the !orro*er is re$orted to ha%e committed an act of
insol%ency or has filed a$$lication for his insol%ency.
iii8 Dissolution of the $artnershi$.
i%8 Li5uidation of the !orro*in com$any.
%8 Failure to rene* the documents sufficiently !efore the e)$iry
of the limit.
%i8 Failure to adhere to the terms and conditions of the sanction in
s$ite of re$eated reminders to the !orro*er.
%ii8 &f the !orro*er fails to maintain the sti$ulated marin and
does not restore the shortfall in s$ite of re$eated reminders.
%iii8 Chane in the !an(Js $olicy of certain ty$es of ad%ances.
i)8 Detection of any undesira!le features in the account.
)8 There may also !e other reasons for *ithdra*in the facility"
i.e." the la* and order situation at a certain $lace is such that
it may !e ris(y to continue the ad%ance.
Pro"edure %or Re"o+er$
&f a !orro*er fails to ma(e re$ayment of dues the !an( has to consider
*hat ste$s need to !e ta(en to reco%er the de!t. Ban(er *ill e%entually
ha%e to ta(e the follo*in ste$s to reco%er the stuc(#u$ ad%ances.
i8 -)ertin Moral ;ressure0 The !an(er *ill %isit the !orro*erJs $lace
of !usiness and find out the cases of non#$ayment of the !an(Js
dues. The !an(er may also re5uest some influencer customers of
the area to e)ert $ressure on the !orro*er to clear !an(Js dues.
&f there is a uarantor" he is also called u$on to ad/ust the
account or ha%e it ad/usted !y the $rinci$al.
ii8 &n case the !orro*er does not ad/ust the account as desired" the
only course left o$en to the !an( *ould !e to send a notice !y
reistered $ost to the last (no*n address of the !orro*er and
3$
uarantor" if any" $refera!ly throuh a la*yer. &n that notice" it
has to state a!out the undesira!le character of the ad%ance and
recall it and as( the $arty to li5uidate it *ithin a sti$ulated $eriod"
say 10 days. The notice should also state that the !orro*er as
*ell as uarantor" if any" *ould !e lia!le for any !alance that
miht remain due" after the security has !een sold and !an( shall
resort to leal action to reco%er the dues. ;resently" !an(s are
em$o*ered to dis$ose off the security *ithout inter%ention of the
court under the LArtha 9in Adalat Act B001F.
iii8 Filin a Suit0 &f the ad%ance is not fully secured and *here there
is a
shortfall ad/ust the ad%ance after dis$osal of securities" the
decision has to !e ta(en !y the !an( *hether to (ee$ the
!orro*er in !usiness or file a suit aainst him for reco%ery of
!an(Js dues. &t is *ell (no*n that once the suit is filed" the
!orro*er ceases to !e co#o$erati%e.
',- BA,4 L&M&T-D has !een follo*ed a series of measures to reco%er
the default amount of loans and ad%ances !oth in Branch and <ead
'ffice le%el.
PERFORMANCE OF LOANS ; AD/ANCES OF ONE BANK LIMITED
31
Consolidated Loans and Ad%ances 7B000#B0028
7Fi in Million Ta(a8
Dear Total Loans and
Ad%ances
B000 C31H.21
B001 3B30.2H
B00B 29E2.0C
B001 9BHB.B0
B00C 1B000.1E
B00E 1E119.1E
B003 19000.00
B002 BBB31.1E
Source0 Annual 9e$ort" B002
:ra$hical 9e$resentation of a!o%e Fiures0
0
5000
10000
15000
20000
25000
F
i
g

i
n

M
i
l
l
i
o
n

T
k
.
2000 2002 2004 2006
Year
Loan Position 2000-2007
Loans
!"#an$es
Ge see in the ra$h that there is a steady ro*th of loans ? ad%ances
in e%ery year.
Com$arati%e &ncrease in ;ercentae of Total
Loans and Ad%ances 7B000#B0028
32
Dear Total Loans and
Ad%ances
&ncrease
in ;ercentae
B000 C31H.21 #
B001 3B30.2H 1E.EEK
B00B 29E2.0C B2.09K
B001 9BHB.B0 13.3EK
B00C 1B000.1E B9.BHK
B00E 1E119.1E B2.HBK
B003 19000.00 B1.H3K
B002 BBB31.1E 12.12K
:ra$hical 9e$resentation of A!o%e Fiures0
%o&'arati#e 'er$entage o( Total
Loans !"#an$es
0
10
20
30
40
1 2 3 4 5 6 7
Year
F
i
g

i
n

P
e
r
$
e
n
t
a
g
e
) in$rease" in
Total Loans
!"#an$es
The !an(Js loans and ad%ances com$rised of industrial loans" micro
credit" commercial loans and !ills $ortfolio increased !y 12.12K to
T4.BBB31.1E million in B002 com$ared to T4. 19000.00 million in B003.
;ercentae rate is fluctuatin due to the une%en $ace of com$arati%e
ro*th. <o*e%er" ro*th too( $lace in e%ery year.
Trend Analysis of Total Loans and Ad%ances 71999#B0028
33
Dear T4 7D8 De%iation
from Middle
Dear 7M8
MD
B
M De
1999 1930.11 #C #1EHC0.CC 13 BC.E9
B000 C31H.21 #1 #11HE3.19 9 2191.3H
B001 3B30.2H #B #1BEB1.E3 C H1EH.22
B00B 29E2.0C #1 #29E2.0C 1 9EBE.H3
B001 9BHB.B0 0 0 0 1039B.9E
B00C 1B000.1E 1 1B000.1E 1 11H30.0C
B00E 1E119.1E B 1032H.20 C 110B2.11
B003 19000.00 1 E2000.00 9 1C19C.BB
B002 BBB31.1E C H90E1.C0 13
Total DN1003H1.21 MN0 MDN11HEE2.0B M
B
N30
The e5uation of the straiht line trend is DeN a O !M
D 1003H1.21
Since MN0@ a N #### N ############# N 111H3.H3
, 9

MD 11HEE2.0B
and ! N ######## N ############## N
B109.BH
M
B
30
So the trend %alue of %arious years *ill !e0
De 719998 N 111H3.H3O B109.BH7#C8N 19C9.2C
De 7B0008 N 111H3.H3O B109.BH7#18N CBE9.0B
De 7B0018 N 111H3.H3O B109.BH7#B8 N 3E3H.10
3
De 7B00B8 N 111H3.H3O B109.BH 7#18 N HH22.EH
De 7B0018 N 111H3.H3O B109.BH 0 N 111H3.H3
De 7B00C8 N 111H3.H3O B109.BH 1 N 11C93.1C
De 7B00E8 N 111H3.H3O B109.BH B N 1EH0E.CB
De 7B0038 N 111H3.H3O B109.BH 1 N 1H11C.20
De 7B0028 N 111H3.H3O B109.BH C N B0CB1.9H
Thus the trend %alue for the year B00H0
De 7B00H8 N 111H3.H3O B109.BH E N BB211.B3
:ra$hical 9e$resentation of Trend =alues0
Tren" *al+e o( Loan an"
!"#an$es ,1----2007.
0
4000
/000
12000
16000
20000
1 2 3 4 5 6 7 / -
Year
F
i
g
+
r
e

i
n

M
i
l
l
i
o
n

T
k
.
Tren" *al+e
&n the fiure *e o!ser%e that there is a 7u$*ard8 $ositi%e trend of total
loans ? ad%ances. Ge o!ser%e that the real fiure of loans ? ad%ances
is also $ositi%e in e%ery year.
3!
E.B Com$arati%e Analysis of ;erformance of Loans ? Ad%ances" De$t. of
',- Ban( Limited" Ara!ad Branch
Com$arati%e Statement of De$osit and Loans ? Ad%ances 7B001#B0028
7Fi in Lac8
B001 B00C B00E B003 B002
De$osit E1C1 E3E1.CE 10B1H.9E 1B2CE.BH 1E11C.01
Loans ?
Ad%ances
EE1E.00 2301.H2 92CH.13 112CE.B2 1B931.C0
:ra$hical 9e$resentation of a!o%e Fiures
0
5000
10000
15000
20000
F
i
g

i
n

L
a
$
2003 2005 2007
Year
%o'arati#e Position o( 0e'osit
an" Loan !"#an$es
,2003-2007.
0e'osit
Loan
!"#an$es
Ge see in the ra$h that there is a steady ro*th in !oth De$osit and
Loans ? Ad%ances in e%ery year. The Ban(Js De$osit increased !y
1H.EHK to T4.1E11C.01 Lac in B002 com$ared to T4.1B2CE.BH Lac in
3"
B003. And Loans and Ad%ances com$rised of &ndustrial Loans"
Commercial Loans and Bills ;ortfolio increased !y 10.12K to
T4.1B931.C0 Lac in B002 com$ared to T4.112CE.BH Lac in B003.
&n the year B00E" B003 and B002 de$osit amount is reater than the
amount of loans ? ad%ances. But in the year B001 and B00C the
amount of loans ? ad%ances is reater than de$osit amount. Ban(
should maintain the a$$ro$riate !alance !et*een these t*o in the liht
of the loana!le fund conce$t.
Com$arison of De$osit and Loans ? Ad%ances of B003 7>an#>une8"B002
7>an#>une8 ? B00H7>an#>une8
7Fi in Lac8
B003 7>an#>une8 B002 7>an#>une8 B00H7>an#>une8
De$osit 11311.00 1C0C1.EC 139EH.11
Loans ? Ad%ances 10E10.00 11HEB.E1 11219.0C
:ra$hical 9e$resentation of the a!o%e Statement0
37
0
2000
4000
6000
/000
10000
12000
14000
16000
1/000
F
i
g

