nationwide bank essay

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Traditional bank

A research software is very important & essential for obtaining experience through learning and spreading the scope of Knowledge. I have done my research program in National Bank Limited, Foreign Exchange Branch. This exploration report is usually aimed at providing a comprehensive picture to the parts of Foreign Exchange operation of National Bank Limited. The survey has been split up into twelve parts. These are- Introduction, Simple History of Financial Sector of Bangladesh, Corporate review of NBL, Foreign Exchange, Files Used in Foreign currency Business, Letter of Credit (L/C), Importance, Export, Overseas Remittance, Findings and Analysis, References.

Nationwide Bank Limited is one of the most significant commercial Financial institution of Bangladesh. The main goal of the Bank is to provide all of financial services at the doorsteps in the people. The Bank also participates in various social and creation programs and takes part in setup of various policies and pledges made by the federal government.

National Traditional bank Limited takes on a groundbreaking role in handling overseas trade and foreign exchange orders.

With wide network of divisions at home and a large number of correspondent banks globally, it is controlling the largest volume of export-import business including homebound remittances. For that reason, Foreign Exchange from the Bank is very much essential. Nevertheless a day’s banking sector of Bangladesh is battling the disease of default lifestyle which is the consequence or perhaps result of negative performance on most banks. There are three types of settings of forex trading market, which will are- Foreign trade Financing, Importance Financing and Foreign Remittance.

Foreign Exchange Branch does these types of foreign exchange actions vastly. In this report, We mention the complete operating procedure of forex transaction of National Financial institution Limited. I also point out the results of my personal report and describe the recommendation to overcome the limitation. I have taken each of the reasonable treatment to ensure the reliability and top quality to make the statement standard. And I believe that it includes included all the necessary details to be relevant.

INTRODUCTIOIN

ORIGIN OF THE REPORT

As a necessary part the BBA Software, all the students of the teachers ofBusiness Studies, Premier School, Chittagong need to undergo a 3 month extended research plan with a target of getting practical knowledge about current business community. After this research program every single students need to submit a research report talking about their actions during the research program. I’ve started my own research in the National Financial institution Limited, Foreign currency Branch. At the conclusion of the study program My spouse and i am submitting my exploration report centering on the contribution of Forex operation to the overall performance of bank specifically on success perspective within the supervision of Tasnim Uddin Chowdhury, Lecturer, Department of Finance, in Premier School, Chittagong.

GOALS OF THE ANALYZE

The general aim of the study is to collect practical understanding regarding financial system and operation. Your research gives all of us a chance to bring up the several year very long theoretical learning of BBA Program together with the reserch knowledge. This comprises the following:

To get an overall idea about the Foreign exchange Business of National Bank Limited. To utilize theoretical knowledge in the useful field.

To describe the organizational composition, management, qualifications, functions and objectives of the bank and its contribution towards the national overall economy. To achieve total understanding of National Bank Limited.

To analyze the auto financing systems of the bank to discover any adding field. To measure the profitability and productivity with the bank.

To acquire knowledge about the each day banking procedure of Nationwide Bank Limited.

To judge the effect of world economic downturn on forex trading income of NBL, Forex Branch.

To understand the real management situation and try to recommend for increasing existing concerns.

SCOPE FROM THE STUDY

This kind of study delivers those scopes of being aware of are the following: History and overall performance of Countrywide Bank Limited.

Conditions used in forex operations

Foreign exchange procedures of National Bank Limited

Literature review.

Total concept of Foreign Exchange Procedure.

METHODOLOGY OF THE STUDY

The report is prepared around the basic of forex of National Bank Limited. To execute the overall research, at first I actually explored the sources of Major and Secondary information and data. Distinct files in the department and statement made by FED allowed me to to prepare this report. To present numerical data, I used the Total annual Report of 2008 and monthly affirmation of January to March 2009 of National Traditional bank Limited, Foreign Exchange Branch. For preparing this report I have used some graphic representation to find out different types of conditional and meaning.

SOURCES OF DATA

As mentioned earlier, mainly major and secondary data continues to be used. Occasionally the customers offered some important information regarding the companies of the Traditional bank:

PRIMARY DATA

Official information of Countrywide Bank Limited (NBL)..

