Internship Report

On
“Performance Evaluation of International Trade Financing of EXIM
Bank Limited: A Study on Jubilee Road Branch, Chattogram”

[This report is submitted for the partial attainment of the degree the

Bachelor of Business Administration]

Supervised By
Dr. Mohammad Rokibul Kabir

Associate Professor and Dean

School of Business Administration

East Delta University

Prepared By
Rakib Hasan Ashrafi

ID: 152001402

Bachelor of Business Administration,

East Delta University

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 Letter of Transmittal
1st January, 2020

Dr. Mohammad Rokibul Kabir

Associate Professor and Dean

School of Business Administration

East Delta University

Abdullah Al Noman Road, East Nasirabad, Khulshi, Chittagong – 4209

Subject: Submission of Internship report

Sir,

With due appreciation and immense delight, I am submitting my internship report entitled
“Performance Evaluation of International Trade Financing of EXIM Bank Limited: A
Study on EXIM Bank Limited, Jubilee Road Branch, Chattogram” as an essential
requirement of the BBA program.

This report is really an enormous prospect for me to assemble all the relevant information
related to the study. I tried my dimension best to prepare a viable & comprehensive report
and handle the subject matter in a fitting way. I would like to thank you for your utmost
guidance. I believe this report will be a gigantic prospect for the advance study on the
topic. I welcome further evaluation on the report and request you to consider the
oversights that may occur in the resentment of my best endeavor.

I, therefore, with ample gratification would like to submit my internship report. Any
further rectifications, if needed, please offer me the chance to rectify.

Sincerely Yours,

______________
2

Rakib Hasan Ashrafi

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 Letter of Endorsement by the Supervisor

To whom it may concern

This is to certify that Rakib Hasan Ashrafi; student of Bachelor of Business

Administration, School of Business, East Delta University has successfully completed the

report entitled “Performance Evaluation of International Trade Financing of EXIM Bank

Limited: A Study on EXIM Bank Limited, Jubilee Road Branch, Chattogram” as partial

requirement for the internship program under my supervision. I appreciate his hard work

and determination and wish him prosperity and success in future.

Internship Supervisor

_________________

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 Acknowledgement

First of all, I would like to express my gratefulness to the almighty Allah, the most
generous and merciful to every single living creature and their activities. Subsequently, I
would like to express my gratitude to my beloved parents whose interminable love,
backing and favors have constantly given me the motivation to do the best.

Moving towards in this assignment, the biggest support that was came from my
internship supervisor Dr. Mohammad Rokibul Kabir, Associate Professor and Dean of
School of Business Administration, East Delta University who directed me in a great
manner. Without his utmost supervision, suggestion and tremendous help, especially
giving me adequate time despite his tight schedule, this report could not have completed.

Next, I would like to thank my organizational supervisors Mr. Mohammad Yeaqub,

Mohammad Moinul Abedin, Mohammad Azharul Alam, and Jalal Uddin Officers of
EXIM Bank Limited, Jubilee Road Branch for helping me to gain practical knowledge
about corporate environment. I am also thankful to Mr. Mohammad Abul Hashem, Vice
President and Ms. Sabiqun Nahar, Assistant Vice President of EXIM Bank Limited,
Jubilee Road Branch, for giving me the opportunity to do my internship in their
prominent organization.

At the end, this internship report is a result of many people's effort especially all of the
researcher and the writers whose comprehensive research papers helped me to
accumulate all the relevant information and valuable data while preparing the report.
Despite my best effort to give this report the most possible edge to perfection this may
suffer from many oversights. All the inaccuracies that might have occurred in the
resentment of my best exertion hopefully would be seen in forgiving manner.
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 Abstract

In Bangladesh private banks are playing a big role in the economy. EXIM Bank Limited

is one of the most recognized private banks in Bangladesh. It undertakes all type of

banking transactions to support the development of trade and commerce in the country.

This study represents Performance Evaluation of International Trade Financing of EXIM

Bank Limited: A Study on Jubilee Road Branch, Chattogram. The main objective of the

study is to evaluate the International Trade Financing Performance of Export Import

Bank of Bangladesh Limited and to get knowledge about the present scenario of

International Trade Financing in Bangladesh and also gaining the practical experience of

corporate life and view the application of theoretical knowledge in the real life. Besides

the objectives of the study is to have knowledge about dealing with customers and

foreign trade. The study applied a descriptive research design with targeting EXIM Bank

Limited Jubilee Road Branch in Bangladesh, all with data spanning ten years between

2009 to 2018 with secondary data of Performance of export import financing, growth rate

and profit from export import financing were analyzed by employing time series analysis

model. Therefore, the result of time series analysis showed the performance of Import

Financing in Jubilee Road Branch of EXIM Bank Limited has been decreased, the

performance of Export Financing has been increased, growth rate and profit from export

import financing has been inconsistent year by year; there is no regularity one year to

another and the profit from export financing is higher than the profit from import

business for the tested period.

5

Keywords: Export Import financing, Performance evaluation and EXIM Bank Limited
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Table of Contents
1.1 Title of the Study ........................................................................................................ 10
1.2 Background of the Study ............................................................................................ 10
1.3 Statement of the Problem ............................................................................................ 13
1.4 Research Questions…………………………………………………………………..13
1.5 Research Objectives .................................................................................................... 13
1.6 Significance of the Study ............................................................................................ 14
1.7 Scope of the Study ...................................................................................................... 14
CHAPTER 2: COMPANY OVERVIEW ......................................................................... 16
2.1 History of EXIM Bank Limited .................................................................................. 17
2.2 Vision of EXIM Bank: ................................................................................................ 18
2.3 Mission of EXIM Bank: ............................................................................................. 19
2.4 Special Features of EXIM Bank: ................................................................................ 19
2.5 Commitment of EXIM Bank ...................................................................................... 20
2.6 Objectives of EXIM Bank .......................................................................................... 20
2.7 Products and Services ................................................................................................. 21
2.8 CORPORATE INFORMATION OF THE ORGANIZATION ................................. 23
2.9 Foreign Exchange Regulation Act, 1974 .................................................................... 24
2.10 Foreign Exchange Regulation Act, 1994 .................................................................. 25
2.11 Some Definition of Foreign Exchange ..................................................................... 25
2.12 Foreign Exchange Regulation Act, 47, Sec 2 (a) ...................................................... 25
2.13 Foreign Exchange Department ................................................................................. 26
CHAPTER 3: LITERATURE REVIEW .......................................................................... 27
3.1 Introduction ................................................................................................................. 28
3.2 International Trade ...................................................................................................... 28
3.3 Review of Related Empirical Studies ......................................................................... 29
CHAPTER 4: RESEARCH METHODOLOGY .............................................................. 33
4.1 Introduction ................................................................................................................. 34
4.2 Research Methods ....................................................................................................... 34
4.3 Research Design ......................................................................................................... 34
4.4 Sample and Data Period .............................................................................................. 35
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4.5 Source and Nature of data 35

