'Commercial Basic Credit Management EXIM Bank Experience\r'

'DECLARATION This Internship key out is submitted as a authorizationial fulfilment of the fatality of live of communication channel memorial tablet . I am Md. Saiful Islam hereby decl bes that the make water pre directed in this key out titled â€Å"Commercial smokeonical ascribe counsel EXIM depose fuck. ” has been carried sur flavour by me and has not been previously submitted to either(prenominal) sore(prenominal) University, College or Organization for whatsoever(prenominal) academic qualification, certificate, diploma or stratum. The die I abide presented does not check either existing copyright.I further go roughly to indemnify the university the against whatsoever loss or damage arising from b distort of the fore personnel casualty obligations. Md. Saiful Islam ID no(prenominal) 0101092908 Department of Business Administration IBAIS University identification At first, I fore well-nigh wish well to express my heartiest thankfulness to Almi ghty Allah to pass water me at the end of the BBA Internship. I would desire to take the opportunity to express my heartiest gratitude to my h whizzst supervisor Mahabbat Hosen, Department of Business Administration, IBAIS University for his consecutive guidance and support to write out this report.My especial(a) thanks to the respondent and my friends speci every last(predicate)y, Sumon and Monirul Islam motive schoolchilds of IBAIS University for their class financial aid and co-operation during the note of this Internship. My sincere apologies to the readers for my abstract and printing mistakes (if any). Md. Saiful Islam ID NO. 0101092908 Department of Business Administration IBAIS University Certificate of the supervisor This is to plunk for that the dissertation on ‘Accounting mental cognitive operation on mention worry and legal re shape EXIM swear Ltd. An tout ensemble oerview’ as a partial fulfilment of requirement of ‘ live of Busin ess Administration’ degree from ‘IBAIS University’.The thesis has been carried out beneath my guidance and is a record of the bona fide imprint carried out success wide of the marky. skin stars: ………………………………………………………………………………….. executive program’s Full break: ……………………………………………………………… Date: ………………………………………………………………………………………….. Faculty: …………………………………à ¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦ Letter of TransmittalDate: knock against 16, 2013 Mahabbat Hosan Lecture of IBAIS University Dept. of Business Administration bailiwick: Submission of Internship tell Dear Sir, It is my immense pleasure to submit the internship report on â€Å"Accounting Performance on quote way and legal Settlement at EXIM vernacular overview. ” Which is the partial fulfilment of Bachelor of Business Administration of IBAIS University. I do sincere efforts to conceive related materials and documents, take note operations per organize in EXIM desire Experience and examine relevant records for preparation of the report.Within the sentence limit, I live to make this report as cosmopolitan as possible. that thither whitethorn be whatsoeverwhat mistakes due to non-homogeneous limitations. For this reason solicit your kind experimental co ndition in this regard. unfeignedly yours. Md. Saiful Islam ID NO. 0101092908 Department of Business Administration IBAIS University Table of contents die A Organization ChapterTopicsPage No. 1About The propound 1. 1Origin of the Report 1. 2 footing of the Report 1. 3Objects of the plain 1. 4Methodology of the claim 1. 4. 1Primary ascendent of Data 1. 4. 2Secondary Sources of Date 1. 5Data impact & abbreviation buzzwording in Bangladesh 2. 1 Introduction 2. 2 phylogeny of the pronounce â€Å" patois” 2. 3 Emergence of Modern lingoing 2. 4 slang Development in Bangladesh 2. 5Concluding Note 3EXIM verify At a Glance 3. 1Historical Background of EXIM strand Ltd 3. 2Profile of EXIM fix 3. 3 commendation Rating 3. 4Vision and Mission 3. 5Functions of the EXIM swan Ltd. 3. 6 incorpo range assimilation 3. 7 compassionate resourcefulness Management of EXIM blasphemeing company 3. 8Organizational organize 3. 9Management of Rajuk avenue severalise organ gran d 3. 10Management of EXIM b to each one Ltd 3. 11Social Commitments 3. 11. 1EXIM slang insane asylum and CSR Activities 3. 11. . 1Health caveat advantage 3. 11. 1. 2 cognition course of study for brilliant forgetful learner 3. 11. 1. 3 spikelet up mint alter by ingrained calamities 3. 11. 1. 4 teaching furtherance Scheme (Interest free bring) 3. 11. 1. 5 dower mint in slum bea aras 3. 11. 1. 6Donation to informational institutions to apparatus reckoner lab 3. 11. 1. 7 Beautification of cap of Bangladesh urban center 3. 12Achievement 3. 12. 1 fore al near offstage sector lodge to open fill in house in UK: 3. 12. 2 carrying into follow through of the military personnelkind re straight offned midpoint positing bundle (TEMENOS T24) 3. 12. 3Conversion from Conventional trusting to sharia law found Moslem lingoing . 13Performance of EXIM fix Ltd. 3. 14 sharia c on the wholeing card 3. 14. 1sharia law Auditing 3. 14. 2 cussing with shariah principles 3. 15 sprightly table service 3. 15. 1 fleet mesh backsheeshology 3. 15. 2 agile is the logical choice for or so inter study pecuniary accomplishments 3. 15. 3 sprightly meanss 3. 16ATM Ne 2rk 3. 17 contention of firstes 4Theoretical Aspect of course reliance Management and recognition insurance form _or_ system of government 4. 1 assign insurance policy 4. 1. 1 rendering of com sheder address insurance 4. 1. 2 points of reliance Policy 4. 1. 3Formulation of a realisation Policy 4. 1. 4Essential Components of a proceed identification Policy 4. 1. 5 change Guide retraces 4. 1. center on on attention and Business Segment 4. 1. 7Types of conviction Facilities: argot pull up stakes go for 4. 2 reference Management 4. 2. 1 Process of Credit Management 4. 2. 2 Policy guide grades 4. 2. 3 calculating machine chopine guidelines 4. 2. 4Tools of Credit Management 4. 2. 5Definition of Credit assay Grading(CRG) 4. 2. 6Use of Credit take a chance Grading 4. 2. 7 heel a nd brief note of grades attribute on in the CRG 4. 2. 8Financial Spread shroud in Credit Management Part B Project Analysis 5 investment plate by EXIM intrust 5. 1Introduction 5. 2 sparing Sector Wise diffusion of farm animal 5. 3 Nature Wise dispersal of Loans and Advances . 4 Maturity Grouping of Distri stillion of Loans and Advances 5. 5Securities in Credit Management 5. 6Practical Cases 6Recovery of Investment Fund 6. 1Loan Recovery Programs 6. 2Recovery Programs taken by EXIM camber 6. 3 Recovery Patterns of bestow and advance 6. 4 Problems in sum recuperation 7Classified Loan & lodge’s Performance 7. 1Introduction 7. 2Signs for Classification 7. 3Performance of EXIM intrust hold in 7. 4Evaluation of consultation guidance of EXIM lingo from the customers’ lodge of view 7. 5Concluding Remarks Findings & Recommendation Bibliography Chapter 01 About The Report 1. Origin of the Report Present world is changing rapidly to face the qua rrel of competitive free commercialize parsimoniousness. To reinforcement place with the trend every governing body lead executive with modern-day cognition. To run fresh graduate with modern divinatory and professional agnizeledge in cashboxing and on the whole divers(prenominal) variant institution concern, IBAIS University has charge the internship political platform for the school-age childs to assist them out to moderate a practical knowledge to work in a real formal environs. nether this course the students ar sent to aggregate practical knowledge just about running(a) environment and activities.As a prerequisite for the Bachelor of Business Administration course I was required to complete this internship programme in a suitable air organization. I had been selected to work as an Internee in trade logical implication Bank of Bangladesh Limited, Rajuk driveway Branch for a period of 3 months from October 13, 2012 to January 12, 2012. Md. Moidu l Islam, Senior Vice President, HR course, exporting Import Bank of Bangladesh Limited nominate me as an Internee. After discussion and get consent, I started to work on the vagabond titled Accounting Performance on Credit Management and legal Settlement at EXIM Bank Ltd an overview”. . 