INTERNSHIP REPORT ON

Role of IBBL-Promoting Import, Export Business and Inward Foreign Remittance

Submitted To Md. Hedayet Ullah Course Co-ordinator Internship Program of IBBL (July12-Sep 12)

Date of Submission: 04.09.2012

Submitted By Md. Shariful Islam ID NO: 1608 Internship Program of IBBL (July12-Sep 12)

Role of IBBL- Promoting Export, Import Business and Inward Foreign Remittance (IBBL)

Date of Submission: September 23, 2012 Prepared By: MD. Shariful Islam ID: 0703021 Reg. Number: 01550 Session: 2007-08 Major in Marketing Bachelor of Business Administration (BBA)

PATUAKHALI SCIENCE AND TECHNOLOGY UNIVERSITY DUMKI, PATUAKHALI- 8602 Letter of Transmittal August 25, 2012 To Imranul Islam Course Co-coordinator Internship Program of IBBL (July12 to Sep12) Subject: Submission of Internship Report on Role of IBBL- Promoting Export, Import Business & Inward Foreign Remittance Dear Sir, It is a great pleasure to present you my internship report as a partial fulfillm ent of BBA Program. I tried to give my best effort to prepare this report on Role

of IBBL- Promoting Export, Import Business & Inward Foreign Remittance according to your guideline. I also tried to focus my best work sincerely to cover all as pects regarding the matter. Practical exposure is very essential for orientation with the real worlds working area. I have learned a sound knowledge and understa nd on the basic operation of the bank. I have thoroughly enjoyed in preparing th is internship report which has contributed significantly to my understanding on the essentials and importance practical knowledge. I express my special gratitud e to you for dedicating your valuable time and helping me whenever needed.

There may have some flaws when preparing this report; hope that you will conside r these flaws favorably.

Sincerely Yours, -------------------------Md. Shariful Islam ID: 1608 Internship Program of IBBL (June12-Sep12)

Acknowledgement My first and cordial thanks to almighty Allah who invisibly helps us in every st ates of our life and who has given me the opportunity to go through the total pr ocess of internship and finally write a report in this regard. My endless thanks go to Course co-coordinator Md. Hedayet Ullah and also to Moha mmad Zahidul Islam, official of IBBL, for being patient and supporting me during my internship program. I express my sincere gratitude to honorable supervisor Imranul Islam, Assistant Professor, Patuakhali Science and Technology University, who guided, supervised me during the study. His excellent attitude has greatly encouraged my work. I d o , am very much grateful to the executives of IBBL who extended their wholehearte cooperation during my internship period. I would like to extend my gratitude t Manager; Senior Principle Officer; Executive officer, General Banking; Officer Foreign Exchange; officer, Investment division.

I thank you all from the core of my heart. Executive Summary Import, Export and Foreign Remittance are the three main functions of foreign ex change and these are assumed very important position in the business portfolio o f any commercial bank. It is not an exception in case of Islami Bank Bangladesh Limited. As a Shariah based Bank, meeting the present day International business need of the customers in a competitive environment has been and is still a chal lenge for Islami Bank. From the very inception in the early eighties, Islami ban k has covered good grounds. And, foreign exchange business has now become one of the most important portfolio of the bank in respect of volume of fund deployed,

