“Analysis of Foreign Inward and Outward Remittance under local currency account of HSBC.”
Introduction
1.1 Report Origin “Analysis of Foreign Inward and Outward Remittance under local currency account of HSBC.” - is a connived depiction of the three month long internship program at the Foreign Remittance Department in HongKong and Shanghai Banking Corporation Ltd. 1.2 Background of the study: Hong Kong and Shanghai Banking Corporation (HSBC), Bangladesh were the most diversified banking service providers in Bangladesh, as they had
various products and services for the
customers. HSBC was always in the lookout for various financial opportunities. Towards this end, HSBC is intending to introduce new products and services of Payment and Cash Management for the corporate clients to serve them more efficiently & also they were intending to find what they were lacking in Payment & Cash Management services. 1.3 Objective of the study: The purposes of this report cognates the internship purpose. The internship objective was to gather practical knowledge and experience of the corporate working environment with the close approximation to the business firm and the experts who are leading and making strategic decisions to enhance the growth of a financial institution. To this regard this report is contemplating the knowledge and experience accumulated from internship program. With the set guidelines and proposal by the School of Business of International Islamic University Chittagong, Dhaka Campus and with the kind advice of both the Organization and Internship Supervisor this report comprise of an organization part and a project part.
The prime objective of the organization part is: •
To present an overview and brief introduction of HSBC.
•
The Specific objectives of the project part are:
•
To depict the Foreign operations by NSC, HSBC Bank Ltd, Motijheel branch.
•
To know deeply about Import, Export and Remittance.
•
To learn about the procedure of handling Inward & Outward Remittances by NSC (Network Services Centre), HSBC.
•
To make analysis of Inward & Outward Remittances through HSBC.
1.4 Scope The scope of this report is limited to literature review (consisting of banking environment of Bangladesh, overview of HSBC group and overview of HSBC Bangladesh), overview of Network Service Centre (NSC), foreign outward and inward remittance, its analysis and recommendation. In the main report discussed about the activities of Network Service Centre (NSC) of HSBC Bank Limited at its Motijheel office. Also discussed about foreign inward and outward remittance in detail. Made an analysis of Foreign Inward and Outward Remittances under local currency account of HSBC. Foreign inward and outward remittances under foreign currency account are excluded due to simplicity and restriction on data collection. Foreign remittances against Import and Export are excluded. 1.5 Methodology Both the primary as well as the secondary form of information was used to prepare the report. The details of these sources are highlighted below. 1.5.1 Primary Sources Major sources of primary information were discussions with Mr. A.T.M Afsaruzzaman Assistant Officer, HSBC and Other assistant officers at NSC, Motijheel Branch.
1.5.2 Secondary Sources
Sources of secondary data can be defined as: Internal Sources •
Bangladesh bank return report
•
Bank's Annual Report
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Group Business Principal manual
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Group Instruction Manual (GIM) & Business Instruction Manual (BIM)
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Prior research report
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Any information and literature regarding the Banking sector
External Sources •
Different books and periodicals related to the banking sector
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Bangladesh Bank Report
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Newspapers
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Website information
An Overview of HSBC Group 2.1 Brief History The HSBC Group is named after its founding member, The Hongkong and Shanghai Banking Corporation Limited, which was established in 1865 in Hong Kong and Shanghai to finance the growing trade between China and Europe. Thomas Sutherland, a
Hong Kong Superintendent of the
Peninsular and Oriental Steam Navigation Company helped to establish this bank in March 1865. Throughout the late nineteenth and the early twentieth centuries, the bank established a network of agencies and branches based mainly in China and South East Asia but also with representation in the Indian sub-continent, Japan, Europe and North America. The post-war political and economic changes in the world forced the bank to analyze its strategy for continued growth in the 1950s. The bank diversified both its business and its geographical spread through acquisitions and alliances.
