University of Dhaka

Department of MIS

Internship Report
On

FORIGEN EXCHANGE DEPARTMENT OF

PRIME BANK LTD.

Submitted by:
MD. ROBAL SHARIF
ID: 04-037
Department of MIS

Submitted to:
MD. RAKIBUL HOQUE
Assistant Professor,
Department of MIS

Date of Submission: March 02, 2013

1|Page

LETTER OF SUBMISSION

March 9, 2013
Md. Rakibul Hoque
Assistant Professor,

Department of MIS
University of Dhaka
Subject: Submission of Internship Report of Prime Bank Limited.
Dear Sir,
It is my pleasure to submit my Internship Report on Foreign Exchange Department
Of Prime Bank Ltd. as a requirement of Internship course. I tried my best to gather
relevant information for constructing a complete report as outlined. The preparations
of this report enable me to a great extent to complete my theoretical knowledge with
practical analysis. I would like to express my profound gratitude for your kind and
conscious guidance in preparing my report in the giving time.
Thank you very much for your heartiest co-operation.

Yours sincerely,

(Md. Robal Sharif)

BBA 15thBatch,
ID NO-04-037,
Department of MIS,
University of Dhaka

2|Page

ACKNOWLEDEGEMENT
First of all I would like to express my gratitude to omnipotent and almighty Allah,
whose invisible guidance helped me to complete this report. Although, time was very
limited for getting the sufficient knowledge about all of banking service, but the short
experience that I gathered as an internee, in Prime Bank Limited on Head Office an
asset for all the time to come in my life. I take the opportunity to express my deep
sense of gratitude of my reverend supervisor, Md. Rakibul Hoque(Assistant
Professor, Department of MIS, University of Dhaka) for his invaluable suggestions
and guidance during the study period that has greatly inspired me in preparing this
report successfully.
I am highly thankful to all of the employees of Prime Bank Limited, Head Office for
their support that helped me to prepare this report. All of them are very frank and
helpful exception. I couldnt think a single moment that I am a student of internee in
that bank they help me as his employee. Besides I have special appreciation towards
following resource person for helping me:
Md. Abdul Quddus , Vice President.
All members of CFRC Department.

Finally, I want to express my deep gratitude to my parents and other family members
and also remember my friends whose enormous helps assist me to complete my
report.

3|Page

Declaration
I, the undersigned, author of this report, do hereby solemnly declare that the work
presented in this internship report is an original work done by me under the
supervision of Asish Talukder, Assistant Professor, Department of Management
Information Systems, Faculty of Business Studies, University of Dhaka.
No

part

of

this

has

been

previously

submitted

to

any

other

university/college/organization/for any academic certificate/degree/diploma.

The work I have presented does not breach any existing copyright, no portion of this
report is copyrighted and no portion of this report is copied from any work done
earlier for a degree or otherwise.
I further undertake to indemnify the department against any loss or damage arising
from breach of the foregoing obligation.

_________________________
Md. Robal Sharif
Id: 04-037
4th batch
Department of Management information Systems
University of Dhaka

4|Page

Certificate

This is to certify that the Project Report on Central Foreign Remittance Center
(CFRC) on Prime Bank Limited has been submitted for the award of the degree of
Bachelor of Business Administration (BBA), is a record of bona fide research carried
out by Md. Robal Sharif, ID No.04-037, BBA 15th batch, MIS 4th batch under my
supervision. I have gone through the report and found it to be a well-written report.
No part of the Project Report has been submitted for any degree, diploma, title or
recognition before. He has completed the report by himself. I wish him very success
in every step of life.
He is permitted to submit the Project Report.

_________________________
MD. RAKIBUL HOQUE
Assistant Professor
Department of Management Information Systems (MIS)
Faculty of Business Studies
University of Dhaka

5|Page

EXECUTIVE SUMMARY
Banks and other financial institutions play a vital role in forecasting the economic and
social condition of a country. Banks in Bangladesh now constitutes the core of the
countrys organized financial system. Prime Bank Limited which is a renowned bank
in Bangladesh was created and commencement of business started on 17th April
1995. This bank plays a significant impact on the growth of the economy of this
country.
Foreign Remittance is one very important for the reflections of the succession toward
progress and expansion for any service institution. Excellence Foreign Remittance
helps an organization to build a good position in the market and retain more
customers. PBL Head Office has a department which is conducted various types of
inward remittance and foreign remittance services.
General banking department provides service to the customers by doing the
elementary tasks of the bank. These elementary tasks include account opening,
providing master credit card, internet banking, offering different types of schemes to
the customers, different types of bills and fees collection etc. Foreign Exchange
department also play vital role by providing service to the customers. This department
has three sections. These are: Export section, Import section and Foreign Remittance
section. All these three sections Foreign Exchange department provides services to its
customers. The role of the Banks in financing International Trade, especially in Letter
of credit operations is very crucial. Foreign Exchange Department deals with
international trade. It facilitates international trade through its various modes of
services like import, export and remittance. It bridges between importers and
exporters. To expand the range of foreign exchange business and to reduce the risk,
the branch can think about being diversified in their foreign exchange business. No
matter whatever the challenges are in the area of Foreign Trade, Prime Bank Ltd. is
fully equipped to face any obstacle. For the last five years they have hold the number
one position in the Bangladesh Banks CAMELs rating and hopes to be on top this
year as well. Credit Department of PBL serves customers by providing them different
types of credit facilities according to customers need. PBL do their best to remain
spirited and also they are committed to continuously reviewing both their lending
policies and rates to ensure that customers get the best deals from the bank. They
mainly offered two types of loans for serving their customers. These are: Business
Loan & Personal/ Retail Loan.
Prime Bank Limited is operating efficiently with its existing products and services. It
has remained profitable from the beginning of its operation in the commercial banking
sector. In service-oriented industry, it is very difficult to set a standard rule to satisfy
the customer. Several factors shape up the decision of taking the service from an
organization. The services which the Bank provides to their clients are very prompt
and quality one compare to other private or foreign banks. The bank made satisfactory
progress in all areas of business operation. So Prime Bank is the bank, which will go
on in the banking sector of the world with their slogan "A Bank with a difference".

6|Page

TABLE OF CONTENTS
Serial No.

Particulars
Abstract
CHAPTER: 01 INTRODUCTION

1. 1
1.2
1.3
1.4
1.5
2.1
2.2
2.3
2.4
2.6

Rational of the Study

Objective of the Study
Methodology of Research
Organization of the Report
Limitation of the Study
CHAPTER: 02 COMPANY PROFILE
Background of the Prime Bank Limited
Principle Activities of the Bank
Management Hierarchy
Network of the Bank
SWOT Analysis
CHAPTER: 03 Literature Review

3.1

Literature Review

CHAPTER: 04 FINDINGS OF THE STUDY

Page
No.
1
6-11
7
8
9-11
13-24
14
14-20
21
22
28
30-31
31
32-48

4.1

Findings in Different Situations

CHAPTER: 05 SUMMARY, CONCLUSION AND
RECOMMENDATION

32-48
49-51

5.1
5.2
5.3

Summary of the Study

Recommendations
Conclusion
CHAPTER: 06 BIBLIOGRAPHY AND APPENDIX

50
50-51
51
52-62

6.1
6.1.1
6.1.2
6.2
6.2.1

Bibliography
Books and Publications
Websites
Appendix
Ratio Analysis Information of Prime Bank Limited

53
53
53
64-62
54

6.2.1.1
6.2.1.2
6.2.1.3
6.2.1.4
6.2.1.5
6.2.1.6

Performance at a Glance (Prime Bank Limited)

Statement of Comprehensive Income (Prime Bank Limited)
Statement of Cash Flow (Prime Bank Limited)
Statement of Financial Position (Prime Bank Limited)
Financial Highlights (Prime Bank Limited)
Graphical Presentation (Prime Bank Limited)

