CHAPTER-ONE

INTRODUCTION

1.0 Background of the Study

Islami Bank Bangladesh Limited (IBBL) is the first of its kind in the South East Asia which was established in 1983 with a view to provide banking services based on Islamic principles. The bank, which started its operation with only 3 branches in the first year of its inception, has now 254 branches in 28 years of operation.

As a bank, Islami Bank Bangladesh Limited receives deposits from its customers from all over the country as well as from abroad on profit and loss sharing basis and deploys that fund to different investment clients to gain profit. The bank distributes an agreed portion of the profit earned to the customers and the shareholders. Islami Bank Bangladesh Limited also performs foreign exchange business. In this process, the bank endeavors to contribute to the betterment of the society.

In the context of open market economy, the foreign exchange business is growing rapidly and playing a vital role in the economic growth of a country. About 40 % of total business of our country is rolling through foreign exchange transaction.

Islami Bank Bangladesh Limited has significantly contributed in flow of international transactions. Among the private commercial bank of our country IBBL is being kept the first position in export, import, remittance flow and as well as earnings the operating profit. Why I have chosen this topic, because to focus the foreign exchange banking performance of IBBL & its activities as based on Islamic Shariah.

This study is done to evaluate the overall activities of IBBL. Findings of the study may benefit the organization itself to take strategic decision on its future plan to enhance the volume of foreign exchange transaction. It may also benefit the readers as well as researchers who have particular interests in international trade finance.

1.1 Scope of the Study

The scope of this paper is to discussion of various aspects of Deposit Mobilization, Investment Mechanism & Foreign exchange operation of IBBL. This report aims to focus the actual practices “An Overview Of Foreign Exchange Operation” of Islami Bank Bangladesh Limited and its operations.

1.2 Objectives of the Study

The first objective of writing the report is fulfilling the partial requirements of the BBA program. The main purpose of this study is to have a better orientation on Foreign Exchange business performances of the bank. In this report, I have attempted to give an overview of Foreign Exchange Operation of Islami Bank Bangladesh Limited. Following are the main objectives

▪ To familiar the history and operations of Islami Banking in Bangladesh.

▪ To show the investment mechanism and product offerings in different modes of IBBL.

▪ To show overall investment proposal, appraisal procedures, documentation system of IBBL and Conventional Banks.

▪ To show an overview of Foreign Exchange Operation of IBBL.

▪ To show the differences with conventional banking regarding investments aspects

▪ To identify strength and weakness of investments of IBBL.

▪ To identify the problems related to investments faced by IBBL.

▪ To recommend actions that may be necessary to redesign the investments of IBBL.

1.3 Methodology

The study is performed based on the information extracted from different sources collected by using a specific methodology. The methods of completing the report have included some steps which are followed by one by one. First of all selected the topic of the report then collected information relating to the topic by primary and secondary sources and through personal interview. As an Internee of IBBL it was easy for me to collect data. After gathering the information determined the procedure of research and sampling plans. After gathering all the information required, come up with an expected result of the report.

Population:

All the Branches of IBBL located in everywhere in Bangladesh has been taken into consideration as population.

Sample:

Islami Bank Bangladesh Ltd, Head Office complex Branch.

Data collection:

Source of data of this report can be divided into two categories:

1.4 Sources of Information

❖ Primary Sources:

• Practical experience of banking.

• Training, workshop & seminar.

• Related files, books study provided by the officers concerned.

❖ Secondary Sources:

• Research papers, training materials, magazines.

• Annual Report ,Audit Reports of IBBL

• Banking related text books, Relevant books, Research papers, Newspapers and Journals, Manuals.

• Class notes of IBTRA, Website of IBBL.