i
n

L
a
$
1 2 3
Year
%o&'arati#e Position o( 0e'osit an" Loan
!"#an$es
0e'osit
Loan !"#an$es
The Ban(Js De$osit increased !y B0.2EK to T4.139EH.11 Lac in B00H
7>an#>une8 com$ared to T4.1C0C1.EC Lac in B002. And Loans and
Ad%ances com$rised of &ndustrial Loans" Commercial Loans and Bills
;ortfolio decreased !y 0.9HK to T4. 11219.0C Lac in B00H7>an#>une8
com$ared to T4.11HEB.E1 Lac in B002 7>an#>une8.
Com$arati%e Statement of 9eco%ery of Loans and Ad%ances
De$artment 7B00E#B0028
7Fi in Lac8
B00E
Ad%ance
'utstandin
7S.S.&. O
M.S.&.8
9eco%ery
7S.S.&. O M.S.&.8
K of 9eco%ery
Term Loan
S.S.&
M.S.&
B003.29 C00.10 19.9CK
3#
Su! Total B003.29 C00.10
19.9CK
Gor(in
ca$ital
S.S.&
M.S.&
332C.32 ,IA
Commercial
loan
1033.20 ,IA
Su! Total 22C1.12
Total 92CH.13
,ote0 SS& N Small Scale &ndustries
MS& N Medium Scale &ndustries
B003
Ad%ance
'utstandin 9eco%ery
7S.S.&. O M.S.&.8
K of 9eco%ery
Term Loan
S.S.&
M.S.&
1C2H.EC
3H2.3H
EB1.22 BC.1HK
Su! Total B133.BB EB1.22
BC.1HK
Gor(in
ca$ital
S.S.&
M.S.&
122E.1B
BBE1.C1
,IA
39
Commercial
loan
1EE0.E0 ,IA
Su! Total 9E29.0E
Total 112CE.B2
B002
Ad%ance
'utstandin 9eco%ery
7S.S.&. O M.S.&.8
K of 9eco%ery
Term Loan
S.S.&
M.S.&
11EC.0E
10B0.02
303.1
BE.ECK
Su! Total B12C.1B 303.1
BE.ECK
Gor(in
ca$ital
S.S.&
M.S.&
C9BB.E2
10E0.93
,IA
Commercial
loan
B31E.2E ,IA
Su! Total 10EH9.BH
Total 1B931.C0
Most of the $ro/ect loans are Lon Term in nature i.e. reco%era!le on a
$eriod of 0E years or more. So $er year reco%ery of a sinle loan
should !e around B0K. Ge o!ser%e that the reco%ery in the year B00E"
B003 and B002 is around B0K. So *e can say the Loans ? Ad%ances
De$artment is in remar(a!le $osition in case of reco%ery.
,ote0 <ere only Term Loan is considered. Because *or(in ca$ital is a
continuous $rocess. &n the case of G.C. a $eriod ? limit of amount is
i%en. Githin this i%en $eriod client fre5uently ta(es ? returns
amount. So it is not loical to find the reco%ery.
$
Com$arati%e Statement of Taret of Total Loans and Ad%ances ?
Achie%ement of Taret 7B003 ? B0028
Fiure in Crore T4.
B002
;articulars Taret Achie%ement
De$osit 1C0.00 1E1.1C
Loan ?Ad%ances 11E.00 1B9.31
B00H7>an#>une8
Statement of 'utstandin Ad%ance &nland Documentary Bill 7A&DB8 of
B009 7>an#>une8
;articulars Taret Achie%ement
De$osit 133.00 139.EH
Loan ?Ad%ances 1E0.00 112.19
1
Fiure &n Lac
:ra$hical 9e$resentation of the A!o%e Statement
Months 'utstandin 7&nT4.8
>an 1BCE.1H
Fe! 11H0.13
March BEBH.93
A$r B001.39
May 1E1E.C0
>une 10H2.9H
2
Position o( O+tstan"ing !102 o( 200/
,3an-3+ne.
0
500
1000
1500
2000
2500
3000
3500
3an Fe4 Mar$5 !'r Ma6 3+ne
Mont5
F
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+
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1
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L
a
$
&n the fiure alon M#a)is month is mentioned and alon D#a)is amount
is indicated. From the fiure *e o!ser%e that there is a steady decline
in outstandin A&DB from >anuary to May and in >une it is increased.

3
GENERAL BANKING
843I'trodu"e i' Ge'er!# B!'1i',

'ut of three ma/or sections :eneral Ban(in is im$ortant one. Throuh
this section !an( has to recei%e and dis!urse money" to de%elo$ !an(er
customer relationshi$ !y o$enin different ty$es of accounts and
$ro%idin $rom$t ser%ices to the customers. Durin my $ractical
orientation in ',- BA,4 L&M&T-D" Ara!ad Branch" it came to my
o!ser%ation that eneral !an(in section is di%ided *ith four areas.
These are0
Account o$enin section
9emittance section
Bills and clearin section
Cash section
Des$atch section
!
845 A""ou't Ope'i', Se"tio'
'ne of the %ital sections under :eneral Ban(in is the account o$enin
section. Ban(er#Customer relationshi$ is introduced throuh the
o$enin of an account. Ban(er means a $erson transactin the !usiness
of acce$tin for the $ur$ose of lendin in%estin de$osit recei%ed from
the $u!lic" re$aya!le on demand or other*ise and *ithdra*al !y
che5ue" draftP,eotia!le &nstrument Act.Sec#17!8.Q &n common
$arlance" the term customer means a $erson *ho has an account *ith
the !an(. 'n the other hand" a $erson does not !ecome a customer
sim$ly !y o$enin an account in the !an(. <e should !e in the ha!it of
dealin *ith the !an( i.e. there should !e some measure of continuity
in his dealin *ith the !an(.
=arious tas(s are $erformed in this section. Such as0
'$enin of different ty$es of account.
&ssue of chec(!oo(.
Transfer and closin of account.
-n5uiry of account.
Different 4inds of De$osit Accounts 'ffered !y the Ban( and the
9e5uirements for o$enin those De$osit Accounts0
De$osit is the main source of ettin fund of a !an(. &n fact" de$osit
refers to the money (e$t *ith the !an( !y the customer. Ban( is the
institution *hich is $erformin social res$onsi!ilities !y securin !oth
small and lare de$ositors money and also hel$in to the industrial"
commercial" social and economical de%elo$ment. &n this $rocess the
!an( ma(es $rofit. There are different ty$es of de$osits schemes
offered to the customer *hich are the follo*in0
CU99-,T D-;'S&T ACC'U,T0 The !an( collects current de$osit !y
current de$osit account. To o$en this account" it is re5uired minimum
"
T4. 1000. The de$ositor can de$osits or *ithdra* money any time
durin a *or(in day. ,o interest is $aid in this account.
=arious ty$es of accounts are considered under current AIC. The
re5uirements for o$enin such AIC under se%eral circumstances are
indicated !elo*0
For &ndi%iduals0
&ntroduction.
T*o $hotora$hs each attested !y the introducer.
;hotoco$y of $ass$ortI ,ationality Certificate from Gard
CommissionerI U; Chairman.
Disclosure of nominee ? filled u$ 4DC 74no* Dour Customer8
form and transaction $rofile.
For ;ro$rietorshi$ ? ;artnershi$ Firms0
&ntroduction.
T*o $hotora$hs of $ro$rietor I $artner each attested !y the
introducer.
Disclosure of nominee ? filled u$ 4DC 74no* Dour Customer8
form and transaction $rofile.
=alid Trade License and ;artnershi$ Deed7 for $artnershi$ firm8.
For ;ri%ate ? ;u!lic Limited Com$anies0
Certificate co$y of Memorandum and Articles of Association.
Certificate of &ncor$oration.
Certificate of Commencement of Business7 &n case of ;u!lic
Limited Com$any8.
A resolution of the Board of Directors of the com$any to o$en and
o$erate the AIC.
T*o $hotora$hs each of the directors *ho are authori6ed to
o$erate the AIC.
Filed u$ 4DC 74no* Dour Customer8 form and transaction $rofile.
7
For :o%ernment ? Semi#:o%ernment Autonomous Bodies ? Sector
Cor$orations0
T*o $hotora$hs each of the authori6ed AIC o$erators.
Decision I9esolution of the com$etent authority to o$en and
o$erate the AIC.
For Clu!s" Societies" Associations and ,:'s0
T*o $hotora$hs each of the authori6ed authori6ed AIC
o$erators.
Decision I9esolution of the com$etent authority to o$en and
o$erate the AIC.
&ntroduction.
9eistration from the res$ecti%e de$artments of the :o%t.
U$ to date co$y of la*s" By#La*s or other documents o%ernin
its constitution acce$ta!le to the !an(.
&nitial De$osit I Minimum Balance0
The initial de$osit of T4.BE000.00 is re5uired to o$en the AIC and
maintained as minimum !alance. This amount may !e reduced at the
discretion of the !an(.
SA=&,:S D-;'S&T ACC'U,T0 A sa%ins !an( account is o$ened !y the
$eo$le of the lo*er and middle classes *ho *ish to sa%e a $art of their
incomes for the future $ur$oses and intend to earn an income from
their sa%ins. The !an( im$oses certain restrictions on the sa%ins
!an( account and also offer a res$onsi!le rate of interest.
Gho can o$en such AIC R
Any adult indi%idual in sinle or in /oint names.
&n the name of Clu!s" Associations" Societies and ,:'s.
9e5uirements for '$enin AIC0
#
The re5uirements for o$enin such AIC under the a!o%e t*o
circumstances are as same as the re5uirements mentioned in the
o$enin $rocedures of Current De$osit AIC.
An initial de$osit of T4.1000.00 is needed to o$en such AIC. Ban( may
close the AIC *ithout any declaration if minimum !alance is not
maintained.
Mode of Githdra*al0
,ot more than t*ice a *ee(" or BEK of the !alance at a time. &nterest
for the month may cease to accrue in case of more *ithdra*als.
S<'9T T-9M D-;'S&T7STD8 ACC'U,T0 The de$osit *hich is
maintained !y customer for the shorter duration is referred to as Short
Term De$osit. Customer de$osits money to o$en a STD AIC.
Gho can o$en that AIC R
;u!lic and ;ri%ate Limited com$anies.
Sector cor$orations" :o%t. Semi#:o%t. 'rani6ations and
Autonomous Bodies.
Clu!s" Societies" Associations and ,:'.
9e5uirements for o$enin the AIC0
The re5uirements for o$enin this AIC are those stated in case of
Current and Sa%ins De$osit Accounts.
An initial de$osit of T4.10000.00 is needed to o$en such AIC. Such AIC
may !e rela)ed at the discretion of the !an(.
Mode of Githdra*al0
Usually 2#days is re5uired. May !e rela)ed at the discretion of the
!an(.
9
F&M-D T-9M D-;'S&T 7FTD8 ACC'U,T0
This de$osit is offered !y the !an( for a fi)ed $eriod of time. The !an(
does not maintain cash reser%es aainst this de$osit and therefore the
!an( offers hiher rate of interest on such de$osit. The !an( acce$ts
FTD in terms for a minimum $eriod of three months and minimum
amount of T4.10000.00 is re5uired to the AIC and there is no
ma)imum limit.
Gho can o$en FTD AIC R
;u!lic and ;ri%ate Limited com$anies.
Sector cor$orations" :o%t. Semi#:o%t. 'rani6ations and
Autonomous Bodies.
Clu!s" Societies" Associations and ,:'.
9ene*al0
'n maturity of the FD" it may !e rene*ed and if no instruction is i%en
in due time" the same is rene*ed !y the !an( for the further $eriod at
the time of such rene*al. ;remature encashment may also !e done on
emerency" and on some conditions.
Mode of De$osit I Githdra*al0
Fi)ed De$osit 9ecei$ts duly sined !y t*o authori6ed officials of the
!an( on security $a$er are issued. Githdra*al is made on $resentation
of the recei$t duly dischared.
!$
INTEREST RATES ON DIFFERENT DEPOSITS
Cateory &nterest rates

