Investment Performance Analysis of EXIM Bank Limited

An Internship Report

on

“Investment Performance Analysis of EXIM Bank Limited”

Prepared For
Professor Dr. A B M Rashedul Hassan
Dean
Faculty of Business Administration
EXIM Bank Agricultural University Bangladesh

Prepared By
Shariar Hossain Turjo
ID: BBAW2019000809
Major in Accounting
Batch: 16th
Faculty of Business Administration
EXIM Bank Agricultural University Bangladesh

Date of Submission: 03th July, 2024

Investment Performance Analysis of EXIM Bank Limited
 Investment Performance Analysis of EXIM Bank Limited

An Internship Report

on

“Investment Performance Analysis of EXIM Bank Limited”

Supervised By
S. M. Faridul Islam
Assistant Professor
Department of Accounting
Faculty of Business Administration
EXIM Bank Agricultural University Bangladesh

Submitted By
Shariar Hossain Turjo
ID: BBAW2019000809
Major in Accounting
Batch: 16th
Faculty of Business Administration
EXIM Bank Agricultural University Bangladesh

Date of Submission: 03th July, 2024

 Investment Performance Analysis of EXIM Bank Limited

Letter of Transmittal
th
03 July, 2024
S. M. Faridul Islam
Assistant Professor
Department of Accounting
Faculty of Business Administration
EXIM Bank Agricultural University Bangladesh
Subject: Submission of Internship Report on “Investment Performance Analysis of
EXIM Bank Limited”

Dear sir,

I am very pleased to present my internship report on the "Investment Performance

Analysis of EXIM Bank Limited". I am truly honored that you approved this topic for my
report. It is a time of great honor and pleasure for me to complete my internship at
country’s one of the second-generation banks ‘Exim Bank Limited” at the same time
under the supervision of yours. In order to write an effective internship report with the
help of your direction, I focused all my attention on successfully completing the
internship.

I am so grateful and I appreciate your wise counsel, direction, and directions very much. I
tried to do my best to create this report. However, if inaccuracies occur, I am at your
disposal for the praise and criticism of the report.

I therefore pray and hope you would be kind enough to accept my internship report.

Sincerely,

……………………………
Shariar Hossain Turjo
ID: BBAW2019000809
Batch: 16th
Major in Accounting
Faculty of Business Administration
EXIM Bank Agricultural University Bangladesh

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 Investment Performance Analysis of EXIM Bank Limited

Declaration

I, Shariar Hossain Turjo, a student at EXIM Bank Agricultural University Bangladesh.

Enrolled in the Faculty of Business Administration, declare that the internship report
titled “Investment Performance Analysis of EXIM Bank Limited” submitted by me for
only to fulfill my academic requirement and entirely my original work.

I acknowledged that all ideas, data, research findings, and content presented in the
internship report are my own, and any contributions from external sources have been
appropriately and accurately cited and referenced. I have not engaged in any form of
academic misconduct, including plagiarism, cheating, or any other dishonest practices, in
the preparation of this report. Any assistance, guidance, or resources received during the
research and writing of this internship report are duly acknowledged in the
acknowledgement section.

I understand that any violation of academic integrity or failure to comply with the
principles of honesty and authenticity may lead to disciplinary actions and “F” Grade. I
take full responsibility for the content and accuracy if the report, and I am prepared to
defend its authenticity if required.

By signing this declaration, I affirm my commitment to academic integrity and the

principles of honesty in scholarly work.

Sincerely,

……………………………
Shariar Hossain Turjo
ID: BBAW2019000809
Batch: 16th
Major in Accounting
Faculty of Business Administration
EXIM Bank Agricultural University Bangladesh

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 Investment Performance Analysis of EXIM Bank Limited

Declaration of Supervisor

This is certifying that Shariar Hossain Turjo is a student under the Faculty of Business
Administration, EXIM Bank Agricultural University Bangladesh. He bears the
registration ID no: BBAW201900809 and he has successfully completed her internship
program and prepared this report on “Investment Performance Analysis of EXIM Bank
Limited” based upon the requirement of the program.

The information presented here seems to be authentic. He has done his job according to
his supervisor and guidance. He has tried his best to do this successfully. I think this study
will help his in the future to build up his career. I wish his every success in life.

………………………….
S. M. Faridul Islam
Assistant Professor
Department Of Accounting
Faculty of Business Administration
EXIM Bank Agricultural University Bangladesh

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 Investment Performance Analysis of EXIM Bank Limited

Acknowledgement

I would like to express my sincere gratitude and appreciation to the following individuals
and organizations for their invaluable support and assistance throughout the completion
of my report. My supervisor, S.M. Faridul Islam, for his guidance, mentorship and
unwavering support. His expertise and dedication significantly enriched the quality of the
work.
EXIM Bank for providing me with the opportunity to undertake this research, and for
granting access to valuable resources, data and facilities. My Family and Friends, for their
encouragement, patience, and understanding during this demanding academic endeavor.
Their support was a constant source of motivation.

Md. Rakibul Hasan (Assistant Officer of EXIM Bank, Chapainawabganj Branch), for his
contributions in terms of advice, feedback or assistance in various forms. I would also
like to acknowledge the entire EXIM Bank Agricultural University Bangladesh
community for fostering an environment conducive to academic growth and research
excellence.This report would not have been possible without the collective support and
inspiration from these individuals and institutions.

Thank you all for your invaluable contributions to this work.

……………………………
Shariar Hossain Turjo
ID: BBAW2019000809
Batch: 16th

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 Investment Performance Analysis of EXIM Bank Limited

Executive Summary

The Export-Import Bank of Bangladesh Limited is a rapidly expanding private bank. It

focuses on delivering greater customer service at a low cost. The bank's efforts are
focused on product and service diversification. Within a very short period of time, the
Export Import Bank of Bangladesh Limited has made significant progress. In Bangladesh,
the bank has been rated as a top-tier institution. I attempted to analyze the investment
process of Export Import Bank of Bangladesh Limited in this report.

Behind the bank's success, they efficiently analyze investment risk and other risks and
manage the risks in such a way that they achieve success. In the first section of the report,
I discuss the organization's overview, mission and vision, goals and objectives,
operations, and performance of the bank at a glance, among other things. In the second
section of the report, I discuss the study's background, the review of the literature, and the
report's research methodology. The background of the study includes a statement of the
problem, the rationale for the study, the scope of the project, and the project's objective.

The third section of the report analyzes the topic as a whole about the Investment of
Export Import Bank of Bangladesh Limited, Investment Objectives of Export Import
Bank of Bangladesh Limited, Investment Categories of Export Import Bank of
Bangladesh Limited, Lending Principles, Investment Investigation, major investment
categories, Major Industry Wise Investment, Investment Assessment & Risk
Management, Security, Documentation Process, and Investment Monitoring Process of
the bank. The fourth section of the report discusses the report's major findings, and the
fifth section of the report makes recommendations based on the report's findings, before
concluding the report with the conclusion section.

