Internship Report

On

“An Analysis of Foreign Exchange Banking of Shahjalal Islami Bank Limited”

SUBMITTED TO:

Shakila Zerin Bony

Assistant Professor
Department of Business Administration
Stamford University Bangladesh

SUBMITTED BY:

Name:
ID:
Major: Finance

STAMFORD UNIVERSITY BANGLADESH

Date of Submission:

i
 Letter of Transmittal
Date:
Shakila Zerin Bony
Assistant Professor
Department of Business Administration
Stamford University Bangladesh.
Sub: Submission of Internship Report.

Dear Sir,
With due respect, I would like to inform you that is a great pleasure and privilege to present
the internship report title “An Analysis of Foreign Exchange Banking of Shahjalal Islami
Bank Limited” which was assigned to me as a partial requirement for the completion of
MBA program.

Throughout the study I have tried the best of my capacity to accommodate as much as
information and relevant issues as possible and tried to follow the instructions that u have
suggested. I put my best effort to make this report such as much detailed as possible. I
sincerely I believe that this report would satisfied and meet the requirement and will serve the
purpose of my internship program.

I am grateful to you for your kind guidance cooperation at every step of my endeavor during
preparing this report. It will be a great help for if you kindly take some time to go through the
report and evaluate this. It will be a big reward for my effort if it adds value to the research
literature.

Sincerely Yours,
________________
Name
ID
Major: finance
Stamford University Bangladesh

ii
 Student’s Declaration

Internship Report

I here announce that the extensive study entitled

“An Analysis of Foreign Exchange Banking of Shahjalal Islami Bank Limited” Prepared
in partial accomplishment the requirement for the award of the degree
Master of Business Administration
From
STAMFORD UNIVERSITY BANGLADESH

__________________
Name
ID
Major: finance
Stamford University Bangladesh

iii
 Supervisor’s Declaration

To Whom It May Concern

This is to certify that the internee report on “An Analysis of Foreign Exchange Banking of
Shahjalal Islami Bank Limited” For the degree Master of Business Administration (MBA)
major in Finance from Stamford University Bangladesh carried out by Name…….. bearing
ID No…… under my supervision.

………………………………
Shakila Zerin Bony
Assistant Professor
Department of Business Administration
Stamford University Bangladesh.

iv
 Acknowledgement

I am highly grateful & like to express my sincere thanks to HRD Of Shahjalal Islami bank
Ltd. And Manager of Eskaton Branch who permitted me as an internship student in such a
prestigious organization.

In preparing the report “An Analysis of Foreign Exchange Banking of Shahjalal Islami
Bank Limited” I am very much obliged for cordial cooperation from executive’s, officers
and staffs Shahjalal Islami Bank Limited, Dhaka.

I do hereby express my deepest thanks and appreciation to Shakila Zerin Bony, who is my
honorable supervisor, for giving me valuable time and sincere guidance during the study
period, which has inspired me in preparing this report. I pray to almighty Allah for his good
health & long life.

v
 Executive Summary

The chief demand for foreign exchange within a country comes from importers of foreign
goods, purchasers of foreign securities, government agencies purchasing goods and services
abroad, and travelers. Collecting foreign remittance is another important function of the Bank.

It is one type of a social activity and other side important source of bank’s income. Bank uses
their collecting money with the participation of govt. for creating more employment
opportunities. Shahjalal Islami Bank is a Bank with difference; this difference has been
maintained throughout the passing years by ensuring highest customer care and maintaining
competitive market price. The Bank will focus on its large customer base to generate more
business from existing customers. This strategy is supported by wide spectrum of product and
services and level of customer service delivery.

Foreign exchange is an important department of Shahjalal Islami Bank, which deals with
import, export and foreign remittances. It bridges between importers and exporters. This
department is playing an important role in enhancing export earnings, which aids economic
growth and in turn it helps for the economic development. On the other hand, it also helps to
meet those goods and service, which are most demandable and not adequate in our country.

vi
 Table of contents

Particulars Page no
Letter of Transmittal ii
Student’s Declaration iii
Supervisor’s Declaration iv
Acknowledgement v
Executive Summary vi
Chapter One - Introduction
1.1 Introduction of the study 02
1.2 Objectives of the study 03
1.3 Methodologies 04
1.4 Limitation of the study 05
Chapter Two- Organizational Over View of Shahjalal Islami Bank
2.1 About Shahjalal Islami Bank Limited 07
2.2 Profile of Shahjalal Islami Bank Limited. (SJIBL) 08
2.3 Mission 09
2.4 Vision 10
2.5 Slogan of the Bank
2.6 Strategies
2.7 Organizational Structure 13
2.8 Shariah council of SJIBL 14
2.9 Conventional VS Islamic Banking 15
Chapter Three- Foreign Exchange
3.1 Definition of Foreign Exchange 17
3.2 International regulations of foreign exchange 18
3.3 Foreign Exchange Mechanism 19
3.4 Graphical representation of Foreign Exchange Mechanism 21
3.5 Activities of foreign exchange 22
Chapter Four- Overview of Import

vii
4.1 Understanding 24
4.2 Main Features of Import Policy 25
4.3 Import Mechanism 27
4.4 L/C Opening 29
4.5 Procedure involved in L/C opening 30
Chapter Five- Overview of Export
5.1 Understanding: 37
5.2 Things done here 38
5.3 Export Bill Scrutiny 39
5.4 Export Finance 41
5.5 Export L/C 44
Chapter Six- Overview of Foreign Remittance
6.1 Foreign Remittance 48
Chapter Seven- Analysis and Findings
7.1 SWOT Analysis 52
7.2 Foreign exchange business analysis 53
7.3 Findings 55
Chapter Eight- Recommendation & Conclusion
8.1 Recommendation 58
8.2 Conclusion 59
Bibliography

viii