Functional Difference of bank and non bank

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Title Fly
Report on:
Functional difference between a bank and a non-bank financial institutions:
“A Comparative Analysis”.

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Assignment on
Course Title- Financial Institution & Markets
Corse Code- FIN 4102
Prepared for:
Ms. Afia Akter
Assistant Professor of Finance
Coordinator of MBA program
Northern University Bangladesh
Prepared by:
Name ID
Md.Hafizur Rahman BBA-140205447
Md.Imran Sheikh BBA-150105534
Shamim Ara Tutul BBA-150105520
Monira Banu BBA-130205222
Section-A, Semester- 10th
Date of submission: 24 March 2018.

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Letter of Transmittal
24 March 2018,
To
Ms. Afia Akter
Assistant Professor of Finance
Dhanmondi, Dhaka.
Subject: To submit a report on “Functions of A bank & A non-bank financial institutions.”
Dear Madam,
With due respect, we would like to inform you that, it is a great pleasure for us to submit the
report on “Functional difference between a bank and a non-bank financial institutions: A
Comparative Analysis.” as a requirement of BBA program. While conducting the report, we
have tried our best effort to gather all necessary information (positive & negative) to the
concentrated part of the report to enrich it. We believe that with our limited knowledge this
report will provide necessary information about this case.
We tried our level best to put meticulous effort for preparing the report. Any shortcomings or
flaws may arise as we are very novice in this aspect. We will wholeheartedly welcome any
clarification and suggestion about any view and conception disseminated in our report.
In preparing this report I have followed the instructions of yours. I will be glad to clarify any
discrepancy that may arise.
Truly yours
Md.Hafizur Rahman (BBA-140205447)
Md.Imran Sheikh (BBA-150105534)
Shamim Ara Tutul (BBA-150105520)
Monira Banu (BBA-130205222)

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First of all we would like to thank the almighty for giving us the strength and the aptitude to
complete this report within due time.
We are deeply indebted to our course teacher “Ms. Afia Akter for giving us such an important
topic named “Financial Institution & Markets” of a bank and a non-financial institutions. We
have chosen Exim Bank Ltd We also express the depth of our Appreciation to our honorable
course teacher for her suggestions and guidelines. Without her support this report would not have
been possible and we extremely grateful for her valuable time.
This report has enabled us to study a number of articles. We would like to thank to all the
writers. Editors and publishers who have bring those important materials in front of us because
without that materials would be very difficult for us to make such a report. The intellectual
member of this group has worked hard to establish this report. They are:
Name ID
MD.Hafizur Rahman BBA-140205447
MD.Imran Sheikh BBA-150105534
Shamim Ara Tutul BBA-150105520
Monira Banu BBA-130205222
ACKNOWLEDGEMENTS

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Abbreviations
AOF Accounting Opening Form
ATM Automated Teller Machine
BB Bangladesh Bank
BDT Bangladesh Taka
B/L Bill of Lading
CC Credit Card
CRM Customer Service Representative
CSO Customer Service Officer
CSR Customer service Representative
DD Demand Draft BOE bill of exchange
EPB Export Promotion Bureau
FCY Foreign currency
IMP Import From
ICB Investment corporation Bangladesh
IPO Initial Public Offering
IRC Import Registration certificate
PL Personal Loan
PIN personal identification Number
ATM Automated Teller Machine
BACH Bangladesh Automated Clearing House
BACPS- Bangladesh Automated Cheque Processing System

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Table of Content
Topic Name Page No
Chapter One: Introduction 8-13
Chapter Two: Organization overview 14-16
Chapter Three: Group Members duties & responsibility 17-18
Chapter Four : Finding& Analysis 19-34
Chapter Five : Function difference Between Bank and NonBank 35-36
Conclusion & recommendation 37-39