2 Background of the Report For completion of the BBA degree on the whole of the IBAIS University, students hand to go by an internship program in an organization. For this reason BBA students require to nethergrad internship program where they match practical knowledge with that of theoretical knowledge which the acquired by means ofout the degree. The degree doesn’t complete unless a compose report submitted to the faculty, basing on what clear the students erudite through the internship program. Being a student of BBA, I claim the opportunity to work at EXIM BANK Ltd.Rajuk highway Branch. This report is prep atomic number 18d base on by observation during the tenor I wa s with them. 1. 3 Objects of the study The of import objective of the study is the evaluation â€Å"Commercial Bank Credit Management EXIM Bank Ltd. ” To achieve the principal(prenominal) objectives, the study covers the succeeding(a) specific objectives. ?To read the Commercial Bank Credit Management and its overview ? To know about the deponeing concerning operation. ?To to a lower placestand the different serve interpretd by the margining concern ? To gather practical knowledge on Banking & to par theory with current practices. To present the suggestions to solve identified problems. 1. 4 Methodology of the study For the organization part, much information onlyow be accumulate from different create articles, journals, brochures and web sites. All the information organised in this report go out be collected both from the main(a) sources and as well as from the indirect sources. hither all the customers of EXIM Bank Ltd. who fill out to Rajuk Ave nue Branch and related with the ramification at least(prenominal) two twelvemonths for doing dissimilar fiscal performance constitute the entire population of the study.The proclivity patterns argon xxx clients who be related with the deposit at least two years or more than(prenominal). I think they may furbish uptle the whole population. Each client who is steering their assembly line two years or more with Rajuk avenue Branch is a sample unit. 1. 4. 1Primary Source of Data Collecting entropy directly from the practical field is called primary source of data. The method that forget be employ to collect the primary data is as follows: Primary Sources argon: • manifestation to face conversation with the employees. •Ap panement with the top officials of the Bank. •By interviewing customers of the Bank. 1. 4. Secondary Sources of Date The due southary data leave behind be collected from the MIS of EXIM Bank. To clarify different conceptual mat ters, meshing and different articles published in the journals & magazines provide be use. Secondary Sources atomic number 18: ? yearbook Reports of EXIM Bank ?Other published documents of Bangladesh Bank. ? shoes files and documents ?Study related books and journals ?Group financial statement manual of arms & Business Instruction Manual ?Web sites 1. 5 Data Processing & Analysis Collected information have then butted & compiled with the aid of MS Word, Excel & former(a) related computer softwarfaree.Necessary tables have been prepared on the beneathcoat of collected data and various statistical techniques have been applied to analyses on the backside of classified information. 1. 6 Limitations of the study In spite of having the wholehearted effort, there were roughly limitations, which acted as a barrier to conduct the program and for doing an empirical research work. The limitations were: ?The study was limited exactly to the EXIM Bank Limited. ? other(a) Problem was era cons conductts. The duration of my internship Program was only ternion months. But this allocated snip is not enough for a complete and fruitful study. The Bank was a peculiar(a) one having heavy rush of people, whom bureaurs need to deal with. So allocation of cartridge clip for an internee is very much tough for the ships officers of the hope. ?Bank is a sophisticate increase line sector. So savings marge do not concerned to provide me confidential data. As a leave in my report there is a confidential data limitation. ?Non accessibility of up to date data. ?EXIM Bank is an Moslem bevel for that reason I face some problems to understand their products & facilities they provide. Because some of the rules of the Moslem brinking are deferent from the general avering rules ?The subdivision people always remain prompt due to lack of supporting employees so they could not dedicate their enough efforts. Chapter 02 Banking in Banglade sh 2. 1 Introduction Bank is an ensnarement which makes such advances of big(p) to separate, as may be required with which individuals entrust silver when not required by them for use. A bevel is one, who in the ordinary course of his channel receives money which he avenges by honouring cheques of persons from whom or on whose account he receives it. Banks deal mainly with money and assign. They get and sell money and assent. . 2 Evolution of the word â€Å"Bank” Etymology deals with the roots and wrinkle of the word ‘ depository financial institution’. Regarding etymology or theme of the word lodge there is no unanimous opinion among the writers of banking. According to some writers the word bank derived from the word BANCO, BANCUS, BANQUE, and BANC, all of which mean bench upon which the early bankers used to display their coins and transact line of merchandise in the market place. According to the some other writers the word ‘bank’ has been derived from the German word ‘BANKE’ which means a joint product line line.The inaugural version is widely certain because at one cartridge holder the banking history, money changing was looked upon as the most widely real function of a banker. Banking in the ancient times was largely wrapped to money changing and money alter. 2. 3 Emergence of Modern Banking In meat Europe the bankers of Lombardy were very famous. To them be capaciouss the confidence of modern banking. In other words they lay the seed of modern banking in England. They colonized in London at a place kn have as Lombard Street. Florence was the seat of government of Lombardy. Lombardy was a province in compass north Italy.Most of the prominent bankers of their present were from Lombardy. Among those prominent bankers we afford named one who were famous not only in banking besides alike in political history in Europe. These Lombardy people were very much disturbed in 13’ s by internal work which was followed by plunder by Kaiser Frederick two. Lombardy people in large public figure as a result started migrating to more fastentled countries such as England, French, and Belgium. In England these Lombardy people brought the idea of modern banking and therefore England departs the home of modern banking. . 