Sa%ins 2.00K
Short Term De$osit7STD8 C.E0K
Fi)ed De$osit
1 Months 2.BEK
3 Months 2.E0K
1 Dear H.00K
B Dear and a!o%e H.BEK
847 Remitt!'"e Se"tio'
The ma/or function of commercial Ban(s is mo!ili6ation of fund. 'ther
than this" !an(s $ro%ide ancillary ser%ices to its clients. Clients need to
remit money from one $lace to another for their !usiness or other
$ur$oses. Ban(s fulfill this need of customers !y means of remittance
ser%ice. Money can !e remitted domestically or internationally" *hich
(no*n as local remittance and forein remittance.
There are three *ays of transferrin fund domestically. The modes of
transferrin funds are0
;ay# 'rder 7;'8.
Demand Draft 7DD8
Telera$hic Transfer 7TT8
!1
848 C#e!ri', !'d Bi##& Se"tio'
Clearin and !ills section is an im$ortant section of :eneral Ban(in.
This is the section throuh *hich !ranch has to clear itFs inter !ranch
and inter !an( transaction.
Clearin
For the $ur$ose of security" the concerned customers et crossed
che5ue for the transaction. Crossed che5ue cannot !e encashed from
the counter" it has to !e collected throuh !an(in channel i.e.
clearin. For e)am$le" A client of ',- recei%ed a che5ue of another
!an(" *hich is located *ithin the clearin rane@ de$osit the che5ue in
his account at ',-. ,o* ',- *ill credit his account and collected it.
Thouh the amount is credited to the customerFs account" he *ill not
et the money until the che5ue is honored.
'ut*ard Bills for Collection 7'BC8
Customers de$osit che5ue" drafts etc. for collection" attachin their
de$osit sli$. &nstruments *ithin the rane of clearin are collected
throuh local clearinhouse. But the other" *hich is outside the clearin
rane" is collected throuh 'BC. For e)am$le" a customer of ',-"
Ara!ad Branch" de$osits a che5ue of Sonali Ban(" Dhanmondi Branch.
As a collectin !an( ',-" Ara!ad Branch sends &BDA 7&nter#Branch
De!it Ad%ice8 alon *ith che5ue to ',-" Main Branch. ',-" Main
Branch *ill collect it !y ',-" Dhanmondi Branch" the aent. They *ill
for*ard the !ill to that $articular 7Dhanmondi8 !ranch. 'BC num!er
must !e i%en on the for*ardin letter.
&n*ard Bills For Collection 7&BC8
!2
&n this case !an( *ill *or( as an aent of the collectin !an(. The
!ranch recei%es a for*ardin letter and the !ill" ,e)t ste$s are0
Ma(e entry in the &BC reister *ith an &BC num!er.
The instrument is sent to clearin for collection.
Clearin AIC######################################Dr.
Misc. Creditor AIC#####################Cr.
&f honored S
Misc. Creditor AIC #############################Dr.
<ead 'ffice 7collectin Br.8 ##########Cr.
An &BCA 7&nter#Branch Credit Ad%ice8 is $ro%ided in this reard.
&f dishonored S in this case the instrument is returned to the
collectin !ranch alon *ith return Memo indicatin the cause of
dishonored.
!3
84: C!& Se"tio'
Cash section is an im$ortant section *here cash transactions are made.
Cash sections demonstrate li5uidity strenth of a !an(. &t is also
sensiti%e as it deals *ith li5uid money. Ma)imum concentration is i%en
*hile *or(in on this section. There are %arious systems maintained !y
cash the officer *hich are0
=ault
Cash ;ayment
Cash 9ecei%e
Transaction after !an(in hour.
1.E Dis$atch Section0
Ghere all the inoin ? outoin documents" letter of credit7LIC8"
acce$tance" $ayment" discre$ancies" amendments" and other
essentialities are reistered in the res$ecti%e reister maintained !y the
!an(. This des( is the most im$ortant $art of the !an( as the !an(Fs
official acti%ities are started from this section. <ere the concerned
officers recei%e all the documents thru res$ecti%e recei%ed seal follo*ed
!y the !an( and dis$atch those to the %arious de$artments. concerned
officers *here they ha%e to recei%e that throuh sinature in the
reister. &n the dis$atch section" the concerned officers must !e a*are
*hether any document is left *ithout entry in the res$ecti%e reister.
!
Forei,' E2"!',e Dep!rtme't
!!
:43 I'trodu"e o% Forei,' E2"!',e
Forein -)chane means forein currency. &t includes all de$osits"
credits and !alances $aya!le in forein currency as *ell as forein
instrument such as drafts !ill of e)chane" $romissory note in any
forein currency.
Accordin to Forein -)chane 9eulation Act 19C2" +Any thin that
con%eys a riht to *ealth in another country is forein e)chane..
Forein e)chane de$artment $lays sinificant roles throuh $ro%idin
different ser%ices for the customer. Facilitatin the trade *ith forein
country is the most im$ortant amon those ser%ices the (ey instrument
*hich facilitates this trade is LIC 7Letter of Credit8.
Letter of Credit0 Letter of Credit may !e defined as an arranement or
uarantee issued !y a !an( at the re5uest of the customer to ma(e
$ayment to or order of the !eneficiary or authori6ed another !an(
to effect such $ayment or to $ay" acce$t or neotiate such !ill of
e)chane aainst sti$ulated documents" $ro%ided that the terms
and conditions of the LIC are com$lied *ith. 7UC;DC#E00" 19918
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:45 Forei,' E2"!',e Me"!'i&m9
!7
!U"ER/
IMP#RTER
I$DE$T#R SELLER
E%P#RTER
!E$EFICIAR"
ISSUI$& !A$'
AD(ISI$&
!A$'/
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REIM!URSI$&
!A$'
FI&- F#REI&$ E%C.A$&E MEC.A$ISM
The Ad%isin Ban(0
&t is the !an( in the -)$orterFs 7,ormally the e)$orterFs !an(8" *hich is
usually the forein corres$ondent of &m$orterFs !an( throuh *hich the
LIC is ad%ised to the su$$lier. &f the intermediary !an( sim$ly
ad%isesInotifies the LIC to the e)$orter *ithout any o!liation on its
$art" it is called +Ad%isin Ban(..
The Confirmin Ban(0
&f the Ad%isin Ban( also adds its o*n underta(in to honor the credit
*hile ad%isin the same to the !eneficiary" he !ecomes the Confirmin
Ban(" in addition" !ecomes lia!le to $ay for documents in conformity
*ith the LICFs terms and conditions.
The ,eotiatin Ban(0
The Ban( that neotiates the !ill of e)$orter dra*n under the credit is
(no*n as ,eotiatin Ban(. &f the ad%isin !an( is also authori6ed to
neotiate the !ill dra*n !y the e)$orter" he !ecomes the ,eotiatin
Ban(.
The Acce$tin Ban(0
A Ban( that acce$ts time or unas(ed drafts on !ehalf of the im$orter is
called an Acce$tin Ban(. The &ssuin Ban( can also !e the Acce$tin
Ban(.
The ;ayin Ban( and the 9eim!ursin Ban(0
&f the &ssuin Ban( does not maintain any account *ith a !an( *ho *ill
!e neotiatin the documents under a LIC" then arranement is made
!#
to reim!urse the neotiatin !an( for the amount to !e $aid under
from some other !an( *ith *hom the &ssuin Ban( maintains his
account. The latter !an( is (no*n as 9eim!ursin Ban(.
Ban( Asia Ltd. ;rinci$al Branch forein e)chane de$artment $erform
its functions under three sections0 #
a. &m$ort De$artment
!. -)$ort De$artment
:47 IMPORT DEPARTMENT
Understandin0
&m$orts are forein oods and ser%ices $urchased !y consumers" firms"
? :o%ernments in Banladesh. The im$orters are as(ed !y their
e)$orters to o$en letter of credits so that their $ayment aainst oods
is ensured.
&M;'9T ;9'C-DU9-0
To im$ort throuh BA" a customer re5uires#
7i8 Ban( account
7ii8 &m$ort 9eistration Certificate 7&9C8
7iii8 Ta) ;ayin &dentification ,um!er
7i%8 ;roforma &n%oice &ndent
7%8 Mem!ershi$ Certificate
7%i8 LCA 7Letter of Credit Authori6ation8 form duly attested
7%ii8 'ne set of &M; Form
!9
7%iii8 &nsurance Co%er note *ith money recei$t
'ther im$ort $rocedure can !e sho*n !y the follo*in flo* chart"
&M;'9T M-C<A,&SM0
To im$ort" a $erson should !e com$etent to !e L&m$orterF. Accordin to
&m$ort and -)$ort Control Act" 19E0" the 'ffice 'f Chief Controller 'f
&m$ort and -)$ort $ro%ides the reistration 7&9C8 to the im$orter. After
o!tainin this $erson has to secure a letter of credit authori6ation 7LCA8
from Banladesh Ban(. And then a $erson !ecomes a 5ualified
im$orter. <e is the $erson *ho re5uests or instructs the o$enin !an(
to o$en an LIC. <e is also called o$ener or a$$licant of the credit.
T<&,:S G<&C< A9- D',- <-9-0
The follo*in thins are done in this de$artment0
Total su$er%ision of &m$ort De$artment 7CashIBac( to Bac( LIC8.
Forein Corres$ondence related to a!o%e.
;ayment of Bac(#to#Bac( LIC and endorsement of -)$ort LIC
aainst $ayment.
Follo*#u$ of Bac(#to#Bac( o%erdue !ills.
Corres$ondence reardin Bac(#to#Bac( LIC and Cash LIC.
Maintenance of Due Date Diary.
Maintenance ? record of related LIC Documents.
Audit Com$liance.
Matchin of Bill of -ntry *ith &M;" follo*#u$ of $endin Bill of
-ntry Tuarterly Statement.
Batch Chec(in.
LIC o$eninI Amendment 7Bac( to Bac( LIC8.
"$
-ndorsement of -)$ort LIC *hen o$enin.
Batch chec(in.
Balancin of LIC Continent Lia!ility 9Bac( to Bac( LIC8.
Follo*#u$ of Su!#/udice !ills and maintainin liaison *ith <ead
'ffice and Forein Corres$ondent.
All corres$ondence related to Bac(#to#Bac( LIC *ith <ead 'ffice
and Forein Corres$ondent.
Su$er%ision of chec(in" Lodment and retirement of &m$ort
documents under Bac(#to#Bac( LIC.
&ssuance of Certificate and attestation of $a$ersIdocuments of
arments clients as re5uired !y B:M-" -;B ? other reulatory
!odies.
Chec(in" lodment" retirement of &m$ort documents under
Bac(#to#Bac( LIC.
&ssuance of Shi$$in :uarantee 7Bac( to Bac( LIC8.
&M; Form Fill#u$ 7Cash LIC8.
&nform neotiatin Ban( a!out maturity date of Bac(#to#Bac(
LIC.
Tuarterly statements for Bonded *are <ouse.
Balancin of Acce$ted Lia!ility.
Statement of outstandin acce$ted im$ort !ills under Bac(#to#
Bac( LIC.
LIC o$enin and Amendment of Cash LIC 7and &nland LIC8.
Maintenance and record of ;ass!oo( and &9C.
Maintenance ? 9ecord of related LIC 7s8 ? Documents.
Credit 9e$ort.
Statement of &9C 9ene*al fees to CC&?-.
;re$aration of monthly forein e)chane !usiness $osition.
LIC Lodment 7Cash8.
Chec(in of Cash LIC documents.
"1
LIC 9etirement.
LCA &ssue.
BLC Statement.
Differed ;ayment 7Cash8.
Follo*#u$ of outstandin BLC.
Corres$ondent 7Cash LIC8.
;roof Sheet of LC Marin and Continent Lia!ility 7Cash LIC8.
&ssuance of shi$$in uarantee 7cash8 &M; forms fill#u$ 7cash8.
LIC '$enin0
&f an im$orter *ants to im$ort some oods from outside the country" at
first he has to a$$ly to a !an( for o$enin a LIC. Letter of Credit 7LIC8
is a *ritten underta(in of a !an( *ritten to the seller and issued at the
re5uest of the !uyer to $ay at site or a determina!le future date.
Accordin to &m$ort ;olicy" unless or other*ise s$ecified" all im$ort is
to !e made !y o$enin irre%oca!le letter of credit 7amendment or
cancellation *ith the areement of the o$enin !an(" ad%isin !an("
!eneficiary" and im$orter8. LIC can !e o$ened aainst ;roforma in%oice
if the e)$orter has no aent and LIC can !e o$ened aainst &ndent if
the forein su$$lier has indentin aent.
Documents 9e5uire for '$en a LIC0
For o$enin letter of credit an im$orter is re5uired to ha%e some
documents" *hich are to !e su!mitted to the LIC issuin or $o$ularly
(no*n as o$enin !an(.
A %alid &m$ort 9eister Certificate 7&9C8
"2
Mem!ershi$ Certificate from the reistered local Cham!er of
Commerce and &ndustry or %alid trade license
Ta) &dentification ,um!er
Letter of Credit Authori6ation form7lca8
&nsurance co%er note for LIC amount
&ndents for oods issued !y indenter or ;roforma &n%oice issued
!y forein su$$lier
Chare Documents duly sined
&M; form duly sined
The o$ener has to ha%e a current account *ith the !an(
SC9UT&,&UAT&', 'F LIC A;;L&CAT&',0
The BA 'fficial scrutini6es the a$$lication in the follo*in manner0 #
The terms and conditions of the LIC must !e com$lied *ith UC;DC
E00 and -)chane Control ? &m$ort Trade 9eulation.
-lii!ility of the oods to !e im$orted.
The LIC must not !e o$ened in fa%or of the im$orter.
9adioacti%ity re$ort in case of food item.
Sur%ey re$ort or certificate in case of old machinery
Carryin %essel is not of &srael or of Ser!ia# Montenero
Certificate declarin that the item is in o$eration not more than E
years in case of car.
;rocedure in%ol%ed in LIC o$enin0
There are fe* ste$s in%ol%ed in LIC o$enin $rocess.
"3
At first the LIC o$ener is re5uired to fill u$ the $rescri!ed
a$$lication form for re5uestin to o$en a LIC for him.
After recei%in the a$$lication form *ith other re5uired
documents su!mitted !y the o$ener they are to !e thorouhly
scrutini6ed. The $oints" *hich shall !e scrutini6ed" are descri!in
!ello*.
a. The amount and descri$tion of oods in the a$$lication should
!e rele%ant *ith the indent or ;roforma in%oice or im$ort
contract.
!. The amount is co%ered !y the insurance amount.
c. The item is not a !anned one.
d. The indent $roduced has the &m$ort 9eistration Certificate
num!er and the indenterFs reistration num!er. The indent has
indentin aentFs sinature and im$orterFs sinature.
e. Ghether transshi$ment and $artial shi$ment is allo*ed.
&f all the documents alon *ith the a$$lication are in order" the
financial $osition and credit *orthiness of the im$orter" mar(et
demand of the ood is assessed. Marin for letter of credit *ill
also !e determined. The rate of marin de$ends on the financial
condition of the !an(er" &m$orters $re%ious $erformance" status
of relationshi$ *ith the im$orter" nature of oods etc. This
marin is to !e retained from the im$orter either in cash or
de!itin the im$orterFs current account *ith the !an(. The
im$orter is also re5uired to $ay the other concernin chares li(e
forein corres$ondin chare" tele) chare 7if any8" handlin
chares" and commission etc.
"
After all these ste$s of letter of credit is o$ened and for*arded to the
ad%isin !an(.

