Foreign exchange & financial performance of EXIM Bank Limited
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This internship report is based on foreign exchange activities that take place in the New Eskaton Branch and on the overall financial performance of the Export Import Bank of Bangladesh Ltd (EXIM). based on four types of ratios namely profitability, liquidity, credit risk, and asset activity ratio. In addition to the above it contains an overview of the organisation as a whole and the tasks that have been performed as part of the role of an intern. Through several interview sessions with an experienced employee, Mr. Tanvir Mohammad Jashim working as a principal officer in the foreign exchange department it has been revealed that the New Eskaton branch performs only two foreign exchange activities namely import and remittance. The process of import occurs by the issuance of a letter of credit by EXIM Bank on behalf of the buyer or importer. An importer must be first eligible to import by making sure that they have an import registration certificate (IRC). The issuance and the mechanism by which letter of credit process occurs consist of a number of steps which have been described in this paper. Due to limitation by Bangladeshi law only one form of remittance is allowed, and hence performed in EXIM Bank, namely inward remittance or the sending of money from abroad to Bangladesh. Outward remittance is allowed only for sending money to people abroad who have a student profile. An in-depth analysis of the various ratios as stated above have depicted that the profitability of EXIM Bank has decreased, the liquidity position has improved, credit risk has lowered and asset activity remained unchanged for the years 2009 to 2013. Overall the New Eskaton Branch of the Export Import Bank of Bangladesh aids only in import by the issuance of a letter of credit and in inward remittance through 4 exchange houses and several drawing agencies. All the financial ratios of EXIM Bank have shown positive changes except for the profitability ratios so EXIM Bank needs to focus on improving this particular ratio.