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Chapter 1
1.1 Introduction of the study :
Economy of Bangladesh is still surviving to get rid from the worlds most underdeveloped
economies. One of the reasons may be its underdeveloped banking system. Since 1990,
Bangladesh government has taken a lot of financial sector reforming measures for making
financial sector as well as banking sector more sound and transparent, a formulation and
implementation of this reform activities have also been participated by different international
organization like World Bank, IMF etc.
People in a global world are trying to spread out their resources over the world. As one country
is not self- sufficient, they need to think more to meet their demands. Though Bangladesh is an
underdevelopment country, natural resources and labor are very cheaper than some of other
countries. So, local and foreign investors are very interested to make a profitable investment in
our economy.
Foreign direct investment (FDI) is increasing day by day. In the calendar year 2005, FDI was US$
845million against US$ 460 million in the year 2004. In terms of Foreign Remittance, this is also
a good position compared to previous year. Inward remittance grew by 28.8% (US$297 million)
compared to 18.8% (US$ 160 million)
Commercial Banks are the vital sector by which the foreign exchange transactions are effected
or settled. Now a days world is surviving in a commercial age. Banks are working as a media to
help people doing businesses. On the other hand no country is self sufficient. One country cant
produce all the things they need for consumption. They have to depend upon other countries
to meet these requirements. They import goods which they cant produce and export those
which are in abundance in their country. But there is uncertainty in these international
transactions.
On the other side, the issues of remittances create increasing amount of attention in recent
years for the significant contribution in our national economy by increasing our foreign
currency reserve. Our government gives most emphasis on foreign remittance to keep macro
economic balance. To increase the flow of foreign remittance govt. established Expatriate
welfare ministry and take different incentive program through nationalized commercial bank.
Influenced by this program, all the commercial banks try to attract expatriates with their
offerings for remitting money. In the recent survey it has been found that some banks manage
this in an efficient manner but some are not. Dhaka Bank Limited has taken up several strategic
initiatives for growth of remittances from expatriate Bangladeshis by opening its own exchange
company.

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1.2 Objective of the study:
The Objective of the study is to analyze Remittance, Maintenance and Foreign Exchange
Operations of Dhaka Bank Limited. Dhanmondi Branch.
The specific objectives of the project are as follows:
1. To show the foreign operations of Dhaka bank limited
2. To know deeply about remittance and different foreign exchange house
3. To learn about the procedure of handling inward remittances
4. To make Analysis of inward wage-earners remittance management of Dhaka bank
limited comparing with other local and multinational banks.

1.3 Statement of the Problem:
Wage earners is the newly services provided by the banks in Bangladesh. They take it only as
services for their customers only, not a profit oriented services the bank itself. But it would be a
profitable portion of their operational profit. Banks wants to introduce the payment system
both inward and out ward by their banking channel. They want to stop others system for
money transactions. So for the topic has been design & my topic is: Analysis on wage-earners
remittance, maintenance and foreign exchange operations of Dhaka bank limited.

1.4 Scope of the study :
The scope of the project is very limited since we are working with a particular Bank only which
is Dhaka Bank Limited. So, the results of the report may not be reflective of the total industry
scenario. The study would focus on the following areas of Dhaka bank limited:
1. the way of managing their inward remittance
2. helping hand of different exchange house
3. comparative assessment on the management system of different local and
multinational banks
4. Ultimate customer satisfaction on remittance management system of Dhaka bank
limited.



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1.5 Methodology of the study :
Selection of the study area
Selection of the study area is an important step for the analysis on wage earners remittance.
The researcher himself conducted a preliminary survey in Head Office of Dhaka Bank Limited to
achieve the objectives of the study.

