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Foreign Trade of Bank Asia Ltd.

In: Business and Management

Submitted By zaheedhasib13
Words 767
Pages 4
Loss of General Account interest on RAD balance: The balance of Foreign Currency account is showed in the Trial Balance of AD Branch in taka form which is deposit for them and earns general account interest on the daily balance on foreign currency. But the Remittance Awaiting Disposal (RAD) Account of Saiham Cotton Mills Ltd. & Faisal Spinning Mills Ltd. are being maintained with Central Trade Services Unit (CTSU) and neither the branch nor the CTSU is getting general account interest on the daily balance of RAD account of Saiham Cotton Mills Ltd. & Faisal Spinning Mills Ltd. In light of the above table, it is certain that we have loosed BDT 1.80 million general account interest from 01.01.2014 to 31.05.2014 which will be BDT 4.31 million in 2014 for not showing FC account balance in Trial Balance of our branch. Moreover, RAD account balance is not adding with total deposit of the branch and it is not contributing the deposit mix of the branch since it is a low cost deposit.

No sharing of interest income on UPAS payment & USD Purchase: The L/C of Saiham Cotton Mills Ltd. and Faisal Spinning Mills Ltd. is opened either UPAS arrangement or EDF arrangement as per Corporate Office’s approval ref: BA/CO/CRM(CACO)/AHH/eS/2013/0813 dated 20.10.2013. In case of UPAS, we do not earn any interest income at the time of payment of L/C by the client to OBU though our proposal was to take share 2% rate of interest (along with
DHANMONDI BRANCH

50% overdue interest earnings for overdue period) from the LIBOR+4.50% rate of interest which OBU will charge to the client. It is notable here that OBU use the treasury fund for UPAS L/C payment so they can easily share their interest income with the branch. The same thought is also applicable for USD purchase and it was mentioned in our proposal. Total UPAS L/C of the client during 01.01.2014 to 31.05.14 was USD 4.07 million…...

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