Historical Background of Commercial Banking:
After the emergence of Bangladesh all the banks except the foreign banks were nationalized. The commercial banks were merged into six large banks named Sonali, Janata, Agrani, Pubali and Uttara Bank. With exodus of Pakistanis who manned the top and upper middle echelon of management, a sudden vacuum emerged in the effective top management of the nationalized banks. As a result the banks, which were nationalized, had been put in the hands that had little experience of running banks.
Further the banks were called to extend liberal credits to revitalize war-torn and damaged industries and business establishments. The basic concept centering on the commercial consideration was set a side. As the banks departed from following the standard norms and practices, the state of banks become vulnerable leading to large scale loan defaults. The loans taken by the public sector bodies like Bangladesh Jute Mills Corporation, Bangladesh Textile Mills Corporation and other State owned Enterprises were stuck up at these institutions used bank loans mostly for lost financing.
Considering the backwardness as its high importance in the overall economy, drive was made at the instance of the Government to launch Tk.100 crore special agricultural credit programs in 1977. It was crash program to disburse credit to the cultivators as crop loan. As the NCBs were drawn in a big way for agricultural loan for the first time, in fact it paved the way for large-scale default culture in this respect mainly because of lack of experience in dealing with agricultural credit by the NCBs.
During early 1980s the role of banks in the private was felt as an important factor to invigorate the economy. A good number of few private banks were allowed to function. Banks following Islamic tenets also started functioning. Most notable development was de-nationalization of two of the six NCBs, namely Uttara and Pubali. A few more foreign banks were allowed to operate in capital and port cities.
During mid 1980s when the private banks started to expand its leading activities, these banks experienced somewhat new situation. The sponsor directors where especially interested to use their influences for taking the loans for their own business house or for enterprises owned by their relatives or accomplices. Though the executives were free from the dictates of the bureaucrats, but had to show their allegiance to their new partners.
To correct the above-mentioned problems and to ensure the maximum benefits that should be achieved from banking sector in 1990, the Bangladesh government started with a five-year financial sector reform project with the following agenda:
- Introduce a more liberal interest rate policy.
- Introduce and implement an improved loan classification system.
- Introduce capital adequacy requirements and enforce these on the banking system.
- Develop improved supervision system for the banks and use such system to manage short-falls in capital adequacy and to identify problem areas within the banking system.
- Develop money market instruments and initiate the auctioning of a short-term money market instrument.
- Improve the operation of the capital markets and take the regulatory steps needed to improve such markets.
- Clean up the jute debt in the commercial banking system and eliminate any risk to the commercial bank portfolio.
- Reform the NCBs in a three step process:
- Re-capitalize the NCBs;
- Improve their operating system;
- Develop strategic approaches to their future development.
The Present Scenery of Commercial Banking Structure:
Bangladesh Bank, the central bank of the country, is the guardian of banking institution of Bangladesh. Bangladesh Bank (BB) head office is located at Motijheel, Dhaka. There are two branches in Dhaka and there is one branch in each division. The structure of banking system is presented in the following table. There are four NCBs operating with 886 average branches per bank, 13 FCBs operating with 2 average branches and 13 PCBs operating with 45 average branches.
In Bangladesh around 75% people live in rural areas. Urban-rural ratio for NCBs is 0.5 (Calculated from Quarterly Scheduled Bank Statistics), which is in line with the necessity of rural branches in our country. There are no FCBs in rural area and PCBs has very few branches in rural areas. FCBs are guided by the policy of their parent company but private banks should open their branches in rural areas.
BANKS IN BANGLADESH
|Name of Bank||Number of Branches|
|A. Nationalized Commercial Banks|
|1. Sonali Bank||1313||7|
|2. Janata Bank||897||4|
|3. Agrani Bank||978||—|
|B. Specialized Banks|
|1. Bangladesh Krishi Bank||836||—|
|2. Rajshahi Krishi Unnayan Bank||300||—|
|3. Bangladesh Shilpa Bank (Industrial)||15||—|
|4. Bangladesh Shilpa Sangstha||5||—|
|5. Grameen Bank||1110||—|
|C. Private Commercial Bank|
|1. Rupali Bank||515||1|
|2. Pubali Bank Ltd.||351||—|
|3. Uttara Bank Ltd.||198||—|
|4. Arab Bangladesh Bank Ltd.||58||1|
|5. International Finance & Investment & Commerce Bank Ltd. (IFIC)||55||2|
|6. Islamic Bank Bangladesh Ltd.||100||—|
|7. National Bank Ltd.||66||1|
|8. The City Bank Ltd.||80||—|
|9. United Commercial Bank Ltd.||79||—|
|10. Al – Baraka Bank Bangladesh Ltd.||33||—|
|11. Prime Bank Ltd.||16||—|
|12. Dhaka Bank Ltd.||9||—|
|13. Al-Arafa Islami Bank Ltd.||20||—|
|14. South East Bank Ltd.||10||—|
|15. BANK OF Small Industries & Commerce||21||—|
|16. Eastern Bank Ltd.||21||—|
|18. Social Investment Bank Ltd.||5||—|
|D. Foreign Commercial Banks.|
|1. American Express Bank Ltd.||2|
|2. Credit Agricole Indosuez||2|
|3. The Standard Chartered Bank||15|
|5. Habib Bank Ltd.||2|
|6. State Bank of India||1|
|7. Muslim Commercial Bank||2|
|8. Citi Bank NA||1|
|9. National Bank of Pakistan||1|
|10. Hanil Bank||1|
|11. Dutch Bangla Bank||2|
|12. ONE BANK LTD||5||82|
Name, Location & Historical Background of Export Import Bank of Bangladesh Ltd.:
EXPORT IMPORT BANK OF BANGLADESH Ltd.
Head Office: 5, Rajuk Avenue, PrintersBuilding ( 6th, 10th & 13th floor), Dhaka-1000.
Phone: 9556884, 9565397
EXIM Bank is a third generation private commercial bank in the country with commendable operating performances. The Head Office of the Bank is located at Printer’s Building, (5th, 6th, 10th & 13th Floor) 5, Rajuk Avenue, Dhaka-1000. Presently it has 28 Branches located at Dhaka-12, Chittagong-3, Laksham-1, Noakhali-1, Sylhet-1, Bogra-1, Jessore-1, Brahmonbaria-1, Savar-1, Gazipur-2, Narayangonj-2. Bank inaugurated its first branch at Motijheel Commercial Area, Dhaka.