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4.6 Method of Data Analysis and Statistical Tools .......................................................... 35
CHAPTER 5: FINDINGS, ANALYSIS& DISCUSSION ............................................... 36
5.1 Introduction ................................................................................................................. 37
5.2 Performance of Export Financing of EXIM Bank Limited, Jubilee Road Branch ..... 37
5.2.1 Growth Rate of Export Financing of Last Ten Years of EXIM Bank Limited,
Jubilee Road Branch. ........................................................................................................ 38
5.2.2 Profit from Export Financing of Last Ten Years of EXIM Bank Limited, Jubilee
Road Branch...................................................................................................................... 40
5.3 Performance of Import Financing of EXIM Bank Limited, Jubilee Road Branch ..... 42
5.3.1 Growth Rate of Import Financing of Last Ten Years of EXIM Bank Limited,
Jubilee Road Branch. ........................................................................................................ 43
5.3.2 Profit from Import Performance of Last Ten Years of EXIM Bank Limited, Jubilee
Road Branch...................................................................................................................... 45
5.3.3 Profit from Both Export Import Financing of Last Ten Years of EXIM Bank
Limited, Jubilee Road Branch........................................................................................... 46
CHAPTER 6:RECOMMENDATIONS & CONCLUSION............................................. 48
6.1 Recommendations ....................................................................................................... 49
6.2 Conclusion .................................................................................................................. 50
6.3 Limitations of the study .............................................................................................. 51
CHAPTER 7: REFERENCES .......................................................................................... 52
LIST OF TABLES
Table 1: Last ten years Performance of Export Financing of EXIM Bank Limited, Jubilee
Road Branch. (Sources: Jubilee Road Branch Data) ........................................................ 37
Table 2: Last ten years Growth rate of Export Financing of EXIM Bank Limited, Jubilee
Road Branch. (Sources: Jubilee Road Branch Data) ........................................................ 38
Table 3: Last ten years Profit from Export Financing of EXIM Bank Limited, Jubilee
Road Branch. (Sources: Jubilee Road Branch Data) ........................................................ 40
Table 4: Last ten years Performance of Import Financing of EXIM Bank Limited, Jubilee
Road Branch (Sources: Jubilee Road Branch Data) ......................................................... 42
Table 5: Last ten years Growth rate of Import Financing of EXIM Bank Limited, Jubilee
Road Branch. (Sources: Jubilee Road Branch Data) ........................................................ 43
Table 6: Last ten years Profit from Import Financing of EXIM Bank Limited, Jubilee
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Road Branch. (Sources: Jubilee Road Branch Data) ........................................................ 45

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Table 7: Last Ten Years Profit from Both Export Import Financing of EXIM Bank
Limited, Jubilee Road Branch. (Sources: Jubilee Road Branch Data) ............................. 46

LIST OF FIGURES
Figure 1: Performance of Export Financing of Last Ten Years of EXIM Bank Limited,
Jubilee Road Branch. ........................................................................................................ 37
Figure 2: Growth rate of Export Financing of Last Ten Years of EXIM Bank Limited,
Jubilee Road Branch. ........................................................................................................ 39
Figure 3: Profit from Export Financing of Last Ten Years of EXIM Bank Limited,
Jubilee Road Branch. ........................................................................................................ 41
Figure 4: Performance of Import Financing of Last Ten Years of EXIM Bank Limited,
Jubilee Road Branch. ........................................................................................................ 42
Figure 5: Growth rate of Import Financing of Last Ten Years of EXIM Bank Limited,
Jubilee Road Branch. ........................................................................................................ 43
Figure 6: Profit from Import Financing of Last Ten Years of EXIM Bank Limited,
Jubilee Road Branch ......................................................................................................... 45
Figure 7: Profit from Both Export Import Financing of Last Ten Years of EXIM Bank
Limited, Jubilee Road Branch........................................................................................... 47

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 CHAPTER1:
INTRODUCTION

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1.1 Title of the Study

Performance Evaluation of International Trade Financing of EXIM Bank Limited:

A Study on Jubilee Road Branch, Chattogram

1.2 Background of the Study

International trade is the basic activity by which a country establishes its economic

relationship with other countries. Trade is an integral part of the total national

development and growth of an economy. This is in fact a crucial instrument for

industrialization while access to foreign exchange is essential for sustained economic

development. Thus, International trade is of vital importance to the economic

development of Bangladesh. Export and Import are potential weapons of developing the

Bangladesh economy and can play an important role in achieving the country's

socioeconomic objectives including poverty reduction goals. In a capital-poor country

like Bangladesh, export and import can emerge as a significant factor to build up physical

capital, create employment opportunities, develop productive capacity and help integrate

the domestic economy with the global economy (Chaudhary, Shirazi, & Chaudhary

2007). The country’s import needs are large and the imperative to increase exports is

immediate. In order to finance those imports and also to reduce the country’s dependence

on foreign aid grants, the Government, since liberation has been trying to enhance foreign

exchange earnings through planned and increased exports. The significance of foreign

trade to the economy is manifest in a number of facts and figures. GDP growth of

Bangladesh has been 5 per cent and above in the past decade or so with increasing
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exports and imports. However, the contribution of exports to Gross Domestic

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Product (GDP) has been shrinking over the years as lack of product diversification

and sluggish private sector investment in the manufacturing industry hold back the

momentum. While the economy has been registering steady growth through the

last decade, the negative contribution of shrinking exports to the GDP adversely

affected desired employment generation in the job market, economists said

(Hasnain,2018). According to the latest data of Bangladesh Bureau of Statistics

(BBS), the contribution of merchandise exports to the country’s GDP came down

to 13.37% in fiscal year 2017-18 from 13.95% in FY 2016 -17. In 2014-15, the

contributing share of exports to the economy was 15.98%, which slid to 15.47%.

