Presentation on Foreign Exchange Barun
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Transcript of 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
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600
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800
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
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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