Internship Report on Prime Bank Ltd. Foreign Exchange Mechanism

Bank can be termed as iron cell of blood in a financial system of a country. Without bank a financial system can’t survive. Form the very beginning of financial activity in human civilization bank has a remarkable contribution as a whole.

Banking-A pillar of economy- is guided by laws, rules, regulations and practices. The prime objective of the banking industry as a whole is to collect deposits from the public and to invest the same in the form of loans and advances to businesses. The service necessary for financing of import, export, guarantees etc is also the function of banks. In our country, like others, Banking companies act 1991 remain operative to control and monitor the function of banks in coordination with the other laws. Since the banking functions are commercial in nature, many laws from the negotiable instrument act to civil procedure code are essential in the day-to-day operations of the banks.

Generally a bank comprises of three departments- General Banking, Credit Department, and Foreign Exchange Department. The department that is most important to a bank and to the interest of the country is Foreign Exchange Department.

This report is an outcome of three months career at Prime Bank Ltd. prepared as the partial requirement of BBA program of Department of Business Administration, Shahjalal University of Science & Technology (SUST). The organization attachment started on July 4, 2007 and finished on October 4, 2007. The topic of the report is “Foreign Exchange Mechanism: a comprehensive Study of Prime bank Ltd. (considering Jubilee Road Branch, Chittagong as standard)”

During three months intensive internship program, an approach has been taken to get an inside out scenario of Foreign Exchange Activities of Prime Bank Limited. At the beginning of paper an overview of the Prime bank Ltd. has been given. This chapter contains history of the dawn of the Prime Bank Ltd, its financial strength and some other important details.

Next to that overview, the detailed procedure of Foreign Exchange Operation-Export, Import, and Remittance are described in three detailed chapters.

After closely observing the Foreign Exchange Operation of Prime bank Ltd. the problems and shortfall in the Foreign Exchange Activities has been tried to find out. Regarding that problems and short fall some recommendation has been specified.