1.5 Limitations of the Study
From the intention to make the report realistic and properly accepted this report has been conducted. However, many problems appeared in the way of conducting the study. During the study it was not possible to visit the whole area covered by the bank although the financial statements and other information regarding the study have been considered. The study considers following limitations:

❖ The major limitation faced in preparing this report was the sensitivity of the data. As it is a highly competitive market, if the margin information is released to other competitors, it may have a negative impact on their business. Resultantly, in some cases management were reluctant to give some specific data. ❖ Confidentiality of data was another important barrier that was confronted during the conduct of this study. Every organization has their own secrecy that is not revealed to others. While collecting data on IBBL, personnel did not disclose enough information for the sake of confidentiality of the organization ❖ Rush hours and business was another reason that acts as an obstacle while gathering data ❖ Time limitation is also a big factor, which hinders the data collection process. Due to time limitation many aspect could not by discussed in the present study.

CHAPTER-TWO

AN OVERVIEW OF

ISLAMI BANK BANGLADESH LTD.

2.0 What is Islami Bank?

An Islami Bank is a financial institution that operates with the objectives of implementing and materializing the economic and financial principles of Islam in the banking arena.

The definition of Islami Bank as approved the General Secretariat of the OIC is stated in the following manner. “An Islami Bank is a financial institution whose status, rules and procedures expressly state its commitment to the principle of Islamic Shariah and to the banning of the receipt and payment of interest on any of its operations.”

According to Islamic Banking Act 1983 of Malaysia, “Islami Bank is a Company which carries on Islamic banking business. Islamic banking business means banking business whose aims and operations do not involve any element which is not approved by the religion of Islam.”

2.1 Why Islami Bank?

The objective of Islami banking is not only to earn profit, but to do good and welfare to the people. Islam upholds the concept that money, income and property belong to Allah and this wealth is to be used for the good of the society in general and human being in particular.

Islami bank operates on Islamic principles including profit and loss sharing, strictly avoiding interest, which is the root of all exploitation and is responsible for large scale inflation and unemployment.

Islami bank is committed to try its best to do away with disparity and establish justice in the economy, trade, commerce and industry, build socio-economic infrastructure and employment opportunities.

2.2.1 Introduction

Islami Bank Bangladesh is one of the pioneer private commercial bank of Bangladesh. It was incorporated on 13.03.1983 as a public company with limited liability under company act, 1913. The Bank started its business from 30.03.1983. IBBL is based on Islamic Sharia’h. It is the first Islamic Bank in Southeast Asia. Now, it is the leading private commercial Bank in Bangladesh. IBBL is committed to do its all activities in interest free profit sharing by complying Islamic Shariah. IBBL through its steady progress and continued success has, by now, earned the reputation of being one of the leading private sector banks of the country.

2.2.2 Mission

To establish Islamic banking through the introduction of a welfare oriented banking system and also ensure equity and justice in the field of all economic activities, achieve balance growth and equitable development through diversified investment operations particularly in the priority sectors and less developed areas of the country. To encourage socio-economic uplift and financial services to the low income community particularly in the rural areas.

2.2.3 Vision

The vision of IBBL is to always strive superior financial performance, be considered a leading Islamic Bank by reputation & performance.

• To establish & maintain modern banking techniques.

• To ensure soundness & development of financial system based on Islamic principles.

• To build–up a strong & efficient organization with highly motivated professionals.

• To work for the benefit of people& encourage savings in the form of direct investment.

• Ensuring stability in financial system with accountability, transparency &integrity.

2.2.4 Functions

The functions of Islami Bank Bangladesh Limited are as under:

• To maintain all types of deposit accounts.

• To make investment.

• To conduct foreign exchange business.

• To extend other banking services.

• To conduct social welfare activities through Islami Bank Foundation.

2.2.5 Aims & Objectives

• To conduct interest –free banking

• To establish participatory banking instead of banking on debtor – creditor relationship.

• To invest on profit and risk sharing basis.

• To accept deposits on Mudaraba & Al-Wadeah basis.

• To establish a welfare-oriented banking system.

• To extend co-operation to the poor, the helpless and the low-income group for their economic upliftment.