generation of return for the bank as well as maintaining the high image of the bank at home and abroad. IBBLs share in countrys import business touched double digit in the year 2007 with 10.78%, 10.00% at the end of 2009(161230 corer), 246281 corer in 2010, 301207 c orer in 2011 and 156133 up to June 2012. In export side we can see that market s hare of IBBL maintains a steady growth from the year 2001 and at the end of 2009 it reached double digit i.e. 10.60%, 178244 corer in 2011 and 98888 corer up to June 2012.It is also observed that in remittance business IBBL witnessed tremen dous growth in holding market share which was 8.52% in 2001, 25.59% in 2009, 236 607 corer in 2011 and 145013 corer up to June 2012 In remittance business IBBL hold more than of the total market share i.e. 25.59% at 2009 and 28% at the end of June 2012. IBBL gets this success due to system d evelopment, automation & improvement in services as well as expansion of network in the source countries. And in export business market share of IBBL shows stea dy growth but in import business market share shows a small percentage fall in 2 008 (9.64%) but again rise from 2009 and 11% at the end of June 2012 and Foreign Exchange Business of IBBL is managed by 47 Authorized Dealer (AD) branch es that are supervised by its International Banking Wing which have five divisio ns equipped with SWIFT, Internet Connections, Online Based and Integrated Dealin g Room. Table of Contents DESCRIPTION Chapter One Page Chapter Four MAIN PART OF THE REPORT Page Scope of the Study 8 IBBLs performance at Import Sector of Bangladesh 24 Limitation of the Study 8 Last Five Years Export Trend of IBBL 26 Objectives of the Study 8 Role of IBBL in Inward Foreign Remittance (Last nine Years) 26 Methodology of the Report 9 Comparative Data of Different Banks in Inward Foreign Remittance 27 Foreign Exchange Business National vs. IBBL 28 Chapter Two -Short Profile of IBBL IBBLs Growth Rate in Import, Export and I nward Foreign Remittance 28 Share of IBBL in Countries Foreign Exchange Business 29 Core Values of the IBBL 11 (National vs. IBBL) 30 Aims and Objectives of IBBL 12 32 Chapter Five Mission of IBBL 12 SWOT Analysis of IBBL 35 Vision of IBBL 12 SWOT Analysis of Foreign Exchange Department/Business of IBBL 36 Strategic Objectives of IBBL 12 Findings 37 Corporate Information of IBBL 13 Chapter Six Organization Structure of IBBL 14 Recommendation 39 Initiatives Taken by IBBL to Foster Inward Foreign Remittance Comparative Growth of foreign Exchange Business

Functions of IBBL Chapter Three

14

Conclusion

40

Basic Understanding of IMPORT, EXPORT and INWARD FOREIGN REMITTANCE Business of IBBL 18-22 Reference 41

Chapter One

Scope of the Study As foreign exchange business is a crucial part of a banks performance, this repor t has covered foreign exchange performance of IBBL in different years and also c ompared this data with other banks. I have shown concerned data from December 20 01 to July2012 for better evaluation of performance. Since the ultimate goal of

this report is to examine the role of IBBL promoting export, import business & i nward foreign remittance, I have tried my best to cover activities and initiativ es of IBBL to foster and extent these sector. Anybody can easily make him known about IBBLs recent foreign exchange activities and performance through this repor t. Limitation of the Study Since very work has its limitation, this report is not an exception of that. I h ave faced some problems for preparing this report and these can term as limitati on. Below are the lists of problems I have faced: This is a vast work and requires huge understandability but the time was limited and it acts as an important hindrance for preparing this report. Another vital limitation is confidentiality of data. I cant manage and present so me crucial data because of their confidentiality nature. Objectives of the Study I have some broader and specific objectives to prepare this report. Broader Objective To examine the role of reign remittance. Specific Objectives change To To To To learn about foreign trade activities i.e. Export & Import find out performance of IBBL in Foreign Exchange Business. Know about Foreign Exchange Business under Islamic Shariah. be acquainted with the Export & Import required documents IBBL in promoting export, import business and inward fo

To know about the initiatives and reason of IBBL for being success in foreign ex

Methodology of the Report As its a vast work to prepare report on this decisive topic, I had to follow a pl anned and specific method. These methods are described below: Report Design This report has prepared and designed in a well shape to give its readers idea a bout Islamic Banking, give knowledge about Foreign Exchange business of Banks and finally make aware about role of IBBL in Import, Export Business a nd Inward Foreign Remittance. Data Collection Data is a major part of report preparation. For preparing this report I have col lected data from both primary and secondary sources. Primary sources of data: I have collected primary data through conducting with officials of IBBL at my Br anch. Their information and valuable hints are used in this report actively. b) Secondary sources data: Following are the secondary sources of data: Annual Reports of 2002-2011 of Islami Bank Bangladesh Ltd. Manuals of Islami Bank Bangladesh Limited regarding Foreign Exchange Journals / News paper articles relating performances of banks on earnings foreig n remittance

Islami Bank Bangladesh Limited Website- http://www.islamibankbd.com Synopsis and training materials provided by Bangladesh Bank and Islami Bank Trai ning and Research Academy (IBTRA). Data Analysis Collected data are analyzed in Tabular and Graphical format.