54
55
56
57
58-59
60-62

7|Page

ABSTRACT
This report is an outcome of the internship program under the BBA program requirement in
the Prime Bank Limited. During my internship in the organization I have gathered different
information which was necessary for preparing this report.
This report is written on the CFRC (Central Foreign Remittance Center) on Prime
Bank Limited.
In chapter 1, I have introduced the topic, along with the objective of the report, which was
mainly understand how to gain real life exposure in the banking sector and to get a clear
idea about Borrowers Perception. I have also mentioned the method followed to gather the
information and the sources of data.
The company profile is stated in the chapter 2. It includes the background of the bank, with
principle activities, management and branchs hierarchy, branch network, ratio analysis of
the Prime Bank Limited and their competitors AB Bank Limited, SWOT analysis and Loan
calculator of Prime Bank Limited.
Chapter 3 starts with findings in different situations about Foreign Remittance on Prime
Bank Limited. In this chapter all the survey questions are graphically presented.
Chapter 4 draws summary of this report. I have included my observation, some loop wholes
and Prime Bank and the effects of these. Then I have tried to draw out some solution to
those problems and some recommendation.
Finally chapter 5 has the tables and graphs and other information in the appendix that might
be needed for the better understanding of the report.
A borrower is a person or institution who has been approved to receive a loan and is then
obligated to repay it and any additional fees according to the loan terms. Foreign
Remittance is so much important for any bank because if they know the perception level of
their borrowers then they can do all the loan able works easily. Thats why in this report I
have tried to explain and highlight this issue precisely.

8|Page

INTRODON

CHAPTER 01:
INTRODUCTION

Learning Objectives:
1. Rational of the Study
2. Objective of the Study
3. Methodology of Research
4. Organization of the Report
5. Limitation of the Study

9|Page

1.1

Rational of the study

Remittance flows to Bangladesh have grown rapidly over the last ten years. A total of
some seven million Bangladeshis are estimated to be resident overseas. While initially
most of the migrant labor went to the Middle East, mainly to Saudi Arabia, there has
been considerable diversification of destination countries in more recent years. Today,
migrants are found in significant concentration all over the Far East and Europe,
including Malaysia, South Korea and Japan and in Germany and Italy. Other
traditional destinations (USA and UK) also remain very important both as a source of
remittance and a favored destination. Remittances play a crucial role in the
Bangladesh economy today. At the macro level, it has helped to ease our foreign
exchange constraint, stabilizing the exchange rate and allowing Bangladesh to import
much needed raw materials, intermediate goods and capital equipment. At the micro
level, remittances have had a beneficial impact on household consumption, reducing
poverty and creating jobs. Returned migrants have also brought with them new ideas
and knowledge, along with seed capital, often making a significant contribution to the
local economy.
There is a great impact of remittance in our GDP. It plays a crucial role in our
economy. Our economy is not too large and it is mostly depend on the remittance. The
value of dollar rate in Bangladesh is depending on the remittance flow and reserve
ratio. A very large number of Bangladeshi residences have migrated to abroad, they
send money or foreign currency that needed to international business transaction like
import of necessary things. Remittance also plays a vital role in the local investment.
Remittance basically comes by the Bank and by this bank can give loan to the
investors and government as well as.
As remittance receivers often have a higher propensity to own a bank account,
remittances promote access to financial services for the sender and recipient, an
essential aspect of leveraging remittances to promote economic development.
The stability of remittance flows despite financial crises and economic downturns
make them a reliable financial resource for developing countries. As migrant
remittances are sent cumulatively over the years and not only by new migrants,
remittances are able to be persistent over time. At the state level, countries with
diversified migration destinations are likely to have more sustainable remittance
flows. From a macroeconomic perspective, remittances can boost aggregate demand
and thereby GDP as well as spur economic growth. However, some research indicates
that remittances may also have adverse macroeconomic impacts by increasing income
inequality and reducing labor supply among recipients.
The remittance plays an important role in the reducing of poverty level and rate.
Many of the people of Bangladesh dont know the actual process of remittance as well
as importance. Again the remittance process of Bangladesh is not so fast, it is so
critical and some where risky. Remittance processes of different banks are also
different. People should know the process of remittance as well as importance.

10 | P a g e

1.2 Objective of the study:

Broad Objective
To know the standard processing procedure of remittance in Prime Bank and
the steps of flowing remittance remitter to beneficiary.
Specific Objective
Specific objectives of the research are given below:
To know:
Current remittance issue in Bangladesh
The remittance inflow of Bangladesh
Percentage of remittance coming from different countries.
The Bangladesh Banks steps to increase the remittance flow.
Private Banks step especially prime banks steps to raise remittance inflow.
How the Banks are dealing the remittance.

1.3 Methodology of Research:

The nature of this report is descriptive, so instead of doing any survey or using sampling
method, observation method is used to complete this qualitative research. Most of the
necessary information has been collected by face to face interview.

Sources of Data:
The report is based on both primary and secondary data sources. Interviewing the managers
and officers of the bank, talking to the customers has provided the primary data.
Furthermore, different publications of the bank, annual reports, and the bank website were
the secondary sources of data.

Primary Sources:

11 | P a g e

The primary data had been collected from various sources. The different sources
were:
Distribute questionnaire among selected customer to receive feedback.
Face to face conversation with the employees.
By personal interviewing and interacting customers at Prime Bank Limited.
Observing various organizational procedures.
Secondary Sources:
From prior research report.
From different books and periodicals related to the banking sector.
From internet.
Annual report of Prime Bank Ltd.
Published Booklet of Prime Bank Ltd.
Various published documents.

Data Collecting Technique:

Fort the purpose of the study two methods of techniques used:
Observation
Interview
Observation:
Observation method is often used to complete this qualitative research because it is very
difficult to provide any specific example from any file about certain document, as the
matter is very sensitive for the client as well as for the bank.
Interview:
Primarily some data are collected from face-to-face interview of different employees of
Prime Bank Limited at Head Office. By phone to phone conversation with the
Remitters and by personal interviewing it is easy to collect the accurate
information for the study. For the purpose of this interview, customers were asked
to fill up a questionnaire. Based on their answer, it is easy to justify the Foreign
Remittance on Prime Bank Limited.

12 | P a g e

1.5 Limitation of the study:

In course of my internship I faced a number of problems that may be termed as the
limitations of the study. These were:
1. I could not spend sufficient time required to make an in-depth study on such
an important subject because of time constraint.
2. It was very difficult to get the actual information. In many cases, the necessary
information of remittance processes in Bangladesh are not available in the
Bank web sites.
3. Sufficient records, publications were not available. The constraints narrowed
the scope of real analysis.
4. Deficiencies in data required for the study.
5. Consolidated data related to the study were not available for the current year.
So the most of the information is used from the previous years.
6. Inaccurate or Contradictory information created huge confusion during
preparation of this study.
7. Many of the people even Bank personals dont know about remittance well.
8. Internal and web-based server are very slow. Fully depends on IT department.
9. Computers and others official machine have low configuration, so sometimes
employees are not enjoying their work.

This study covers the details of Prime Banks practices about remittance activities.
This study consists the observations and on the job experiences during the internship
period in the Centralized Foreign Remittance Cell (CFRC) Department at Prime Bank
Ltd, Head office, Motijheel.
This study also emphasizes on the sequential activities involved and used by Prime
Bank Ltd for remittance transaction. The study also focuses on the impact of the
remittance activities upon the client.

13 | P a g e

1.4 Scope of the Study:

The scope of this report is limited to the overall description of the
Bank/Organization (Only Dhaka Branches Banks), its services and its position in
the industry and its marketing strategies. The scope of the study is limited to
organizational setup, functions and performances.

14 | P a g e

INTRODUCTIO
N

CHAPTER 02: COMPANY

PROFILE

Learning Objectives:
1.
2.
3.
4.
5.
6.