HSBC Holdings plc, the parent company of the HSBC Group, was established in 1991 with its shares quoted on both the London and Hong Kong stock exchanges. The HSBC Group now comprises a unique range of banks and financial service providers around the globe. 2.2 Banks under the HSBC group Many of the members have changed their name into HSBC, The Hongkong and Shanghai Banking Corporation Limited to introduce the whole group under one brand name. Midland Bank, one of the principal UK clearing banks, was acquired by HSBC Holdings in 1992. Headquartered in London, the bank has a personal customer base of five and a half million, business customers of over half a million, and a network of almost 1,700 branches in the United Kingdom. Midland has offices in 28 countries and territories, principally in continental Europe, with a number of offices in Latin America. Hang Seng Bank, in which Hongkong Bank has a 62.1% equity interest, maintains a network of 146 branches in the Hong Kong SAR, where it is the second-largest locally incorporated bank after Hongkong Bank. Hang Seng Bank also has a branch in Singapore and two branches and two representative offices in China. Marine Midland Bank, headquartered in Buffalo, New York, has 380 banking locations state-wide. The bank serves over two million personal customers and 120,000 commercial and institutional customers in New York State and, in selected businesses, throughout the United States. Hongkong Bank of Canada is the largest foreign-owned bank in Canada and the country’s seventhlargest bank. With headquarters in Vancouver, it has 116 branches across Canada and two branches in the western United States. Banco HSBC Bamerindus was established in Brazil in 1997. The bank has its head office in Curitibank and a network of some 1,900 branches and sub-branches, the second largest in Brazil. Hongkong Bank Malaysia is the largest foreign-owned bank in Malaysia and the country’s fifthlargest bank, with 43 branches. The British Bank of the Middle East (British Bank) is the largest and most widely represented international bank in the Middle East, with 31 branches throughout the United Arab Emirates, Oman,
Bahrain, Qatar, Jordan, Lebanon and the Palestinian Autonomous Area, including an offshore banking unit in Bahrain. The bank also has branches in Mumbai and Trivandrum, India, and Baku, Azerbaijan, as well as private banking operations in London and Geneva. HSBC Banco Roberts was acquired in 1997. Based in Buenos Aires, it is one of Argentina’s largest privately owned banks, with 60 branches throughout the country. Hongkong Bank of Australia has 16 branches across Australia. It is the flagship of the HSBC Group’s businesses there, operating under the name HSBC Australia, and providing a complete range of financial services. The Saudi British Bank, a 40%-owned member of the HSBC Group, has 63 branches throughout Saudi Arabia and a branch in London. Other associated Group banks are British Arab Commercial Bank, The Cyprus Popular Bank and Egyptian British Bank. Wells Fargo HSBC Trade Bank is a San Francisco-based joint venture between HSBC and Wells Fargo Bank, providing trade finance and international banking services in the United States through its offices in five western states and in conjunction with Wells Fargo’s 32 regional commercial banking offices in 10 western states. In addition, the Group has a non-equity strategic alliance with Wells Fargo Bank, which provides access to a wide range of banking services through that bank’s more than 1,900 staffed outlets. The Group also has a non-equity alliance with Wachovia Corporation, one of the leading corporate banks in the United States, with business relationships in 50 states. 2.3
HSBC Vision Statement: “We aim to satisfy our customers with high quality service that
reflects our global image as the premier international bank” 2.4 Objectives of HSBC: To beat mean Total Shareholder Return performance of a peer group of financial institutions over a three-year rolling average, with a minimum objective to double shareholder return value in five years. HSBC’s objectives are to provide innovative products supported by quality delivery of systems and excellence customer services, to train and motivate staffs and to exercise social responsibility. By
combining regional strengths with group network HSBC’s aim is to be the one of the leading banks in its principle markets. HSBC’s goal is to achieve sustained earnings growth and to continue to enhance shareholders value. 2.5 HSBC’s International Network: The HSBC Group's international network comprises of some 11,200 offices in 84 countries. 2.6 Country Classifications: To ensure that the key are correctly allocated and that the exchange of best practice is accelerated between entities, the group has classified the countries where it operates into 3 categories: the large, the major and the international. These classifications are a function of sustainable, attributable earnings, the number of retail clients, balance sheet and size of operation. A brief presentation of this classification is shown below:
Large:
Uniited Kingdom, USA and Hong Kong SAR/Mainland China.
Major:
Argentina, Canada, India, Malaysia, kingdom of Saudi Arabia, Singapore and United Arab Emirates.
International: The Rest of the World.
2.7 International Brand: A key part of the Group’s business strategy, announced in 1998, is the creation of a global brand featuring the HSBC name and hexagon symbol. The symbol is now a familiar sight around the world.
The Group has embarked on the next phase — making the HSBC brand universally synonymous with its core values of integrity, trust and excellent customer service. 2.8 Corporate Character: HSBC is a prudent, cost conscious, ethically grounded, conservative, trustworthy international builder of long-term customer relationships. 2.9 Basic Drives: HSBC’s basic drives are Higher Productivity, Team Orientation, and Creative Organization & Customer Orientation. The essence of HSBC brand is integrity, trust and excellent customer service. It gives confidence to customers, value to investors & comfort to colleagues. 2.10 Products and Services: Personal, commercial, corporate, investment and private banking; trade services; cash management; treasury and capital markets services; insurance; personal and business finance; pension and investment fund management; trustee services; and securities and custody services. 2.11 Private Banking: It includes investment, fund management, asset management and protection, financial advice, tax and trust. Private Banking is part of the Investment Banking division of the HSBC Group and services offered will vary from country to country. 2.12 Commercial Banking: It includes finance, payments and cash management, electronic banking, merchant services, trade services, custody, leasing, and factoring. Commercial banking services offered will vary from country to country.