Existing Branches of EXIM Bank Bangladesh Ltd. :
- Agrabad (Chittagong)
- Gazipur Chowrashta Branch
13. Rajuk Avenue
14. New Eskaton
18. Jubilee Road (Chittagong)
19. Elephent Road
20. Mawna Chowrasta
26. Nasirabad (Chittagong)
The Historical Background of the Bank:
EXIM Bank was established in 1999 under the leadership of Late Mr. Shahjahan Kabir, founder Chairman who had a long dream of floating a commercial bank, which would contribute, to the socio-economic development of our country. He had a long experience as a good banker. A group of highly qualified & successful entrepreneurs joined their hands with the founder chairman to materialize his dream. In deed, all of them proved themselves in their respective business as most successful star with their endeavor, intelligence, hard working talent entrepreneurship. Among them, Mr. Nazrul Islam Mazumder became the honorable Chairman after the demise of the honorable founder Chairman.
EXIM Bank is a scheduled bank in the private banking sector. It was established under the Bank Company Act-1991, and incorporated as a Public Limited Company under Companies Act-1994 with a paid up capital of Tk.225.00 million and authorized capital of Tk. 1.00 Billion. The capital and of the bank as on 31st December 2005 stood at Tk.2179.81 million including paid up capital of Tk.878.85 million.
The Bank was incorporated on June 02, 1999 and started its operation on the 3rd of August, 1999 with Mr. Alamgir Kabir, FCA as the advisor & Mr. Mohammad Likiotullah as the managing Director. Both of them have long experience in the financial sector of our country. By their pragmatic decision & management directives in the operational activities, this bank has earned a secured & distinctive position in the banking industry in terms of performance, growth & excellent management.
The decision of converting into a full-fledged Islamic Bank based on Shariah from traditional interest based banking, was taken unanimously in the extra ordinary general meeting held on December 28, 2003 and obtaining confirmation from the honorable high court division of Bangladesh Supreme Court and at the grace of Almighty Allah the Bank started functioning as an Islamic Bank with effect from July 2004 with the approval of Bangladesh government.
The Bank is one of the most distinctive corporate cultures. Here we believed in shared meaning, shared understanding and shared sense making. Our people can understand and shared sense making. Our people can see and understand events activities objects and situation in distinctive way. They maintained their manners etiquette, character individually to suit the purpose of the bank and the needs of the customers who are of paramount importance to us. The people in the bank see themselves as a tight kin team/family that believed in working together for growth. The corporate culture
# To provide high quality financial services in export and import trade.
# To provide excellent quality customer service.
# To maintain corporate and business ethics.
# To become trusted repository of customers’ money and their financial advisor.
# To make stoke superior and rewarding to the customers/share holders.
# To display team spirit and professionalism.
# To have a sound capital base.
The purpose of banking business is, obvious; to earn profit, but the promoters and the equity holders are aware of their commitment to their society to which they belong a chunk of the profit is kept aside and/or spend for socio economic development through trustee and in patronization of art, culture and sports of the country. The institution wants to make a substantive contribution to the society where it operates, to the extent of its separable resources.
- To employ funds for profitable purpose in various fields with special emphasis on small scale industries.
- To search for newer avenues for investment and develop new product to suite such needs.
- To undertake project promotion to identify profitable areas of investment.
- To establish linkage with other institutions that is engaged in financing micro enterprises.
- To co-operate and collaborate with institutions entrusted with the responsibility of promoting and aiding SSI sectors.
Special Features of EXIM Bank:
- Though EXIM Bank is engaged in conventional commercial banking, it also consider the inherent desire of the religious Muslims, and has launched Islami banking system and inaugurates to Islami banking branches in the year 2002 and one branch in 2003. The Islami banking branches perform their activities under the guidance and supervision of a body called “Shariah Council”.
- It is the pioneer in introducing and launching different customer friendly deposit schemes to tap the savings of the people for channeling the same to the productive sectors of the economy.
- For uplifting the standard of living of the limited income group of the population the bank has introduced monthly saving scheme and educational saving scheme to encourage the common and fixed income group of people.
- The Bank is committed to continuous research and development so as to keep pace with modern banking.
- The operations of the bank are computerized to ensure prompt and efficient services to the customers.
- The bank has introduced camera surveillance system (CCTV) to strengthen the security services inside the bank premises.
- The bank has introduced customer relations management system to assess the needs of various customers and resolve any problem on the spot.
- The bank has also gone for online banking facility to the customers in near future.
Common Features of EXIM Bank:
- Usually, EXIM Bank is engaged in export and import.
- The bank is providing general banking facilities.
- The bank is engaged in advanced banking system.
Mission, Vision, Objective & Strategies of the Company:
This bank is one of the most disciplined Banks with a distinctive corporate culture. Here we believe in shared meaning, shared understanding and shared sense making. Our people can see and understand events, activities, objects and situation in a distinctive way. They mould their manners and etiquette, character individually to suit the purpose of the Bank and the needs of the customers who are of paramount importance to us. The people in the Bank see themselves as a tight knit team/family that believes in working together for growth. The corporate culture we belong has not been imposed; it has rather been achieved through our corporate conduct.
Objectives of the Bank:
Export Import Bank of Bangladesh Limited, as the name implies, is not a new type of bank in global but is the first in Bangladesh. EXIM Bank’s objectives are to provide innovative products supported by quality delivery of systems & excellence customer services, to train & motivate staffs & to exercise community responsibility. It believes in togetherness with its customers, & aim is to the growth & its progress with services.
EXIM Bank fully appreciates the importance & implication of the rapidly emerging competition in the banking & finance sector of Bangladesh. It intends to finance its customer suited to his or her place in the market. In this regard, EXIM Bank emphasized the software aspects of human resource capability in its employment.
The EXIM Bank has completed its successful existence on its career. And it has taken a revolution on its business operation in year 2001 as searching for incremental improvement in productivity, operational efficiency & structure consequently; a new organizational structure has been developing according to business focus & priorities & competitive pressures.
Mission of the Bank:
We aim to become one of the leading Banks in Bangladesh by our prudence, fair & quality of operations.
1) We intend to meet the needs of our clients & enhance our profitability by creating corporate culture.
2) We aim to ensure our competitive advantages by upgrading banking technology & information system.
3) We provided high quality financial services to strengthen the well-being & success of individual, industries & business communities.
4) We believe in strong capitalization.