Chapter TWO

Understanding the Entity Short Profile of IBBL

Islamic banking refers to a system of banking or banking activity that is consis tent with the principles of Islamic law (Sharia) and its practical application t hrough the development of Islamic economics. The General Secretariat of the OIC defines An Islamic Bank is a financial institu tion whose statutes, rules and procedures expressly state its commitment to the principles of Islamic Shariah and to the banning of the receipt and payment of i nterest on any of its operations. As Bangladesh is one of the largest Muslim countries of the world, naturally the people of this country are sick for Islamic way of life and want to lead their life according to Quran and Sunnah. Since its incorporation Islami Bank Banglade

sh Ltd. has been showing a promising and continuous success and now one of the l eading private commercial bank of Bangladesh. This first generation bank has sta rted their journey in Bangladesh on 13th March 1983is the true reflection of thi s inner urge of its people, which started functioning with effect from March 30, 1983. IBBL is the first Islamic shariah based bank in south-east Asia and perfo rm their activities for the stable betterment of the society. Core Values of the IBBL IBBL has a different culture and value that is one of the central factors of its success. Below are some of the important values of the IBBL: Trust in Almighty Allah Strict observance of Islamic Shariah Highest standard of Honesty, Integrity & Morale Welfare Banking Equity and Justice Environmental Consciousness Personalized Service Adoption of Changed Technology Proper Delegation, Transparency & Accountability Aims and Objectives of IBBL IBBL has its distinctive aims and goals to foster economic growth of society acc ording the Islamic principles To replacement of interest by profit sharing and loss bearing To establish justice in the economy To establish participatory banking instead of banking on debtor-creditor relatio nship To establish a welfare-oriented banking system To extend co-operation to the poor, the helpless and the low-income group for th eir economic upliftment To contribute towards balanced growth and development of the country through inv estment operations particularly in the less developed areas To contribute in achieving the ultimate goal of Islamic economic system Mission of IBBL To establish Islamic banking through the introduction of a welfare oriented bank ing system and also ensure equity and justice in the field of all economic activ ities. Achieve balanced growth and equitable development through diversified investment operations particularly in the priority sectors and less developed areas of the country. To encourage socio-economic upliftment and financial services to the low income community particularly in the rural areas. Vision of IBBL The vision of IBBL is to always strive to achieve superior financial performance , be considered a leading Islamic bank by reputation and performance. IBBLs goal is to establish and maintain the modern banking techniques, to ensure soundness and development of the financial system based on Islamic principles an d to become the strong and efficient organization with highly motivated professi onal, working for the benefit of people, based upon accountability, transparency and integrity in order to ensure stability of financial systems. IBBL will try to encourage savings in the form of direct investment. IBBL will also try to encourage investment particularly in projects which are mo

re likely to lead to higher employment. Strategic Objectives of IBBL To ensure customers satisfaction. To ensure welfare oriented banking. To establish a set of managerial succession and adopting technological changes t o ensure successful development of an Islamic Bank as a stable financial institu tion. To prioritize the clients welfare. To emerge as a healthier & stronger bank at the top of the banking sector and co ntinue stable positions in ratings, based on the volume of quality assets. To ensure diversification by Sector, Size, Economic purpose & geographical locat ion wise Investment and expansion need based Retail and SME/Women entrepreneur f inancing. To invest in the thrust and priority sectors of the economy. To ensure lucrative career path, attractive facilities and excellent working env ironment. To ensure zero tolerance on negligence in compliance issues both shariah and regu latory issues. To train & develop human resources continuously & provide adequate logistics to satisfy customers need. To be excellent in serving the cause of least developed community and area. To strengthen corporate culture. To ensure Corporate Social Responsibilities (CSR) through all activities. To promote using solar energy and green banking culture and ecological balancing . Corporate Information of IBBL IBBL is listed with Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd. Authorized Capital of the Bank is Tk. 20,000.00 Million ($244.87 Million) and P aid-up Capital is Tk. 10,007.71 Million ($122.53 Million) having 60,550 sharehol ders as on 31st December 2011.