2.13 Corporate and Institutional Banking: As one of the world's largest banking and financial organizations with an extensive global capability, the HSBC Group is a major player in the Corporate and Institutional banking market. HSBC’s clients
are the major multi-nationals. To meet their needs HSBC created Global Relationship Management teams across 79 countries and territories. 2.14 Payments and Cash Management: Effective cash management is more than a simple product or service - it is about implementing a strategy for managing customers’ cash flow that is focused on their long-term goals, yet flexible enough to adapt to change. Through the process of listening to individuals needs and then acting in partnership to deliver the right solutions, HSBC’s is committed to helping the clients make the most of their financial assets. HSBC operate on a global basis, but also work on a local level to ensure the cross-border differences are identified and any related benefits exploited. HSBC teams of specialists ensure that whether you need solutions across the world, regionally or locally, they have the skills, expertise and resources to deliver them. They automate as many functions as possible, whilst ensuring clients to retain control. 2.15 Investment Banking: Investment Banking and Markets brings together the advisory, financing, equity securities, asset management, private banking and trustee, private equity and treasury and debt capital markets activities of the HSBC Group. Resourced by over 10,000 staff around the world, Investment Banking and Markets operates through dedicated offices and via the Group's commercial banks' network in 81 countries and territories. It offers a full spectrum of services for the Group's corporate, institutional and retail clients. By drawing on local commercial market knowledge and international product expertise, the Investment Banking and Markets business is able to provide an excellent combination of global coverage and local market penetration. 2.16 Group Business Principles and Value: The HSBC Group is committed to Five Core Business Principles: •
Outstanding customer service;
•
Effective and efficient operations;
•
Strong capital and liquidity;
•
Conservative lending policy;
•
Strict expense discipline;
HSBC Operates According to Certain Key Business Values: •
The highest personal standards of integrity at all levels
•
Commitment to truth and fair dealing
•
Hand-on management at all levels
•
Openly esteemed commitment to quality and competence
•
A minimum of bureaucracy
•
Fast decisions and implementation
•
Putting the Group’s interests ahead of the individual’s
•
The appropriate delegation of authority with accountability
•
Fair and objective employer
•
A merit approach to recruitment/selection/promotion
•
A commitment to complying with the spirit and letter of all laws and regulations
wherever we conduct our business HSBC’s reputation is founded on adherence to these principles and values. All actions taken by a member of HSBC or staff member on behalf of a Group company should conform to them Overview of HSBC, Bangladesh 3.1 Brief History: The HSBC Asia Pacific group represents HSBC in Bangladesh. HSBC opened it’s first branch in Dhaka in 17th December, 1996 to provide personal banking services, trade and corporate services, and custody services. The Bank was awarded ISO9002 accreditation for its personal and business banking
services, which cover trade services, securities and safe custody, corporate banking, Hexagon and all personal banking. This ISO9002 designation is the first of its kind for a bank in Bangladesh. The Hongkong and Shanghai Banking Corporation Bangladesh Ltd. primarily limited its operations to help garments industry and to commercial banking. Latter, it is extended to pharmaceuticals, jute and consumer products. Other services include cash management, treasury, securities, and custodial service. Realizing the huge potential and growth in personal banking industry in Bangladesh, HSBC extended it’s operation to the personal banking sector in Bangladesh and within a very short span of time it was able to build up a huge client base. Currently HSBC Bangladesh is providing a wide range of services to both individual and corporate level customers.
HSBC in Bangladesh also
specializes in self-service banking through providing 24-hour ATM services. Currently HSBC Bangladesh is offering five off-site ATM booths and five Branches, along with ATM booths, for better satisfying those geographic segments, located at various geographical areas of Dhaka & Chittagong. 3.2 HSBC Bangladesh Overview: Name of the Organization:
The Hong Kong Shanghai Banking Corporation Bangladesh LTD
Year of Establishment:
1996
Head Office:
Anchor Tower, 1/1-B Sonargaon Road Dhaka 1205, Bangladesh
Nature of the organization:
Multinational company with subsidiary group in Bangladesh.
Shareholders:
HSBC group shareholders
Number of Offices:
12
Number of employees:
1148 (Approx.)
Products:
Savings & deposit services. Loan products. Corporate and Institutional services. Payments and Cash Management Products
Trade services Hexagon Day & Night Banking Amanah (Islamic Banking) Technology:
Offers full online banking from branch to branch and also from Dhaka to Chittagong.