Background of Prime Bank Limited

Principle activities of the Bank
Management Hierarchy
Network of the Bank
SWOT Analysis
Some Remittance Software of Prime Bank
Limited

15 | P a g e

2.1Background of Prime Bank Limited:

During the booming years of the banking industry of Bangladesh, a group of highly skilled
local entrepreneurs came up with an idea to float a commercial bank with a different
outlook. The idea was to build a banking organization with excellence, competence and
consistent delivery of reliable service with superior customer satisfaction. The outcome of
this thinking was the Prime Bank Limited, commenced its business on April 17, 1995.
Since the beginning the bank is being managed by a team of professionals, with dedication
and sincerity. Their experience and hard work has taken the bank in the leading position.
The bank is constantly focused towards the understanding and predicting customers needs
and meeting them. It is giving a tough competition to other banks in case of performance
and customer satisfactions.
The bank offers almost all sorts of commercial banking services within the framework of
Banking Company Act, and the rules and regulations lay down by the Bangladesh Bank.
These services include corporate Banking, Retail Banking, and Consumer Banking etc.
Within this short time the bank has already claimed a position among the top ranked banks
in our country through ensuring high profile management, experienced, dedicated and
skilled employees, and a whole lot of hard works. It has adopted the CAMEL rating,
BASEL II and all other international requirements. It is always responding to technological
enhancements and developments.
The introduction of ATM in March 2008 and Internet Banking in 2009 ushered a new era
and prime Bank is now wed poised towards the expansion of alternative delivery across
Bangladesh. Prime Bank is one of the most renowned names among the well performing
banks in the banking industry and it is continuously working hard to hold its position in the
market as the leader through providing top class services.

2.2Principle Activities of the Bank:

The principle activities of the bank are banking and related businesses. These activities
include: taking deposit, cash withdrawal, extending credit, organizing syndicate deals,
retail, small and medium enterprises, trade financing and project financing, lease and hire
purchase etc.
The followings can be stated principle activities of the bank:

16 | P a g e

1. Extending credit: Providing credit to the clients of the bank is one of the major
activities of the bank. Loans and credits are available under different heads, like:
commercial loan, loan syndication, retail loan, project finance etc.
2. Import & Export business: The bank is also efficient in import and export business.
The-growth rate of import business is 5% and growth in export business is 11%. The main
items of this business are: leather, readymade garments, shrimp, machineries, materials etc.
3.

Retail Banking: A bank like Prime Bank Limited that goes with superior brand

equity and a unique brand tag line a bank with a difference, putting supreme emphasis on
retail business has an untapped potential to generate value. This potential of retail banking
can be traced while thinking about the Lines of business in an innovative way. An effort by
retail banking to explore the untapped may help induce those, who wait to save money to
buy their desired life-style at a future time, to come and avail the retail banking services.
Retail banking can play a very significant role in this respect by expanding the principles of
opportunity cost, marginal or incremental and time value of money against the utility of the
desired house-holds. A consumer, buying a retail product through a retail focused branch
may have a small business by himself which may grow big over time and become a good
corporate customer or such a consumer who is happy with a banks services, may be
working in a corporate entity, may influence to take financial services from the bank. Thus
retail banking can enter deep into the heart of the consumers which is the essential in
building long term customer relationship.
4. Credit Card: Very stiff competition prevails in credit card market. Many players have
entered the market and competition is growing. Prime Bank Limited started credit card
operation in 1999 by introducing Master Card and is now a principal member of both
worldwide accepted plastic money network i.e. MasterCard and VISA thus positioned itself
with strong footing within the industry. It extends various services to the credit card
customers viz, issuance of supplementary card, free insurance coverage, longer interest
free period, etc
5. SME Financing: Despite growing focus about small and medium enterprises in
Bangladesh and consequent policy efforts in these directions, limited access to financing
still forms the crux of the problem of this sector. The overriding vision of PBL is to offer

17 | P a g e

congenial lending products and services so that SMEs can aspire to opportunities of growth
and wealth creation.
6. Financing women entrepreneurs under SME: Another notable idea in SME financing
is the development of women entrepreneurs. Bangladesh Bank has earmarked 10 percent of
SME related fund for women entrepreneurs. The bank has designed a separate product
Anchor for women entrepreneurs. In the new framework of SME, PBL is giving top
priority in developing and harnessing women entrepreneurs.
7. Islamic Banking: Prime Bank started its operations in the year 1995 as a bank with a
difference, blending its conventional banking system with that of Islamic Banking
operations based on Shariah principles. Five of the branches of the bank provide Islamic
Banking operations to serve the increasing demand of customers for Islamic Banking
products and services. Objectives of launching Islamic Banking Operations in Prime Bank
are as follows:

To cater to the needs of customers who want to have services in Islamic Modes;

To introduce the partnership concept of business operations;

To arrange for ensuring justice in distribution system use of funds;

To do other acts ancillary to the establishment of exploitation free society.

8. Merchant Banking: Merchant Banking and Investment Division (MB1D) passed

another very successful year since it started its journey four years ago. During 2009, the
countrys capital market witnessed many significant events ranging from breaking many
records to policy changes. And as our market matured, we were able to achieve significant
profit growth and also contribute to the development of the market. In 2009, as per the
boards advice, MBID concentrated on providing unparallel portfolio management services
to our customers. The number of customers went beyond 2,000 with a portfolio size of
around 1k. 11,000 million and the bank contributed to an average of 10 percent to 12
percent of daily Dhaka Stock Exchange (DSE) turnover. During the year through providing
portfolio management services and by realizing the gain from banks own investment
MBID made an operating profit of Tk. 920.30 million. We also successfully launched the
operation of MBID Mirpur Branch in August 2009 as Uttara and Sylhet Branch waits to
start operation very soon.

18 | P a g e

9. Deposits: Total deposits grew by Tk 155 million and stood at Tk 530 million as at December
2011 indicating a growth of 28.29 percent;

Source: Annual Report 2011 of Prime Bank Limited

Expansion of branches at rural areas has provided the lower income group an access to
modern banking system and prompt receipt of remittances. PBL is offering 18 types of
deposits products for the customers. These include:

19 | P a g e

 Contributory Savings Schemes (CSS): Under this scheme Minimum size of the
monthly installment is Tk.500.00 and multiples of Tk.1000.00. Maximum installment size
shall be 25000.00 for five year period. Lump sum amount shall be paid after maturity or
monthly pension shall be paid for the next 5 years according to size of deposit.
Lackhopati Deposit Scheme: Under this scheme size of the monthly installments
are Tk.250.00, Tk.500.0O, Tk1285.00, Tk.2400.0O depositor will receive Tk.1,00,000.00
after a number of period depending on installment size .Higher the installment size lower
will be the maturity period.
Prime Millionaire Scheme: This scheme is similar as Lackhopati deposit scheme
only the installment amounts is larger and at maturity depositor will get Tk.10 lac.
Education Savings Scheme (ESS): Under this scheme parents can save for their
childrens education by paying a certain amount of monthly installment and Lump sum
amount shall be paid after maturity.
Monthly Benefit Deposit Scheme (MBDS): Under this scheme customer can
deposit a fixed amount of money for five years .The amount has to be 100,000 or multiple
of 100,000 he / she will receive 900 per month as interest on every lac during those five
years.
Double Benefit Deposit Scheme (DBS): Under this scheme a customer can keep a
fixed amount of money for six year end of the maturity period the amount will become
double .The amount has to be multiple of 25000.
Fixed Deposit Receipt Scheme (FDR): Under this scheme customer can devote a
fixed amount of money for one month, three months, six months or twelve months for
interest rate of 7.5%, 11% or 11.5%.
Current Account: Current Account is a non interest bearing checkable deposit
(Demand Deposit) which allows the owner of the bank accounts to write checks to third
parties.
Savings account: Savings Account is an interest bearing checkable deposit

20 | P a g e

(Negotiable order of withdrawal) which allows the owner of the bank accounts to write
checks to third parties.