On the hand, Imports in Bangladesh decreased to 328.31 BDT Billion in August

from 382.96 BDT Billion in July of 2019. Imports in Bangladesh averaged 83.21

BDT Billion from 1976 until 2019, reaching an all-time high of 465.30 BDT

Billion in January of 2019 and a record low of 0.57 BDT Billion in November of

1976. Therefore, Bangladesh had a total export of 31,734,162.42 in thousands of

US$ and total imports of 48,058,710.04 in thousands of US$ leading to a negative

trade balance of -16,324,547.62 in thousands of US$. The trade growth is 2.33%

compared to a world growth of -6.46%. GDP of Bangladesh is 249,723,862,487.36

in current US$. Bangladesh services export is 3,859,114,757.66 in Bop, current

US$ and services import is 9,262,672,910.45 in Bop, current US$. Bangladesh

exports of goods and services as percentage of GDP is 15.04% and imports of

goods and services as percentage of GDP is 20.27%. Bangladesh has come a long

way in its economic growth. From a meagre US$ 5.70 billion in 1972, the gross
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domestic product (GDP) increased to US$ 285.82 billion in 2018. The Bangladesh
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economy is the 42nd largest in the world in nominal terms and 31st largest in

terms of Purchasing Power Parity (PPP). Recently, Bangladesh gradu ated from

least developed country (LDC) status to a lower middle income country, and hopes

to become a developed country by 2041. Moreover, Commercial banks have been

playing an important role in the economic development of Bangladesh. Services by banks

and financial institutions become particularly essential since in many instances importers

and exporters are unwilling to bear trade related commercial risks. Today, it is well

recognized that expansion of trade service activities by banks and financial institutions

are connected with the expansion of cross-border trade flows and both developed and

developing countries have been playing increasingly prominent role. However,

Globalization in the banking sector has thrown up opportunities as well as challenges.

Competition is getting edge day by day. It paces with the continuous development

occurring in the tremendous competitive environment (Daumal, 2018).

1.3 Statement of the Problem

Banks play a major role considerably in the process of economic growth in facilitating

import and export trades of Bangladesh. However, their contribution would have been

greater, if they had effectively addressed various challenges faced by the banking sector

such as weak management, poor governance, lack of strong leadership, and non-

compliance with ethical standards leading to various types of banking scams such as

money laundering and NPLs. Moreover, Foreign Trade is one of the most important

segments of Bank Business. With the changes of time international trade is diversifying

gradually. Modern Banks (like EXIM) are playing significant role in foreign trade.
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Foreign trade comprises of Import & Export Financing. In addition to deposit

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mobilization and credit management, commercial Bank as well as EXIM Bank Limited

deals in foreign exchange, this includes remittance of currency and financing, exports and

imports. So Export and Import financing are very vital part of EXIM Bank. That is why

the study analyzes the trend of international trade financing performance of EXIM Bank

Limited, more specifically that of Jubilee Road Branch.

1.4 Research Questions

In line with the problem statement, the paper has tried to answer the following research

questions:

RQ1: What is the present scenario of International Trade Financing in Bangladesh?

RQ2: How is the EXIM Bank Limited Jubilee Road Branch performing in case of

International Trade Financing?

1.5 Research Objectives

The main objective of the study is to evaluate the International Trade Financing

Performance of EXIM Bank Limited Jubilee Road Branch. The specific objectives are:

 To explain the present scenario of International Trade Financing in Bangladesh.

 To evaluate the performance of import export financing of EXIM Bank Limited

Jubilee Road Branch.
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1.6 Significance of the Study
Beyond serving the academic purpose, it will have the following contributions. The study

will promote the existing knowledge in the area of understanding International Trade

Financing Performance of Bangladesh. The other benefit of the study is to create

alertness of the bank officials in order to boost their import export financing performance

which will make it possible and easier for importers and exporters to transact business

through trade. So that, Regulators of commercial banks will be able to develop better

policies that enhance International Trade Financing Performance in the banking sector.

Therefore, the major beneficiaries from this study are each commercial bank, regulatory

bodies, and the academic staff of the country and will contribute to the well-being of the

financial sector of the economy and the society as a whole in the country and for other

researchers to gain knowledge about the performance of International Trade Financing.

Moreover, it will serve as a reference material for anyone who will undertake a further

study on the same or related topic.

1.7 Scope of the Study

Banks are one of the most important financial institutions in the economy of any country.

EXIM Bank Limited is one of the new generation bank in Bangladesh, which is shaped to

develop a balanced & sound economic, social & industrial sector of Bangladesh. They

are the principle source of credit for millions of individuals and families and for many

units of government. Foreign exchange department is a crucial part of any bank because a

major portion of revenue comes through this unit. It facilitates the foreign trade and

foreign transaction which is arises for international business especially for the Import
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Export Business. Banks provides various kinds of services for the importer and
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exporter to make their business easier. It is totally impossible to do these kinds of

business without the help of bank. Here Bank is the middle man between the two parties;

Exporter and Importer. Banks open letter of credit LC on behalf of importer against the

exporter. A letter of credit is the amount of credit that a lender is willing to extend to a

borrower over a period of time, based on the financial stability of the borrower. In some

cases, a letter of credit involves the establishment of a loan that is extended by a Bank for

a specific purpose, with some sort of payments expected along the way. At other times,

the structure of the letter of credit is not tied to specific purpose, with the credit being

open to use as the borrower sees fit. Bank took the risk in return of commission from

the importers and also enjoys the investment opportunity. So through the foreign

exchange department Bank maintain the inter-banking communication worldwide and

also ensure the flow of money circulation among the different countries safely as well as

smoothly. As the foreign exchange department is one of the important divisions of the

Bank, hence, I choose to do my report on the export and import division of the foreign

exchange department which is based on Export Import Bank of Bangladesh Limited

(EXIM Bank) – Jubilee Road Branch, Chattogram." The study will allow learning about

the Foreign Exchange Operation and the practical procedures followed by the leading

Banks.

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CHAPTER 2:
COMPANY
OVERVIEW

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2.1 History of EXIM Bank Limited: EXIM Bank 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 tycoon in the Garments business in Bangladesh became the

Honorable Chairman after the demise of the honorable founder chairman. He is also the

chairman of Bangladesh Association of Banks (BAB). Under his leadership, BAB has

emerged as an effective forum for exchanging views on problems being faced by the

banking sector of Bangladesh and for formulating common policy guidelines in

addressing such problems. This 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 Islamic
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Banking in the year July 2004. Mr. Mohammed Lokiotullah left the Bank on 3rd June,
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2007, there after Mr. Kazi Masihur Rahman became Managing Director on 4th June,

2007. Mr. Rahman served in the bank for next five years. Under his leadership, the bank

has been placed on a state of the art centralized IT platform with two modern data centers

where world renowned core banking software TEMENOS T24 is running along with

some alternate delivery channels like ATMs and SMS banking. On 25th August, 2011

Dr. Md. Haider Ali Miah joined in the bank as Managing Director. With his long

experience in the Shariah Based Islamic banking in Bangladesh, EXIM Bank is going to

take a new shape where IT-enable banking service will spread in the market.