• To play a vital role in human development and employment generation.

• To contribute towards balanced growth and development of the country through investment operations particularly in the less developed areas.

• To contribute in achieving the ultimate goal of Islamic economic system.

• Ensuring justice to both suppliers of fund (depositor) and user of fund ( investment taker)

• Encouraging and patronizing entrepreneurship.

• Bridging up the gap between the surplus and deficit of fund.

• Development of a healthy capital and money market.

• Providing various services and utilities to the public.

• Development of standard of living

• Switching over to mass banking from class banking.

• Alleviating poverty through Zakat and profit sharing micro-finance.

2.2.6 Special Feature

• All activities are conducted on interest-free according to Islamic Shariah principle.

• Investment is made through different modes as per Islamic Shariah.

• Investment–income of the Bank is shared with the Mudaraba depositor according to an agreed upon ratio ensuring a reasonably fair rate of return on their deposits.

• Aims to introduce welfare – oriented banking system and also to establish equity and justice in the field of all economic operations.

• Extends socio-economic and financial services to individuals of all economic backgrounds with strong commitment in rural

• Plays a vital role in human resources development and employment - generation particularly among the unemployed youths.

• Portfolio of investment & investment policy have been specially tailored to achieve balanced growth and equitable development through diversified investment operations particularly in the priority sectors and in the less developed areas of the national economy.

• Ensures Shariah Compliance through regular and effective guidance of powerful and highly esteemed Shariah Council consisting of 13 members representing Shariah scholars.

2.2.7 Islamic Banking movement throughout the World

The concept of Islamic Banking dates back many decades Attempts the 1950’s in Pakistan filed due to the lack of deposits into the system and depositor involvement in the deposits. In the early 1960’s Islamic banking practices achieved greater success in Egypt through the MitGhamar Savings Bank. In 1971 the Nasser Social Bank was the first urban based Islamic Bank. Its purpose was the granting of interest free loans to small projects and to needy students for higher education.

Islamic Banking also developed in Malaysia in response to Malaysian Muslims who contended that money spent on pilgrimage must be clean of Riba. As a result, the Pilgrims Savings Corporation was established in 1963. The Dubai Islamic Bank in Dubai, UAE and the Islamic Development Bank, a multi-national corporation, opened in 1975.

Islamic Banking spread westward with the opening of an Islamic Bank Investment company in the Bahama in 1977 and the development of the Islamic Banking System International Holding, a joint stock company, in Luxembourg in 1978.The Islamic banking movement took a variety of forms throughout the 1970’s and 1980’s.In Iran the movement took place in several stages. First, in the late1970’s Islamic Banking was introduced through the naturalization of the banking system by the Iranian Government which proved to be unsuccessful. Second, in the mid 1980’s, the Iranian Government passed the law for Riba free banking giving a very strict deadline for banks to convert their operations to that of Islamic beliefs.

Till now, more than 300 Islamic banks and financial institutions in about 50 countries of Asia, Africa, Europe, and America including countries like UK, U.S.A., Germany, Argentina, Denmark, Luxembourg, Switzerland and India have been established. The banking system of Pakistan and Iran was Islamized and that of Sudan has been totally remodeled on the basis of Islamic Shari‘ah.

2.2.8 Islamic Banking in Bangladesh

In August 1974, Bangladesh signed the Charter of Islamic Development Bank and committed itself to reorganize its economic and financial system in accordance with Islamic Shariah. Earlier in November 1980, Bangladesh Bank, the Central Bank of the country sent a representative to study the working of several Islamic banks abroad.

In November 1982, a delegation of IDB visited Bangladesh and showed keen interest to participate in establishing a joint venture Islamic band in the private sector. They found a lot of work had already been done and Islamic banking was in a ready form for immediate introduction. Two professional bodies Islamic Economics Research Bureau (IERB) and Bangladesh Islamic Bankers’ Association (BIBA) made significant contributions during the formative stage of Islamic bank in the country.

