Exim Bank (Bangladesh)

Export-Import Bank of Bangladesh

Type	Public
Traded as	DSE: EXIMBANK CSE: EXIMBANK
Industry	Banking
Founded	August 3, 1999 (1999 -08-03)
Founder	Late Mr. Shahjahan Kabir
Headquarters	Dhaka, Bangladesh
Area served	72 branches in Bangladesh(2012)[1]
Key people	Mr Nazrul Islam Mazumder (Chairman of EXIM Bank.) Dr. Mohammed Haider Ali Miah (Managing Director of EXIM Bank) [2]
Services	Banking, Financial Services
Revenue	20,476,318,100 Taka (264.05 million USD) (2013)[3]
Operating income	8,284,131,946 Taka (106.82 million USD) (2013)[3]
Net income	3,256,947,071 Taka (41.99 million USD) (2013)[3]
Total assets	195,542,247,545 Taka (2013)[3]
Number of employees	1909 (2012)[1]
Website	www.eximbankbd.com

Export Import Bank of Bangladesh Limited (EXIM Bank) is one of the leading private commercial banks in Bangladesh. The Bank came into operation as a commercial bank on 3 August 1999 as per rules and regulations of Bangladesh Bank.^[4] From its establishment the bank was known as BEXIM Bank Limited.^[5] But due to legal constraints, the bank was renamed as EXIM Bank, which stood for Export Import Bank of Bangladesh Limited.

As of 2014 the bank has operations across the country with 80 branches and 45 ATM booths.^[6] By July 2004 the bank has migrated all of its conventional banking operation into Shariah based Islamic banking.^[7]

In 2010 the bank bought core banking software T-24 supplied by Swiss based IT company Temenos. They have taken initiatives to set up a widespread network of ATM Machines throughout the country as well as launched “EXIM KISHAN”, an agricultural product in line with the directive of Central Bank for agricultural investment.

Corporate social responsibility (CSR)^[8] is one of the most concerned areas of the Bank. The bank has contributed to humanitarian activities as well as social and cultural activities including undertaking scholarship programs. It has also came forward in beautification of Dhaka city, funding foot over-bridges^[9] at crowded points of the city and creating income generating welfare schemes.

Historical Background

EXIM Bank Limited was established in 1999 under the leadership of the Late Mr. Shahjahan Kabir, founder chairman who had a long dream of floating a commercial bank which would contribute to the socio-economic development of the country. He had a long experience as a good banker. A group of highly qualified and successful entrepreneurs joined their hands with the founding chairman to materialize his dream. Indeed, all of them proved themselves in their respective business as most successful star with their endeavor, intelligence, hard working and talent entrepreneurship.^[10] Among them, Mr. Nazrul Islam Mazumder became the new chairman after the founding chairman passed away.^[11] The bank starts functioning from 3 August 1999 with Mr. Alamgir Kabir, as the adviser and Mr. Mohammad Lakiotullah as the Managing Director. Both of them have a long time experience in the financial sector of Bangladesh. By their pragmatic decision and management directives in the operational activities, this bank has earned a secured and distinctive position in the banking industry in terms of performance, growth, and excellent management. The chairman of the bank, Mr Nazrul Islam Mazumder, pleaded to the government to change the rule against commercial banks not being allowed to have a branch outside the country. Later on in 2009, the bank made history for being the first privately owned bank to open an exchange house in the UK.^[12] The bank started its operation with an initial authorized capital of Taka 1 billion ($12.87 million USD) and paid up capital of Taka 225 million (2.9 million USD).^[13] Since then the authorized and paid up capital remained unchanged till December 2000. Later, both were increased from time to time and their amounts stood at Tk.16.12 billion ($207.31 million USD) and Tk.9.22 billion ($118.7 million USD) respectively on 31 December 2011.^[13]

Nature of the business

EXIM bank is the first bank in Bangladesh to have converted all of its operations of conventional banking into shariah-based banking, since July/2004.^[14] They offer banking services for Muslims and non-Muslims alike allowing the customers choice and flexibility in their savings and investments. The bank provides all kinds of Islamic banking services, as well as regular commercial banking services to its customers.