21 | P a g e

10. Customer Care: PBLs firm commitment to excellent customer service delivery has
resulted to remarkable progress in all areas of operation during 2009. PBL adopted various
payment and transaction products and services for smooth payments and transactions for
the customers. These include both traditional and modern products. The bank is now fully
online. Traditional products are used since inceptions and still dominate the lion share of
the payment and transaction of the country as the NCBs are still lagging behind modern
technology application. As such the traditional products remained main product for semi
urban and rural areas where PBL operates. With the liberalization of banking and financial
industry and increasing customer knowledge and sophistication competitive pricing of
products is no longer sufficient in capturing large market share. New product development,
know your customer program and redesign the existing products were the strategies
adopted by the bank to serve the customers differently from the competitors. The
continuous improvement in delivery of products and services, reduction of turnaround time
for loan processing, on-line deposits and remittance payment has made the key
differentiation for winning the customer satisfaction. The bank introduced ATM facilities
for the customers in 2008. There are also arrangements with another bank for sharing their
ATM booths which increased the coverage of the Bank over 600 ATMs located at different
areas of the country. The bank has introduced internet banking in 2009 and has planned to
add Debit card, SMS Banking and Kiosk to its products and services baskets.
11. Research & Development for customer Satisfaction: In this competitive business
environment, Research & Development (R&D) activities are thought to enrich the bank
with new and improved products, process and business avenues. In that pursuit, PBLs
R&D activities are focusing on three core areas: marketing, operation and business policies.
R&D has conducted number of market surveys and studies on business related issues which
have helped the management to take decisions more appropriately and provide services to
customers more efficiently. Some of the initiatives which have assisted the Management are
highlighted below:

Employee Attitude Study

Business Feasibility Study on Setting up Branch, SME Service Center, ATM.

Branch & SME Service Center Expansion Program 2010

22 | P a g e

 Product Development Study: Abash- a House Building

Loan product for construction of Semi-Pucca House

Project on Premium Banking

Review of Customer Service Campaign 2010

Guideline for Promoting Prime Bank Credit Card

Report on Commodity Markets on Eight Commodities (Monthly)

Publication of In Focus- A Monthly Newsletter of R&D Division (Monthly)

Concept Note on Ensuring Service Quality

Concept Note on Ensuring Service Quality

Mystery Shopping Survey on Call Centre.

12.
Offshore Banking: PBL is offering offshore banking facilities through
3 (three) Offshore Banking Units (OBU) located in Dhaka Export Processing Zone
(DEPZ), Chittagong Export Processing Zone (CEPZ) and Adamjee Export
Processing Zone (AEPZ). The fourth OBU will be opened in Karnafully EPZ in 2012.
The operation from total loans and advances of three OBUs reached to USD 42.40
million equivalent to Tk 3,470.37 million as on December 30, 2011 compared to USD
69.10 million equivalent to Tk 4,889.14 million as on December 30, 2010. During the
year 2011, OBUs have made operating profit of USD 1.57 million equivalent to Tk
119.50 million as against USD 1.41 million equivalent to Tk 98.52 million in 2010.

23 | P a g e

2.3 Management Hierarchy:

Source: Head office of Prime Bank Limited

24 | P a g e

2.4 Network of the Bank:

The first branch opened by Prime Bank is the Head Office in Motijheel, Dhaka. It was
opened at the time the bank started its business in April 17, 1995. From then Prime Bank
has continued its journey and emerged its network by opening branches in major districts of
our country. The total number of branches now is 97. Following chart shown (All the
branches are not here):

Source: Head Office of Prime Bank Limited

25 | P a g e

2.6 SWOT Analysis of Prime Bank Limited:

Every organization is composed of some internal strengths and weaknesses and also has
some external opportunities and threats in its whole life cycle. The following will briefly
introduce Prime Banks internal strengths and weaknesses, and external opportunities and
threats as I have explored in the three months (approx.).
Strengths:
Favorable reputation.
Provides its customers excellent and consistent quality in every service.
Quality service with relatively lower price.
Friendly interactive and informal working environment.

Weaknesses:
Pay structure have a big discrimination within officers and executives.
The employees are burdened with extra workloads and works late hours.
Pay order processing is not satisfactory.
Incoming Mail processing is slow.
Opportunities:
Can recruit experienced, efficient and knowledgeable work force as it offers
good working environment.
The Bank will provide ATM cards to all of its clients to avail 24 hour modern
banking facility.
More commercial branches.
The Bank has already introduced on line modern facilities to its customer.
Threats:
Upcoming private local banks.
Comparatively high salary margin.
Challenge of new entries.
Immerge of the multinational banks and their rapid expansion.

26 | P a g e

CHAPTER 03: LITERATYRE

REVIEW

3. Literature Review

27 | P a g e

3.1 Literature

Review

If wage earners remittances are invested in productive fields, they contribute to

output growth, and if they are consumed, then also they generate positive multiplier
effects (Stahl and Arnold 1986). Adelman and Taylor (1990) found that for every
dollar Mexico received from migrants working abroad, its GNP increased by $2.69 to
$3.17, depending on whether remittances were received by urban households. Inward
remittances are believed to have a positive impact on savings and investment.
Household surveys in Pakistan indicated that in the late 1980s and early 1990s, the
marginal propensity to save was higher (0.711) for income from international
remittances than from domestic urban-rural remittances (0.49) or (0.085) rental
income (Adams 2002 and 1998). Faini (2001) stated that remittances have a positive
effect on growth. Remittances are used in many countries to build schools and clinics
(see Martin, Martin, and weli 2002 and see also Orozco 2000). Workers remittance
outperformed the losses of agriculture production. Remittances augment incomes and
assist people to lift out poverty. Some studies found that workers remittances from
abroad may have had an equalizing effect on the distribution of income among
socioeconomic groups in Mexico (Taylor 1999; Adelman and Taylor 1990). Dilip
(2002) defines workers remittances as the sum of three components: (a) workers
remittances record under the heading current transfers in the current account of the
balance of payments ; (b) compensation of employees which includes wages, salaries,
and other benefits of border, seasonal, and other nonresident workers (such as local
staff of embassies) and which are recorded under the income subcategory of the
current account of the IMFs Balance of Payments Yearbook (item codes 2391, 2310
and 2431 respectively). In the year 2001, compensation of employees amounted to
$6.2 billion whereas workers remittances were just $122 million. In contrast, in India,
most remittances reported by authorized dealers are captured under workers
remittances (nearly $10 billion in 2001), and the compensation-of-employees figure
($126 million in 2000) is known to be underestimated. In Bangladesh, workers sent
foreign exchange is accounted for as Wage Earners remittances without making any
sub-classification. The above definition does not include transfers through informal
channels-such as hand-carries by friends or family members, or in- kind remittances
of jewelry, cloths, and other customer goods, or through hawala. These are believed to
be significant in many countries, ranging from 10 to 50 percent of total remittances,
but often are not recorded in the official statistics (Puri and Ritzema 2000; ElQorchi et al 2002). Similar accounting treatment has long been making in
Bangladesh for migrant workers remittances received. So, it is not clear to what
extent they reflect actual transfers. For example, remittances can be masked as capital
inflows to take advantage of tax and other incentives. In many countries, nonresident
deposits, although classified under the capital account, many in part reflect workers
remittances.