5) We maintain high standard of corporate & business ethics.
6) We extend highest quality of services, which attracts the customer to choose us.
7) We create wealth for the shareholders.
8) We maintain congenial atmosphere for which people are proud & eager to work with us.
9) We believe in disciplined growth strategy.
Slogan of EXIM BANK- “Local Bank Global Network”
The word ‘EXIM’ implies the meaning of operation. Though it is a new type of bank in Bangladesh, it is familiar with so many countries in the world such as Export Import Bank of the United States, Export Import of Bank of Japan. Despite it is a local bank, it has spread its operation in the whole world through foreign banking. To achieve the desired goal, it has an intention to pursuit of excellence at all stages with a climate of continuous improvement. Because it believes, the line of excellence is never ending. It also believes that its strategic plan & business networking will straighten its competitive edge over the rapidly changing customers all over the world, so the slogan of the Bank is completely adjustable with its operation.
The Company’s Major Functions, and Its Different Services:
EXIM Bank is a scheduled Islamic Commercial Bank. Like other commercial banks of the country its prime function is undertaking banking business of all types. Naturally it renders all kinds of banking services to its customers and its functions are: wide and diverse. It plays a vital role as an agent for economic activities and social transformation. It plays important role in mobilization of resources as well as their deployment for meeting the objection of economic development. It dreams to survive as an institution not only for affluent sections of the population but to emerge as effective catalytic agent of social economic change.
The Company’s Major Function:
The primary functions of EXIM Bank, like other commercial bank, are accepting deposits and lending or investing money. It mobilizes deposits from local market to build-up its funds. It believes that deposit is the lifeblood of the bank. The bank collects funds or deposits in the following Heads of Accounts:
01.Mudaraba Savings Deposit: (A/C Prefix-121*******)
These deposits are of small amounts and are accepted by banks to encourage persons of small means to make savings. Frequent withdrawals are not allowed in the account. Consumers are encouraged to open this type of account in the time of opening various types of Mudaraba Savings Scheme. Because the bank can automatic transfer the profit to that A/C after the maturity and the client can withdraw when they are willing to withdraw.
These deposits are profit bearing. The profit on the A/C is 8.5% per annum on the deposited amount. The bank charge Tk.100 after every six months to maintain the account. Statement charge is not applicable on this account.
Requirements to open an account:
- Photograph attested by the introducer.
- An introducer of EXIM Bank. Introducer can be SB or CD account holder.
For joint accounts, signatures of all the account holders are necessary.
Alwadiah Current A/C: (A/C Prefix 111********)
These are the deposits of large amount and mainly the business men are encouraged to open this type of deposit. The A/C holder can withdraw any amount in any time. The bank does not offer any profit on this account. The bank charge Tk.300 for the transaction and Tk.100 for the statement from the A/C after every six months. Basically the business persons open this type of A/C for their business transaction benefit.
Mudaraba Short Term Deposit: (A/C Prefix 131*******)
This A/C is also for the business holders. But the difference is from the Alwadiah Current A/C is that 6.5% profit is applicable on this deposit. The bank charge Tk.300 for the transaction and Tk.100 for the statement from the A/C after every six months.
Mudaraba Term Deposit (FDR):
There are six different types of term deposit available in the bank. These are deposit of one month, three month, six month, one year, two year, and three year. The profit applied on these A/C are respectively 10.00%, 13.00%, 13.00%, 13.00% & 13.00%. Normally the depositors can withdraw the deposited money after the maturity of the security. But in case of emergency the depositors are allowed to withdraw the money, but they will not get the actual profit rate. In they will get they Mudaraba savings profit rate (6.00%)
EXIM Bank’s Attractive Deposit Scheme:
Name of the Scheme
Monthly Profit on The Deposit
Monthly Savings Scheme
The depositor can deposit any multiple amount of above mention amount. And at the time of withdrawal of the money the depositor have to pay 10% income tax against the profit amount.
Name of the Scheme
Provisional profit with the Deposited Money
Mudaraba Super Savings Scheme
|The amount will be more than of double.|
Mudaraba Multi Plus Savings Scheme
|The amount will be more than of triple.|
Mudaraba Hajj Scheme
|The A/C can be monthly installment||opened under these||schemes by various|
Mudaraba Education Scheme
The depositor can deposit any multiple amount of above mention amount. And at the time of withdrawal of the money the depositor have to pay 10% income tax against the profit amount.
Terms and conditions of Mudaraba Super Saving Scheme:
- Any individual, company, educational institution, government organization,
NGO, trust, society etc may invest their savings under this scheme.
- The deposit can be made in multiples of Tk.10, 000/-
- The period of deposit is for six years.
- Any customer can open more than one account in a branch in his name or in joint names. A deposit receipt will be issued at the name of opening the account.
- If the deposit is withdrawn before six years term, then savings profit rate +1% will be applied before payment is made. However, no profit will be paid if the deposit is withdrawn within 1st year.
- A depositor can avail loan up to 80% of the deposited amount under this scheme.
- In case of death of the depositor, before the term, the deposit (with saving rate +1%) will be given to the nominee. In the absence of nominee, the legal heirs/ successors will be paid on production of succession certificate.
- In case of issuing a duplicate deposit receipt the rules of issuing duplicate receipt Of Term Deposit will be applicable.
Terms and conditions of Mudaraba Multi Plus Scheme:
1. Any individual, company, educational institution, government organization,
NGO, trust, society etc may invest their savings under this scheme.
2. The deposit can be made in multiples of Tk.10, 000/-
- The period of deposit is for 10 years. But the deposit can be withdrawn at any year with profit. As an example, of 1 year but before 2 years then deposit with profit with paid for 1 year only. The same rule will apply for other years. If deposit is withdrawn before 1st year then no profit will be paid.
- Any customer can open more than one account in a branch in his name or in joint names. A deposit receipt will be issued at the name of opening the account.
5. The depositor can avail loan up to 80% of the deposit under this scheme.
6. In case of issuing a duplicate receipt the rules of issuing a duplicate receipt Of Term Deposit will be applicable.
7(a) In case of death of the depositor, before the term, the depositor (with savings rate) will be given to the nominee. In the absence of nominee, the legal heirs/ successors will be paid on production of succession certificate.
7(b) The nominee may, at his option continue the scheme for the full term.
8. The government taxes will be paid, if necessary, by the client, in future
Terms and Conditions of Mudaraba Education Saving Scheme:
- Deposit of Tk. 250000/- and multiples thereof at a time will be accepted under the Scheme.
