Chapter-1

Introduction 1.1 Introduction of the Report

As a part of the internship Program of BBA course requirement, I was assigned to do my internship in Southeast Bank Limited (SEBL) for a period of three months. Southeast Bank Ltd. is one of the private-sector commercial bank in Bangladesh, with years of experience. Adaptation of modern technology both in terms of equipment and banking practice ensures efficient service to clients. Through 113 branches, SEBL is providing its best service to both clients and country. This report “Foreign Remittance Management of Southeast Bank Limited -A study of Chowhatta, Corporate Branch, Sylhet” has been prepared to fulfill the partial requirement of BBA program as a mean of Internship Program. While preparing this report, I had a great opportunity to have an in depth knowledge of all the banking activities of Southeast Bank Limited as I worked as an intern there.

1.2 Background of the Report

Now we are living in the age of competition at anything in any places. From that tendency recently education is also in the age of competition. So the procedures and standards of teaching are upgraded by different universities and institutions in our country. In respect to that, internship is mandatory for our BBA program offered by Leading University. This program is a partial fulfillment of our BBA curriculum. To do so I decided to complete my internship in Southeast Bank Limited. Throughout the period of my internship, I had been working in Audit Trial Division & Front Desk. Under internship program each student has to prepare a report on a particular topic related with the organization. On the basis of my practical experience as well as theoretical knowledge, I have completed the report on “Foreign Remittance Management of Southeast Bank Limited -A study of Chowhatta, Corporate Branch, Sylhet”.

1

1.3 Scope of the Report

In order to maintain the speed of development now banks must compete in the market place

both with local institutions as well as foreign ones. The presentation of the organizational

structure and policy of Southeast Bank Limited and investigating the strategies applied by

them provide the scope of this report. The scope of this report is limited to the overall

description of the banks, their services, their position in the industry, their financial

performance and analysis of the practical progress of their operation. The scope of the study

is limited to organizational setup, functions and performances.

Recent performance of SEBL in terms of deposit, investment and foreign exchange.

To analyze the banks current financial flows performed by SEBL.

To obtain practical experience about banking activities by involving such type of

program.

To build professional carrier in the banking sector as well as any credit providing

institution.

1.4. Objectives of the Report

1.4.1 General objective:

To find out the overall management of foreign remittance of Southeast Bank

Limited and to apply the theoretical knowledge gained from the course work to

practical.

1.4.2 Secondary Objective:

To Understand and analyze the overall activities of Southeast Bank Ltd

To evaluate the existing activities and techniques of Southeast Bank Ltd

To study the operational efficiency of Southeast Bank Ltd

To learn practically about what I have been studied theoretically

To point out main facts of the study and provide some valuable recommendation

2

1.5. Methodology of the study

The study requires various types of information of present policies, procedures and methods

of Foreign Remittance Management. Both primary and secondary data available have been

used in preparing this report.

(a) Primary sources

1. Practical desk work

2. Face to face conversation with the officer

3. Direct observations

4. Face to face conversation with the client

(b) Secondary sources

1. Annual report of SEBL-2015

2. Files & Folders

3. Memos, Circulars and prospectus

4. Daily diary (containing my activities of practical orientation in SEBL) maintained

5. Various publications on Bank,

6. Website of Southeast Bank Ltd,

7. Website of Bangladesh Bank,

8. Different circulars sent by Head Office and Bangladesh Bank.

3

1.6. Limitation of the Report

There were some problems in conducting the internship program. A wholehearted effort was

applied to conduct the internship program and to bring a reliable and fruitful result. In spite of

having the wholehearted effort, there exit some limitations, which acted as a barrier to

conduct the program. The limitations were-

Sometimes I was assigned to do some extra jobs which is not much important or

related with the report topic. This situation has created a lot of problems and waste

of time.

Learning all the banking functions within just two and half months was really tough.

Another limitation of this report is Bank’s policy of not disclosing some confidential

data and information for security reasons, which could be very much useful.