Service Coverage & Customers:
Serves individual and corporate customers within Dhaka & Chittagong.
3.3 Management of HSBC Bangladesh: In Bangladesh HSBC follows a 4-layer management philosophy. These are Managers, Executives, officers & Assistant officers. The top most authority of all the levels is the CEO. All Managers are the departmental heads who are responsible for the activities of their departments. They are the heads of their respective department and formulate strategies for that department. The Executives have the authority next to managers. They are ultimately responsible for certain activities & organizational functions. Officers are the next persons to stand in the hierarchy list. These officers are responsible for managing the operational activities and operating level employees. Assistant Officer (AO’s) fill the last layer of this hierarchy; this is the entry-level position in HSBC Bangladesh. They perform day-to-day operational activities and maintain close relationship with the end customers of HSBC.
3.3.1 Organizational Hierarchy: An organizational hierarchy is shown below:
MANAGERS
EXECUTIVES
3.3.2 Chief Executive Committee :
OFFICERS
ASSISTANT OFFICERS
The organizational structure of HSBC Bangladesh is designed according to the various service and functional departments. The Chief Executive Officer (CEO) heads the chief executive committee, which decides on all the strategic aspect of HSBC. The CEO is the person who supervises the heads of all the departments & also is the ultimate authority of HSBC Bangladesh & responsible for all kinds of activities of HSBC Bangladesh & all its consequences. The structure of this top-most authority is shown as under:
Figure No. 3.1: Executive Committee of HSBC, Bangladesh. 3.3.3 Functional Departments of HSBC:
3.4
Different Activities of HSBC in Bangladesh:
As one of the largest international banks in Bangladesh, HSBC has a long-term commitment to its customers and provides a comprehensive range of financial services: personal, commercial and corporate banking; trade services; cash management; treasury; consumer & business finance; and securities and custody services. 3.4.1 Personal Banking Services: The HongKong and Shanghai Banking Corporation Limited offers a full range of personal banking products and services designed to take care of its customers’ growing needs and requirements. HSBC
in Bangladesh has launched a number of unsecured loan and service products. These are mentioned briefly as under: My Loan: Car loan, Home loan, Travel Loan, Lifestyle Loan, Professional Loan, Motorbike Loan Student Loan, Furniture Loan, Wedding Loan, CNG Conversion Loan My Future: Children Savings Plan, Education Savings Plan, Holiday Savings Plan, Peace of Mind Savings Plan, Retirement Savings Plan. Personal Financial Services: Travelers Cheque, Savings Plus, Current Account, Savings Account, Daily Money Management, Phone banking, ATM Cards, Bangladesh International, a Deposit product for nonresident Bangladeshis, Corporate Employees Scheme, Power Vantage, Personal Secured Loan, Personal Secured Credit, Credit Card.
Savings & Investments Monthly interest bearing time deposit, Term deposits, Investment Watch 3.4.2
Corporate Banking Services:
The HongKong and Shanghai Banking Corporation Limited offers a wide range of cash financing, working capital, short and medium-term loans and guarantee facilities from its Head Office and Chittagong branch. The Offshore Banking Unit (OBU) provides US Dollar denominated working capital as well as short-term finance for capital imports to eligible businesses. Using high-speed communication links, HSBC connects customers to international payment systems. 3.4.3
Financial Institutions:
HSBC provides global trade services and cash management services to local banks. HSBC’s worldwide network strength, with over 11,200 offices in 84 countries and territories, coupled with a world class reputation in Trade Finance (“Best Trade Documentation Bank” – Euro money) and an unparalleled presence in Asia (“Best Bank in Asia” — Euro money), places HSBC in an ideal position to render unmatched correspondent banking services.
HSBC’s commanding presence in the USA (5 th largest USD clearing bank globally), UK (largest GBP clearing bank globally), and the Euro land (largest Euro clearing bank in the UK) both in terms of network strength and clearing ability allows the Bank to also provide first class cash management solutions in 3 major global currencies; the US dollar, Pound sterling and the Euro. 3.4.4 ATM Center: The ATM center ensures smooth operation of the ATM machines that are located at Dhaka and Chittagong. The ATM center is responsible for regular replenishment of the off-site ATM’s and servicing of all the ATMs. Currently a total 11 ATMs are in operation. The ATM center also deals with issuance, termination and servicing of the ATM cards. On a whole, the ATM center is the department that is solely responsible for all the activities related to ATM and is the facilitating department that enables customers 24 hour banking support. 3.4.5
ATB center:
ATB refers to Automated Tele Banking. This department deals with the back office servicing of the HSBC phone banking services provided to customers. This department is basically responsible for the activation of ATB, ATB pin generation, and ATB security management, ATB blocking and troubleshooting of all ATB problems. This department is fairly new and was constructed on January’2001. Currently this department is staffed with one executive and one officer.