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 Investment Performance Analysis of EXIM Bank Limited

Table of Contents
Letter of Transmittal..............................................................................................................i
Declaration...........................................................................................................................ii
Declaration of Supervisor...................................................................................................iii
Acknowledgement..............................................................................................................iv
Executive Summary.............................................................................................................v
List of Tables.....................................................................................................................viii
List of Figures...................................................................................................................viii
Abbreviations and Acronyms..............................................................................................ix
Chapter 1: Introduction......................................................................................................10
1.1 Introduction..............................................................................................................11
1.2 Background of the Study..........................................................................................11
1.3 Objectives of the Study.............................................................................................11
1.4 Methodology of the Study........................................................................................12
1.4.1 Primary Sources................................................................................................12
1.4.2 Secondary Sources............................................................................................12
Internal Sources..........................................................................................................12
1.5 Limitations of the study............................................................................................14
Chapter 2: Organizational Overview..................................................................................15
2.1 History of the Organization......................................................................................16
2.2 Vision, Mission, and Corporate Culture...................................................................17
2.2.1 Vision................................................................................................................17
2.2.2 Mission..............................................................................................................18
2.2.3 Corporate Culture..............................................................................................18
2.3 Hierarchy of EXIM Bank Limited Bangladesh........................................................19
2.4 Functions of the Department....................................................................................20
2.4.1 Services Provided by EXIM
BANK………………………………………………...20
2.4.2 Departments of EXIM Bank………………………………………………………..21
2.4.3 Account opening……………………………………………………………………22
2.5 Financial Information...............................................................................................23
2.6 EXIM Bank Limited at a Glance..............................................................................24
2.7 Shahriah Council of EXIM Bank Limited................................................................24
2.8 Shahriah Auditing.....................................................................................................24
2.9 Banking with Shahriah Principles............................................................................25

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 Investment Performance Analysis of EXIM Bank Limited

Chapter 3: Investment Performance Analysis of EXIM Bank Limited.............................26

3.1 What is Investment?.................................................................................................27
3.2 Investment Objectives of EXIM Bank Limited........................................................27
3.2.1 Investment Ways of EXIM Bank Limited.........................................................27
3.3 Investments areas of EXIM Bank Limited...............................................................28
3.4 Major Industry-wise Investment...............................................................................30
3.5 Major Investment Categories...................................................................................31
3.6 Investment Method...................................................................................................32
3.7 General Lending principles of EXIM Bank Limited................................................32
3.8 Investigation for investment.....................................................................................33
3.9 Investment Recovery................................................................................................34
3.10 Investment Assessment and Risk Management......................................................34
3.11 Ratio Analysis.........................................................................................................36
3.11.1 Return on Equity (ROE) of EXIM Bank Limited...........................................36
3.11.2 Return on Assets (ROA)..................................................................................37
3.11.3 Net Income Growth (NIG)..............................................................................38
3.11.4 Net Non-Interest Margin.................................................................................39
3.11.5 Profit Earning Assets.......................................................................................40
3.11.6 Earnings Per Share (EPS)................................................................................41
3.11.7 Investment to Deposit Ratio............................................................................42
3.11.8 Capital Adequacy Ratio...................................................................................43
3.11.9 Price Earnings Ratio (times)...........................................................................44
Chapter 4: Internship Experience.......................................................................................45
4.1 Duties and Job Responsibilities as an Intern............................................................46
4.2 Skills Applied...........................................................................................................46
4.3 Challenges Faced......................................................................................................47
4.4 New Skills Developed..............................................................................................48
Chapter 5: Findings and Discussions.................................................................................49
5.1 Findings....................................................................................................................50
5.2 Discussions...............................................................................................................50
Chapter 6: Recommendation and Conclusion....................................................................52
6.1 Recommendation......................................................................................................53
6.2 Conclusion................................................................................................................53
References..........................................................................................................................54

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Investment Performance Analysis of EXIM Bank Limited

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 Investment Performance Analysis of EXIM Bank Limited

List of Tables

Table No Name of the Table Page No

2.1 EXIM Bank at a Glance 24
3.1 Major-Industry-wise 30
Investment
3.2 Return on equity 36
3.3 Return on assets 37
3.4 Net Income Growth 37
3.5 Net-non-interest margin 39
3.6 Profit earning assets 40
3.7 Earnings per share 41
3.8 Investment to deposit ratio 42
3.9 Capital Adequacy Ratio 43
3.10 Price Earnings Ratio 45

List of Figures

Figure No Name of Figure Page No

2.1 Hierarchy of EXIM Bank 19
Limited
2.2 Financial Information 23
2.3 General Investment 30
3.1 Investment Method 32
3.2 Return on equity 36
3.3 Return on assets 37
3.4 Net Income Growth 38
3.5 Net-non-interest margin 39
3.6 Profit earning assets 40
3.7 Earnings per share 41
3.8 Investment to deposit ratio 42
3.9 Capital Adequacy Ratio 43
3.10 Price Earnings Ratio 44

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 Investment Performance Analysis of EXIM Bank Limited

Abbreviations and Acronyms

EXIM Bank Export Import Bank

EXIM BAL EXIM Balance

ROA Return on Asset

ROE Return On Equity

NIG Net Income Growth

EM Equity Multiplier

PEA Profit Earnings Asset

NNTM Net Non-Interest Margin

CAR Capital Adequacy Ratio

EPS Earnings Per Share

NPM Net Profit Margin

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Investment Performance Analysis of EXIM Bank Limited

Chapter 1: Introduction

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1.1 Introduction
I had a few questions when I preferred this theme to work. Reports on internships under
the “Investment Performance Analysis of EXIM Bank Limited”. In today's modern and
globalized world, the business sector is highly competitive. It is more competitive with
financial institutions such as banks. Currently, regional banks play an important role in
the economic growth and development of the country. Everyone who is interested
wonders what the difference between traditional and Islamic banking is, and since Islamic
banking is proliferating in Bangladesh, it makes sense to do a little research. Islamic
banks can provide efficient banking services to countries supported by appropriate
banking laws and regulations. I am providing this study because I want to inform the
people of our country about the various procedures and laws regarding the domestic
investment sector of private banks. Even I am also interested of knowing how such bank
invest their capital to make profit of their organization.

1.2 Background of the Study

 The prospective topic is the Investment Performance Analysis of EXIM Bank
Limited.
 Data required for interpretation is much easier to obtain in the case of other
commercial banking business issues.
 Supervisors at work are extremely helpful when it comes to data collection and
interpretation. Very realistic problems and questions can arise from the topic-
related issues, which can be very beneficial for future career illumination.

1.3 Objectives of the Study

The principal objective of the study is to analyzing the investment performance of EXIM
Bank Limited.

The specific objectives of the study are:

 to know the investment activities of EXIM Bank Limited.

 to explore Investment performance analysis of EXIM Bank Limited.
 to explore their investment performance by ratio analysis.

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1.4 Methodology of the Study

Data were gathered from different sources to have clear understanding of investment
performance analysis of EXIM Bank Limited. The primary and secondary sources of data
are used to complete this study. This is an exploratory type of research.

Data have been collected from two sources.

 Primary sources
 Secondary sources

Data Period:
EXIM Bank Annual report from (2018-2022).

Statistical Tools:
To complete this study there is no use of statistical tool.

1.4.1 Primary Sources

 Export Import Bank of Bangladesh Limited, Chapainawabganj Branch Working at

the front desk on related topics.
 Personal communication with employees.
 Meeting with senior bank executives who is in the investment department.