Accountin ;rocedure &n%ol%ed in LIC o$enin0
There are t*o ty$es of accountin $rocedure in%ol%ed in LIC. 'ne is LIC
o$enin" and another is Lia!ility 9eister" *hich includes Lia!ility
amount" Marin" Forein corres$ondent etc. Ghile o$enin LIC there
are fe* accountin entries.
For Marin im$orter account *ith !an( is de!ited and Marin AIC is
credited.
For continent lia!ility 7LIC amount8 CustomerFs lia!ility on LIC cash
is de!ited and Ban(erFs lia!ility on cash is credited.
For other chares customerFs current account is de!ited and
commission AIC" income AIC" Forein corres$ondent chare AIC and
other related AIC is credited.
AD=&S&,: A L-TT-9 'F C9-D&T0
The ad%isin or notifyin !an( is the !an( throuh *hich the LIC is
ad%ised to the e)$orter. &t is a !an( situated in the e)$ortin country
and it may !e a !ranch of the o$enin !an(. &t !ecomes customary to
ad%ise a credit to the !eneficiary throuh an ad%isin !an(.
ADD&,: C',F&9MAT&',0
"!
The confirmin !an( does addin confirmation. Confirmin !an( is a
!an(" *hich adds its confirmation to the credit" and it is done at the
re5uest of the issuin !an(. The confirmin !an( may or may not !e
the ad%isin !an(.
LIC Transmittin0
Letter of credit can !e transmitted to the ad%isin !an( throuh three
methods. They are in Tele)" Courier" or SG&FT 7Society for Gorld*ide
&nter#!an( Financial Telecommunication8. LIC is send to ad%isin !an(
in three co$ies. The ad%isin !an( authenticates the oriinal co$y of
LIC and deli%ers it to the e)$orter. The du$licate co$y is (e$t *ith the
ad%isin !an(.
,eotiatin0
The !eneficiary 7e)$orter8 recei%es the letter of credit from ad%isin
!an(. After $ro$er shi$ment of oods as $er terms and conditions of
the LIC" re5uired documents li(e Commercial &n%oice" Bill of Ladin"
and !ill of e)chane are $resented to the neotiatin !an( !y the
!eneficiary for neotiation. &f the documents are in order as $er LIC
then the neotiatin !an( neotiates the drafts ma(in $ayment to the
!eneficiary. Then the neotiatin !an( for*ards the drafts alon *ith
the shi$$in documents to the LIC o$enin !an(. The neotiatin !an(
reim!urses the amount $aid aainst the draft from reim!ursement
!an(.
Amendment0
;arties in%ol%ed in a LIC" $articularly the seller and the !uyer cannot
al*ays satisfy the terms and conditions in full as e)$ected due to some
o!%ious and enuine reasons. &n such a situation" the credit should !e
amended. BA transmits the amendment !y tested tele) to the ad%isin
!an( .&n case of re%oca!le credit it can !e amended or cancelled !y the
issuin !an( at any moment and *ithout $rior notice to the !eneficiary.
But in case of irre%oca!le letter of credit" it can neither !e amended nor
""
cancelled *ithout the consent of the issuin !an(" the confirmin !an(
7if any8 and the !eneficiary. &f the LIC is amended" ser%ice chare and
tele) chare is de!ited from the $arty account accordinly.
-MAM&,AT&', 'F D'CUM-,TS0
BA officials chec( *hether these documents ha%e any discre$ancy or
not. <ere" Discre$ancy means the dissimilarity of any of the documents
*ith the terms and conditions of LIC.
ADD&,: C',F&9MAT&',0
Add the confirmin Ban( i%es confirmation. An Add confirmation letter
contains the follo*ins"
18 LIC ,o.
B8 LIC amount
18 &tems to !e im$orted" etc.
L'D:M-,T0
The o$enin !an( recei%es im$ort !ills" *hich ha%e !een neotiated.
After recei%in the documents" they are to !e thorouhly scrutini6ed
!efore lodment.
Scrutiny of the Documents0
First of all it must !e ensured that full set of documents as mentioned
in the LIC has !een recei%ed.
Documents ha%e !een neotiated *ithin the neotiation $eriod.
The Bill of LadinIAir#Gay BillI 9ail*ay recei$t is not dated later
than the last date of shi$ment mentioned in the LIC.
The LIC has not !een amended or su!/ected to any s$ecial
instructions" *hich miht alter the %alue of LIC.
&m$ort !ills include follo*in documents" *hich are to !e
scrutini6ed.
Bill of -)chane
Commercial &n%oice
Bill of Ladin
"7
Certificate of 'riin
'thers
Bill of -)chane0
&t has to !e %erified that the !ill of e)chane has !een $ro$erly
dra*n and sined !y the !eneficiary accordin to the terms and
conditions of LIC.
The amount in the Bill is identical *ith that mentioned in the
in%oice.
The amount dra*n does not e)ceed the amount mentioned in the
LIC.
The amount in *ords and fiures should !e same.
The Bill of -)chane should !e $ro$erly endorsed.
Commercial &n%oice0
&t has to !e %erified that the commercial in%oice has !een
$ro$erly dra*n and sined !y the !eneficiary accordin to the terms
and conditions of LIC.
The !eneficiary should $ro$erly in%oice the merchandise.
The merchandise is in%oiced to the im$orter on *hose account
the LIC is o$ened.
The descri$tion of merchandise and the unit $rice corres$ond *ith
that i%en in the LIC.
The im$ort license or &9C num!er of the im$orter" indenterFs
reistration num!er and num!er of Letter of Credit Authori6ation
num!er are incor$orated in the &n%oice.
Bill of Ladin0
"#
First of all it has to !e cleared that the Bill of Ladin is sho*in
+Shi$$ed on Board. and it has to !e $ro$erly endorsed to the !an(.
The BIL should include the descri$tion of the merchandise
accordin to in%oice.
The $ort of shi$ment and destination" date of shi$ment and the
name of the consinee are in areement *ith those mentioned in
the LIC.
The shi$$in com$any or their authori6ed aents $ro$erly sin
the BIL.
The date on the BIL is not LstaleF *hich means it is not dated in
unreasona!ly lon time $rior to neotiation.
Certificate of 'riin0
The Merchandise descri!ed in the Certificate is in accordance *ith the
LIC.
'thers0
There are some other documents" *hich are also attached" *ith the
shi$$in documents li(e $ac(in list" $re#shi$ment ins$ection certificate
etc. These documents are also %erified carefully !efore lodment.
Ste$s &n%ol%ed in Lodment0
Ghen the scrutiny of im$ort !ills is o%er the ste$s should !e ta(en for
lodment.
At first all the $articulars of the documents are entered in the
;AD 7;ayment aainst Document8 reister and ;AD ,o. Seal is i%en
on all the co$ies of the recei%ed documents.
Con%ert the forein currency into Banladeshi currency.
9e%erse the continent lia!ility and entry in the lia!ility reister.
"9
;re$are lodment %oucher.
;re$are other %oucher.
Send &BCA to the head office.
Ma(e intimation to the im$orter.
Accountin -ffect0
For re%ersin continent lia!ility contra %oucher is de!ited !y Ban(erFs
Lia!ility AIC and credited *ith CustomerFs Lia!ility AIC.
For ;AD" income on e)chane there is fe* credit %ouchers and one
de!it %oucher. &n the de!it %oucher the de!it head is ;AD and income
and head office is credited. &n the credit %ouchers the o$$osite of these
entry is made. ,o* if the res$ecti%e officer thin(s that the a$$lication is
fit to o$en a LIC" the follo*in accountin treatments are i%en"
ClientFs Account De!it
Marin on LIC Credit
Commission on LIC Credit
=AT 71EK of Commission8 on LIC Credit
F.C.C 7Forein Currency Clearin8 AIC Credit
9eistration Fee AIC Credit
Tele)I ;ostae chares AIC Credit
Miscellaneous Chares AIC Credit
After that" LIC num!er and the a!o%e entries are i%en in the LIC
9eister. The contra entries statin the lia!ility of the !an( and the
client are as follo*s"
CustomerFs Lia!ility De!it
Ban(erFs Lia!ility Credit
7$
Then the transmission of LIC is done throuh tested tele) or fa) to
ad%ise the LIC to the !eneficiary.
&f the amount of LIC e)ceeds USV10"000" BA ta(es the credit re$ort of
the !eneficiary 7C&B re$ort8 to ensure the *orthiness of the su$$lyin
oods.
9etirement of Shi$$in Documents0
The im$orter recei%es the intimation and i%es necessary instruction to
the !an( for retirement of the im$ort !ills or for the dis$osal of the
shi$$in document to clear the im$orted oods from the customs
authority. Follo*in ste$s are to !e ta(en for retirement of documents.
E.B.E.B. Ste$s &n%ol%ed in 9etirement0
Calculation of interest if any.
Calculation of other chares.
;assin %ouchers.
-ntry in the reister.
-ndorsement in the Bill of Ladin or other trans$ort document
and in the !ill of e)chane.
Accountin -ffect0
'n scrutiny" if it is found that the document dra*n in conformity *ith
the terms of the credit i.e. the documents are in order BA lodes the
documents in ;AD and the follo*in %ouchers are $assed"
Accountin Treatment0
LIC Marin AIC De!it
;AD AIC Credit
7Marin amount transferred to ;AD AIC8
Customer AIC De!it
71
;AD AIC Credit
7CustomerFs account de!ited for the remainin amount8
;AD AIC De!it
BA :eneral AIC Credit
-)chane ain AIC Credit
7Amount i%en to BA :eneral AIC and interest credited8
9e%ersal -ntries0
Ban(erFs Lia!ility De!it
CustomerFs Lia!ility Credit
7Ghen lodment is i%en8
After reali6in the tele) chare" ser%ice chare" interest 7if any8" the
shi$$in documents is then stam$ed *ith ;AD ,um!er ? entered in the
;AD 9eister. &ntimation is i%en to the customer callin on the !an(Fs
counter re5uestin retirement of the shi$$in documents. After $assin
the necessary %ouchers" endorsements is made on the !ac( of the Bill