3.4.6
Payments and Cash Management:
HSBC has introduced a number of Payments and Cash Management Products. These Are: •
Accounts Management Service
•
Payments & Collection
•
Hexagon Cheque Writer
•
Electronic Banking
HSBC was the pioneer in introducing electronic cash management solutions in Bangladesh, by introducing its state-of-the-art proprietary software, Hexagon, back in 1997. This was initially made available to corporate clients only but has since been expanded to include banks and retail clients. With Hexagon, the Bank’s proprietary cash management system, corporate customers can access banking services from anywhere in the world to view account balances and statements, make transfers and international payments, and to open documentary credits, by using only a PC, a modem and a telephone line. 3.4.7 HEXAGON: HSBC’s Electronic Banking Platform HSBC maintains one of the world’s largest private data communications networks and one of their most successful customer service driven technological innovations is Hexagon. Hexagon provides corporate and institutional customers with PC access to cash management services, trade services, securities services and other information through a single-platform using a fully integrated proprietary system. There are about 84,000 Hexagon users worldwide, with more than 230 corporate customers in Bangladesh. Hexagon provides powerful tools to the customers to monitor their accounts from anywhere, at any time of the day or night: Balance and transaction information is available 24 hours day, 365 days a year. Balances can be reviewed and reported in a variety of ways – by account, bank, currency and location. Transaction Capabilities of Hexagon: Payments: •
Full payment capabilities (third party/inter-company) in over 40 currencies globally.
•
Paper-based and electronic payments may be generated.
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Automatic routing via the most effective means using HSBC’s links to all its branches.
•
Repetitive payment/transfer instructions can be stored in secure templates.
•
Payments can be initiated in offline mode and stored for later amendment and/or authorization.
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Payment instructions can be imported from the customer’s back office system.
•
Hexagon can support future value dated transactions up to 45 days.
Time Deposits:
•
Hexagon may also be used to make Time Deposits in a variety of currencies and maturities.
•
Deposit details may be sorted in different categories to simplify portfolio management.
•
Instructions may also be given for the settlement of deposits on maturity.
3.4.8 Amanah (Islamic Banking) HSBC Bangladesh has opened a separate branch at Gulshan to provide Full Service Islamic Banking with an Amanah ATM.
Through this branch HSBC Bangladesh have launched the following
products: •
Amanah Current Account
•
Amanah Import Finance
•
HSBC Shariah Supervisory Committee
•
Amanah Day & Night Banking
3.4.9 Information Technology (IT) HSBC has a department which gives the software and hardware supports to different departments of the bank. As HSBC is engaged in online banking, the role of IT is very crucial for the bank. This department is the most active department of HSBC where employees always stand by to solve any problems in the system. The managers and executives of IT division work continuously to develop the total IT system of HSBC so that it can be operated with ease, accuracy and speed. 3.4.10 HSBC Universal Banking (HUB): This department can be described as the ‘Power House’ of HSBC Bangladesh. The HSBC banking system is called HUB. HSBC does the online banking and it is HUB, which sets up the parameter for that. This HUB is linked with the HSBC group via satellite and each and every transaction made by HSBC within Bangladesh is being recorded at the HSBC Asia-pacific headquarters at Hong Kong via HUB. Thus the HUB is the most powerful and important equipment of HSBC Bangladesh that monitors and tracks any fraud and faults made with HSBC Bangladesh.
3.4.11 Trade Services As the leading provider of trade finance and related services to importers and exporters in Asia, HSBC in Bangladesh operates a highly automated trade-processing network and offer an Electronic Data Interchange (EDI) capability through Hexagon. The Bank also uses SWIFT, an efficient and secure mechanism for bank-to-bank global communications used for all trade related activities including fund transfers and issuance of DC’s (Documentary Credit). The trade service department has two separate subsidiaries: Credit Administration & Foreign Exchange Division. (i) Credit Administration Credit Administration department basically deals with all the documentation, processing, administration and disbursement of the import-export services provided to corporate clients. This department is known to be the heart of HSBC trade services that administers and manages all the trade tools and facilities provided by HSBC Corporate Banking. Some important aspects of this department are LC advising, documentation, OD facilities, guarantees, etc. (ii) Foreign Exchange Division The For-ex division of trade services is solely concerned with the management of Foreign exchange inflow and outflow. The For-ex division of trade service in relation with NSC and FCD manages the foreign currency traffic of HSBC that originates from Corporate Banking and trade services.