2.2 Vision of EXIM Bank:

The gist of our vision is ‘Together towards Tomorrow’. Export Import Bank of

Bangladesh Limited believes in togetherness with its customers, in its march on the road

to growth and progress with service. To achieve the desired goal, there will be pursuit of

excellence at all stages with climate of continuous improvement, because, in EXIM

Bank, we believe, the line of excellence is never ending. Bank’s strategic plans and

networking will strengthen its competitive edge over others in rapidly changing

competitive environment. Its personalized quality services to the customers with trend of

constant improvement will be the cornerstone to achieve our operational success.

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2.3 Mission of EXIM Bank:

The Bank’s mission gives emphasis to:

 Provide quality financial services especially in Foreign Trade.

 Continue a contemporary technology based professional banking environment.

 Maintain corporate & business ethics and transparency at all levels Sound Capital

Base.

 Ensure sustainable growth and establish full value to the honorable stakeholders

 Fulfill its social commitments.

 Above all, to add positive contribution to the national economy.

2.4 Special Features of EXIM Bank:

 All activities of the bank are conducted according to Islamic Shariah where profit

is the legal alternative to interest.

 The banks investment policy follows different modes approved by Islamic Shariah

based on Quran and Sunnah.

 The bank is committed towards establishing welfare oriented banking system,

economic improvement of the low-income group of people, create employment

opportunities.

 According to the needs and demands of the society and the country as the whole

the bank invests money to different Halal business. The bank participates in

different activities aiming at creating jobs, implementing development projects

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taken by the government.

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  The bank is committed to establish an economic system through social justice and
equal distribution of wealth.

2.5 Commitment of EXIM Bank:

 Providing high quality financial services in export and import trade

 Providing efficient customer service.

 Being trusted repository of customer’s money and their financial adviser.

 Making its products superior and rewarding to the customers.

 Sound Capital Base.

2.6 Objectives of EXIM Bank:

 To receive, borrow or raise money through deposits, investments, or otherwise

and to give guarantees and indemnities in respect of all debts and contracts.

 To establish welfare oriented banking systems.

 To play a vital role in human development and employment generation to invest

money in such as may vary from time to time.

 To carry on business of buying and selling currency, gold and other valuable

assets.

 Provide high quality financial services in export and import trade.

 Provide defect free quality customer services.

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2.7 Products and Services:
 Deposits:
 Al-Wadia Current Deposit
 Mudarabah Savings Deposit
 Mudarabah Short Term Deposit
 Mudarabah Term Deposit
 One Month
 Three Months
 Six Months
 Twelve Months
 Twenty four Months
 Thirty Six Months
 Foreign Currency Deposit
 Mudaraba Term Deposit
 Monthly Savings Scheme
 Monthly Income Scheme
 Mudaraba Hajj Deposit
 Mudaraba Cash Waqf Deposit
 Murabaha Marriage Deposit Scheme

 Investment/Finance:
 Corporate Finance
 Industrial Finance
 Project Finance
 SME Agrifinance
 Syndicate Investment
 Import and Export Finance
 Mode of Investment
I) Murabaha
21

II) Bai Muazzal

III) Izara Bill Baia
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 IV) Quqrd
 Wazirat Bai Wakala
 Quard a-Al Hasane
V) Local Documentary Bill Purchased
 Musharake Documentary Bill
VI) Foreign Documentary Bill Purchased
 Bai As Sarf
 Foreign Exchange:
 Import
 Export
 Remittance
 Services:
 ATM Service
 Internet Banking (IGER)
 SMS Banking
 Mobile Service
 RTGS (Real Time Gross Settlement)
 Corporate Banking
 Retail Banking
 Lookers Service

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Name of the Company Export Import Bank of Bangladesh Ltd.
Status Private Limited Company

Slogan (2016) Year of Consolidation

Legal Form “A Shariah based Islamic Bank”

Date of Incorporation 2nd June, 1999

Date of Permission from 1st July, 1999

Bangladesh Bank
Corporate Head Office “SYMPHONY” Plot # SE (F): 9, Road # 142, Gulshan
Avenue, Dhaka- 1212, Bangladesh.
No of Branches 103

Total Manpower 2694 Employees.

Authorized Capital Tk.2000 Crores

Paid up Capital Tk.1400 Crores

Reserve Fund Tk. 612 Crores

Total Assets Tk. 252,917,678,074

Return on Equity (ROE) 11.35%

Fax 880-2-9891860, 9889358

PABX 9989358

SWIFT EXBKDDH

Website www.eximbankbd.com
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2.8 CORPORATE INFORMATION OF THE ORGANIZATION

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2.9 Foreign Exchange Regulation Act, 1974:
Foreign Exchange Regulation (PER) Act, 1947 (Act No. VH of 1947) enacted on

11th March, 1947 in the then British India provides the legal basis for regulating certain

payments, dealings in foreign exchange and securities and the import and export of

currency and bullion. This Act was first adapted in Pakistan and then, in Bangladesh.

The Act is reproduced. Bangladesh Bank is responsible for administration of

regulations under the Act. Bangladesh Bank’s offices and their jurisdictions provide a

list. Basic regulations under the PER Act are issued by the Government as well as by

the Bangladesh Bank in the form of Notifications, which are published in the

Bangladesh Gazette. Notifications issued by the Bangladesh Government and the

erstwhile Government of Pakistan and the Bangladesh Bank and the erstwhile State

Bank of Pakistan is reproduced. Directions having general application are issued by the

Bangladesh Bank in the form of notifications, foreign exchange circulars and circular

letters. The major objectives of the act are to conserve the limited foreign exchange

resources and to ensure that the available foreign exchange is utilized only for priority

requirements the economic and financial interests of Bangladesh and the maintenance

of the proper accounting of foreign exchange receipt and payments. Bangladesh Bank is

responsible for administration of regulations under the Act. Bangladesh Bank reviews

the exchange control measures from time to time and revises the instructions on policy

and measures, whenever necessary through different Foreign Exchange (FE) circulars.
24
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Bangladesh Bank: Bangladesh Bank (BB) means the Bangladesh Bank established
under the Bangladesh Bank Order, 1972 (President’s Order No. 127 of 1972).
Taka: Taka means the Bangladesh Taka unless otherwise specified.