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Executive Summary:
Banking sector is expanding its hand in different events every day. At the same time the banking
process is becoming faster, easier, and the banking area becoming wider. As the demand for
better service increases day by day, they are coming with different innovative ideas and
products. In order to survive in the competitive field of the banking sector, all banking
organization are looking for better service opportunity to provide their fellow clients. As a
result, it has become essential for every person to have some idea on the bank and banking
procedure. EXIM Bank Ltd. Believes in the vision of together, towards, tomorrow. To achieve
the desire goal the bank is showing the excellence at all stages with a climate of continuous
improvement. Banks strategic plans and networking will strengthen its competitive performance
over others in this rapidly changing competitive environment.
In chapter one I have discussed about the introduction, origin, scope, data collection, limitation
& methodology of the study. In chapter two, I have discussed about the historical background,
organizational structure mission, vision, objective & performance of Export Import Bank of
Bangladesh Ltd. In chapter three I have discussed about the general banking of EXIM Bank.
Topic analysis is in chapter four which include foreign exchange policy of EXIM Bank Ltd.
Then in chapter five I have showed different kinds of analysis and findings about the EXIM
Bank Ltd. After that in chapter six I have placed suggestions and recommendation in chapter
seven I have given my conclusion.
The Bangladeshi Financial System in its composition, status, evolution, functional arena besides
the nexus between the financial system and economic development. The operational profile, the
growth focus, the Dimensions of business volume over the years and also the financial
Performance of the Banks and NBFCs in Bangladesh are also given a comprehensive focus to
provide vital background peripheral to the study. An insight has also been given on recent
financial sector reforms and its implications on the bank and non-Banking financial institutions.
The financial system facilitates transfer of funds, through financial institutions, financial
markets, financial instruments and services. Financial institutions act as mobilisers and
depositories of savings, and as purveyors of credit or finance. They also provide various
financial services to the community. They act as intermediaries between savers and investors.
All banks and many non-banking institutions also act as intermediaries, and are called as non-
banking financial intermediaries (NBFI).
Financial institutions are divided into the banking and non-banking ones. The distinction
between the two has been highlighted by characterizing the former as “creators” of credit, and
the latter as mere “purveyors” of credit.1 the banking system in Bangladesh comprises the
commercial banks and cooperative banks. The examples of non-banking financial institutions are
Uttara Finance and Investments Limited, Reliance Finance Limited, IDLC Finance Limited,
LankaBangla Finance Ltd etc.

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1. Introduction:
The financial system facilitates transfer of funds, through financial institutions, financial
markets, financial instruments and services. Financial institutions act as mobilisers and
depositories of savings, and as purveyors of credit or finance. They also provide various
financial services to the community. They act as intermediaries between savers and investors. All
banks and many non-banking institutions also act as intermediaries, and are called as nonbanking
financial intermediaries (NBFI). Financial institutions are divided into the banking and non-
banking ones
1.1-Background of the Study:
Successful working capital management makes it possible for the organization to acquire the
goals of company and smooth continued operation of the organization. As a part of BBA
program, our Financial Institutions & Markets course teacher Ms.AfiaAkter assigned us to
prepare a report on “Functions of a Bank & a non-bank financial institutions” related topic
on Financial institutions on Market Course. We have selected our report topic as Funtional
difference between an Exim Bank and LankaBangla Institution Comparative Analysis.”
In this scenario, the Non-Banking Finance Companies (NBFC) sector has scripted a story that is
remarkable. It speaks to the truly diverse and entrepreneurial spirit of Bangladesh. From large
infrastructure financing to small microfinance, the sector has innovated over time and found
ways to address the debt requirements of every segment of the economy. To its credit, the
industry has also responded positively to regulatory efforts to better understand risks and to
address such risks through regulations. Over time, the sector has evolved from being fragmented
and informally governed to being well regulated and in many instances, adopted best practices in
technology, innovation and risk management as well as governance.
1.2 Objective of the study
In Bangladesh now different commercial banks and the non-banking financial organizations are
operating there business. And every organization now involved attracting the retail customers
that means the middle income group people of the country. To draw their attention the sells
persons of different organization try to knock every possible door. These activities of different
organization increase the interest about this sector. As both commercial banks and the
nonfinancial institutes are in the market, so it makes confusion to the general people about the
activities of these organizations. This report helps the customers to makes differentiate between
these.