1.4.2 Secondary Sources

Internal Sources

 Various brochures, instructions and bank files;

 Export-Import Bank Investment Sector.
 Various books and periodicals related to the investment banking sector.

External Sources
 Internet magazines.
 Various sites.
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 Investment Analysis Books of Siddique Sir.

Analysis Mode:

1. Objectives and Research Questions

 Clarity of Objectives: The study aims to analyze the investment performance of

EXIM Bank Limited in Bangladesh, focusing on investment activities, exploring
investment performance analysis & exploring their investment performance by
ratio analysis.
 Relevance of Research: The research aims to assess profitability, asset quality,
liquidity, and risk management effectiveness within the bank's investment
portfolio.

2. Methodological Approach

Data Collection Methods:

 Financial Statements: The study primarily utilizes EXIM Bank's audited

financial statements over a specified period.
 Secondary Data: Additional data sources include organization annual reports and
regulatory filings to provide context.

3. Analytical Techniques:

 Ratio Analysis: Utilizes standard financial ratios (ROA, ROE, NIG etc.) to
evaluate profitability and efficiency.

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1.5 Limitations of the study

 Time binding is the first limitations of the duration of the program.
 A major limitation is interviewing some of the top decision makers who are less
interested in sharing strategies and very busy schedules.
 Insufficient documents required by the investment department for comprehensive
research.
 Another limitation is of this report is the bank’s policy not to disclosure some data
and information.

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Chapter 2: Organizational Overview

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2.1 History of the Organization

Export Import Bank of Bangladesh Ltd. (EXIM Bank) was established in 1999 under the
leadership of Late Mr. Shahjahan Kabir, Founder Chairman who had been cherishing a
dream of floating a commercial bank which would contribute to the socio-economic
development of our country by facilitating industrialization, woman empowerment,
foreign trade, infrastructural development, income generation for the marginal, and above
all job creation. He had a long experience as a good banker. A group of highly qualified
and successful entrepreneurs joined hands with the founder chairman to materialize his
dream. Indeed, all of them had already established themselves in their respective
businesses as the most successful business personalities in the country with their
innovations, intelligence, talents, industriousness and honesty.

The nucleic personality of the group, Mr. Nazrul Islam Mazumder, who has now been
leading the Bangladesh Association of Banks (BAB), the apex forum of the commercial
banks of the country and is honored as one of the most illuminated business tycoons in
the garment business in the country, became the honorable Chairman after the demise of
the founder Chairman. Under his leadership, BAB has emerged as an effective platform
for exchanging views on problems being faced by the banking sector of Bangladesh and
for formulating common policy guidelines in addressing such problems.

EXIM Bank starts functioning from 3rd August, 1999 with its name as Bengal Export
Import Bank Ltd. On 16th November, 1999, it was renamed as Export Import Bank of
Bangladesh Ltd. with Mr. Alamgir Kabir as the Founder Advisor and Mr. Mohammad
Lakiotullah as the Founder Managing Director respectively with their long experience in
the financial sector of our country. By their pragmatic decisions and management
directives in the operational activities, this bank, in no time, earned a secure and
distinctive position in the banking industry in terms of performance, growth, and
excellence in management. Under the leadership of Mr. Lakiotullah, the Bank migrated
all of its conventional banking operation into Shariah Based Islami Banking in July 2004.

In the year 2006, Mr. Kazi Masihur Rahman became the Managing Director of the bank
when Mr. Lakiotullah left the bank after completion of his successful 7 years as MD. Mr.
Kazi served the bank for next five years. Under his leadership, the bank moved to a state-
of-the-art centralized IT platform with world renowned core banking software

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TEMENOS T24 running on two modern data centers along with alternate delivery
services like ATMs and SMS banking.

On 25th August, 2011, Mr. Md. Fariduddin Ahmed joined the bank as Managing Director.
With his long banking experience, EXIM Bank ensured full compliance in respect of
capital adequacy and asset quality. After his retirement, Mr. Ahmed continued his service
for EXIM Bank as Advisor from 27th July 2012.

An Islamic banking scholar Dr Mohammed Haider Ali Miah initiated a new era
succeeding Mr. Fariduddin Ahmed on 25th July, 2012 as the first ever Managing Director
from the EXIM staff. Under his far-sighted leadership, EXIM Bank not only achieved
excellence in performance in almost all arenas of its activities but also gained confidence
to place itself as one of the dynamic banks through delivering transparent and standard
banking services to the customers in a compliant manner. He had continued his successful
career for long 10 years until he retired on 15 September 2022.

With the commitments of concrete-built resilience of the bank and tailor-made services
for its dear customers, a foreign trade maestro Mr. Mohammad Feroz Hossain succeeded
Mr. Mohammed Haider Ali Miah as Managing Director & CEO on 16th September, 2022.
With these objectives, he has been overhauling and fine-tuning job processing and service
delivery mechanism for finer customer experience. At the same time, he has been
working on restructuring its asset and deposit composition for ensured sustainability. In
all, this forward-looking foreign trade veteran is instrumental in offering international
standard banking and service experience within national frontiers.

2.2 Vision, Mission, and Corporate Culture

2.2.1 Vision

The gist of our vision is "Together Towards Tomorrow". Export Import Bank of
Bangladesh Limited (Exim Bank) 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
constant pursuit of excellence in compliance with the Islamic Shariah. We believe the
advantages of Islamic economy can best be extended to the people with a technology-
driven modern banking system that upholds the Islamic values, and Exim Bank envisages

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making itself a perfect instance of that kind. The 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.

2.2.2 Mission

 Extracting the full benefit of Islamic banking system for its customers.
 Providing with quality financial services especially in Foreign Trade.
 Maintaining and upgrading a technology-based professional banking environment
 Maintenance of corporate and business ethics and transparency at all levels
 Sound capital Base
 Ensure sustainable growth for the honorable stakeholders
 Fulfillment of corporate social commitments, and above all, to add to the national
economy.

2.2.3 Corporate Culture

Organizational culture is considered as an essential component of business corporations

as it has the ability to bind organizational members together. The culture and values of
our bank have been proved as a source of competitive advantage for us and are acting as a
key component to establish the relationship between the bank and our employees and, in
turn, between our employees and our customers. Our culture and values also encourage
customers and employees to join us and stay with us.

EXIM Bank has also been able to improve organizational performance via improving the
performance of individual contributors and also recognizes existing talents to fill up the
higher vacancies within the organization or place them in the right position, wherein the
best use of their abilities can be ensured. Our culture promotes sharing of common goal
which ensures harmonious relationship in the working environment.

