Premier University

An Internship Report On
“Foreign Exchange Activities of Jamuna Bank PLC
Bahaddarhat Branch”
(This Internship Report is Submitted for the Partial Fulfillment of the Degree of
Bachelor of Business Administration with a Major in Finance)

SUBMITTED TO:
Ms. Fahmida Saima
Lecturer
Finance Discipline
Department of Business Administration
Premier University, Chittagong

SUBMITTED BY:
Name: Sayed Mohammed Abidozzaman Shah
ID No: 1904010110077
Batch: 40th
Major: Finance
Program: BBA

DATE OF SUBMISSION:
6th September 2024
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Letter of Transmittal

6th September 2024

To
Ms. Fahmida Saima
Lecturer
Finance Discipline
Department of Business Administration
Premier University, Chittagong

Subject: Submission of internship report on Foreign Exchange Activities of Jamuna Bank

PLC (Bahaddarhat Branch).

I am submitting my internship report entitled “Foreign Exchange Activities of Jamuna Bank

PLC” as a partial fulfillment of the internship program of BBA at Premier University
Chittagong.
It was a great chance for me to get knowledge in such a professional environment via the
internship program. It has been a great experience for me and in this report, I tried to reflect
my learning. This report provides an explanation of the experiences that I have gathered during
3-month s internship period.
I would like to thank you for all the support and guidelines you provided, which can help me
to continue in the future.

Sincerely yours,
Sayed Mohammed Abidozzaman Shah
ID: 1904010110077
Batch: 40th
Major: Finance
Program: BBA
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Acknowledgement
All the praises are for the Almighty, who bestowed us with ability and potential to complete
this internship report. I also pay gratitude to the Almighty for enabling me to complete this
report within due time.

For making of this report, I would like to thanks my respected supervisor Maksudul Karim
(Officer), Md Abdul Mobin (AO), Md Imtiaj Uddin (EO), Tanvir Ahmed (EO) for supporting
me to learn about many organizational activities of Jamuna Bank PLC. During internship
period I was under their guideline to learn the organizational factors. They also help me to
prepare this report by giving adequate information.

My special gratitude goes to my honorable internship supervisor Ms. Fahmida Saima, Lecturer,
Finance Discipline, Premier University, Chittagong (PUC) who motivated me to choose this
topic. She helped me in every step of my internship report writing by giving proper guidance,
advice and inspiration.
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Executive Summary
The banking industry is critical to the country's economic development. Currently, Bangladesh
has 61 approved banks. Jamuna Bank PLC is a well-known private commercial bank that has
been in operation since 2001. Through exceptional leadership abilities, it has already earned
the public's respect and confidence for its satisfying and committed foreign exchange
department. Most notably, Jamuna bank is renowned for its effective foreign exchange
services, which include export, import, and remittance.

In this report I focused on the performance of JBPLC's foreign exchange operations

department. This study finds out the contribution of Jamuna Bank PLC for the economic
development of the country and makes recommendations on yearly incomes, export and
import, as well as overseas remittance.

There are five chapters which covers the report.

In chapter 1, discusses about the introductory aspect of the report includes its purpose and
objectives of report, Methodology and the report limitation. Basically, the total research
processes are described in brief.

In chapter 2, disuses about the theorical aspect of the report includes define foreign exchange,
foreign exchange regulation, letter of credit, parties of letter of credit, types of foreign
exchange, rate of exchange, tools, methods of payment, most commonly used documents, and
critical problems foreign exchange of Bangladesh.

In chapter 3, discusses about the practical aspects of the report includes organizational
overview, mission, vision, activities and function.

In chapter 4, discusses about the findings of the report includes findings (a detailed discussion
of all the objectives of the report), and SOWT analysis.

In chapter 5, disuses about the conclusion aspect of the report includes recommendation and
conclusion.

In chapter 6, disuses about the ending matters of the report includes bibliography and
references.
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Table of Content
Serial No. Title Page No.
Cover Page i
Letter of Transmittal ii
Acknowledgement iii
Executive Summary iv
Table of Content v

Chapter One: Introductory Aspect 1-3

1.1 Background of the Report 1
1.2 Objective of the Report 1
1.3 Methodology 1
1.4 Limitation 3

Chapter Two: Theoretical Aspect 4-13

2.1 Definition of Foreign Exchange 5
2.2 Foreign Exchange Regulation 5
2.3 Letter of Credit 6
2.3.1 Parties of Letter of Credit 6
2.4 Types of Foreign Exchange 7
2.4.1 Import 8
2.4.2 Methods of Import 8
2.4.3 Export 9
2.4.4 Methods of Export 9
2.4.5 Foreign Remittance 10
2.4.6 Types of Foreign Remittance 10
2.5 Rate of Exchange 11
2.6 Tools for Foreign Exchange 12
2.7 Methods of Payment of Foreign Trade 13
2.8 Critical Problems of Foreign Exchange of Bangladesh 13

Chapter Three: Practical Aspect 14-18

3.1 Organizational Overview at a Glance 15
3.2 Vision 15
3.3 Mission 16
3.4 Objectives 17
3.5 Activities and Functions of Foreign Exchange Department 17
Chapter Four: Findings 19-28
4.1 Overview of Foreign Exchange System of JBPLC 20
4.2 Import, Export and Remittance Performance of JBPLC 21
4.2.1 Import Performance of JBPLC 21
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4.2.2 Export Performance of JBPLC 22

4.2.3 Remittance Performance of JBPLC 22
4.3 Pace of Growth in Foreign Exchange Income of JBPLC 23
Contribution of JBPLC for the Economic Development of
4.4 24
the Country
4.5 SWOT Analysis 26

Chapter Five: Conclusion Aspect 29-31

5.1 Recommendation 30
5.2 Conclusion 30

Chapter Six: Ending Matters 32

6 Bibliography & References 33

List of Figure Page No.