- The instrument shall be issued for 7 years, 10 years, 15 years, or 20 years term.
- The deposit payable at maturity with benefit either in lump sum or on monthly basis as education allowance for 6 years starting after the completion of respective term.
- To avail the education allowance, the depositor is required to deposit the receipt to pay the amount to his/her nominated person on monthly installment basis as or instrument with the bank duly discharged by him with the written instruction stipulated in the scheme.
- Normally no withdrawal will be allowed before maturity. But, if any depositor intends to withdraw his deposit before maturity, the following rules will be applicable:
- If withdrawal is made before seven years, profit will be calculated and Paid as per prevailing saving rate.
- If withdrawal is made at any time after seven years, the total amount
Payable at maturity of the immediate preceding term will be paid along with profit for the fractional period at prevailing saving rate.
- The depositor can avail loan up to 80% loan under the scheme.
- Term deposit will be applicable
Mudaraba Monthly Savings Scheme:
Tk.39041.00 With Provisional profit
Tk.78082.00 With Provisional profit
Tk.156164.00 With Provisional profit
Tk.390411.00 With Provisional profit
Tk.74202.00 With Provisional profit
Tk.148404.00 With Provisional profit
Tk.296809.00 With Provisional profit
Tk.742024.00 With Provisional profit
Tk.105095.00 With Provisional profit
Tk.210190.00 With Provisional profit
Tk.420380.00 With Provisional profit
Tk.1050952.00 With Provisional profit
Tk.144461.00 With Provisional profit
Tk.288923.00 With Provisional profit
Tk.577847.00 With Provisional profit
Tk.1444618.00 With Provisional profit
At the time of withdrawal of the money the depositor have to pay 10% income tax against the profit amount.
Issuing Cheque Book
The following procedures maintained of a cheque book.
- At first the customer will fill up requisition form.
- The levels of the checkbook under issue shall be counted to ensure that all the levels and the bank requisition slip are intact and the name and account number shall be written on the cover page of cheque book and its requisition slip.
- The name and account number of the customer shall be entered in the cheque book register against the particular cheque book series.
- Then the register, cheque book and the requisition slip are signed by the officer in charge of the deposit department.
- Then the cheque book is handed over to the customer after taking acknowledgement on the requisition slip and the register book.
A cover file containing the requisition slip shall be effectively preserved as vouchers. If the ledger keeper notices any defect, he will make a remark to that on the requisition slip and forwarding it to the cancellation officer to decide whether a new cheque book should be issued or not.
Procedure of Closing Account.
A customer may close his/her account any time by submitting an application to the branch. The customer should be asked to draw the final check for the amount standing to the credit of his/her account less the amount of closing an other incidental charge and surrender the unused claque leaves. The account should be debited for the account closing charge etc. and unused cheque leaves should be destroyed by the authorized officer of the bank. In case of joint account the application for closing the account should be signed by the joint account holder. The fee for closing an account is Tk.25/-for SB A/C and Tk.50/-for CD A/C or STD A/C.
Dishonor of Cheque
A banker can dishonor a cheque in the following situation:
- Insufficient fund.
- Payment stopped by drawer.
- Alternation require in drawer signature.
- Effect not clear in the cheque.
- Exceed arrangement in cheque.
- Full cover note received.
- Payee’s endorsement irregular/illegible/required.
- Drawer signature different and required.
- Cheque is postdated/mutilated/ out of date.
- Clearing stamp required cancellation.
- Cheque crossed” Accounts payee only”
- Collecting bank’s discharge irregular/required.
EXIM Bank lends/invests money to the deserving borrowers/investors. 84% of its deposits are lent out/invested by the bank. This is major source of income of the bank. Lending/investment may be following forms:
01. Bai Muazzal (CC Hypo):
This is short-term investment allowed for one year to small traders.
02. Murabaha (CC Pledge):
This type of facility is allowed against pledge of stock goods.
03. Izara Bill Baia (Term Loan):
These facilities may be of medium and long term. Big industries/projects avail it.
04. Wazirat Bill-Wakala (Export Credits):
These facilities are extended to exporters of different nature.
Services Provided by the Bank:
EXIM Bank provides the following services to the clients:
The Bank acts as an Agency Service. As our agent of customer, the bank provides different types of agency services to them. It collects drafts, bills, cheques, dividends etc. on behalf of customer. It executes standing order of customer and acts as trustee, executor and administrator. It extends some other general services to its customers. It issues Letter of Credit, Travelers Cheque accepts valuable for safe custody and provides advisory services to it customers.
Remittance of funds is one of the most important aspects of the Commercial Banks in rendering services to its customers. Among various services rendered by a Commercial Bank to its customers, remittance facilities are very well known and popular. The word remittance means, sending of money from one place to another through post and telegraph. The Bank extends this facility to its customers by means of receiving money; from one branch of the bank and making arrangement for payment to another branch within the country. In general there are two types of bank remittance: Inward Remittance & Outward Remittance
The remittance facility of a commercial bank enable its customers to avoid risk arising out of theft or loss in carrying cash money from one place to another or making payment to some one in another place. Bank takes the risk and ensures payment to the beneficiary by charging “Commission” to its customer.
Considering the urgency and nature of transaction, the modes of the bank remittance may be categorized as under:
Demand draft is an instruction payable on demand, it is a negotiable instrument issued by a particular branch of a bank containing an order to another branch of the same bank to pay a fixed sum of money to certain person or order on demand. This instrument can be purchased by customer from a particular bank’s branch for himself of for beneficiary and can be handed over to the purchaser for delivery to the beneficiary .The payee of the beneficiary will claim the amount of money in this instrument by producing the same to the concerned paying branch Demand Draft may be paid in cash to the payee on proper identification or the amount may be credited to his account (in case of A/C holder of the bank). Bank issues drafts for a nominal commission. The commission depends upon the amount to be transmitted. Demand Draft is issued on favor of a customer that maintains an A/C with EXIM Bank. For Demand Draft the customer has to pay the following commission, vat and postage charge:
Amount Commission Vat Postage
1-25000 25 4 20
25000+ 0.1% 15% on commission 20
Payment order is an instrument that contains an order for payment to the payee only incase of local payment whether on behalf of the bank or its constitution. Unlike check, there is no possibility of dishonoring payment order. The payment order can only be ensured through the branch that it issued the instrument. Charges of the pay order are as follow:
Amount Commission Vat
1-10000 15 3
10001-100000 25 4
100001-500000 50 8
500001+ 100 15
Telegraphic Transfer (TT) is another widely used mode for remittance of funds. Telegraphic Transfer is quicker than a transfer of amount by is anyway. In this case, the banker is requested to remit the funds telegraphically. Telegraphic transfer is the most rapid and convenient but an expensive method. Telegram, Telephone, Telex, Fax is different mode of telegraphic transfer. If an applicant wants to remit the amount urgently the payee in another city or district he/she may request the banker to send it by TT. In case of remittances by TT, the branch sends a telegraph instead of an airmail advice. The branch generally recovers from the telegraph charges in addition to the usual service charges. Charges of TT are as Telex Tk.50, commission is 10% of the total amount & VAT is 15% of the commission.