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2.3 Hierarchy of EXIM Bank Limited Bangladesh

Managing Director & CEO

Deputy Managing Director

Senior Executive Vice President

Executive Vice President

Senior Vice President

Vice President

Senior Assistant Vice President

Assistant Vice President

Senior Principal Officer

Principal Officer

Executive Officer

Officer

Figure 2.1 Hierarchy of EXIM Bank Limited

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2.4 Functions of the Department

The address of EXIM Bank is Munsur Bhaban, Holding 68, Baro Indara More, Chapai
Nawabganj 6300.Web: www.eximbankbd.com

Email: [email protected] SWIFT: EXBKBDDH

2.4.1 Services Provided by EXIM Bank are-

 Retail Banking Deposits

 Current Deposit
 Al- Wadia Current Deposit
 Mudaraba Special Notice Deposit
 Savings Account
 Mudaraba Saving Deposit
 Mudaraba Cash Waqf Deposit
 Term Deposits
 Mudaraba Term Deposit
 Mudaraba Education Deposit
 Deposit Schemes

o Mudaraba Monthly Savings Deposit Scheme

o Mudaraba Su-Grehini Monthly Savings Scheme
o Mudaraba Femina Monthly Savings Scheme
o Mudaraba Senior Monthly Savings Scheme
o Mudaraba Monthly Income Deposit Scheme
o Mudaraba Su-Grehini Monthly Benefit Scheme
o Mudaraba Femina Monthly Benefit Scheme
o Mudaraba Senior Monthly Benefit Scheme
o Mudaraba Multiplus Saving Scheme
o Mudaraba Super Saving Scheme
o Mudaraba Hajj Deposit Scheme
o Mudaraba Denmohor / Marriage Deposit Scheme
o Mudaraba EXIM Student Saver

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o Mudaraba Millionaire Deposit Scheme

o Mudaraba Kotipoti Saving Scheme
o EXIM RUHAMA- (Three Years' Probable Double Benefit Scheme)
o EXIM ZIADAH - (Five Years' Probable Triple Benefit Scheme)
o EXIM KRISHI - (Mudaraba Krishi Monthly Deposit Scheme)
o EXIM SHWAPNO - (Mudaraba Housing / Entrepreneurship Development
Scheme)
 Corporate banking
 Investments
 Foreign Exchange & Trade Finance Correspondent Banking
 Import Finance Export Finance
 Agri Banking
 EXIM Kishan
 Remittance
 Foreign Remittance
 EXIM Exchange Company (UK) Ltd.
 EXIM Exchange Company (Canada) Ltd. SWIFT
 International Operation

2.4.2 Departments of EXIM Bank, Chapainawabganj Branch

Chapainawabganj Branch has the following departments:

1. General Banking

a. Accounts Opening/closing.

b. Cheque book issue/Demand Draft/pay order.

Cash deposits/collection/receipts/utility bills.

c. Bill and clearing department.

d. E-corner.

e. Remittance.

2. Investment Department

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 Investment Performance Analysis of EXIM Bank Limited

a. General Investment
b. Women Entrepreneur and SME.

3. Foreign exchange/trade department.

a. Export.
b. Import.

2.4.3 Account opening

As the name implies this section deals with an opening (and closing) of various sorts of
account, as per client wish and demand. Cheque books are also issued through this
department. A client can choose what type of account he/she wants to open. Some of the
most common account types are:

 Alwadia Current deposit

 Mudaraba Savings deposit
 Mudaraba Short term deposit
 Mudaraba Term deposit
 Mudaraba Savings Scheme

Documents needed to open accounts vary from types of accounts, eg. Individual account
or proprietorship. Necessary documents needed to open an account are printed at the back
of respective forms.

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2.5 Financial Information

Sl. Particulars 2018 2019 2020 2021 2022

1 Authorized Capital 2000.00 2000.00 2000.00 2000.00 2000.00

2 Paid-up Capital 1412.25 1412.25 1412.25 1447.56 1447.56

3 Statutory Reserve Fund 972.09 1070.60 1176.01 1251.95 1374.34

4 Deposits 30078.66 35581.65 39530.83 42170.60 42704.41

5 Investment (General) 30503.61 34328.74 39291.97 42820.49 45254.78

Investment (Shares & Securities Exclu.

6 2353.14 4208.96 3886.85 4132.30 3320.63
Subsidiaries)

7 Foreign Exchange Business 36653.34 37791.07 34442.90 49787.93 53290.68

a) Import Business 18953.04 20080.15 17782.52 28009.30 25013.78

b) Export Business 17173.13 17065.26 16129.02 21197.45 27649.82

c) Remittance 527.17 645.66 531.36 581.18 627.08

8 Operating Profit 686.39 691.99 631.36 564.36 676.13

9 Investment as % of total Deposit * 93.78% * 89.55% * 91.14% * 88.02% * 95.47%

10 No. of Foreign Correspondent 394 396 386 389 392

11 Number of Employees 2964 2956 2910 3235 3351

12 Number of Branches 123 130 131 140 147

13 Return on Assets after tax 0.65% 0.61% 0.61% 0.37% 0.66%

14 Return on Equity (ROE) 8.22% 8.48% 9.33% 6.17% 11.41%

Figure 2.2 Financial Information of EXIM Bank Limited

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2.6 EXIM Bank Limited at a Glance

Table 2.1 Financial Inform EXIM Bank Limited at a glance

Type Public

Industry Banking

Incorporated Activity Started 2nd June 1999, 3rd August 1999

Founder: Late Mr. Shahjahan Kabir

Chairman: Mr. Nazrul Islam Mazumder

Managing Director: Mohammad Feroz Hossain

Services Banking, Financial Services

Number Of Employees 3351 (2022)

(Source: https://www.eximbankbd.com/report/Financial_Highlights)

2.7 Shahriah Council of EXIM Bank Limited

The Bank's Board members has established a Shahriah Supervisory Board. Their
responsibility is to oversee the entire bank's transactional procedures and ensure Shahriah
compliance. This Board is made up of the following individuals, led by its Chairman: In
summary, the Shahriah supervisor's responsibilities include responding to questions from
the Bank's administration, staff members, shareholders, depositors, and customers,
following up with Shahriah auditors and providing guidance, submitting reports and
remarks to the Fatwa & Shahriah Supervision Board and the administration, involved in
the Bank's training programs, supervising the All-Islamic magazine, and handling the
duty of being the Genera.

2.8 Shahriah Auditing

This is the civil supervisory aspect that shapes the main feature of the bank. Its existence
is a requirement of Shahriah Supervision procedures. One of its primary responsibilities is
to ensure Shahriah compliance in the Bank's transactional procedures in accordance with
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Fat was issued in this regard, under the supervision of the Shahriah Supervisor. The
Shahriah auditor is in charge of reviewing the Bank's transactional procedures throughout
the year to ensure that staff members and divisions have followed the restrictions,
guidance, and Shahriah laws issued by the Fatwa and Shahriah Supervision Board,
forums, and banking conferences. In addition, the Fatwa & Shahriah Supervision Board
certifies all contracts that state a right for the bank or an obligation on the bank.

2.9 Banking with Shahriah Principles

Since July/2004, Export Import Bank of Bangladesh Limited has been the first bank in
Bangladesh to convert all of its conventional banking operations to Shahriah-based
banking. We provide banking services to both Muslims and non-Muslims, giving our
customers options and flexibility in their savings and investments. Our products have
been approved by our Shahriah Board, which is made up of veteran Muslim scholars from
our country who are experts in all aspects of Islamic finance. As a result of the Bank's
sole focus on Shahriah compliant investments, Noriba is committed to strict adherence to
the requirements of the Shahriah Board. With the approval of the Noriba Shahriah Board,
Noriba experts specifically design each of the Bank's investment vehicles.

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Chapter 3: Investment Performance Analysis of EXIM Bank

Limited

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3.1 What is Investment?