Figure-1: Data Sources Method 2
Figure-2: Types of Foreign Exchange 7
Figure-3: Methods of Import 8
Figure-4: Methods of Export 9
Figure-5: Foreign Exchange Rates 11
Figure-6: SWOT Analysis Factors of Environment 26

List of Table Page No.

Table-1: Jamuna Bank PLC at a glance 16
Table-2: Activities and functions of Foreign Exchange Department 17
Table-3: Import Performance of JBPLC 21
Table-4: Export Performance of JBPLC 22
Table-5: Remittance Performance of JBPLC 22
Table-6: Statement of Total Income from Foreign Exchange Department 23
Table-7: Foreign Exchange Activities of JBPLC (2019-2023) 25

List of Graph Page No.

Graph-1: Import of Jamuna Bank PLC 21
Graph-2: Export of Jamuna Bank PLC 22
Graph-3: Remittance of Jamuna Bank PLC 23
Graph-4: Foreign Exchange Income 24
Graph-5: Contribution of JBPLC for the economic development of the
25
country
 Chapter One

INTRODUCTORY ASPECT
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1.1 Background of the Report:

Internship program of Premier University is a partial requirement for the graduation of BBA
students. This report was being assigned as a part of the BBA Program. To prepare the report
under the BBA program requirement, I accommodate my internship program in the Jamuna
Bank PLC. This report is being formed on the most important issue “Foreign Exchange
Activities of Jamuna Bank PLC Bahaddarhat Branch”. The goal of this analysis is to expose
the student in the organizational work situation and also to provide an opportunity for applying
classroom learning in practice. The primary and main purpose of the report is to explore the
foreign exchange activities of Jamuna Bank PLC Bahaddarhat Branch in the light of experience
and practical knowledge gained during the internship period and to familiarize with the
environment of the bank.

1.2 Objective of the Report:

1. To acquire knowledge about the foreign exchange system of Jamuna Bank PLC.
2. To evaluate the Import, Export and Remittance performance of Jamuna Bank PLC.
3. To determine the pace of growth in foreign exchange income of Jamuna Bank PLC.
4. To find out the contribution of Jamuna Bank PLC for the economic development of the
country.

I have provided a detailed discussion of the 4 objectives mentioned above in the Findings
part.

1.3 Methodology:

This report has been set up the based-on experience accumulated amid the time of internship.
For setting this report, I have also got information from annual report and website of the Jamuna
Bank PLC I have presented my experience and finding by using different charts and tables &
which are presented in the Findings & Other part.
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The details of the work plan are furnished below:

✓ Data collection method:
Applicable information for this report has been gathered basically by direct supervision of
various records, papers. Reports are operational process and distinctive faculty. No
organized poll has been utilized. Data in regards to office experiences of the bank has been
gathered through counseling with bank officers.

✓ Data sources method:

Both primary and secondary source of data are used to complete this report. These two
sources are explained below:

Source of Information

Primary Secondary

Practical deskwork of Jamuna Bank

Annual reports, website of JBPLC,
PLC, Bahaddarhat Branch,
unpublished data etc.
considerable help of employees.

Figure-1: Data Sources Method

1. Primary sources:
• Discussion with Foreign Trade Officers of Jamuna Bank PLC Bahaddarhat Branch.
• Up close and personal discussion with the bank offices and staffs.
• Foreign Trade Manual of Jamuna Bank PLC.
• Personal observation.
• Distinctive manual of Jamuna Bank PLC.
• Distinctive handouts of Jamuna Bank PLC.
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2. Secondary sources:
• Annual report of Jamuna Bank PLC.
• Various papers or document of Jamuna Bank PLC.
• Records and reports of the branch of Jamuna Bank PLC.
• Unpublished information or data.
• Files and documents of the branch.
• Different papers of Jamuna Bank PLC.
• Different text books.

1.4 Limitation:

Three months isn’t sufficient to realize about commercial banking activities through I have
been gotten most extreme help from each and every individual of the Jamuna Bank PLC.
Certainly, I couldn’t deliver a remarkable report for the time impediments. As far as possible,
the extension and measurement of the study has been abridged.

• Lacking of time, the exactness of data might not have been totally impeccable.
• Science the perfect size of information couldn’t be taken, proposed working
procedure may not be helpful without suitable changes.
• Lack of opportunity to visit more than one branch.
• The documentation part of the letter of credit concerning export and import is very
convoluted and tremendous conventions are kept up.
• The significant issue that made numerous disarrays in regards to confirmation of
applied inquiry.
• It is my first work, and inexperience was a problem.
• All framework programming is anchored.