Period of study
The data collection was conducted at 8
th
July to14
th
July 2012.
Selection of sample and sampling technique
It is not possible to make a survey covering all customers and officials of bank. For this reason,
sampling was done to select representative respondent to minimize time and cost of the study.
Achieving the ultimate objectives of the study, 42 respondents were selected randomly.
Preparation of survey schedule
Preparation of survey schedule is an important part of the study. A comprehensive survey
schedules were set to collect necessary information from the respondents.
The questionnaires were designed with the following specific head
General information about the customers on the perspective of bank
Reason for chosen this bank
Customers satisfaction
Factors of satisfying
Sources of Data Collection
To make the Project more meaningful and presentable, two sources of data and information
have been used widely such as
Both primary and secondary data sources were used to generate this report.
The Primary sources are follows
Primary data are measurements observed and recorded as part of an original study. When the
data required for a particular study can be found neither in the internal records of the

4
enterprise, nor in published sources, may it become necessary to collect original data. For the
completion of this report, the primary sources of data are-
* Face-to-face conversation with the respective officers and staffs of The Dhaka Bank
* Informal conversation with the clients.
* Discussion with my supervising teacher.
The Secondary sources and data are follows
The data which has already been collected by others, such data are called Secondary data. For
this internship report, the secondary data are collected from the below sources-
* Annual reports of The Dhaka Bank
* Various books articles,
* Published of different brochures
* Relevant magazines
* Website of the DBL: www.dhakabankltd.com


1.6 Limitations of the study :
The basic scope of conducting this study is to Analysis on Wage-earners Remittance,
Maintenance and Foreign Exchange Operations of Dhaka bank limited.
But there are some lacks of information due to some limitations. It is very difficult to collect all
the information within 2 weeks time. Information from Annual report regarding the topic
Policy is not sufficient for in depth analysis. Secondary data are not very much available.
Bankers spend very busy time during office hours and it is very hard for them to find time for
me to give briefs about banking norms. But they have given me practical ideas whenever they
free time. With all these limitations I tried my best to make this report authentic and worth
reading.



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Chapter 2

2.1 Historical Background of DBL:
Bangladesh economy has been experiencing a rapid growth since the 90s. Industrial and
agricultural development, international trade, inflow of expatriate Bangladeshi workers
remittance, local and foreign investments in construction, communication, power, food
processing and service enterprises ushered in an era of economic activities. Urbanization and
lifestyle changes concurrent with the economic development created a demand for banking
products and services to support the new initiatives as well as to channelize consumer
investments in a profitable manner. A group of highly acclaimed businessmen of the country
grouped together to responded to this need and established Dhaka Bank Limited in the year
1995.
The Bank was incorporated as a public limited company under the Companies Act. 1994. The
Bank started its commercial operation on July 05, 1995 with an authorized capital of Tk. 1,000
million and paid up capital of Tk. 100 million. The paid up capital of the Bank stood at Tk
2,659,597,763 as on March 31, 2010. The total equity (capital and reserves) of the Bank as on
March 31, 2010 stood at Tk 6,036,368,754 The Bank has 67 Branches, 3 SME Service Centers, 6
CMS Units, 2 Offshore Banking Unit across the country and a wide network of correspondents
all over the world. The Bank has plans to open more Branches in the current fiscal year to
expand the network. The Bank offers the full range of banking and investment services for
personal and corporate customers, backed by the stateofthe-art technology and a team of
highly motivated Professionals. As an integral part of our commitment to Excellence in Banking,
Dhaka Bank now offers the full range of real-time online banking services through its all
Branches, ATMs and Internet Banking Channels.
Dhaka Bank Ltd. is the preferred choice in banking for friendly and personalized services,
cutting edge technology, tailored solutions for business needs, global reach in trade and
commerce and high yield on investments.