28 | P a g e

INTRODUCTIO
INTRODUCTIO
N
N

CHAPTER 04: FINDINGS OF

THE STUDY

4. Findings in Different Situations

29 | P a g e

3.1 Findings in Different Situations:

3.1.1 Foreign remittance:

PBL carried out inward foreign remittance business with satisfaction of both remitters
and beneficiaries during the year 2011. Introduction of remit-fast software, developed
by in-house IT Team, has substantially enhanced the capacity of Centralized Foreign
Remittance Cell (CFRC) to process remittance received from correspondents.
Implementation of Electronic Fund Transfer Network (EFTN), launched by
Bangladesh Bank during the year, was an important milestone. PBL continued its
effort to encourage and motivate both remitters and beneficiaries to use formal
banking channel for money transfer from abroad. PBL deputed officials in UAE to
maintain close contact with remitters. PBL participated in various fairs / campaigns at
home and abroad to create general awareness. PBLs major sources of remittance
were Saudi Arabia, Italy, Malaysia, Oman, Qatar, Singapore, UAE, UK, Canada and
U.S. During the year 2011, Bangladesh Bank approved the arrangement for
collecting remittance from NEC Money Transfer S.A., Spain. The Non-Resident
Bangladeshis (NRBs) routed remittance through networks of exchange companies
and banks. In 2011, the bank handled total Inward Foreign Remittance of Tk 36,890
million compared to Tk. 28,433 million in 2010 signifying a growth of 30 percent.
PBL has strengthened relationship with Western Union, the global money transfer
company. Arrangement with BURO Bangladesh and UDDIPAN, two reputed microfinance institutions, having networks in remote locations throughout the country, have
supplemented the banks own distribution channels providing beneficiaries the

30 | P a g e

3.1.2 Centralized Foreign Remittance Center

PBL has a modern, technologically equipped Centralized Foreign Remittance
Center (CFRC), which operates under International Division. Automated
processing of remittances has increased the efficiency of CFRC and reduced
the delivery time to its minimum. The Central Foreign Remittance Centre has
a dedicated team of 25 trained Officials and logistic support for the day to day
operation. These officials understand the intricacies of such transactions and
the speed with which they have to act on remittance instruction for delivery of
remittances to the beneficiaries. In order to ensure focused service to our
remittance partners, we have established the concept of relationship
management in our remittance operations.

31 | P a g e

3.1.2 Main Sources of Remittance to Bangladesh

The main sources of remittance of Bangladesh is migrant workers living in Kingdom
of Saudi Arabia (KSA), which contributed 31.2% in Fiscal Year (FY) 2010 and 28.2%
in Fiscal Year 2011. Besides, Bangladeshi migrant in USA contributed 15.9%, UK
7.6% and migrant workers in Kuwait contributed 9.2% in FY 2011. The following
figures can expose clearly the shares of major source countries in the remittance
receipts of FY2010 and FY2011.

32 | P a g e

33 | P a g e

3.1.3 Performance of CFRC for the Year 2012:

Highlights of performance
Received USD583.24 million foreign remittance through different exchange
companies
Growth of volume over the year 2011 : 19%
Handled 847432 numbers of remittance transactions.
Growth of numbers of transactions over the year 2011: 27%
Exchange gain earned for Tk. 142.12 million
Commission earned for Tk. 24.65 million
Opened total 3643 numbers of NRT account in different branches
Opened 1360 numbers of schemes in different branches of Prime Bank
Limited
Opened 885 numbers FDR with different Branches of Prime Bank Limited
Achievements:
Commenced remittance business with Trans-Fast Remittance LLC, USA
Commenced remittance business with GCC Exchange , UAE
Commenced remittance business with Al Fardan Exchange , UAE
Started distributing inward foreign remittance through using near 500
locations of BURO Bangladesh.
Introduced web based remittance software for Prime Exchange , Singapore

3.1.4 SWIFT:
SWIFT Stands for Society of World Wide Interbank Financial
Telecommunication. This is special format maintained round the world.
Through this facility party can communicate within few minutes with other
party staying any part of the world. Prime Bank Limited provides this facility
to the clients. The advising bank verifies the authenticity. Prime Bank has
corresponding relationship or arrangement throughout the world. Actually the
advising bank does not take any liability if otherwise not requested.
Prime Bank Limited is one of the first few Bangladeshi Banks who have
become member of SWIFT (Society for Worldwide Inter-bank Financial
Telecommunication) in 1999. SWIFT is members owned co-operative, which
provides a fast and accurate communication network for financial transactions
such as Letters of Credit, Fund transfer etc. By becoming a member of

34 | P a g e

SWIFT, the bank has opened up possibilities for uninterrupted connectivity

with over 5,700 user institutions in 150 countries around the world.
3.1.5 Foreign Remittance Management system of Prime Bank Ltd.
Prime Bank has established remittance arrangement with different exchange
companies/banks. Non Resident Bangladeshis living in different parts of the
world can send remittance to their beneficiary through our Bank by using the
above listed exchange companies. Prime Bank ensures fastest delivery of their
remitted funds as per the following schedule:
Prime Banks customer
:
Same
working
day
Prime Banks customer, if the beneficiaries
account with third banks located in the same
:
2 working
clearing zone
day
Beneficiaries account with third banks,
located at outside clearing zone/remote
:
3 working
location
day
Instant cash service is another means of receiving remittance with following
features:
Customers need not to have Bank account with us.
Payment is made in cash over banks counter against approved Photo ID i.e.
Passport/Driving License/Voter ID/ Credit Card of the beneficiary.

Region wise wage earners remittance statement (fig in USD million):

Sl. No
1
2
3
4
5
6
7
8
9
10
11
12

Region
Canada
USA
UK
Italy
KSA
Qatar
Singapore
Oman
UAE
Malaysia
WU
Others
Total

Vol. of
remittance
0.76
7.44
25.84
12.83
139.06
0.48
26.36
4.13
51.19
2.27
14.70
30.18
315.24

%
0
2
8
4
45
0
8
1
16
1
5
10
100

35 | P a g e

Prime Exchange Co. Pvt. Ltd.

Prime Bank Limited established its fully-owned subsidiary "Prime Exchange
Co. Pte Ltd." to offer remittance services to Bangladeshi nationals in
Singapore, which started its operation from 8th July, 2006, under remittance
license received from Monetary Authority of Singapore (MAS) and approval
of Bangladesh Bank. Mr. Azam J Chowdhury, Chairman of the Board of
Directors of Prime Bank Ltd., is the Chairman of Prime Exchange Co. Pte Ltd.
while Mr. M Ehsanul Haque, Managing Director of the Bank, is the Director
of the Prime Exchange Co. Pte Ltd. The Exchange Company is located at 2A
Desker Road, (2nd floor), Singapore 209549 a very convenient place at
Serangoon area near Mustafa Centre, where Bangladeshi nationals congregate
during weekends for social interaction and money remittance services.
Opening of the fully owned subsidiary in Singapore to offer remittance
services to Bangladeshi nationals will add new dimension to the Bank's
remittance operation.
The company has completed the fifth anniversary in July 2011 and celebrated
the occasion with special offers and raffle draws for remitters. It has routed a
total volume of remittance of SGD 46.86 million in 2011 compared to SGD
40.58 million in 2010, showing 15.48 percent growth. The company made
profit before tax of SGD 104,427 in 2011 compared to SGD 106,944 in 2010.
In compliance of Bangladesh Bank instruction, the Company repatriated net
profit of 2010 to Prime Bank, the owner of the company. The company has
migrated to RemitFast, a remittance software developed by our Banks IT
Team, with the objective to offer better service to customers and to minimize
cost of using third party software. The company has arrangement with Pubali
Bank Limited and Uttara Bank Limited for directly sending remittances for
credit to the beneficiarys account in all their branches. During the year 2011,
the Prime Exchange Co. Pte. Ltd., Singapore opened its second branch at
Jurong East in February 2011 with permission from Bangladesh Bank and

36 | P a g e

Monetary Authority of Singapore. The expansion is being made from the

retained profit of the company. Opening of third branch is under process. The
Company is at the final stage to collect remittance of Non-Resident Indians
(NRI) and remit to the beneficiaries in India under arrangement with a reputed
bank in India.
Contact Address
Prime Exchange Co. Pvt. Ltd.,
2A Desker Road, (2nd floor)
Singapore 209549
Tel : (+65) 6392 4996, (+65) 6392 4829
Fax : (+65) 6392 4838
email: primex@singnet.com.sg

PBL Exchange (UK) Ltd.

