INTERNSHIP REPORT

On

Foreign Exchange Activities of Janata Bank PLC

Submitted To
Saiful Islam
Assistant Professor
Department of International Business
University of Dhaka

Submitted By

Md. Mamunur Rashid Hemal

ID: ZR-030-050
IB12th Batch
Department of International Business
University of Dhaka

Date of Submission: 20th November, 2023

1
 Acknowledgement

First of all, I would like to express my deepest gratitude to Almighty

Allah for keeping me able to finish my report in time. In preparing this
internship report I have taken a lot of help from many people and
various sites. My earnest tribute is to those who helped me in preparing
the report.

I am immensely grateful to my respective supervisor, Mr. Saiful Islam,

Assistant Professor, Department of International Business, University of
Dhaka, for his guidance, valuable comments, suggestions, and overall
fantastic supervision.

I would like to specially thank Prakash Chandra Burman, DGM and

Mr. Arifur Jamman, Principal officer of Farmgate Corporate
Branch(2), Janata Bank PLC. They have given me all the information
which I needed and also encouraged me during the internship period.

I also owe to my classmates and my seniors who helped me by providing

guidance and directives. Finally, I would like to thank everyone at Janata
Bank family, Farmgate Corporate Branch(2), who provided me with
ideas and invaluable experiences of the corporate culture.

2
 Letter of Transmittal

20th November, 2023

Saiful Islam
Department of International Business
Faculty of Business Studies
University of Dhaka

Subject: Submission of Internship report.

Dear Sir,
This is my immense pleasure to submit the internship report on “Foreign
Exchange Activities of Janata PLC” which was done at Farmgate
Corporate Brunch. This internship report has been completed on a 45
days internship program.

I have given my best effort to achieve the objectives of the report and
hope that my endeavor will be fruitful. The practical knowledge and
experiences obtained during the report preparation will substantially
help me in the future professional life. I will be obliged if you kindly
approve this endeavor.

Md. Mamunur Rashid Hemal

ID: ZR-030-050
IB12th Batch
Department of International Business
University of Dhaka

3
 Student’s Declaration

This is my declaration that the internship report “Foreign Exchange

Activities of Janata Bank limited: A study on Farmgate Corporate
Branch” Which is submitted to you is not a copy of any other internship
report previously made by any other student.

I also express my confirmation that this report includes my own works

completed under the supervision of Saiful Islam, Assistant Professor,
Department of International Business, Faculty of Business Studies,
University of Dhaka.

I further affirm that the report is original and no part of this report is
taken from another report or book. This report is only for academic
purposes.

Md. Mamunur Rashid Hemal

ID: ZR-030-050
IB12th Batch
Department of International Business
University of Dhaka

4
 Academic Supervisor’s Declaration

I hereby declare, as the Academic Supervisor, the submission of the

Internship Report titled "Foreign Exchange Activities," conducted at
Farmgate Corporate Brunch(2), by Md. Mamunur Rashid Hemal, ID :
ZR-030-050. This submission is part of the requirements for his
Bachelor of Business Administration (BBA) degree with a Major in
International Business. The report is now ready for evaluation by the
Internship Defense Committee in November 2023

It is imperative to underscore that any expressions of opinion or

suggestions articulated in this report are the exclusive intellectual
property of the author. The University neither endorses nor rebuffs
these recommendations.

Saiful Islam
Assistant Professor
Department of International Business
University of Dhaka
Internship Supervisor

5
Industry Supervisor’s Certificate

6
 Executive Summary

Janata Bank PLC is a state owned commercial bank in Bangladesh. This

bank comprises many departments, one of them is Foreign Exchange
Department. Foreign exchange Department is nowadays very crucial to all
financial institutions. This report contains the aspects of Janata bank
Limited’s Basic operations to foreign exchange operations. The main
objective of this report is to evaluate the foreign transaction, import,
export, remittance, Letter of Credit, anti-money laundering activities and
so on.

In this report, approximately every issue related to foreign exchange

activities will be discussed and there will be some self-solution to the
existing financial problems along with the conventional methods used by
banks to solve its daily financial issues.

This report is divided into four chapters in order to easily understand the
readers. These are Introduction- Overview of the Organization, Internship
Job part, critical assessment of the Internship Work and Conclusion. The
Main objectives of the report are to evaluate and analyze the foreign
exchange activities including export, import and remittances. Main
objectives are specified into many parts. This report is prepared basically
on secondary and primary data. No Survey was conducted during the
report. The first part of this report shows a short view of Janata bank
limited, its vision, missions, goals, core values and some basic functions as
well as services offered by JBL.

In this report the first chapter includes the background of the Internship,
history of organization, management leadership of the organization,
organogram of Janata Bank Limited, description of the organization and
management process. The first chapter will be very helpful for the readers
to know the organization thoroughly.

7
The second chapter of this report is the main part of this study. It includes
everything related to foreign exchange activities that I have learnt during
the internship period. The third chapter includes relation of work
assignment with academic learning during BBA and evaluation of
effectiveness of teaching to the assignment in the organization. The fourth
chapter includes a conclusion. Over the chapters, I have tried to raise my
learnings for self-improvement and the ways to improve myself.

8
 Table of Contents

Contents Page No.

Executive Summary 07

Chapter 1: Introduction of the Study

1.1 Background of the Study 10

1.2 History of Organization 11

1.3 Management Leadership of the Organization 12

1.4 Organogram of Janata Bank PLC 13

1.5 Description of the Organization 15

1.6 Financial Highlights & Analysis of Janata Bank PLC 18

1.7 Management Process 21

Chapter 2: Internship Job Part

2.1 Description of Internship Job 22

First Week------------------------------------------- 22
Second Week ---------------------------------------- 23
Third Week ------------------------------------------ 25
Forth Week ------------------------------------------- 27
Fifth Week ------------------------------------------- 31
Sixth Week-------------------------------------------- 36
Additional Learnings-------------------------------- 37

Chapter 3: Critical Assessment o f the Study

3.1 Learning from the Internship 39

3.2 Relation of Work Assignment with academic learning during BBA 40

3.3 Difference and matches between internship job learning and BBA program 42
learning

3.4 Evaluation of Effectiveness of Teaching to the Assignment in the Organization 43

Chapter 4 : Conclusion 44

Reference 46

9
 Chapter-1
Introduction of the Study

1.1 Background of the Internship

All BBA students at the Department of International Business are required to

participate in a 45-day internship program. This program provides an excellent
opportunity for students to apply the theoretical knowledge gained during their
studies.