They came forward to provide training on Islamic banking to top bankers and economists to fill up the vacuum of leadership for the future Islamic bands in Bangladesh. They also arranged seminars, symposia and workshops on Islamic economics and banking throughout the country to mobilize public opinion in favor of Islamic banking.

At last, the long drawn struggle to establish an Islamic bank in Bangladesh come to a reality and Islami Bank Bangladesh Limited was established in March 1983 in which 19 Bangladeshi nationals, 4 Bangladeshi institutions and 11 banks, financial institutions and government bodies of the Middle East and Europe including IDB and two eminent personalities of the Kingdom of Saudi Arabia joined hands to make the dream a reality.

Later other seven Islamic Banks, different Islamic Insurance Companies and Financial Institutions were established in the country.

1983 IBBL under companies Act. Function on 30.03.1983 with major share by the foreign entrepreneurs.

1987 AL Baraka bank now the oriental Bank Ltd.

1995 27.09.1995 Al Arafah Islami bank Ltd.

1995 22.11.1995 Social Investment bank ltd. with foreign shares.

1997 August, Shamil bank of Bahrain EC (Islami Bankers) a foreign ownership bank. Now converted Bank Al-Falah.

2001 10.05.2001 Shajhalal Bank Ltd.

2003 04.12.2003 Export Import Bank (EXIM Bank)

2006 First Security Islami Bank Ltd.

*At present 12.9% of total banking business owned by the Islamic banks in Bangladesh.

Interest based traditional banks with Islami baking branch are given below:

• Prime bank ltd.

• Dhaka Bank Ltd

• Southeast Bank Ltd.

• The city bank ltd.

• Premier Bank Ltd.

• Arab Bangladesh Bank Ltd.

• HSBC Bank

• Jamuna Bank Limited.

CHAPTER-THREE

GENERAL BANKING ACTIVITIES OF IBBL

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3.0 Activities of IBBL

Major Functions of IBBL:

• To maintain all types of deposit accounts/ General Banking.

• To make investment.

• To conduct foreign exchange business.

3.1 General Banking of Islami Bank Bangladesh Ltd.

General Banking is the heart of Banking. Here money collection procedure occurs. Other services, like cheque encashment, account transfer; account closing, bills and remittance are given here. So general banking is the most important area in banking service.

Products and services of IBBL

Al Wadeah (Current Account) Al-Mudaraba (Deposit Accounts)

Bank receives deposit by different accounts. There are two types of accounts are as follows:

3.1.1 Al Wadiah:

This account is similar to the demand deposit account of interest based banks. Conventional interest based banks do not pay interest on this type of deposit account. The term al wadiah means deposit of money allowing somebody to claim the funds in the account. From al wadiah account, the account holder does not get any profit but he agrees to allow the bank to lend these funds to entrepreneurs seeking financing for their product ideas. The Bank distributes minimum 65% -85% of its investment income earned through deployment of Mudarabah deposits among the Mudarabah depositors.

3.1.2 Al Mudaraba:

The mudarabah account of Islami Banks is different from the checking account of an interest based bank. Mudarabah is a form of business contract where one party supplies money and the other manages the business by investing labor and time. Under this arrangement profit distribution under agreed ratio and loss (if any) will be borne by Saheb al mal.

There are two parties:

(1).One is Saheb Al Mall - Client. (2.) Another is Mudarib – Bank.

Under Mudaraba Mode:

Islami Bank Bangladesh Limited gives special importance on savings. The objectives and principles of the saving policy of the Bank are:

• To encourage people to save for self and for the country as a whole

• To develop a sustained saving habit among the people.

• To mobilize deposits through the operation of following accounts:

1. Mudarabah Savings Account.

2. Mudarabah Term Deposit Account: 3 months / 6 months / 12 months / 24months / 36 month term.

3. Mudarabah Special Notice Account.

4. Mudarabah Hajj Savings Account (a special account to facilitate performance of Hajj by fixed income group: 1year to 25 years term.

