1.1 Origin of the Report This report is originated as the course requirement of BBA Program Department of Accounting & Information System, University Of Dhaka as practical orientation & it is an integral part of BBA Program requirement, I was sent to the AB BankLimited, Mohakhali Branch to take the real life exposure of the activities of banking financial institutions from July15, 2010 to August 30 2010. During the internship program, I am under the supervision and guidance of MD. SAIFUL ALAM, Lecturer of Accounting & Information Systems, University Of Dhaka.
1.2 Background of the Report Any academic course of the study has a great value when it has practical application in the real life. Only a lot of theoretical knowledge will be little important unless it is applicable in the practical life. So we need proper application of our knowledge to get some benefit from our theoretical knowledge to make it more fruitful when we engage ourselves in such field to make proper use of our theoretical knowledge in our practical life, only then we come to know about the benefit of the theoretical knowledge. Such an application is made possible through internship. When theoretical knowledge is obtained from a course of study it is only the half way of the subject matter. Internship implies the full application of the methods and procedures through rich acquired knowledge of subject matter can be fruitfully applied in our daily life. Such a procedure of practical application is known as internship. The case study is titled “Foreign Exchange practices of AB Bank Limited”. As a student of BBA this study will be more significant in my practical life. I have worked for 6 weeks at “Mohakhali Branch” of AB Bank Limited to complete the internship program as an academic requirement.
1.3 Report Objectives Objective of the study acts as a bridge between the starting point and the goals of the study. To illustrate the objectives properly, presented into two parts:
• General: •
To get practical idea about commercial banking activity.
To observe the Foreign Exchange Practices of AB Bank Limited and their services.
To observe the major outline of foreign business.
To observe the foreign correspondents of ABBL.
To observe the post import financing operations.
To analysis the expansion of Foreign Trade business of the ABBL.
To identify the problems of it’s financing.
To recommend solutions of or solving the problems faced by ABBL in Foreign exchange Business.
1.4 Scope of the Report The main objective of the study is to obtain a clear idea about Foreign Exchange business of our banking operation i.e. how the L/C is opened and how the import & export is done. The other objectives are as follows: •
To fulfill the requirement of our BBA Program.
To evaluate the performance of the AB Bank Limited import and export business.
To recommend about foreign exchange business of the AB Bank Limited.
1.5 Methodology of the Report While I was conducting the study I have collected various types of primary and secondary data. Data has been collected through different sources, by interviewing the responsible officers and from different circular published by the Bank disciplined way. I can say that the study input were collected from two sources:
• The Primary sources of Data: •
Practical banking work.
Face to face conversation with the respective officer of the branch.
Face to face conversation with the clients.
Relevant file study as provided by the officers concerned.
• The Secondary sources of Data: •
Annual Reports of the ABBL.
Periodicals published by the Bangladesh Bank.
Different books, articles etc. regarding Foreign Exchange operations.
1.6 Limitations of Report The study was not free of limitations. The limitations faced during the preparation of this report are given below:
• Lack of adequate information: There was lack of sufficient primary and secondary data. As banking job is one of the busiest jobs, therefore they are busy, and show lack of interest of collecting information.
• Lack of communication: Sometimes respondents are not capable of answering question because they cannot recollect or have never given attention to what they do and why. Respondents may have answered the question without knowing correct answer in order to appear smart, or they may have try to help me by giving pleasing answer.
• Secrecy of information: Some of the information needed to explore the current market scenario of the company was not disclosed. Such as, information related to price, sales and advertisement.