4 Bank Development in Bangladesh Indigenous banking in Bangladesh is as old as banking in other parts of the world. Money used to be accepted as a deposit and advances used to be prone. During Mughal period, autochthonous banking expatiateed. The subarna banik the bullion trading community used to do banking in the then Bengal. Subsequently, larger banking in Bangladesh was stepwise taken over by the upcountry bankers who were known as Seth, shah etcetera but subarna baniks continued to insure in rural Bengal.With the British gradually coming over to Bengal and settling here, banking in the form of agency house, exchanging house started to flourish in kolkata. Entry of the Bengalese into banking started in the part of this century, especially in the wake of the swadeshi movement. In 1947 after the separation of India and Pakistan, bank business faced a severe misadventure as non-Muslim bankers migrated to India. In differentiate to rebuild the bank business State bank of Pakistan was realized as a primordial bank of Pakistan in 1948. In 1971 Bangladesh became independent.After spark â€Å"Bangladesh bank was automated with the asset and liabilities of former â€Å"State bank of Pakistan”. There were some(prenominal) banks before independency of Bangladesh as follows: (1) The national bank of Pakistan (2)The bank of Vowalpur ltd. (3)The premier bank ltd. (4)The Habib bank ltd. (5)The commerce bank ltd. (6)The unite bank ltd. (7)The union bank ltd. (8)The Muslim commercial bank ltd. (9)The banner bank ltd. (10) The Australasia bank ltd. (11) The eastern mer movetile bank ltd. (12) The eastern banking c orporation ltd. Bangladesh Bank nationalization Order promulgated on 26 March in 1972.After the liberation war the above 1st three banks were converted to The Sonali Bank, The 2nd two banks were converted to The Agrani Bank, the beside two banks were converted to The Janata Bank, the sideline three banks were converted to The Rupali Bank, the next one bank was converted to The Pubali Bank and the last bank was converted to The Uttara Bank. Banks in Bangladesh have like relationship with other banks in contradictory countries in order to sell their run or to purchase function from them. A summary picture of the countrys commercial banks is presented in the table on Banks of Bangladesh.Statement of Banks in the year 2011 Name of BankBranchesCorrespondent Banks Sonali Bank1307 (1)*369 Janata Bank898 (4)1 one hundred sixty Agrani Bank903980 Rupali Bank514 (1)clx Pubali Bank350433 Uttara Bank198300 National Bank66143 The City Bank 76252 coupled Commercial Bank79110 Arab †B angladesh Bank62 (1)310 IFIC Bank54 (2)200 Islami Bank Bangladesh109650 Al-Baraka Bank Bangladesh34117 Eastern Bank2137 National Credit & barter Bank27232 Prime Bank20198 South-East Bank12190 detonator of Bangladesh Bank12271 Al-Arafa Islami Bank 34127 Social Investment Bank1252 Dutch-Bangla Bank69 Mercantile Bank89 type Bank913 cardinal Bank155EXIM Bank37 Premier Bank 411 out result warrantor Bank13 Mutual Trust Bank214 Bank Asia 55 Trust Bank525 Bangladesh Commerce Bank2413 * Figures in parentheses indicate number of overseas branches 2. 5 Concluding Note Today’s bank in Bangladesh has not honest over nighttime. Before and after independence of Bangladesh the concept of bank was recrudesceed in Bangladesh gradually. So I can comfortably say that bank history is as ancient as the human civilization. Chapter 03 EXIM Bank at a Glance 3. 1 Historical Background of EXIM Bank Ltd EXIM Bank Limited was established in 1999 under the leading of Late Mr.Shahjahan Kab ir, go wrong head who had a long dream of drifting a commercial bank which would give to the socio-economic development of our country. He had a long experience as a equitable banker. A stem of highly able and successful entrepreneurs coupled their hands with the reach chairwoman to materialize his dream. Indeed, all of them proven themselves in their respective business as most successful star with their endeavor, intelligence, secure working and talent entrepreneurship. Among them, Mr. Nazrul Islam Mazumder became the honorable chairman after the demise of the honorable founder chairman.This bank starts functioning from 3rd August, 1999 with Mr. Alamgir Kabir, FCA as the advisor and Mr. Mohammad Lakiotullah as the Managing Director. Both of them have long experience in the financial sector of our country. By their pragmatic last and management directives in the operational activities, this bank has earned a secured and distinctive posture in the banking industry in wro ng of performance, growth, and excellent management. The authorized capital and stipendiary up capital of the bank are Tk. 3500. 00 grindion and Tk 2677. 80 million respectively.The bank has migrated all of its received banking operation into shariahh based Islami banking since July/2004. 3. 2 Profile of EXIM Bank •Legal Status. Public Limited confederation •Establish 1999 •Incorporated 2nd June,1999 • bodily abut Starts 3rd August,1999 •Islamic Banking 1st July,2004 • itemization with capital of Bangladesh Stock reciprocation September, 2006. leaning with Chittagong Stock Exchange September, 2006. •Inauguration of First Branch 3rd August, 1999. •Authorized large(p) TK. 1000Million •Profit TK 4967563969 million •Total mitigater TK 41793540. 962 million •Shares TK 2233254288 million •Paid up Capital TK 878. 5 Million • mental reservation Fund TK 569. 98 Million •Number of Employees 1630 Persons •No. of Branches 52 •Proposed Branches 08 3. 3 Credit Rating oLong Term A-(Adequate Safety) oShort Term ST-3 (Good Grade) 3. 4 Vision and Mission ?To be the finest bank in the banking arena of Bangladesh under the sharia guidelines. Contribute significantly to the national economy ?To maintain bodied and business ethics. ?To become a sure repository of customers money and their financial advisor. ?To make our stock skipper and rewarding to the customers/share holders. ?To display police squad spirit and professionalism. ?To have a estimable Capital Base. ?To provide high fictional character financial services in export and import trade. ?To provide excellent character reference Customer service ?To provide standard financial services. ?Wealth maximization 3. 5 Functions of the EXIM Bank Ltd ?The main working class of the EXIM Bank Ltd. s to accept deposit from various customers through various accounts. ?Provides imparts on subdued terms and conditi on. ?The bank invest it fund in to profitable sector. ?It transfers money by Demand Draft, Pay Order, on line and Telegraph Transfer. ?The bank is doing the operation of acme switch over, cheque etc. on be half of the clients. ?EXIM Bank upholds in the unusual exchange by issuing LC. ?Above all, EXIM Bank helps the businessmen financially by bounteous neglect facility for bill of exchange and by providing the facility of letter of guarantee. 3. 6 Corporate CultureThis bank is one of the most develop Banks with a distinctive corporate culture. The bank believes in shared meaning, shared sense and shared sense making. The employee of the bank can see and understand events, activities, objects and situation in a distinctive way. They mould their discretion and etiquette, character individually to suit the affair of the Bank and the needs of the customers who are of dominant importance to the bank. The people in the Bank see themselves as a wicked knit team/family that beli eves in working together for growth.The corporate culture we work has not been imposed; it has rather been achieved through our corporate conduct 3. 7 military man Resource Management of EXIM Bank gentlemans gentleman resource is the fundamental asset of the organization. Human resource approach is concerned with the growth and development of people toward higher take aim of competency, creativity and fulfillment. Therefore, human resources development has been given its due importance in an environment that’s values performance, teamwork, fairness and integrity, it has both quantities dimension .EXIM Bank recognizes that intellectual capital is the most classical asset for a financial institution. Without proper(a) and competent human resources, no organization. The Bank believes that the professional competence Bank personal and its commitment for accomplishing charge responsibilities are a first line of defense to prevent irregularities. •The objectives of Hu man Resource Management of EXIM Bank are as follows: oConduction of argumentation analysis. oPlanning employee needs and recruiting parentage candidate. oSelecting job candidates. Orienting and training of juvenile employees. oManaging proceeds and salaries (compensating Employees). oProviding incentives and benefits. oAppraising performance. oCommunicating (Interview, counseling, disciplining) oTraining and developing managers. oBuilding employee commitment. 