Subject: Submission of the Internship Report on "Investment Activities of EXIM Bank Limited at Uttara Branch". It is with great pleasure that I submit here the report titled "Investment Activities of EXIM Bank Limited at Uttara Branch" which I have prepared while taking a course of internship in BBA program, Daffodil International University and supervised by you as ' a course has been assigned. teacher. You have asked me to prepare this report as a voluntary work on Daffodil International University of the above title of the course.
This is to confirm that the study titled “Investment Activities of EXIM Bank Limited at Uttara Branch” has been prepared by Amana AkterNeto baring ID under Business Administration Department of Daffodil International University for completion of BBA degree. I hereby solemnly declare that the work presented in this report titled “Investment Activities of EXIM Bank Limited at Uttara Branch” has been done by me and has not been previously submitted to any other university or organization for academic qualification/certificate/diploma or diploma. The Bank's commercial banking activities encompass a wide range of services, including mobilizing deposits, providing investment facilities, discounting bills, performing money transfer and exchange transactions, and performing other related services such as safekeeping, collections and issuing guarantees, acceptances and letters. credit.
The report will mainly focus on “Investment Activities of Export Import Bank of Bangladesh LTD.” which consists of Chapter One - Introduction, Chapter Two - Methodology and Bank Overview, Chapter Three - Investment Activities of EXIM Bank Ltd. Chapter Five - Evaluate the investment performance from Chapter Six - Find out the problems of EXIM Bank and provide some recommendations on the problems, conclusion and.
Objectives of the Export-Import Bank Limited (EXIM Bank ltd.) are
SCOPE OF THE REPORT
Methodology
Limitation of the report
Historical Background of EXIM Bank Limited
Vision & Mission
Corporate Vision
Corporate Mission
This report focuses on the main three modes of investment activities of EXIM Bank Bangladesh Limited. MUDARABA is an Islamic investment system where a bank buys a property with free and clear ownership. It is an interest-free loan that is considered fish, rather than being an acceptable form of credit sale under Sharia law.
Types of Mudaraba
Bai-Muajjal
Important Features of Bai-Muajjal
It is permitted and in most cases the customer will approach the bank with an offer to purchase a specific commodity through a BAI-MUAJJAL agreement. It is allowed to carry cash/guarantees to guarantee the fulfillment of the promise or to indemnify the bank for damages caused by non-payment. The bank can sell the goods at a higher price than the purchase price to make a profit.
Sanction & Disbursement
Interpretation: From the chart we can see that, in 2013 the quick report of EXIM Bank Ltd. Interpretation: From the chart we can see that, in 2013, the Operating Profit Margin of EXIM Bank Ltd. Interpretation: From the chart we can see that, in 2016, the Return on Investment of EXIM Bank Ltd.
Rules of Ijarah are mentioned below
Custody and control of the assets
However, the bank seizes it if the customer violates the terms and conditions of the installment purchase agreement. The customer will be asked to provide transport/vehicle for physical inspection at least once a month or more often as deemed necessary until the hire purchase agreement is fully adjusted. Funds delivered to any customer on an installment purchase basis and subsequently seized for breach of the terms and conditions of the installment purchase agreement will be under the Bank's own control.
Follow-up, supervision and recovery
Investment Activities Mode Wise Performance
So, it can be said that these three ways of increasing investment activities are increasing from year to year.
Investment Procedure
- Procedures of Opening Mudaraba
- Selection of Mudarib (agent)
- Sanction
- Processing and Appraisal of Bai-Muajjal
- Lending Procedure
- Application from the credit candidate
- Past reputation: It is considered by the accompanying criteria
- Obtaining CIB Report
- Collection of records
- Scrutinizing Documents
- Analysis of gathered data
- Evaluation of CIB Report
- Analysis of Project feasibility
- Branch exercises and valuation of insurance
- Investment proposition and getting ready MEMO for EC Meeting
- Collection of Charges Documents
- Recovery of unpredictable/stuck-up/past due speculation
EXIM Bank underlines on borrower choice and starts at the earliest reference point of the technique through essential meeting of the customer. Credit report of the customer: this is given by the Bangladesh bank which has a decent legitimacy to estimate customers. EXIM Bank leans towards experienced officers for this reason; for example, the responsible for speculation section of the branch administrator decides on the quick selection.
By and by Head Office of the bank collects the CIB report for its branches at the underlying stages of the credit evaluation methods. Banking authority of the speculation office assesses the enterprise for which the advance is committed. By and by EXIM Bank does not break down the feasibility of the small credits which is exceptionally normal in EXIM Bank.
The given data is analyzed in detail by the bank to quantify the feasibility of the venture. The speculation section in the branch includes along with two or four people who depend on the necessity and accessibility of labor of the branch. Director of the branch takes all the choices regarding credit with the help of responsible for speculation department.
It should be guaranteed that the security is in the physical possession of the mortgagor(s) and the mortgagor(s)/owner(s) have legal title to it. In view of the examination (credit check) conducted by the branch, the branch proposes a preliminary proposal. EC meeting is held twice a week and is generally directly controlled by the notable chairman of the Bank.
Despite the fact that the EC update is a very organized message, it should be arranged with caution. If the speculation customer does not contact within a reasonable time to refund, a legitimate notice must be filed through the bank's legal advisor, with duplicate supported to the head office. The response to the legitimate notice should also be passed to the head office, with comments from the branch manager for further guidance.
Financial Position
All Financial Activities
Reserve Fund
Investment (General)
Financial Performance Analysis of EXIM Bank Ltd
- Net profit margin
- Return on Assets (ROA)
- Return on Equity (ROE)
- Current Ratio
- Quick Ratio
- Operating Profit Margin
- Earnings per Share (EPS)
- Return On Investment
- Sector wise Investment of EXIM Bank Limited. (2013-2017)
On the other hand, after 2014, the net profit margin decreased rapidly in 2015, and the figure is 32.87% after that year in 2016, where it is increasing slightly. Return on assets is an important financial pointer used to assess the return coming from the assets of a company. Interpretation: From the following graph it is seen that the ROA of EXIM bank limited gets its highest grade in 2014 which is 10.59%.
Return on assets is a key financial indicator used to assess a company's return on equity. Explanation: From the graph we can see that in 2014 the ROE of EXIM Bank Ltd. Explanation: From the graph we can see that in 2013 the current ratio of EXIM Bank Ltd.
After that it increased again year by year with the lowest point which is 13.38% in 2016 in 2015 the operating profit margin is seen the highest point which is 19.60%. Interpretation: From the graph we can see that, in 2016, the earnings per share of EXIM Bank Ltd. As a 3rd generation leading commercial bank operating under Islamic Shariah, EXIM bank provides/trades a variety of banking services including a wide range of deposit and investment products, foreign exchange, remittances and other ancillary services with the support of most sophisticated/modern IT and professional management.
Interpretation: In those tables we can see, Exim bank focuses on trade and others sector, then apparel sector and agro based industry for financing and growth rate is increasing.
Findings
This fluctuation in operating profit margin is not good for the bank in terms of generating more profit, so the bank should focus on it and keep it level. If EXIM bank carefully invests in those sectors which are safe and help earn more profit.
Recommendation
CONCLUSION
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