4

Chapter-2

Literature Review

2.1 History of Banking Industry in Bangladesh

Bank industry is not a new concept for Bangladesh before liberation it also was available in

Bangladesh. Before the liberation war there was a branch office of the former state Bank of

Pakistan in Bangladesh. Other than that there were seventeen large commercial banks, two

of which were controlled by Bangladeshi interests & three by foreigners other than West

Pakistanis. There were fourteen smaller commercial banks. Nearly all banking services were

concentrated in urban areas. The newly independent government immediately designated the

Dhaka branch of the State Bank of Pakistan as the central bank & renamed it the Bangladesh

Bank. Initially Bangladesh bank was responsible for regulating currency, controlling credit

&monetary policy, and administering exchange control & the official foreign exchange

reserves. The Bangladesh government initially nationalized the entire domestic banking

system & proceeded to reorganize & rename the various banks. Foreign-owned banks were

permitted to continue doing business in Bangladesh. But later they also permitted the private

investors to start banking activities & gradually the number of private banks& their

dominance is increasing day by day.

5

2.2 Banks Performing in Bangladesh

Banking sector has a vital role to play in the economic activities & development of any

economy. This sector is much more important in a developing country like Bangladesh. The

whole scenario of the economy of a country can be ascertained by examining the condition

of the banking sector. In Bangladesh, the banking sector dominates the financial sector &

macroeconomic management largely depends on the performance of the banking sector.

Different types of bank are performing in Bangladesh; from their four are nationalized

commercial banks, around thirty nine private commercial banks, ten foreign multinational

banks & some specialized banks. In details those are given below:

2.3 Central Bank

Bangladesh Bank, the central bank and apex regulatory body for the country's monetary and

financial system, was established in Dhaka as a body corporate vide the Bangladesh Bank

Order, 1972 (P.O. No. 127 of 1972) with effect from 16thDecember, 1971. At present it has

ten offices located at Motijheel, Sadarghat,Chittagong, Khulna, Bogra, Rajshahi, Sylhet,

Barisal, Rangpur and Mymensingh in Bangladesh; total manpower stood at 4951 (officials

3961, subordinate staff 990) ason November 30, 2012.

2.3.1 VisionTo develop continually as a forward looking central bank with competent and committed

professionals of high ethical standards, conducting monetary management and financial

sector supervision to maintain price stability and financial system robustness, supporting

rapid broad based inclusive economic growth, employment generation and poverty

eradication in Bangladesh.

6

2.3.2 Mission

Bangladesh Bank carrying out its following main functions as the country’s central bank:

Formulating monetary and credit policies;

Managing currency issue and regulating payment system;

Managing foreign exchange reserves and regulating the foreign exchange market.

Regulating and supervising banks and financial institutions, and advising the government

on interactions and impacts of fiscal, monetary and other economic policies.

2.3.3 Functions

Bangladesh Bank performs all the core functions of a typical monetary and financial sector

regulator, and a number of other non core functions. The major functional areas include:

A. Formulation and implementation of monetary and credit policies.

B. Regulation and supervision of banks and non-bank financial institutions, promotion and

development of domestic financial markets.

C. Management of the country's international reserves.

D. Issuance of currency notes.

E. Regulation and supervision of the payment system.

F. Acting as banker to the government.

G. Money Laundering Prevention.

H. Collection and furnishing of credit information.

I. Implementation of the Foreign exchange regulation Act.

J. Managing a Deposit Insurance Scheme.

7

2.4 Nationalized Commercial Banks

The banking system of Bangladesh is dominated by the 4 nationalized Commercial

Banks, the nationalized commercial banks are:

Sonali Bank

Janata bank

Agrani Bank

Rupali Bank

2.5 Private Commercial Banks

Private bank are the highest growth sector due to the dismal performances of government

banks (above). They tend to offer better service & products. Now a day’s private banks are

growing like mushroom. Private commercial banks are divided into four groups according to

their commencement of business. They are familiar in the name of 1st generation, 2nd

generation, 3rd generation banks and 4th generation banks.