Be that as it may, overlooking this, the report will enable us to comprehend the Foreign
Exchange division of the bank.
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Chapter Two

THEORETICAL ASPECT
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2.1 Definition of Foreign Exchange:

The term foreign exchange has different definition in different sides. In terms of section 2 (d)
of the Foreign Exchange Regulation Act 1947, adapted in Bangladesh, Foreign exchange
means foreign currency and any instruments drawn, accepted, issued under clause 13 of articles
16 of Bangladesh Bank Order 1972, all deposits credits and balance payable in foreign currency
as well as foreign currency instrument such as draft, TC, bill of exchange, promissory note and
Letter of Credit payable in any foreign currency.

Foreign exchange is the means and methods by which rights to wealth in a country's currency
are converted into rights to wealth in another country's currency. In banks when we talk of
foreign exchange, we refer to the general mechanism by which a bank converts currency of
one country into that of another.

Foreign Exchange Department is international department of Bank. It deals globally. It

facilitates international trade through its various modes of services. It bridges between imports
and exports. Foreign Exchange means foreign currency. It includes all deposits, credits and
balances payable in foreign currency as well as foreign instrument such as drafts bill of
exchange, promissory note in any foreign currency. According to Foreign Exchange Regulation
Act 1947, “Anything that conveys a right to wealth in another country is foreign exchange.

Bangladesh Bank issues license to available banks to deal with foreign currency. These banks
are known as Authorized Dealer. If the branch is authorized dealer in foreign exchange market,
it can participate foreign exchange from local country to foreign country; JBPLC Bahaddarhat
Branch is an authorized dealer of Bangladesh Bank.

2.2 Foreign exchange regulation:

❑ Local Regulation:
✓ Foreign Exchange Regulation Act 1947.
✓ Bangladesh Bank issue foreign exchange circular time to time to control import and
remittance business.
✓ Ministry of commerce issues exports-Import Policy guidelines.
✓ Bangladesh Bank published two volumes in 1996.
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❑ International Regulation:
✓ International Chamber of Commerce is a world-wide non-governmental origination of
thousands of companies which is found in 1919; ICC has issued publication like UCPDC
that is being followed by all the member countries.
✓ There is also international court of arbitration to solve the international business problems.
✓ WTO is another international trade organization established in 1995.
✓ General Agreement on Tariff & Trade was established in 1948 after completing of its 8th
round which is abolished and replaced by WTO.

2.3 Letter of Credit:

Letter of credit means any arrangement whereby a Bank (the issuing Bank) is committed (on
behalf of the buyer/applicant) to pay certain amount at the seller’s disposal under some agreed
conditions. The three major types of L/C are:

• Cash L/C:
It also called L/C at sight means payment should be done as soon as shipping documents
reach to the advising bank. Normally banks get 5 days’ time for checking the documents.
• Deferred L/C:
In case of this payment are made on the maturity date of the L/C. In case of this L/C it is
written on the L/C that the payment will be made after 90 or 180 or 45 days of the shipment.
• Back-to-back L/C:
In case of this L/C, payment is made by another valued L/C. It is mostly used in RMG
sector where exporters are needed to import something from the same party in business.

2.3.1 Parties of Letter of credit:

Different parties involved in the process of LC are as follows:

a) Buyer (Applicant): While buying products from the seller the buyer makes a request to a
bank for the issuance of LC as an applicant. They are importers who are buying products
from abroad.
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b) Seller (Beneficiary): Those who are willing to sell their goods to buyers are called sellers
or beneficiaries. They will receive the payment. They are considered exporters in
international trade.
c) Issuing Bank (Applicant Bank): Applicant bank issues LC in the best interests of the
applicant conferring to the trade covenant of the buyer and the seller.
d) Advising Bank (Beneficiary Bank): Advising bank notifies the exporter about LC
issuance. They are responsible to check the authentication of LC. At Jamuna Bank PLC.
(Bahaddarhat Branch), the above mention four parties are involved. Some other parties that
can be.
e) Nominating Bank: Nominating Bank can be considered either as a separate bank or as an
advising bank. Nominating Bank negotiates the documents given by the exporter.
f) Confirming Bank: Additional guarantee is provided through the Confirming Bank of LC
issued by issuing bank. If an exporter is dissatisfied with the issuance of issuing bank, then
the involvement of the confirming bank becomes necessary.

2.4 Types of Foreign Exchange:

There are mainly three types of transactions which lead to foreign exchange. These are:

a) Import
b) Export
c) Foreign Remittance

Activities of
Foreign Exchange

Foreign
Export Import
Remittance

Figure-2: Types of Foreign Exchange

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2.4.1 Import:

Import means purchase of goods and services from the foreign countries. Normally consumers,
firms, industries and Government of Bangladesh import goods to meet their various necessities.
So, in brief we can say that import is the flow of goods and services purchased by economic
agent staying in the country from economic agent staying abroad.

2.4.2 Methods of Import:

There exist a number of procedures of importing goods from the foreign country. Goods may
be directly imported from the foreign manufactures or they may be imported through the selling
agents of the foreign producers. Whoever does the function there are some stages of
importing, which are as follows:

Procuring Import License

Placing The Order

Opening Later of Credit

Procuring Foreign Exchange

Delivery of Goods

Figure-3: Methods of Import

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2.4.3 Export:

Export means to transfer goods from one place to another. The exporter must pay duty on goods
exported. The exporter should obtain registration from the office the chief controller of import
& export, trade license ERC, LCA to open export L/C.