After commencement of business of PBL Exchange (UK) Limited in August
2010 with three Branches in London, Birmingham and Manchester, the business
volume has marked growth despite competitive pressure from newly launched
companies owned by banks in Bangladesh. Total volume of remittance was GBP
2.879 million in 2010 which reached to GBP 12.626 million in 2011. The company
incurred operating loss of GBP 150,090 in 2011 compared to operating loss of GBP
86,873 in 2010. Through efficient and professional service and marketing effort, the
company is expected to achieve significant positive result in future.
Company in UK established on 19 Nov 2009. Registered office : The Limes
1339 High Road, Whetstone London N209HR, United Kingdom.
Email : pbl.ex.uk@primebank.com.bd
Company fully owned by Prime Bank LimitedBoard of Directors : Mr. Azam J
Chowdhury, Capt Imam Anwar Hossain and Mr. M Ehsanul Haque. Nature of
business: Remittance (Money Transfer)
Office locations: London, Birmingham, Manchester where Bangladeshi
community lives. Tentative date of opening: 26 March 2010;
Mode of payment to beneficiaries:
Instant Cash Payment through Prime Bank's Branch and SME centers all
connected under online banking,
Over the counter cash payment through 400+ Branch network of BURO
Bangladesh,
Prime Bank's account credit and withdrawal facility through network of 550+
ATMs
Account credit to any other banks in Bangladesh;
Full remittance amount paid to beneficiaries in Bangladesh without deduction
of any charge; Dedicated team of officials of Central Foreign Remittance Cell
(CFRC) ensure efficient customer service, Money transfer operation in UK is
carried out through online software; This is second such initiative after success
in Singapore (2006) Initiative in Singapore was first for any private sector
bank in Bangladesh

37 | P a g e

PBL Finance (Hong Kong) Limited

The company has started operation in September 2011. The office is located at
Admiralty Center, Tower-2, Harcourt Road, Hong Kong. The main functions of the
subsidiary are to advise, negotiate, confirm and provide discounting facilities against
LCs originating from PBL and other banks in Bangladesh. The company will also
handle remittance business. Total discounted bills reached to KHD 54.68 million as
on December 30, 2011 and the company has made profit before tax of HKD 374,863
in 2011. The company is operated with executives and officials having well
experience in foreign trade business both in Hong Kong and Bangladesh. The
company, with the dedicated team in Hong Kong and the support of Prime Bank, is
expected to come out as an efficient outlet for Hong Kong bound trade finance
business.
Exchanges houses
Prime Bank has remittance arrangements with different exchange companies
or houses around the world. The different exchange houses are:
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
x.
xi.
xii.
xiii.
xiv.
xv.
xvi.
xvii.
xviii.
xix.
xx.
xxi.
xxii.
xxiii.
xxiv.
xxv.
xxvi.
xxvii.
xxviii.
xxix.

Al Ahalia Money Exchange Bureau

Arab National Bank
Universal Exchange
Federal Exchange
Habib Exchange
GULF
Milfa Sterling Exchange Ltd.
AL DAR FOR.EX.
National Exchange Co./PBL UK
Oman & UAE Exchange
Placid NK Corp., USA
Prime Exchange Co., Ltd.
UAE Exchange
Wall Street Exchange Centre
Western Union
Deshi Foreign Exchange
Sanpalo
OMAN IN"T BANK
IQRA
AL Rostamani
X-PRESS MONEY
ECONOMIC EXCHANGE
IME
UTL
AL-FARDAN
TRANS-FAST
GCC
BANK AL BILAD, KSA
LULU EXCHANGE

38 | P a g e

3.1.6 Foreign Remittance Process and Fund Transfer

Remittance services provided by PBL in brief are given below:
I.

Non Resident Taka Account

The Taka accounts maintained with banks in Bangladesh by private individuals, firms
and companies resident outside Bangladesh are known as Non-resident Taka
Accounts. The accounts of foreign nationals residing in Bangladesh and foreign firms
and companies located and operating in Bangladesh and accounts of U.N. and its
organizations are, however, treated as resident accounts and kept outside the scope of
Exchange Control.
The accounts of Bangladesh nationals who leave the country except those who hold
office in the service of Bangladesh Government are required to be treated as nonresident Taka account so long they remain outside Bangladesh. Prior permission of
Bangladesh Bank is necessary for opening non-resident Taka accounts. Non-resident
Taka account may, however, be opened without prior permission of Bangladesh Bank
for crediting the proceeds of remittances received from abroad through normal
banking channel.

II.

Resident Foreign Currency Deposit Account

Persons ordinarily resident in Bangladesh may open and maintain Resident Foreign
Currency Deposit (RFCD) accounts with foreign exchange brought in at the time of
their return from travel abroad. Any amount brought in with declaration to Customs
Authorities in form FMJ and up to US$ 5000 brought in without any declaration can
be credited to such accounts. Proceeds of export of goods or services from

39 | P a g e

Bangladesh or commission arising from business deals in Bangladesh shall not be

credited to such accounts.
Balances in these accounts shall be freely transferable abroad. Fund from these
accounts may also be issued to account-holders for the purpose of their foreign travels
in the usual manner (i.e. with endorsement in passport and ticket, up to US $ 1500 in
the form of cash currency notes and the remainder in the form of TC).These accounts
may be opened in US Dollar, pound sterling, Euro or Japanese yen and may be
maintained as long as the account holders desire. Interest in foreign exchange shall be
payable on balances in such accounts if the deposits are for a term of not less than one
month and the balance is not less than US$ 1000 or 500 or its equivalent. The rate
of interest shall be one quarter percent (0.25%) less than the rate at which interest is
paid on balances of bank in their foreign currency clearing accounts maintained with
Bangladesh Bank.
III.

Non Resident Foreign Currency Deposit Account

All non-resident Bangladesh nationals and persons of Bangladesh origin including

those having dual nationality and ordinarily residing abroad are entitled to maintain
interest bearing time deposit account named "Non-Resident Foreign Currency Deposit
(NFCD) Account" with the Authorized Dealers (ADs).
These accounts may be maintained in US dollar, pound sterling, Euro or Japanese
yen; initially with minimum amount of US$ 1000 or pound sterling 500 or equivalent.
Accounts may be opened against remittances in other convertible currencies after
conversion of those into US Dollar, pound sterling, Euro or Japanese yen.
Foreign nationals and companies / firms registered and/or incorporated abroad, banks,
other financial institutions including institutional investors and 100% foreign owned
(A -Type) industrial units in the Export Processing Zones in Bangladesh, are also
allowed to open and maintain NFCD account. The minimum amount of time deposits
in such cases should be US$ 25,000 or its equivalent in pound sterling, Euro or
Japanese yen. Bangladesh nationals serving with Embassies/High Commissions of
Bangladesh in foreign countries as also the officers/staff of the Government/semiGovernment departments/nationalized banks and employees of body corporate posted
abroad or deputed with International and Regional agencies like IMF, World Bank,
IDB, ADB etc. during their assignments abroad may open such accounts.

40 | P a g e

Crew members of the Bangladeshi shipping companies are not entitled to open such
accounts, but shore staff posted abroad may open such accounts. The account is in the
nature of term deposits maturing after one month, three months, six months and one
year. Accounts may also be opened with funds transferred from existing foreign
currency accounts maintained by the wage earners with the ADs in Bangladesh. The
branch may pay interest on deposits into account at euro-currency deposit rates
advised by the Head Office. In case of premature repayments, the amount of interest
may be forfeited to the branch. The interest of deposits into this account is exempt
from the Tax payable under Income Tax Act. The account holder may be allowed to
freely repatriate the balance and the interest accrued thereon in foreign exchange to
the country of his residence or anywhere he chooses and may, at his option, convert
the balance into Taka at the prevailing exchange rate.
IV.