Dollar: Unless otherwise in publication shall mean the US dollar.

Authorized Dealers:
Wherever used in this publication, the term Authorized Dealer or AD would mean a

bank Authorized -by Bangladesh Bank to deal in foreign exchange under the FER Act,

19.

2.10 Foreign Exchange Regulation Act, 1994:

This Act regulates the exchange of foreign currencies, remittances and opening of foreign

currency account under various classifications. According to this law, FC Accounts can

be opened without initial deposits, and bears no interest and both the account holder and

the nominee can operate the account. The entire remittance from adored is free from

income tax. It also states the documents required for the opening of such account.

2.11 Some Definition of Foreign Exchange:

Foreign exchange means foreign currency and includes all deposits, credits and balance

of payable in foreign currency as well as Draft, Traveler’s cheques, Letter of credit, Bills

of Exchange drawn in local currency but payable in foreign currency.

2.12 Foreign Exchange Regulation Act, 47, Sec 2 (a)

Foreign exchange means foreign currency and includes any instrument drawn, accepted,

made or issued under clause 13 of section 16 of the Bangladesh bank Order, 1972 all
25

deposits and credits and balances, Travelers cheques, Letter of credit and bills of
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exchange, expressed or drawn in Bangladesh currency but payable in any foreign

currency.

Bangladesh bank order 1972.

The mechanism through which payments are effected between two countries having

different currency systems is termed as foreign exchange. It is related with the exchange

method & mechanism through which the payments in connection with international

trade are transacted.

A Banking Expert.
System or process of converting one national currency into another and of transferring

money from one country into another. —Dr. Paul Einzig.

2.13 Foreign Exchange Department:

Foreign exchange department deals with foreign currency and the transaction of it. The

major jobs of this department are listed below:

 Letter of Credit (for Export and Import)

 Dollar/Travelers Cheque (TC) Endorsement

 Foreign Remittance

 Foreign Currency Account

OBJECTIVES OF EXIM BANK:

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CHAPTER 3:
LITERATURE
REVIEW

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3.1 Introduction

This chapter represents literature review of the previews studies done. Here we are going

to discuss the researches done by different scholars. Then a brief related empirical

studies. The framework will then be used as a guide for designing the research

methodology, which will be discussed in the next chapter.

3.2 International Trade

International trade plays a significant role in economic growth of a country and in

modern economy both international trade and economic growth are the most popular

concepts. The term international trade is used to indicate the buying and selling of goods

and services between countries for satisfying the needs of its population. International

trade enables the countries to sell their domestically produced goods and services to other

countries. Economic growth helps to increase the real per capital income of a population

of the country which can be sustained over a long period of time. International trade in

recent decades has considerable growth and it is evident that most conducted traded in

this area is associated with monetary and financial system and many banks and financial

institutions do financing the exchange of goods and services(Levine & Renelt, 1992).

Over the past years, it has been witness gradual development of integrated global

economic system and developing of science and technology in the various areas has

followed different conditions of business in these years (Sala-I-Martin & V Artadi, 2003).

International trade fosters innovation, the discrimination of technological progress

through exposure to new goods and imports of high-tech inputs and efficient production

(Daumal, 2010).
28
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3.3 Review of Related Empirical Studies
Several researches have been conducted on various aspects of foreign import and export

in Bangladesh and all over the country by the renowned researchers. An attempt has been

made to review the recent available literature related to export, import. A nation could

accelerate the rate of economic growth by promoting exports of goods and services. The

volume of imports is negatively related to its relative price and varies positively with

aggregate demand (real GDP growth). The higher relative price leads to substitution

away from imports—necessarily reducing the dollar value of imports as volumes decline.

Vohra (2001) examined the relationship between the export and growth of banks in India,

Pakistan, the Philippines, Malaysia, and Thailand for 1973 to 1993. The empirical results

showed that the exports have a positive and significant impact on growth.

Mamun and Nath (2005) examine time series evidence to investigate the link between

exports and profit of banks in Bangladesh. Using quarterly data for a period from 1976 to

2003, the article finds that industrial production and exports are co integrated. The results

of an error correction model (ECM) suggest that there is a long-run unidirectional

causality from exports to profit in Bangladesh.

Shirazi and Manap (2005) examine the export-led growth (ELG) hypothesis for five

South Asian countries including Bangladesh using co integration and multivariate

Granger Causality tests. They found feedback effects between exports and profit and

imports and profit in banks of Bangladesh.

Dritsakis, (2005) analyzed the relationship between exports and growth of banks in the
29

three of the largest exporting countries such as European Union, United States of
Page
America and Japan. Granger causality analysis based on error correction model was used.

The results of causality analysis suggested that there is a “strong bilateral causal

relationship” between exports and growth of banks for European Union consistent with

the studies in the EU. While the results for Japan suggested that there is not either a long

run relationship or any causality between exports and growth of banks.

Chaudhary, Shirazi and Chaudhary (2007) investigated trade policy and economic growth

for Bangladesh for better performance of banks. Co-integration and multivariate Granger

Causality test was used for the period of 1973 to 2002. Their results strongly supported a

long-run relationship among the three variables for Bangladesh. The results showed

feedback effects between exports and output growth and also between imports and output

growth in the short-run.

Ullah et al (2009) analyzed export-led-growth by time series econometric techniques

from1970 to 2008 for Pakistani bank. In this research, the results reveal that export

expansion leads to economic growth which leads to better performance for banks. They

also checked whether there is uni-directional or bidirectional causality between economic

growth, real exports, real imports, real gross fixed capital formation and real per capita

income.

Kim and Lin (2009) examined the impact of export composition on growth of Nigerian

commercial banks, the study indicated that not all exports contribute equally to growth.

Many developing countries depend on exports of primary products, which are subject to

excessive price fluctuations and this category of exports had negligible impact on growth
30
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of banks, while manufactured exports had a positive and significant effect on growth of

banks.

Yuhong and Li et.al. (2010) did co-integration analyses with the data of import, export

and return on asset and return on equity of banks to measure the performance and the

results suggest that growth of import greatly promoted performance of Chinese banks,

while that of export performed an opposite one.