'f -)chane as +9ecei%ed ;ayment. and the Bill 'f Ladin is endorsed
to the effect +;lease deli%er to the order of MIS#########." under t*o
authori6ed sinatures of the !an(Fs officers 7;.A. <older8. Then the
documents are deli%ered to the im$orter.
;ADM-,T ;9'C-DU9- 'F T<- &M;'9T D'CUM-,TS0
This is the most sensiti%e tas( of the &m$ort De$artment. The 'fficials
ha%e to !e %ery much careful *hile ma(in $ayment. This tas(
constitutes the follo*in"
A. Date of $ayment0 Usually $ayment is made *ithin se%en days
after the documents ha%e !een recei%ed. &f the $ayment is
72
!ecome deferred" the neotiatin !an( may claim interest for
ma(in delay.
B. ;re$arin sale memo0 A sale memo is made at B.C rate to the
customer. As the T.T ? '.D rate is $aid to the &D" the difference
!et*een these t*o rates is e)chane tradin. Finally" an &nter
Branch -)chane Tradin Credit Ad%ice is sent to &D.
C. 9e5uisition for the forein currency0 For arranin necessary
fund for $ayment" a re5uisition is sent to the &nternational
De$artment.
Transmission of tele)0 A tele) is transmitted to the corres$ondent !an(
ensurin that $ayment is !ein made.
Bac(#to#Bac( LIC0
Bac( to Bac( letter of credit may !e defined as a credit *hich is o$ened
at the instruction and re5uest of the !eneficiary of the oriinal -)$ort
LIC on the !asis of strenth of that LIC. 9eady#made arment
industries and s$eciali6ed te)tile units are allo*ed the facility of
im$ortin fa!rics and other materials needed for manufacture of
armentsI s$eciali6ed te)tiles aainst !ac( to !ac( LIC arranement.
Bac(#to#Bac( LIC is of t*o ty$es.
7i8 Forein !ac( letter of credit
7ii8 &nland !ac(#to#!ac( letter of credit
A !ac(#to#!ac( LIC is o$ened aainst an irre%oca!le LIC o$ened !an(
ha%in reasona!le $eriod of %alidity to co%er shi$ment of merchandise
after com$letion of %alidity to co%er shi$ment of merchandise after
com$letion of the manufacturin $rocess. The e)$ort LIC is lien mar(ed
*ith the !ac(#to#!ac( LIC issuin !ranch. &m$ort LIC is o$ened on
issuance !asis co%erin usance of not more than 1H0 days. The im$ort
LIC is o$ened for 2EK#HEK of the %alue of -)$ort LIC. the $ayment is
normally made form the $roceeds of e)$ort !ills neotiated after
shi$ment.
73
;rocedure for '$enin Bac(#to#Bac( LIC0
The follo*in $a$ersIdocuments are re5uired to su!mit !y the e)$orter
to the !an( for o$enin forein !ac(#to#!ac( LIC.
LIC Authori6ation forms duly filled and sined.
&ndentI $ro forma in%oice
&m$#form.
Alon *ith the a!o%e $a$ers I documents" oriinal e)$ort LIC is to !e
su!mitted !y the e)$orter. 'n recei$t of these documents the !an(
scrutini6es the terms and conditions of the e)$ort LIC. after ettin
a$$ro%al from head office throuh Credit Section" The $articulars of the
LIC are entered in the LIC o$enin reister.
7
:48 E.PORT DEPARTMENT
U,D-9STA,D&,:0
&n the -)$ort section" t*o ty$es of LIC s are o$ened#
Bac( to Bac( LIC
-)$ort LIC
Thins done here0
The follo*in thins are done in this de$artment0
Scrutiny of -)$ort Shi$$in Documents.
Follo*#u$ for reali6ation of -)$ort ;roceeds.
All Corres$ondence relatin to -)$ort De$artment.
Com$liance of Audit ? &ns$ection.
Ad%isin of -)$ort LICs to the !eneficiary.
Authentication of LIC and Amendments from other Corres$ondent
Ban(.
Transfer of -)$ort LIC to the B
nd
Beneficiary ? issuance of notice of
transfer to LIC issuin Ban(.
9ecordin of -)$ort LIC $articulars in -)$ort LIC Transfer 9eister.
9eali6ation of transfer chanes.
&ssuance of $roceeds reali6ation certificates.
And other *or(s as ? *hen directed !y the manaer and Su!#
Manaer.
Certificate of -M; Forms.
;ostin of Tic(ets.
Lodment of -)$ort Bills 7FB;" FDBC" &B; ? &BC8.
;re$aration of tic(ets elatin to neotiation of documents.
7!
,eotiation of &nland Bills.
Maintenance of all records related to FB;" FDBC and &nland Bills.
Balancin of FB;" FDBC" and &;B ? AI9 -)$ort AICs.
;re$aration of statement and all returns to Banladesh Ban( and
<ead 'ffice 7Gee(lyI MonthlyI 5uarterly8.
-M;'9T B&LL SC9UT&,D0
Scrutini6es the e)$ort !ill on the follo*in $oints"
A. :eneral0
Late shi$ment.
0 Late $resentation.
1 LIC e)$ired.
B LIC o%erdra*n.
1 ;artial shi$ment or transshi$ment !eyond LIC terms.
1 Bill 'f -)chane0
0 Amount of !ill differs *ith &n%oice.
1 ,ot dra*n on LIC issuin !an( not sined.
B Tenor of BI- not identical *ith LIC
1 Full set not su!mitted &n%oice0
0,ot issued !y the !eneficiary
,ot sined !y the !eneficiary
1 ,ot made out in the name of the A$$licant
Descri$tion" ;rice" 5uantity" sales terms of the
oods not corres$onds to the credit.
,ot mar(ed one fold as oriinal Shi$$in mar(s
differs *ith BIL ? $ac(in list.
B ;ac(in List0
:ross *eiht" net *eiht" ? measurement" num!er of
cartoonsI $ac(aes differs *ith BIL.
0 ,ot mar(ed one fold as oriinal.
7"
1 ,ot sined !y the !eneficiary.
B Shi$$in mar(s differs *ith BIL.
1 Bill of LadinIAir Gay Bill 0
0 Full set of !ill not su!mitted.
1 BIL is not dra*n or endorsed to the 'rder 'f BA.
+Shi$$in on Board." +Freiht ;re$aid. or +Freiht
Collect. etc. notations are not mar(ed on the BIL.
BIL not indicate the name and ca$acity of the $arty
i.e. carrier or master" on *hose !ehalf the aent is
sinin the BIL.
Shi$$ed on Board ,otation not sho*in name of $re#
carriae %esselI intended %essel.
Shi$$ed on Board ,otation not sho*in $ort of
loadin and %essel name 7&n case BIL indicates a
$lace of recei$t or ta(in in chare different from the
$ort of ladin8.
B Short Form BIL.
1 Charter $arty BIL.
Descri$tion of oods in BIL not arees *ith that of
&n%oice" BI- ? ;IL.
C Alterations in BIL not authenticated.
E Loaded on dec(.
BIL !earin clauses or notations e)$ressly declarin
defecti%e condition of the oods and I or the
$ac(aes.
'thers0
,on#,eotia!le documents not for*arded to !uyers or
for*arded !eyond LIC terms.
&nade5uate num!er of &n%oice" ;ac(in List" ? others
su!mitted.
77
Short shi$ment certificate not su!mitted.
-M;'9T F&,A,C-0
;re#shi$ment credit0
;re#shi$ment credit usually ta(es the follo*in forms0
'%erdraft aainst hy$othecation of e)$orta!le commodities.
'%erdraft aainst Trust 9ecei$t 7T.9.8
;ac(in Credit 7;.C.8
;ost shi$ment Credit0
;ost shi$ment credit refers to credit facilities e)tended to e)$ort after
actual shi$ment of oods aainst shi$$in documents. &t is usually
$ro%ided in the follo*in *ays.
Bill neotiation I $urchase.
Bill for collection.
7&8 Bill ,eotiation I ;urchase0
The most usual method of financin e)$orters at the $ost#shi$ment
stae is neotiation of documents under LIC. <ere the !an( acts as
neotiatin !an(. After the shi$ment of the oods" the e)$orter
su!mits the relati%e documents to the !ranch for neotiation. The
documents enerally include a8 Bill of -)chane !8 Bill of ladin c8
&nsurance $olicy d8 &n%oice e8 Certificate of oriin" -TC. The documents
are to su!mit *ithin the $eriod mentioned in the LIC. The documents
are sent to the LIC o$enin !ranch *ith a for*ardin letter. Then the
!ranch claim reim!ursement from the issuin !an( or from the
reim!ursin !an(.
7#
'n neotiationI ;urchase of the e)$ort !ills" the e)$orter is $aid the
%alue of the !ill 7con%erted into Banladesh Ta(a at the rulin !ill
!uyin rates8.
7ii8 Documents on Collection Basis0
The documents" *hich are not neotia!le !y the !ranch due to some
discre$ancies" are sent to LIC o$enin !an( on collection !asis. The
!an( mentions the discre$ancies on their for*ardin schedule. 'n
recei%in the documents" the LIC o$enin !an( *ill further scrutini6e
the document *ith the LIC and inform the im$orter reardin
discre$ancies found in the documents. &f these are acce$ta!le to the
im$orter and or $ermissi!le *ith the e)itin -)chane control
reulation" the documents *ill !e loded and LIC o$enin !an( *ill
send the $ayment instruction to the collection !an(.
BAC4#T'#BAC4 LIC0
&n case of a Bac( to !ac( letter of credit" a ne* LIC 7an &m$ort LIC8 is
o$ened on the !asis of an oriinal LIC 7an -)$ort LIC8. Under the JBac(
to Bac(J conce$t" the seller as the Beneficiary of the first LIC offers it as
a JsecurityJ to the ad%isin Ban( for the issuance of the second LIC. The
Beneficiary of the Bac(#to#Bac( LIC may !e located inside or outside
the oriinal BeneficiaryJs country. &n case of a Bac(#to#Bac( LIC" no
cash security 7no marin8 is ta(en !y the Ban(@ Ban( liens the first LIC.
&n case of a Bac(#to#Bac( LIC" the dra*n !ill is an &ssuanceI Time !ill.
&n BA" $a$ersIdocuments re5uired for su!mission for o$enin of !ac(#
to#!ac( LIC0
a8 Master LIC
79
!8 =alid &m$ort 9eistration Certificate 7&9C8 ? -)$ort
9eistration Certificate 7-9C8
c8 LIC a$$lication ? LCA form duly filled in sined.
d8 ;roforma &n%oice or &ndent.
e8 &nsurance Co%er ,ote *ith money 9ecei$t
f8 &M;# form duly sined
&n addition to the a!o%e the follo*in $a$ersIdocuments are also
re5uired for e)$ort oriented arment industries *hile re5uestin for
o$enin of !ac(#to#!ac( letter of credit"
18 Te)tile $ermission
B8 =alid Bonded Garehouse License
18 Tuota allocation letter issued !y -)$ort ;romotion
Bureau 7-;B8 in fa%or of the a$$licant in case of
5uota items.