AB Bank Limited

Al-Arafah Islami Bank Limited

Bangladesh Commerce Bank Limited

Bank Asia Limited

BRAC Bank Limited

Dhaka Bank Limited

Dutch-Bangla Bank Limited

Eastern Bank Limited

Exim Bank Limited

First Security Islami Bank Limited

ICB Islamic Bank

8

IFIC Bank Limited

Islami Bank Bangladesh Ltd

Jamuna Bank Limited

Mercantile Bank Limited

Mutual Trust Bank Limited

National Bank Limited

NCC Bank Limited

One Bank Limited

Prime Bank Limited

Pubali Bank Limited

Shahjalal Islami Bank Limited

Social Investment Bank Ltd

Social Islami Bank Limited

Southeast Bank Limited

Standard Bank Limited

The City Bank Limited

The Premier Bank Limited

Trust Bank Limited

United Commercial Bank Limited

Uttara Bank Limited 

 Modhumati Bank, 

South Bangla Agriculture and Commerce Bank

Farmers' Bank

Union Bank

9

2.6 Foreign Banks

Foreign banks have very little market share & limited geographic coverage in Bangladesh,

but they are highly known for their quality service. Private commercial banks fall between

these groups. Name of foreign banks performing in Bangladesh is giving below;

Citigroup

HSBC

Standard Chartered Bank

Commercial Bank of Ceylon

State Bank of India

Habib Bank

National Bank of Pakistan

Woori Bank

Bank Alfalah

2.7 Specialized Banks

Grameen Bank

Bangladesh Krishi Bank

Bangladesh Development Bank

Rajshahi Krishi Unnayan Bank

Basic Bank Ltd (Bank of Small Industries & Commerce)

Bangladesh Somobay Bank Limited (Co-operative Bank)

The Dhaka Mercantile Co-operative Bank Limited (DMCBL)

10

Chapter-3

A Profile of Southeast

Bank, Sylhet Branch

3.1 Profile of Southeast Bank Limited

Southeast Bank limited is a second generation bank that was established in 1995 with a dream and a vision to become a pioneer banking institution of the country and contribute significantly to the growth of the national economy. The bank’s journey begun when it was incorporated as public Limited company on March 12, 1995. The Registrar of Joint Stock companies and firms issued the certificate of commencement of the business of the bank on the same date. The bank received its banking license from Bangladesh Bank on March 231995. The bank’s first branch was opened by Late Md. Saifur Rahman, the then honorable finance minister of the government of People’s Republic of Bangladesh as the chief guest at the busiest commercial hub the country at 1, Dilkusha Commercial Area, Dhaka on May 25, 1995. In its arduous journey since, Southeast Bank Limited has succeeded in realizing the dreams of those who established it. Today it is one of the country’s leading banks in the private sector contributing significantly to the country’s economy. The authorized capital of the bank today is 15000.00 million. It’s paid up capital and reserve reached Tk. 9169.16 million as on December 31, 2014. The bank had 1780 staffs on 31, December 2014. The southeast bank limited was established by leading business personalities and eminent industrialists of the country with stakes in various segments of the national economy. They established the bank with a vision to bring efficient and professional banking services to the people and business community of Bangladesh to help the national economy to grow. The incumbent chairman of the bank is Mr. Alamgir Kabir, FCA, a profession chartered accountant. Southeast Bank Limited has become a synonym of quality banking services and products. Is has a diverse array of productions and services tailored carefully to cater to the needs of the all segments of the customers. SEBL operational strategies are structured to address the special and often complex needs to the customer

11

3.2 Corporate profile of Southeast Bank LimitedName of the Company : Southeast Bank Limited

Legal Status : Public Limited Company

Date of Incorporation : March 12, 1995

Registered Office : Eunoos Trade Centre

52-53, Dilkusha C/A (Level 2,3 & 16), Dhaka-1000

Chairman : Alamgir Kabir, FCA

Vice Chairman : Ragib Ali

Managing Director : Shahid Hossain

Company Secretary : Muhammad Shahjahan

Line of Business : Banking (both Conventional and Islamic Banking)

Authorized Capital : BDT 15,000 million

Paid Up Capital : BDT 9,169.50 million

Date of Opening of First Branch : May 25, 1995

Year of Initial Public Officer : 1999

Stock Exchange Listing : April 10, 2000 (DSE) and April 24, 2000 (CSE)

Company Auditors : Howladar Yunus & Co. and Syful Shamsul Alam

&Co.

Tax Consultant : Akhter Zamil & Co.