During my internship at Farmgate Corporate Brunch in Dhaka, this process of

preparing the internship report was supervised by Saiful Islam, department of
International Business, University of Dhaka. I was able to successfully complete
the program. I chose to do my internship at Janata Bank Limited, a
government-owned commercial bank in Bangladesh. It is mandatory to every
student under the BBA Program to complete an Internship of Minimum 45 days at
any Commercial institution.

This report has been prepared as a requirement of the internship program. As a

student of BBA program, assigned to the internship period with a topic on Foreign
Exchange activities of Janata Bank, Study on Farmgate Corporate Brunch, a
leading & outstanding commercial bank in the area of banking business which
provided many fresh graduates with an opportunity to get a real taste of actual
banking activities of various departments every year.

An Internship program is designed to put students in a challenging environment

of the relevant field, where the students get a sample opportunity to apply their
theoretical knowledge into practical applications. During the internship program,
students have the opportunity to adopt themselves into the particular environment
of the organization. It provides a unique opportunity to see the reality of business
during student life, which enables them to build confidence and working
knowledge in advance of the start of their career. Here students get a chance to
apply their theoretical knowledge. They acquire from class lectures, books,
journals, case studies, seminar, project, workshop, etc. and compare them with
practical settings.

10
1.2 History of organization:

Janata Bank Limited was established in 1972 under the order of Bangladesh Bank.
By the nationalization ordinance of 1972, JBL was formed through the
amalgamation of Union Bank Ltd and United Bank Ltd. In Bangladesh, JBL is the
second largest nationalized commercial bank which was formed after the liberation
war. During the early era of privatization, in November 2007, the bank was listed
as a Public Limited Company. Janata Bank Limited aims to contribute in the
country’s economic growth by providing financial needs. JBL operates through
921 branches, including 483 urban and 434 rural branches, with 4 overseas
branches in the UAE. JBL is connected with 1239 foreign correspondents
worldwide.

The Board of Directors of JBL consists of 13 members, including a Chairman. The

CEO & MD lead the bank's 51 departments. The main office of JBL is situated at
Motijheel in Dhaka. There are over 12,391 employees in JBL.

● Vision:
To be the most prominent and efficient bank by contributing in the
socio-economic development of Bangladesh as well as to become a top
financial institution in the South Asian banking sector.

● Mission:

To achieve effectiveness as a nationalized bank by implementing a static

developing strategy, offering high-quality banking products, delivering
exceptional service with the help of a skilled management team, and
ensuring sound corporate governance across all units and components of
its banking network.

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 Awards & Accreditation:
Awards & Accreditation Year
Quality Recognition Award 2009
Best Bank Bangladesh 2006-2009
Western Union Asia Pacific 2010
The Bank of the Year 2011
ICMAB Best Corporate Award 2014, 2018
Position in the Bankers Ranking 2012
The Asian Banking and Finance Award 2012, 2013
Business Asia Most Respective Company Awards 2012
Performance Excellence Award 2013
The Asian Banking and Finance Award 2014
SAARC Anniversary Awards for Corporate Governance 2014, 2020
Disclosures
Best Tax Payer Award 2015, 2016
JB Green Communication 2017
ICMAB Award 2017
Bangladesh Bank Remittance Award 2018, 2019
21st ICAB National Award for Best Presented Annual Report 2020
Top 10 Remittance Award 2021

Source: Annual Report of JBL (2022)

1.3Management Leadership of the Organization:

Janata Bank PLC is led by a dynamic team of leaders, comprising the Board of
Directors, Executive Management, and various department heads. The Board of
Directors sets the strategic direction and policies for the bank, while the
Executive Management team, led by the Managing Director and CEO, is
responsible for executing these strategies and ensuring the day-to-day
operations run smoothly. The hierarchical structure allows for clear lines of
authority and accountability.

The leadership promotes a culture that aligns with the bank's core values, which
include integrity, customer focus, innovation, teamwork, and social
responsibility. These values guide decision-making and behaviors across the
organization, fostering a positive work environment and a customer-centric
approach.

12
Leadership at Janata Bank PLC is deeply involved in the strategic planning
process. They assess market trends, competition, and the regulatory environment to
formulate long-term strategies and annual business plans. These plans provide a
roadmap for the organization's growth and development.

Effective risk management is a top priority for leadership at Janata Bank PLC.
They establish risk management frameworks, policies, and procedures to ensure
that the bank operates within acceptable risk parameters while seeking growth
opportunities.

The management leadership within Janata Bank PLC, Bangladesh, is instrumental

in steering the organization towards its strategic objectives. Through a structured
leadership hierarchy, a clear vision and mission, a values-driven culture, and a
commitment to employee development and stakeholder engagement, the bank's
leadership fosters a dynamic and successful financial institution in a highly
competitive market. Their dedication to ethical conduct, risk management, and
corporate governance further reinforces Janata Bank PLC's position as a trusted
and respected institution in the banking industry.

1.4 Organogram of Janata Bank PLC:

In every organization, the responsibility of making important decisions lies with

the top management, and the same is true for Janata Bank. Government of
Bangladesh appoints The Board of Directors. The board plays a crucial role in
developing policies, overseeing their implementation, and managing the bank's
operations. The bank's objectives and policies are set and the management
responsibilities are delegated by the board.