Shariah council

Islamic banking is guided by Islamic law which is known as Shariah principles. In particular, Islamic law prohibits the collection and payment of interest, which is known as RIBA. Generally, Islamic law also prohibits trading in financial risk (which is seen as a form of gambling) that are considered unlawful, or Haraam. The Islamic capitalism were developed between the eighth and twelfth centuries. Gold dinar was the base of monetary system of that economy. Mirza Basheer-ud-Din Mahmood Ahmad is known as the father of modern Islamic economics. He describe it in detail in his books, Nizame Nau, in 1942. In his book he proposed a banking system based on “Mudarabah” which is known as profit and loss sharing. At the moment the largest Islamic bank in the world is Bank Melli Iran.

The Board of directors has formed a Shariah Supervisory Board for the Bank. Their duty is to monitor the entire Bank’s transactional procedures, & assuring its Shariah compliance. This board consists of 11 members who are prominent ulemas, reputed bankers and eminent economists of the country. Professor Moulana Muhammad Salah Uddin is the Chairman of the council. The tasks of the Shariah supervisor in summary is replying to queries of the Bank’s administration, staff members, shareholders, depositors, & customers, follow up with the Shariah auditors and provide them with guidance, submitting reports & remarks to the Fatwa & Shariah Supervision Board and the administration, participating in the Bank’s training programs, participating in the supervision over the AlIqtisad AlIslami magazine, & handling the duty of being the General Secretary of the Board.

Corporate Culture

During the last two decades Corporate Culture has become an important theme in business as an intangible concept which clearly plays a meaningful role in corporations, affecting employees and organizational operations.^[15] It is not the only determinant of business success or failure, a positive culture can be a significant competitive advantage over organizations with which a firm competes. EXIM Bank Limited, as an amenable bank, believe if the employees identify with the culture, the work environment tends to be more enjoyable, which boosts morale and leads to increased levels of teamwork, sharing of information, and openness to new ideas.

Prime Operational Area

As a full-fledged Islamic bank in Bangladesh, EXIM Bank extended all Islamic banking services including wide range of saving and investment products, foreign exchange and ancillary services with the support of sophisticated IT and professional management. The investment portfolio of the bank comprises diversified areas of business and industry sectors.^[16][17] The sectors include textiles, edible oil, ready-made garments, chemicals, cement, telecommunication, steel, real estate and other service industry including general trade finance.^[18] The bank has given utmost importance to acquire quality assets and is committed to retain good customers rough customer relationship management and financial counseling. At the same time efforts have been made to explore/induct new clients having good potentiality to diversify and create a well established structured investment portfolio and to minimize overall portfolio risk.

Foreign Exchange Department

Foreign exchange is an important department of EXIM Bank Limited, which deals with import, export and foreign remittances. Foreign Exchange is an International Department of the Bank. It facilitates international trade through its various modes of services. It bridges between importers and exporters. This department mainly deals in foreign currency, that’s why it is called foreign exchange department.

This department is playing an important role in enhancing export earning, which aids economic growth and in turn it helps for the economic development. On the other hand, it also helps to meet those goods and service, which are most demandable and not adequate in the country.^[19]

Product & Services

Retail Banking

- Deposits - Investments - Cards - Internet Banking - SMS Banking - Locker Services

Corporate Banking

- Investments - Foreign Exchange & Trade Finance - Correspondent Banking - Import Finance - Export Finance

SME Banking (Small and medium enterprises)

- EXIM Uddyog^[20] - EXIM Abalamban^[21]

Agri Banking

- EXIM Kishan^[22]

Remittance

Foreign Remittance - Exim Exchange Company (UK) Ltd. - Exim Exchange Company (Canada) Ltd. - Exim (USA) Inc. - Exim Exchange (Australia) Pty. - SWIFT - International Operation

Corporate social responsibilities

The purpose of its banking business is, obviously, to earn profit, but the promoters and the equity holders are aware of their commitment to the society to which they belong. A chunk of the profit is kept aside and/or spent for socio-economic development through trustee and in patronization of art, culture and sports of the country. In past recent years the bank has supported the poor and meritorious students for smoothen their education. In 2007 about 80 students of different institutions like (DU, BUET, DMC, VNC, and NDC) have taken scholarship.^[23] The bank sponsored the “Beautification Project” of Dhaka mega city conducted by Dhaka City Corporation.^[24][25]

Activities of EXIM Bank Foundation

In recent years CSR has become a fundamental business practice and has gained much attention from all the concerned of larger companies of Bangladesh. EXIM Bank believes that a strong CSR program is an essential element in achieving good business practices and effective leadership. An organization's impact on the economic, social and environmental landscape directly affects their relationships with its stakeholders, in particular investors, employees, customers, business partners, government and communities. The country's long -standing traditions of respect for family and social networks and high value placed on relationships, social stability and education are well revered by EXIM Bank. In this connection, they established EXIM Bank Foundation in the year 2006 to carry out CSR activities in the most planned and orderly manner.