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2.2 Vision, Mission, Goal & Objective of DBL:
THE MISSION
To be the premier financial institution in the country providing high quality products and
services backed by latest technology and a team of highly motivated personnel to deliver
Excellence in Banking.
THE VISION
At Dhaka Bank we draw our inspiration from the distant stars. Our team is committed to assure
a standard that makes every banking transaction a pleasurable experience. Our endeavor is to
offer you razor sharp sparkle through accuracy, reliability, timely delivery, cutting edge
technology, and tailored solution for business needs, global reach in trade and commerce and
high yield on your investment.
Our people, products and processes are aligned to meet the demand of our discerning
customers. Our goal is to achieve a distinction like the luminaries in the sky. Our prime
objective is to deliver a quality that demonstrates a true reflection of our vision- Excellence in
Banking.
GOALS
Increase revenue 20% each year.
Achieve cost synergy by 20%
Reduce cost of funds to 7%
Reduce dependence on Bank Deposits to ensure continuous flow of core funds through base
deposit.
Change deposit mix Time vs. Transaction accounts to 60:40.
Reduce Non-Performing loan to less than 1% of total assets.
OBJECTIVES
The prime objective of DBL is to deliver a quality that demonstrates a true reflection of their
vision-Excellence in Banking.
Improve the quality of lone and services, and diversify the sources of revenue.
Focus on Current, Savings & Short Term Deposit Accounts to reverse the ratio (26:74) with Fixed
Deposit Receipt.
Take immediate action required to reverse the rise of Cost of Fund.
Increase fee based income: increase volume & fee of Letter of Credit & Guarantee, increase
export and exchange earnings.
Reduce operating cost by at least 20%.

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2.3 corporate information:
Name of the company Dhaka Bank Limited
Legal form A public limited company incorporated in Bangladesh on April 06,1995
under the company act 1994 and listed in Dhaka stock exchange limited
and Chittagong Exchange limited
Date of commencement July 05,1995
Registered office Biman Bhaban (1
st
floor) 100motijheel c/a, Dhaka-1000,Bangladesh
Telephone +88-02-9554514
Tel fax +88-02-9556584,9571013,9565011
SWIFT Code DHBLBDDH
E-MAIL info@dhakabank.com.bd
Web page www.dhakabankltd.com
Auditors ACNABIN Chartered Accountants
Tax consultants Howlader, Yunus & co
Rating Credit rating agency of Bangladesh ltd ( CRAB)
Managing director Mr. Khondker Fazle Rashid
Company secretary Mr. Arham Masudul Huq

2.4 Products & Services:

Products
Corporate Banking
o Securitization of Assets
o Corporate Finance and Advisory Services
o Syndication of Funds
Retail Banking

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o Deposit Double
o Deposit Pension Scheme
o Income Unlimited
o Excel Account
o Salary Account
o Smart Plant
o Gift Cheque
o Personal Loan
o Car Loan
o Vacation Loan
o Home Loan
o Any Purpose Loan
SME
Services
Corporate Banking
Retail Banking
Islamic Banking
Capital Market Service
SME
Offshore Banking
ATM Card
Locker
Online Banking
Mobile Banking

CHAPTER 3

3.1 Foreign Remittance:

On March 24, 1994 Bangladesh Taka was declared convertible for Current account International
Transaction. As a prelude to this wide-ranging reforms were made in the countrys foreign
exchange regime to lay the ground for a market friendly environment to induce investment,
growth and productivity. Following liberalization under convertibility, most remittances are
now approved by the Authorized Dealers themselves on behalf of the Central Bank. Only a few
remittances of special nature require Bangladesh Banks prior approval.

9
Foreign remittance means remittance of foreign currencies from one place /persons to another
place/person. In broad sense, foreign remittance includes all sale and purchase of foreign
currencies on account of Import, Export, Travel and other purposes. However, specifically
foreign remittance means sale & purchase of foreign currencies for the purposes other than
export and import. As such, this chapter will not cover purchase & sale of foreign currencies on
account of Import & export of goods.
Over the last decade, the Foreign Exchange Market has become more diverse as well as much
larger. Although in the past, commercial banks dominated the market, today participants also
include commercial as well as investment banks, Foreign exchange dealers and brokerage
companies, multinational corporations, money managers, commodity trading advisors,
insurance companies, governments, central banks, pension and hedge funds, investment
companies, brokers/dealers, and other participants in the inter-dealer market. In addition, the
size of the Foreign exchange market has grown as the economy has continued to globalize. The
value of transactions that are settled globally each day has risen exponentiallyfrom $1 billion
in 1974 to $2.9 trillion in 2006. The increased complexity of the market and higher trade
volumes have necessitated constant changes in trading procedures, trade capture systems,
operational procedures, and risk management tools. This research report is an empirical study
on foreign exchange practice at Dhaka Bank Limited.