Ogid, Mulok, Ching, Lily, Ghazali and Loganathan (2011) examined the relationship

between the growth and the import in Malaysian banks from 1970 to 2007. Results

indicate that there is no co integration exists between growth and import, but there exists

bilateral causality between growth and import.

Rahmaddi and Ichihashi (2011) in their study a causality approach based on multi –

vitiate error correction model was used. The study indicated that, significance of both

exports and profit of Indonesian banks. In addition, researchers found no supporting

evidence of positive causality from intermediate imports to growth of banks per capital.

Usman, Ashfaq, and Mushtaq (2012) analyzed the impact of export on the growth of

Pakistani banks. It was an empirical analysis of relationship of export and growth for 30

years (1980-2009). Results indicated that there is strongly positive and significant effect

of export, Inflation and Real exchange rate on growth of banks.

Kehinde, Jubril, and Felix, (2013) investigated the impact of international trade on

performance of private, public and foreign owned banks using a rank correlation analysis
31

among developed countries. The results of the study showed a positive relationship
Page

between international trade and performance of banks.

According to Tapşın, (2016), the mercantilist doctrine attributed great importance to

foreign trade, in other words; the international exchange process of capital accumulation,

which is a notable requirement for economic growth which will lead to increase growth

in every sectors of all countries.

32
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 CHAPTER 4:
RESEARCH
METHODOLOGY

33
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4.1 Introduction
In order to complete this study, I proceeded through a work plan. I discussed with

executives, officers and manager of bank about my topic. The study requires a systematic

procedure from selection of the topic to final report preparation. Hence, this chapter

outlines the research methodology that this study applied. It includes research method,

research design, research source, the sample and data period for the study. It also includes

the statistical tools used for the study.

4.2 Research Methods

Quantitative research is a set of methods and techniques that allow researchers to answer

research questions. Quantitative methods and techniques tend to specialize in quantities

in the sense that numbers represent values and levels of theoretical constructs and

concepts. Hence, quantitative research method has been applied for this study.

4.3 Research Design

The research design used for this study is a descriptive research design that basically

involve obtaining information concerning the current status of phenomena to describe,”

What exist” with respect to variables or condition in a situation (Gardner, Dixie, &

S.C.,2004).

4.4 Sample and Data Period

As an intern in the EXIM Bank Limited, Jubilee Road Branch, Chattogram, the branch

has been selected for studying the international trade financing performance. Thus, this

study takes a sample of 10 years of export and import data from the year 2009-2018 of
34

EXIM Bank Limited, Jubilee Road Branch.

Page
4.5 Source and Nature of data
In order to efficiently carry out a scholarly work, it is important to decide on how to

collect data. Thus, the study has been prepared by analyzing secondary data. The

essential data source is secondary data which will be needed to complete and work out

the study.

SECONDARY SOURCES ARE:

 Annual report of EXIM Bank Ltd.

 Different ‘Procedure Manual’ published by EXIM Bank Ltd.
 Different circular issued by Head Office of EXIM Bank Ltd. & Bangladesh Bank.
 Documents related to import financing recorded by EXIM Bank Ltd., Jubilee Road
branch.
 Documents related to export financing recorded by EXIM Bank Ltd., Jubilee Road
branch.

4.6 Method of Data Analysis and Statistical Tools

After collecting the relevant data, the statistical tools used to analyze the data for deriving

various relationships among the variables are mentioned below:

 Graphical analysis

 Time series analysis

35
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CHAPTER 5:
FINDINGS,
ANALYSIS&
DISCUSSION

36
Page
 5.1 Introduction

International Trade financing has been divided into two segment; Export and Import

financing. Thus, performance of export financing, import financing, growth rate and

profit from export financing, import financing and profit from both export-import

financing are given below:

5.2 Performance of Export Financing of EXIM Bank Limited, Jubilee

Road Branch
YEAR 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
EXPORT
PERFORMANCE
198.53 196.38 220.76 210.45 211.1 195.28 249.76 227.84 227.84 250.45
(Figures in million
BDT)
Table 1: Last ten years Performance of Export Financing of EXIM Bank Limited, Jubilee Road Branch. (Sources:
Jubilee Road Branch Data)

EXPORT FINANCING PERFORMANCE

300

250
EXPORT AMOUNT

200

150

100

50

0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
YEAR
EXPORT
Figure 1: Performance of Export Financing of Last Ten Years of EXIM Bank Limited, Jubilee
Road Branch.
37
Page
The graph above shows the performance of Export Financing of EXIM Bank Limited,

Jubilee Road Branch over a 10-year period from 2009 to 2018. The figures are given in

millions BDT. Overall, the export financing is increasing steadily though there are a few

ups and down. The highest export financing performance can be seen in the year 2018 of

BDT 250.45 million, whereas the lowest export financing performance recorded in the

year 2014 of BDT 195.28 million. However, the export financing performance in the year

2017 is same as in the year 2016 which is BDT 227.84 million.

5.2.1 Growth Rate of Export Financing of Last Ten Years of EXIM

Bank Limited, Jubilee Road Branch.

YEAR GROWTH RATE

2009 -
2010 -1.083
2011 12.415
2012 -4.67
2013 0.3089
2014 -7.494
2015 27.898
2016 -8.776
2017 0
2018 9.9236
Total 28.522
Table 2: Last ten years Growth rate of Export Financing of EXIM Bank Limited, Jubilee Road
Branch. (Sources: Jubilee Road Branch Data)
38
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 GROWTH RATE OF EXPORT FINANCING
35
30
25
GROWTH RATE

20
15
10
5
0
-5 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total
-10
-15 YEAR
GROWTH

Figure 2: Growth rate of Export Financing of Last Ten Years of EXIM Bank Limited, Jubilee
Road Branch.