Legal Advisors : The Legal Edge

Credit Rating : Credit Rating Information and Services

Limited(CRISL)

Validity of the Credit Rating : Up to June 22, 2015

No. of Foreign Correspondents : 791

Phone : 9571115 (Hunting)

Fax : 9550086, 9550093 & 9563102

SWIFT : SEBDBDDHXXX

E-mail : info@southeastbank.com.bd

Website : http://www.southeastbank.com.bd

Name of the Bank’s Subsidiary Companies: Southeast Bank Capital Services Limited Southeast Financial Services (UK) Limited Southeast Financial Services (Australia)Limited Southeast Exchange Company (South Africa) Limited

12

3.3 Vision of SEBLTo stand out as a pioneer banking institution in Bangladesh and contribute significantly to

the national economy

3.4 Mission of SEBL High quality financial services with the help of the latest technology.

Fast and accurate customer service.

Balanced growth strategy.

High standard business ethics.

Steady return on shareholders' equity.

Innovative banking at a competitive price.

Attract and retain quality human resource.

Firm commitment to the society and the growth of national economy.

3.5 Core Values of SEBL

Integrity Fairness Harmony Courtesy Commitment Insight and Spirit

Enthusiasm for Work

Business Ethics

3.6 Core Strength of SEBL

Transparent and swift decision making

Professional team of performers

Satisfied clients internal control experienced risk administration

Diversification

13

3.7 Commitments to ClientsSoutheast Bank Limited is a customer friendly banking institution thriving fast in both

earning and ability to stand out as a leading banking institution in Bangladesh. The Bank

delivers unparalleled financial services with the touch of our heart to Retail, Small and

Medium Scale Enterprises (SMEs), Corporate, Institutional, Governmental and individual

clients through the outlets of branches across the Country. Bank's business initiatives center

on the emerging needs of the clients. Bank's commitments to the clients are the following:

Provide service with high degree of professionalism and use of most modern banking

technology.

Create life-long relationship based on mutual trust and respect. Respond to customer

needs with speed and accuracy. Share their values and beliefs. Grow as the Bank's

customers grow.

Offer first-rated solutions of clients' banking problems and issues. Provide products and

services at competitive pricing. Ensure safety and security of customer's valuables in

trust.

3.8 Organizational Development of SEBLGeneral objective of organizational development is to change all parts of the organization in

order to make humanly responsive, more effective, and more capable of self-renewal. The

organizational development process does not preclude the use of conventional training

method, which is useful for some purposes, the management of SEBL also concerned about

the training for its development, and they believe that if the employees will be trained

enough they would contribute more for the development of the banking business, that is

why, they send some employees took training from different institutions such as, Bangladesh

Institute of Bank Management.

14

3.9 Organizational Structure of SEBL The development of an organization depends on the management style of their

organizations. Management of the SEBL is controlling all the resources of the organization.

To achieve the ultimate objective of making SEBL the finest bank of the country, the

workforce is futuristic in outlook, professional in attitude and honest in reputation.

The Chairman is the head of the Board of Directors. There is one Managing Director who is

also the President mainly controls and supervises the major divisions of the bank. One

Deputy Managing Director reports to MD & Four Senior Executive Vice Presidents

(SEVP‟s) and one Executive Vice President (EVP) Of ICCD Dept. report to the Deputy

Managing Director. Senior Executive Vice Presidents control the credit. Senior Executive

Vice President controls the human resource and marketing divisions.

3.10 General Banking Function’s of the Branches of SEBLThe general banking procedures are conducted under some sections. The functions of these

sections are discussed briefly in the following:

Account Opening Section: The main task of this section is to opening different accounts,

such as, different savings account, joint accounts, clubs, societies etc. Opening of different

types of current accounts,-Individual, Firms, Partnership Firms, proprietorship firms, private

& public limited companies, executors, trustee, administrators, issuance of cheque books,

maintenance of A/C opening register, preparation of different bill statements and clearing

cheques received for collection.

Cash Section: Opening of cash, maintenance of receive & payment register, cash remittance

procedure between link & feeding branch, closing of cash, evening cash etc. Bangladesh

banks instruction thereof payment of defective notes, forged notes, vault limit, selling-

buying of prize bond & record keeping.

Dispatch section: Inward & out ward mails, recording in registers, maintenance of postage

accounts, Telegram, courier, register etc. Advance charges, refund & passing of entries at

month end. Acknowledgement of duplicate, ordinary post, registered post, hand delivery by

special messenger, use of proper envelope, required postal stamp, Test Key confidentiality

for telegraphic communication etc.

