INTERNSHIP REPORT

ON
Foreign Exchange Activities of Al-Arafah Islami Bank
Limited.
The internship report is submitted for the partial fulfillment of the requirements of
the degree of the MBA, Asian University of Bangladesh.

SUBMITTED TO:
Md.Tareque Quddus
Asst. Professor
School of Business
Asian University of Bangladesh
D
SUBMITTED BY:
Tanvir Mustafa
ID No: 201420314
Program: MBA; Batch: 51st
Major: Finance
Dept. of Business Administration

Asian University of Bangladesh

Date of Submission: March 16, 2017

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 Letter of Transmittal

Date: 16th March 2017.

Md.Tareque Quddus
Asst.Prof, School of Business
Asian University of Bangladesh.
Uttara, Dhaka-1230.

Subject: Submission of the Internship Report.

Dear Sir,
I am pleased to inform you that, I have completed the internship report in compliance with your
skillful guidance and cordial supervision of my honorable supervisor Md.Tareque Quddus,
Asst.Professor, School of Business.

I had privileged of working in Al Arafah Islami Bank Ltd, Uttara Branch as an internee. I have
worked here about Foreign Exchange activities of Al-Arafah Islami Bank Ltd.
I sincerely believe that the findings of this report will be of immense help to the academic
references and for any explanation and clarification of any aspect of this report, please make me
oblige by calling me directly. I sincerely hope this report will receive your approval.
Yours Sincerely,

Tanvir Mustafa
ID No: 201420314
Program: MBA, Batch: 51st
Major: Finance
Dept. of Business Administration
Asian University of Bangladesh.

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 Supervisors Certificate

This is to certify that Tanvir Mustafa bearing ID No. 201420314, Program MBA,
Department of Business Administration, Major Finance, Asian University of
Bangladesh, has successfully completed his internship program & prepared the report
entitled Foreign Exchange activities of Al-Arafah Islami Bank Ltd.

Within the time period from August01, 2016 to October 30, 2016. Under my
supervision and guidance. To the best of my knowledge, it is the researchers original
work.

I also certify that I have gone through the draft and final hard written version of the paper
and now I approve the report for submission as a partial fulfillment of the requirements
for the award of the degree of MBA, major in Finance, Asian University of Bangladesh.

I wish him every success in life.

(Md.Tareque Quddus)
Asst.Professor
School of Business
Asian University of Bangladesh

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 Acknowledgement

At first, I would like to express my gratitude to Almighty Allah for enabling me the
strength and opportunity to complete the report in the scheduled time successfully.

I would like to acknowledge the assistance of my internship supervisor Md Tareque

Quddus, Asst.Professor, School of Business.Asian University ofBangladesh. His sincere
guidance, untiring co-operation, valuable advice and endless inspiration enabled me to
overcome all the quandaries that cropped up during the course of my internship program
and preparing this report.

In preparing the report, I received active co-operations from the SVP & Manager,Second
officer of AIBL.I extended thanks to Mohammed Hossain SVP & Manager,
Md.Lokmanoor Rahman second officer, Md.Golam Hossain FAVP & Incharge of Foreign
Exchange of this bank.They have provided some important books on Banking and some
books on marketing and finance sharing,consent and given some advise of making a
research report.

Finally, my gratitude goes to Md.Tareque Quddus, Asst.Professor, and School of Business

AUB. He helped me in processing the formalities of doing my work in there.

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 EXECUTIVE SUMMARY

This internship report is based on the twelve weeks long internship program that I have
successfully completed in Al-Arafah Islami Bank Ltd at Uttara branch under Foreign Exchange
Department from August01, 2016 to October 30, 2016. It is a requirement for the MBA
program in AUB. I worked in the Foreign Exchange Export Department. My faculty advisors and
the office supervisors have helped me significantly in making me internship journey successful.
The three month internship experience proved very handy for me as i gained work-experience
and also improved skills like technical skills, analytical skills, communication and interpersonal
skills, personal development etc. From my perspective and my supervisors perspectives, i have
been a vital contributor to the Foreign Exchange Import Department in meeting their goals as i
able to accomplish our tasks, do multitask, and handle pressure of deadlines. This internship
experience has also opened doors for me as i have gathered a reasonable idea about how the
banking system and foreign exchange works and what are the important departments in a bank.