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1.2.1- Broad objectives:
The main objective of this study is to understand the process of managing working capital along
with its components and to see its components performance.
1.2.2 Specific objectives:
 To focus on theoretical knowledge in the field of Financial Institutions.
 To analyze and examine their data in our way.
 To assess and evaluate the practical data with theoretical models.
 To make ourselves familiarize with a real financial institutions.
1.3 Significant of the study
This study can help us to understand which institution is more preferable for Investors and
Borrowers Bank plays an important role in promoting economic development of a
country. They collect savings of large masses of people scattered throughout the
country, which is the absence of bank world have remained idle and unproductive. These
amounts are collected, pooled together and made available to commerce and industry for meting
the requirement
Non Banking Financial company supplement banks by Providing the infrastructure To allocate
surplus resources to individuals and companies with deficits .NBFC’S keep with services
flexible client
1.4 Scope of the study
In Bangladesh there is lot of scope of the study on bank and non-bank financial institution.
The banking system is composed of four state-owned commercial banks, five specialized
banks, thirty eight private commercial banks, one land development bank and nine foreign
commercial banks. There are 30 non-bank financial institutions in our country. So it’s very
easy to collect the information on bank and non-bank financial institution
1.5 Methodology of the study
The study uses both primary data and secondary data. The information of the report was
collected from secondary sources like books, published reports and web site of the Bank and
financial institution. For general concept development about the bank and financial
institution short interviews and discussion session were taken as primary source

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1.5.1 Sources of the Data
1.5.1.1 Primary sources:
 Face to face conversation with the respective officers and staffs of the corporate
office
 Practical work experience of an Exim Bank And LankaBangla Finance Institutions
 Relevant file study as provided by the manager concerned
 Selective field visit (Credit Customer) and conversation with customer
 Questionnaire survey of credit customers and employees
1.5.1.2 Secondary sources:
 Credit policy book of Exim Bank and LankaBangla Finance Ltd
 Website of Exim Bank and LankaBangla Finance Ltd
 Annual Report of Exim Bank and LankaBangla Financial Ltd
 Website of Bangladesh Bank
 Newspapers
We used different types of instrument to make this report are given below
 Set up Questionnaire
 Notebook
1.5.2 Sample Size Of The Study
1.5.3 Survey Instrument:
 Note Book
 Pen
 Pencil
 Papers
 Mobile Recorder

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1.5.4 Data Analysis:
1.6 : Limitations of the study:
We are very happy for getting a chance to prepare a report on “Functional difference between a
EXIM Bank and a LankaBangla Finance Ltd: A Comparative Analysis.” We tried heart & soul to
prepare a well-informed report. But unfortunately we faced some difficulties when preparing this
report. We tried to overcome the difficulties. In spite of trying our level best, some difficulties
that hamper our schedule report work:
 Full information required was unavailable
 Data collected in this field is not sufficient.
 It is impossible to properly complete this type of report, because this type of report can
only be made by internal managers who have wide range of classified data.
 Core types of info for mathematical models are mostly internal.
 Several sector’s (such as inventory) data cannot be found to establish a model for
analysis.
 Less analytical power

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1.6 Gantt Chart :
Description of the
project
Time
Week
One
Week
Two
Week
Three
1.Assigning the
report
2.Data Collection
3.Data analysis
4.Report Submission

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Chapter Two
Organization Overview

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2.1 Overview of The Bank
2.1.1 History of EXIM Bank:
Export Import Bank of Bangladesh Limited was established in the year 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 and successful
entrepreneurs joined their hands with the founder chairman to materialize his dream. Indeed, all
of them proved themselves in their respective business as most successful star with their
endeavor, intelligence, hardworking and talent entrepreneurship. Among them, Mr. Nazrul Islam
Mazumder who is an illuminated business tycon in the Garments business in Bangladesh
became the Honorable Chairman after the demise of the honorable founder chairman.
The Bank starts functioning from 3rd August, 1999 with its name as Bengal Export Import Bank
Limited. On 16th November 1999, it was renamed as Export Import Bank of Bangladesh
Limited with Mr. Alamgir Kabir as the Founder Advisor and Mr. Mohammad Lakiotullah as the
Founder Managing Director respectively. Both of them have long experience in the financial
sector of our country. By their pragmatic decision and management directives in the operational
activities, this bank has earned a secured and distinctive position in the banking industry in
terms of performance, growth, and excellent management. Under the leadership of Mr.
Lakiotullah, the Bank has migrated all of its conventional banking operation into Shariah Based
Islami Banking in the year July 2004.
2.1.2 Performance OF EXIM Bank
EXIM Bank Limited was incorporated as a public Limited company on the 2nd June 1999 under
Company Act 1994. The Bank started commercial banking operations effective from 3rd August
1999. During this short span of time the Bank has been successful to position itself as a
progressive and dynamic financial institution in the country. The Bank widely acclaimed by the
business community, from small business/ entrepreneurs to large traders and industrial
conglomerates, including the top rated corporate borrowers from forward looking business
outlook and innovative financing solution.
2.2 Overview of LankaBangla Finance(NFBC)
LankaBangla Finance Limited operates as a non-banking financial institution in Bangladesh. It
operates through four segments; Core Financing Business, Brokerage Business, Investment
Business, and Asset Management Business. The Core Financing Business segment offers fund
based services, such as lease finance, term finance, real estate finance, hire purchase, credit card
operation, small and medium enterprises loans, auto loans, personal loans, factoring, syndication
finance, revolving credit, loan against deposit, staff loans, etc. The Brokerage Business segment