Organization Structure of IBBL Below figure shows the organizational structure of IBBL from top to bottom-

Functions of IBBL IBBL performs diversified activities and have got a strong base over this time. Islamic banks render almost similar services to their customers conventional ban ks do but differences exist in administering incentives for deposits and chargin g for capital investments, in so far as techniques of calculating the incentive or the cost of the capital are concerned. Like a conventional bank, the IBBL als o accepts deposits from customers and provides loan. The bank invests its funds

for short as well as long term deposits. IBBL also acts as a custodian of its cu stomers and performs all foreign transactions on behalf of them. The IBBL perform mainly four different types of functions: General banking services, Investment Foreign exchange services RDS- Rural Development Scheme a. General Banking Functions: IBBL performs different general Banking functions. And while doing the below ill ustrious work IBBL issue cheque-book, deposit account operating form, cash book, deposit account ledgers, prepare statement of accounts and provide balance of d ifferent accounts. a. Receive cash and provide payment b. Deposit mobilization c. Maintenance of ATM, Electronic Funds Transfer, Internet Banking, Phone Bankin g Maintain Transfer Accounts d. Collection of cheques and bills e. Maintenance of accounts with Bangladesh bank and other banks f. Maintenance of safe deposit lockers g. Issue and payment of Demand Draft, Telegraphic Transfer and Payment Or der h. Executing customers standing instructions i. And similar other activities b. Investment Functions of IBBL: The Islamic Bank Bangladesh Limited invests its fund in various projects under d ifferent modes or techniques. The bank shows a good progress in investing its fu nds, since it started its business.

Investment Modes Islami Bank Bangladesh Limited follows different modes or techniques while inves ting their funds. It has been observed from the past record that the bank invest s its funds mainly under

c. Foreign Exchange Business: Foreign exchange business includes export, import and foreign remittance, is cru cial for a countries economy. Foreign exchange business acquires a major portion of the revenue of IBBL. We will broadly know about foreign exchange business of IBBL in the next chapter. d. RDS- Rural Development Scheme

Rural Development Scheme has been introduced to cater to the investment needs of the agriculture and rural sector to create opportunity for generation of emplo yment and raising income of the rural people with a view to alleviate poverty. Major objectives of RDS: To establish balanced economic growth To ensure reduction of Rural-Urban disparity RDS at a glance (as on 30.06.2012) Lunched in 1995 Total Disbursed BDT 49,043.08 million Outstanding BDT 8,521.96 million Investment Size BDT 15000-BDT 50000 No. of Groups 141,825 Villages Covered 14,338 Total Members 6,59,493 Female Members 85% Rate of Recovery 99.62% Area 1952

Chapter Three

Basic Understanding of

IMPORT, EXPORT and INWARD FOREIGN REMITTANCE Business of IBBL

Import, Export and Foreign Remittance business of Banks are termed as Foreign Exc hange. Foreign Exchange actually have its broader shape; it means all kinds of t ransactions related to foreign currency, as well as currency instruments such as Foreign Trade/International Trade, Payment Order, Draft, MT, TT etc. In another sense it can explain as, Foreign Exchange refers to the process or me chanism by which the currency of one country is converted into the currency of a nother currency and, thereby, involves the international transfer of money. As an Islami Bank, IBBL has to abide by the principles of Islamic Shariah, its b ranches has to follow the internal circulars of the bank in respect of import bu siness and a guidebook. All of IBBLs AD Branches are instructed to follow a guide book, provided by BB, at the time of foreign exchange dealings. Any subsequent a mendment, modification, addition/ foreign exchange circulars issued by Banglades h Bank and IBBL also to be followed by the AD Branches. International trade is the exchange of goods from seller to buyer in accordance with the sales contract and the required flow of payment from buyer to seller. IBBL offer different trade products and services complying Shariah and law of th e land. Foreign exchange and Foreign Trade Operations can be categorized in following 4 areas-Import Services and Import Finance -Export Services and Export finance -Foreign Remittance Services -Foreign Exchange Treasury Operations Import Services and Financing Products Import business involves transactions in foreign exchange. Import may be defined as bringing of visible items to the country from abroad through letter of credi t or LC, a form paying foreign Currency to the exporting country. Import Services and Financing Products Service Principles Scope of Applications Wakalah Letter of Credit Safe Keeping Remittance Commission Basis Kifalah Letter of Credit Performance Bond Bid Bond Basis