&n case the Factory $remises is a rented one" Letter of Disclaimer duly
e)ecuted !y the o*ner of the houseI$remises to !e su!mitted.
;ADM-,T 'F BAC4#T'#BAC4 LIC0
&n case !ac( to !ac( as 30#90#1B0#1H0 days of maturity $eriod"
deferred $ayment is made. ;ayment is i%en after reali6in e)$ort
$roceeds from the LIC issuin !an(.
ACC'U,T&,: T9-ATM-,T F'9 BAC4#T'#BAC4 LIC0
Ghen the document is arri%ed" the follo*in %ouchers are $assed
#$
CustomerFs AIC De!it
Commission on acce$tance Credit
&n case of $ayment" if the fund is at hand" the accountin entries are#
Sundry De$osit Marin on Acce$tance De!it
CustomerFs AIC Credit
&f the $arty is $aid in forein currency" BIC. rate is a$$lied in this
reard. &nternational De$artment ta(es the T.T. 'ID. rate. &f the
$ayment is made to &D in local currency in notional rate" &D follo*s T.T.
Clean 9ate. Ghen the $arty is to !e $aid" 'D Siht rate is follo*ed.
&f the fund is not a%aila!le to ma(e the $ayment" the follo*in
%ouchers are to !e $assed"
'A; De!it
CustomerFs AIC Credit
9-;'9T&,: T' BA,:LAD-S< BA,40
At the end of e%ery month" the re$ortin reardin the follo*in
information is mandatory"
A. Fillin of -#BI;#B schedule of S#1 cateory@ *hich co%ers the
entire month amount of im$ort" cateory of oods" currency"
country etc.
B. Fillin of -#1I;#1 schedule for all chares" commission *ith TIM
form.
C. Dis$osal of &M; form" *hich includes"
'riinal &M; is for*arded to Banladesh Ban( *ith in%oice
and &ndent.
#1
Du$licate &M; is (e$t *ith the Ban( alon *ith the !ill of
entryI Certified &n%oice.
Tri$licate &M; is (e$t *ith the Ban( for office record.
Tuadru$licate is (e$t for su!mission to Banladesh Ban( in
case of im$orts *here documents are retired.
-M;'9T LIC0
The other ty$e of LIC facility offered !y BA is -)$ort LIC. Banladesh
e)$orts a lare 5uantity of oods and ser%ices to forein households.
9eadymade te)tile arments 7!oth (nitted and *o%en8" >ute" >ute#
made $roducts" fro6en shrim$s" tea are the main oods that
Banladeshi e)$orters e)$orts to forein countries. :arments sector is
the larest sector that e)$orts the lion share of the countryJs e)$ort.
Banladesh e)$orts most of its readymade arment $roducts to U.S.A
and -uro$ean Community 7-C8 countries. Banladesh e)$orts a!out
C0K of its readymade arment $roducts to U.S.A. Most of the
e)$orters *ho e)$ort throuh BA are readymade arment e)$orters.
They o$en e)$ort LICs here to e)$ort their oods" *hich they o$en
aainst the im$ort LICs o$ened !y their forein im$orters.
F'9MAL&T&-S F'9 -M;'9T LIC0
The e)$ort trade of the country is reulated !y the &m$orts and -)$orts
7control8 Act" 19E0. There are a num!er of formalities" *hich an
e)$orter has to fulfil !efore and after shi$ment of oods. These
formalities or $rocedures are enumerated as follo*s"