2.4.4 Methods of Export:

The function there are some stages of exporting, which are as follows:

Receiving The Order

Asking To Open L/C

Booking of Freight

Exchange Rate

Procurement of Goods

Getting The Goods Insured

Shipment of Goods

Preparing Export Papers

Securing Payment

Closing Transaction

Figure-4: Methods of Export

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2.4.5 Foreign Remittance:

Foreign Remittance refers to the transfer of fund from one country to another either through
the office channel i.e. banking channel, post office or the informal channel. In Bangladesh still
informal market is playing a significant role. However, we shall limit our discussion within the
official channel.

Remittances are cash sent to Bangladesh by immigrant workers and professionals and are
regarded as the most vital and significant influence in the country's future economic
development. It has a significant impact on the country's overall socio-economic development,
such as poverty alleviation, job creation, GDP growth, reducing the balance of payments,
enriching the foreign currency reserve, reducing reliance on foreign assistance, adoption and
implementation of new development plans, and so on.

In foreign exchange operation, JBL plays a major role in transferring money both in and out of
the country, under the law of the regulation of foreign exchange Act of 1994 which is in article
no (8) in the international monetary fund.

2.4.6 Types of foreign remittance:

JBPLC Bahaddarhat Branch is an authorized dealer of foreign exchange. Their dealing in

foreign exchange involves buying and selling of foreign exchange covering inward remittances
received from abroad and outward remittances sent abroad. Foreign Remittance has two wings
i.e. Inward and Outward Remittance.

1. Inward remittance: Transfer money or funds from the outside country to the home country.
2. Outward remittance: Transfer money or fund from the home country to outside of any
country.
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2.5 Rate of exchange:

It means the price of one currency expressed in terms of another currency. Rate of exchange is
the rate by which the relation among different foreign currencies is established in terms of local
currency of that country. Value at which one country currency can be converts into another’s
country. In exercise of the power conferred by section three of exchange regulation ACT 1947.
Bangladesh has issued license to certain bank to deal in foreign exchange is called authorized
dealer.
• Spot rate: It is quoted for transaction where the foreign currency bought or sold is to be
received or delivered immediately. The current rate of exchange quoted in the foreign
exchange market.
• Forward rate: When a rate is applied to a future date it is called forward rate at which
foreign exchange can be sold or bought for delivery at a future time.
• Cross rate: The rate of exchange quoted expressing the quotation for any two currencies
in term of a third.
• SWAO: Sport rate against forward purchased or a spot purchase against forward rate.
• Direct quotation: Rates are quoted in term’s foreign currency per unit of foreign currency.
• Indirect quotation: Rates are quoted in terms of foreign currency per one unit of home
currency.
• Buying rate: Authorized dealer applies this at the time of purchasing / negotiation of export
document and payment against TT. MT, check and drafts required from abroad.
• Selling rate: Authorized dealer applies this at the time of lodgment of import documents,
realization of LC margin from importer and other foreign exchanges transaction on
overseas bank.
• Forward rate at a discount: when forward rate is higher than that of spot rate.
• Forward rate at a premium: when forward rate is lower than that of spot rate.

Figure-5: Foreign Exchange Rates

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2.6 Tools for foreign exchange:

• Importer (Buyer)/Applicant
• The Issuing Bank (Opening Bank)
• The Advising Bank/Notifying Bank
• Exporter/Seller (Beneficiary)
• Confirming Bank
• Negotiating Bank
• The Paying/Reimbursing/Accepting/Remitting Bank.

a) Applicant: The person/body (customer of the bank) who requests the bank (opening bank)
to issue letter of credit. As per instruction and on behalf of the applicant, bank open L/C in line
with the terms and conditions of the sales contract between the buyer and seller.

b) Opening bank/Issuing Bank: The bank which open/issue L/C on behalf of the
applicant/importer. Issuing bank’s obligation is to make payment against presentation of
documents drawn strictly as per terms of the L/C.

c) Advising/Notifying Bank: The bank through which the L/C is advised/forwarded to the
beneficiary (exporter). The responsibility of advising bank is to communicate the L/C to the
beneficiary after checking the authenticity of the credit. The advising bank acts only as agent
of the issuing bank without having any engagement on their part.

d) Beneficiary: Beneficiary of the L/C is the party in whose favor the letter of credit is issued.
Usually, they are the seller or exporter.

e) Confirming Bank: The Bank, which under instruction in the letter of credit, adds
confirmation of making payment in addition to the issuing bank. It is done at the request of the
issuing bank having arrangement with them. This confirmation constitutes a definite
undertaking on the part of confirming bank in addition to that of issuing bank.

f) Negotiating Bank: The Bank, which negotiate documents and pays the amount to the
beneficiary when presented complying credit terms. If the negotiation of documents is not
restricted to a particular bank in the L/C, normally negotiating bank is the banker of the
beneficiary.
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g) Reimbursing/Paying Bank: The Bank nominated in the credit by the issuing bank to make
payment stipulated in the document, complying with the reimbursing bank.

2.7 Methods of Payment of Foreign Trade:

a) Cash in advance: Payment is received before transferring goods in order to avoid
credit risk.
b) Documentary Collections: In this method the seller collects money by forwarding
documents to the buyer’s banks.
c) Open account: Under this payment method with due payment, products are shipped.
This is beneficial for the importer & riskier for the exporter.
d) Consignment: Under this payment method, the exporter is paid if the products have
been sold. This becomes very risky for the exporter.
e) Documentary Credit: Letter of credit facilitates foreign trade. It acts as an obligation
for the buyer to pay the seller on time. It helps to reduce risk in foreign trade & make
the transaction more secure. As a result, helps the economy of a country to flourish
through import & export. Moreover, fraudulent activities can be eradicated as banks
are involved in the process.