Advance Payment Guarantee Commission Basis Financing Principles Scope of Applications Bai Murabaha Import Murabaha Import Bills Murabaha Post Import Mark up basis Sirkat Mudaraba Musaraka Sharing Basis Ijarah Hire Purchase Under Shirkatul Melk Basis

Rental Basis

Under Islamic Financing concept, there is trade financing whenever goods are acq uired against a promise of a future payment, or price paid against the participa tion in future profits that may be earned from putting it into productive use. T he need for trade finance arise when the buyer of goods wishes to defer the paym ent of the price or although less frequent, when the seller requires the advice payment of money. LC A letter of credit is a document that a financial institution or similar party i ssues to a seller of goods or services which provides that the issuer will pay t he seller for goods or services the seller delivers to a third-party buyer. The issuer then seeks reimbursement from the buyer or from the buyer s bank. The doc ument serves essentially as a guarantee to the seller that it will be paid by th e issuer of the letter of credit regardless of whether the buyer ultimately fail s to pay. In this way, the risk that the buyer will fail to pay is transferred f rom the seller to the letter of credit s issuer.

Export Export is the process of selling visible and invisible goods and services outsid e the country against letter of credit. Export Business occupies a very importan t position in the Balance of Trade and Balance of Payment of the country. Export occupies an important position in the foreign exchange business portfolio of th e bank. In handling export business, certain Acts, guidelines, & regulations hav e to be followed such as the Export Trade Control Regulation Act, Guidelines for Foreign Exchange Transactions published by Bangladesh Bank and Export Policy is sued by Ministry of Commerce from time to time. As a Shariah based Bank, IBBLs export business should comply with the provisions/ principles of Islamic Shariah. Foreign Remittance Money coming in and going out in between countries may be regarded as Remittance . Wage Earners Remittance by Bangladeshi Expatriates plays a vital role on overal l economy of the country particularly on the Foreign Exchange Reserve position a nd also has its impact on the Balance of Trade and Balance of Payment of the cou ntry. Forms Remittance a) Inward Remittance b) Outward Remittance As our concern is about Inward foreign Remittance, we will now only know about I nward foreign Remittance. Mainly the earnings of our brother working abroad termed as Inward Foreign Remit tance. Inward remittances are considered the sum of workers remittances, compensa tion of employees, and migrants transfers. Workers remittances refer to transfer s in cash or in kind from migrants to resident households in the countries of or igin. Usually these are ongoing transfers between members of the same family, wi

th persons abroad being absent for a year or longer. Compensation to employees refers to the wages, salaries, and other remuneration, in cash or in kind, paid to individuals who work in a country other than where they legally reside

Chapter Four MAIN PART OF THE REPORT

IBBLs Role in Promoting -Export, Import and Inward Foreign Remittance

IBBL is now in the leading position in export, import and inward foreign remitta nce. As IBBL is the most solvent of Bangladesh, foreign buyers and dealers demand s to have their export/import business processed through IBBL. On the other hand IBBL also very conscious and efficient to process and give importance on relati ng documents and making everything ready on time. IBBL is now the market leader of providing inward foreign remittance. Foreign re mittance is now a vital segment of our economy and it keeps its imprint it diffe rent part of the economy. Our brave brothers leave their relatives and make cont ribution to the country, to their relatives and to remove unemployment. IBBL und erstands the economic and emotional importance of this sector and have made read y a strong wing to handle and provide instant service regarding this sector.

IBBLs Contribution at Import Sector of Bangladesh IBBL has been showing a continuous success in import, export and inward foreign remittance. IBBL has been taking a significant portion of national import, expor t and inward foreign remittance. To evaluate IBBLs role in these sectors we have assess performance in numerical figure. Now lets have a look on these data throug h tabular and graphical presentation: Ten years Import Trend of IBBL

Source: IBBLs Web Site In the above figure we see that IBBL has shown a continuous growth from 2002 to 2008 but suddenly a negative figure in 2009 and again comeback again from 2010.