1. -9C0 The e)$orts from Banladesh are su!/ect to e)$ort trade
control e)ercised !y the Ministry 'f Commerce throuh Chief
Controller of &m$orts and -)$orts 7CC&-8. ,o e)$orter is allo*ed to
e)$ort any commodity $ermissi!le for e)$ort from Banladesh
unless he is reistered *ith CC& ? - and holds %alid -)$ort
#2
9eistration Certificate 7-9C8. The -9C is to !e rene*ed e%ery year.
The -9C num!er is to !e incor$orated on -M; forms and other
documents connected *ith e)$orts.
'!tainin -M;0 After ha%in the reistration" the e)$orter
a$$lies to BA *ith the trade license" -9C" and the Certificate
from the concerned :o%ernment 'rani6ation to et -M;. &f
the !an( is satisfied" an -M; is issued to the e)$orter.
B. Securin the 'rder0 U$on reistration" the e)$orter may $roceed
to secure the e)$ort order. Contractin the !uyers directly throuh
corres$ondence can do this.
1. Sinin of the Contract0 Ghile ma(in a contract" the follo*in
$oints are to !e mentioned"
Descri$tion of the oods
Tuantity of the commodity
;rice of the commodity
Shi$ment
&nsurance and mar(s
&ns$ection
Ar!itration
The follo*in $oints are to !e loo(ed for"
i8 The terms of the LIC are in conformity *ith
those of the contract.
ii8 The LIC is an irre%oca!le one" $refera!ly
confirmed !y the ad%isin !an(.
iii8 The LIC allo*s sufficient time for shi$ment and
a reasona!le time for reistration.
#3
i%8 &f the e)$orter *ants the LIC to !e transfera!le"
di%isi!le and ad%isa!le" he should ensure those
sti$ulations are s$ecially mentioned in the LIC.
C. ;rocurin the Materials0 After ma(in the deal and on
ha%in the LIC o$ened in his fa%or" the ne)t ste$ for the
e)$orter is to set a!out the tas( of $rocurin or manufacturin
the contracted merchandise.
E. 9eistration of Sale0 This is needed *hen the items
$ro$osed to !e e)$orted are ra* /ute and /ute oods.
3. Shi$ment of :oods0 The follo*in are the documents
normally in%ol%ed at the stae of shi$ment"
-M; Form
;hotoco$y of reistration certificate
;hotoco$y of the contract
;hotoco$y of the LIC
Customs co$y of -9F Form for shi$ment of /ute oods
and -;C Form for ra* /ute.
Freiht certificate from the !an( in case of $ayment
of the freiht at the $ort of ladin is in%ol%ed.
9ail*ay recei$t" Ber 9ecei$t or Truc( 9ecei$t.
Shi$$in instructions.
&nsurance $olicy.
After those" e)$orter su!mits all these documents alon *ith a Letter of
&ndemnity to BA for neotiation. An officer scrutini6es all the
documents. &f the document is a clean one" BA $urchases the
documents on the !asis of !an(er# customer relationshi$. This is (no*n
as Forein Documentary Bill ;urchase 7FDB;8.
#
;9'C-DU9- F'9 FDB;0
After $urchasin the documents" BA i%es the follo*in entries" #
FDB; AIC De!it
Customer AIC Credit
7Before reali6ation of $roceeds8
<ead 'ffice AIC De!it
FDB; AIC Credit
7Ad/ustment after reali6ation of $roceeds8
A FDB; 9eister is maintained for recordin all the $articulars. The
salient contents of a FDB; reister are Date" 9ef. ,o. 7FDB;8" ,ame of
the ;arty 7Dra*er8" Dra*ee" ,ame of collectin Ban(" -M; Form no."
-)$ort LIC no." and etc.
F'9-&:, D'CUM-,TA9D B&LLS F'9 C'LL-CT&',0
BA for*ards the documents for collection due to the follo*in reasons"
i8 &f the documents ha%e discre$ancies.
ii8 &f the e)$orter is a ne* client.
iii8 The !an(er is in dou!t.
Forein documentary !ills for collection sinify that the e)$orter *ill
recei%e $ayment only *hen the issuin !an( i%es $ayment. The
e)$orter su!mits du$licate -M; Form and Commercial &n%oice.
Su!se5uently" the %alue of the !ill is calculated and the follo*in
accountin entries are i%en"
<ead 'ffice AIC De!it W T.T. Clean
ClientFs AIC Credit W 'ID siht
:o%ernment Ta) AIC Credit W 0.BEK of
&n%oice %alue
#!
;ostae AIC Credit
&ncome AIC $rofit on -)chane Credit
After $assin the a!o%e %ouchers" an &nter Branch -)chane Tradin
De!it Ad%ice is sent for de!itin the ,'ST9' account. BA has 11
,'ST9' accounts *ith its reim!ursin !an(. An FDBC 9eister is
maintained" *here first entry is i%en *hen the documents are
for*arded to the issuin !an( for collection and the second one is done
after reali6ation of the $roceeds.
-M;'9T B&LL SC9UT&,D S<--T0
By the -)$ort Bill Scrutiny Sheet the !an(er scrutini6e the details of a
LIC !efore ma(e the $ayment. <ere the details refer as -)$orterJs
name" ;resentation date of documents" LIC no." -)$iry date" LIC
amount a%aila!le. Moreo%er the !an(er also loo( after the date *ithin
*hich the documents to !e $resented" Bill of ladin" Shi$ment date in
the LIC" &n%oice num!er and date" -)$ort LIC no" date" issued !y"
Lia!ility $osition" Discre$ancies" and Calculation of Bill amount
7-)$orterJs 9etention Tuota" Commission" and Marin8.
S-TTL-M-,T 'F L'CAL B&LL0
The settlement of local !ills is done in the follo*in *ays"
1. The customer su!mits the LIC to BA alon *ith the documents to
neotiate.
B. BA official scrutini6es the documents to ensure the conformity
*ith the terms and conditions.
1. The documents are then for*arded to the LIC o$enin !an(.
C. The LIC issuin !an( i%es the acce$tance and for*ards an
acce$tance letter.
E. ;ayment is i%en to the customer on either !y collection !asis or
!y $urchasin the document.
#"