JBPLC (Bahaddarhat Branch) doesn’t issue LC for the government sector. Their 100% of the
Letter of Credit are from the private sector.

2.8 Critical Problems of Foreign Exchange of Bangladesh:

As a developing country, here there is a great opportunity to expand a business easily. Human
resources cost are also cheap. On the other hand people have strong faith to the banking sector.
But this sector is not free from problems. Some challenges of the banking sector are:
1. Global economic crisis which decreases the consumptions of goods and also the exports.
2. Export volume has dropped due to lack of global demand.
3. Lack of diversification, especially for export sector.
4. Very high dependency on Textile and RMG Sectors to export.
5. Slow recycling of investment of commodity in commercial sectors.
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Chapter Three

PRACTICAL ASPECTS
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3.1 Organizational overview at a glance:

The JAMUNA Bank PLC (JBPCL) is one of Bangladesh's largest commercial private banks.
It was founded on June 3, 2001, and was registered under Bangladesh's Companies Act, 1994.
It had 169 branches as of 6th May 2024, and its present headquarter is located at JAMUNA
Bank Tower, Gulshan-1, Dhaka, Bangladesh. ("JAMUNA Bank PLC.", 2024)

Jamuna Bank PLC is also named in the list of top 10 banks announced by Bangladesh Bank in
2024. The foreign exchange activities of Jamuna Bank PLC, particularly at the Bahaddarhat
branch, are a significant part of the bank's overall operations, focusing on various international
banking services. Jamuna Bank maintains a wide network of correspondent banks worldwide,
which supports its trade services, including the issuance and advising of Letters of Credit (LC),
bank guarantees, and the handling of foreign remittances. The bank also engages in trade
finance activities, providing both pre-shipment and post-shipment finance, as well as
facilitating the negotiation and purchase of export bills.

The Bahaddarhat branch of Jamuna Bank plays a key role in these activities, offering services
such as foreign currency dealings and the processing of import and export transactions. This
branch, located in Chittagong, is strategically important due to its proximity to major
commercial hubs, making it a vital point for international trade operations.

Moreover, Jamuna Bank has an Offshore Banking Unit (OBU) that enhances its capabilities in
handling foreign currency transactions, further diversifying its foreign exchange earnings. This
unit supports foreign investors and contributes to the export growth of Bangladesh. The foreign
exchange operations at the Bahaddarhat branch are integral to Jamuna Bank's contribution to
international trade and the overall economic growth of Bangladesh.

3.2 Vision:

Jamuna Bank PLC wants to establish itself as one of the major banks of Bangladesh. Its target
is to contribute in the economic growth of this country and play a pivotal role in it. The slogan
of Jamuna Bank is - Jamuna Bank is a good bank.
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3.3 Mission:
• Jamuna Bank PLC is committed to providing a comprehensive range of foreign exchange
services, including currency exchange, trade finance, and remittances.
• The bank aims to deliver efficient and reliable solutions tailored to the specific needs of
businesses and individuals involved in international trade.
• By leveraging a wide network of correspondent banks, Jamuna Bank enhances its foreign
exchange capabilities and global reach.
• The bank is dedicated to supporting Bangladesh's economic growth by facilitating
seamless international transactions.
• Maintaining high standards of service quality and operational excellence, Jamuna Bank
strives to build strong, long-term relationships with its clients.
Table-1: Jamuna Bank PLC at a glance

Name Jamuna Bank PLC

Status Public Limited Company
Logo
Date of Incorporation June 2, 2001
Date of Commencement June 3, 2001
The bank raised its initial capital through a
Subscription for Shares
public subscription of shares.
Listed in Dhaka Stock Exchange Yes
Listed in Chittagong Stock
Yes
Exchange
Jamuna Bank Tower, Plot-14, Block-C, Bir
Head Office Uttam A.K. Khandakar Road, Gulshan-1,
Dhaka-1212, Bangladesh
Chairman Md. Saidul Islam
Managing Director Mirza Elias Uddin Ahmed
Number of Branches 169 branches across Bangladesh
Number of Employees 3,049 employees
Deposit Scheme, Credit Facility and Foreign
Services Provided
Exchange Services
Core Banking Software, Online Banking
Platforms, Mobile Banking Apps (Sadhin),
Technology Used
Advanced Cybersecurity Measures, ATM
Network
E-mail [email protected]
Website www.jamunabankbd.com
SWIFT JAMUBDDH037
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3.4 Objectives:
• Earning and Maintaining CAMEL Rating ‘Strong’.
• Establishing Relationship Banking and Enhancing Service Quality through Strategic
Marketing Plans.
• Becoming one of the Best Banks in Bangladesh in Terms of Profitability and Asset Quality.
• Implementing Fully Automated Systems through IT Integration.
• Achieving Adequate Return on Investment.
• Maintaining an Acceptable Risk Position.
• Ensuring Adequate Liquidity.
• Sustaining Healthy Business Growth with a Positive Image.
• Maintaining Effective Control Systems and Transparent Procedures.
• Developing and Retaining a High-Quality Workforce.
• Optimally Utilizing Available Resources.
• Ensuring Ethical Norms, Transparency, and Accountability at All Levels.