Last Five Years Contribution of IBBL in Export Now have a look on IBBLs role in ExportExport Performance of IBBL (Last Five Years) In export, IBBL has immense contribution from 2009 to 2011 but in recent year it has shown a slower performance. In 2010 and 2011 IBBL plays a vital role in the economic sector most. Role of IBBL in Inward Foreign Remittance (Last nine Years) Below chart shows the role of IBBL in Remittance Here we see that IBBL has capturing the market share very impressively. One can

use the term aggressively here by seeing the performance of IBBL in Inward Remitta nce. IBBL alone dominates more than 26% of the market share now. To Measure the Role Played By IBBL in Promoting Foreign Remittance, Now Have a L ook on Comparative Data of Different Banks in Inward Foreign Remittance Source: IBBLs Web Site This one graph is enough, I think, to measure the role of IBBL in the overall Fo reign Exchange sector. It seems, from the graph, IBBL is the only institution pr oviding Foreign Remittance service. Where IBBL is running like a hoarse, others are walking like an old man there.

Foreign Exchange Business-National vs. IBBL (Market Share-2001-2009) If we can examine the comparative figure of national and IBBL, it will be easy f or us to understand the role of IBBL. So now have a look on these figuresFigure in million Tk. Period Import Export Remittance National IBBL Share (%) National (Approx) IBBL Share (%) National (Approx) IBBL Share (%) 2001 492140 25907 5.26 319115 16082 5.04 2002 495200 33788 6.82 314540 16673 5.30 2003 606720 46237 7.62 361850 21738 6.01 2004 722440 59804 8.28 461530 29151 6.32 2005 890220 74525 8.37 547550 36169 6.61 2006 1108170 96870 8.74 733720 51133 6.97 2007 492140 137086 10.78 811520 66690 8.22 2008 1745698 168329 9.64 929270 93920 10.11 2009 1683432 161,230 10.00 999587 106424 10.60 Source: Annual Business & Development Conference 2010

115908 164845 184851 212860 273043 377924 452640 621131 745040

9879 14670 16668 23669 36948 53819 84143 140420 194716

8.52 8.90 9.02 11.12 13.53 14.24 18.59 22.60 25.59

Above data shows that IBBL s share in country s import business touched double d igit in the year 2007 with 10.78% and it has become 10.00% at the end of 2009 (a nd at the end of July12 the growth rate was 12%). In case of export we can see that market share of IBBL maintains a steady growth from the year 2001 and at the end of 2009 it reached double digit i.e. 10.60%. It is also observed that in remittance business IBBL witnessed tremendous growth in holding market share which was 8.52% in 2001 and it has become 25.59% in 200 9 (and at the end of July12 the growth rate was 0%). In remittance IBBL has shown an impressive success. IBBLs Growth Rate in Import, Export and Inward Foreign Remittance Below graph shows IBBLs growth rate in Import, Export and Inward Foreign Remittan ce. For better understanding data are presented here from 2001 to June12.

Here we see that IBBL has really a bad performance in 2009 but comeback again fr om Share of IBBL in Countries Foreign Exchange Business

Source : Annual Business & Development Conference 2010 It is important to mention here that in remittance business IBBL is in the boom with holding more than of the total market share i.e. 25.59% at the end of 2009. It is observed that in export business market share of IBBL shows steady growth but in import business market share shows a small percentage fall in 2008 (9.64 %) which is now 10.00% in 2009. Comparative Growth of foreign Exchange Business (National vs. IBBL) Import

Above graph shows that IBBLs growth in import business is faster than national gr owth from year 2001 to year 2009 but in 2009 the growth of IBBL is negative (-4% ) where nation growth (-3.57%) is also negative. Export

IBBL shows slower growth from 2001 to 2005 and comparatively better growth rate in 2006 and 2008. In 2009 export growth of IBBL again fall. Remittance

Source: Annual Business & Development Conference 2010 Observed data shows that the year 2003 was slow-moving year for both national & IBBL remittance. After that IBBL always maintains good growth for the year 2004 to 2009. Though the growth of IBBL remittance decreased in 2006 & 2009 it was we ll ahead of national growth.