Expert opinion.

SECONDARY DATA

Monthly Statement of NBL.

Twelve-monthly Report of NBL.

Official Data.

Chosen books.

Other manual information.

Websites.

Various magazines on the Bangladesh Bank.

Newspaper reports in this matter.

DATA RESEARCH AND MODEL

Both quantitative and qualitative analysis will be performed for the findings. The quantitative evaluation will be done on the trend of export- import, expansion pattern of export-import, pre and post facilities presented to easing the export-import operations. Qualitative studies will be based within the macroeconomic parameters and foreign currency policy given by Bangladesh financial institution, the central bank of Bangladesh. Several statistical tools will be used for the examination of the findings.

LIMITATIONS OF THE STUDY

To provide current information and to make the report read-worthy, support from various resources is essential. Despite having my own wholehearted hard work, I could not collect several information necessary at the time of the research. So this research is certainly not free from this limitation: Due to unavailability of latest annual statement (Annual report 2009), I must prepare the report on such basis as annual report 2008. Consequently, analysis, presentation of data may not show the existing position/present current condition of National Traditional bank Limited. For the whole research I had fashioned only ninety days, out which I get 61 times because of late commencement of research plan, which were fully insufficient. Thus i faced time shortage incredibly. Lack of previous experience to organize this type of report and it is completely new to me because an intern.

Foreign exchange section follows Uniform Customs and Practice pertaining to Documentary Credit (UCPDC), nevertheless within this short while, I was absolutely stunned to understand. Learning every one of the banking functions within just 8 weeks was really tough. Sometimes the officers of National Financial institution Limited had been very busy. For this reason the personal did not co-operate me. National Bank Limited did not produce any kind of monetary support for this research program Most of the business days in NBL, I have to work in cash section to help in IPO registration collection, therefore i get limited time operate other departments to have functional knowledge An additional limitation ofthis report is usually Bank’s insurance plan of not disclosing a few data and information for obvious explanation, which could always be very much helpful.

BRIEF HITORY OF BANKING SECTOR OF BD

PROGRESSION OF THE EXPRESSION ‘BANK’

The phrase bank descends from Italian phrase “Banca. Gradilla means very long tool. In ancient time Italian Jews merchant used to do business of lending money by sitting down on the equipment. It is assumed which the word “bank derived from the word Banca. To meet the expense of war of 1171 one type credit rating certificate premiered in Italy at an interest rate of 5% it was called as Monte in German and Bank in German born language in that case German dialect was widely used in Italy. As a result the word Bank little by little changed to the term Banca from which the word Financial institution originated.

THE EMERGENCE OF RECENT BANKING

The linguistics and etymologists advises an interesting history about bank origins. Both old People from france word “Banque and the Italian language word Bolsa were applied centuries ago to mean a along with or moneychangers table. This describes quite well what historians have noticed concerning the initially bankers, who also lived more than 2000 in years past. They were funds changers, situated usually for table or in a small shop in the commercial area, aiding travelers who found town simply by exchanging foreign coins intended for local cash or discounting commercial notes for a fee in order to supply merchants with working capital. The first brokers probably employed their own capital to fund their activities, but it was not well before the idea of appealing to deposit and securing temporary loans coming from wealthy customers became a source of financial institution funding.

Loans were after that made to merchant’s shippers and landowners for rates of interests low as 6th percent each year to of up to 48 percent a month intended for the riskiest ventures. A lot of the early lender was Ancient greek in beginning. The banking industry steadily spread facing outward from the traditional civilizations of Greece and Rome in to northern and western European countries. The early financial institution in The european countries was spots for secure keeping of valuable products (such since gold andsilver bullion) since people found fear decrease of their property due to battle, theft, or perhaps expropriation by simply government. Once colonies were established in North and South America, outdated world financial practice were transferred.

ADVANCEMENT BANKING IN BANGLADESH

Since early United kingdom rule, a history of banking in Bangladesh territory shows that the traditional trade-networks developed before the banks invaded rural areas. And the financial services possess slowly prospered in Bangladesh territory. Even now, in many areas, moneylenders offer credit companies. Small shopkeepers and businessman use relaxed credit in high rate of interest. Traditional mahjong’s money loaning business slowly but surely declined as a result of expansion of bank as well as the micro credit programs of NGOs, cooperative banks and government agencies.

