INTERNSHIP REPORT

Foreign Exchange activities of Mercantile

Bank Limited, Rajshahi Branch.

NORTHERN
UNIVERSITY
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Internship Report
ON
Foreign Exchange activities of Mercantile Bank
Limited, Rajshahi Branch.

Supervised By
Md. Tauhidur Rahman
Lecturer
Bachelor of Business Administration
Northern University Bangladesh

Submitted By
Md. Samsul Alam
ID No: BBA 070150250
Major in Marketing
Bachelor of Business Administration
Northern University Bangladesh

Date of submission: 27/ 12/2010

N O RT H E R N
UNIVERSITY
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Student Declaration

I, Md. Samsul Alam, ID No: BBA070150250 declare that the presented internship
report in Foreign Exchange activities of Mercantile Bank Limited, Rajshahi
Branch. Submitted as requirements of Bachelor of Business Administration of
Northern University Bangladesh were prepared by me. I tried my best to collect
effective information that made report specified and original. This not submitted for
any other course, degree, and fellowship. I uniquely do whole report.

Signature

Md. Samsul Alam

ID No: BBA 070150250
Major in Marketing
Department of Business Administration
Northern University Bangladesh

iii

Certification

This is to certify Md. Samsul Alam, bearing ID No: BBA070150250 that

the report entitled on Foreign Exchange activities of Mercantile Bank
Limited, Rajshahi Branch. submitted as requirements of Bachelor of
Business Administration of Northern University Bangladesh. Under my
supervision and guidance he was collected of the information in report this
specific and correct. The student uniquely did whole report and the paper is
accepted in terms of from and quality.

Signature

Md. Tauhidur Rahamn

Lecturer
Department of Business Administration
Northern University Bangladesh

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Letter of Transmittal
Date: 27 /12/2010
Md. Tauhidur Rahman
Lecturer
Department of Business Administration
Northern University Bangladesh
Subject: Submission of Internship Report on Foreign Exchange activities of
Mercantile Bank Limited, Rajshahi Branch.
Dear Sir,
With massive delight, I am submitting my internship report that is a report on Foreign
Exchange activities of Mercantile Bank Limited, Rajshahi Branch. provided by
Mercantile Bank Limited Rajshahi Branch. This internship program has provided me
theoretical and practical knowledge on the Human finance portion conducted by the
bank. To prepare this report, I have performed face-to-face discussion with the officers
of the bank to gather necessary data and papers. It was a nice experience that I have
practically performed and observed the general banking activities with great passion.
This report will assist me deeply in many ways in practical field.
Therefore, I pray and hope that you would be kind enough to accept the report. I would
like to mention that, might be some mistakes are in this report.
I shall be obliged to clarify any matter or to provide any further information regarding
this report.
Sincerely yours,
Md. Samsul Alam
ID No: BBA 070150250
Major in Marketing
Department of Business Administration
Northern University Bangladesh

Acknowledgement
At first, I am highly grateful to Al-mighty Allah who has provided me with all kinds of
opportunity to complete the Internship Program.
It is a great pleasure of having the opportunity of expressing my deepest sense of
gratitude, grateful thanks and sincere appreciation to my honorable supervisor, Md.
Tauhidur Rahman, Lecturer, Department of Business Administration, Northern
University Bangladesh for his constant guidance, excellent co-operation and inspiration
without which this work would not have been possible.
I would like to express thanks to the Institute for sponsoring such an academic work. As
well as I am also indebt to the management, Mercantile Bank Ltd. for the internship at
their organization who allowed me and supplied me necessary information.
I would like to convey my sincere gratitude to Md. Zahangir Alam, First Vice President
& Head of Branch.
I am also highly obliged to Ashim Kumer Das, Principal officer & Manager Operation
for his constant guidance and valuable suggestion from time to time.
I acknowledge my indebtedness to Md. Rustom Ali, Principal officer & Credit In
Charge.
I would like to heartiest acknowledged to Shah Md. Mizanur Rahman, Principal Officer
& In charge, Foreign Exchange Department, Md. Moshiur Rahman, Officer, Foreign
Exchange Department and Md. Rabiul Islam, Officer, Accounts Department those who
helped me to draft this report successfully.
My heartiest thanks are due to those friends who help me to prepare this report.

Muhammad Sajedul Islam

ID No: BBA 060350219
Major in Marketing
Department of Business Administration
Northern University Bangladesh

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Abbreviations
A/C
ATM
CRM
FCB
FGB
LC

Account
Automated Teller Machine
Customer Relationship Manager
Foreign commercial Bank
First Generation Bank
Letter of Credit

NGO

Non Government Organization

Kyc

Known your customer

SB

Specialized Bank

MBL

Mercantile Bank LimitedBank

SWOT

Strengths: Weakness: Opportunity: Threat:

DD
SDR

Demand Draft
Security Deposit Receipt

T.T

Telephonic Transfer

P.O

Pay Order

SB

Saving Account (121,129)

CD

Current Account (111)

DBDS

Double Benefit Deposit Scheme (610)

FD

Fixed Deposit (410,411,412)

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Table of Contents
Chapter-One
Introduction
Introduction.................................................................................................
Objective of the study.................................................................................
Background of the study.............................................................................
Data collection process...............................................................................
Data analysis process..................................................................................
Scope of the study.......................................................................................

1
2
3
3
3
3

Limitation of the study................................................................................