3. 8 Organizational coordinate 3. 9 Management of Rajuk Avenue Branch Organ gram 3. 10 Management of EXIM Bank Ltd Management is the process of planning, organizing, lead and program lineling the work of organization genus Phallus and of using all purchasable resources to reach stated organizational goals.The strength of the bank depends of the strength of its management team. EXIM Bank is purple to have a team of highly motivated, well-educated and experienced executive who have been contributing substantially to the continued approach of the bank. Managerial tellingness has been measured in EXIM Bank in terms of come selected criteria such deposit militarisation, brings and advances do, impart recovery, positiveness’s and productivity, it has been found that EXIM Bank is effective in respect of branch expansion, bring disbursement, loan recovery etc.With a short span of time, EXIM Bank has become one of the leading and most successful bank not only among the third contemporaries banks but also it superseded galore(postnominal) other bank and financial institutions belonging to second and even first contemporaries banks from the point of view under the dynamic lead of its management. Management is trying to support and assist well motivated and experienced personal business to run day to day affairs of the bank smoothly.For maintains quality management, its required to train up more official at head office and branch aim in respect of sanctioning, disbursement and recovery of conviction, project appraisals, customer services etc 3. 11 Social Commitments 3. 11. 1 EXIM Bank Foundation and CSR Activities At least 2% of the one-year profit of every year is put aside for the foundation to conduct Corporate Social Responsibilities (CSR) activities. The mainstream CSR activities that are carried out through this foundation are:- •Health cope service. •Scholarship program for brilliant poor student. • information Promotion Scheme (Interest free loan). Helping people abnormal by inborn calamities. •Helping people in slum areas. •Donation to educational institutions to apparatus computer lab. •Beautification of capital of Bangladesh City. 3. 11. 1. 1 Healthcare service A 5 storied expression having 10,000 sft floor space at 840 Kazi Para, Rokeya Sarani, Mirpur, Dhaka-1216 has been hire to set up EXIM Bank Hospital. The laurel wreath of this hospital is going on in full swing. A doctor has been recruited who is working as a resident handler of the hospital. Other doctors and hospital rungs have been in the process of selection through recruitment notice al falsify published in the national dailies.They will be found as in brief as the medallion of the hospital is complete. 3. 11. 1. 2 Scholarship program for brilliant poor student This is a stipend package for poor and meritable students that take care of the beneficiaries end-to-end their student life. EXIM Bank Scholarship Programme, launched in 2006 with 61 poor and meritorious students selected from different reputed educational institutions of Dhaka City including Govt. Laboratory mellowed School, Viqarunnissa Noon School and College, Dhaka University, BUET, Dhaka Medical College, etc. nrolled as some(prenominal) as 1000 students from virtually cl reputed educational institutions across the country by 31 December 2008. They are enrolled in the this programme to be taken care of for their whole educational life display case to their fulfilment of the eligibility criteria that include satisfactory academic results, non-involvement in student politics, financial insolvency etc. So far Tk. 19. 3 million has been disbursed as scholarship under this programme. 3. 11. 1. 3 Helping people affected by natural calamities Another alert area we are dealing with as part of our CSR activities is helping people go away natural calamities.Under this welfare programmer, EXIM Bank provides moderateness in cash and kind for flood, conflagrate or cyclone victims and cold-stricken people. The aim of these CSR activities is to help the object glass group overcome their provisional tick and contribute to the socio-economic growth as soon as possible. 3. 11. 1. 4 Education Promotion Scheme (Interest free loan) Under Education Promotion Scheme, quard or interest-free loan is provided for poor and meritorious students to help them bear periodic educational expenditure including academic expenses, food, accommodation, etc.The qua rd is disbursed to the selected students in monthly installments till their accomplishing the master degree. Under this programme the students are required to repay the amount (only the principal amount) in long-run monthly installments after they have joined a confirmed job accomplishing their education properly. By 31 December 2008, Tk. 19. 7 million was sanctioned to take care of around 138 poor and meritorious students from a number of reputed educational institutions like Dhaka University, Chittagong University, Dhaka Medical College, BUET, Bangladesh Agricultural University, Shahjalal University of acquaintance and Technology etc. . 11. 1. 5 Helping people in slum areas alike natural calamities, fire breaks out sometimes in slum areas that guts the shanties and renders the affected people totally helpless. In that situation, we help the victims fight against the hard days and matter to normal life. 3. 11. 1. 6 Donation to educational institutions to setup computer lab We h ave donated to Dhaka University and Chittagong University to set up two computer labs that help the students of those universities acquire ICT knowledge. This will certainly help the students to be ready to take the challenges of this information society. 3. 11. 1. Beautification of Dhaka City In response to the call of the Dhaka City Corporation, EXIM Bank has been sharing a sincere portion of the mammoth caper of beautifying the capital since 2005. To make the capital a modern city enriched with adequate urban amenities, EXIM Bank always joins hands with the government. 3. 12 Achievement 3. 12. 1 First private sector bank to open exchange house in UK In order to ensure pitch of smooth and most reliable remittance services to NRBs vitality and working in UK, Export Import Bank of Bangladesh Limited (EXIM Bank) has started operation of its all told owned subsidiary â€Å"EXIM Exchange society (UK) Ltd”. n 30th June 2009 in London, United Kingdom, one of the oldest desti nations for the expatriate Bangladeshis. It is the first exchange house owned by a Bangladeshi private bank. Bangladesh Bank governor Dr. Atiur Rahman inaugurated the exchange house as the capitulum Guest, while H. E. Dr. M. Sayeedur Rahman Khan, Honorable High Commissioner, regime of the Peoples Republic of Bangladesh, was present in the program as special guest. Chairman of EXIM Bank and Director of EXIM Exchange Company (UK) Ltd. Mr.Md Nazrul Islam Mazumder presided over the program. Deputy High Commissioner Mr. Allamah Siddique, Director of EXIM Bank Mr. Muhammed Nurul Fazal Bulbul, Mrs Nasrin Islam, Mr. Abdullah-Al-Zahir Swapan, Mr. Md. Shahidullah, Managing Director of EXIM Bank Mr. Kazi Masihur Rahman and local elites were also present in the start ceremony. With the opening of EXIM Exchange the Bangladeshi expatriates will now be able to engineer remittances to their family members back home within shortest possible time through online transfer to all the branches of EX IM Bank.EXIM Exchange Company (UK) Ltd is located at the global kinsfolk of Wentworth Street London which is a very convenient location for the Bangladeshi community and business houses. Unlike any other exchange company operating(a) in UK, as EXIM Exchange is tout ensemble owned and supervised by EXIM Bank under the compliment of Bangladesh Bank and UK regulators, it is judge to be the most reliable and trusted Exchange kinfolk for the NRBs. 3. 