An Overview of Network Service Centre (NSC) 4.1 Activities of NSC : Network Service Centre (NSC) can be described as the ‘Power House’ of HSBC Bangladesh. It does the back office job for the bank. The main jobs that are performed by NSC are shown as under: •
Clearing
•
Scanning of signature cards
•
Issuing checkbooks
•
Sending & receiving Remittances
•
Payment & Cash Management (PCM)
•
Easy Pay
•
Treasury
•
MIS
Location: Network Service Centre (NSC) of HSBC, Bangladesh is situated on a corner of a busy road at Motijheel Commercial Area. It is very near to Bangladesh Bank and as such it has the convenience to do all Bangladesh Bank related jobs. It serves a wide geographical area consisting of Motijheel, Paltan, Old Dhaka, Fakirapool, Shahjahanpur, Khilgaon, Shantinagar and other adjoining areas. Office Timing: The Centre opens to public from 9:00 am to 3:00 pm Saturday through Wednesday and from 9:00am to 12:00pm on Thursday. An ATM machine is situated at the centre’s exterior allowing customers to have access to their accounts 24 hours a day. 4.2 Management: The Branch Manager heads all the departments and is the topmost authority of the branch. The Manager generally monitors smooth functioning of all the departments and ensures that all the departments are operating according to rules and regulations. Managers and other officers. An Organ-gram is presented below:
He is assisted by two Assistant
Branch Manager
Assistant Manager
Assistant Manager
Clearing Department
Easy Pay Department
Remittance Department
MIS Department
PCM Department
Treasury Department
4.3 Clearing Department: This Clearing Department of NSC looks after the clearing process of HSBC and makes necessary contact with the central bank for maintaining account flows. All branches of HSBC in Dhaka City send cheques & other instruments to NSC for clearing.
This Department receives those cheques,
attends Clearing House at Bangladesh Bank and ensures receipt of payment against those cheques. Similarly, while attending Clearing House, it receives cheques and other instruments from other banks and ensures their payment.
4.4 Payment and Cash Management Department (PCM): Payments and Cash Management is a core business for the HSBC group. The objective of Payments & Cash Management is to be the premier payments & cash management service provider in Bangladesh by delivering responsive and integrated solutions to customers. HSBC's Payments and Cash Management services are designed to help its clients to operate efficiently, profitably and with comprehensive support. The aim is to provide a service that takes full account of the customers' local needs using the expertise and the unrivalled resources of the HSBC. Through the process of listening the customer's needs, HSBC then acts in partnership to deliver the right solutions.
HSBC operates on a global basis, but also works on a local level to ensure the cross-border differences are identified and any related benefits exploited. The bank's teams of specialists ensure that whether customer needs solutions across the world, regionally or locally, they have the skills, expertise and resources to deliver them. Payments & Cash Management Department (PCM) at NSC delivers the following products to their customers: •
Accounts Management Services
•
Payments & Collection
•
Hexagon Cheque Writer
•
Electronic Banking
4.5 Remittance Department Remittance’ is a banking term, which means ‘Transfer of funds through banks’. When a bank remits on behalf of its customers, it is termed as outward remittance. On the other hand, when the bank receives the remittance on behalf of the customer, it is inward remittance. The following are the methods that NSC use to remit money for customers: Telegraphic Transfer (TT), Demand Draft (DD) & Cashier’s Order. There are two types of Remittance: (1) Inland Remittance (within the country) and (2) Foreign Remittance (To and from foreign countries). The Remittance Department of NSC performs the following jobs: •
Inland Remittance
•
Foreign remittance
•
Receives information on Foreign Remittance from all HSBC branches.
•
Compiles data on the basis of information received.
•
Submits Returns to Bangladesh Bank.
4.6 Easy Pay Department: “Easy Pay” is a product innovated by HSBC Bangladesh providing service to their customers for making payment of their Utility Bills (WASA, DESA, Gas & Phone Bills) very easily and quickly.
The Easy Pay Department at NSC has a booth where customers come and drop their Utility Bills along with payment in form of cash or cheque or Credit Card etc. HSBC acknowledges receipt and later arranges to make payment to the relevant Utility authorities. 4.7 Treasury Department: The main job of this Department is to take decisions regarding purchase and sell of foreign Currency. The purpose of Treasury's operations is to utilize the funds effectively and arrange funds at a lowest possible rate of interest, through maintaining effective relationship with other banks and following the Government rules and foreign exchange regulations
4.8 MIS Department: This Department at NSC maintains and upgrades Database and provides MIS updates on different issues to Management / Branches / Sales Teams on a routine basis. The Department also generates different Management Information reports regarding business development, delinquencies, income & cost, recovery & funding, profit & loss etc.