All foreign remittance transactions are grouped into two broad categories-
1. Outward remittance &
2. Inward remittance.
Inward Remittance
The term inward remittance includes not only purchase of foreign currency by TT, MT, Drafts
etc. but also purchase of bills, purchase of travelers cheque. Two forms are prescribed by
Bangladesh Bank are used for purchase of foreign currencies such as:
EXP Form: Remittances received against exports of goods from Bangladesh are done by form
EXP.
Form C: Inward remittances equivalent to US$ 2000/- and are above are done by Form C.
However, declaration in Form C is not required in case of remittances by Bangladesh Nationals
working abroad.
Utmost care should be taken while purchasing Currency Notes, Travelers cheque, Demand Draft
& similar instrument for protecting the bank from probable loss as well as safety of the Bank
officials concerned.

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3.2 Foreign Currency (Bank) Notes:
Branches may freely buy foreign currency notes from Bangladesh as well as foreign nationals.
Currency notes, especially notes of higher denominations, i.e. US $ notes of 50 and 100
denominations, should be checked carefully to ascertain their genuineness. Foreign Exchange
Department shall maintain currency wise F.C. in hand Control Ledger to record each days
transactions. On the last working day of each month the branch shall calculate the exchange
gain or loss and carry out necessary adjustment in the control ledger. Foreign currencies
purchase at the rates instructed by the Head Office.
Travelers Cheque
The customer tendering the Travelers Cheque should be asked to sign the TCs at the
designated places in front of the concerned bank official who would satisfy himself about its
genuineness with reference to the customers signature already appearing on the TCs and his
passport. Should there be any doubt; purchase contracts of the TCs may be asked for.
Foreign Draft and Cheque
The branch should exercise due care and ordinary prudence for purchase of foreign currency
denominated drafts, cheque and similar kinds of instruments. The instrument should not be
purchased unless the customer is well known to the branch as a regular trustworthy client. An
Indemnity Bond should be obtained for refund of the money along with interest in the event of
dishonour of the instruments. Indemnity need not be obtained in case of instruments against
which proceeds have already been credited to the banks Nostro account. If the instrument is
drawn on the banks branch and the cover amount already paid by the issuing bank into the
banks Nostro account the vouchers will be passed at TT (clean) rate.

Telegraphic Transfer (TT)
Test number appearing on the TT must be checked and authenticated by the concerned official.
After receiving confirmation from the Head Office about the proceeds having been credited to
their Nostro A/C and observing the usual formalities including declaration on Form C, if
necessary, the vouchers are to be passed at the TT buying rate.
Dhaka Bank limited has ended the year 2007 with total inward foreign remittance of Tk. 10609
million .it has commenced its operation with the view to serving the expatriate Bangladeshis
through fast and efficient disbursement of remittances. Providing fast and efficient services to
its expatriates clients has been the banks top priority, along with increasing the inflow of
foreign currency to contribute to the countrys foreign reserve.


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3.3 Inward remittance process of DBL:
Sender (from Singapore)

Exchange House (Singapore)

Dhaka Bank Limited (any branch)

Dhaka Bank Limited (Head Office)

Beneficiary/ receiver through Sonali Bank
Outward Remittance
The term Outward Remittances include not only remittance i.e. sale of foreign currency by TT.
MT, Drafts, Travelers cheque but also includes payment against imports into Bangladesh &
Local currency credited to Non-resident Taka Accounts of Foreign Banks or Convertible Taka
Account.
Two forms are used for Outward Remittance of foreign Currency such as: -
IMP Form: All outward remittance on account of Imports is done by this form
T.M Form: For all other outward remittances form T.M is used.

