Foreign Exchange Service of Bank Asia Limited Essay Example for Free

Foreign transfigure Service of banking company Asia Limited Essay1. IntroductionThe banking sector in Bangladesh comprises of four categories of scheduled banks. These are, home(a)ized commercial banks (NCBs), g everyplacenment owned development finance institutions (DFIs), private commercial banks (PCBs) and unconnected commercial banks (FCBs). Performance of these banking sectors under CAMEL framework, which involves analysis, and evaluation of the five crucial dimensions of banking operations, the five indicators used in the rating system are (I) Capital adequacy (ii) Asset quality (iii) Management soundness (iv) Earnings and (v) Liquidity. In addition, immaterial change Service is unitary of the major considering factors regarding these indicators. The bank acts as a media for the system of abroad exchange policy. The principles of foreign exchange service involve the entire system, the media used, and the monetary unit. According to Mr. H.E. EVITT Foreign Exchange is that section of economic science which deals with the means and methods by which right to wealth in one countrys specie is converted into rights to wealth in terms of another countrys currency. So bank should be aware vigorous-nigh this section for the overall development of the economy.2. Background of the studyAn internship programs necessity is originated for implementing the theoretical acquaintance in particle field. Therefore, internship program is included in BBA program. The goal of this report is to identify the contribution and the military issue of foreign exchange service in marges net profit.1.3 Rational Of the StudyThe apt of the study is to raise it on more about the course in practical life. This study alike helped me to know the banking system. From this study I learned about the different functions in the bank like offering online banking, remunerate order, foreign remittance, foreign trade, investment etc. I also learned how the banks perform these f unctions, what problems they face, and their benefit in offering different services to their clients. Then I was assigned in foreign trade department, so I have learned about L/C Files, 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 actually important for me to acquire proper knowledge in this course 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 Banks. I tried to evaluate the present condition of the banks. 2) To know about various products services of this bank, and to know about the banking terms as well as habituate with banking environment. 3) To know how they find 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 steps master(a) Information Firs t, I collected data about the Foreign Exchange Service in Bank Asia ltd. MCB Dikusha Branch by tenting to personnel working in the bank. Secondary Information Then in the second stage, I analyzed the collected data, working in Foreign Trade Department. Again, Personal contemplation File Finding Annual Reports of BAL Articles of BIOM helped to prepare this report.1.6 Limitations of the StudyNot all the information of a Bank can be disclosed. It is very much essential for a bank to provide security to the customer. So the perfect information 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 enough 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 observe report look good. I had to go through many obstacles in order to make it presentable.1.7 chain of mountains of the ReportThe scopes of the report are as follows The report would help the top management to identify the key areas of weakness and strength in foreign exchange service. The scope of the study is based on shortened 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 OFBANK ASIA limited2.1 OVER VIEW OF BANK ASIA hold inBank Asia Limited (Ltd) has been launched by a group of successful entrepreneurs with recognized standing in the society. The stipendiary up capital of the Bank is 1395 million. The management of the Bank consists of a group 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 generation private commercial banks (PCBs), bodied in Bangladesh on 28 Septemb er 1999 as a worldly concern 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 Stock Exchange Ltd and Chittagong Stock Exchange Ltd. Bank Asia Limited acquired the business of Bank of Nova Scotia (incorporated in Canada), Dhaka, in the form 2001 and at the beginning of the year 2002, the Bank also acquired the Bangladesh operations of Muslim Commercial 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 of account values.Within a short span of time Bank Asia Ltd has established itself as one of the immobile growing local private banks. It has at present a network of Thirty three branches luck many of the leading corporate houses and is gradually moving towards retail banking. Another significant delivery change is its own as well as shared 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 diminished 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 again 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 powerful premium. The asset and liability growth has been remarkable. By Dec 2007 the total asset of the Bank grew to Tk 38436 million, increase of close to 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 Treasury Bills and other securities went up noticeably opening up opportunities for enhancing income in the context of a administration of gradual interest rate decline. Bank Asia Ltd is maintaining its competitiveness by leveraging on its Online Banking Software and ultramodern 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 civilise linking of a clients account, without the requirement for a separate account.2.2 VISION STATEMENT OF BANK ASIA LIMITEDBank Asias vision is to have a poverty free Bangladesh in course of a generation in the ne w millennium, reflecting the national dream. Our vision is to build a society where human dignity and human rights receive the highest consideration along with reduction of poverty.2.3 MISSION STATEMENT OF BANK ASIA LIMITEDTo see 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 afterward bank in the country, rendering technology driven 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 source of capital. The capital structure is following