The above graph illustrates the growth rate of Export Financing of EXIM Bank Limited,

Jubilee Road, over a 10-year period from 2009 to 2018. Overall, the growth rate of export

financing is fluctuating with few ups and down, such as in the year 2010 it is (1.083),

then it shows tremendous growth of 12.415 in the year 2011, then drops to (4.670) in the

year 2012, this trend continues till the year 2016. The highest growth rate of export

financing can be seen in 2015 which is 27.898, which is due to Global System of Trade

Preference and low-cost labor advantage with the aim of increasing trade by offering

benefits from foreign countries such as low cost facilities on bulk amount of orders/items,

tariff reductions and so on. Moreover, EXIM Bank Limited, Jubilee road branch has

involved in more export financing than import financing due to low cost and duty free

export. After that, the peak suddenly drops to (8.776) from the year 2015 to 2016, this is

because Bangladesh's major export item is readymade-garments, RMG sector, the heart

of our economy, plays a key role in the development of our country. This sector is one of
39
Page

the biggest contributors to our gross domestic product (GDP). Thus, export earnings from
RMG sector has reduced due to delay in delivery time, increase in lead time, lack of

modern technology, low quality of exportable product, lack of skilled manpower, and

shortage of supply etc. Hence customers are switching to nearby countries such as India,

China etc for better export items and facilities. Therefore, they are taking down the export

market in our country. Moreover, rising cost of labor and strict enforcement of safety

standards in RMG manufacturing increased cost of production, threatening the price

competitiveness of the country’s RMG exports in the global market. However, according

to business experts, lack of diversified products and sluggish private investments are the

root causes of this negative trend in export financing during the period of 2016-2017.

After that, the growth rate is steadily increasing which suddenly falls to zero in the year

2017, as there is no change in export financing in the year 2016 to 2017, and then the rate

suddenly rises to 9.9236 in the year 2018. Therefore, the total growth rate of export

financing from the year 2009 to 2018 is 28.52191.

5.2.2 Profit from Export Financing of Last Ten Years of EXIM Bank
Limited, Jubilee Road Branch
YEAR PROFIT(Figures in crore BDT)
2009 -
2010 -0.8547
2011 13.7931
2012 -5.30303
2013 1.6
2014 -4.72441
2015 28.09917
2016 -8.3871
2017 -4.22535
2018 10.29412
Total 30.29181
40

Table 3: Last ten years Profit from Export Financing of EXIM Bank Limited, Jubilee Road
Branch. (Sources: Jubilee Road Branch Data)
Page
 PROFIT FROM EXPORT FINANCING
35
30
25
PROFIT AMOUNT

20
15
10
5
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total
-5
YEAR
-10
-15 Profit

Figure 3: Profit from Export Financing of Last Ten Years of EXIM Bank Limited, Jubilee Road
Branch.

The above graph illustrates the profit from Export Financing of EXIM Bank Limited

Jubilee Road Branch, over a 10-year period from 2009 to 2018. The figures are given in

crores BDT. Overall, the profit from export financing is fluctuating though there are a

few ups and down, such as in the year 2010 it is BDT (0.8547) crore, then it shows

tremendous profit of BDT 13.7931crore in the year 2011, then it decreases to BDT

(5.30303) crore in the year 2012, this trend continues till the year 2016. The highest profit

from export financing can be seen in 2015 which is BDT 28.09917 crore due to increase

in growth rate from export financing. On the other hand, RMG sector has been shrinking

the export earnings and global brands and buyers cutting prices continuously causing a

drastic decrease in the profit margin which is the reason behind the drop of profit from

the year 2015 to 2016. Again from the year 2017-2018 the growth rate is steadily rising

till the year 2018.

41
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 5.3 Performance of Import Financing of EXIM Bank Limited, Jubilee
Road Branch

YEAR 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
IMPORT
PERFORMANCE
275.38 280.89 260.79 270.53 271.89 252.38 252.38 262.53 306.65 272.79
(Figures in million
BDT)
Table 4: Last ten years Performance of Import Financing of EXIM Bank Limited, Jubilee Road Branch (Sources:
Jubilee Road Branch Data)

IMPORT FINANCING PERFORMANCE

350
IMPORT AMOUNT

300
250
200
150
100
50
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
YEAR
IMPORT
Figure 4: Performance of Import Financing of Last Ten Years of EXIM Bank Limited, Jubilee
Road Branch.

The graph above shows the performance of Import Financing of EXIM Bank Limited,

Jubilee Road Branch, over a 10-year period from 2009 to 2018. The figures are given in

millions BDT. Overall, the Import Financing is fluctuating at a steady rate. The highest

import financing performance can be seen in 2017 which is BDT 306.65 million, and

then suddenly falls to BDT 272.79 million in the year 2018, whereas the lowest import

financing performance is recorded in the year 2014 to 2015 of BDT 252.38 million. This

is due to decrease in import of materials and machineries.

42 Page
5.3.1 Growth Rate of Import Financing of Last Ten Years of EXIM
Bank Limited, Jubilee Road Branch.

YEAR GROWTH RATE

2009 -

2010 2.00087152

2011 -7.15582612

2012 3.73480578

2013 0.50271689

2014 -7.17569605

2015 0

2016 4.02171329

2017 16.8056984

2018 -11.0419045

Total 1.69237925
Table 5: Last ten years Growth rate of Import Financing of EXIM Bank Limited, Jubilee Road
Branch. (Sources: Jubilee Road Branch Data)

GROWTH RATE OF IMPORT FINANCING

20

15

10
GROWTH RATE

0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total
-5

-10 YEAR

-15
43

GROWTH
Page

Figure 5: Growth rate of Import Financing of Last Ten Years of EXIM Bank Limited, Jubilee Road
Branch.
The above graph illustrates the growth rate of Import Financing of EXIM Bank Limited,

Jubilee Road Branch, over a 10-year period from 2009 to 2018. Overall, the growth rate

of Import Financing is fluctuating at a decreasing rate, such as in the year 2010 it is

2.000872 then it gradually decreased to (7.15583) in the year 2011, again increases to

3.734806 in the year 2012, this trend continues till the year 2014, from the year 2014 to

2015, the growth rate is zero as there is no change in Import Financing. Then, from the

year 2015, the growth rate starts to increase till the year 2017.The highest growth rate of

Import Financing can be seen in 2017 which is 16.8057, this is because barriers of import

financing has been reduced such as Tax, Vat, Cross border rules, and aggregate demand

of importable products was higher. In the year 2018 the peak suddenly falls to (11.0419)

due to increase in price of importable products which leads to substitution away from

imports necessarily reducing the dollar value of imports as volumes decline. Therefore,

the total growth rate of Import Financing from the year 2009 to 2018 is only 1.692379.