05.Operation of Cheque:
A cheque is a written unconditional order to a bank to pay money. It is an order drawn on a specified bank and signed by the drawer requiring the banker to pay certain sum of money on demand to a specified person or the bearer. Thus a cheque involves three parties:
- The Drawer (who writes the cheque)
- The Bank (Drawee)
- The payee (to whom the cheque is to be paid).
06.Cheque Collection and Clearing:
In EXIM Bank Narayanganj branch cheques of its client are received for collection from other banks. Incase of receiving checks the following points should be checked very carefully. The cheque should not convey a date older than the receiving date of more than 6 months. In that case it will be a stale cheque and it will not be allowed for collection Again the date of the check should not be more than 1 day’s forward than the receiving date i.e. the cheque should not be a ‘Post dated’ one.
Terms and Conditions:
- The amount both in words and figures in the deposit slip should be the same and it also should be in conformity with the amount mentioned in words & figures in the cheque.
- The name mentioned both in the cheque and the pay-in-slip be the same.
- The cheque must be crossed,
- The collecting bank must check whether endorsement is done properly or not.
In EXIM Bank, Narayanganj branch cheques are collected through “Clearing”, which is described below:
EXIM Bank is a scheduled bank. According to the article 37(2) of the Bangladesh Bank Order, 1972 the banks that are members of the clearinghouse are called “Scheduled Banks”. The scheduled banks clear the checks drawn upon one another through the clearinghouse. This is an arrangement by the Central Bank where everyday the representatives of the member’s banks sit to clear the checks. The place where the banks meet and settle their dues is called “The Clearing House”. The Clearing House sits for two times in a working day. Everyday the first hour starts at 10.00 am and returns house at 5.00 p.m. If the check is dishonored, it is returned with the prescribed “Return Memo” showing the cause for dishonoring the check and for necessary action. Local office of EXIM Bank, Narayangonj branch clears its checks as well as checks of other banks. If a cheque is bounced from the banks then bank charge Tk.25 from customer.
When bank receive different cheque, pay order & demand draft (DD) of different bank then at first this clearing department do the posting of cheque at PC. Then from the PC all posting are printed are printed out & then different checks & DI) are stapled with same different printing papers. Then all these are sent to the principle branch for presenting at clearing house.
After that day checks, which are returned for insufficient find, according to customer’s instructions, are given to those different customers.
At second day all the bills that are all right are given for posting. After presenting at clearing house then at next day this amount is credited at the account of EXIM Bank & debited to principle branch. And which checks are returned, that amount is debited at EXIM Bank & credited at principle branch — at third day. At clearing house which checks are presented for EXIM Narayanganj Branch are given to Narayanganj Branch & this amount is paid & debited at EXIM Bank’s a/c & credited to party’s a/c.
07.Outward Bills Collection (OBC):
If the bill is beyond the clearing range, it is collected by the Outer Bills Collection mechanism (OBC). Customer deposits checks draft etc, for collection, attaching with their deposit slip. Instruments outside the clearing range are collected through OBC. In OBC mechanism Bank charge commission, postage charge & VAT from party’s account. In EXIM Bank, in OBC mechanism commission is charged on the amount as follows:
Amount Commission (Minimum) Postage Percentage
1-25000 20 20 0.15%
25001-100000 50 20 0.15%
100001-500000 150 20 0.1%
500000+ 600 20 0.05%
Financial Overview of the Bank:
EXIM Bank commenced formal commercial banking operation from 3 August 1999 with the permission of Bangladesh bank. The sponsors of the bank are leading business personalities & reputed industrialists.
The bank has a sound capital base; its authorized capital is Tk.1000.00 million while its initial paid up capital is Tk.225.00 million subscribed by the sponsors. To solidify its capital base further the paid up capital will raise to Tk.450.00 million within a reasonable time period by public offering of shares of the company.
The bank will be immensely benefited furthermore from the able leadership of the Chairman and valuable advice and guidance of the Advisors. The Board of Directors wants to carry out in the management the services industry’s entire administration and credit portfolio independent without any undue influence from outside. The Board will formulate and give policy directives to the Management. The bank will operate with integrity, competence and farsightedness abiding by all principles and provisions laid down in the Bank Company Act, 1991.
It is a great pleasure that by the grace of Almighty Allah, we have migrated at a time all the branches from its conventional banking operation into Shariah based Islami banking operation without any trouble. Lot of uncertainties and adversities were there into this migration process. The officers and executives of our bank motivated the valued customers by counseling and persuasion in light with the spirit of Islam especially for the non-Muslim customers. Our IT division has done the excellent job of converting and fitting the conventional business processes into the processes based on Shariah. It has been made possible by following a systematic procedure of migration under the leadership of honorable Managing Director.
The Sources & Uses of Funds:
The composition of sources of banks fund is paid up capital, reserve, customer deposit and call loan from different banks. The bank used major portion of this fund for investment in loans and advances. The bank also invested in securities and shares. The surplus fund was prudently applied call money market to earn satisfactory return.
Capital & Reserve fund:
The bank started its voyage with an authorized Capital of Tk.1,000 million while its initial paid up capital was Tk.225.00 million. The capital and reserve of the bank as on 31st December 2005 stood at Tk.2179.87 million including paid up capital of Tk.878.85 million. The bank also made provision on unclassified investment which is amounted to Tk.263.18 million.
Deposit is one of the principal sources of fund for investment of commercial banks ad investment of deposit is the main stream of revenue of banking business. The total deposit of the bank stood at Tk.28319.21 million as on December 2005 against Tk.19078.18 million of the previous year. The increase is 48.44%. this growth rate may be termed as a remarkable achievement for the bank.