The Directors provide guidance to employees at all levels so that they can
accomplish their objectives. While the Chief Executive Officer may provide
guidelines to managers and employees, it is ultimately their responsibility to
determine how the goals can be achieved.

13
Organizational Structure

Source: Annual Report of JBL (2022)

14
1.5 Description of the Organization:

List of the Branches: Janata Bank runs its business with 912
branches across the country including 4 overseas branches in United Arab
Emirates.

Special Corporate -Branch 02

Corporate -1 Branch 28
Corporate-2 Branch 77
Overseas Branch 209
Grade (1) Branch 225
Grade (2) Branch 275
Grade (3) 92
Overseas 04
Total Branches: 912

Source: Annual Report of JBL (2022)

15
 Product Portfolios of Janata Bank Limited: Janata bank is playing a
significant role by giving specialized products and services to different clients.
It offers all the major banking facilities and services to its customers.

Products of Janata Bank Limited

Products

Deposits Interest Facilities

● Current Deposits ● 3.75% on savings deposit

● Savings Bank Deposits ● Up to 4% on special notice deposit
● Special Notice Deposit ● 7% on any type of fixed deposit
● Fixed Deposits ● 8.5% simple interest on schemes
● Scheme

Loans & Advances Janata Bank Limited also provides

● Agriculture Loan Programs ● Demand Draft

● Working Capital Loan ● Pay Order
● Poverty Alleviation Program ● Mail Transfer
● Green Financing ● Security Deposit Receipt
● House Building/Flat Loan for Govt. ● Telegraphic Transfer
Employee ● Normal Transfer
● Commercial Real Estate Loan ● Transfer of fund by special arrangement
● Consumers Financing ● Electronic Transfer through ready cash
● Education Loan card
● Specialized Loan Program ● Foreign Remittance Payment
● Rural Credit ● Western Union Money Transfer
● Term Loan for Large and Medium Credit ● JBL Power Card
Programs ● Saving Insurance Scheme
● Others Loans & Advances ● Credit Card
● Cards ● Consumer Credit Scheme
● Credit Card ● Special Deposit Scheme
● Debit Card

Source: Annual Report of JBL (2022)

16
Services :
One Stop Service: Janata Bank Limited has launched a One Stop Service that
includes the following notable characteristics:

● At the One Stop Service of Janata Bank Limited, customers are allowed
to perform any transaction from a single desk.
● A customer can complete all account opening formalities in a single desk.
● A customer can check his/her account balance from any of our branches.

Services
Services Provided by Janata Bank Other Services

● SME Banking ● SMS Alert Service

● Western Union Money Transfer ● National Savings
● Cash Deposit & Withdrawal ● Online Banking
● Pay Order ● Locker Services
● Cheque Deposit ● Utility Bill Collection
● Loan and Advances ● One Stop Service
● Prize Bond
● Account Opening And Closure
Services Provided by Mugdapara Branch
● Cheque and Cards Delivery
● Locker Service ● SME Banking
● Debit Card & Credit Card Service ● Western Union Money Transfer
● Statement and Certificates ● Cash Deposit & Withdrawal
Fund Transfer ● Pay Order
● Cheque Deposit
● BEFTN
● Loan and Advances
● JB Remittance
● Prize Bond
● RTGS
● Account Opening and Closure
Cash Services
● Cheque and Cards Delivery
● ATM Service ● Customer Information Update
● JB PIN Cash ● Debit Card & Credit Card Service
E-Service ● Statement and Certificates
● Student File
● e-GP Payment Service

Services of Janata Bank Limited

17
1.6 Financial Highlights & Analysis of Janata Bank Limited:

Financial Key Information

(BDT in million)

Particular 2021 2020 2019 2018 2017

Authorized capital 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00

Paid up capital 23,140.00 23,140.00 23,140.00 23,140.00 19,140.00

Reserve fund & 24,288.45 28,362.64 27,127.95 31,416.37 32,223.33

surplus

Total shareholders' 47,428.45 51,502.64 50,267.95 54,556.37 51,363.33

equity

Capital employed 526,107.25 495,547.86 411,193.67 418,483.42 392,032.44

Deposits 1,016,208.5 824,007.96 691,409.37 675,548.45 649,440.78

0

Loans and advances 699,656.76 605,351.70 548,473.94 533,707.16 459,580.05

Total assets 1,249,540.2 1,043,311.1 895,387.08 866,046.48 805,988.41

3 8

Interest income 39,177.32 32,304.93 33,369.53 34,488.66 31,145.61

Operating profit 10,024.00 9,809.76 7,093.66 9,788.96 11,369.48

Profit before tax 5,088.74 1,666.55 864.32 922.81 4,210.05

Net profit after tax 3,003.19 143.18 246.44 248.97 2,686.50

Operating profit per 10.92 10.71 7.76 10.72 12.47

branch

Return on investment 6.38% 9.08% 6.89% 8.37% 6.90%

(ROI)

Source: Annual Report of JBL (2021)

18
 Loans & Advances Total Deposits

Source: Annual Report of JBL (2022) Source: Annual Report of JBL (2022)

Operating Profit Profit after Tax

Source: Annual Report of JBL (2022) Source: Annual Report of JBL (2022)

19
Loans and advances have increased by 151,183 million BDT over the past two
years. It is shown in the above figure that total deposits have increased by 324,800
million BDT over the past two years. It is clear that operating profit has increased
by 2,930 million BDT over the past two years. It is clear in the figure profit after
tax has increased dramatically by 2,757 million BDT over the past two years.

On the other hand, reserve fund & surplus, and total shareholder’s equity are
decreasing.

After analyzing the financial performance of JBL over the few past years, it has
been found that the financial condition of JBL is gradually being better. Though its
reserve fund & surplus, and total shareholder’s equity are decreasing, its loans and
advances, total deposits, total capitals, total assets, operating profit, and profit after
tax are growing up fantastically.