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deals in stocks, shares and securities, commercial papers, bonds, debentures, debentures stocks,
foreign currencies, treasury bills
2.2.1 History of LankBangla
LankaBangla Finance Limited started its journey long back in 1997 as a joint-venture financial
institution with multinational collaboration having license from Bangladesh Bank under
Financial Institution Act-1993. Now LankaBangla is the country’s leading provider of integrated
financial services including corporate financial services, retail financial services, SME financial
services, stock broking, corporate advisory and wealth management services. Under the broadest
umbrella of products and service offerings, we are the lone financial institution to operate credit
card (MasterCard and VISA) and also provide third party card processing services to different
banks in Bangladesh. LankaBangla is a primary dealer of government securities since November
2009. Since 2006 LankaBangla has been listed in both DSE & CSE in Bangladesh.
2.2.2 Performance of LankBangla
Their Performance are very excellent .they achieve many Award for their task: Presented Annual
Rep
 Received ICMAB Best Corporate Award 2016
 Received ICAB National Award for Best Presented Annual Reports 2016
 Received SAFA BPA Award 2015 for Best Presented Annual Report under Financial
Service Sector category-(Winner)
 Received 16th ICAB National Award for Best Presented Annual Report, 2015 as 2nd
Position
 Received Membership Certificate of the Singapore Institution of Management (SIM)
 Received Best Presented Annual Report Awards and SAARC Anniversary Awards for
Corporate Governance Disclosures 2014-(Winner)
 Received 15th ICAB National Award for Best Presented Annual Report 2014 as 2nd
Position on

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Chapter Three
Group Members Duties and Responsibilities

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Group Members Duties and Responsibilities:
Name ID Activity
MD.Hafizur Rahman BBA 140205447 Asking Question, Typing ,Editing,
Print, Binding,
Shamim Ara Tutul BBA-150105520 Answer writing and manage money
of our budget.
Md.Imran Sheikh BBA-150105534 Recording and asking question.
Munia Banu BBA-130205222 Asking Question and note

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Chapter Four
Findings and Analysis

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4.1 Function of a Bank :
A Picture of Functions of Banking Sector

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4.1.1 General Banking functions
General banking is the starting point of the banking operation. It is the department which
provides day-to-day services to the customers ‘main functions of general banking department are
The relationship between banker and customers begins with the opening of an account by the
customer. Opening an account binds the banker and customers into contractual relationship. But
selection of customer for opening an account is very crucial for a bank. In fact, fraud and forgery
for all kinds start by opening an account. So bank should take extreme caution in this section. A
customer can open different types of accounts through this department such as:
• Current Account.
• Savings Account.
• Term Deposit (STD) Account.
• Fixed Deposit (FDR) Account
4.1.1.1 Current Account:
Al-Wadia Current Deposit
Al-Wadia current account follows the Principle of Islami Shariah wherein the bank is deemed as
a keeper and trustee of funds as Al-Amana. This deposit that operates by taking permission from
depositors would be taken to use their fund according to Shariah Principle and depositors would
not receive any kind of profit. As such the bank is under obligation to return the entire money on
demand by the customer.