Total investment of the bank as the year ended 31st December 2005 is Tk.26046.34 million. This amount was Tk.19332.44 million as on December 31st 2004 showing an increase of Tk.6713.90 million with growth rate of 34.73%.
Data Source: Annual Report -2005 (Amount in Million)
Investment (Share & Bond)
The size of the investment portfolio in 2005 is Tk1633.03 million while it was Tk.1542.99 million in 2004. The portfolio comprises Islamic investment Bond, Shares and Prize Bonds.
Data Source: Annual Report -2005 (Amount in Million)
During the year 2005 the bank opened 21555 import letter of credit and the import volume stood at Tk.41432.10 million with a growth rate of 54.70% in comparison with previous year.
Data Source: Annual Report -2005 (Amount in Million)
The growth rate of export business has significantly been increased by 39.55%. In December-2005 it was Tk.31285.37 million. And as 31st December-2004 the balance was Tk.22418.40 million.
Data Source: Annual Report -2005 (Amount in Million)
Credit (Loans & Advances) Of Exim Bank:
Banking is essentially a business dealing organization with money & credit like all other business activities. Banks are profit-oriented organization. A Bank invests its fund in many ways to earn more & profit and most of its income is desired from loans and advances. Bank makes loan and advances to traders, businessmen, industrialists & many other people’s security of some cautions policy and sound lending principle in the matter of lending. Making of loan and advances is the primary functioning of a bank. A major portion of its fund is for this purpose and this is also the major source of bank’s income.
EXIM Bank offers following types of loans and advances:
- Secured Overdraft (SOD)
- Loans (General)
- Staff Loan
- HouseBuilding Loan (Staff)
- Cash Credit (Hypothecation)
- Cash Credit (Pledge)
- Lease finance
- Loan against imported merchandise (LIM)
- Loan against Trust Receipt (LTR)
- Packing Credit
- Cash Credit (Export).
- 01. Secured Overdraft (SOD):
Overdraft is a kind of advance always allowed on a current account operated upon by checks. By this agreement the banker allows the customer to overdraw his current account up to his certain credit limit sanctioned by the bank within a stipulated time.
- 02. Term Loan:
When a credit facility is provided for a specific term and which is no continuous loan is treated as Term loan. Incase of term Joan, advance is made on without security, in a lump sum repayable either in fixed monthly installments or in lump sum and no subsequent debit is allowed except by way of interest, incidental charges, etc. The borrower full or in part cannot draw loan once rapid in again. It is given for a fixed period on an agreed rate of interest.
- 03. Staff Loan:
EXIM Bank provides loan advances to the staff for purchasing/building house and for buying car. Bank provides this advance facility under installment system. At the end of each month, when the staffs withdraw their salary, the bank takes the installment amount from the salary of each of that concerned staff that takes this section.
House Building Finance Corporation (HBFC) is the main institution that meet the requirement of loans in this field but EXIM Bank also supplement to this sector. The bank also allows advances for construction of residential house against real estate as primary securities.
- 04. Cash Credit (hypothecation):
Incase of hypothecation the possession of goods is not given to the bank. The goods remain at the disposal of the borrower. The bank is given access to the goods if it is desired. The borrower famishes periodical return of stock with the bank. By virtue of the hypothecation agreement the Bank can take possession of the goods hypothecated, if the borrower defaults.
- 05. Cash Credit (pledge):
Incase of pledge the goods are placed in the custody of the bank with the name of the owner when they are stored. The borrower has no right to deal with them until repayment.
- 06. Lease Finance:
EXIM Bank offers leasers financing for acquiring of capital machinery, equipment, vehicle and other items. The scheme is flexible and can provide full funding for a business venture. The least financing scheme is simple, convenient and is backed by prompt service from a team of dedicated personnel. On the other hand, rental payable under lease financing is treated as revenue expenditure, which as such, is deductible for tax purpose.
General Procedure for Giving Loans & Advances:
The following procedure is applicable for giving loans and advances to the customer
- The Potential borrower will submit application to EXIM Bank for loan by filing up of a specific application form,
- Application for credit form,
- Collecting Credit Information Bureau (CIB) report from Bangladesh Bank,
- Making credit line proposal,
- Project Appraisal,
- Head Office Approval,
- Sanction letter,
Statements Prepared by the Credit Department:
- Monthly statements prepared by credit department for Bangladesh Bank.
- Quarterly Statements prepared by Credit Department for Bangladesh Bank.
- Monthly Statements prepared by credit department for Head Office.
Letter Of Credit(L/C)
L/C may be defined as an undertaking in writing, issued by a banker at the request and on behalf of an importer/buyer of goods in favor of the exporter.
Operational Definition of L/C:
L/C is a conditional bank undertaking for payment. In other words, it is one of the modern credit facilities that provide assurance to exporter that he will receive his payment from importer after exporting goods. This type of letter is issued by commercial bank.
Features of L/C:
- It is a documentary credit,
- It contains a directive for honoring a bill, a cheque of specific amount,
- Banks work as representative of the importer.
- It contains as representative of the importer,
- It contains a definite time period,
- It works as a contract among different parties to it,
- It bears a specific date,
- A bank issues it.
Types of L/C:
- Clean L/C
- Documentary L/C
- Confirmed L/C
- Unconfirmed L/C
- Fixed Clause LIC
- Receiving LIC
- Revocable or open L/C
- Margin L/C
- Anticipatory L/C
a) Red clause L/C
b) Green clause L/C
- Transferable LIC
- Divisible L/C
- Back to Back L/C
- Irrevocable L/C.
The EXIM Bank basically deals with irrevocable L/C, which cannot be amended by the issuing bank at any moment and without prior notice to the beneficiary.
Parties Involved with L/C:
- Importer (buyer),
- Exporter (beneficiary/seller),
- L/C opening/issuing bank (importer bank),
- The notifying bank (corresponded bank through whom the L/C is advised by issuing bank to the exporter),
- L/C negotiation banks (exporter bank) for negotiation the bill by the exporter,
- The confirming bank, credit confirmed by a bank in the exporter country by the request of the issuing bank,
- The paying bank may be the issuing bank, the confirming of the notifying bank.
The person who opens the L/C is known as applicant/opener/buyer/importer of the L/C. The buyer & the seller conclude a sale contract providing for payment by documentary credit.