20
1.7 Management process:

Janata bank is the largest commercial; bank of the country. It has 912 branches
throughout the country and abroad to serve the nation. There are 4 overseas
branches at U.A.E. The Head office of the bank is situated at Janata Bhaban 110,
Motijheel C/A, Dhaka. It has 35GM, 153 DGM, 576 First AGM, 1125 SEO, 3085
EO and 406 AEO. Principal offices are headed by First AGM and each
department is headed by AGM.

Functional Hierarchies

21
 Chapter 2
Internship Job Part

2.1 Description of Internship Job: During the internship period I have

worked in various departments but mainly focused on foreign exchange
department. I tried to function in such activities related to my academic
curriculum. Foreign exchange department of Janata Bank Limited is one of the
most important. Including import process, export process, LC payment,
remittance and anti-money laundering. The main function of such foreign
activities is to be described elaborately in the following.

List of Daily Working Activities during Internship Program

First Week

● Introducing to the banking environment

● Introducing with employees and staff
● Learning the usage of printer machine
● Leaning he account opening process
● Taking knowledge about software.

I took my first week to acclimatize the organizational culture. In the first week, I
spent most of the time getting introduced to the officials and staff of the bank.
In the middle of the first week, honorable officials helped me learn the usage of
the printer machine and I was introduced with a software by which Janata Bank
operates its foreign transactions . Janata Bank uses T24 software to manage its
foreign operations. Besides, the honorable officials of JBL acquainted me with
some clients. Finally, the Janata Bank family embraced me warmly and with a
smiley face that helped me adopt the environment quickly.

22
 Second Week

During my internship at Janata Bank Ltd., Farmgate Corporate Branch,

Dhaka, I had the invaluable opportunity to work in the Currency Exchange
Department. This experience provided me with practical insights into the
intricate workings of currency exchange operations within the banking
sector.

My key Learning:

Understanding Currency Exchange Processes

Customer Interaction and Service Delivery
Compliance and Documentation
Exchange Rate Determination
Currency Risk Management
Foreign Exchange Reserves

In my second week, an official under whom I had been supervised in the

corresponding bank introduced me to the currency exchange process and at
that time I observed day to day operation of currency exchange and tried to
obtain a comprehensive understanding of the processes involved.

Interacting with customers allowed me to observe and participate in

delivering efficient and customer-centric currency exchange services.I
learned about the meticulous documentation and compliance requirements
inherent in currency exchange activities to ensure adherence to regulatory
standards.

A crucial aspect of my internship was understanding the factors influencing

exchange rates and how Janata Bank determines these rates. We know there are
various factors that push the exchange rate to change. Such as frequent
fluctuation of foreign reserve, interest rate, political stability, economic
performance, inflation rate, trade balance, government debt, market supply and
23
demand and so on. After having an internship in Janata Bank, an authorized
dealer, I have got opportunities to realize the actual reasons of exchange rate
fluctuation and how banks determine the exchange rate.

I acquired knowledge on how Janata Bank manages currency risks for both the
bank and its clients, using various financial instruments. Understanding the
bank's role in managing foreign exchange reserves provided me with insights
into the broader economic implications and responsibilities.

Throughout the internship, I encountered challenges such as handling

discrepancies in currency transactions and addressing customer complaints.
However, under the guidance of experienced professionals, I learned effective
strategies for resolution, enhancing my ability to navigate real-world challenges.

24
 Third Week

During my internship at Janata Bank Ltd., Farmgate Corporate Branch, Dhaka, I

had the privilege of working in the Trade Finance Department. This experience
provided me with a comprehensive understanding of trade finance operations,
specifically focusing on the Letter of Credit (LC) process and import-export
documentation.

My key Learning:

Understanding Trade Finance Operations

Letter of Credit (LC) Processing
Import and Export Documentation
Customer Interaction
Documentary Credits
Export and Import Documentation
Risk Management

I was very fortunate to remain very close to the trade finance activities. I have
gained a practical understanding of how banks facilitate international trade
transactions. Trade finance activities refer to a financial instrument issued by a
bank, at the request of the buyer (importer), to pay the seller (exporter) a specified
amount of money upon the presentation of compliant documents. The main
purpose of it is to reduce the risk for both parties by ensuring payment upon the
fulfillment of agreed-upon conditions.

My internship included hands-on experience in the processing of Letters of Credit,

a vital instrument in international trade. Letters of Credit play a critical role in
facilitating secure and transparent international trade transactions. As an intern at
Janata Bank, I had the opportunity to witness firsthand how LCs acts as a financial
guarantee, providing assurance to both the exporter and the importer. This
instrument ensures that payment is made only upon the fulfillment of specified
conditions, thereby minimizing risks for all parties involved.

During my internship at Janata Bank Ltd., Farmgate Corporate Branch, I had the
valuable opportunity to work in the Import and Export Documentation department.
25
This experience provided me with practical insights into the intricate processes
involved in facilitating international trade transactions. I aimed to gain hands-on
experience in the preparation, verification, and processing of import and export
documents, understanding the critical role they play in international trade. I learned
about the specific documents required for import and export transactions, including
bills of lading, commercial invoices, packing lists, certificates of origin, and
inspection certificates.

I was immersed in the intricacies of the Letter of Credit (LC) process. This
experience was pivotal in enhancing my understanding of international trade
finance and the crucial role that LCs play in facilitating secure and efficient
cross-border transactions. My internship experience in the Letter of Credit
department at Janata Bank has been enlightening and enriching. It provided me
with a deep understanding of the complexities involved in international trade
finance and the pivotal role that Letters of Credit play in mitigating risks and
ensuring the smooth flow of global transactions. I am grateful for the guidance and
support provided by the team at Janata Bank, and this internship has undoubtedly
equipped me with valuable skills for my future endeavors in the financial sector.

Understanding the various risks involved in trade finance, such as credit risk,
currency risk, and how banks employ risk mitigation strategies. This internship
program helped me understand the practical knowledge of mitigating risk. I
became able to witness the tools they use to reduce the trade finance risk, such as
Bank Guarantees, Collateral Management, and Credit Insurance and so on.