Methodology of the study...........................................................................

Chapter-Two
Organizational Profile
Introduction.................................................................................................
Historical Background.................................................................................
Objective......................................................................................................
Mission of Mercantile Bank Limited..........................................................
Vision of Mercantile Bank Limited.............................................................
Objectives of Mercantile Bank Limited......................................................
Values of Mercantile Bank Limited............................................................
Strengths of Mercantile Bank Limited........................................................
Corporate Structure Of Mercantile Bank Limited.......................................
Branches of Mercantile Bank Limited........................................................
Trends of Branch Expansion of Mercantile Bank LTD..............................

Chapter-Three
Rajshahi Branch of Mercantile Bank Ltd

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6
6
6
7
7
7
7
8
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10
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General Banking Activity of Mercantile Bank limited............................

DEPOSIT..................................................................................................
Demand deposits.......................................................................................
Current Account........................................................................................
Documents required for opening SB/CD/STD accounts..........................
Saving Account.........................................................................................
Time Deposits...........................................................................................
Short Term Deposit (STD)........................................................................
Fixed Deposit Receipt (FDR)...................................................................
Rules for Premature Encashment of Fixed Deposit Receipt.
Remittance.................................................................................................
Demand Draft (DD)..................................................................................
Security Deposit Receipt (SDR)...............................................................
Telephonic Transfer (TT)..........................................................................
Pay Order (P.O).........................................................................................
Online transaction.......................................................................................
Advice.........................................................................................................
Bills.............................................................................................................
Cash............................................................................................................

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20
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Chapter- 4
Services of Mercantile Bank Limited.
Deposit Schemes.......................................................................................
Double Benefit Deposit Scheme (DBDS).................................................
Family Maintenance Deposit (FMD)........................................................
Mashik Sanchaya Prokalpa (MSK) Or Monthly Savings Scheme
(MSS).........................................................................................................
Quarterly Benefit Deposit Scheme............................................................
Times Benefit Deposit Scheme.................................................................
Various Credit Schemes............................................................................
Consumers Credit Scheme (CCS).............................................................
Doctors Credit Scheme..............................................................................
Rural Development Scheme
Lease Financing.........................................................................................
Personal Loan............................................................................................
Home Loan................................................................................................
E T P / Bio-Gas / Solar Energy Loan........................................................
Krishi / Polli Loan.....................................................................................

Chapter- Five
Loan Section
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32
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Introduction....................................................... .......................................
Classifications of Loans & Advances.......................................................
Different categories of loan......................................................................
Continuous loan....................................................... ................................
Term loan....................................................... ..........................................
Personal Loan...........................................................................................
SME Loan.................................................................................................
Loan disbursement procedure...................................................................
The bankers create charge on the security by following methods...........
Classification of securities........................................................................

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47
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48
48
49
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Chapter-Six
Other Services of Mercantile Bank Limited
Credit Card................................................................................................
Locker.......................................................................
Phone Banking..........................................................................................
Any Branch Banking................................................................................
Foreign Currency Account........................................................................
Foreign currency.......................................................................................
Import/ Export...........................................................................................
Letter of Credit..........................................................................................
Parties related to a letter of credit.............................................................
The parties of L/C....................................................................................
Import Procedures......
Scrutinization of L/C Application.............................................................
Accounting Treatment in case of L/C opening........................................
Presentation of the documents..................................................................
Examination of shipping document..........................................................
Amendment of the Letter of Credit..........................................................
Retirement of shipping document.............................................................
Payment procedure of the import documents...........................................
Number of Foreign Correspondent/Bank.................................................

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Chapter-Seven
Finding & Analysis
Findings...................................................................................................

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Analytical Part..........................................................................................
Some Threats for Mercantile Bank Ltd...................................................

66
67

Chapter-Eight
Finding & Analysis
Conclusion................................................................................................
Recommendation......................................................................................
Bibliography.............................................................................................

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Executive Summary
anking service in Bangladesh is characterized as a highly competitive and highly
regulated sector. With a good number of banks already in operation and a few more in
the pipeline, the market is becoming increasingly competitive by the day.
With the global slowdown in the face of rising competition, the commercial banks are
constantly looking for ways to develop their market and product offers to remain ahead
of others. A significant amount of regulation by Bangladesh Bank prevents the scope of
introducing newer products in to the market and thereby restricts a banks ability to
outperform others with a diversified product range.
For over 11 years, Mercantile Bank Limited has been an integral part of Bangladesh
growth and economic development.
Among the marketing activities of Mercantile Bank Limited especially sales activity
takes in a position to satisfy the personal needs of its privileged customers and provides
exclusive personalized services with a new level of care and attention in all their
financial dealings with them.
Chapter one is the introductory part of the report. In this section background of the
report, objectives of the report, scope of the study, vision of the Bank, mission of the
bank, limitations of the study and methodology of the report.
Chapter two portrays the over view of the Mercantile Bank Limited. It chapter
includes back ground of the organization, branch expansion, information technology

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(IT) & Automation, foreign correspondents, objectives of the bank, branches

background, total organization structure, Sales Department hierarchy etc.
Chapter three contains About Rajshahi Branch, Some features, and financial

performance, Existing Services of MBL.

Chapter four contains Product and services of Mercantile Bank Limited.
Lastly, chapter Five includes Findings, Recommendations, and Conclusion &
Bibliography

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