3.5 Activities and functions of Foreign Exchange Department:

a) Imports: b) Export:
✓ Opening of letter of credit (L/C) ✓ Pre – Shipment advances
✓ Advance bills ✓ Purchase of foreign bills
✓ Bills for collection ✓ Negotiating of foreign bills
✓ Import loan and guarantees ✓ Export guarantees
✓ Advising/ confirming letters – letter
of credit
✓ Advance for deferred payment
exports
✓ Advance against bills for collection
c)Remittances: d) Dealings:
✓ Issue of DD, MT, TT, etc. ✓ Rate computation
✓ Payment of DD, MT, TT etc. ✓ Maintenance of foreign currency
✓ Issue and enhancement of traveler’s account
cheque ✓ Forward contracts
✓ Sale and enhancement foreign ✓ Exchange position and cover
currency note operations
✓ Nonresident accounts

Table-2: Activities and functions of Foreign Exchange Department

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❑ Most Commonly Used Documents in Foreign Exchange:

→ Documentary letter of credit
→ Bill of exchange
→ Bill of Landing
→ Commercial Invoice
→ Certificate of origin of goods
→ Inspection certificate
→ Packing List
→ Insurance certificate
→ Pro-forma invoice/ indent
→ Master receipt GSP certificate
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Chapter Four

FINDINGS
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4.1 Overview of Foreign Exchange System of JBPLC:

The foreign exchange system of Jamuna Bank PLC involves several key services:

(i) Import and Export Financing:

• Letters of Credit (LC): The bank provides LC facilities for both imports and exports,
allowing businesses to engage in international trade with financial backing.
• Export Financing: Pre-shipment and post-shipment financing are available to support
exporters.
• Import Financing: The bank provides trust receipt loans, payment against documents
(PAD), and loan against imported merchandise (LIM) to facilitate imports.

(ii) Remittance Services:

• Inward Remittance: Jamuna Bank facilitates the remittance of funds from abroad into
Bangladesh, working with various international partners.
• Outward Remittance: It also supports the outward remittance for purposes like student
fees, medical treatment, and other legal payments.

(iii) Foreign Exchange Dealing:

• Spot and Forward Contracts: The bank engages in currency trading, offering spot and
forward contracts to hedge against currency risks.
• Currency Conversion: Jamuna Bank offers currency conversion services for various
currencies, facilitating international trade and travel.
• Foreign Currency Accounts: The bank provides foreign currency account services for
individuals and businesses, allowing them to hold and transact in foreign currencies.

(iv) Compliance and Regulations:

• Bangladesh Bank Guidelines: Jamuna Bank operates its foreign exchange services in
compliance with the central bank's regulations, including Anti-Money Laundering (AML)
and Know Your Customer (KYC) requirements.
• Reporting and Documentation: The bank ensures proper documentation and reporting
for all foreign exchange transactions, as required by law.

(v) Technology and Infrastructure:

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• Online Banking: Jamuna Bank offers online and mobile banking platforms,
enabling customers to manage their foreign exchange transactions conveniently.
• SWIFT Network: The bank uses the SWIFT network for secure and fast
international transactions.

4.2 Import, Export and Remittance Performance of JBPLC:

A relative comparison of Import, Export & Remittance is made for Jamuna Bank. The
information is shown in table, graph and also will have an interpretation.

4.2.1 Import Performance: Import performance of Jamuna Bank PLC from the year 2023
to 2019 is given in the following table: 1,00,00,000

Year 2023 2022 2021 2020 2019

Import
40 60 50 180 220
(Figure in million BDT)

Table-3: Import Performance of JBPLC

Import Performance of JBPLC

(Figure in million BDT)

250
200
150
100
50 Import
0
Year 2023 Year 2022 Year 2021 Year 2020 Year 2019
Import 40 60 50 180 220
Year

Graph-1: Import of Jamuna Bank PLC

Interpretation: Jamuna Bank PLC's import performance has shown a declining trend, with a
decrease from 220 million BDT in 2019 to 40 million BDT in 2023. This could be considered
a positive sign for the economy, as it may indicate a reduction in the demand for imported
goods and a shift towards more local production and self-sufficiency.
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4.2.2 Export Performance: Export performance of Jamuna Bank PLC from the year 2023
to 2019 is given in the following table:

Year 2023 2022 2021 2020 2019

Export
290 130 70 40 50
(Figure in million BDT)

Table-4: Export Performance of JBPLC

Export Performance of JBPLC

(Figure in million BDT)

400
300
200
100 Export
0
2023 2022 2021 2020 2019
Export 290 130 70 40 50

Year

Graph-2: Export of Jamuna Bank PLC

Interpretation: Jamuna Bank PLC's export performance has shown a positive trend, with a
significant increase from 40 million BDT in 2020 to 290 million BDT in 2023. This indicates
the bank's ability to support and facilitate the growth of the export sector, which is generally
considered a positive development for the overall economy.