26
 Forth Week

I have worked in the Remittance section in my fourth week of my internship

program in Janata Bank, Farmgate Corporate Branch. Really to say, working in
this section was very thrilling for me. I have learnt how the Bangladeshi
expatriates send back their earnings earned overseas instead of using the illicit
Hundi system. In behind of learning many things from working in this section I
faced many challenges. It seems to me that working in this section is very risky
for the corresponding officials. The most important thing is that in our country
there are no rigorous and hard and fast rules in remittance inflow into the
country but there are a lot of stringent rules and regulations in money outflow to
another country.

In the following there are given the key learnings that I have learnt from
working in the remittance section.

My key Learning:

● Understanding Remittance Processes

● Compliance and Regulatory Understanding
● Types of Remittances
● Calculation of 2.5% interest of the remittance inflow
● Customer Service and Communication
● Exchange Rate Management
●

During my internship at Janata Bank Ltd., Farmgate Corporate Branch, I got the
opportunity to work in the Remittance Section. This experience provided me
with valuable insights into the intricate processes of handling remittances, a
critical component of the banking sector.

My primary goal was to gain a comprehensive understanding of how remittance

services operate within a banking environment, from initiation to settlement. I
aimed to acquire hands-on experience in processing different types of
27
remittances, including both inbound and outbound transactions. Another key
objective was to assimilate the some imperative requirements that conform to
the standards governing remittance operations to ensure the secure and legal
transfer of funds.

I learned about various types of remittances, including international inward

remittances from foreign countries, outward remittances for overseas payments.
I obtained insights into the processing of international inward remittances,
where funds are transferred from foreign countries to beneficiaries in
Bangladesh. This often involves individuals sending money to their families or
businesses receiving payments from overseas clients. On the other hand, I have
also understood the outward remittance process, where individuals or businesses
in Bangladesh initiate transactions to transfer funds abroad for various purposes.
This could include payments for imports, tuition fees, or other international
financial obligations.

Why remittance decreases: It is true that every year the amount of remittance
inflow is decreasing gradually. Remittance is a prominent source of foreign
reserve. So, the Government has always a headache to mushroom the amount of
remittance inflow. As per my thorough observation, I have found several
reasons for decreasing the amount of remittance. One of the main reasons is that
when the remitters intend to send back their earnings to their home country, then
they face several hurdles and they have to comply with many rigorous rules and
regulations. The thorough compliance of stringent procedures is very repellent
to the remitter. That is why they do not want to follow such a painful process of
sending back their earnings. And they are not bound to comply with such a
process. And then, not getting any other way, they become compelled to take
shelter in an illegal way that means Hondi, which is so easier rather than
following the banking process. But, on the other hand the government has no
way but to follow and maintain the stringent rules and regulations. Because,
some unscrupulous people always remain eager to seize the opportunity of
money laundering in the name of money outflow. Actually these stringent
processes of cash outflow to another country are rigorously observed only to
avert money laundering.

28
How to increase remittance: During my internship program in the remittance
section, I realized one thing that the expatriate Bangladeshis are fond of sending
back their earnings to their home country through using an illicit Hondi system.
By doing such, Bangladesh gets deprived of foreign reserves that are
indispensable for a country’s survival to importation. As per the Bangladesh
Bank annual report, it was observed that in the recent year the average
remittance flowed into the country 51% via banking system or legal system and
another 49% of the total remittance flows into directly through Hondi or illegal
way. By which every year we lose a half of our total remittance. To avert this
anomaly, the Bangladesh government has taken two groundbreaking initiatives
that 2.5% interest will be given on the amount of remittance inflow into the
country. Another one is the increase of the dollar rate. That means in case of
remittance inflow, the remittee will get an additional one or two taka against
each dollar. These two incentives forcibly persuade the expatriates to send back
their earnings through the legal banking system.

In the aspect of exchange rate management in the remittance section of Janata

Bank PLC, I have learnt some effective measures about how to determine and
manage exchange rate in the context of remittance transactions, exploring how
rates are determined and managed by the bank. I learned about the various
factors that influence exchange rates, including market demand and supply,
economic indicators, geopolitical events, and central bank policies. I have also
learnt some processes involved in monitoring market rates in real-time, enabling
the bank to make informed decisions on setting exchange rates for remittance
transactions. I understood the strategies employed by Janata Bank to mitigate
risks associated with exchange rate fluctuations, including the use of hedging
instruments. I have got perceptions about the fee structures associated with
remittance transactions, such as service charges, commission fees, and any other
applicable costs. In addition, I learned about the importance of transparent
communication with customers regarding exchange rates, ensuring they are
well-informed about the costs and terms associated with their remittance
transactions.

29
My internship in the Remittance Department at Janata Bank has been an
enlightening and enriching experience. It provided me with a deeper
understanding of the pivotal role remittance services play in the global financial
system and their significance in facilitating both domestic and international
transactions. I am grateful for the guidance and support provided by the team at
Janata Bank, and I am confident that the knowledge gained during this
internship will contribute significantly to my professional growth in the banking
and financial sector.

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 Fifth Week

In the fifth week I have learnt about foreign exchange reserve management through
working in the foreign exchange department in Janata Bank, Framgate Corporate
Branch. The activities of foreign exchange reserve management are very crucial for
the corresponding bank officials. That is why the fifth week took severe
importance to properly understand foreign exchange reserve management. Actually
to say, foreign exchange reserve is deemed as an indispensable component for the
survival of a country in the international market.

In the following, the key learnings of the fifth week are given in a nutshell and
then described thoroughly.