Thus this Department plays an important role in
maintaining efficiency of HSBC Bangladesh.
A brief description of my job duties at NSC, HSBC, Motijheel are given below: Compilation of Data: •
Receipt of “TM” & “C” Forms from different branches
•
Travel Voucher from different branches
•
Compilation of data as per above forms and vouchers.
Preparation of Returns: •
Statement 6 (S-6)
•
FCS 7
•
NRB
•
WESPRO
Outward Remittance
The term “Outward Remittances" include not only remittance i.e. sale of foreign currency by TT. MT, Drafts, Traveler’s cheque but also includes payment against imports into Bangladesh & Local currency credited to Non-resident Taka Accounts of Foreign Banks or Convertible Taka Account. IMP Form: All outward remittance on account of Imports is done by this form T.M Form: For all other outward remittances form T.M is used. 5.1 Private Remittance: 1. Family remittance facility: a) Foreign Nationals working in Bangladesh with approval of the Government may remit through an Authorized Dealer 50% of Salary and 100% of leave salary as also actual savings and admissible person benefits. No prior approval of Bank is necessary for such remittance, b) Remittance of moderate amounts of foreign exchange for maintenance abroad of family members (spouse, children, parents) of Bangladesh Nationals are allowed by Bangladesh Bank on written request supported by certificate from the Bangladesh Mission in the concerned country. 2. Remittance of Membership fees/registration fees etc. Authorized Dealer may remit without prior approval of Bangladesh Bank, membership fees of Foreign professional and scientific institutions and fees for application registration, admission, examination JOEFL, SAT etc.) in connection with admission into foreign educational institutions on the basis of written application supported by demand notice/letter of the concerned institution. 3. Education: Prior permission of Bangladesh Bank is not required for releasing foreign exchange in favor/on behalf of Bangladesh students studying abroad or willing to proceeds abroad for studies. Authorized Dealers shall allow exchange facilities for this purpose according to the following drill: Application duly filled in by the student as per prescribed format of Bangladesh Bank. Original and photocopy of admission letter issued by the concerned institution in favor of the student. Original and photocopy of estimate relating to annual tuition fee, board and lodging incidental expenses etc. issued by the concerned institutions. Attested copies of educational certificates of the applicant and Valid passport. 4. Remittance of Consular Fees: Consular fees collected by foreign embassies in Bangladesh Taka and deposited in a Taka Account maintained with an AD solely for this purpose may be remitted abroad without prior approval of Bangladesh Bank. 5. Remittance of evaluation fee: Authorized Dealer's without prior approval of Bangladesh Bank may remit evaluation fee on behalf of Bangladeshis desiring immigration to foreign countries for getting educational certificates of the
person concerned evaluated by a foreign institution. A demand note of the foreign immigration authority is required for this purpose. 6. Travel: Private travel quota entitlement of Bangladesh Nationals is set at US$3000/- per year for visit to countries other than SAARC member countries and Myanmar, Quota for SAARC member countries and Myanmar is US$1000/- for travel by air and US$500/-for travel by overland route. Authorized Dealers may release this travel quota in the form of foreign currency notes up to US$500/ - or equivalent and balance exchange in the form of TCs or total quota in the form of TCs The annual quotas mentioned above are for adult passengers. Fore minors (Below 12 year in age) the applicable quota will be half the amount allowable to adults. Authorized Dealers may release above travel quota without prior approval of Bangladesh Bank subject to observation and satisfaction of following points: The intending traveler is a customer of the AD bank or is sufficiently well known to the AD Bank or the intending traveler has paid relevant Travel Tax. The intending traveler has a valid passport. The AD should verify and satisfy itself that any foreign exchange released for an earlier travel was utilized with he journey being actually undertaken or was duly enchased unutilized. The intending traveler is in possession of confirmed air ticket for journey to be undertaken and that the intended journey to be undertaken not later than two weeks after the date on which exchange is issued. The amount releases is endorsed on the passport and air ticket of the traveller with indelible ink, with the signature and the name of the AD branch embossed in the passport and ticket. However, while issuing foreign exchange to the Diplomats/ privileged persons/ UN personnel, Govt. Officials travelling on officials' duties, such endorsement in the passports need not be made. In each case of release of foreign exchange for travel abroad, photocopies of first six pages of the passport s and the page recording endorsement of foreign exchange and photocopies of the pages of ticket showing name of the passenger, route and date of journey and endorsement of foreign exchange along with the relative T.M. form should be sent to Bangladesh Bank along with monthly returns. 7. Health & Medical: Authorized Dealers without prior approval of Bangladesh Bank may release foreign exchange up to US$10,000/- for medical treatment abroad on the basis of the recommendation of the medical Board set up the Head Directorate and the cost estimate of the foreign medical institution. Applications for release of exchange exceeding US$10,000/- should be forwarded along with supporting documents to Bangladesh Bank for prior approval. 8. Seminars & workshops: Without prior approval of Bangladesh Bank AD may release US$200/- per them and US$250/- per them to the private sector participants for attending seminars, conferences and workshops organized by recognized International bodies in SAARC member countries or Myanmar and in other countries