Opening bank /Applicant Bank:
The bank issuing the L/C in favor of exporter is known as opening bank or applicant bank. The applicant bank opens an L/C on request of importer according to the application of the importer.
Seller or exporter or exporter in whose favor the L/C is opened. The beneficiary is normally the seller of goods who receive payments under documentary credit if he has compiled with terms & conditions thereof.
The bank through which a L/C is advised, LIC will be sent to the beneficiary through their agent (correspondent bank) abroad. The duty of the advising bank is to authenticate the message so that the can act on it without any fear of forgery etc.
The bank that is authorized to handle (purchase) the document under the L/C in the exporting country is known as negotiating bank. L/C will stipulate either a notified bank to negotiate (restricted LIC) or any bank can negotiate in the seller’s country (unrestricted L/C).
The bank that is (by the L/C issuing bank) to affect reimbursement is known as reimbursement bank. Reimbursing bank is authorized to honor the reimbursement claim in settlement of negotiating/acceptance/payments lodged with it by the paying/negotiation/accepting bank.
A confirming bank is one which adds the guarantee to the credit opened by another bank, thereby undertaking the responsibility of payment/negotiating/acceptance under the credit in addition to that of issuing bank. A confirming bank normally does so, requested by the issuing bank.
Procedures of L/C Opening:
- EXIM Bank identify whether the goods (will be imported) are in the import list selected by the government of Bangladesh.
- Whether it is over invoicing or under invoicing.
- Justify the client’s credit worthiness by collecting social status information from other business or from bank credit report.
- Judge whether the information goods bear good quality & more is market of goods.
- Security the documents efficiently.
- If every thing is ok, then the client proposes to fill up the prescribed form.
- The sum percent of total amount of L/C should be deposited and get the admission to open L/C.
- Then it is registered in L/C register book.
Two out of three is sent to advising bank and rests are sent to reimbursing bank with order to pay claim to the negotiating bank. Then the advising bank sends one copy with advice to ship goods to the importer. Exporter submits necessary documents to the negotiating bank and receipts his claim. The negotiating bank sends two of the same letters of payment to the issuing bank and importer. Simultaneously the negotiating bank demands his claim from reimbursing bank.
Such a way L/C is opened and paid off Importer procedure. This is the mechanism in which goods are being brought from foreign market. An importer follows some steps to import goods from abroad.
Documentation Required with L/C Application Form:
With the application, the application needs to submit the following papers:
- Letter of Disbursement
- Trade License
- Import Registration Certificate
- Income Tax Declaration with TIN
- Memorandum of Article (in case of ltd. co.)
- Insurance cover note
- IMP form LCA form
- A photocopy of Membership certificate from “The chamber of Commerce.”
Payment Procedures of the Import Documents:
This is the most sensitive task of the import department. The officials have to be very much careful while making payment. This task constitutes the following:
Date of payment: Usually payment is made within seven days after the documents have been received. If the payment is become differed the negotiating bank may claim interest for making delay.
Preparing sales memo: A sale memo is made at Bangladeshi currency rate to the customer. As TT & OD rate is paid to the International Department (ID) there is difference between these two rates in exchange trading. Finally an Inter Branch Trading Credit Advice is send to International Department.
Requisition for the Foreign Currency: For arranging necessary fund for payment, a requisition is sent to International department.
Transaction of Telex: A telex is transmitted to the correspondent bank ensuring that payment is being made.
- L/C commission
- VAT 15% of L/C amount
- Data maximum charge Tk.1000
- Telex Tk.300
Interest on credit 15%.
- 04. Major Problems in the Operation of L/C
- Bank deals with documents not with goods, but sometimes goods are not as per document.
- Over invoicing by meet up conspiracy of buyer and supplier,
- In absence of pre-shipment inspection supplier may inferior good and for that the bank faces some problem.
- If the market price of goods fall and the party maintains less the liquid money of margin then the party would not release the goods.
- In absence of insurance cover note with access risk.
- In case of frequent change in tax, tariff duty and the exchange rate of Taka with foreign currency.
The Company’s strengths, Weakness, Opportunities and Threats :
The company’s competitive position:
EXIM Bank is a third generation private bank which has started it’s banking operation since 3rd August 1999. It has become a full pledged Islamic Bank since 1st July 2004. The other contemporaries of this bank are: The Mercantile Bank Ltd., Premier Bank Ltd., First Security Bank Ltd., Shahjalal Bank Ltd., Bank Asia Ltd., One Bank Ltd., Mutual Trust Bank Ltd., The Trust Bank Ltd., Jamuna Bank Ltd. etc. In respect of profit, it occupied 2nd position up to 2004. As per CAMEL rating of Bangladesh Bank, EXIM Bank secured 1st Class grading with other 2 contemporary banks. It’s Capital adequacy, Asset Quality Management Efficiency, Earning Level and Liquidity Ratio were praiseworthy. Its classified investment is 2.49% only. The company floated its share in the open market in 2004. It’s present number of ordinary share holders is 31,38,750. It has exceeded the profit position of the some bank’s 2nd generation.
SWOT stands for Strengths, Weakness, Opportunities, & Threat. By this analysis an Organization’s competitive positioning is determined. Strengths are the resources & capabilities. Organizations use in their operation. Weaknesses are the lacking; organizations have in their operations. Opportunities are the external factors that help a company to grow & threats are factors that can bar a company to grow. Here, Strengths & weakness are internal factors & Opportunities & threats are external factors. The SWOT analysis of EXIM Bank. is given below:
The over all position is progressing year after year. Growth rate, in respect of profit is increasing every year at a rate of above 50%. The bank has started On-Line Banking in 2005. More 4 branches are going to be opened within December 2005. One Exchange House, for boosting up the inflow of foreign currency, is going to be set up at USA by June 2006. Bank is very much alert to preserve the asset quality of the bank. Continuous training both at home and abroad is going on to develop the skill of human resources. Recruitment of Probationary Officers (Management Trainee Officers) through fair competitive examination is going on to strengthen the basic foundation of the bank.
Other strengths of the Company are:-
- Strong non-interest earning base.
- Wide branch net worth.
- Low infection in loan exposure.
- Wide product line.
Growth rate of the bank is almost same (about 50%). It should increase gradually to reach to its peak. Difference between deposit and investment is very narrow which implies poor liquidity ratio. Bangladesh Bank may impose penalty for this disqualification. Branches are not well equipped with necessary manpower. Well-experienced and efficient manpower are rarely available in the branches. Up-ward and down ward movement of bank in the CAMEL rating speak of its weak management condition.