My Key Learnings:

● Understanding Foreign Exchange Reserves

● Risk Management in Reserve Management
● Composition of Foreign Exchange Reserves
● Role of Central Bank in Reserve Management
● Market Monitoring and Analysis
● Risk Mitigation Strategy

My primary objective was to gain a comprehensive understanding of what

foreign exchange reserves are and their significance in ensuring financial
stability for Janata Bank. I aimed to acquire practical knowledge of the
operational processes and strategies employed by the bank in managing its
foreign exchange reserves. I tried to understand how Janata Bank mitigates risks
associated with foreign exchange, including currency risks and market
fluctuations, to safeguard the value of its reserves.

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The composition of Janata Bank's foreign exchange reserves includes the
various currencies and assets held to maintain liquidity and stability. Foreign
exchange reserves play a pivotal role in safeguarding a bank's financial stability
and ensuring liquidity in the face of economic uncertainties. The primary
objective of this internship was to understand the composition of Janata Bank's
foreign exchange reserves, encompassing the allocation of currencies, asset
classes, and the strategic considerations.

One of the fundamental methods observed was the strategic diversification of

the foreign exchange reserve portfolio. Janata Bank employs a well-thought-out
allocation strategy to spread risk across various currencies and asset classes.
Practical exposure revealed the meticulous process of currency allocation,
considering factors such as trade relationships, economic indicators, and
potential risks associated with specific currencies. This method aims to optimize
the balance between risk and return.

The bank incorporates various asset classes in its reserve portfolio, including
government securities, bonds, and other financial instruments. This method is
designed to achieve a balance between maximizing returns and maintaining
sufficient liquidity.

An essential practical approach involves continuous monitoring of market

trends and economic indicators. The bank employs sophisticated analytical tools
to assess market conditions, enabling timely adjustments to the reserve
composition in response to changing economic landscapes.

During this period, my focus was on comprehending the nuanced role of the
Central Bank in reserve management. This report aims to provide an in-depth
analysis of the practical methods and strategies employed by Janata Bank in
alignment with the directives of the Central Bank.
The reserve management policies of Janata Bank are significantly influenced
and guided by the directives and oversight of the Central Bank, Bangladesh
Bank. This internship sought to unravel the practical methods adopted by Janata
Bank under the broader umbrella of the Central Bank's role in managing
reserves.

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A fundamental aspect of Bangladesh Bank's role is the formulation of policies
that govern reserve management. During the internship, I observed how Janata
Bank aligns its strategies with the guidelines set forth by Bangladesh Bank to
ensure adherence to national financial objectives.

Bangladesh Bank actively supervises and regulates the activities of Janata Bank
in managing reserves. The practical methods include regular audits, inspections,
and communication channels to ensure compliance with regulatory standards
and best practices.

A crucial method involves constant communication between Janata Bank and

Bangladesh Bank. During my internship, I witnessed the importance of
collaborative discussions, consultations, and feedback sessions, ensuring a
shared understanding of reserve management goals and challenges.
Practical methods also include a continuous focus on market intelligence and
research. Janata Bank engages in comprehensive market analysis, considering
economic indicators, global financial trends, and geopolitical factors to make
informed decisions in line with the Central Bank's objectives.

This internship has provided a profound understanding of the relationship

between Janata Bank and Bangladesh Bank in the realm of reserve
management. The practical methods observed, from policy implementation to
collaborative communication, underscore the significance of a well-coordinated
effort in achieving national financial objectives. I am grateful for the guidance
and mentorship provided by the professionals at Janata Bank, and this
experience has significantly contributed to my appreciation of the Central
Bank's pivotal role in shaping reserve management practices.

In the case of Risk Management strategies there are some practical exposure
involved in monitoring foreign exchange markets, analyzing trends, and making
informed decisions to optimize reserve holdings. As well as I have learnt about
the different risk mitigation strategies employed by Janata Bank, including
diversification of assets and the use of financial instruments to hedge against
currency and market risks.

33
My internship experience in the Foreign Exchange Department at Janata Bank
has been both enlightening and enriching. It provided me with a deep
understanding of the critical role foreign exchange reserves play in maintaining
financial stability and the strategies employed to manage associated risks. I am
grateful for the guidance and support provided by the team at Janata Bank, and I
am confident that the knowledge gained during this internship will contribute
significantly to my understanding of central banking and foreign exchange
reserve management in the future.

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 Sixth Week

In the sixth week of my internship program I have worked in anti-money

laundering section. The term money laundering is quite related to the foreign
exchange department. Because many unscrupulous people in our country always
remain eager to seize the opportunity of transferring our own foreign reserve out of
the country in an illegal way. Actually these heinous proceedings happen in the
name of transferring remittance and illegal importation. Janata Bank always
remains against the money laundering activities and tries to avert these illegal
activities. The activities of the section are very interesting and challenging. I
enjoyed working in this section. In the following I am going to mention some key
learnings that I have learnt from working in the section.

My Key Learnings:

● Transaction Monitoring
● Reporting Mechanisms for Suspicious Activities
● Local Risk Assessment
● Watch list Screening
● Data Analytics

I undertook an internship at Janata Bank Ltd., Farmgate Corporate Branch. The

focus of this internship was on comprehending the complexities of money
laundering and the rigorous measures implemented by Janata Bank in adherence to
Anti-Money Laundering (AML) practices. This report provides a comprehensive
overview of my learning experiences, emphasizing practical methods and insights
gained during my tenure.

Janata Bank basically tries to unveil the original source of money to avert the
money laundering crime when the depositor comes to bank to deposit their money.
If the deposit amount is in a great amount then the bank keeps the depositor under
supervision and all of his or her transactions are kept under the harsh surveillance.

35
According to the Bangladesh Bank declaration, no bank can give permission to the
unauthorized local importers to trade more than a certain amount. Because some
nefarious businessmen transfer the country’s foreign reserve to the overseas instead
of reserving the country's interest in the name of importation. So, Banks impose
restrictions on imports for a larger amount of imports .

Money laundering causes a significant threat to the integrity of financial

institutions and the broader economy. My internship at Janata Bank aimed to
deepen my understanding of the methods employed in the Money Laundering and
Anti-Money Laundering Department, emphasizing the practical measures taken to
combat this financial crime.