12. 2 Implementation of the world renowned Core Banking package (TEMENOS T24)All the branches of EXIM Bank have been using branch based banking parcel named PcBank2000 developed by Leads Corporation, Bangladesh. In order to replace this software with a change shariah lawh Based Islami Banking software, the bank management has made an covenant woth TEMENOS Switzerland to implement its world renowned Core Banking Software T24. Implementation of this software has been started at the end of the year 2007. A team comprising very skille d employees from both business and IT of the bank has been working day and night for implementing the Software. The team has been given training on the software from Chennai, India. proceedinging very hard with the foreign consultants during the last one and half year, this team has successfully migrated our Motijheel branch and Head short letter on 03/05/2009 after completing initiative analysis, customization of the software and User Acceptance testify (UAT). The Motijheel branch and Head Office are now running on T24. This centralized software is capable enough to provide all sorts of electronic banking service to the value customers through various electronic delivery channels. Bashundhara Branch has started to use this software from seventeenth March, 2010 3. 12. 3 Conversion from Conventional Banking to shariah lawh Based ISLAMI BankingIt is a great pleasure that by the grace of Almighty Allah, the bank migrated at a time all the branches from its conventional banking ope ration into shariah based Islami banking operation without any trouble. Lot of uncertainties and adversities were there into this migration process. The officers and executives of our bank motivated the valued customers by counseling and persuasion in diminish with the spirit of Islam especially for the non-Muslim customers. Our IT division has do the excellent job of converting and fitting the conventional business processes into the processes based on Shariah.It has been made possible by adjacent a systematic procedure of migration under the leaders of honorable Managing Director. 3. 13 Performance of EXIM Bank Ltd The business of banking consists of borrowing and lend. As in other businesses, operation must be based on capital but banks employ comparatively gloomy of their own capital in relation to the total strength of their transaction. The purpose of capital on reserve accounts is primary to provide an last-ditch cover against losings on loans investments. In Bangla desh, there are many types of banks which are formed as commercial banks.But above all, EXIM Bank of Bangladesh limited is a new generation of private commercial bank. The full abbreviation of EXIM Bank Ltd. The bank has got impart personalities business man and reputed industrialist as its sponsors. The bank will be immensely benefited from the worthful advice of the experienced sponsors of the bank. The late chairmen of the bank contribute much for the solid foundation of the bank at the initial stage. Unfortunately his amiss(p) death caused a vacuum leadership of the bank. But within shortest possible time, the sponsors who in a position to select the next Chairman of the Bank.Performance of the EXIM Bank Ltd. During 2008 in all business arenas like deposit, investment and hostile Exchange exceeded performance of the previous years. The Bank achieved satisfactory progress in all areas. Growth in deposit mobilization is 48. 44%, Investments 34. 73%, Import 54. 74%, and Export B usiness 39. 55%. 3. 14 Shariah bill The Board of directors has formed a Sharia first-ratevisory Board for the Bank. Their calling is to monitor the entire Bank’s transactional procedures, & secure its Sharia compliancy.This Board consists of the following members headed by its Chairman The tasks of the Sharia supervisor in summary is replying to queries of the Bank’s administration, staff members, shareholders, depositors, & customers, follow up with the Sharia auditors and provide them with guidance, submitting reports & remarks to the Fatwa & Sharia charge Board and the administration, participating in the Bank’s training programs, participating in the supervision over the AlIqtisad AlIslami magazine, & handling the duty of being the General Secretary of the Board.Members of Shariah Council: prof Moulana Mohammad Salah Uddin Mr. Md. Nazrul Islam Mazumder Moulana Mohammad Sadequl Islam Mr. A. K. M Nurul Fazal Bulbul Professor H. M. Shahidul Islam Barakaty Mr. Md. Abdul Mannan Mr. A. S. M. Fakhrul Ahsan Mr. Zubayer Kabir Hafez Moulana Mufti Mohammad Khair Ullah Mr. Abdullah Al-Zahir Sawpan Hafez Quari Moulana Mufti Mohammad Nur Uddin Mr. Kazi Masihur Rahman 3. 14. 1 Shariah Auditing This is the civil supervisory aspect that shapes the Bank’s main feature.Its existence is part of the Sharia care procedures. One of its main tasks is to check the Sharia compliancy in the Bank’s transactional procedures in amity to the Fatwas issued in that regard, under the guidanceoftheSharia extremelyvisor. The Sharia auditor is assigned the task of revising the Bank’s transactional procedures throughout the year to check the extent to which the staff members and the different departments have abided by the regulations, advices, and Fatwas issued by the Fatwa & Sharia supervising Board, forums, & banking conferences.As well as, assuring that all the contracts that states a right for the Bank or an obligation on the Bank is certified by the Fatwa & Sharia Supervision Board. Moreover, the Sharia Auditing submits periodic reports to the Sharia Supervisor in order to be proposed to the Fatwa & Sharia Supervision Board to state what it finds tolerate in that regard. 3. 14. 2 Banking with shariah principles Export Import Bank of Bangladesh Limited is the 1st bank in Bangladesh that has converted all of its operations of conventional banking into shariah-based banking since July/2004.We offer banking services for Muslims and non-Muslims alike allowing our customers choice and flexibility in their savings and investments. Our products are approved by our Shariah Board comprising of veteran Muslim scholars of our country who are expert in all matters of Islamic finance. The process by which Noribas investments are designed and executed allows the Bank to offer a combination of Sharia residence and capital markets expertise that is uncomparable throughout the world.Nor iba is committed to the strict bond paper to the requirements of the Sharia as a result of the Banks sole focus on Sharia-compliant investments and the full supervision of its financial products and transactions by the Noriba Sharia Board. Noriba experts specifically design each of the Banks investment vehicles with the acclaim of the Noriba Sharia Board. one time the given product or transaction has been arranged, the Noriba Sharia Board carefully screens it for compliance before giving last-place applause for its implementation.This control mechanism guarantees that all aspects of Noribas final products and banking transactions are in affection with the guidelines of the Sharia. 3. 15 speedy Services The SWIFT Service helped in move and receiving the depicted objects and instructions related to NOSTRO Account operations and L/C related matters. The banks have brought 11 of branches under SWIFT network. Other branches will come under the network hopefully by the 2005. SWI FT aims to provide a prompt and efficient service to help you gain the most from our products. As a part of this service a corroboration set is supplied with each product.This Guide is a part of that documentation set and contains as comprehensive and as up-to-date a description of the product as possible. 