In finance and business, investment is income or Capital gains. An investment is an asset
or item acquired to generate income or capital gain. Investing has the tint of long-term
holding, as opposed to speculation in which assets are purchased to profit from short-term
price movements. In practice, there is no clear definition of the difference between
investing and speculation. Expected return on investment, or projected return on
investment, is a measure of the attractiveness of an expected or realized investment. In
economics, investment refers to a company's capital expenditures in an economy or
economic model. In this context, investment differs from consumer spending, government
spending and net exports.

3.2 Investment Objectives of EXIM Bank Limited

The objectives and principles of investment operations of the Banks are:
 Investment funds strictly in accordance with the principles of Islamic Sharia.
 Diversify the portfolio by investment size, sector (public and private), economic
purpose, and geographic region including securities, industrial, commercial and
agricultural.
 Professional evaluation of investment proposals, sound investment approval, close
and continuous supervision and monitoring ensure the mutual benefit of both
banks and investment client
 Invest taking into account the country's socio-economic needs.
 Increase potential investors through productive investment based on participation.
 Funds a range of development programs aimed at reducing poverty, generating
income and creating jobs to accelerate sustainable socioeconomic growth and
community recovery.

3.2.1 Investment Ways of EXIM Bank Limited

 One of them is head office investment. Headquarters investments consists of

Bangladesh banking investments, security investments and some foreign
investments.
 Another one is finding with the aid of using the branches and branch investment
includes funding as loans, advances and ensures business.
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Head Office Investments

Bangladesh Bank requires that all commercial banks make deposits with Bangladesh
Bank, which is 15% of the total deposit amount. Investments in the head office of the
Export-Import Bank consists of investments in government bonds, prize money, stocks,
promissory notes and other securities. In short, their government. Securities generally
generate limited returns, but are highly liquid with credit risk and negligible market risk.

Branch Investments
Branches invest in a variety of sectors, including loans and advance payments. The
branch of a bank that processes these loans and loans is called the credit department. Now
let's talk about the investment department of Exim Bank Limited. Exim Bank Limited
invests based on a profit-and-loss distribution system in accordance with the principles of
Islamic Sharia. Making a profit is not an emphasis and is not the only motive in achieving
the public good and creating employment opportunities. In addition, to diversify our
investment portfolio, we joined the investment business under a special system during the
year.

3.3 Investments areas of EXIM Bank Limited

Islamic Shariah, a leading second-generation commercial bank operated by EXIM Bank.
It offers/provides a wide range of banking services, including a wide range of deposit and
investment products, currency exchange, remittance and other ancillary services
supported by the most sophisticated and modern information technology and professional
management. The bank's investment portfolio consists of a variety of sectors, with all
nationally defined sectors/businesses and industries. The bank prioritizes/works to
preserve and maintain high quality assets, and strives to retain good customers by treating
customers as true business partners through friendly customer relationship management
and financial advice. At the same time, it strives to attract new clients with broad potential
to diversify its existing portfolio and explore new potential business areas, regulated by
global trends as well as the changing business growth of the national economy. By
applying the above methods/processes, banks have had great success in creating well-
organized and structured investment portfolios and minimizing overall portfolio risk.
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The main areas of investment activity are concentrated in the following sectors/areas:

 Ready Made Garments

 Hospitals & Clinics
 IT Related business
 Agricultural and Agricultural developments items
 Fishing and fishing business promotion
 Telecommunication
 Transportation and communication
 Forestry and furniture
 Construction business and housing development
 Leather and leather goods
 Plastic and other synthetics
 Entertainment
 Photography
 Ceramic
 Hotel & tourism
 Warehouse and container services
 Printing and packaging
 Gunning and Bailing
 Pathological Laboratories
 Cold Storages
 Horticulture- Flower growing and marketing
 Food and oil processing plants

Other admissible trading and intermediaries

Other admissible trading and intermediaries.

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3.4 Major Industry-wise Investment

Investment diversification is one of the major ways of minimizing the overall risks. To
minimize the risk, Bank is continuing its efforts to diversify its product in various
industries. Major industry-wise investment of the Bank is presented in the table below:

Table 3.1 Major Industry-wise Investment

SL. No. Particulars 2022 2021 Growth

1 Garments 52,625.06 52,839.56 -0.41%

2 Textile 23,396.25 22,731.92 2.92%

3 Agrobased Industry 41,950.20 27,162.93 54.44%

4 Other Industry 128,411.37 130,069.72 -1.27%

5 Trading and others 206,164.99 195,400.78 5.51%

Total 452,547.87 428,204.91 5.68%

500,000.00
452,547.87
450,000.00 General Invesment in Million Taka428,204.19
400,000.00
343,287.39
350,000.00
305,306.08 312,919.66
300,000.00
250,000.00
200,000.00
150,000.00
100,000.00
50,000.00
0.00
2018 2019 2020 2021 2022

Figure 2.3 General Investment

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3.5 Major Investment Categories

The various investment methods in the Export-Import Bank include:
1. Murabaha:
Murabaha is an Islamic investment system in which banks purchase real estate
with free and clear ownership. This is an interest-free loan that is considered and
is a form of loan sale permitted under Sharia law.
2. Bai-Muazzal:
Bai-Muazzal is an agreement between a buyer and a seller, in which the seller
sells to the buyer certain goods permitted by Islamic Sharia at an agreed upon
fixed price to be paid in a fixed payment over a set period of time.
3. IzaraBilBaia:
IzaraBilBaia is an investment method in which banks must invest in the purchase
of equipment, equipment for long-term asset lines, transportation, land, buildings,
etc. under contract. Bank rules and regulations.
4. Wazirat Bill Wakala:
Wazirat Bil Waqala: Wakala is an Islamic financial term for an agent contract,
wakala is a non-binding contract, and either the agent or principal may withdraw
from this agent agreement at any time upon agreement between the parties.
5. Quard:
It is a method of providing a financial loan on condition that the principal is repaid
in the future without increasing the principal.
6. Local Documentary Bill Purchased:
Local supporting documents obtained: Payments as opposed to documents fall
under this section in lieu of selling goods to a local export-oriented industry
treated as export and denominated in local currency. This short-term liability
depends on the receipt of your account.
7. Foreign Documentary Bill Purchased:
This section includes payments made to customers through the purchase of
foreign documented bills of exchange. These short-term investments are regulated
by export documents.

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3.6 Investment Method

Figure 3.1 Investment Method

(Source: website EXIM Bank Limited Images)

3.7 General Lending principles of EXIM Bank Limited

Loans to merchants, businesses and industrial enterprises are major banking business.
Banks get most of their revenue from interest and discounts on their loans. Nevertheless,
the lending business is not without certain risks. Because it relies heavily on borrowings,
bankers cannot afford loans. Excessive loan risk. Therefore, banks follow very prudent
policies when lending money and conduct their business according to well-known reliable
lending principles to minimize risk. In credit management practice, banks generally
follow the following lending principles:

 Safety

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 The Purpose
 Profitability
 Liquidity
 Dispersal/Diversification
 National interest/social benefit

3.8 Investigation for investment

Loans are one of the most important functions of a bank. So, this is the most important. It
is important for banks to choose borrowers they can trust. To do this, banks establish
mechanisms to help identify creditworthy borrowers. This section describes some of the
mechanisms that banks use for this purpose.