A fundamental aspect of my internship involved familiarizing me with the AML

regulatory framework in Bangladesh. I learned about the guidelines and directives
issued by regulatory bodies, including the Bangladesh Bank and the Financial
Intelligence Unit. Practical methods included hands-on experience in implementing
Customer Due Diligence procedures. I learned how Janata Bank ensures thorough
customer identification, verification, and risk assessment to prevent illicit financial
activities. I gained experience about the complexity of transaction monitoring as a
key AML practice. This involved understanding the tools and technologies
employed to detect and investigate unusual or suspicious transactions, ensuring
timely intervention. My internship provided practical exposure to the reporting
mechanisms for suspicious activities. I learned about the processes involved in
identifying, documenting, and reporting suspicious transactions to the relevant
authorities. I observed the importance of continuous training and awareness
programs within the bank. Janata Bank invests in educating employees about
anti-money laundering risks, red flags, and evolving techniques used by money
launderers.

I encountered many challenges during the internship included staying abreast of

evolving money laundering techniques and ensuring seamless integration of AML
measures. Solutions involved continuous training, technological advancements,
and collaborative efforts within the organization.

36
My internship at Janata Bank's Money Laundering and Anti-Money Laundering
Department has been a transformative experience. The practical methods observed,
combined with a strong regulatory framework and proactive measures, showcase
the commitment of Janata Bank to combat money laundering effectively. I am
grateful for the guidance and mentorship provided during my internship, and this
experience has equipped me with invaluable insights into the practical
implementation of anti-money laundering measures in the financial sector of
Bangladesh.

Additional Learning :

In the last moment of my internship program, I have learnt some theoretical

knowledge engaged in international trade. This learning cannot be ignored and
very significant for me as a student of International Business. In the following
some theoretical concepts related to international trade are described in a nutshell.

SWIFT: SWIFT (Society for Worldwide InterBank Financial

Telecommunication) was formed in 1973 with a view to conducting International
Trade, Transaction, and Bank to Bank Communication. By collecting messages,
International trade and transactions along with LC can be accomplished quickly
through SWIFT. Now SWIFT is being used in every bank and commercial
institution as being a right and reliable organization. Every day the use of SWIFT
is being rampant and well firm. Every organization has a workstation for using
SWIFT where messages from different countries reach and go out.

Electronic Fund Transfer (EFT): Remittances sent to our country from

different countries of the world through electronic devices are called EFT.
Although the use of EFT to send remittance money to the beneficiary in the
shortest time in the developed countries of the world has been introduced long ago,
this method has been introduced in our country.

37
MoneyGram: MoneyGram service system is a method of sending money
quickly from abroad. Many people of Bangladesh are working abroad. Various
banks have introduced MoneyGram services to speed up remittances sent from
abroad.

Arbitrage: There is a way of earning profits through the simultaneous purchase

and sale of foreign currency. Making profit by simultaneously buying and selling
foreign currency at different centers to fix different exchange rates is called
arbitrage.

Foreign Currency Reserve: The gold, foreign exchange SDR and reserve
positions held by the central bank of a country are what we call foreign exchange
reserves. Besides, commercial and other banks of the country keep some foreign
currency in cash or in foreign bank accounts. Important parts of foreign exchange
are US Dollar, British Pound, Euro, Canadian Dollar, Indian Rupee and other
foreign currencies.

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 Chapter-3
Critical Assessment of the Internship Work

The internship at Janata Bank PLC, Farmgate Corporate Branch, gave a

fantastic chance to get practical insights into the subject of foreign exchange,
bridging the gap between academic knowledge and real-world application. This
critical evaluation will go deep into the major components of the internship,
concentrating on the learning obtained, the connection of work assignments
with academic learning throughout my Bachelor of Business Administration
(BBA), and the efficacy of instruction in preparation for the organizational
tasks.

3.1 Learning from the internship:

The internship at Janata Bank PLC was an excellent experience that

substantially helped my professional advancement. One of the key learnings
was an in-depth grasp of the foreign exchange operations inside a financial
organization. From processing trade finance transactions to controlling foreign
exchange rates, the exposure to real-world circumstances boosted my
knowledge and abilities in the sector.

Moreover, the internship gave a chance to watch and participate in the

day-to-day activities of a financial organization. This experience helped me
understand the finer points of risk management, compliance processes, and the
need of keeping correct and up-to-date records in the foreign exchange
department.

Furthermore, connecting with seasoned individuals in the sector gave essential

insights into the industry's best practices and the issues encountered by financial
institutions in managing foreign exchange operations. Learning to handle the
complexity of international commerce and banking has extended my
perspective and increased my grasp of the global economic environment.

39
In addition to technical abilities, the internship also enhanced my soft skills,
such as good communication, collaboration, and time management. These
abilities are vital in a dynamic work environment and will surely serve me well
in my future career aspirations. Interaction with colleagues, clients, and
superiors during the internship helped me enhance communication and
interpersonal skills. These skills are vital for effective collaboration and
relationship-building in the workplace.

The internship provided a transformative learning experience, offering a

comprehensive understanding of various banking operations. From currency
exchange to trade finance, foreign exchange management, and anti-money
laundering practices, each week contributed to professional growth. The
guidance from Janata Bank professionals has equipped me with valuable skills
for future endeavors in the financial sector. The skills and knowledge gained
from your BBA internship will undoubtedly contribute to my success in your
future job life by making you a well-rounded and competent professional in the
field of business administration. Successfully completing a comprehensive
internship demonstrated the ability to take initiative, work independently, and
contribute to a team. These qualities boost confidence and make the student a
valuable asset in any job setting.

3.2 Relation of Work Assignments with Academic Learning

during BBA:

The job responsibilities during the internship at Janata Bank PLC were well
connected with the academic curriculum of my BBA degree. The theoretical
principles learnt throughout my studies were brought to life via practical
implementations in the foreign exchange department.