Foreign Currency Account

Bangladesh nationals residing abroad, foreign nationals residing abroad or in

Bangladesh, foreign firms registered abroad and operating in Bangladesh or abroad,
and foreign missions and their expatriate employees in Bangladesh can open Foreign
Currency (FC) accounts.
Foreign exchange earned through business done or services rendered in Bangladesh
cannot put into this account. Credits to a foreign currency account may be made
against inward remittances of foreign exchange in any form or by transfer from
another FC account. Local as well as foreign payments may be made freely from
foreign currency accounts. No payment in foreign exchange can be made to or on
behalf of any resident in Bangladesh. Payments from these accounts received by
residents, unless generally or specifically authorized by Bangladesh, must be
converted into Taka. Banks may pay interest on such accounts at rates determined
from time to time.

FC Accounts of Overseas Bangladesh Nationals

Bangladesh nationals working abroad or proceeding abroad to take up

employment may open foreign currency accounts.

41 | P a g e

No initial deposit is required to open this account.

Account holder may operate the account himself or nominate other persons in
Bangladesh for this purpose.

The account may be opened in pound sterling, US dollar, Euro or Japanese

yen.

The account may be maintained as long as the account holder desires.

These accounts should ordinarily be fed by remittances by account holder

himself but funds sent by other wage earners may also be placed to the credit
of such accounts.

Sale proceeds of currency notes, travelers cheques, drafts etc. brought into
Bangladesh by the account holder while on temporary visit to Bangladesh
provided foreign exchange in excess of US$ 5000 (or its equivalent) is duly
declared to the Customs on Form FMJ at the time of their arrival.

Funds lying to the credit of FC accounts of Bangladesh nationals can be

utilized for import of goods and commodities as per Import Policy announced
by the Government from time to time.

FC Accounts of Duty Free Shops

Foreign Currency Account in the names of the Diplomatic Bonded Warehouse (duty
free shops) licensed by the custom authorities may be opened on the following
conditions:

Foreign exchange received only on account of sale of merchandise may be

credited to this Account.

Foreign exchange may be sent abroad only for the purpose of import of
merchandise by the bonded warehouse.

For the same purpose foreign exchange may also be transferred from these
account to foreign currency account maintained with other banks.

Foreign exchange from these accounts may be freely converted into Taka at
current exchange rates.

FC Accounts of Joint Venture Contracting Firms

42 | P a g e

Local

and

joint

venture

contracting

firms

employed

by

foreign

donors/international donor agencies to execute projects in Bangladesh may

open foreign currency accounts as per terms of the approved contracts.

Only foreign exchange received from the donors/donor agencies to meet

expenses of the project can be credited to these accounts.

All expenses in foreign exchange as per relevant contract may be met from
these accounts.

FC Accounts of Bangladeshis Working in Foreign organizations

Foreign currency accounts may be opened in the names of resident

Bangladesh nationals working in foreign/ international organizations operating
in Bangladesh provided their salary is paid in foreign currency.

Such accounts may be credited only with the foreign currency portion of the
salary and debited for all approved current transactions like cost of travel,
education for children, medical treatment etc.

Foreign currency accounts may also be credited with consultancy

fees/honoraria received in foreign currency by the above mentioned category
of residents, debits to such accounts being subject to same conditions as
mentioned above.

V.

Non-resident Investor's Taka Account

The non-resident investor shall open a Non-resident Investor's Taka Account (NITA)
with any AD branches of Prime Bank Limited, with freely convertible foreign
currency remitted from abroad through normal banking channel or by transfer of
funds from the non-resident investor's foreign currency account, if any, in Bangladesh.
Balances in the NITA may freely be used to buy Bangladeshi shares/securities. These
balances are also freely remittable abroad in equivalent foreign exchange. The NITA
can be operated by the account-holder himself or by a nominee, including the AD
itself. Dividends/interest earnings on the shares/securities bought through the NITA,
net of taxes payable on such earnings of the non-resident holder, received from the
issuing company/institution may be credited to the NITA.

43 | P a g e

Sale proceeds of the shares/securities purchased through the NITA may also be
credited to the NITA. No local funds from any sources other than those mentioned
above can be credited to NITA. No loan facilities shall be allowed by the ADs in the
Non-resident Investor's Taka Accounts.
Foreign Remittance Processes and Services

Chart: Prime Bank Remittance Payment Flow Chart

Prime Bank has set the highest priority to mobilize inward foreign remittance of NonResident Bangladeshi Nationals (NRB) living and working in different parts of the
world. Our remittance service is Easy, Fast and Secured.

44 | P a g e

Remittance Products for NRBs

1. Instant Cash Remittance: Beneficiaries can receive instant cash remittance
from the Branches of Prime Bank and from the branches of BURO
Bangladesh.
2. TT Remittance: Payment instructions received through tested e-mail/secured
internet system by CFRC, execute payment instructions, credit the same to the
beneficiaries account maintained with Prime Bank Branches and also execute
third banks payment.
3. DD Remittance: DD drawn on the Branches of Prime Bank by Exchange
Companies& banks.
4. Web-based remittance: Web-based payments executed from all our branches
and from BURO branches.

Major Strengths of Prime Bank Foreign Remittance Service

I.

II.

Remittance Distribution Network

Prime Banks existing network of 122 locations throughout the

country [105 branches and 17 SME branches].

Under a sub-representative agreement with Prime Bank 500

branch locations of BURO Bangladesh are making instant cash
payment of remittances to the beneficiaries

Strong Agency arrangement with a host of local banks for

distribution of foreign remittance

Remittance Processing Strength

45 | P a g e

III.

Real time online connectivity with all the Branches of Prime

Bank through Core Banking Software allowing instant accountto-account credit, over the counter cash payment of Instant cash
remittances & credit of proceeds of foreign TTs to customer
accounts.

Batch processing of payment orders for third bank credit within

the same clearing zone

Automated Centralized Foreign Remittance Center (CFRC) at

Head Office for faster processing of remittances. Automation
has increased the efficiency of CFRC and reduced the leadtime.

Alternative Delivery Channel

IV.

With this wide ATM network infrastructure and switching

system, we have access to 2400 shared network of other banks
spread over the country. Recently, initiative has been taken to
install POS to supplement the existing alternative delivery
channel, which is expected to be in service within a short
period.

Speedy Delivery of Remittance

Prime Bank ensures faster delivery of foreign remittance as per the following turnaround time:

V.

Prime Banks customer (more than 120 branches) : Instant A/C

credit

BURO Bangladesh (500 outlets) : Same working day

Third Banks customer : 2 5 working day

International Banking Relationship

46 | P a g e

VI.

Prime Bank has established a good correspondent banking

network throughout the world.

At present, the Bank has correspondent relationship with 516

branches of 198 banks located in 87 countries.

Prime Bank maintains 34 NOSTRO accounts in 9 different

currencies with 25 banks to facilitate payments and receipts in
foreign currencies.

Strength in Sourcing Inward Remittance

Prime Bank has a wholly owned subsidiary in Singapore for

handling remittances of non-resident Bangladeshis living in
Singapore and other nationals

Prime Bank has a wholly owned subsidiary in UK (3 branches

in London, Birmingham and Manchester)

Drawing arrangement with 42 exchange companies & banks of

around the globe for sourcing inward foreign remittance

Marketing representatives in overseas locations for sourcing

remittance, account opening and cross selling of NRB products

47 | P a g e

INTRODUCTIO
N

CHAPTER 05:
SUMMARY, CONCLUSION
AND RECOMMENDATION

Learning Objectives:
1. Summary of the study
2. Recommendations
3. Conclusion

4.1 Summary of the Study:

Prime Bank is an emerging bank. The bank has only completed a decade of banking

48 | P a g e

services. At the initial stage of business, every institution has to go through the difficult
path of survival. To achieve the confidence of the borrowers, the bank must execute some
improvements in its marketing and operational areas Prime Bank Ltd should try to win
borrowers faith by providing them efficient and dependable services, credit facility and
updating with user friendly modern technologies. The bank should redesign all sorts of
banking procedures to be more user-friendly, attractive and impressive.
Prime Bank limited started with a vision to be the most efficient financial intermediary in
the country and it believes that the day is not far off when it will reach its desired goal. It
looks forward to a new horizon with a distinctive mission to become a highly competitive
modern and transparent institution comparable to any of its kind at home and abroad.
Finally it can be said that, Foreign Remittance should be more for emerging markets, up
warding growth of national income and overall improvement in the standard of living.