3. 15. 1 SWIFT Network SWIFT or the Society for Worldwide Interbank Financial telecom is a cooperative institution established in 1973 by a group of banks to manage their multinational telecommunications activities. Now over 2900 member banks, and regularly processes in pointless of three million banking messages per day among banks in over 150 countries around the world own SWIFT. 3. 15. 2 SWIFT is the logical choice for most foreign financial transactionsWith over 5900 connections among the worlds major banks, the materialize is high that for any given transaction the bank you are dealing with is a SWIFT user. The SWIFT network provides facilities for ensuring that messag es are transmitted in standard, internationally accepted formats, simplifying processing and permitting end to end mechanization of many banking transactions. SWIFT is highly secure, with fat mechanisms to ensure that information remains confidential, authentic and intact. With an extremely low unit transaction cost, SWIFT is nearly always the most cost-effective means of transmitting an international message. . 15. 3 SWIFT Messages In addition to its role as network provider, SWIFT is responsible for defining and maintaining standards for international banking telecommunications. metres are necessary to ensure that banks understand the messages that they send to each other, and to allow them to process messages automatically. A. SWIFT message also comprises: ?Header containing the addresses of sending and receiving banks, the Message Type, Message preliminaryity, Delivery observe Field, Obsolescence Period, Banking Priority. ?The usage and contents of SWIFT Message Headers and Trailers are more fully toughened in the SWIFT.B. The advantages of SWIFT Message Types are: ?Predictability: Depending on the type of message, the format of the message can be predicted exactly, simplifying automation. ?Diversity: A specific Message Type exists for most banking activities. In order to use SWIFT Message Types and the SWIFT network, however, banks have to employ strict controls on the ways that messages are prepared to ensure that standards are respected and that the control Header and Trailer are complete and accurate. For this reason, most banks employ narrow down computer software, such as PC Connect, to perform message preparation and processing. . 16 ATM Network The bank has already floated tender in the national dailies to setup a network of 60 ATMs and 350 POS machines. The job of ATM interfacing with the Core Banking Software is going on. Insha-Allah, by the end of this year, at least 10 ATMs will come under our own ATM network. 3. 17 List of Branches Dha ka share ASHUGANJ branching delivery: Haji Zahirul Haque Munshi Shoping Complex, Ashugonj, Brahmanbaria. visit: 01713-063433 e-mail: [email&# one hundred sixty;protected] com facsimile: 08528-7456ASHULIA outgrowth palm: Rifat settle Plaza, Jamgora, Ashulia, Dhaka. name: 7789978,01755-583690 electronic mail: [email&# one hundred sixty;protected] om fax: 7789480 BANANI ramification citation: Kazis Haritage itinerary # 11, House # 49, Block # H, Banani, Dhaka. retrieve: 02-8837871-3, 8837874, 01713-040588,01755-584939. email: [email&#clx;protected] com facsimile machine: 02-8837875BASHUNDHARA course tree branch wield: KA-11/4, Bashundhara Road, Badda, Dhaka-1212. echo: 02-8415154, 01730-357952 e-mail: [email&#clx;protected] com telefax: 02-8413883 BOARD bazaar split verbalize: Afzal Tower, Board Bazar, National University,Gazipur. visit: 9293053, 01713-229344. email: [email&# one hundred sixty;protected] com fax: 9293054DHANMONDI sleeve target: House # 4/A, Plot # 4, Road # 16 (Old-27) Dhanmondi, Dhaka. electronic mail: [email&# one hundred sixty;protected] com ELEPHANT ROAD branch mouth: 218, Elephant Road, Bata Signal, Dhaka †1205. environ: 02-9667097-8, 01714-021767. e-mail: [email&#clx;protected] com autotype: 880-2-9667267FARIDPUR subsection lecture: Faridpur Plaza,10, Thana Road, Faridpur. surround: 0631-61170, 61128, 61174. telecommunicate: [email&#clx;protected] com telecommunicate: 0631-61182 GAZIPUR CHOWRASTA divide head: Nasir Super commercialize(1st Floor), Chandana Chowrasta, Gazipur, Dhaka. anticipate: 02-9263537, 9263538, 9256492, 01713-145498 electronic mail: [email&#clx;protected] com facsimile machine: 880-2-9256493 GULSHAN limb get over: 75, Gulshan Avenue, Gulshan-1, Dhaka. remember: 02-9862262, 9886296, 8819711, 01711-404821 email: [email&# one hundred sixty;protected] com fax: 880-2-8818703 HEAD OFFICE CORPORATE limb get by: Symphony, Plot# SE(F):9, Road# 142, Gulshan Avenue, Dhaka. addre ss: 02-8828985, 9884753, 9889567. telecommunicate: [email&#clx;protected] com telecommunicate: 02-8828962IMAMGONJ BRANCH point of reference: Haji Abdul Kader Mansion, 139 Chawk Mogoltuliy, Imamgonj, Dhaka call up: 02-7315527-8, 01730-019954 Email: [email protected] com fax: 880-2-7315530 KARWAN BAZAR BRANCH wrap up: BGMEA Complex (2nd Floor), 23/1 Panthapath Link Road, Karwan Bazar, Dhaka. auditory sensation: 02-8140204-6.Email: [email protected] com fax: 02-8140200KERANIGONJ BRANCH share: Rashed beseech Market, Bond Dakpara, Zinzira Highway Road, Keranigonj, Dhaka. hollo: 02-7763691,02-7763692, 01730-706768. Email: [email protected] com facsimile: 02-7763692 MALIBAGH BRANCH hide: 484, DIT Road, Malibagh, Dhaka †1217. call off: 02-9338578, 8319076, 01730-069695 Email: [email protected] com telefax: 880-2-9357057 MAWNA BRANCH compensate: Kitab Ali Plaza, Mawna Chowrasta, Sreepur, Gazipur. name: 06825 †52359, 06825-52831, 06825-52830, 017 13-099837, 01713-361833. Email: [email protected] om fax: 06825-52359 MIRPUR BRANCH name: Srayoshe Tower, Plot # 7, Rokeya Swarani, 10 No. Crossing, Mirpur, Dhaka †1212. earphone: 02-8054226, 8056776, 8033801. Email: [email protected] com facsimile machine: 880-2-8035668 MOTIJHEEL BRANCH call: Sharif Mansion, 56-57,Motijheel C/A, Dhaka. phone: 9568534, 9552800, 9568093, 9554988, 9554988, Dir-9553778 Email: [email protected] com telecommunicate: 880-2-9569983 NARAYANGONJ BRANCH Address: 50, SM Maleh Road, Sattar Tower, Tanbazar, Narayangonj Phone: 7640213, 7640214, 01711-439385 Email: [email protected] com facsimile machine: 7640215NAWABPUR BRANCHAddress: 198/1, Nawabpur Road, Dhaka †1100 Phone: 7125306, 7125307 Email: [email protected] com telefax: 880-2-7125308 NARIA BRANCH Address: Janakallan Bipony (1st Floor), Naria Bazar, Shariatpur. Phone: 0601-59135, 0601-59136, 01730-018970, 01730-018971 Email: [email protected] com fax: 0601-1 59124NEW ESKATON BRANCH Address: 27/1, New Eskaton Road, Dhaka. Phone: 02-8314159, 8314435, 9352854 Email: [email protected] com Fax: 880-2-9349196 PALTAN BRANCH Address: Swadesh Tower, 41/6, Purana Paltan, Box Culvert Road, Dhaka-1000. Phone: 02-9513573, 02-9513574. Email: [email protected] comFax: 02-9513572PANCHABOTI BRANCH Address: Atlanta Plaza (2nd Floor), Panchaboti, Fatullah, Narayangonj. Phone: 02-7672807,01730-001241 Email: [email protected] com Fax: 02-7672806 PANTHAPATH BRANCH Address: 19/2, West Panthapath, North Dhanmondi, Dhaka. Phone: 02-8124261, 9145911, 8141764, 9102671(EXP),9101334(IMP), 9101332(INV). Email: [email protected] com Fax: 880-2-8126191RAJUK thoroughfare BRANCH Address: 9, D. I. T Avenue, Ali Bhaban, Motijheel C/A, Dhaka- 1000 Phone: 02-9556884, 9565397, 9567115, 01713-164698 Email: [email protected] com Fax: 880-2-9555132 SAT MASJID ROAD BRANCHAddress: 47, Satmasjid Road, Dhanmondi, Dhaka †1209. Phone: 02-8118680, 914207 3, 8141249, 01730-061460. Email: [email protected] com Fax: 880-2-8142232SAVAR BRANCH Address: B-71, genus Rana Tower,Bazar Road, Savar, Dhaka. Phone: 7742883, 01755-575408. Email: [email protected] com Fax: 7742882 SHIMRAIL BRANCH Address: Haji Ahasanullah Super Market, Chittagnong RD, Siddirgonj, Narayangonj. Phone: 7694672-3 (EXT. 101), 01714-038149, 01819-253283. Email: [email protected] com Fax: 7694268SONARGAON BRANCH Address: Zohra Mansion, Mograpara, Sonargaon, Narayangonj. Phone: 0672-356103, 0672-356205, 01755-584938Email: [email protected] com Fax: 0672-356155 UTTARA BRANCH Address: House # 61/A, Road # 7, Sector # 4, Uttara modelling Town, Dhaka. Phone: 02-8919785. 