3.4 FOREIGN EXCHANGE OPERATIONS
Foreign exchange department is international department of the bank. It deals with globally
and facilitates international trade through its various modes of services. It deals with globally
and facilitates international trade through its various modes of services. It bridges between
importers and exporters. These banks are known as authorized Dealers. If the branch is
authorized dealer in foreign exchange market, it can remit foreign exchange from local country
to foreign country. This department mainly deals with foreign currency. This is why this
department is called foreign exchange department. Some national and international laws

12
regulate functions of this department. Among these, Foreign exchange Act, 1947 is for dealing
in foreign exchange business, and import and export control Act, 1950 is for documentary
credits. Governments import & export policy is another important factor for import and export
operation of banks. In Dhaka Bank Limited, Local Office foreign department has three sub-
sections. One is foreign remittance section, another is import section and the third one is
export section. The VP is the in-charge of the foreign exchange
3.5 Wage earners remittance:
According to the international organization for migration (IOM, 2007) there are three million
Bangladeshi migrants working abroad sending remittances more or less regularly to their
families and friends at home. In addition, there are about one million Bangladeshi permanently
residing abroad. They also send remittances for their families. In 2007, approximately three
billion US dollars came in to Bangladesh only in official channels. It is estimated that an equal
amount of remittance came in through informal channels. People who work out side the
country and send money in this country is known as WAGE EARNERS REMITTANCES. There is a
low percentage (15%) of professional and technical workers are sending money in banking
channel and get the money in a very short time and fulfill their demand. For the increasing
demand of the people different bank takes different steps or systems to manage remittance
and get it touch with their customers.
This graph represent monthly remitted amount of three different banks. In terms of wage
earners remittance HSBC belong in the lowest position with $8 million among these three
banks. DBL stands the first position with $14 million and EBL stands to the third position with
$10 million.


Analysis
Depending on the primary data, analysis has been done. Discussion was held with Officials of
Dhaka Bank limited.
Level of customer satisfaction of Dhaka Bank Limited
How did customers first know about Dhaka Bank Limited?
Form figure 1 most of the customers are informs about Dhaka Bank Limited from their relatives,
advertising and friends. This proves positive word about Dhaka Bank Limited will helps to
increase new customers.

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From the above chart we can say that the number of satisfied customers of Dhaka Bank Limited
is much higher with their current services on remittance. Though, the main target is to only
satisfy its customer. But there are some portions of the customers are dissatisfied for some
issues. Sometimes customers are not satisfied up to that level but management is not aware of
that fact. So it creates negative impression towards the customers.
Which factor satisfying customer?
Here we see that the 35% of customers respond for modern technology. Only 10% of the customers go
for facilities that prove customers actually values highly in case of quick service, friendly behavior, and
modern technology than facilities subsequent


CHAPTER 4

4.1 FINDINGS:
DBL presently has 67 branches to operate its business. But it is quite hard for DBL to cover the
whole Bangladesh with this small number of branches.
The number of exchange house through which Dhaka Bank remitted money is only 13. DBL is
known as one of the leading local bank of Bangladesh but they dont have enough exchange
houses to remit money.
Longer processing is one of the prime factors for customer dissatisfaction. In this respect HSBC is
far ahead than Dhaka Bank Ltd. It takes only 24 hours for HSBC to make the remitted amount
available to the customers. On the other hand the processing turnaround time for the Dhaka
Bank Ltd is 2 days for urban areas and 3 days for rural areas in working days.
During the festival time DBL has to face manpower shortages which hamper the managing
process of the remittance department.
DBL has no separate marketing department for their marketing program. Recently the public
relationship departments handle the marketing department. Marketing is one of the most
important factors for an organization. So the absence of marketing department can cause a big
loss for a company.
According to the modern technology it is necessary to know about the new one to compete with
other banks. In order to stay in the market every part of the organization has to be updated but
SBL sometimes unable to cope with this.
DBL arrange training program only in Bangladesh but it is not possible to know about the new
and modern technology fully in Bangladesh without watching and handling that. For this reason
they have to think other options so that employees can be more benefited.

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DBL has to give more emphasize in their remittance process. It needs 2-3 days for reaching the
remitted amount to the customer account. But customer may need the amount in one day but
at that time DBL can not provide the service to this particular customer. As a result the customer
has to suffer.
As one of the leading bank of Bangladesh Dhaka Bank has to increase their distribution channel
to satisfy the increasing no of customer in Wage Earners Remittance.