5. Mudarabah Special Savings (Pension) Account: 5 years & 10 years term.

6. Mudarabah Saving Bond Scheme:5 years & 8 years term.

7. Mudarabah foreign Currency Deposit (Savings) Account.

8. Mudarabah Monthly Profit Deposit Account.

9. Mudarabah Muhor saving Account

10. Mudarabah Waqf cash Deposit Accounts (MWCDA)

3.1.3 Who can open bank accounts?

• Persons over 18 years (except some restricted person)

• Account of club.

• Association.

• Agent.

• Government.

• Semi Government.

• Organization.

• Liquidators.

• Married Women.

• Pordanshin Ladies.

• Illiterate persons. Etc.

3.1.4 Required documents for Account opening:

For Proprietorship Firm:

--Trade license up to date.

--KYC form for Firm.

--Introduction of any current account holder.

--Two copies attested Photocopies of Proprietor (A/C Operator)

--Tax Identification Number (TIN)

--VAT certificate.

--Nationality Certificate from word commissioner/ Up Chairman or Passport Photocopy.

--All Documents should be submitted for attested the photocopies of the Documents.

For Partnership Firm:

--Partnership Deed.

--Trade License Up to date.

--KYC form for Firm.

--Introduction of any Current Account holder.

--Two copies attested Photographs of A/C.

--TIN Certificate.

--VAT Certificate.

--Nationality Certificate from Word Commissioner/ UP Chairman or Passport Photocopy of every signatories of the A/C.

--All Documents should be submitted for attested the photocopies of the Documents.

For Public/Private limited company:

--Resolution of the companies.

--Memorandum and Articles of Association (Rubber Stamp seal should be put up in all pages of the Memorandum)

--Certificate of Incorporation.

--Certificate of Commencement of Business.

--Trade license Up to Date.

--TIN Certificate.

--VAT Certificate

--KYC Form for Firm.

--Introduction to any Current account holder.

--Two copies attested Photographs of A/C Operators.

-- Nationality Certificate from Word Commissioner/ UP Chairman or Passport Photocopy of every signatories of the A/C.

For Opening Mudaraba Savings A/c (MSA A/C):

-- Nationality Certificate from Word Commissioner/ UP Chairman or Passport Photocopy of every signatories of the A/C.

-- KYC Form for Individual.

--Introduction of any Current Account/Savings account holder.

-- Two copies attested Photographs of A/C Operators.

For Opening Mudaraba Special Savings (pension) (MSS) A/C.

-- KYC Form for Individual.

-- Introduction of any Current Account/Savings account holder.

-- Two copies attested Photographs of A/C Operators.

3.1.5 Account Transfer:

Customer has to submit an application mentioning that he/she wants to transfer his/her A/C to his desired Branch and the officer will verify the signature, Customer has to be certified by different department of Bank that he/she has no liabilities to the bank. Then total particulars of A/C holder will prepare and sent to the Customer's desired branch. Liability of Recognizer is secondary and account holder is primary.

3.1.6 Account Closing:

First a customer has to submit an application with his/her signature mentioning that he/she wants to close his/her A/C. Then the signature will be verified by the officer. Customer has to certify by different department (Advance, Foreign Exchange department) of Bank that he/she has no liabilities to the Bank. After that the Customer's A/C is debited and then Bank issues a Pay Order in the name of A/C holder.

3.2 General Banking operations by various departments:

--Cash Section

--Bills and Remittance Section

--Clearing house section

--Accounts section is ennoblement is various activities.

A) Function of cash section:

--Cash receipt

--Cash payment

--Issuance of cheque

--Passing, Cancellation and Payment of Cheque.

B) Functions of Bills and Remittance section:

--Issuance, Payment and Cancellation of DD, TT, P.O, OBC, IBC.