EXIM Bank Scholarship Program

EXIM Bank Scholarship Program was launched in the year 2006 with 61 poor meritorious students selected from different reputed educational institutions of Dhaka City including Government Laboratory High School, Viqarunnissa Noon School and College, Dhaka University, BUET, Dhaka Medical College, etc. Till April 30, 2013, they have enrolled as many as 2100 students from around 350 reputed educational institutions across the country.^[26]

EXIM Bank Agricultural University, Bangladesh (EBAUB)

The vulnerable features of Northern Bangladesh characterized by frequent river erosion, flood and drought, social inequalities in education & health, and migration affecting livelihoods of its poor inhabitants inspired the Bank for undertaking some initiatives for their assistance in advancement. Till then, there has been no existence of any private agricultural university in North Bengal, even though northern part of the country is densely populated and has enormous potential for agricultural development. A large portion of quality students having good results in SSC and HSC cannot get admission into public agricultural university every year. In essence, availability of admission would enable them to pursue higher education in agriculture. EXIM Bank Supports export import initiatives throughout the country. Thus, they have set-up EXIM Bank Agricultural University, Bangladesh(EBAUB),^[27] a private agricultural university at Chapainawabgang, Rajshahi, to be the first of its kind in Northern Bangladesh, to create greater opportunity of diversified and demand-driven education for the prospective medium income group candidates at their doorsteps, as well as to create an opportunity for conducting agricultural research to solve local problems.

EXIM Bank Hospital

A 5 storied building having 10,000 sft floor space at 840 Kazi Para, RokeyaSarani, Mirpur, Dhaka-1216 has been hired to set up Exim Bank Hospital.^[28] The decoration of this hospital is complete. A doctor has been recruited who is working as a resident director of the hospital. Other doctors and hospital staffs are also selected through recruitment notice.

Awards & Achievement

ICMAB Best Corporate Award 2013^[29]

International "BIZZ Award -2013"^[30]

"International Diamond Prize for Excellence in Quality" award^[31]

"World Finance" award 2013 - Best Islamic Bank, Bangladesh^[32]

References

Notes

See also

• Islamic banking

External links

• EXIM Bank Web site
• EXIM Bank Hospital Web site
• NASSA Group Web site

List of banks in Bangladesh Central bank Bangladesh Bank State-owned commercial banks Agrani Bank Sonali Bank Rupali Bank Janata Bank Private commercial banks AB Bank Limited Bangladesh Commerce Bank Limited Bank Asia Limited BRAC Bank Limited Dhaka Bank Limited Dutch Bangla Bank Limited Eastern Bank Limited Farmers Bank Limited IFIC Bank Limited Jamuna Bank Limited Meghna Bank Limited Mercantile Bank Limited Midland Bank Limited Modhumoti Bank Limited Mutual Trust Bank Limited National Bank Limited NCC Bank Limited NRB Bank Limited NRB Commercial Bank Limited NRB Global Bank Ltd One Bank Limited Prime Bank Limited Pubali Bank Limited South Bangla Agriculture and Commerce Bank Ltd Southeast Bank Limited Standard Bank Limited The City Bank Limited The Premier Bank Limited Trust Bank Limited United Commercial Bank Ltd Uttara Bank Limited Islamic Commercial Banks Al-Arafah Islami Bank Limited Export Import Bank of Bangladesh Limited First Security Islami Bank Limited ICB Islamic Bank Islami Bank Bangladesh Ltd Shahjalal islami bank Limited Social Islami Bank Limited Union Bank Limited Foreign commercial banks Bank Alfalah Citibank NA Commercial Bank of Ceylon Habib Bank Limited HSBC National Bank of Pakistan Standard Chartered Bank State Bank of India Woori Bank Specialized banks Bangladesh Krishi Bank Rajshahi Krishi Unnayan Bank Bangladesh Development Bank Ltd BASIC Bank Limited Probashi Kallyan Bank