Form for Investment Application

An investment application will generally include the group name, foundation, nature and
place of business, year of establishment, borrower's experience with this line, information
about assets and liabilities, purpose of loan, amount required, length of loan required,
nature of collateral offered; Name of current banker with payment source, detailed loan
description and other opportunities. This is the first step to getting to know your borrower.

Personal Interview

The bank will arrange an interview with the borrower to learn more about the borrower's
specific needs, prospects for wise use of funds, solvency, and suitability of the collateral
offered. Highlights from the interview: his business, all legal Documents required for
business operation (Memorandum and Articles of Incorporation, trade and import permit),
capital related to working capital, business experience, financial reporting results of at
least 3 years, investment amount and period, loan purpose, repayment source, payment
terms, proposed Secure Documents, Available Fee Types. Interviewing a bank employee
attempts to analyze and judge the correctness of various statements and documents of
prospective borrowers and arrives at a balanced opinion about the acceptability or
inadequacy of the offer. If, after the initial interview, the commercial lender determines
that the loan request meets the basic criteria for a bank loan, the next step is to conduct an

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in- depth investigation based on the customer and the documents received from the bank
itself and externally.

3.9 Investment Recovery

The bank has a recovery department (EB) under CRM. He manages the account himself
with a permanent account. Damage (hazard class below Standard (6)).

The main features of RU:

 Define an action plan/strategy for account recovery.

 Take advantage of every opportunity for maximum recovery
 Ensure adequate and timely preparation for investment losses based on actual and
expected losses.
 Regularly check the score of 6 or less

3.10 Investment Assessment and Risk Management

 Investment Assessment
A thorough mortgage and threat evaluation is performed previous to the granting
of loans and as a minimum yearly thereafter for all facilities. The outcomes of this
evaluation are provided in a mortgage inspiration to Head of Loan Division for
approval. The guiding concepts for a financial institution authentic at the same
time as accumulating and recording statistics are to stay uninfluenced through
extraneous concerns and secondly, he continues touch with all people who may be
of assistance.

The following steps for finishing touch of Loan Risk evaluation for every facility are
observed through the financial institution alongside the guidelines/commands given in
Head Office circulars issued from time to time.

 Risk Management
The following risk areas are addressed for risk management:
 Borrower Analysis: Major shareholders, management and group of
subsidiaries are evaluated. Any issues related to insufficient depth of
management, complex ownership structures or intra-group transactions are

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resolved and risks are reduced. Banks collect credit information on

borrowers' past credit conditions from CIB, and exchange credit
information or opinions with other banks. CIB reports reflect/include the
names of all creditors with credit lines, limits and outstanding balances.
 Industry Analysis: Key risk factors to the borrower's industry are
assessed. Determine the borrower's strengths and weaknesses by
considering the borrower's position in the industry, general issues in the
industry, or any issues related to competitive forces, and comparing it to
competitors.
 Supplier/Buyer Analysis: Customer or supplier concentration is assessed.
Any issues relating to the borrower's position in the industry, general
industry interests, or competitive factors are considered and the borrower's
strengths and weaknesses are identified compared to competitors.
 Historical Financial Analysis: An analysis of the borrower's historical
financial statements for a minimum of three years is presented. If the
equity is held by a company guarantor, the guarantor's financial statements
are analyzed. The analysis concerns the quality and sustainability of
income, cash flow and the sustainability of the borrower's balance sheet.
Specifically, it analyzes cash flow, leverage, and profitability.
 Project Financial Performance: For term loan (one year or longer
maturities) proposals, projections of the borrower's future financial
performance are provided, along with an analytical indication of the
adequacy of cash flows to repay the debt. If the expected cash flow is not
sufficient to repay the debt, the loan is not provided.
 Accounts Conduct: For existing borrowers, past performance is assessed
to meet repayment obligations (trade payments, cheques, profits and
principal payments, etc.).
 Mitigating Factors: Mitigation risk factors identified in the credit rating
have been identified. Potential risks include margin stability and/or
volatility, high leverage (leveraged/debt equity), overstock or debtor
issues, rapid growth, acquisition or expansion; new business line/product
expansion, leadership change or succession issues; customer or supplier
focus; The opacity of industry problems.
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3.11 Ratio Analysis

Ratio analysis is type of financial statement that is use to access the company’s financial
health in few areas.

3.11.1 Return on Equity (ROE) of EXIM Bank Limited

Table 3.2 Return on Equity (ROE) of EXIM Bank Limited

RETURN ON EQUITY CAPITAL (ROE)

2018 8.22%
2019 8.48%
2020 9.33%
2021 6.17%
2022 11.41%

Return On Equity
12.00% 11.41%

10.00% 9.33%
8.22% 8.48%
8.00%

6.17%
6.00%

4.00%

2.00%

0.00%
2018 2019 2020 2021 2022

Figure 3.2 Return on Equity

ROE- That indicate how an institution earn profit by using their shareholders equity. The
higher ROE is better for institution. Above 5-year data we can see maximum ROE came
from 2018 and the rate is 8.22% and next year the rate increases to 9.33%. In, the year
2021 the rate decreases 6.17%. Behind these decreasing statistics the reason is bank

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EXIM could not utilize their shareholder capital properly. If they did it properly the ROE
might increase every year.

3.11.2 Return on Assets (ROA)

Table 3.3 Return on Assets

Return on Assets (ROA)

2018 0.65%

2019 0.61%

2020 0.61%

2021 0.37%

2022 0.66%

Return On Assets (ROA)

0.70% 0.65% 0.66%
0.61% 0.61%
0.60%

0.50%

0.40% 0.37%

0.30%

0.20%

0.10%

0.00%
2018 2019 2020 2021 2022

Figure 3.3 Return on Assets

ROA- It refers that how much an institution can make their profit by using their asset. So
maximum ROA is better for an institution. Above 5 years data here we can see in 2018,
the ROA is .65%. In the next year that rate is decreased & the rate is 0.61%. But next 3
year this rate was decreased because in the level of increasing asset rate is nor similar
with net profit. The asset gain increased on the year 2022 at 0.66%.

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3.11.3 Net Income Growth (NIG)

Table 3.4 Net Income Growth

Net Income Growth (NIG)

2018 2.49%

2019 2.13%

2020 18.19%

2021 -23.40%

2022 72.56%

Net Income Growth

80.00%
72.56%

60.00%

40.00%

20.00% 18.19%

2.49% 2.13%
0.00%
2018 2019 2020 2021 2022

-20.00%
-23.40%

-40.00%

Figure 3.4 Net Income Growth

The net income growth refers to the increase or decrease of a company net income over a
given period of time. In this chart here we can see that in 2022 the net income growth was
the highest among all the past four years ratio. In 2021 the ratio got decreased because of
company’s less income over given a given period of time.

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3.11.4 Net Non-Interest Margin

Table 3.5 Net Non-Interest Margin

Net Non-Interest Margin (NNIM)

2018 0.62%

2019 0.55%

2020 0.58%

2021 0.39%

2022 0.68%

Net Non Interest Margin

0.80%

0.70% 0.68%
0.62%
0.60% 0.58%
0.55%

0.50%

0.39%
0.40%

0.30%

0.20%

0.10%

0.00%
2018 2019 2020 2021 2022

Figure 3.5 Net Non-Interest Margin

The non interest margin is a measurement tool that measures the value of non-interest
revenue such as fees and service charges. The difference between non-interest income and
non-interest expenses divided by total earning assets is known as the non-interest margin.