Demand Draft: (DD)

According to section 85 (A) of the Negotiable Instruments Act, a demand draft is “An order to pay money drawn by one office of the bank upon other office of the same bank for a sum of money payable to order on demand.”

Telegraphic Transfer: (TT)

Telegraphic transfer is so far the quickest method of transferring funds from one place to another. Sometimes, the remitter of the funds requires the money to be available to the payee immediately. In that case the banker is requested by the remitter to remit the funds telegraphically.

Payment Order: (PO)

Order is meant for making payment of the banker’s own or of the customer’s dues locally and not for affecting any remittance to an out station. In a sense, the payment order is used for making a remittance to the local creditors for which application to be made through F -19 and amount may be deposited through cheque/cash.

C) Clearing and Collection Department:

Clearing is an interbank collection arrangement of credit instruments like cheques, PO, Draft, etc. under the leadership of Central band or its representative bank, where there is no Central Band.

At present Sonali Bank is representing Bangladesh Bank for operating clearing House where there is no Bangladesh Bank.

--Clearing and collection of instruments of different banks through central bank or its representative.

D) Accounts Section:

Book keeping, maintenance of vouchers preparation of General ledger and clean cash book, Maintenance of sundry, suspense etc.

Reconciliation of IBG A/Cs

IBDA Inter Branch Debit Advice.

IBCA Inter Branch Credit Advice.

3.3 Custody and Maintenance:

Custody and maintenance of AOF SS Cards, Cheque Books, Ledgers, Statement of A/Cs voucher and secrecy of Accounts.

3.4 Vault & Locker Service:

Strong vault rooms & locker services are maintained for safeguard of valuable things & papers.

CHAPTER FIVE

INVESTMENT PROCEDURE OF IBBL

5.0 Introduction

The special feature of the investment policy of the Bank is to invest on the basis of profit-loss sharing system in accordance with the tenets and principles of Islamic Shariah. Earning profit is not the only motive and objective of the Bank's investment policy rather emphasis is given in attaining social good and in creating employment opportunities. Pursuant to the Investment Policy adopted by the Bank, a '7-year Perspective Investment Plan' has been drawn-up and put into implementation. The plan aims at diversification of the investment port-folio by size, sector, geographical area, economic purpose and securities to bring in phases all sectors of the economy and all types of economic groups of the society within the fold of Bank's investment operations.

Accordingly, the plan envisages composition of the investment port-folio with 4.88% for agriculture and rural investment, 41.49% for industrial term investment, 14% for industrial working capital, 4.13% for housing and real-estate, 16.78% for transport and communication, 0.5% for electricity, gas, water and sanitation services, 2% for storage, 1% for poultry and dairy,2% for Rural Development Scheme, 4.20% for other Special Scheme, 0.5% for Micro Industry and 1% for other productive 26.86% for SME purposes by the end of the plan period, i.e. the year 2010

Further, in order to diversify investment portfolio, the Bank engaged itself in investment operations through special schemes introduced during the years. The Bank is planning to introduce yet other new investment schemes in addition to welfare-oriented Investment Schemes.

5.1 Investment Operation of IBBL

Investment operation of a Bank is the greatest share of total revenue generated from it, maximum risk is centered in it and the very existence of a Bank mostly depends on prudent management of its Investment Port-folio. Bank landing is important to the economy.

Adequate finance can maintain a stable output. But as liquidity and profitability are conflicting considerations, IBBL, as a bank, while employing the funds pays due regard to both profitability and liquidity.

Investment and credit department receive application from clients in a prescribed application form supplied by the Islami Bank Bangladesh Limited. This application form contains detail about the borrowers such as names address of the borrowers/ directors/partners/proprietors, type and nature of the business, security offered, market of the borrower product, annual sales and production etc.