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Main Features:
 Halal way or without interest transaction
 Unlimited deposit or withdrawal
 No profit will be given
 Cheque book facilities
 ATM Card
 Free online transaction
 No over draft will be allowed in the account
Required Documents:
 Account opening duly filled up and signed by account holder
 Two copies passport size photographs of every operators duly attested by introducer
 Photographs of National ID Card/Passport/Chairmen Certificates Introducer signature
Terms and Condition:
 Account will be operated as per Mudaraba Principals
 At least 65% of investment income will be distributed among the Mudaraba
Depositors as per weightage allocated for each accounts
 Mudaraba Savings Deposit will bear 0.75 weightage
4.1.1.2Saving Account: Mudaraba Saving Deposit:
Mudaraba savings account is open under the Mudaraba principle of Islami Shariah. Mudaraba
savings accounts are mainly meant for Non-Trading customers who have some potential saving
with small no. of transactions taking place. More than one person can open and operate a
Mudaraba savings account. A guardian on behalf of a minor can open a Mudaraba savings
account. The account provides expected halfyearly provisional profit.

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Main Features:
 Attractive provisional rate of profit
 Minimum initial deposit is Tk. 1000.00
 Half-yearly account statement
 Debit card facility with limited withdrawal
 Free ATM cash withdrawal from all ATM of EXIM Bank
 SMS banking for statement
 Salary crediting facility
 Cheque book facility
 Fund transfer facility
Required Documents:
 Completed account opening from duly signed by account holder
 Two copies passport size photographs of every operators duly attested by introducer
 Photographs of National ID card/Passport/Chairman certificates
 Introducer signature
 Passport size photographs and signature of nominee
 Account will be operated as per Mudaraba principals.
 At least 65% investment income will be distributed among the Mudaraba Depositors as
per weightage allocated for each accounts.
 Mudaraba Savings Deposit will bear 0.75 weightage.
4.1..1.3 Term Deposit (STD) Account:
Mudaraba Term deposit Receipt:
Mudaraba Term Deposit Receipt (MTDR) account is opened under the Mudaraba (Profit
Sharing) principal of Islami Shariah. It is issued by exim bank branches against deposit of
certain amount of money by customer, person, and organization. These deposits are repayable
subject to period of notice. The minimum amount of MTDR, rate, renewal procedure and
premature encashment rules determined and circulate the Head Office from time to time. These
deposits are repayable subject to a period of notice and hence known as time deposit or time
liabilities meaning thereby that these are withdraw able subject to a period of notice and not on
demand.

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Main Features:
 Any adult person (individually or jointly) having sound mind can open MTDR Account
 Minimum depositing amount Tk. 10000.00 and above but multiple of 100.00
 One or more account can be opened in the same name at the same branch of the bank
 Profit will be calculated on daily basis on provisional rate of profit
 Investment against lien of such receipt may be allowed up to 90% of deposited amount
 No profit shall be allowed for premature encashment within one month
 If the account is encashed after completion of any tenure but before maturity, depositors
will be entitled to receive the benefit at the provisional rate of profit of Mudaraba
Savings Account
 The provisional rate of profit of Mudaraba Savings Account will treat the provisional
rate of profit
4.1.1.4 Fixed Deposit (FDR) Account:
Deposit Scheme:
Mudaraba Super Saving Scheme:
Mudaraba Super Saving Scheme helps to build up capital and it is the prime source of business
investment in a country. To create more awareness and motivate people to save, EXIM Bank
offers Super Saving Scheme. Any customer can open more than one account in a branch in
his/her name or in joint names. The deposit can be made in multiples of Tk. 5,000.00. The
deposit will approximately be double in 5 years 6 months.
Mudaraba Monthly Saving Scheme:

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Mudaraba Monthly Savings Scheme helps to the secure with ease. It provides small savings of
today that will comfort tomorrow to their clients. The savings amount is to be deposited within
the 10th of every month and this deposit may also be made in advance. The savings period is for
5, 8, 10 or 12 years.
Mudaraba Multiplus Savings Scheme:
Mudaraba Multiplus Saving Scheme helps to gather public‘s idle money in exchange of high
return with the shortest possible time. Any customer can open more than one account in a branch
in his/her name or in joint names. The deposit can be made in multiples of Tk. 5,000.00. The
period of deposit is 10 years.
Mudaraba Hajj Deposit Scheme:
Mudaraba Hajj Deposit Scheme offer to the customer to fulfill the desire of religious minded
people. An adult person having sound mind can open this account only. The tenure of Mudaraba
Hajj Deposit Scheme will be 5, 8, 10, 15 and 20 years.
4.1.1.5Local Remittance Section
The commercial Bank Remittance facilities to its customer is to enable them top avoid risk
rising out of profit or loss in cash carrying cash money to one place to another or making
payment to someone in another places. Banks take this risk remit the fund on behalf of the
customers to save them from any awkward happening through the network of their branches and
ensure payment to the beneficiary in exchange of a little bit benefit known as commission. There
are four mode of remitting money from one place to another.