For instance, my academic lessons in Principles of Finance offered a basis for

comprehending the complexity of currency exchange rates and their influence
on commerce. The internship enabled me to apply these principles in real-world
circumstances, confirming and consolidating my comprehension of the subject
matter.
40
Similarly, classes of International Financial Management, Micro Economics and
Macro Economics were useful in learning the subtleties of risk assessment and
management within the context of foreign currency operations. The practical
experience obtained during the internship not only supported the academic ideas
but also supplied a nuanced viewpoint that textbooks frequently lack.

The synergy between academic learning and practical application was obvious
in several ways, such as the deployment of financial modeling tools to examine
possible risks linked with currency fluctuations. This connection between
academic knowledge and business activities was vital in bridging the gap
between theory and practice.

The internship allowed me as a BBA student to apply theoretical knowledge

gained in the classroom to real-world scenarios, fulfilling the gap between
academic concepts and practical implementation. Exposure to the professional
environment of Janata Bank helped me acclimate to corporate culture,
understand workplace dynamics, and develop a sense of professionalism,
crucial for success in any job.

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3.3 Difference and matches between internship job
learning and BBA program learning:

Difference between Internship Job Learning and BBA Program

Learning:

The key distinction between internship job learning and BBA program
learning lies in the transition from theoretical understanding to practical
application. The BBA program primarily offers classroom-based
theoretical education, providing foundational knowledge and concepts. In
contrast, the internship at Janata Bank PLC's Foreign Exchange
Department immerses the student in a real-world banking environment,
allowing for hands-on experience and the practical application of the
theoretical concepts learned during the BBA program. This shift from
theory to practice enhances the student's adaptability, interpersonal skills,
and understanding of operational intricacies within a professional setting.

Matches between Internship Job Learning and BBA Program

Learning:

There are also significant matches between internship job learning and
BBA program learning. Both emphasize the importance of financial
concepts, although in different contexts. The BBA program provides
theoretical knowledge, while the internship translates these concepts into
practical scenarios within the banking sector. Additionally, both settings
contribute to the student's understanding of risk management, compliance,
and documentation. The internship complements the BBA program by
reinforcing theoretical knowledge with practical application, fostering a
more comprehensive and well-rounded skill set for the student's future
endeavors in the field of business administration.

42
3.4 Evaluation of Effectiveness of Teaching to the Assignment
in the Organization.

The efficiency of education in preparing for the organizational activities during

the internship at Janata Bank PLC was remarkable. The academic program
provided a solid theoretical foundation, and the teaching approaches were
relevant to the actual issues encountered in the foreign exchange department.

The coursework of International financial Management, for example, equiped me

with the essential knowledge to comprehend the complicated transactions and
regulations governing foreign exchange. The instructional approaches, which
included case studies, simulations, and interactive discussions, enabled me to
approach real-world issues with a critical and analytical mentality.

Additionally, the emphasis on study and analysis in academic tasks proved

advantageous when faced with evaluating the potential hazards involved with
currency exchange. The ability to conduct thorough research, analyze data, and
make educated decisions were abilities established through academic lessons that
directly translated into effective performance in the organizational setting.

The assistance and direction from academic mentors and instructors were also
crucial in preparing me for the challenges faced during the internship. The open
lines of communication and encouragement to seek clarification on concepts not
only promoted a positive learning atmosphere but also instilled confidence in
applying theoretical knowledge to practical challenges.

Furthermore, the internship experience underscored the significance of continual

learning and adaptation. The dynamic nature of the financial industry necessitates
experts to be abreast of the newest advancements, and the foundation created
throughout my BBA program equipped me to embrace a culture of lifelong
learning. Building relationships with professionals at Janata Bank enhanced my
networking skills and professionalism. These qualities are crucial for career
growth, job opportunities, and establishing a positive reputation within the
industry.

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 Chapter-4

Conclusion

Internship in Commercial Bank is always an opportunity of learning how the

banking sectors operate and how money management system accomplishes. The
last 45 days were quite intriguing to do an internship at Janata Bank PLC,
Farmgate Corporate Branch(2). Finding out the nature of actual banking
activities helps me cope with the banking profession earlier in my job life. This
internship program, in first, has been arranged for gaining knowledge of
practical banking and to compare this practical knowledge with theoretical
knowledge. Only three sections are covered in the internship program, it is not
possible to go into depth of each activity of the branch because of time
limitations. However, the highest effort has been given to achieve the objectives
of the internship program. Being an intern of JBL, I obtained much knowledge
and experiences these days. I am confident that this 45 days internship program
at JBL will definitely help me to realize my further career in the job market.

Although there are lots of local and foreign banks in Bangladesh, JBL is
promising commercial banks among them. In this competitive market JBL has
to compete not only with the other commercial banks but also with the public
Bank. JBL is more capable of contributing towards economic development as
compared with other banks. JBL Invested more funds in export and import
business. JBL is now enhancing its Foreign Exchanges department with quality
people as well as system.

I had the privilege of working with a team of dedicated professionals who

demonstrated a deep understanding of global financial markets and a
commitment to delivering high-quality services to clients. The experience
allowed me to apply theoretical knowledge gained during my academic studies
to real-world scenarios, enhancing my practical skills and analytical abilities.

44
 As I conclude my internship, I am grateful for the exposure and learning
opportunities provided by Janata Bank Ltd. This experience has not only
deepened my understanding of foreign exchange activities but has also equipped
me with skills that will undoubtedly prove invaluable in my future career
endeavors within the finance and banking sector.

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 Reference
● Foreign Trade and Foreign Remittance Book ( Written by Md. Abdul Gofur)
● Janata Bank Ltd, website: www.janatabank-bd.com
● Janata Bank Ltd, Annual Report-2022
● Bangladesh Bank Guideline for General Banking
● Different ledger books of the branch.
● Bank Management and Financial Services By Peter S. Rose, eighth Edition
● Financial Markets and Institutions, Jeff Madura.
● WWW. Google.com

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