PUBLIC SECTOR BANKING INSTITUTIONS

During the freedom war in 1971, the economic, political, and social program including the bank system was severally broken. At that time, most big and medium financial institutions except two small banking institutions had all their head office on the western part of the country Pakistan. The non-beagle owners and managers of the monetary establishments that operated in East Pakistan had abandoned them. Following independence four decades ago, the new federal government had to take control management and ownership of such organizations. The banking companies Nationalization Purchase 1972 was issued to nationalize banking companies and banks (except these incorporated abroad) in order to control chaos in the field of ownership, get together bureaucracy, the intelligentsia, and pressure group. By many orders the us government of Lenders Republic of Bangladesh created- Six nationalized commercial banking companies (NCBs):

1 . Sonali Traditional bank

2 . Agrani Bank

three or more. Janata Lender

some. Rupali Financial institution

5. Pubali Lender

six. Uttra Traditional bank

One industrial traditional bank (BSB)

One agricultural bank (BKB)

One professional development loan company (BSRS) Your bank and financial institutions which started during the Pakistan period and were merged, and renamed and functioning after freedom of Bangladesh. In the year 1983, the government allowed private sector to take part in the bank business. The Publi Lender and the Uttara Bank had been denationalized in 1985, because of non profitability. This action lowered the number of NCBs to several. Such reorganization, rearrangement, reshuffling of open public sector banks was in so that it will play their job in sector, agriculture, foreign trade, self “employment etc .

EXCLUSIVE COMMERCIAL BANKING INSTITUTIONS

Taking advantage of the liberalization plan of the govt regarding engagement of private sector in the banking business, several private banks were established in “and “after 1983. With the breakthrough of private financial institutions in Bangladesh, a competitive situation inside the sector has been created. Now there are forty eight commercial banking companies in Bangladesh which are enlisted with Bangladesh Bank, one of them four (4) are NCBs, five (5) are specialized banks, twenty nine (29) are exclusive commercial banking companies and five (10) happen to be foreign industrial banks. The emergence of private banks added a new aspect to the bank system in Bangladesh. The private commercial banks display a steady growth in terms of range of branches, put in and developments.

CORPORATE OVERVIEW OF NATIONAL BANK

History of Countrywide Bank Limited

National Lender Limited features its successful past, wonderful present, possible future and under control projects and activities. Founded as the first private sector Financial institution fully owned or operated by Bangladeshi entrepreneurs, NBL has been flourishing as the largest private sector bank with the passage of time after facing many tension and stress. The person in the table of company directors is creative businessman and international economist. For object rendering all modernservices, NBL, being a financial institution computerized all it can branches with computer network in accordance with the competitive commercial demand of the time. Moreover, looking at it’s forth- coming upcoming the infrastructure of the Lender has been a lot more to NBL. Keeping the goal in mind NBL has considered preparation twigs by the wear 2000-2001. The emergence of National Bank Limited inside the private sector is an important event in the banking area of Bangladesh. When the nationwide was in the grip of serious recession, Government. took the farsighted decision to allow inside the private sector to revive our economy of the nation.

Several powerful entrepreneurs came forward to get establishing a bank which has a motto to revitalize our economy of the country. National Lender Limited was created as the first hundred percent Bangladesh owned Bank inside the private sector. From the very inception is it doesn’t firm determination of Countrywide Bank Limited to play a huge role in the national economy. We could determined in order to the very long forgotten preference of financial services and flavors. You want to serve every single one quickly and which has a sense of dedication and dignity. The President of the People’s Republic of Bangladesh Justice Ahsanuddin Chowdhury inaugurated the bank formally on March 28, 1983 but the 1st branch for 48, Dilkusha Commercial Place, Dhaka started out functioning about March 23, 1983. The second Branch was opened upon 11th May 1983 at Khatungonj, Chittagong. Today we now have total ciento tres Branches across Bangladesh. A representative office was established in Yangon, Myanmar in October, 1996 by our bank and obtained authorization from the federal government of Bangladesh to handle edge trade with Myanmar. possibilities is being investigated for further business avenues generally there.