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Local
Remittance
Section
Mail
Transfer
( MT )
Telegraphic
Transfer
(TT )
Demand
Draft
(DD )
Payorder
(PO )
Figure: Local Remittance Section
Pay Order Issue:
Following procedure is maintained for the issuance of pay order (PO):
• Customer is given a PO form.
• After filling the form carefully, the customer is pays the money in cash or
by cheques.
• The concerned teller then issue PO on its specific block. This block has
three parts, one for bank and another two for customer. ―A/C
Payee‖ crossing it’s sealed on all PO issued by the bank. The teller then writes
down the name and address of the beneficiary on the main part of the PO block.
In other two part name and address of the customer is written.
• The teller gives an entry to the registry book and maintains the same
number of PO block.
• Two authorized officer signed the PO block.
• At the end customer is provided with the two parts of the PO block after
signing of the backs of bank‘s part.

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Demand Draft Issue:
• Customer is supplied with DD form.
• Customer fill up the form, which includes the name of the drawer, name
of the payee, amount of money to be sent, commission, name of the
drawee branch, signature and address of the drawer. the customer may
pay in cash or by cheques f After the money is paid
and the form is sealed and signed accordingly it is given to the DD issuing
desk.
• Bank part contains issuing date, drawer‘s name, payee‘s name and some
of the money and name of the drawee branch.
After finishing all the required information entry of the DD is given in the DD issuing register
and at the same time bank issues a DD confirmation slip is entered into the DD advice issue
register and a number is put on the confirmation slip form the same register. Later the bank
mails this advice to the drawer branch.
Telegraphic Transfer (TT):
Customer fills the TT form and pays the amount along with commission in cash or by cheques.
The concerned officer issues a coast memo after receiving the TT form with payment seal, than
signed it charge Tk. 40.00 and 15% of VAT on TT charge. The TT charge will increase @ Tk. 1
for every Tk. 1000.00.
Mail Transfer (MT):
MT Issue: Following procedure is maintained while issuing a MT.
• Customer is supplied with MT form.
• Customer fill up the form which include the name of the drawer, name of
the payee, amount of the money to be sent, commission, name of the
drawee branch, signature and address of the drawer.
• The customer may pay in cash or by cheques from his account
(If any).
• After the money is paid and form is sealed and signed accordingly it is
given to the MT issuing desk.
• Upon receiving the form the concerned officer issues a MT on a particular
block

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• MT block contain issuing date, drawer‘s name, payee‘s name, and sum of
the money and name of the drawee branch
4.1.1.6 Bills and Clearing Section:
According to the article 37(2) OF Bangladesh Bank order, 1972, the banks which are the number
of clearinghouse are called as schedule banks. The schedule banks clear the cheques drawn upon
one another through the clearinghouse. This is an agreement by the central bank where every
day the representative of the member banks gather to clearing the cheques. Banks for credit of
the proceeds to the customer‘s account accept cheques and other similar instruments. The bank
receives many such instruments during the day form account holders. Many of these instruments
are drawn payable at other banks. As cheques payment order or bill come from a bank with the
range of local clearinghouse then it is sent for collection through clearinghouse. The cheques
may be crossed or not, if a customer of EXIM bank deposits a cheques of another bank which is
within clearinghouse, then the bank will credit his account, and collect the cheques. Through the
amount is credited in the customer‘s account but will not get the money until the cheques is
honored.
Essential things for clearing the instrument:
There are three Essential things for clearing the instrument:
(i) Crossing seal.
(ii) Endorsement seal
(iii) Clearing seal
4.1.1.7 Cash Section:
Cash section is a very sensitive organ in a branch and is handling with extra care. Operation of
this section being at the beginning of the banking hour. Cash officer being his transaction with
taking money from the vault, known as the opening cash balance. Vault is kept in a much
secured room. Keys to the room under control of the cash officer and branch in charge. The
amount of opening cash balance is entering into the cash register. After transaction of whole
day, the surplus money remain in the cash counter is put back in the vault and known as the
closing balance.