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Here we can see in the year 2022, the NNIM ratio is the highest. The year’s 2018, 2019,
2020, 2021 4-year ratio cannot beat the year 2022.The reason is the non-interest expenses
and asset is gradually increase but non-interest income cannot increase at the same time.
But in 2018 the non- interest income again increases as a result the NNIM ratio was
increase in this year.

3.11.5 Profit Earning Assets

Table 3.6 Profit Earning Assets

Profit Earning Assets (Amount in million taka)

2018 317,890.61

2019 372,671.35

2020 418,621.61

2021 455,719.85

2022 473,521.45

Profit Earning Assets

500,000.00 473521.45
455719.85
450,000.00 418621.61
400,000.00 372671.35
350,000.00 317890.61
300,000.00
250,000.00
200,000.00
150,000.00
100,000.00
50,000.00
0
0.00
2018 2019 2020 2021 2022

Figure 3.6 Profit Earning Assets

A profit earning asset any which delivers returns with significant effort on its owner’s
part. In this chart we can see that the organization asset is increasing year by year.

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3.11.6 Earnings Per Share (EPS)

Table 3.7 Earnings Per Share

Earnings Per Share

2016 1.61

2019 1.65

2020 1.94

2021 1.49

2022 2.57

Earnings Per Share

3

2.57
2.5

2 1.94

1.61 1.65
1.49
1.5

0.5

0
2018 2019 2020 2021 2022

Figure 3.7 Earnings Per Share

The fraction of a company's profit given to each outstanding share of common stock is
called earnings per share (EPS). The more company's earnings per share, the more
profitable it is. In this graph here we can see in 2018 to 2020 EPS was gradually increase
but in 2021 per share price was huge fall but in 2022 the share piece again increases. So,
we can say in the year 2022 is the best for the shareholder and the bank as well.

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3.11.7 Investment to Deposit Ratio

Table 3.8 Investment to Deposit ratio

Investment to Deposit Ratio

2018 93.78%

2019 89.55%

2020 91.14%

2021 88.02%

2022 95.47%

Investment to Deposit Ratio

98.00%

96.00% 95.47%

94.00% 93.78%

92.00%
91.14%

90.00% 89.55%

88.02%
88.00%

86.00%

84.00%
2018 2019 2020 2021 2022

Figure 3.8 Investment to Deposit ratio

The investment-to-deposit ratio is a measure of the proportion of funds invested by a bank

in various investment opportunities compared to the total deposits received by the bank.
In the chart the year 2022 is the highest increase in the investment deposit ratio of
95.47%.

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3.11.8 Capital Adequacy Ratio

Table 3.9 Capital Adequacy Ratio

Capital Adequacy Ratio

2018 10.88%

2019 12.55%

2020 13.27%

2021 14.36%

2022 13.86%

Capital Adequacy Ratio

16.00%
14.36%
13.86%
14.00% 13.27%
12.55%
12.00%
10.88%
10.00%

8.00%

6.00%

4.00%

2.00%

0.00%
2018 2019 2020 2021 2022

Figure 3.9 Capital Adequacy Ratio

The capital Adequacy ratio is measure of how much capital a bank has available reported
as a percentage of a bank risk’s credit exposures. The purpose is to establish that bank
have enough capital on reserve to handle a certain number of losses, before being at risk
for becoming insolvent. In the five years ratio chart 2021 year has highest (CAR) capital
on reserve. Because of the (COVID) pandemic the bank had less investment in business
and capital got reserved.

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3.11.9 Price Earnings Ratio (times)

Table 3.10 Price Earnings Ratio (times)

Price Earnings Ratio (times)

2018 7.15

2019 5.98

2020 5.93

2021 8.52

2022 4.05

Price Earnings Ratio

9.00% 8.52%

8.00%
7.15%
7.00%
5.98% 5.93%
6.00%

5.00%
4.05%
4.00%

3.00%

2.00%

1.00%

0.00%
2018 2019 2020 2021 2022

Figure 3.10 Price Earnings Ratio (times)

The price-to-earnings (P/E) ratio measures a company's share price relative to its earnings
per share (EPS). In the ratio chart we can see in the year 2021 the bank (PER) is much
higher than the other years. The bank made a much better profit in the year 2021. But in
the year 2022 ratio decreases.

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Chapter 4: Internship Experience

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4.0 Internship Experience

In this period of my internship at EXIM Bank of Bangladesh Limited, Chapainawabganj
Branch. The internship period was for almost three months.

I performed like a regular employee or assisted in a supporting role. My observation and

responsibilities were in General banking department like I learned the procedures to open
various account & different types of DPS, filling this account or DPS forms.

I worked with Md. Rakibul Hasan, Assistant Officer of EXIM Bank Limited,
Chapainawabganj Branch who manages the front desk.

4.1 Duties and Job Responsibilities as an Intern

Internship program is a mandatory requirement for any student of BBA in EXIM Bank
Agricultural University. I was an intern at EXIM Bank Limited, Chapainawabganj Branch
and assigned to work in the general banking department of the bank. In this three month
of internship program, I have learned various procedures regarding general banking and
other financial activities of EXIM Bank. Moreover, each and every employee of EXIM
Bank were cooperative and friendly. They helped me the entire period of my internship.
During my internship period, I worked in different departments. As an intern my activities
were as follow-

4.2 Skills Applied

Account Opening: I worked mostly in the general banking department of EXIM Bank
Limited, Chapainawabganj Branch. These different types of accounts are- Al wadia,
Mudaraba Savings Deposit, Mudaraba Term Deposit receipts etc. Moreover, my
immediate supervisor helped me to know what amount of interest rate customers will get
from these different kinds of accounts, how to deal with customers versatile questions
regarding various accounts opening, how to find desired cheque books from the bundle
according to customers' requirements, needs and many more.

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Filling up Pay Orders: Issuing pay orders were a part of daily activities of EXIM Bank.
I issued more than 2 or 3 pay orders every day. Initially customers were supplied with a
pay order Rem. In the pay order slip, there were spaces where the customer needed to
write his/her account same, account number, amount of money etc. After filling the form
customers were requested to pay the money in cash or cheque. After that an officer in
charge issued pay order

Cheque Requisition Form: When a customer opens an account in Exim Bank, the
account opening form comes with a cheque requisition slip. In this slip, a customer has to
write the name of the account holder, account number, page numbers the customer wants
in the cheque book c. Once a new cheque book is received in the branch, I used to put
seal of the branch on every page if all new cheque books. After completing it, an in-
charge officer would put his/her sign on the seal. Then, I used to record it in the cheque
book issue register mentioning several things like-account name, account number and the
number of pages included in the cheque books etc.

Checking Bank Balance of the Customers: If any customer requires to know their bank
balance, then as an intern it was my responsibility in the bank to check their balance. For
current balance enquiry MIS Portal Reporting System of EXIM Bank are used where one
have to insert the account number of the customer and then the current A/C balance will
be shown.

Printing Necessary Documents: I used to send e-mails to other branches of EXIM Rank
and also attached important documents with it. Moreover, to help the officials I used to
print various documents and attachments regarding bank account opening issue. These
documents were Important to fill for opening an account in the bank.

