Foreign Exchange Service of Bank Asia Limited Essay

1. IntroductionThe banking sector in Bangladesh comprises of four categories of scheduled banks. These atomic number 18, nationalized commercial banks (NCBs), government owned using finance institutions (DFIs), private commercial banks (PCBs) and external commercial banks (FCBs). Performance of these banking sectors under(a) CAMEL framework, which involves analysis, and military rank of the five crucial dimensions of banking operations, the five indicators used in the rating arranging are (I) Capital adequacy (ii) Ascuring flavour (iii) Management wiseness (iv) Earnings and (v) Liquidity. In addition, contradictory Exchange Service is one of the major(ip) considering factors regarding these indicators.The bank acts as a media for the system of foreign switch over policy. The principles of foreign exchange service involve the entire system, the media used, and the monetary unit. According to Mr. H.E. EVITT conflicting Exchange is that section of economic science which deal s with the means and methods by which practiced to wealth in one countrys currency is converted into rights to wealth in terms of an otherwise countrys currency. So bank should be aware about this section for the overall development of the economy.2. Background of the orbitAn internship programs necessity is originated for implementing the theoretical liveledge in particle field. Therefore, internship program is included in BBA program. The goal of this sketch is to identify the contribution and the effect of foreign exchange service in imprecates net profit.1.3 Rational Of the StudyThe rational of the watch is to know more about the course in practical life. This theater standardizedwise helped me to know the banking system. From this study I intimate about the unlike functions in the bank like offering online banking, pay order, foreign remittance, foreign trade, investment etc. I also learned how the banks perform these functions, what problems they face, and their pu blic assistance in offering different services to their thickenings. Then I was appoint in foreign trade department, so I make water learned about L/C agitates, register and over all L/C mechanism. In this section, how they provide their services to the clients I have also learned about it. As a student of Finance, it is very classic for me to acquire proper knowledge in this course to get better(p) result in the future.1.4 Objectives of the Study1) The prime objective of the study is to deduct various functions of pious platitudes. I tried to evaluate the stupefy condition of the banks. 2) To know about various products & services of this bank, and to know about the banking terms as hearty as habituate with banking environment. 3) To know how they find out the guess 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 steps Primary Information First, I pile up selective information about the Foreign Exchange Service in depository financial institution Asia ltd. MCB Dikusha Branch by tenting to personnel working in the bank. lowly Information Then in the second stage, I analyzed the equanimous data, working in Foreign Trade Department. Again, Personal Observation File Finding Annual Reports of BAL Articles of BIOM helped to prepare this report.1.6 Limitations of the StudyNot all the nurture of a banking concern can be disclosed. It is very much substantive for a bank to provide security to the customer. So the perfect breeding might not be shown in all places. The Employees of the Bank are also very busy. Therefore, the employees of the bank do not have abounding time to provide me help regarding preparing report. Therefore, it was very hard for me to collect the data and bring out the proper information in order to learn report look good. I had to go through many obstacles in order to make it presentable.1.7 Scope of the Re portThe scopes of the report are as follows The report would help the evanesce management to identify the key areas of helplessness and strength in foreign exchange service. The scope of the study is establish on brief description of BAL has been furnished. The study may help top management in planning and decision making regarding foreign exchange service.CHAPTER 2AN OVERVIEW OFTHE PRINCIPAL ACTIVITIES OF fix ASIA LIMITED2.1 OVER VIEW OF banking concern ASIA LIMITEDBank Asia Limited (Ltd) has been launched by a group of made entrepreneurs with recognized standing in the society. The paid up capital of the Bank is 1395 million. The management of the Bank consists of a police squad led by elderberry bush bankers with decades of experience in national and international markets. The senior management team is ably supported by a group of professionals many of whom have exposure in the international market. Bank Asia Limited is one of the third base generation private commercial b anks (PCBs), incorporated in Bangladesh on 28 September 1999 as a public limited company under the Companies Act 1994, and governed by the Banking Companies Act 1991.The Bank went for public issue of its shares on 23 September 2003 and its shares are listed with Dhaka conduct Exchange Ltd and Chittagong Stock Exchange Ltd. Bank Asia Limited acquired the argument of Bank of Nova Scotia (incorporated in Canada), Dhaka, in the year 2001 and at the beginning of the year 2002, the Bank also acquired the Bangladesh operations of Muslim mercantile 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 assets and certain specific liabilities of MCBL were taken over by Bank Asia Limited at book values. at bottom a short span of time Bank Asia Ltd has established itself as one of the fast growing local private banks. It has at present a network of Thirty three branches serving many of the ahead(p) corporate houses and is drowsyly moving towards retail banking. Another significant obstetrical delivery channel is its own as well as shared ambience 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 low-down beginning in 1999, it set milestone by acquiring the business operations of the Bank of Nova Scotia in Dhaka, first in the banking history of Bangladesh. It once once more repeated the performance by acquiring the Bangladesh operations of Muslim Commercial Bank Ltd. (MCB), a Pakistani bank.In the year 2003 the Bank again came to the limelight 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 obligation growth has been remarkable. By Dec 2007 the total asset of the Bank grew to Tk 38436 million, development of almost 26% comparing to 2006. As of Dec 2007 deposits additiond 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 Treasury Bills and other securities went up observably opening up opportunities for enhancing income in the context of a regime of gradual interest rate decline. Bank Asia Ltd is maintaining its competitiveness by leveraging on its Online Banking Software and modern IT infrastructure. It is the pioneer amongst the local banks in introducing innovative products like SMS banking, and under the ATM Network the Stelar Online Banking software enables direct linking of a clients account, without the requirement for a separate account.2.2 VISION affirmation OF BANK ASIA LIMITEDBank Asias vision is to have a l eanness free Bangladesh in course of a generation in the clean millennium, reflecting the national dream. Our vision is to build a society where human high-handedness and human rights receive the highest consideration along with reduction 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 sought after bank in the country, rendering technology drive innovative services by our dedicated team of professionals.2.4 CAPITAL 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 consultation of capital. The capital structure is following