Foreign Exchange Service of Bank Asia Limited Essay

1. IntroductionThe vernacularing sector in Bangladesh comprises of quatern categories of scheduled avows. These are, nationalized technical sticks (NCBs), g all all overnment sustain development finance institutions (DFIs), private commercial banks (PCBs) and remote commercial banks (FCBs). Performance of these banking sectors chthonian CAMEL framework, which fills analysis, and evaluation of the fivesome crucial dimensions of banking operations, the five indicators used in the rating clay are (I) Capital adequacy (ii) addition quality (iii) Management soundness (iv) shekels and (v) Liquidity. In addition, foreign modify returns is one of the major considering factors regarding these indicators.The bank acts as a media for the system of foreign tack policy. The principles of foreign exchange armed service involve the entire system, the media used, and the mo lowestary unit. According to Mr. H.E. EVITT un exchangeable Exchange is that section of economic encoun ter which deals with the means and methods by which right to riches in one countrys notes is converted into rights to wealth in terms of an some other countrys currency. So bank should be sensible ab step to the fore this section for the over alone development of the economy.2. Background of the cover up cardAn internship programs necessity is originated for implementing the theoretical cogniseledge in particle field. Therefore, internship program is included in BBA program. The goal of this report is to range the region and the effect of foreign exchange service in banking concerns net profit.1.3 Rational Of the theatre of operationsThe rational of the acquire is to fill out more about the occupation in practical life. This take aim in like manner helped me to go to sleep the banking system. From this study I learn about the different functions in the bank like offering online banking, pay drift, foreign remittance, foreign trade, investment etc. I overly learned how the banks perform these functions, what problems they face, and their put on in offering different ope count to their clients. therefore I was assigned in foreign trade department, so I have learned about L/C shoot downs, register and over all told L/C mechanism. In this section, how they try their go to the clients I have also learned about it. As a student of Finance, it is really important for me to consume proper knowledge in this hunt down of instruction to get better result in the future.1.4 Objectives of the Study1) The prime objective of the study is to understand various functions of trusts. I act to evaluate the preface condition of the banks. 2) To know about various products & services of this bank, and to know about the banking terms as easily as habituate with banking environment. 3) To know how they queue out the risk of the foreign trade. 4) To know how they identify these types of risk and minimize them.1.5 methodology of the studyFor preparing the report, I followed the following step Primary Information First, I unruffled data about the contrasted Exchange Service in rim Asia ltd. MCB Dikusha sleeve by tenting to personnel working(a) in the bank. Secondary Information Then in the second stage, I canvas the collected data, working in Foreign Trade Department. Again, Personal Observation File Finding Annual report cards of BAL Articles of BIOM helped to prepare this report.1.6 Limitations of the StudyNot all the information of a confide can be disclosed. It is very much essential for a bank to provide security to the customer. So the hone information might not be shown in all places. The Employees of the stick are also very busy. Therefore, the employees of the bank do not have enough meter to provide me help regarding preparing report. Therefore, it was very solid for me to collect the data and bring out the proper information in order to make report look good. I had to go finished many an(prenominal) ob stacles in order to make it presentable.1.7 Scope of the ReportThe scopes of the report are as follows The report would help the snuff it management to identify the key areas of weakness and strength in foreign exchange service. The scope of the study is based on brief explanation of BAL has been furnished. The study may help top management in planning and termination making regarding foreign exchange service.CHAPTER 2AN everyplaceVIEW OFTHE PRINCIPAL ACTIVITIES OFBANK ASIA peculiar(a)2.1 OVER VIEW OF BANK ASIA LIMITED cuss Asia Limited (Ltd) has been launched by a stem of successful entrepreneurs with recognized standing in the society. The paid up bully of the avow is 1395 million. The management of the Bank consists of a aggroup led by superior bankers with decades of experience in national and multinational merchandises. The senior management team is ably back up by a group of professionals many of whom have exposure in the international market. Bank Asia Limited is one of the troika generation private commercial banks (PCBs), in bodied in Bangladesh on 28 family line 1999 as a public limit company under the Companies Act 1994, and governed by the Banking Companies Act 1991.The Bank went for public fuck of its shares on 23 September 2003 and its shares are listed with Dhaka melody Exchange Ltd and Chittagong Stock Exchange Ltd. Bank Asia Limited acquired the trade of Bank of Nova Scotia (incorporated in Canada), Dhaka, in the form 2001 and at the fount of the year 2002, the Bank also acquired the Bangladesh operations of Muslim technical Bank Limited (MCBL), a bank incorporated in Pakistan, having two branches at Dhaka and Chittagong and one booth at Dhaka. In taking over the Bangladesh operations, all summations and certain specific liabilities of MCBL were taken over by Bank Asia Limited at book values.Within a scam span of time Bank Asia Ltd has realised itself as one of the fast growing local private banks. It has at present a engagement of Thirty trine branches serving many of the leading corporate houses and is gradually moving towards retail banking. other significant delivery channel is its own as well as share ATM Network. Bank Asia has a network of 25 ATMs out of which 6 it owns. The other 19 ATMs are shared through ETN with eleven other banks. Since its humble beginning in 1999, it knack milestone by acquiring the ancestry operations of the Bank of Nova Scotia in Dhaka, first in the banking explanation of Bangladesh. It again repeated the performance by acquiring the Bangladesh operations of Muslim mercenary Bank Ltd. (MCB), a Pakistani bank.In the year 2003 the Bank again came to the brilliance with oversubscription of the Initial Public Offering of the shares of the Bank, which was a record (55 times) in our capital markets history and its shares commands respectable premium. The asset and liability growth has been remarkable. By declination 2007 the bestow asset of the Bank grew to T k 38436 million, sum up of almost 26% comparing to 2006. As of Dec 2007 deposits increased to Tk 30004 million, an increase of 19% over that of 2006, and Loans & Advances reached Tk 28456 million, an increase of 28% over that of 2006. Bank Asia has been actively participating in the local money market as well as foreign currency market without exposing the Bank to vulnerable positions.The Banks investment in exchequer Bills and other securities went up noticeably gap up opportunities for enhancing income in the context of a regime of gradual interest rate decline. Bank Asia Ltd is maintaining its competitiveness by leverage on its Online Banking Software and modern IT infrastructure. It is the innovator amongst the local banks in introducing innovative products like SMS banking, and under the ATM Network the Stelar Online Banking software program enables direct linking of a clients account, without the requirement for a separate account.2.2 imaging STATEMENT OF BANK ASIA LIMITE DBank Asias vision is to have a poverty free Bangladesh in course of a generation in the peeled millennium, reflecting the national dream. Our vision is to build a society where mankind dignity and human rights receive the high schoolest consideration along with step-down of poverty.2.3 MISSION STATEMENT OF BANK ASIA LIMITEDTo assist in bringing high quality service to our customers and to participate in the growth and expansion of our national economy. To set high standards of integrity and bring total satisfaction to our clients, shareholders and employees. To become the most seek after bank in the country, version technology driven innovative services by our dedicated team of professionals.2.4 capital of the United States STRUCTUREBanks generally do their business with others fund, so Bank Asia Ltd is not in exception. Bank Asia Ltd uses 24% equity and 75% Debt source of capital. The capital structure is following