Initiatives Taken by IBBL to Foster Inward Foreign Remittance Nothing comes without anything. There have huge sacrifice, plan and dynamism to be in this successful position of IBBL. IBBL has dedicated and honest work force . Now lets have a on initiatives taken by IBBL. SpotCash To provide quick payment of foreign remittance IBBL has made integrated software named spot cash. IBBL is the most technologically update modern Bank and all of its branches are in the coverage of online. So, by this integrated software IBB L can easily and smoothly give payment of foreign remittance. Affiliation with Almost All of the Currency Bearer Houses: IBBL has affiliation with almost all of the companies and houses that bears curr ency. So it can give payment from all countries. Here are list of some of this affiliates: Western Union Money Gram Xpress Money of U IME AE exchange Prabha Merchant Trade EzRemit of Bahrain exchange Habib Express of Habib Qater International exchange Company May back Turbo Cash of Zenj exchange NBL Quick Pay Cash Express of Al Ansari exchange Est. Ceylinco Fast Cash of Seylon Bank Ltd Remit Master And some other houses E-Mail based SpotCash: E-Mail based SpotCash Arrangements with 33 (thirty three) Banks / Exchange House s.

Chapter Five

SWOT Analysis of IBBL SWOT Analysis of Foreign Exchange Business of IBBL Findings

SWOT Analysis of IBBL

SWOT Analysis of Foreign Exchange Department/Business of IBBL

Findings Below are the findings of this reportIBBL is the largest Inward Foreign Remittance provider of the country IBBL provides payment almost all of the Foreign Remittance Houses In overall Foreign Exchange, IBBL had slower performance in 2008 and 2009 IBBL alone holds of the Inward Foreign Remittance market Comparatively, IBBL has better performance in Import than Export SpotCash is the integrated software of IBBL that makes payment system easy, smoo th and quick IBBLs growth in Import, Export and Inward Foreign Remittance in more higher than that of National IBBL gets different award for its contribution in Import, Export Business and In ward Foreign Remittance Sector Most of the customers like this bank as their money are used according to the Is lamic rules IBBL played most significant role to promote Import, Export Business and Inward Foreign Remittance

Chapter Five

Recommendation and Conclusion

Recommendation Almost all of the things have some fault; IBBL is not an exception here. BY stay ing roughly two months on the job training, I have some suggestion and recommend ations for IBBL. IBBL can develop automated service for foreign trade Enable capacity to meet all types of unique needs of the clients in the changing pattern of world trade Charge of transferring money from one district to another without online banking should be reduced Employees dynamism and quality should be developed Number of employees at different branches should be increased to improve service quality and to provide quick service Initiatives have to be taken to remove rumors of the critics Initiatives have to be take to make the customers more acquainted with the onlin e banking system of the bank IBBL can arrange different program to make people aware about Islami Banking and prevailing differences between conventional bank and Islami Bank Proper warmly greetings, more polite and helpful behavior could bring the highly satisfied customer. But employees of IBBL have to come up with large customers , so they cant be polite with their customer in some of the cases. Export of non-traditional items should be encouraged IBBL should open more ATM booths to meet customer needs and to meet the competit ion Necessary steps should be taken for improvement of responsiveness to the custome rs IBBL can decorate its branches more attractively

Conclusion Foreign Exchange business is an important part for commercial banks and so comme rcial banks treats this section carefully. IBBL has SWIFT facilities and can pro vide Foreign Exchange services efficiently and quickly. No country is sufficient enough to meet its need and to Import and Export foreign exchange/remittance is very important. Delay in opening LC suffers a countrys consumers most. And Inwar d Foreign Remittance has great contribution in our economy and in peoples livelih ood. IBBL plays a vital role in all this three sectors. As a Shariah based Bank, meeting the present day International business need of the customers in a compe titive environment has been and is still a challenge for Islami Bank. From the v ery inception in the early eighties, Islami bank has covered good grounds. And, foreign exchange business has now become one of the most important portfoli o of the bank in respect of volume of fund deployed, generation of return for th e bank as well as maintaining the high image of the bank at home and abroad. IBBL is and will remain in first position, I hope, in Import, Export and Inward Foreign Remittance in Bangladesh as well to achieve its mission to spread the Is lamic Banking throughout the world economy system.

Appendix Raquib A. Emergence o Islamic Banking in Bangladesh and related Financial issues ( Sabdarup, 34,North Brook Hall Road,Bangla Bazar,Dhaka-2006),pp-20-37. Islami Bank Bangladesh Annual Report 200, 2009 and 2011 Brochures of Islami Bank Bangladesh 2011 Islami Bank Bangladesh Limited Website- http://www.islamibankbd.com www.assignmentpointbd.com, Study of Foreign Exchange Function of Islami Bank Bang ladesh Limited