The applicant must duly sign the application form. The branch officer after receiving the application form scrutinize the information provided in the form, collect additional financial information of the proposed firm, detail financial and other relevant information of sister concern, if any. After appraising the investment request and its securities the branch makes an investment proposal with detail information to the head office for approval. The officer in-charge and manager must sign this investment proposal as well. If head office approves the investment proposal, the branch prepares all documentation and make arrangement for investment disbursement Islami Bank (B.D) offer various types of investment.

5.2 Operational Procedure of Investment mechanism of IBBL

5.3 Performance of IBBL at a glance (2004-10)

(Amount in Million Taka)

|Particulars |2004 |2005 |2006 |
| |(1) |(2) | (3) |
|1 |Local Office |4718.50 | 2.70% |
|2 |Feni |4033.12 | 2.31% |
|3 |B. Baria |3898.28 | 2.23% |
|4 |Laksham |3380.08 | 1.93% |
|5 |Hazigonj |3243.17 | 1.86% |
|6 |Comilla |3142.44 | 1.80% |
|7 |Narshingdi |2946.98 | 1.69% |
|8 |HOCC Br. |2865.76 | 1.64% |
|9 |Laxmipur |2621.86 | 1.50% |
|10 |Companigonj |2594.29 | 1.48% |

Foreign Inward Remittance

Remittance of foreign currency being received in the country from abroad is called inward foreign remittance.

Some special feature of Inward Remittance

• Any amount can be brought in

• If remittance is above US $2000/- then the form “C” is to be filled in by the beneficiary maintaining the purpose of remittance.

• Form FRJ is to be declared to the custom for above US $ 5000/- on arrival by incoming passenger at the entry port.

• If the remittance is for gift/donation permission is to be obtained from perspective ministry/authority.

Foreign Outward Remittance

Foreign currency being made out abroad may be termed as foreign outward remittance. Purpose of foreign Outward remittance:

• Travel/Tour/Visit, Education, Seminar/Workshop, Fees

• Family maintenance, Salaries & savings by expatriates

• Remittance by foreign shipping lines/airlines/courier services

• Dividend/gain of foreign company

• Hajj

• Expenses of office opened abroad

• Remittance of royalty & technical fees

• Operating expenses of offices of Bangladeshi shipping corporation & Bangladesh Biman

• Remittance against import claims

• Subscription to foreign media, Advertisement, Bank charges etc.

Trading Currency

Trading of foreign currency means Purchase & sale of different currencies or exchange of one currency into other. It includes mainly dealing room operation (Dealing room: A room where online buying & selling of foreign currency takes places) excluding the money market operation. This is purchase or sale of one currency in term of another, either Local Currency to Foreign Currency, or Foreign Currency to Local Currency, or Foreign Currency to Foreign Currency (Cross Currency).

The Dealing Room of IBBL established at IBW (International Banking Wing) in July 2005 and is functioning with two officials who have taken Foreign Exchange Bourse Training in Mumbai under the auspices of Reserve Bank of India.

The Dealing Room of IBBL earned BDT 210.00 million from July 2005 to December 2005. From January to August 2006, Dealing Room has earned BDT 255.00 million.

Foreign Exchange business of IBBL at a glance:

Figure in million tk.

|SL No |Business |Achievement |Target for 2011 |Achievement Up to |Achievement (%) |Growth (%) |
| | |in 2010 | |September |of target | |
| | | | |2011 | | |
|1 |2 |3 |4 |5 | 6 |7 |
|1 |Import |246,281 |305,000 |239,170 | 105% |41% |
|2 |Export |148,421 |193,000 |137,644 | 95% |31% |
|3 |Remittance |214,629 |275,000 |174,703 | 85% |11% |
|4 |Total |609,331 |773,000 |551,518 | 95% |28% |

----------------------- Application

Categorization (4 categories)

Processing and appraisal

Sanction

Documentation

Purchase of goods by the Bank

Taking delivery of goods by the bank

Induction of client

Sales and delivery of goods to the client