Now NBL is on the web to establish operate and connection with the primary international banking companies of the world. Consequently NBL can build a strong root in international bank horizon. Bank has been pulling arrangement with well conversant money transfer service firm “Western union. It has full-time arrangement intended for speedy transfer of money worldwide. Banking isn’t only a profit ” oriented industrial institution however it has a public bas and social determination admitting this true NBL is going upon with its diversified banking activities NBL introduced monthly Savings Scheme, special Deposit Scheme, and Consumers. Credit Scheme and financial savings Insurance scheme etc . To mix the people of lower and middle cash flow group. A team of highly qualified and experiment specialist headed by managing Overseer of thebank who has great banking encounter operates financial institution and at the most notable three is an efficient Plank of Owners for making procedures.

Vision of National Lender Limited

Creating as a top quality efficient traditional bank through best application of contemporary information technology and business activities, offering excessive standard customer services and Proper coordination of overseas trade business in the core of their vision.

Mission of national traditional bank Limited

Expecting to to achieving commercial target of the bank, their sincere and all away efforts stay still unabated. Respected client and shareholders happen to be attracted to us for each of our transparency, answerability, social communities, and high quality of clientele providers.

Objective of national Bank Limited

Bring modern banking facilities for the doorsteps of general public through diversification of services, therefore arousing keeping propensity among the list of people. Foreign a friendly, deep grounded and plantation banker consumer relationship simply by dispensing prompt and better clientele services. Taking part in the introduction of the countrywide economy through productive progress the banks resources along with patronizing distinct social activities. Connecting consumers to contemporary banking techniques by the ideal application of improved information technology, so they really get encouraged to continue and feel happy with banking with NBL. Addressing the need of enough time by playing the syndicated large loan financing with like-minded financial institutions of the nation, thereby increasing the area of investment Boosting the image from the bank at home and abroad by continual expansion of its activities.

Strategies of National Bank Limited

To manage and operate the bank in the most efficient manner to boost financial functionality and to control cost of finance. To shoot for customer satisfaction through quality control and delivery of timely services. To spot customer credit and other bank needs and monitor their very own perception towards our performance in conference those and update requirement. To examine and update policies procedures and practices to enhance the ability to prolong better providers to customer. To train and develop every employs and provide them satisfactory resources so that customer requires can responsibility addressed. To market organizational success by honestly communicating organization plans, guidelines, practices and procedures to all employers in due time To progress a working environment that encourages positive determination for improved performance To diversify stock portfolio both in the retail and whole sale market. To improve direct exposure to customer as a way o cultivate a closer romantic relationship Business Objective

To patronize, sponsor and encouraged games and sporting activities, entertainment and also other socio-economic activities alongside rendering the best providers to the consumer.

The Future pushed

Full de dos pisos on-line Bank

Bringing out more ground breaking products and services Starting new twigs

Expansion of organization network at home and in another country SMS Banking

Advantages of new liability / Asset products

Corporate Culture

Staff of NBL share specific common beliefs, which helps to create a NBL culture.

The client should be your first priority

Hunt for professional brilliance

Openness to fresh ideas& fresh methods to motivate creativity Quick decision making

Flexibility and prompt response

A feeling of professional ethics

Growth and Development of NBL

The NBL does all classic functions, which in turn a commercial financial institution performs just like mobilization from the deposit, purchase of cash, financing foreign trade and transfer business, control and trade and industry. The bank sector in the area faced several problems believed the year. Possibly through the plank and managing never ceased its hard work to maximize prosperity, which is mirrored by 143. 97percent income growth in 2007, top ever within the last 15 years. The bank gained the 676. 45 main revenue in 2007 since interest, salary from expenditure and percentage & exchange earning, which in turn who Tk. 530: 69 corer in the provision yr. As a result the whole operating income rode to Tk. 221. 51 corer in 3 years ago from Tk. 114. sixty-eight corer in the last year.

Limbs of NBL

NBL, that has been started by Dilkusha Branch on March 23rd, 1983, was the 1st major commercial Bank. In Bangladesh functioning throughout the nation as well as the age of the bank is merely 25 years. During this time period it has set up total 112 branches above the country and made smooth network inside the country as well as thought the world. The quantity of branches and also territory smart is described in the table.

one particular

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