1. “Foreign Exchange operations of BASIC Bank Limited” A study on Dilkhusa Branch Prepared by: Md. Zakir Hossain ID: 052-11-913 Program: BBA Daffodil International University

2. Objectives of the study To describe foreign exchange activities of BASIC bank Ltd. To identify some problems related to foreign exchange activities of BASIC bank Ltd. To make some recommendation to solve the problems.

3. Methodology of the study The report has been prepared based on primary and secondary data. Primary sources of data –Officers of BASIC bank Ltd. –Clients of BASIC bank Ltd. Secondary sources of data –Web page of BASIC bank Ltd. –Annual Report 2007 of BASIC bank Ltd. Methods of data collection –Day to day desk work. –Discussion with the officers of foreign exchange dept. and customers.

4. PopulationMale employeesFemaleemployeesTotal Officers415 Clients606 Total10111 Size of sample Method of sampling Convenience sampling

5. About the BASIC bank Preliminary Condition At the outset, the Bank started as a joint venture enterprise of the Bank of Credit and Commerce International (BCC) Foundation with 70 percent shares and Government of Bangladesh with the remaining 30 percent shares. The BCC foundation had established to facilitate different service oriented organization like school, college etc. At the time of inception the authorized capital of the bank were Taka 100 million and paid up capital were Tk.80.00 million. Turbulence of BASIC bank in 1990 In 1990 globally the operation of Bank of Credit and Commerce (BCC) had been suspended for the allegation of money laundering activity. The BASIC bank then faces huge problem as it was carrying the name of Bank of Credit and Commerce though the BCC foundation was a separate entity and had not any attachment with the money laundering and other activity of the said BCC bank. Due to the outbreak of the BCC the bank faces problems in deposit, lending and also in foreign exchange business and the overall goodwill of the bank affected severely. At last due to honest endeavor of Mr. Qurashi the Government of Bangladesh took over 100 percent ownership of the bank on the 4th June 1992. From that time BASIC bank Ltd. acts as State Owned Schedule Bank.

6. The present scenario of BASIC bank Authorized capital of BASIC bank in the year 2007 stood at Tk.2000.00 million paid up capital at Tk.1247.40 million, reserve at Tk.1349.17 million and shareholders equity at Tk.2596.58 mill. In each year the bank has showing steady growth in deposit, advances and providing a handsome profit to the Government of Bangladesh. BASIC bank among other nationalized and specialized banks are providing highest profits to the Government. In the year of 2007 it had been rated as “A” grade bank as per CAMEL rating. At now bank operating 32 branches with 721 employees those are young, with extra ordinary academic background and experiences.

7. Activities of foreign exchange dept. Export Export Advising Back to Back (B2B) L/C Packaging Credit (P/C) Export Bill Purchase (Discounting) Exp. Document Forwarding Export Incentives Realization (As Govt. Announced Product) Import Import Advising Import L/C Opening Others Insurance of Travelers cheque Foreign Currency Account Opening (FCT)

8. Findings of foreign exchange activities Problems Identified 1.Manual registering system of export, Letter of credit (L/C), and export bill purchase is time consuming that makes customer dissatisfaction. 2.Human resources of foreign exchange department are not efficient. They have limited knowledge on technology. 3.Export-import documents and files are kept in a small locker and indiscriminately. To found a single file its need to check all files. 4.The space is very small for foreign exchange department and desk of officers very closely so officers feel uneasy in the time of serving customer.

9. Recommendations 1.Bank should introduce online registration system in export, L/C, and export bill purchase. That will increase performance of serving customers and to find previous records & documents. 2.Bank should arrange training program for the officers of foreign exchange department to acquire knowledge over technology. 3.Bank should recruit young talents because current officers are low know-how within technology. 4.Fill management need to be well designed. They can attached a print out list of file into the outside of the self and strictly follow the list. Then it will be easy to find out any previous document. 5.Bank should increase office space to give adequate space for foreign exchange department.