ACC'U,T&,: T9-ATM-,T F'9 ;U9C<AS- 'F L'CAL B&LL0
Local Bill ;urchase Documentary De!it
;arty AIC Credit
Commission Credit
&nterest AIC Credit
A LB;D 9eister is maintained to record the acce$tance of the issuin
!an(. Until the acce$tance is o!tained" the record is (e$t in a collection
reister.
M'D- 'F ;ADM-,T 'F -M;'9T B&LLS U,D-9 LIC0
The most common methods of $ayment under a LIC are as follo*s" #
1. Siht ;ayment Credit0 &n a Siht ;ayment Credit" the !an( $ays
the sti$ulated sum immediately aainst the e)$orterFs $resentation
of the documents.
B. ,eotiation Credit0 &n ,eotiation credit" the e)$orter has to
$resent a !ill of e)chane $aya!le to himself in addition to other
documents" that the !an( neotiates.
1. Deferred ;ayment Credit0 &n deferred $ayment" the !an( arees
to $ay on a s$ecified future date or e%ent" after $resentation of the
e)$ort documents. ,o Bill of -)chane is in%ol%ed. &n BA" $ayment
is i%en to the $arty at the rate of D.A 30#90#1B0#1H0 as the case
may !e. But the <ead office is $aid at T.T. clean rate. The difference
!et*een the t*o rates is the e)chane tradin for the !ranch.
#7
C. Acce$tance Credit0 &n acce$tance credit" the e)$orter $resents a
!ill of e)chane $aya!le to him and dra*n at the areed tenor 7that
is" on a s$ecified future date or e%ent8 on the !an( that is to acce$t
it. The !an( sins its acce$tance on the !ill and returns it to the
e)$orter. The e)$orter can then re$resent it for $ayment on
maturity. Alternati%ely he can discount it in order to o!tain
immediate $ayment.
AD=&S&,: LIC0
Ghen e)$ort LIC is transmitted to the !an( for ad%isin" the !an(
sends an Ad%isin Letter to the !eneficiary de$ictin that LIC has !een
issued.
T-ST 4-D A99A,:-M-,T0
Test (ey arranement is a secret code maintained !y the !an(s for the
authentication for their tele) messaes. &t is a systematic $rocedure !y
*hich a test num!er is i%en and the $erson to *hom this num!er is
i%en can easily authenticate the same test num!er !y maintainin that
same $rocedure. BA has test (ey arranements *ith so many !an(s for
the authentication of LIC messaes and for the transfer of funds.
&,LA,D L-TT-9 'F C9-D&T 7&LC80
&LC means LIC *ithin the same country. This ty$e of LICs are o$ened
*hen the seller does not !elie%e the !uyer thouh they are of the same
country and also in the cases *here the sales contract is of a !i
amount.
##
Cu&tomer Re#!tio' M!'!,eme't
#9
Cu&tomer Ser+i"e Dep!rtme't9
Customer Ser%ice De$artment is %ery essential $art of !an(in
acti%ities to render %arious ser%ices to the clients. The de$artment
hel$s the !an( to $erform its !an(in acti%ities in systematically and
efficiently. The o$erations of the !an( are clearly distri!uted amon the
de$artment in order to a%oid the ha$ha6ard situation. Since !an( is a
ser%ice oriented financial orani6ation" e%ery de$artment of !an( $lays
an im$ortant role in renderin !an(in ser%ice to the clients.
C*STOMER SER/ICES9
Customer ser%ices" commonly a!!re%iated CS" is a !usiness term *hich
is used to ca$ture the idea of measurin ho* satisfied an enter$riseFs
customers are *ith the orani6ationFs efforts in a mar(et$lace. &t is
seen as a (ey !usiness $erformance indicator and is $art of the four
$ers$ecti%es of a Balanced Scorecard.
9$
-%ery orani6ation has customers of some (ind. The orani6ation
$ro%ides $roducts of some (ind to its customers throuh the
mechanism of a mar(et$lace. The $roducts the orani6ation $ro%ides
are su!/ect to com$etition *hether !y similar $roducts or !y
su!stitution $roducts.
REASONS TO MONITOR C*STOMER SER/ICES9
The reason an orani6ation is interested in the satisfaction of its
customers is !ecause customers $urchase the orani6ationFs $roducts.
The orani6ation is interested in retainin its e)istin customers and
increasin the num!er of its customers.
MEAS*RING C*STOMER SER/ICES
Customer ser%ices are an am!iuous and a!stract conce$t and the
actual manifestation of the state of satisfaction *ill %ary from $erson to
$erson and $roductIser%ice to $roductIser%ice. The state of satisfaction
de$ends on a num!er of !oth $sycholoical and $hysical %aria!les
*hich correlate *ith satisfaction !eha%iors such as return and
91
recommend rate. The le%el of satisfaction can also %ary de$endin on
other o$tions the customer may ha%e and other $roducts aainst *hich
the customer can com$are the orani6ationFs $roducts.
C*STOMER SER/ICE IN BANKING SECTOR9
The idea of Customer Ser%ices is that it hel$s !usinesses use
technoloy and human resources ain insiht into the !eha%ior of
customers and the %alue of those customers. &f it *or(s as ho$ed" a
!usiness can $ro%ide !etter customer ser%ice" ma(e call centers more
efficient" cross sell $roducts more effecti%ely" hel$ sales staff close
deals faster" sim$lify mar(etin and sales $rocesses" disco%er ne*
customers" and increase customer re%enues. &t doesnFt ha$$en !y
sim$ly !uyin soft*are and installin it. For Customer Ser%ice to !e
truly effecti%e an orani6ation must first decide *hat (ind of customer
information it is loo(in for and it must decide *hat it intends to do
*ith that information. The orani6ation must loo( into all of the
different *ays information a!out customers comes into a !usiness"
*here and ho* this data is stored and ho* it is currently used.
92
C*STOMER SER/ICE DE/ELOPMENT9
To !e $re$ared to the chanin economic conditions and in $articular to
a ra$idly decreasin inflation rate scenario a Ban( has started timely to
focus on de%elo$in a customer Satisfaction system. Durin the
$ro/ects a num!er of crucial technoloical and architecture choices ha%e
!een made to im$lement the entire $rocess. 9eali6in the im$ortance
of customer information a%aila!ility the first of these $ro/ects has
focused on the $ro!lem of routinely collectin and cleansin data. The
$ro/ect has !een underta(en !y the !an( *ith the s$irit that has
characteri6ed the *hole C9M de%elo$ment.
93
IMPLICATIONS AND STRETEG0
9
=43 Prob#em&
The res$ecti%e officer cannot chane hisI her des( *illinly so
there is lac( of (no*lede a!out other des(.
There is no trainin acti%ities for the /unior officers" *hich *ill
hectic them.
There is no customer com$lain des( for this reason it is sometime
occur as a irritate mater.
There is no ATM Credit Card system" *hich *ill reduce the
$ressure.
Thouh &slami Ban( is an &nterest free Ban(@ it has to ad/ust *ith
traditional Ban(.
9!
=45 RECOMMENDATION
At first the !ranch should start online !an(in system effecti%ely.
&n todayFs first *orld it is e)$ected that e%ery !an(in acti%ity
should !e done throuh online !asis $rom$tly. As customers are
al*ays !usy" they e)$ect to et instant ser%ice. &n order to
sustain customer satisfaction " the !an( should start that 7'nline
Ban(in8 as early as $ossi!le.
To sustain its com$etiti%e $osition in the modern !an(in system"
the !ranch should offer lucrati%e schemes to its customers. The
!an( doesnFt $ro%ide Tem$orary '%erdraft 7T'D8 usually. 'nly
some %ery trust*orthy and s$ecial clients en/oy this facility !ut it
is restricted for eneral. The !an( should continue the system
T'D" !ut !efore issuin this ty$e of loan they should /ustify
*hether the $arty is a!le to re$ay the loan timely.
,e* financial $roduct facilities such as credit card" $ersonal loan"
etc. should !e introduced in order to retain and attract customers
to*ards the !an(..
9"
',- should focus on Small Scale &ndustries in case of lendin as
in this sector the reco%ery rate is hih. From the 9eco%ery Ta!le
it is o!ser%ed in e%ery year the outstandin fiure of SS& is hiher
than the MS&. <ence" *e can ad%ise that the !an( should lent SS&
$ro$erly so it can al*ays maintain its stron $osition
The dis!ursement time of loan should !e reduced to attract more
customers. As the !an( ta(es more times to dis!urse loan" some
of its %alued customers ma(e com$laints *hich may ham$er the
!an(Fs re$utation. &n order to retain its ood re$utation the
dis!ursement time of loan should !e minimi6ed.
The !an( should monitor the !eha%ior of the clients. The clients
al*ays e)$ect to et instant ser%ice. But due to certain
distur!ance such as technoloical" a!sence of concerned officers
it may !e im$ossi!le to do that in due time. As a result"
sometimes the clients mis!eha%e and ma(e com$laints *hich
creates scene in the !ranch. &n this case" the first man should
o!ser%e the o%erall matter effecti%ely to satisfy the clients as *ell
as the concerned officers.
The em$loyees should !e rotated at different des( at least after
three years. The concerned officers are only res$onsi!le to their
res$ecti%e des(. Most of the officers are inca$a!le to do the tas(
of %arious des(s *ithout their res$ecti%e tas(. Su$$ose" one if the
officers of the loan section is a!sent due to certain $ro!lem. This
97
section is al*ays !usy as the customers re5uire lendin ser%ice
instantly. &n this case if the officers of another section donFt hel$
the officers of the said section" they face certain $ro!lem. <ence"
the another sectionFs officers should ha%e ade5uate (no*lede
a!out the tas( of %arious des(s.
The !an( should focus more attention on mar(etin of its
$roducts. Lendin $olicy should !e li!erali6ed and loan reco%ery
must !e ensured. Cash Credit 7;lede8 is ris(y system. So the
!an( should follo* the system of Cash Credit 7<y$othecation8.
Finally the !an( should underta(e some $romotional acti%ities in
order to sur%i%e $ro$erly. ;romotional acti%ities such as ATM
ser%ice" &nternet Ban(in *hich are the most im$ortant for a
!an( to com$ete effecti%ely must !e launched *ithout delay.
9#
=47 CONCL*SION
Ban(in is a %ast field and my internshi$ of t*o months at ',- BA,4
L&M&T-D $ro%ides me an o$$ortunity to et ac5uaintance *ith standard
!an(in o$eration es$ecially in loan and ad%ance ? forein e)chane
de$artments.
',- BA,4 L&M&T-D is uni5ue in terms of constitution" its mandate" its
o!/ecti%es and modus o$erandi. Throuh this the !an( has" in the
meantime" found its o*n s$ecial $osition in the sector at a hiher ran(.
',- BA,4 L&M&T-D is e)$ected to continue maintainin stron
com$etiti%e ede in !an(in sector in Banladesh in the years ahead.
Throuh its s$eciali6ation and interated a$$roach" the !an( aims to
!uild a stron $osition in the industrial de%elo$ment of Banladesh. The
!an( also $lans to maintain its focus on manain ca$ital and costs to
ma)imi6e shareholdersJ %alue. &n this en%ironment" the !an( e)$ects to
ma(e further ains in re%enue" income and return on ca$ital.
9ecently the !an(Fs $erformance in different arena of !an(in stronly
testifies that ',- Ban( is one of the soundest !an(s o$eratin in the
country. ',- Ban( is a trendsetter in !an(in industry. Continuous
im$ro%ement in different sement *ith a $roacti%e attitude can ma(e a
difference in the !an(in !usiness.
-%eryday !an(in !usiness is facin com$etition. To sur%i%e at this
com$etiti%e mar(et ',- Ban( is redefinin the traditional !an(in
conce$ts and transformin it into relationshi$ !an(in. &t al*ays
considers its !orro*ers as clients. Sustaina!ility in !etter $erformance
is the $rime focus in ',- Ban(.
99
BIBLIOGRAPH0
Annual 9e$orts of ',- BA,4 L&M&T-D" B009.
Monthly ;roress 9e$ort of ',- BA,4 L&M&T-D" >u!ilee 9oad
Branch B009.
;ros$ectus of ',- BA,4 L&M&T-D" >u!ilee 9oad Branch.
Business Statistics" S ; :U;TA. M ; :U;TA.
;a$er of ',- Ban( Trainin &nstitute.
&nternational Trade Finance >ournal#Banladesh &nstitute of Ban(
Manaement.
***.',-!an(limited.com
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THE REPORT ON GENERAL BANKING, CREDIT, FOREIGN TRADE

IN ONE BANK LIMITED

Senior =ice ;resident

Asstt. =ice ;resident

Senior ;rinci$al 'fficer

843I'trodu"e i' Ge'er!# B!'1i',

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