4.2:Conclusion:
In the financial world banking sector is the heart of a developing country. In order to develop a
countrys economy, a good banking plays a very important role through their modern products
and services. Among a large number of services, remittance management is one of the most
important factors that directly hit a countrys economy. The remittance market is expanded all
over the world as an important source of fee revenue for the commercial banking sector. Dhaka
Bank Limited is one of the leading banks in Bangladesh, which works for customer satisfaction
through quality services. Dhaka Bank Limited remits a huge amount of money outside of
Bangladesh. For this remitted amount they do not claim any service charge and try to provide
this service with in a very short time, where the international banks claim a higher charge for
their services. It can be seen that Dhaka Bank Limited is not much different from other
commercial banks in Bangladesh. Most of the time it follows the same practice and procedure is
followed by its competitors. But with in a very short time the satisfaction level of the customers
are much higher than any other local commercial banks in Bangladesh.


4.3 RECOMMENDATIONS:
Dhaka Bank Limited needs to increase their branches immediately. For a well reputed bank like
them, their numbers of branches are surprisingly low. This limits them to getting customers
even if the customers are interested. In order to increase the number of branches DBL has to
increase their manpower to handle and manage to branch.

15
Dhaka Bank Limited needs to increase their Exchange house so that much people from outside
Bangladesh can remit their money through Dhaka Bank. For this purpose DBL has to go for
agreements with other exchange house.
Dhaka Bank Limited needs to have prompted their service processing. Due to dissatisfaction of
many customers it is evident that the bank needs to develop methods of quicker services. One
solution may be to increase the no of employees so that customers dont have to wait much for
their turn or introduce token system to avoid long queues. The service quality such as speaking
in a fielder manner t customers. Not taking much time from each employee, not letting
customers wait much for their turn etc should always be improved.
Cash transaction should be faster and cash counter needs to be more spacious so that there
would be no gathering in the bank. Pay order should be computerized because writing pay
order by hand takes longer time and fir that customers have to keep waiting. Computers, desks,
equipments etc should be state of the art. They are already using modern technology in all of
their services along with internal and external facilities inside and outside the branch. However,
they always need to be upgrade.
The bank should have a clear, focused and detailed marketing plan for its targeted market to
create more brand awareness. Dhaka Bank Limited needs to be more promotional campaign so
that people can more recognize the bank. They need to focus mass marketing to promote their
service and to attract new markets and expand.
Dhaka Bank Limited should create a fully operating marketing team and department. Currently
the public relation department handles all the marketing and advertisement responsibilities of
the bank. However, in today world a bank also need to have a fully operating marketing
department to succeed.
They have to use new and preferable modern service for their customers. Because most of the
time a family depend on the money that come from other countries. If the receiver can not able
to take the money in perfect time then they have to face problem. So DBL has to take care of
that.
DBL require strengthening at the level of management processes and technology, if they are to
fully realize their potential as value creating end points of remittances. There is a general lack of
automation and technical capacity.
In order to work with modern technology and new ways of handling banking services, DBL
arrange training program in SARA Tower. But technologies are much more improved in out side
Bangladesh. If DBL arrange training program in outside Bangladesh then that would be more
effective for their banking and management system.
DBL can make their distribution channel so that bank facilities get faster. If the number of
distribution channel increase bank can operate their business much faster than the present

16
time. For this reason DBL has to increase their distribution channel. Increasing of distribution
channel is a positive sign both for bank and customers for manage their service from long
distance. On the other hand DBL customers can collect their money from near places.
4.4 Reference:

Organizational publications:
Bangladesh Bank Focus Group Foreign Exchange Management Dhaka, Bangladesh Bank
Annual Report of Dhaka Bank
Development Euphoria in Utopia: Bangladesh.

Internet sources:
www.dhakabankltd.com
www.bangladeshbank.org.bd
www.dhakabankltd.com/serv_sme.php
www.dhakabankltd.com/about_board.php
www.dhakabankltd.com/about_branches.php
www.dhakabankltd.com/about_mission.php