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4.1.2 Credit banking functions & Investment of EXIM Bank:
As a 3rd generation leading commercial bank operating under Islamic Shariah, EXIM bank
provides/deals in a variety of banking services including wide range of deposit and investment
products, foreign exchange, remittance and other ancillary services with the support of most
sophisticated/modern IT and professional management. The investment portfolio of the bank
comprises of diversified areas with all nationally identified thirst sectors/areas of business and
industry. The bank has given utmost importance/efforts to park and maintain quality assets and
is committed to retain good customers through congenial customer relationship management
and financial counseling considering the customers as a real business partners. At the same
time efforts have been made to induct new customers having vast potentiality, to diversify
existing portfolio and explore new potential business area adjustable with the change in
business growth of national economy and global trend as well. By adapting the aforesaid
technique/process bank has attained a great success in building a well-established and
structured investment port-folio and minimizing overall portfolio ri
The main investment businesses are focused on the following sectors/areas
 Ready Made Garments

 Hospitals & Clinics

 IT Related business

 Agricultural and Agricultural developments items

 Fishing and fishing business promotion

 Telecommunication

 Transportation and communication

 Forestry and furniture

 Construction business and housing development

 Leather and leather goods

 Plastic and other synthetics

 Entertainment

 Photography


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 Ceramic

 Hotel & tourism

 Warehouse and container services

 Printing and packaging

 Gunning and Bailing

 Pathological Laboratories

 Cold Storages

 Horticulture- Flower growing and marketing

 Food and oil processing plants

 Other admissible trading and intermediaries
EXIM Bahan
An investment Scheme facilitating to purchase a new/reconditioned car/microbus/ station wagon
etc, for own use.
Feature of investment
 To extend investment facilities to an individual for purchasing a new/reconditioned
imported vehicle from showroom.
 To ensure investment to a person who has the capacity to maintain the vahicle but will help
to accumulate the capital at a time.
 To provide investment facility very promptly and easiest condition to a deserving
customer/applicant.
 Facility of repayment by 12 to 60 equal monthly installments to be determined on the basis
of monthly income of the customer.

31
4.1.3. FOREIGN EXCHANGE:
Foreign Exchange Department is international department of the bank. It deals globally. It facilitates
international trade through its various modes of services. It bridges between importers and exporters. If the
branch is authorized dealer in foreign exchange market, it can remit foreign exchange from local country to
foreign country. This department mainly deals in foreign currency. This is why this department is called foreign
exchange department. The term foreign exchange has different connotations in different contexts. Sometimes it
is referred to as the process of conversion of one currency into another, sometimes as the process of transferring
money from one country to another. In Bangladesh is has a legal a legal definition too. In terms of section 2(d)
of the F. E. R. Act 1947, as adapted in Bangladesh, foreign exchange means foreign currency and includes
instruments expressed in foreign exchange, all deposits, credits and balance payable in foreign currency as well
as foreign currency instruments such as Draft, TC, Bill of Exchange, promissory note, and Letter of Credit
payable in any foreign currency. The business of foreign exchange is getting increasingly complex and
intensely competitive. However, in the backdrop of phenomenal growth of Bangladesh‘s external sector,
foreign exchange business provides a challenge as well as an excellent opportunity to accelerate growth of
bank‘s own business. This is the Institution that facilitates international trade payment as banking channel is the
way of settlements. Besides, banks meet the other need of foreign exchange transactions of the people of the
country as they are authorized to deal in foreign exchange upon receipt of permission from Central Bank under
Foreign Exchange Regulation Act. All exports and imports are executed through the intervention of banks.
They make the way through which exporter can get payment from importer. On the other hand they make the
payment for the importer done by the people of Bangladesh. Side by side, they provide funded and non funded
credit facility in execution of International Trade.
4.1.3.1 Foreign Exchange Operations of EXIM Bank :
Foreign exchange department deals with foreign currency and the transaction of it. The major job of this
department is listed below:
1. Letter of Credit (for Export & Import)
2. Dollar/Travelers Cheque (TC) Endorsement
3. Foreign Remittance
4. Foreign Currency Account