4.2.3 Remittance Performance: Remittance performance of Jamuna Bank PLC from the
year 2023 to 2019 is given in the following table:

Year 2023 2022 2021 2020 2019

Remittance
40 90 115 105 110
(Figure in million BDT)

Table-5: Remittance Performance of JBPLC

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Remittance Performance of JBPLC

(Figure in million BDT)

150

100

50
Remittance
0
2023 2022 2021 2020 2019
Remittance 40 90 115 105 110
Year

Graph-3: Remittance of Jamuna Bank PLC

Interpretation: Jamuna Bank PLC's remittance performance has shown a declining trend, with
a significant drop from 115 million BDT in 2021 to 40 million BDT in 2023. This could be
considered a negative sign for the economy, as remittances are an important source of foreign
currency and can contribute to economic stability and growth.

4.3 Pace of growth in Foreign Exchange income of JBPLC:

Jamuna Bank PLC's (JBPLC) income from foreign exchange activities has been an important
part of its business. This income comes from helping companies with international trade, like
issuing letters of credit and providing financing for exports and imports. It also includes money
JBPLC makes from handling remittances, which are payments sent home by Bangladeshis
working abroad. This income reflects JBPLC's important role in supporting the country's global
trade and financial system.

Year Amount of Income (in million BDT)

2019 380
2020 325
2021 235
2022 280
2023 370

Table-6: Statement of Total Income from Foreign Exchange Department

Interpretation: JBPLC's foreign exchange income has had ups and downs over the years, but
it has overall shown a positive trend. The income reached a high of 370 million BDT in 2023,
 P a g e | 24

after a dip in 2021. This suggests JBPLC has been able to take advantage of opportunities in
the foreign exchange market, which is good for Bangladesh's economy as it helps facilitate
international trade and remittance flows.

Amount of Income (in million BDT)

2023 370

2022 280
Year

2021 235

2020 325

2019 380

0 50 100 150 200 250 300 350 400

2019 2020 2021 2022 2023
Amount of Income (in million BDT) 380 325 235 280 370

Amount of Income (in million BDT)

Graph-4: Foreign Exchange Income

The graph shows JBPLC's foreign exchange income over time. It had a strong recovery in 2023
after a temporary decline, indicating the bank's ability to adapt to changes in the foreign
exchange market. This is a positive sign for the bank's contribution to Bangladesh's economic
development.

4.4 Contribution of JBPLC for the economic development of the country:

Jamuna Bank PLC (JBPLC) has significantly contributed to the economic development of
Bangladesh through its foreign exchange activities. These activities include facilitating
international trade by issuing Letters of Credit (LCs), providing trade finance, and handling
remittances. The bank's operations in foreign exchange not only support the country's export
and import sectors but also help stabilize the national economy by enhancing foreign exchange
reserves. From 2019 to 2023, JBPLC's foreign exchange activities have shown consistent
growth, reflecting its pivotal role in the economic landscape.
 P a g e | 25

Total Foreign
Import Export
Year Remittances Exchange
Financing Financing
Activities
2019 220 50 110 380
2020 180 40 105 325
2021 50 70 115 235
2022 60 130 90 280
2023 40 290 40 370

Table-7: Foreign Exchange Activities of JBPLC (2019-2023)

Interpretation: Jamuna Bank PLC's foreign exchange activities have been a significant
contributor to Bangladesh's economic development. Despite some fluctuations, the bank's
consistent engagement in import/export financing and handling remittances, which totaled 370
million BDT in 2023, demonstrates its pivotal role in supporting international trade and
enhancing the country's foreign exchange reserves. This is a positive development for the
national economy.

Total Foreign Exchange Activities of JBPLC

(2019-2023)
800
Amount (in million BDT)

700
600
500
Total Forex Activities
400
Remittances
300
Export Financing
200
100 Import Financing

0
2019 2020 2021 2022 2023

Year

Graph-5: Contribution of JBPLC for the economic development of the country

The graph shows a fluctuating but overall positive trend in JBPLC's foreign exchange activities
from 2019 to 2023. The significant increase in export financing from 2022 to 2023 is a
particularly noteworthy development, as it suggests the bank's ability to support the country's
export sector. The dip in remittances during the same period is a potential concern, but the
overall growth in total foreign exchange activities indicates JBPLC's continued contribution to
the economic development of Bangladesh.
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4.5 SWOT Analysis:

SWOT analysis is a simple framework for generating strategic alternatives from a situation
analysis. In Bangladesh currently, 61 banks are continuing their operations. So, in this
competitive banking industry SWOT analysis can help Jamuna Bank PLC for analyzing their
performance which can help the organization for future improvement. While doing my
internship at Jamuna Bank PLC I have monitored their operation very closely and presented
my findings through SWOT analysis so that the performance of the organization can be
evaluated. SWOT analysis explains in two broad ways on viewed of organizations
environment. These are:

a) Internal Environment Analysis: It includes:

• Strength
• Weakness
b) External Environment Analysis: It includes:
• Opportunity
• Threats

SOWT Analysis
Factors of Environment

Internal Environment External Environment

Strength Weakness Opportunity Threat

Figure-6: SWOT Analysis Factors of Environment

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❑ Strength:
✓ The top management of Jamuna Bank is very much skillful.
✓ The customers of JBPLC always get fast & consistent quality service.
✓ Jamuna Bank PLC uses internet banking operation.
✓ JBL has recently introduce mobile banking (SHADHIN) and also a member of SWIFT.
✓ The bank maintains a good relationship with their corporate clients.
✓ The foreign exchange division of JBPLC is performing very well.
✓ During this changing business environment, JBPLC is constantly updating its operating
system and has introduced Mobile Banking system. In January 2022 new software will be
updated to be more efficient. The App name is SHADHIN.
✓ The bank has invested in CSR activities very well around the country. For the social
development of Jamuna Bank Foundation has incorporated various programs.