44
Page
5.3.2 Profit from Import Performance of Last Ten Years of EXIM Bank
Limited, Jubilee Road Branch.

YEAR PROFIT(Figures in crore BDT)

2009 -
2010 1.84049
2011 -6.6265
2012 3.22581

2013 1.875
2014 -4.2945
2015 1.23456
2016 4.48718
2017 12.8834
2018 -10.87
Total 2.52136
Table 6: Last ten years Profit from Import Financing of EXIM Bank Limited, Jubilee Road
Branch. (Sources: Jubilee Road Branch Data)

PROFIT FROM IMPORT FINANCING

15

10
PROFIT AMOUNT

0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total
-5
YEAR
-10

-15
Profit
45

Figure 6: Profit from Import Financing of Last Ten Years of EXIM Bank Limited, Jubilee
Page

Road Branch
The above graph illustrates the profit from Import Financing of EXIM Bank Limited,
Jubilee Road Branch, over a 10-year period from 2009 to 2018. The figures are given in
crores BDT. Overall, the profit form import financing is fluctuating at a decreasing rate,
such as in the year 2010, it is BDT 1.840491 crore, then it gradually decreases to BDT
(6.62651) crore in the year 2011, again increases to BDT 3.225806 crore in the year
2012, this trend continues till the year 2014. Again, from the year 2014, the profit starts
to increase till the year 2017.The highest profit from import financing can be seen in
2017 which is BDT 12.88344 crore, due to increase in growth rate from import financing,
then the peak suddenly falls to BDT (10.8696) crore in the year 2018 which is the lowest
profit recorded from import financing over the 10-year period as the rise in price of
importable products leads to decline in import financing, thus reducing the profit margin.
Therefore, the total profit from import financing from the year 2009 to 2018 is only BDT
2.521363 crore.

5.3.3 Profit from Both Export Import Financing of Last Ten Years of
EXIM Bank Limited, Jubilee Road Branch.
PROFIT FROM PROFIT FROM
YEAR IMPORT(Figures in crore EXPORT(Figures in crore
BDT) BDT)
2009 - -
2010 1.8405 -0.8547
2011 -6.627 13.7931
2012 3.2258 -5.30303
2013 1.875 1.6
2014 -4.294 -4.72441
2015 1.2346 28.0992
2016 4.4872 -8.3871
2017 12.883 -4.22535
2018 -10.87 10.2941
Table 7: Last Ten Years Profit from Both Export Import Financing of EXIM Bank Limited,
46

Jubilee Road Branch. (Sources: Jubilee Road Branch Data)

Page
 PROFIT FROM EXPORT IMPORT FINANCING
35
30
PROFIT AMOUNT

25
20
15
10
5
0
-5 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
-10 YEAR
-15
Profit from import Profit from export

Figure 7: Profit from Both Export Import Financing of Last Ten Years of EXIM Bank Limited,
Jubilee Road Branch.

The above graph illustrates the profit from Export Import Financing of EXIM Bank

Limited, Jubilee Road Branch over a 10-year period from 2009 to 2018. The figures are

given in crores BDT. Overall, from the graph it can be seen that the profit from export

financing is higher than the profit from import financing. However, from the year 2010

till 2013, profit from both export import financing are fluctuating steadily opposite to

each other. After that, profit from both export import financing becomes almost equal

from the year 2013 to 2014. The highest profit from export financing can be seen in the

year 2015 of BDT 28.09917 crore whereas the highest profit from import financing can

be seen in the year 2017 of BDT 12.88344 crore. In recent year such as 2018, it can be

concluded that profit from export financing is far better than profit from import financing.

Therefore, the Export Financing is showing growing trend than Import Financing.
47
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 CHAPTER 6:
RECOMMENDATIONS
& CONCLUSION

48
Page
6.1 Recommendations
Based on the findings and analysis of this study the following recommendations are

given:

 EXIM Bank Limited must make a diligent attempt to expand its export profile beyond

RMG products. Therefore, they must devote resources to the development and

production of non-RMG products, such as leather, which may have a promising

future in the global market.

 For keeping up the performance of Export Import financing on a growing trend, the

bank should initiate new strategies for the expansion of the markets for export

products, making proper utilization of computer technology and encouraging all

modern technologies including e-Commerce.

 Bank should start searching clients with more technological based product such as

modern technology based industrial machineries and raw materials due to

technological advancement in recent time.

 In foreign exchange department it is required to communicate with foreign banks and

International Division more frequently and quickly as in some cases there are

objections from client related to delay in communication.

 The ceramic industry in Jubilee road are booming and to fulfill the demands of people

they are importing products from abroad which requires huge financing so the thing

that Exim Bank in Jubilee road branch can do here is they can take this opportunity

and finance these businesses so that later on they can make profits out of it.
49
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 RMG sectors are exploring to progress in Automation Machineries and importing

Machineries from foreign companies and Exim bank could enter this sector in

Automation of RMG to help them in export financing.

6.2 Conclusion
The findings and analysis from this study leads to the following conclusions:

This branch is doing its operation successfully from the beginning time. The study found

that EXIM Bank Ltd, Jubilee road branch faced some financial problems from time to

time. Some of the problems are low performance of Import and Export Operations,

Growth rate and profit has been inconsistent. These problems arouse time to time due to

economic slowdown, interest rate fluctuation, emerging capital market, inflation in the

money market and so on. So the management of bank should try to solve these problems

by giving high performance of Import and Export operations, growth rate and profit must

be consistent etc. If this thing continues we hope that EXIM Bank Limited, Jubilee road

branch will develop even more in the future. Moreover, the growing competition bound

EXIM Bank not only to compete with the other commercial bank but also with the public

banks. For the future planning and the successful operation in achieving its prime goal in

this current competitive market, this can be helpful in international trade financing that

suggested mostly for the betterment of country. Foreign Exchange Business is the main

source of the expansion of our economy. This is why, the importance of the effective

involvement of Bank in our economy in financing Import, Export business is enormous.

50
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6.3 Limitations of the study

 The main limitation of the study is the collection of information. Because most of the

information are confidential and official secrecy so that I was not able to access many

records. Access of those data could make the study even more interesting.

 The study was restricted only on the EXIM Bank Ltd, Jubilee Road branch. A

comparison between the said branch and the bank as a whole might be more useful.

 Finally, being a student it would be wise to say that the researcher is still at the initial

stage to be learnt to carry out such kind of research papers effortlessly. However,

despite of all those limitations, the researcher has tried to cover every crucial aspects

of the study and tried to provide a fruitful result.

51
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 CHAPTER 7:
REFERENCES

52
Page
 References

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1-26.

Kim, D. H., & Lin, S. C. (2009). Trade and growth at different stages of economic

development. Journal of Development Studies, 45(8), 1211-1224.

Kotlewski, D.C.(2013). Impact of International Trade on Economic Growth. Gospodarka

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