Other weaknesses are:
- High cost of Fund
- Excessive dependency on Term Deposit
- In adequate delegation of power etc.
The Board of Directors is honest, sincere, experienced in business and very much positive and supportive to the management. If the managerial talent is improved, and if the management can utilize the consolidated and continuous support of the Board; there exists huge opportunity for the bank to improve its growth further.
Other opportunities are:-
- Credit Card business
- Market reputation and wide banking net-work
- Regulatory environment favoring private sector bank.
There is scope for improvement of management talent. Technological advancement is weak here. Strong command and environment of the like is absent. Bank’s over all preparation to face future competition is not so much visible.
Other threats are:
- Increased competition in the market for public deposits.
- Market pressure for lowering profit rate
- Decrease in import, export & guarantee business.
An Assessment of Company’s Current Estate of Operation And Future Directions:
- To get competitive advantage and to deliver quality service, to customer management should try & adapt the following services:
- Credit card and automated teller machines (ATM) should be introduced as soon as possible because of its prevailing demand of the customer and the customer is now transferring into the technology based.
- EXIM Bank should develop their E-Banking system.
- EXIM Bank should always monitor the performances of its competitors in the field of foreign trade.
- It seems to me that day-by-day customers operation is increasing; individual employee has to handle different types of job, which has a big impact on the customer. May be it’s should be the reason for employees dc-motivation as well as the customer’s dissatisfaction. For customer’s convenience in credit and advance department of EXIM Bank should provide more personnel to deliver faster service to their honorable customer.
- EXIM Bank Ltd. should focus on their promotional activities.
- They should also focus on the marketing aspects to let the customers to know about their products and offerings and more emphasis should be given on customer service to attract new customer.
Survey on customer service through general banking at EXIM bank of Narayanganj Branch discovered that there is prevailing a strong competition in this sector. Many banks are operating & more new are entering, hence increasing the competition. In this situation EXIM Bank Ltd. can modify its existing decisions in the following way: –
All the services offered by the bank are similar & prone to limitation by its competitors. Long established services may ease to satisfy fully the changing needs of the customers, such product may become increasingly non-competitive, unprofitable & even unnecessary. When all the banking institutions are offering similar services, EXIM Bank Ltd. Can offers different services. A significant part of the marketing effort must be devoted to the monitoring of existing services & where such deterioration is found, a decision must be taken on how to remedy the situation. In essence there are 2 alterations:
(I) Add New Features To Services:
The product may be updated & renovated so as to bring it back in line with customer requirements. The following tips may be considered:-
- It can introduce “Tele-banking” service, which provides the customer the opportunity to make inquires & requests to the bank over telephone with total confidentiality & security like the HSBC Bank.
- It can introduce” ATM facility” which provides 24 hours services.
- Soon after opening of a new a/c, a “Letter of Thanks “ or “Card of Thanks” should be sent to the a/c holder & to the introducer immediately upon opening of a new a/c.
- It can introduce “Safe deposit lockers” by which the clients will get a hidden place for keeping their valuable things.
- It can introduce “Consumer Credit Scheme” like other bank to the reliable clients.
(ii) Maintain Existing Services:
Current services can be maintained despite its fault on unpredictability & without alteration, either because the service is continuing to make profit, however slight or because it is considered an important component of the company’s image, which cannot be dispensed with.
The branch can use advertising to promote principally the name of organization & keep it in the forefront of customer’s consciousness, without referring in depth to any particular service. The bank can use the type of advertisement by creating its name, which is designed to distinguish itself in the mind of the customer from its competitors & refer it, more attractive.
Recruitment and selection of manpower must be made in a planned and fair way as if the purpose of recruitment could be served. For minimization of cost Bank can terminate the existing inefficient persons. This type of down sizing of the manpower will improve the health of the Bank. Appointment, placement posting of manpower should also be need-based.
The entire department should be well informed regarding their goals and objectives. It is essential to execute company objectives into individual target.
There must be a clear allocation of responsibilities authority and accountability.
As the competition is increasing day by day with more foreign and local private banks coming up with the extra pressure of some state run banks waiting to be privatized, EXIM Bank should introduce more promotional activities.
The bank should take the initiative to develop an effective research and development center to get innovative ideas to capture the competitive market.
To meet today’s urging of the customer, the bank should introduce Automated Teller Machine (ATM).
Every year they arrange get together for their loyal customer in Dhaka & Chittagong. For that reason EXIM Bank build good relationship with their clients. EXIM Bank also solves the clients problems and they show the procedure the overcoming the problem.
The report has attempted to explain the banking practices that are followed by the EXIM Bank Bangladesh Ltd, Narayanganj
Branch and also attempted to harmonize and link the theoretical knowledge acquired in the previous terms of the MBA program with the experience gathered in the periods of practical orientation.
Comparing practical knowledge with theoretical involves identification of weaknesses in the branch activities and making recommendations for solving the weakness identified.
Though all departments are covered in the internship program, it is not possible to go to the depth of each activities of branch in this limited internship period. So objectives of the internship program have not been fulfilled with complete satisfaction. However, highest effort has been given to achieve the objectives of the internship program.
During the internship, it is found Narayanganj branch of EXIM Bank provides all conventional banking services as well as some specialized financing activities to the country. Completing the whole research and findings I came to the conclusion that though the bank shows more emphasis on its foreign exchange division it still has got some general customers who are loyal to its general banking services. So in that case, my hypothesis adjudged at the very first of this project, “Emphasis Only on Foreign Exchange Division Might Be Disastrous For EXIM Bank, Bangladesh, Ltd.” proves to be wrong.
But still if the bank takes all the proper measures to enhance and expand its other divisions by promoting and introducing new schemes, it will reach the apex of success with high profit and productivity in no time.
- Annual Report, EXIM Bank Bangladesh Ltd. Year – 2004.
- Different types of brochures of EXIM Bank.
- The balance sheet of the branch
- Personal help of the officers with whom my training was concerned.
- Exim Bank website.
- Performance and Activities of Foreign Exchange of Janata Bank Ltd
- Prospect of SME Banking in Bangladesh of City Bank
- Foreign Exchange Management System of Jamuna Bank Limited
- SMS Banking
- General Banking Activities of Al- Arafah Islami Bank Limited.
- General Banking Activity of National Credit and Commerce Bank