presentation on foreign exchange barun

8/7/2019 Presentation on Foreign Exchange Barun

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The Southeast Bank Limited, formerly the National Credit

Limited, was primarily establish as an investment company inNovember 1985 to further the business activity andindustrialization in Bangladesh to create new employmentopportunities, by acting as a catalyst for the attraction ofnew entrepreneur, capital, skill and technology. It has beenconverted to a scheduled commercial bank in May 1993.

The purpose of the bank is to become the bank of choicein the communities they serve. They accomplish this byoffering to their customer the financial service they expectwhile providing a return to bank owners. In accomplishing this

mission, the bank has now been form all the natures of aproblem bank through fulfilling all the conditions set bycentral bank. They proudly say SEBL is profit making andproblem free. In year 2008 and 2009 SEBL offeredaccordingly 15% cash,20% bonus share and 35% bonus

Overview of SEBL


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Particulars2009

(In Million tk.)

2008

(In Million tk.)

2007

(In Million tk.)

2006

(In Million tk.)

2005

(In Million tk.)

Deposits 96669.05 68714.67 55474.05 46056.18 38258.15

Loans &

Advances77497.57 60281.26 48164.60 41147.28 32551.09

Foreign Trade 128224.13 115277.36 76250.02 69656.53 50565.40

Investment 2135023 12299.61 8462.86 6265.55 5113.14

Operational

Profit/(Loss)

before provision

4614.66 3012.58 2916.20 2062.66 1473.44


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Trade Finance

There are Two types of Trade Finance

1. Foreign Trade

A.Import

B. Export

C. Foreign Letter of Guarantees

2. Local Trade

A. Working Capital

B. Commodities

C. Local Letter of Guarantees


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Foreign trade constitutes the mainstream of business activates of SEBL. Itoffers a full range of trade and servicenamely, issue, advice and confirmation

of documentary credit, arrangingforward exchange coverage; pre-shipment and post-shipment finance;negotiation and purchase of export bills;

discounting bills of exchange; collectionof bills etc.


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Import procedure:

To import through SEBL, a customer requires- Bank account Import Registration Certificate (IRC) Tax Paying Identification Number

Pro-forma Invoice Indent Membership Certificate LCA (letter of Credit Authorization) from duly attested One set of IMP form Insurance Cover note with money receipt


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Major

Commodities

2005-2006

(In Million USD)

2006-2007

(In Million USD)

2007-2008

(In Million USD)

2008-2009

(In Million USD)

Wheat 171 198 287 378

Sugar 23 104 110 178Chemicals 335 353 406 434

Cotton 312 393 583 596

Yarn 312 393 583 594

Iron &steel 413 455 479 488

Rice 15 144 211 256

Milk & Cream 59 61 61 64

Fertilizer 107 109 150 173Import byEPZ 627 727 887 896

0

100

200

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400500

600

700

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900

2005-2006

2006-2007

2007-2008

2008-2009


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Major Commodities 2006-2007

(In Million USD)

2007-2008

(In Million USD)

2008-2009

(In Million USD)

Raw Jute61.13 82.4 79.7

Tea17.38 15.47 15.81

Leather207.33 191.23 211.41

Export byEPZ866.6 929 1027.4

Home Textiles75.58 71.38 135.49

Fertilizer 47.93 78.61 80.67Frozen Shrimp and Fish

276.11 321.81 390.25

0

200

400

600

800

1000

1200

w J

L

r

x

r

Z H

x

l s

F

r

l

z

r Fr

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r F

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2006-2007

2007-2008

2008-2009


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The guarantees that are used in Foreign Trade or other purpose is called

Foreign Guarantee.

In a Foreign Guarantee, a second bank is involved. There are four parties inforeign guarantee. Foreign guarantee are mainly issued in connection with

the international trade, both export or import. The guarantee issuing bank is

request by the principals bank to issue guarantee in favor of the beneficiary.

The instructing party(principals Bank) provide counter guarantee to the

issuing bank which protects the issuing bank from the beneficiary.

Opening or issuing letter of credit is one of the important services provided

by SEBL. A letter of credit is a document authorizing a bank to pay the bearer

a specified sum of money, it provides a useful means of settlement for a

foreign trade transaction, the purchaser establishing a credit in favor of his

credit at a bank.

Eligibility: Letter of credit facilities are given to

exporter, manufacturers/producers.

Rate of Commission: 0.4% for 90 days.

0.6% for 120 days.


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STRENGTH:

The customer can draw the whole amount of money at atime.

Terms & Conditions is comparatively easy.

uge demand from the trading side. The interest is comparatively low.

OPPORTUNITY:

In some special business area SEBL should increase theirbranch number, where many hardware shop, ship recyclingyard located.

The Bank can earn high profit from this sector.

Business man and every company always looking for this

loan.


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WEAKNESS:

Installment period & installment time duration is relatively low.

The customer cannot repay the installment in any other Branch ofSEBL except the loan taking Branch.

Default rate is comparatively high.

Service Charge & risk fund is 1% that is too high.

Online service is not available in all SEBL branch.

THREAT:

Foreign trade financing is a huge in amount to give a new person is

risky.

There are some competitors in the market

presentation on foreign exchange barun

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