4.3 Challenges Faced

This was the first time I worked in any organization. It was totally a new experience for
me. During the internship period I faced several problems. They are mentioned below-

a) Knowing the people in charge and hierarchy of EXIM Bank Limited;

b) Understanding my duties and responsibilities, what I could or could not do as an
intern of this bank;

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c) In filling up customer names, numbers, address I was over concerned at first, since
there was no scope of overwriting and mistake;
d) The internship program of EXIM Bank is non-paid, but unfortunately the work
environment outweighs the payment issue.

4.4 New Skills Developed

The employees of EXIM Bank, were very polite and friendly. They helped me to adjust
quickly with the bank environment. Doing my internship in this Bank helps me to know
the banking industry and their activities. Since my focus was in general banking, so I was
more involved with that than another department of the bank. Now, it is very clear to me
how EXIM Bank Limited operates their activities on the ground of general banking in this
country. Moreover, I believe that this internship experience will help me much to build up
my future career. My learned experience is as follows-

 I learned the procedures to open various accounts in EXIM Bank Limited;

 I learned how EXIM Bank provides the information to their clients;
 Verifying signature in different documents were one of the learnings from the
bank;
 l experienced the formalities to issue a pay order and cheque book;
 Learned about the workplace environment;
 I learned how to maintain office etiquette and how to behave with supervisors and
staffs;

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Chapter 5: Findings and Discussions

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5.1 Findings
1. Earnings per share (EPS), and Net Non-Interest Margin (NNIM) are doing well
every year and contribute their excellent performance.
2. Profit Earnings Asset (PEA) and Net Investment Growth (NIG) ratios
performance was expected good on year 2020.
3. Return on Equity (ROE) and Return on Assets (ROA) have no consistency in their
performance.
4. Capital Adequacy (CAR) and Investment to deposit Ratio these two ratios are
giving positive impact on the bank.
5. EXIM Bank is a modern banking institution. It is expected that EXIM Bank Ltd
will be able to maintain its growth trend and thus overcome the performance of
the investment to earn more profit.

5.2 Discussions
Data shows the evidence that the profit for EXIM Bank Limited comes from mainly three
sources-
a) Profit from Bai-Muazzal and Murabaha Investment.
b) Rent from Izara Bill Baia.
c) Bank Guarantee Commission or L.C. Commission.

 Loan disbursement rate for EXIM Bank Ltd has been found quite static over the
last few years (80% of the total deposit).
 EXIM Bank Ltd is undoubtedly one of the most successful commercial banks in
Bangladesh in terms of loan recovery rate (nearly 98% recovery rate). One of the
major reasons behind this achievement is the presence of very low amount of
classified loan (1.82%). Whenever the percentage of the classified loans exceeds
5%, EXIM Bank Ltd responses by reducing the amount of large loan
disbursements.
 As EXIM Bank Ltd is mainly an export-import based bank, it is interesting to find
out how they adjust to the fluctuation of the foreign exchange rates. Recently with
the constant devaluation of Taka, import has become more expensive than before.
It has been found that this devaluation of Taka has been followed by the reduction
of the number of outstanding L.C.s by EXIM Bank Limited. They have also
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started charging higher commission charges from the importer. Thus, the stability
of profits is being achieved by putting the importers into more adverse position.
 EXIM Bank Ltd strictly follows Customer Relationship Management (CRM)
guidelines which are provided by Bangladesh Bank.

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Chapter 6: Recommendation and Conclusion

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6.1 Recommendation
EXIM bank has achieved good results in terms of profitability and growth rate of
deposits, loans and advance payments in a short period of just 5 years, despite fierce
competition in the industry. Banks must constantly update their lending operations. For
now, the numbers are good, but the trend on the chart indicates that if banks aren't more
careful in their lending process, they could be plagued with massive bad loans.

 Capital Adequacy Ratio (CAR) and Net Income Growth (NIG) ratios should
overcome their performance for giving more positive impact on the bank.
 Return on Equity (ROE) and Return on Assets (ROA) they should bring
consistency in their performance.
 Price Earnings Ratio (PER) should be increased.
 Earnings Per Share (EPS) should be increased.

6.2 Conclusion
During the entire practical orientation of EXIM bank, we can confidently state certain
conclusions from the practical implementation of the procedures we work with clients.
Everyone should believe that the implementation will harmonize with most bank thinkers.
It is clear that computerized transactions are essential to building an efficient and
effective banking system at the highest level.

The success of a banking business depends primarily on effective lending. The smaller
the loan loss amount, the more income you will receive from your credit operations. The
greater the income through credit business, the greater the profits of the Export-Import
Bank, and the success of credit finance lies there.

In fact, Exim Bank is a private bank with a small market share in the industry. Although it
is a second-generation bank, it faces government deposit regulations, but is in an
advantageous position to penetrate the market. With reliable and agile management, good
corporate governance and modern automation technologies, Exim is expected to climb the
ladder of success over the next few years, if it takes into account hidden threats, addresses
weaknesses appropriately and explores opportunities.

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References

Webpages:

EXIM Bank Limited. (2019). Awards & Achievement. Retrieved from eximbankbd.com:
https://www.eximbankbd.com/about/achievements

Access Date: 25/04/2024

EXIM Bank Limited. (2019). Board of Directors. Retrieved from eximbankbd.com:

https://www.eximbankbd.com/governance/Board_of_Directors

Access Date: 25/04/2024

EXIM Bank Limited. (2019). Corporate Social Responsibilities. Retrieved from

eximbankbd.com: https://www.eximbankbd.com/about/csr

Access Date: 26/04/2024

EXIM Bank Limited. (2019). History of EXIM Bank. Retrieved from eximbankbd.com:
https://www.eximbankbd.com/about/about_exim_bank

Access Date: 27/04/2024

EXIM Bank Limited. (2019). Operational Area of the Bank. Retrieved from
eximbankbd.com: https://www.eximbankbd.com/about/operational_area

Access Date: 27/04/2024

EXIM Bank Limited. (2019). Retail Banking. Retrieved from eximbankbd.com:

https://www.eximbankbd.com/deposit Access Date: 28/04/2024

EXIM Bank Limited. (2019). Vision, Mission, Corporate Culture. Retrieved from
eximbankbd.com: https://www.eximbankbd.com/about/mission Access Date: 29/04/2024

The Wall Street Journal. (n.d.). Finance. The Wall Street Journal. Retrieved from
https://www.wsj.com/finance?mod=nav_top_section

Access Date: 03/05/2024

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The Wall Street Journal. (n.d.) EXIMBANK – Balance Sheet. The Wall Street Journal.
https://www.wsj.com/marketdata/quotes/BD/XDHA/EXIMBANK/financials/annual/
balance-sheet

Access Date: 04/05/2024

Book

Siddiquee, M. N. A., & Hossain, M. S. (2017). Investment Analysis of EXIM Bank

Limited: A Comparative Study with Other Commercial Banks in Bangladesh. Journal of
Management and Science, 7(2), 27-43.

Annual Reports Pdf

Annual Reports of EXIM Bank Limited Bangladesh (for relevant years, e.g.,2018,2019,
2020, 2021,2022).

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