32
4.1.4 Others
Eligibility
Employees of
- Government/Semi government/ Autonomous bodies
- Corporation
- Non-Government Organizations
- Multinational Companies
- Banks/financial Institutions
- Educational Institutions
Professionals
- Doctor
- Engineer
- Accountant
Others
 Reputed business person.
 Age between 21 at the time of application and 65 at the time of maturity
 Minimum monthly income BDT 25,000.00
 Length of service /age of business minimum 2 years
 For service holder ahead minimum service up to maturity of investment
Eligible items/Article
 Car

 Jeep

 Microbus

 Station wagon

 Any other vehicle for own use

33
Investment Limit
Maximum limit Tk.40.00 lac (Investment equity ratio minimum 50:50) as per BRPD
Cir.03, Dated Jan 22,2012.
Tenure of investment
Tenure is maximum 5 years.
4.1.3.3 EXIM Sahayak
An Investment product for procuring Household Durables. Necessity and comfort are constantly
changes with the change of time and life style which also basic indicator of the quality of life. A
stitch in time saves nine. Luxurious/comfortable articles/appliances of yesterday may be treated
/converted as essentials/necessities of today. Necessity of many things does not wait for
capacity.
Exim Bank provides a suitable solution of above and make breeze between necessity and
capacity to acquire the household durabl
4.1.3.4 Exim Abashan
At EXIM Bank we offer an easy-to-avail Home Investment with convenient repayment facility
and maximum limit on investment amount. From the scheme the customer will get necessary
help to materialize long cherished dream, to enable him/them proud owner of a flat/dwelling
house in a modern developed urban area.
4.1.3.5 Investments (General)
The qualty of investment has improved significantly in the year 2016 over the previous year as
reflected in the ratio of classified investment to total investment, which decreased from 1.99% as
on 31 December 2010 to 1.63% as on 31 December 2016.
(Tk. in Millions)
Content 2012 2013 2014 2015 2016
Investment
(General)
40195.24 53637.68 69058.87 93296.65 99699.63
Table 02: Investment (General)

34
(Amount in Million Tk.)
Figure 02: Investment (General)
Analysis:
The total investment (General) of the bank was Tk. 99699.63 million as on 31 December 2011
against Tk. 93296.65 million as 31 December 2010 registering a growth of 6.86%. The bank
concentrated on increasing the rated investment exposure, which contributed in limiting the Risk
Weighted Asset.
4.2 Function of Non Bank:
 Brokerage of Loanable funds
 Mobilization of Funds
 Channelization of Fund into Investment
 Stabilize the capital market
 Provide Liquidity
0
20000
40000
60000
80000
100000
120000
2012 2013 2014 2015 2016
Investment(General)

35
Chapter Five
Difference Between Bank and Non Bank

36
4.3 Difference Between Bank and Non Bank

37
Chapter six
Conclusion & recommendation

38
6.1 Conclusion :
Both Bank and Non-bank Financial institution are important of our financial environment in
Bangladesh now different commercial bank and the Non banking financial organization are
operating there business. And every organization now involved attracting the retail customers
that means the middle income group people of the country. Actually EXIM Bank and
LankBangla Finance Have great contribution on our economy.
6.2 Recommendation
Recommendation for EXIM Bank:
 The bank should higher export who Can Understand the future economic situation and
can take initiative based on the forecast. Again the bank can achieve success from the
economic if the can handle the situation efficiently.
 Bangladesh is Developing country. Many People of our country want to Business with
many foreign countries so Exim bank should have to more focus on their export and
import department to maintain foreign Currency.
Recommendation for LankBangla:
 LBFL should provide the certificate of the all type ofdeposits.
 Deposit process and giving certificates should befaster.
 The invest sector should be the moderate and more.
 The deposit policies should be revised to moderate and made easy for the clients.
 LBFL also should concentrate onthe promotion activities; that all levels of client know about their
services.
 The interest rate should be more attractive than their competitors.

39
Reference
EXIM Bank website- http://www.eximbankbd.com/
Lankabangla website- https://www.lankabangla.com/
scribd- https://www.scribd.com/
linkedin - https://www.linkedin.com/feed/
Slideshare - https://www.slideshare.net/

Functional Difference of bank and non bank

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