Fixed deposit section: Opening of FDR accounts for joint, single. Interest provision,

payment on maturity, premature encashment, handling of deceases accounts, issuance of

15

duplicate FDR. Indemnity-custody of indemnity bond-

FDR block, specimen card, maintenance of FD registers, renewal of FDR, balancing &

closing of FDR accounts.

Remittance & Bills section: Issue & payment of pay order (PO), Demand Draft (DD),

Telegraphic Transfer (TT), issuance of duplicate DD and PO, issuance of IBDA & IBCA for

online banking.

Accounts Section: Preparation of daily & weekly statement of affairs, extract, transfer

scrolling & supplementary, voucher preparation, monthly salary preparation, SBS 1,2,3

preparation, ATM card maintenance, condensed statement etc. related to IT department.

IT Section: Daily voucher posting and IT statement printing.

Clearing Section: Outward & Inward cheques handling, keeping register, and issuance of

IBCA to other branches.

3.11 Types of Deposit The Bank offers the following types of accounts to its various types of customers:

a) Current Deposit (CD) Account.

b) Savings Bank (SB) Account.

c) Short Term Deposit (STD) Account.

d) Fixed Deposits Receipt (FDR) Account.

e) Special Purpose Deposit (Savings) Account

1. Monthly Savings Scheme (MSS)

2. Monthly Income Scheme (MIS)

3. Double Benefit Scheme (DBS)

4. Deposit Pension Scheme (DPS)

16

Chapter-4

Foreign Remittance Management of

Southeast Bank Limited

4.1 Remittance performance and process of SEBL

Our 10 million expatriates are a source of pride for Bangladesh. They represent us abroad by building our image. They also spread the richness of our cultures across the globe. In that sense, they are the ambassadors of goodwill for Bangladesh. The foreign exchange they send home is the second largest source of much needed foreign exchange for our economic development. In fact, if we adjust import costs against export earnings of the garments sector which brings highest amount of foreign exchange to the national economy, remittance will figure as the single largest source of foreign exchange for Bangladesh. Southeast Bank Limited is continuously striving to build its remittance business by rendering quality services through a network of reputed banks and exchange houses around the globe along with an extensive network in the country to deliver money to the beneficiaries in the safest form and quickest possible time.

Features of SEBL Remittance Services:

No service charge from beneficiaries in Bangladesh

Instant Cash Withdrawal facility from any branches of Southeast Bank

Confidentiality of transactions

Instant credit to beneficiaries accounts with Southeast Bank;

Same day cash withdrawal facility from the branches of One Bank, Mutual Trust Bank, Jamuna Bank, Al-Arafah Islami Bank, BRAC Bank, Bank Asia, Shahjalal Islami Bank, Mercantile Bank and First Security Islami Bank

17

Same day cash payment facility from 600 outlets of reputed NGOs (RDRS, Society for Social Services - SSS and Jagorani Chakra Foundation - JCF)

Direct communication with both Sender and Receiver for solving queries relating to cash payment/account deposit (if any)

Disbursement of foreign remittance through ATM booths using My Remit Card

Provide Anti-Money Laundering (AML) and Combating Terrorist Financing (CTF) advice.

4.2 Global Partners

Western Union Money Transfer Services

Continental Exchange Solution (Ria Financial Services)

Money Gram International

Xpress Money Services

Trans-Fast Remittance LLC

UK based Money Transfer Companies:

K.F. Money Transfer Khan Money Transfer UK Exchange Bangladesh Money Transfer (UK) Limited Exchange Aftab Currency Exchange

Eastern Union Money Transfer

UAE based Money Transfer Companies:

Al Ahalia Money Exchange Bureau Al Fardan Exchange UAE Exchange Centre LLC Wall Street Exchange Centre LLC Al Ansari Exchange Habib Exchange Co.LLC Lulu International Exchange Malik Exchange, UAE

18

Sultanate of Oman based Money Transfer Companies:

Oman & UAE Exchange Center & Co

Asia Express Exchange

USA based Money Transfer Companies:

Wall Street Finance LLC

US Money Exchange

K.S.A (Kingdom of Saudi Arabia) based Banking Partners:

National Commercial Bank

Al Rajhi Banking Corporation

Bank Al-Bilad

Italy based Money Transfer Company:

National Exchange SRL

19

4.3 Western Union Money Transfer

(WUMT)

Western Union a fast, reliable and convenient way to send a money transfer

Western Union Financial Services Inc. U.S.A. is the number one and reliable money transfer

company in the world. This modern Electronic Technology based money transfer company

has earned worldwide reputation in transferring money from one country to another country

within the shortest possible time.