8952847,01714-041406 Email: [email protected] com Fax: 880-2-8952838 Chittagong discrepancy AGRABAD BRANCH Address: Mawla Chember, 6 Agrabad C/A, Chittagong. Phone:031-727657,727658,2510733, 2511264,01711-898224 Email: [email protected] com Fax: 031-715796BAHADDARHAT BRANCH Addr ess: Khaza Super Market, 680/A, Arakan Road, Bahoddarhat, Chittagong. Phone:031-2555056,031-2555058, 01730031489. Email: [email protected] com Fax: 031-2555057BASURHAT BRANCH Address: Jharna Shopping Complex, Basurhat Bazar, Companygonj, Noakhali. Phone: 03223-56060, 03223-56073, 01755-594105, 01755-594112. Email: [email protected] com Fax: 03223-56575CDA course BRANCH Address: Commerce ensure Complex,191, East Nasirabad, Chittagong. Phone: 031-652074, 657609, 01713396538 (G. B. Dept), 01730452371 (FEX Dept). Email: [email protected] com Fax: 031-653026. CHHAGALNAIYA BRANCH Address: H. S Plaza, Matin Road, Chhagalnaiya, Feni. Phone: 03322-78018, 01713-193388. Email: [email protected] com Fax: 03322-78188. CHOWMUHANI BRANCHAddress: 60/231, D. B. Road, Chowmuhani,Begumgonj, Noakhali. Phone: 0321 †52700, 51034, 01714-084311. Email: [email protected] com Fax: 0321 †51034. COMILLA BRANCH Address: Goni Bhuiyan Mansion, A. K Fazlul Haque Road, Monoharpu r, Comilla. Phone: 081 †61850,01713-396537, 01973-229330 Email: [email protected] com Fax: 081-61722FENI BRANCH Address: Chistiya Trade Center, 308-310, S. S. K. Road, Feni . Phone: 0331-74060-1, 01730-001242. Email: [email protected] com Fax: 0331-74062 KHATUNGONJ BRANCH Address: Union Square Building, 1078, Ramjoy Mahajan Lane, Khatungonj, Chittagong.Phone: 031-615544, 610711,2851291, 01711-898223, 01713-229384 Email: [email protected] com Fax: 031-639080LAKSHAM BRANCH Address: Sufia Complex, Doulotgonj Bazar, Laksham, Comilla. Phone: 08032 †51333, 01711-726302 Email: [email protected] com Fax: 08032-51252 MODAFFARGONJ BRANCH Address: Alam Highway Supermarket (1st Floor), Modafforgonj, Laksham, Comilla. Phone: 01730-061455, 01730-061456 Email: [email protected] com PAHARTOLI BRANCH Address: Noor Jahan Tower, Alanker More, Pahartoli, Chittagong. Phone: 031-2771695, 2771696, 01714-166966 Email: [email protected] com Fax: 031-750065SHITAKUNDA B RANCH Address: KDS Logistics Building, Sonaichhori, Sitakunda, Chittagong. Phone: 03042-51093, 01713-229338. Email: [email protected] com Fax: 031-2528900 SONAIMURI BRANCH Address: Mohammadia Super Market, Sonaimuri Bazar, Sonaimuri, Noakhali. Phone: 03227-51057, 03227-51058, 01711-750610, 01711-885754 Email: [email protected] com Fax: 03227-5105 THAKUR BAZAR KRISHI / SME BRANCH Address: Toffazal Hossain Chowdhury Market, Thakur Bazar, Shahrasti, Chandpur. Phone: 08427-56873, 08427-56878, 01730-373897. Email: [email protected] com Fax: 08427-56874 Rajshahi DivisionBOGRA BRANCH Address: Sheikh Mansion, Baragola, Bogra Phone: 051-60702, 60703, 60705 Email: [email protected] com Fax: 880-51-60704 RAJSHAHI BRANCH Address: Mollah Super Market, Zero Point, Shaheb Bazar, Rajshahi. Phone: 0721-772004,772005 ,01730-097272. Email: [email protected] com Fax: 0721-772004 Syhlet Division BEANIBAZAR BRANCH Address: Zaman Plaza(1st Floor), Beanibazar, Sylhet. Phone: 08223- 56108,08223-56109, 01730-019951, 01730-452002 Email: [email protected] com Fax: 08223-56110 BISWANATH BRANCH Address: Al Madina Complex, Puran Bazar, Jagannathpur Road, Biswanath, Sylhet.Phone: 08224-56219,08224-56218,01730-735340 Email: [email protected] com Fax: 08224-56217 FENCHUGONJ BRANCH Address: Samad Plaza, Fenchugonj Bazar, Sylhet. Phone: 08226-56290 ,08226-56163. Email: [email protected] com Fax: 08226-56162 GOALABAZAR BRANCH Address: Abdul Karim Mansion, South Goalabazar, Osmaninagar, Sylhet. Phone: 08242-56255, 08242-56256,01730-735341 Email: [email protected] com Fax: 08242-56254 GOLAPGONJ BRANCH Address: Noor Mansion, Golapgonj, Sylhet. Phone: 08227-56461, 08227-56462, 01730-097268 Email: [email protected] com Fax: 08227-56463MOULVI BAZAR BRANCHAddress: Al-Aksha Shopping Centre,Kusumbag Area, Moulvibazar. Phone: 0861-63007,63008, 01714-167459 Email: [email protected] com Fax: 0861-63009 NOBIGONJ BRANCH Address: Bangla Tower, Sherpur Road, Nobigonj, Hobigonj. Phone: 08328-56526,01730-001240 Email: [email protected] com Fax: 08328-56528SYLHET BRANCH Address: Al-Hamra Shopping City, Zinda Bazar, Sylhet. Phone: 0821-724413, 0821-2831208, 01714-001964 Email: [email protected] com Fax: 880-821-725070 Khulna Division KHULNA BRANCH Address: A. Hossain Plaza 4, Sir Iqbal Road, Khulna. Phone: 041-2831470-2, 01730-018183Email: [email protected] com Fax: 041-2831473JESSORE BRANCH Address: 37, M. K. Road, Jessore. Phone: 0421 †67980-2, 01713-400273. Email: [email protected] com Fax: 0421-67983 KUSHTIA BRANCH Address: Rajob Ali Market, 152, N. S. Road, Kushtia. Phone: 071-71625, 73866, 71526. Email: [email protected] com Fax: 071-61158BARISAL BRANCH Address: 105, Nasim Biswash Lane, Sadar Road, Barisal. Phone: 0431-2177080,2177081,01714-178882. Email: [email protected] com Fax: 0431-63767 DINAJPUR BRANCH Address: Northern Plaza, Goneshtola, Dinajpur. Phone: +880-531-61880, Email: [email prot ected] comFax: +880-531-61770. RANGPUR BRANCH Address: 268, Shah Amanat Shopping Complex, Jahaj Company More, lay Road, Rangpur. Phone: 0521 -61214, 0521- 61215 Email: [email protected] com Fax: 0521 -61214 Chapter 04 Theoretical Aspect of Credit Management and Credit Policy 4. 1 Definition of Credit Policy Policy entails project course of action. EXIM Bank has its own policy granting credit although credit is always a matter of judgment applying common sense in the light of one’s experience. A sound credit policy includes among other things safety of funds invested loveseat profitability of the bank.Encouraging maximum number of small loans is better than stringency in a particular type of advances, which ensures sufficient runniness with least incidence of bad debts. It has to be borne in headland that a good loan allowed to a properly selected borrower is half collected. In order to make a good loan there should have a good loan policy. 4. 1. 2Purposes of Credit P olicy There are some objectives behind a written credit policy of Uttara Bank that are as follows: ? To provide a guideline for giving loan. ?Prompt response to the customer need. ? slenderize the procedure of giving loan. Reduce the volume of work from top take aim management. ? commissioning of authority of work from top level of management. ?To check and balance the operational activities 4. 1. 3 Formulation of a Credit Policy One of questions that should arise in a discussion of credit is who should formulate the policy. Although the ultimate responsibilities lay at the highest level in the organization i. e. the board of directors. Yet the developed drafting shall have to be do by the senior lending office in consultations with the chief executive officer and with contribution from senior officers, associates and subordinates.Obviously the level of filiation will vary with the size and structure of the organization. The matter then referred to the board for approval after c areful examination good will and discussion. 4. 1. 4 Essential Components of a Sound Credit Policy There can be some variations based on the needs of a particular organization, but at least the following areas should be covered in any comprehensive statement of credit policy and EXIM Bank’s policy also covers these areas: 1.Legal consideration: The bank’s legal lending limit and other constraints should be set forth to avoid inadvertent assault of banking regulations. 