This will help me in choosing a particular department when working in banks. Though i have
faced challenges and difficulties in the workplace over these three months, it has definitely
opened my eyes that at workplace one should be confident and show work ethic regardless of
position where he is assigned to. Banking industry though puts employees on much pressure and
stress, the benefits of working in this industry will outdraw that of other industries. The
internship experience has been different than that of what I expected after getting work
experience for three months i thrilled to start my career in this industry. Nonetheless, the
internship allowed me to implement some of the knowledge that i learned in my academic years
in the university and also resulted in gaining of other knowledge regarding Foreign Exchange,
Bangladesh Banks rules for Import L/C opening. It has allowed me to make difference between
the academic life and the work life and have shown a direction to pursue career goals.

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 Table of Content
SL No. Particulars Page No.
1.1 Introduction 01
Background of the study 02
Objectives Of the study 02
a) General Objective:
b) Specific Objective:
Methodology
Primary source
Secondary source 03

Scope of the study 03

Limitation of the study 03

Organization Part
SL No. Particulars Page No.
Historical Background 04
Vision 04
Mission 04
Commitments 05
Special features of AIBL 05
Shariah Board of AIBL 06
Corporate Information 07
Management Hierarchy 08

Actual Task Part

Foreign Exchange 09
Fundamentals of Foreign Exchange 09
SWIFT Service of AIBL 10
Foreign Exchange Activities of AIBL 10
4.5.1 Import Functions of AIBL 10
4.5.2 Procedure for obtaining IRC (Import Registration
11
Certificate)
Regulations of Import 11
Types of L/C 12
Revocable Credit

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 Irrevocable Credit
Confirmed L/C
Parties to a Letter of Credit 14
Features of L/C 14
Major Documents
Forwarding:
Bill of Exchange:
Invoice:
15
Packing List:
Bill of Loading:
Certificate of Origin:
Shipment Advice:
Charges for L/C opening
L/C commission: 16
L/C Margin:
Procedures of opening Letter of Credit
Step 1 - Registration with CCI&E:
Step 2 - Determination terms of credit:
Step 3 - Proposal for Opening of L/C:
Step 4 - Application by importer to the banker to
open
letter of credit:
Step 5 - Opening of L/C by the bank for the
16
opener:
Step 6 - Shipment of goods and lodgment of
documents
by exporter:
Step 7 - Lodgment of Documents by the opening
Bank
from the negotiating bank:
Step 8 Retirement:
Export Functions of AIBL
Export credit: 17
Post shipment credit:
Export L/C
Obtaining exports LC:
Submission of export documents:
Checking of export documents:
19
Negotiation of export documents:
Realization of proceeds:
Reporting to the Bangladesh bank:
Issue to proceeds realization certificate (PRC):
Back-To-Back L/C 19
Features of Back-To-Back L/C
Documents Required for Opening a Back-to-back
20
L/C
Payments under Back-to-Back Letter of Credit
Foreign Remittance 21
Remittance procedures of foreign currency
Inward Foreign Remittance 22
Modes of Inward Remittance
Outward Foreign Remittance 23

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 Modes of Outward Remittance

Finding and Analysis

5.1 Performance Analysis of AIBL for Foreign Business: 23
5.1.1 Import Analysis: 23
5.1.2 Export Analysis: 24
5.1.3 Remittance Analysis: 25
5.1.4 Growth of Export, Import and Remittance in 2015: 26
5.4 Summary of findings 27

Conclusion, Recommendation and References Part

6.1 Conclusion 29
6.2 Recommendations 30
6.3 References: Books, Reports
31
and Prospectus & Websites

List of Figure

Figure No.1, Five year comparative Analysis

23
Figure No.2 of import of AIBL
Five year comparative Analysis
24
Figure No.3 of Export of AIBL
Figure No.4 Five year comparative Analysis
25
of Remittance of AIBL
Figure No.5 Comparative analysis of
foreign exchange performance 26
of AIBL

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