Facilities of Western Union

i) Largest Network:Through Western Union Money Transfer Service, Bangladeshi

Wage Earners can send money quickly from over 280,000 Western Union Agent

Locations in over 200 countries and territories world wide

ii) Reliability:Our customers have benefited from our electronic money transfer for over

150 years. Each transfer can be tracked electronically to make sure that you receive

the money your loved one has sent.

iii) Speed:When your loved one sends you money, within minutes you can

receive it in Bangladesh.

iv)Convenience:

Bank account is not required.

Just go to a SEBL Bank Limited branch anywhere in Bangladesh offering Western

Union Money Transfer. Then simply fill a form and collect money.

SEBL Bank Limited has 52 such branches all over Bangladesh and Western Union

has over 280,000 agent locations across 200 countries and territories.

20

3 Easy Steps to Receive Money:

Deposit the money at any Western Union Agent location and get a receipt with

MTCN.

Sender informs about the amount sent (sender name, amount, sending country,

receiver name and MTCN).

A valid identity card needs to receive money from the bank. There also fill a simple

form and receive the money.

4.4.Ria Financial Service

Ria financial service is one of the 2nd largest online money transfer express which is mainly

founded in Europe. It is developing its brand image day by day which is already on its way

to cross the margin of western Union money transfer. Southeast bank is one of their licensed

partner, most of the people those who stay in European country like France, UK, Sweden,

Portugal, Ireland, etc send their money through Ria service. Beneficiary just needs to give a

pin number to withdraw their cash. Southeast bang get an amount of 2 paisa per transaction

Process of withdrawing the money

Sender will send money and give an pin number through mail or SMS

Beneficiary will go to the recognized bank and fill a form with related information

and provide the pin number

Banker will excess the pin number and verify the pin with legal information provided

by the beneficiary

Finally beneficiary withdraws the money

21

4.5. National Exchange Company (NEC)

NEC transfer remittance money from Italy. Customer can withdraw their remittance money

by a PIN number from the bank. Besides NEC provide 9-digit PIN number and also the

customer need a valid ID card or a photocopy of check book. Then the bank officials match

the PIN number and send the customer to the cash counter. The money receiving process is

same as SFSL.

4.6. Key Obligations for Foreign Remittance Services

Identity and verify the customers

Obtain information on customers requesting electronic fund transfers

Monitor customers transactions

Maintain proper customers records

Report transactions to the Financial Intelligence Unit

Implement appropriate internal controls and systems to protect bank from being used

for money laundering and terrorist financing purposes

4.7. Customer Identification and Verification

The bank must undertake specific procedures to identify customers with whom the

bank has an on-going business relationship.

Identification and Verification of a Customer's Signature.

Identification and Verification of Occasional Transactions.

Obtain complete information on customers requesting electronic fund transfers

When dealing with electronic fund transfers, the bank must obtain accurate and

complete information about the customer requesting to transfer funds or the

originator of the transfer.