❑ Weakness:
✓ Jamuna Bank PLC has fewer promotional activities.
✓ JBPLC has less initiative while analyzing opportunities for improvement.
✓ The foreign trade division collects documents from their clients in the traditional way, so
it takes time to start the process.
✓ Though the research & development department helps an organization in upgrading
products or services but in JBPLC there is no such distinct department.

❑ Opportunities:
✓ JBPLC can bring new innovation in product and servicers.
✓ New software update can foster the overall operation process.
✓ E-banking will open new doors for JBPLC as the demand of the customer is changing.
✓ Banking is considered the backbone of the economy. The government is providing full
support to the banks. It is a matter of great opportunity that Bangladesh Bank is rendering
support to the listed banks. Investment in research & development can result in new product
innovation.
✓ JBPLC can operate more smoothly by recruiting more skilled people.
✓ JBPLC can expand foreign exchange activities because they have already a big number of
exporter and importer on their faith.
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❑ Threats:
✓ Acquisition and mergers in financial institutions can make the industry concentrated.
✓ For the low entry barrier, there are many new competitors. So, in the local market
competition is increasing.
✓ Poor infrastructure of our country in terms of technological advancement.
✓ Interest rate reduction by the government.
✓ Political & economic instability.
✓ Multinational banks are increasing the competition with their superior services.
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Chapter Five

CONCLUSION ASPECT
 P a g e | 30

5.1 Recommendation:

In my opinion, JBPLC needs to improve their few things which will help them get more success
and sustainability in the future. Those are describing below:

• JBPLC should upgrade their IT system inappropriate way. Though they are using the
latest technologies personally I found that the server is very slow sometimes. The bank
should introduce more deposit schemes for lower-level customers
• There should be regular basis need-based training also performance evaluation for
employees of JBPLC.
• JBL should attract new little L\C party and new customer by different offers and
promotions.
• They should have own R&D division.
• The bank officials should respond properly to the various types of problems faced by
customers.
• I would recommend JBPLC to run their promotional activities in active manner
• Have to have strong performance report which should be up to date.
• For smooth operation in foreign division, JBL should recruit more dynamic and skilled
human resources.
• I would recommend JBPLC focus a portion of its attention on retail banking in addition
to business banking to attract a broader range of customers and obtain a larger market
share. Furthermore, JBPLC should avoid making huge loans without good
documentation.
• Rapid attention should be given to the FDR customers if the bank thinks that they does
not want to lose new customer only then.
• To continue in the market and compete with the industry's top, JBPLC must be able to
give better and smoother services to its customers than its competitors.

5.2 Conclusion:

Bank is a very important and vital for economic development in mobilizing capital and other
resources. JBPLC is also contributing to the advancement of the socioeconomic condition of
the country. To keep pace with the current market and demand, JBPLC is following several
strategies and taking new initiatives, offering new products and services to the customers. The
 P a g e | 31

bank should maintain well-structured communication from upper level to lower level. JBPLC
have a strong position in the competitive market. It is among one of the fastest growing Bank.

As the economy of Bangladesh is increasing so is the foreign trade and JBPLC like always
have played its role in making sure that things go smoothly. The bank is doing its best to
provide better Import, Export and Remittance services to the customers.

Export, Import and Remittance are all showing positive trends even after the global challenges
that we are facing today. But the foreign trade handled by bank decreased in recent year, this
may be because of opening of new branches in different business centers and the instability in
the economy of the world.
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Chapter Six

ENDING MATTERS
 P a g e | 33

6. Bibliography & References:

Bibliography:

• Madura, Jeff. International Financial Management. 13th ed., Cengage Learning,

2018.
• Chowdhury, Tanbir Ahmed., and Kashfia Ahmed (April,2009), “Performance
Evaluation of Selected Private Commercial Banks in Bangladesh”. International
Journal of Business and Management, vol.4, No.4.
• Brigham, Eugene F., and C. Michael Ehrhardt. Financial Management: Theory and
Practice. South-Western Cengage Learning, 2005.
• Siddique, S. H., and Islam, A. F. M. M. (2001). “Banking Sector in Bangladesh: Its
Contribution and Performance”. Journal of Business Research, Jahangirnagar
University, Vol. 3.

References & Other Sources:

• Jamuna Bank PLC. (2024). Website. Retrieved from

https://jamunabankbd.com/
• Bangladesh Bank Foreign Exchange Guidelines, Volume-1
• Authorized Dealers and Money Changers in Foreign Exchange. Guidelines for
Foreign Exchange Transactions. 2009.
• Annual Reports (2019-2023). Jamuna Bank PLC Bahaddarhat Branch.
• Jamuna Bank PLC. Foreign Trade Manual. Jamuna Bank PLC.
• Jamuna Bank PLC. Unpublished Documents and Records. Jamuna Bank PLC,
Bahaddarhat PLC, Chittagong.
• Uddin, Imtiaz, Foreign Trade Officer, Jamuna Bank PLC, Bahaddarhat Branch,
Chittagong. Personal Interview. 10 Jun. 2023.
• Ahmed, Tanbir, Foreign Exchange Officer, Jamuna Bank PLC, Bahaddarhat Branch,
Chittagong. Personal Interview. 14 Aug. 2023.