Opening, Lodgment and Retirement Procedures and Performance of Prime Bank Limited
An Internship Report On
Letter Of Credit Opening, Lodgment And Retirement Procedures And Performance LimitedOf Prime Bank Limited- An Analysis
A Report Submitted In Partial Fulfillment Of The Requirements For The Degree Of Bachelor Of Business Administration
Supervised By
Md. Mehadi Masud Lecturer Faculty of Business Studies Department of Accounting & Information Systems University of Dhaka
Prepared By
Mohsina Akter Roll-11124 Section-B, Batch-11 Faculty of Business Studies Department of Accounting& Information Systems University of Dhaka
November 10, 2009
November 10, 2009 Md. Mehadi Masud Lecturer Department of Accounting & Information System, University of Dhaka.
Subject: Submission of Internship Report.
Dear Sir,
With due respect, me, Mohsina Akter, would like to inform you that, it is a great pleasure for me to submit the report on “LC Opening, Lodgment, Retirement Procedures and Performance of Prime Bank Ltd: An Analysis”, as a requirement for BBA program.
I have tried my best to submit a good report with as much information as could gather during the short time span allotted for preparing the report. There might be some error through oversight in the report. I sincerely regret for such unintentional errors. I would be grateful to you if you kindly consider my unintentional mistakes.
I acknowledge with thanks the wholehearted support & kind guidance received from you. So I hope that you would be kind enough to accept my Internship Report & oblige thereby.
Thank you again for your heartiest co‐operation.
Yours sincerely,
Mohsina Akter Roll-11124 Section-B, Batch-11 Dept. of Accounting and Information System University of Dhaka
Acknowledgement
I would like to acknowledge with considerable appreciation those who have contributed to complete my internship program and final internship report. First of all I would like to convey my salutation to Almighty Allah for enabling me to complete the report with sound health. My special gratitude and thanks
Letter Of Credit Opening, Lodgment And Retirement Procedures And Performance LimitedOf Prime Bank Limited- An Analysis
A Report Submitted In Partial Fulfillment Of The Requirements For The Degree Of Bachelor Of Business Administration
Supervised By
Md. Mehadi Masud Lecturer Faculty of Business Studies Department of Accounting & Information Systems University of Dhaka
Prepared By
Mohsina Akter Roll-11124 Section-B, Batch-11 Faculty of Business Studies Department of Accounting& Information Systems University of Dhaka
November 10, 2009
November 10, 2009 Md. Mehadi Masud Lecturer Department of Accounting & Information System, University of Dhaka.
Subject: Submission of Internship Report.
Dear Sir,
With due respect, me, Mohsina Akter, would like to inform you that, it is a great pleasure for me to submit the report on “LC Opening, Lodgment, Retirement Procedures and Performance of Prime Bank Ltd: An Analysis”, as a requirement for BBA program.
I have tried my best to submit a good report with as much information as could gather during the short time span allotted for preparing the report. There might be some error through oversight in the report. I sincerely regret for such unintentional errors. I would be grateful to you if you kindly consider my unintentional mistakes.
I acknowledge with thanks the wholehearted support & kind guidance received from you. So I hope that you would be kind enough to accept my Internship Report & oblige thereby.
Thank you again for your heartiest co‐operation.
Yours sincerely,
Mohsina Akter Roll-11124 Section-B, Batch-11 Dept. of Accounting and Information System University of Dhaka
Acknowledgement
I would like to acknowledge with considerable appreciation those who have contributed to complete my internship program and final internship report. First of all I would like to convey my salutation to Almighty Allah for enabling me to complete the report with sound health. My special gratitude and thanks
Bibliography: Publications 1. Bangladesh Bank Published Bank Statistics. 2. Guidelines for Foreign Exchange Transactions Bangladesh Bank. 3. Lodgment and Retirement of import bills under documentary letter of Credit, Prime Bank Training Institution.. Head Office Dhaka. 4. Shah Md. Ahsan Habib & Md. Mohiuddin Siddique, Reading Materials on International Trade Payment and Foreign Exchange, March,2005. 5. Statements of affairs (Daily) Prime Bank Limited, SBC Tower Branch. 6. Annual Report of PBL. 7. The Bangladesh Bank (Nationalization)) Order, 1972. 8. UCPDC-500, ICC publication, 1993. Internet 1. http://www.prime-bank.com 2. http://www.prime-bank.com/index.htm 3. http://www.wiwipedia.org/wiki/Letter_of_credit#How_it_works 4. http://www.answers.com/topic/letter-of-credit Appendices 1. Schedule of Charges on Foreign Exchange Related Transactions: Particulars Document Handling Charge SWIFT Charges Commission TK.1500.00 TK. 3000.00 Minimum TK. 500.00 or 0.5% of L/C value whichever is higher Advising of bank L/Cs to the local beneficiary Advising charge- Local L/Cs Amendment Advising Transfer of L/Cs Negotiation commission for export bills in foreign currency Negotiation commission for export bills in local currency Adding confirmation to export L/Cs by us. Courier Charge (Except India) Courier (India) PRC Certificate Exp issuing charge LCAF issuing charge TK. 500.00 0.25% of L/C value TK.1500.00 TK. 300.00 TK. 500.00 TK. 200.00 TK. 100.00 TK. 1000.00 TK. 1000.00 Nil 0.2% on document value TK. 1000.00 Charges 2. Indent or Pro forma Invoice Indent or Pro forma Invoice is the sale contract between seller and buyer in import- export business. There is slight difference between indent and Pro forma invoice. The sales contract, which is direct correspondence between importer and exporter, is called Pro forma invoice. There is no intermediary between them. On the other hand, there may be an agent of exporter in importer’s country. In this regard, if the sale contract is occurred between the agent of exporter and importer then it is called indent. 3. Terms Relating to the Date in the Letter of Credit When a credit is valid "for one month", ' 'for six month", etc., the period during which the credit is to run will be deemed to start on the date the credit is issued, unless otherwise stipulated (Article 42c of the UCP). In addition to expiry date, all credit calling for transport documents should be stipulate the time period in which the transport and other documents must be presented to the bank. If no such period is stipulated, bank will refuse documents presented to them later than 21 days after the date of shipment. In any event documents must be presented not later than the expiry date of the credit (Article 43a of the UCP). If the expiry date and/or the last date for the presentation of documents fall on a non -banking day, banks may accept documents presented on the day bank is reopened (Article 44a UCP).