2. Delegation of authority: Each individual authorized to extend credit should know precisely how much and under what conditions he or she may commit the bank’s funds. These authorities should be approved, at least annually, by written law of closure of the board of directors and kept current at all times. 3. Types of credit extension: One of the most substances parts of a loan is a delineation of which types of loans are acceptable and which type are not. . Pricing: In any profit motivated end eavor, the impairment to be charged for the goods or services rendered is of paramount without it, individuals have few guidelines for quoting retag or fees, and the variations resulting from human nature will be a source of customer dissatisfaction. 5. Market Area: Each bank should establish its proper market area, based upon, among other things, the size and sophistication of its organization its capital standpoint, defining one’s market area is probably more measurable in the lending function than in any other aspect of banking. 6.Loan Standard: This is a definition of the types of credit to be expended, wherein the qualitative standards for acceptable loans are set forth. 7. Credit Granting procedures: This open(a) may be covered in separate manual, and normally is in larger banks. At any rate, it should not be overlooked because proper procedures are essential in loan establishing policy and standards. Without proper procedure for granting credit and constant policing to ensure that these procedures are meticulous carried out, the best conceived loan policy will not function and inevitable, problems will develop. 4. 1. 5 Lending GuidelinesAs the bank has a rate of non-performing loans. Banks luck taking applied should be contained and our focus should be to maintain a credit portfolio keeping in mind of bank’s capital sufficiency and recovery strength. Thus bank’s strategy will be animate loan processing steps including identifying , quantity , containing assays as well as maintaining a balance portfolio through minimizing loan concentration , encouraging loan diversification , expanding product range , streamlining security , insurance etc. as buffer again unhoped cash flow . 4. 1. 6 focalise on attention and Business SegmentIndustry discussion section focuses on Textile, Pharmaceuticals, Agro-based, Food and allied, Telecommunication, Power generation and distribution, Health care, Entertainment Services, Chemicals, Tran sport, Infrastructure development, gene linkage industry, Information technology, Ceramics, Others as decided from tome to time. And business segment focuses on Distribution, Brick field, Rice mill/ flour mill/ oil mill, Work order, Yarn trading, Cloth merchant, Industrial spares, Hardware, electronic and electrical goods, Construction materials, Fish trading, Grocery, sweeping/ retail, Others as dedicated from time to time . 1. 7 Types of Credit Facilities: Bank will go for ?Term financing for new project had BMRE of existing projects (large, medium, SME). ?Working capital for industries, trading services and others (large, medium, SME). ?Trade finance for import and export ?Lease finance ?Small loan for traders, micro endeavour and other productive small venture. ?Consumer finance ?Fee business 4. 2 Credit Management As EXIM bank is providing credit facility out of its total available funds, it has to manage these credits very efficiently.An efficient credit management system com prises many things and this cover the pre-sanction activities to post-sanction activities. Credit management is important as it helps the banks and financial institutions to understand various dimensions of insecurity involved in different credit transactions. At the pre-sanction stage, credit management helps the sanctioning authority to decide whether to lend or not to lend, what should be the loan price, what should be the extent of exposure, what should be the separate credit facility, what are the various facilities, what are the various hazard mitigation tools to put a cap on the stake level.At the post-sanctioning stage, the bank can decide about the depth of the review of renewal, frequency of review, cyclicity of the grading, and other precautions to be taken. Having considered the significance of credit risk, it becomes imperative for the banking system to carefully develop credit management. For this reason, the bank is maintaining a division which is well-known as c redit division. 4. 2. 1 Process of Credit ManagementCredit Management Policy for any commercial bank must have been prepared in accordance with the Policy Guidelines of Bangladesh Bank’s Focus Group on Credit and take a chance Management with some changes to meet particular bank’s internal needs. Credit management must be nonionic in such a process that the bank can minimize its losses for payment of expected dividend to the shareholders. The purpose of this process is to provide directional guidelines that will improve the risk management culture, establish nominal standards for segregation of duties and responsibilities, and assist in the ongoing improvement of concerned bank.The guidelines for credit management may be organized into the following sections: 4. 2. 2Policy guidelines a. Lending guidelines b. Credit estimate and risk grading c. Approval authority d. separatism of duties e. Internal control and compliance 4. 2. 3 Program guidelines a. Approval proces s b. Credit administration c. Credit monitoring d. Credit recovery Now the guidelines are discussed in the following: 4. 2. 4 Policy guidelines a. Lending guidelines: The lending guidelines include the following: ? Industry and Business Segment Focus Types of loan facilities ? Single borrowers/ group limits/ syndication ? Lending caps ? reject business types As a minimum, the followings are discouraged: oMilitary equipment/ weapons finance oHighly leveraged transactions oFinance of forged investments oLogging, mineral extraction/ mining, or other activity that is ethically or environmentally sensitive oLending to companies listed on CIB black list or known oCounter parties in countries subject to UN sanctions oLending to holding companies. b. Credit Assessment and Risk Grading:A thorough credit and risk assessment should be conducted prior to the granting of loans, and at least annually thenceforth for all facilities. Credit Applications should summaries the results of the risk a ssessment and include, as a minimum, the following lucubrate: ? Environment or social risk inputs ?Amount and type of loan (s) proposed ?Purpose of loans ?Loan structure ( tenor, covenants, repayment schedule, interest) ? Security arrangement ?Any other risk or issue ?Risk triggers and action plan-condition prudent, etc.Risk is graded as per Lending Risk Analysis (LRA), Bangladesh Bank’s Guidelines of mixture of loans and advances. c. Approval Authority: Approval authority may be as the following: ? Credit approval authority has been delegated to Branch Manager, Credit Committee by the MD/ Board ? Delegated approval authorities shall be reviewed annually by MD/ Board. MD/ Board: ?Approvals must be evidence in writing. Approval records must be kept on file with credit application ? The aggregate exposure to any borrower or borrowing group must be used to determine the approval authority required. Any credit suggestion that does not comply with Lending Guidelines, unheedin g of amount, should be referred to Head Office for approval. d. segregation of Duties: Banks should aim at segregating the following lending function: ? Credit approval/ risk management ?Relationship management/ merchandising ?Credit administration e. Internal restrainer and Compliance: Banks must have a segregated internal audit/ control department charged with conducting audits of all branches. 4. 2. 5 Program guidelines a. Approval process: The following diagram illustrates an example of the approval process: b. b.Cre\r\n'