4.2 Recommendations:
I had the practical exposure in Prime Bank Ltd. Head Office, Motijheel for just three
months, with my little experience in the bank in comparison with vast and complex banking
system, it is very difficult for me to recommend. I have observed some shortcomings
regarding operational and other aspects of their banking. On the basis of my close
observation I would like to propose the following recommendations Improve office machine configuration and should be used upgrade version.
Employees are proper trained with vast knowledge about their work variety.
Improved user friendly software which is increased the performance of
employees.
Segregation the work depends on efficiency and performance.
Appraised the employees and should be judged their performance.
Trying to introduce the new feature and services about remittance.
Simplified the total remittance process.
Decreasing the dependency on IT department and should be prepared own IT
infrastructure for superb and fast services.
Justified the other banks remittance services and taken effective steeps for
better remittance services than others.

49 | P a g e

 Upgrade the server for maintaining huge historical and present data.
Linking with MIS department for increasing performance and service
development.

4.3

Conclusion

Remittances play a vital part in the economy. As of 2012, Bangladesh is among the
top remittance receiving countries in the world. Remittances play an essential role in
the Bangladesh economy today. The local economy has also benefited indirectly as
large out-migration, especially from some parts of the country led to localized labor
scarcity, causing wages to rise.
Prime Bank is the most promising private commercial bank in Bangladesh. Everyday
Prime Bank makes an effort to increase their product and services although they
provide a wide range of product and services to their customers. The bank is
spreading its operation through all over the Bangladesh. So very recent it will increase
their branches more to meet up the people demand. It is committed to provide high
quality financial services/products to contribute to the growth of GDP of the country
and the growth of industrialization, boosting up export, creating employment
opportunity for the educated youth, raising standard of living of limited income group
and overall sustainable socioeconomic development of the country.
The bank is maintaining a well-structured communication from top to bottom level.
The work experience in the Prime Bank Limited for the period of internship program
was very enlightening. All officers of this department were co-operative and very
friendly in their attitude. Job environment in the Prime Bank Limited is excellent. At
the same time, the service provided by the officers of this department is hard working.
They try to make the customer feel like home and make them a desire service which is
sometimes above to their expectation and thats why Prime Bank is now one of the
most top reputed commercial banks in Bangladesh.

CHAPTER 05:
BIBLIOGRAPHY AND
APPENDIX

50 | P a g e

Learning Objectives:
1. Bibliography
2. Appendix

5.1 Bibliography:
5.1.1 Books and publications:

51 | P a g e

1. Ahmed Nasiruddin. (1989) , Banking and Finance Compendium: 1st edition .

Standard printing and packages: Dhaka.
2. Star Business News . (2008). Prime Bank Launches Training program.
3. Prospectus of prime bank ltd.
4. Bangladesh Institute of Bank Management, Appraisal of Customers
Services of Scheduled Banks of Bangladesh.
5. Banking theory and practice by Shekhar.
6. An article - Importance of migrants Remittance for Bangladesh
Economy Abul kalam Azad (Former Joint Director, Foreign Exchange
Policy Dept., Bangladesh Bank Ltd.)
7. Dr. R.M. Debnath Banks & Legal Environment 2nd Edition, the Dry den
press.

5.1.2 Websites:
1. www.primebank.com.bd
2. www.abbank.com.bd
3. www.wikipedia.com
4. www.bangladesh-bank.org
5. www.businessdictionary.com/definition
6. www.answer.com

5.2 Appendix:
5.2.1 Ratio analysis information of Prime Bank Limited

52 | P a g e

Prime Bank Limited

1.2.1.1

Performance at a Glance:

5.2.1.2 Statement of Comprehensive Income:

53 | P a g e

54 | P a g e

5.2.1.3 Statement of Cash Flow:

55 | P a g e

5.2.1.4 Statement of Financial Position:

56 | P a g e

5.2.1.5 Financial Highlights:

57 | P a g e

58 | P a g e

5.2.1.6 Graphical Presentation:

59 | P a g e

60 | P a g e

61 | P a g e

GLOSSARY:

62 | P a g e

Job Performed In Internship Session

Daily Record Activities:

As an intern, I have worked in Head Office, Prime Bank Limited from 06 January to 19
February 2013. At this moment, I worked Foreign Exchange Department.
Day

Date

Activities

1.

January 06.2013

Went to Prime bank head office for getting confirmation

2.

January 07.2013

letter.
Handover confirmation letter to the Head of CFRC

January 08.2013

Department.
Worked at Export desk and get brief idea from Rajib Hasnat

January 09.2013
January 06.2013

about the process of Inward Remittance.

Transfer Fund using BEFTN.
Worked at Export desk and get brief idea from Towhidur

3.
4.
5.

Islam about the process of Importing and Exporting

January 07.2013
January 08.2013
January 09.2013
January 10.2013

product.
Work at Export desk and fill up EXP forms.
Work at Export desk and fill up EXP forms.
Work at Export desk and fill up EXP forms.
Work at Export desk and giving data entry in Bill of

January 11.2013
January 12.2013
January 13.2013

Entry Register.
Friday
Saturday
Work at Export desk and giving data entry FDBP/FDBC

13

January 14.2013

register.
Work at Export desk and giving data entry FDBP/FDBC

14.

January 15.2013

register
Worked at Export desk and get brief idea from kamal

6.
7.
8.
9.
10
11.
12.

hossain about the process of Exporting product, letter of

15.

January 16.2013

credit, Bill of Landing, Invoice and Bill of Exchange.

Work at Export desk and giving data entry Bill of Entry
63 | P a g e

January 17.2013

register.
Work at Export desk and giving data entry FDBP/FDBC

January 18.2013
January 19.2013
January 20.2013

register
Friday
Saturday
Worked at Export desk and get brief idea from Abdur Rab

January 21.2013
January 22.2013
January 23.2013

about FDD and FTT and identifying FDD & FTT files.
Worked at Export desk & sorting FTT files.
Worked at Export desk & sorting FTT files.
Making a list of Shorted FTT and then check with FTT

January 24.2013
January 25.2013
January 26.2013
January 27.2013

files.
Worked at Export desk & sorting FDD files.
Friday
Saturday
Making a list of Shorted FDD and then check with FDD

27.
28.
29.
30.

January 28.2013
January 29.2013
January 30.2013
January 31.2013

files.
Took leave
Took leave
Giving data entry of FDD/FTT register.
Work at Export desk and giving data entry FDBP/FDBC

31.
32.
33.

register
February 01.2013 Friday
February 02.2013 Saturday
February 03.2013 Worked at Import desk and get brief idea from Md. Abdulla

34.
35.
36.
37.
38.
39.
40.
41.

February 04.2013
February 05.2013
February 06.2013
February 07.2013
February 08.2013
February 09.2013
February 10.2013
February 11.2013

42.
43.
44.

Entry Register.
February 12.2013 Work at Export desk & giving data entry in Export form.
February 13.2013 Took leave
February 14.2013 Work at Export desk and giving data entry FDBP/FDBC

45.
46

register.
February 15.2013 Friday.
February 16.2013 Saturday.

16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.

Ahmed about the process of Import product.

Work at Import desk and fill up IPM forms.
Hortal day
Work at Import desk and fill up IPM forms.
Work at Import desk and fill up statement forms.
Friday
Saturday
Work at Export desk & giving data entry in Export Register.
Work at Export desk and giving data entry in Bill of

64 | P a g e