22

4.8. Five Years Performance of

Southeast Bank limited at a Glance

Particulars 2015 2014 2013 2012 2011

Authorized Capital 15,000.00 10,000.00 10,000.00 10,000.00 10,000.00

Paid up Capital 9,169.50 8,732.86 8,732.86 8,317.01 6,930.84

Reserve Fund / Others 18,292.59 13,074.71 10,864.68 10,683.05 10,265.96

Deposit 189,472.54 177,519.46 152,901.24 127,178.22 107,253.19

Advance 147,070.81 134,863.82 126,968.97 107,288.56 93,981.20

Investment 56,378.59 57,589.06 37,656.56 29,846.60 18,869.07

Import Business 155,691.00 131,644.82 111,537.50 99,509.01 103,726.70

Export Business 112,137.60 95,220.40 84,464.20 75,982.06 58,158.06

Guarantee Business 13,603.30 17,226.41 21,506.65 25,673.90 22,781.19

Remittance Business 48,740.50 39,299.10 41,455.40 49,544.10 28,082.25

Total Income 27,667.10 26,918.30 23,134.18 19,931.91 16,100.81

Total Expenditure 19,337.34 20,218.11 17,638.99 13,846.24 9,331.55

Operating Profit 8,289.76 6,700.20 5,495.19 6,085.66 6,769.26

Net Profit after Tax and Provision

3,836.94 3,378.82 1,648.72 1,912.19 2,763.93

Fixed Assets 7,913.00 7,795.65 7,677.51 7,373.11 4,463.64

Total Assets 236,608.40 220,930.85 189,921.58 158,078.59 131,784.27

Despite rapid economic environment both locally and globally in the first half of the year

– 2015, Southeast Bank achieved an operating profit of BDT.8, 289.76 million before

necessary provision for loans and Income Tax during the period.

Inflow of Foreign Remittance over the Years

23

2011 2012 2013 2014 20150

100

200

300

400

500

600

700

Inflow of Foreign Remittance Over the Years

Inflow of Foreign Remittance Over the Years

USD

in m

illio

n

Fig: Changes in remittance inflow of Southeast Bank Limited over the last five years

Foreign Remittance is of paramount importance to the country. It is the second largest source of

foreign currency for the country. During 2015, SEBL handled foreign remittance of USD 629

million compared to USD 505 million in 2014, USD 544 million in 2013, USD 657.9 million in

2012 which was slightly better than 2014 and USD 402.42 million in 2011. To diversify their

services, they have taken initiative to open wage earners’ accounts through their foreign

subsidiaries and partners abroad.

SEBL have also introduced “My Remit Card” pre-generated name-less debit card for the

beneficiaries of the foreign remittance.

24

Country wise Percentage of Remittance

Inflow in 2015

31%

28%

18%

11%

2%1%

9%

Country Wise Percentage of Remittance In-flow 2015

USAKSAUAEUKOMANAUSTRALIAOTHERS

4.10 Major Job Responsibilities

I did my three month internship program in Southeast Bank Ltd, Chowhatta branch. During

my internship program, I gained lots of experience about corporate environment. My

internship experience are given below- Internship Position, Duties & Responsibilities The

report has been prepared on the basis of experience gathered during the period of internship.

Within this time of period, I worked with two departments namely General Banking and

Foreign Exchange department.

Bank does not follow any guideline or any fixed responsibilities for internship student.

Mainly I have done many pending works of the account opening section and clearing

section. Accounts opening form fill up and endorsement. Besides that I have

done different types of tasks in different desks whenever they assigned me to do.

Account Opening Department: I worked with Southeast Bank Limited, Chowhatta Branch

where I worked firstly with the account opening department. Here I have learned the

procedure of opening an account and the documents that are needed for opening an accounts

& types of accounts allocated by Southeast Bank Limited.

25

Secondly, I learned how to precede a pay order and what are the necessary

documents needed to do it. Thirdly, I learned how to open a Fixed Deposit Receipt (FDR).

This is the following activities which are done by me:

To file different account forms in different files.

To sequencing that forms in different files.

To fill up Know Your Customer (KYC) form.

To find out the irregularity of different accounts.

To close accounts and file them up for record.

Voucher listing (with debit ,credit )

Pay-order finding by the date and issuing number

I also worked partially in clearing department. In clearing department, I helped

the clearing officer to file the cheques to keep record and learned how the clearing process

is operated.

26

Chapter-5Findings

Southeast bank limited is good in operation of export and import trade handling and

financing as well as foreign remittance management and service.

The bank is not getting any commission from foreign remittance business although it is

providing this service to the people to serve the society.

Operation of foreign remittance service is done by only one employee or two, not all, so due

to absence of that employee, the customer has to switch to another bank. Lack of space in

foreign remittance section, which creates queue during rush hours in order to provide

smooth service.

The officers are not expert in managing foreign remittance section and providing smooth

services to the customers.

Network is not available most of the time, so in that time they cannot pay the money of

online transfer companies like Western Union, Ria financial services, Xpress Money,

Transfect etc.

Lack of attention towards the remittance beneficiary during rush hour, there may be mistake

in issuing pay order so that customers cannot get money in their account on time.

If the server fails to work even a day than it creates problem to come foreign remittance

from head office to branch, that creates an argument between employee and customer.

Existing system is time consuming for both officers and customer.

27

Chapter-6

Recommendation and Conclusion

6.1 Suggestion for better performance in Remittance Business

SBL management tries to develop their customer service by offering attractive exchange

rate for the foreign remitter’s and also introducing online banking systems.

The bank can desire more foreign remittance inflow if they will be able to reduce charges,

commission and fees related to remittance as well as by making arrangement to credit

account within twelve to twenty four hours.

The bank should develop policies, procedures and controlling systems to implementing

strong effective Money Laundering Laws to block all money laundering activities.

Security system should be improved for foreign direct investment and non-residents

investments.

If there is any lack of the remitting process, that should be overcome immediately.

Promotional activities should be conducted both in home and abroad.

Online banking system should be introduced throughout the country to remit the fund

more quickly.

Organize seminars to create more awareness at the technical level for public officials,

judicial and financial sector representatives.

Making change in declaration form – C of US$ ten thousand instead of present US$ two

thousand to increase the interest of remitters as well as increasing the reserve of foreign

currency.

Awareness should be created among the public so that they try to avoid informal channel

to remit fund.

28

6.2 Conclusion

After a prolonged observation in my three months long internship at the Chowhatta Branch

of Southeast Bank Limited, I am very much pleased to prepare this internship report. In this

period, I have tried to acquire the skills of customer relation and also tried to adapt with

the corporate culture, which is very much different from the academic courses of BBA. In

this report, I have attempted to cover one of the key areas of banking namely

Foreign Remittance Process which falls under the Foreign Exchange Division. Foreign

Remittance Process in SEBL contributes a lot towards the economic development of the

country by the efficient distribution network of remittance, which is quite satisfying to the

customers. The banking service of the SEBL is being automated day by day and

SEBL is preferred by customers for its service oriented business policy.

I tried my best to contribute to the branch office despite my above stated

limitations. The friendly work atmosphere provided at this particular branch of SEBL has

inspired me to work even harder. I hope the skills that I have tried to gain by working at that

branch will further my career. I would like to acknowledge the continuous efforts

of my supervisor and the other officers of the bank at that said branch in allowing me

to obtain these skills despite their huge workloads. I would also like to appreciate my

advisors effort in providing me with invaluable advice and also for giving me such an

excellent opportunity to be introduced to corporate culture.

Lastly, I wish continuous success of this bank.

29

References

Ahmed, G. (2013, 2 14). Contribution of Non Resident Bangladeshis (NRB) /

Bangladeshi Expatriates . Retrieved 12 3, 2015, from Business

Investment.Blogspot:http://businessninvestment.blogspot.nl/2013/02/contribution-of-non-

resident.html

Southeast bank limited annual report 2015,2014,2013,2012

Access at http://www.southeastbank.com.bd/index.php/home/about_southeast_bank

Access at http://www.assignmentpoint.com/business/internship-report-on-foreign-

exchange-service-of-southeast-bank-ltd.html

Access at http://www.foreignremittance.com/what-is-foreign-remittance/

Access at http://www.southeastbank.com.bd/index.php/home/foreign_remittance_services

www.bangladesh-bank.org

Previous internship reports

Seraji, M. (2009). FOREIGN REMITTANCE OF BANGLADESH . Retrieved 12 3,

2015, from Wordpress: https://mamunseraji.wordpress.com/2010/05/12/foreign-

remittance-of-bangladesh/

Southeast Bank Limited. (2014). Annual Report 2014 . Retrieved 12 3, 2015, from

www.southeastbank.com.bd:https://www.southeastbank.com.bd/upload/annual_report/

Annual_Report_2014.pdf

St. Louis Federal Reseve Bank. (2015, 10 2). Remittance Inflows to GDP for

Bangladesh .Retrieved 12 3, 2015, from Economic Research Federal Reserve Bank of St.

Louis:https://research.stlouisfed.org/fred2/series/DDOI11BDA156NWDB

30