respectively for the actual period of the seminar/workshop/conference to be held on this basis of invitation letters received in the names of the application or their employer institutional. 9. Foreign Nationals: The Authorized Dealers may issue foreign currency TCs to foreign nationals without any limit and foreign currency notes up to US$300/- or equivalent per person against surrender of equivalents amounts in foreign currencies. The TCs and foreign currency notes should however, be delivered only on production of ticket for a destination outside Bangladesh and the amount issued should be endorsed on the relative passports. Authorized Dealers may allow recon version of unspent Taka funds of foreign tourists into foreign exchange on production of the encashment certificate of foreign currency. Recon version shall be allowed by the same AD with which the foreign currency was encashed earlier. AD should retain the original encashment certificate and relative forms where reconversion exceeds US$5000/-. 10. Remittance for Hajji: Authorized Dealers may release foreign exchange to the intending pilgrims for performing Hajj as per instructions/circulars to be issued by the Bangladesh Bank each year. 11. Other Private remittance: Applications for remittances by private individuals for purposes other than those mentioned above should be forwarded to Bangladesh Bank for consideration & approval after assessing the bonafide of the purpose of remittance on the basis of documentary evidence submitted by the applicant. 5.2
Official & Business Travel: 1. Official Visit:
For official or semi officials visits abroad by the officials of govt., Autonomous/Semiautonomous institutions etc., Authorized Dealers may release foreign exchange as per entitlements fixed by the Ministry of Finance from time to time, In such cases, the applicant for foreign exchange shall be required to submit the sanction letter and the competent authority's Order/Notification/Circular authorizing the travel. 2. Business Travel Quota for Now Exporters: Up to US $6,000/- or equivalent may be issued by an AD without prior approval of Bangladesh Bank to a new exporter for business travel abroad, against recommendation letter from Export Promotion Bureau, Bonafide requirement beyond US$6000/- is accommodated by Bangladesh Bank upon written request through an AD with supporting documents. 3. Business Travel Quota for Importers and No exporting producers: Subject to annual upper limit of US$5000/- importers are entitled to a business travel quota @ 1 % of their imports settled during the previous financial year.
Subject to annual upper limit of US$5000/- non exporting producers for the local markets are entitled to a business travel quota @1 % of their turnover of the proceeding financial year as declared in their tax returns. The same business organization engaged in imports as well as production shall however; draw business travel quota entitlement only on one count. 4. Exporters' Retention Quota: i) Merchandise exporters may retain up to 40% of realized FOB value of their exports in foreign currency accounts. However, for exports of goods having accounts. However, for exports of goods having high import content (such as readymade garments, POL products including furnace oil bitumen, electronic goods etc.,) the retention quota is 7.5% of the repatriated FOB value. Funds from these accounts can be used to meet bonafide business expenditure, such as business visits abroad, participation in export fairs and seminars, establishment and maintenance of office abroad, import of raw materials, machinery and spares etc. without prior approval of Bangladesh Bank. Exporters may at their option, retain the foreign currency in interest bearing renewable term deposit accounts with Authorized Dealers in US Dollar, Pound Sterling DM or Japanese Yen with a minimum account of US$2000 or Pound 1500/ ii) Service exporters (excluding indenting commission or agency commission of indenting house of buying house respectively) may retain 5% of their repatriated income in foreign currency accounts or as renewable time deposits with Authorized Dealers, Funds from these accounts can be used to meet expenses for bonafide business travel abroad. 5.3
Commercial Remittances: 1. Opening of branches or subsidiary companies abroad:
Remittance of up to US$30,000/- or equivalent per annum may be released by the Authorized Dealers without prior approval of Bangladesh Bank to meet current expenses of offices/branches opened abroad by resident in Bangladesh or Commercial/Industrial concern incorporated in Bangladesh. Approval letter of the competent authority of the country concerned for opening the office in that country. Copy of report submitted to Bangladesh bank. 2. Remittance by shipping companies airlines & courier service: Foreign Shipping Companies, airlines and courier service companies may send, through an AD, funds collected in Bangladesh towards freight and passage after adjustment of The Authorized Dealers may remit such royalty and other local cost & Taxes, if any without prior approval of Bangladesh Bank. 3. Remittance of royalty and technical fees: No prior permission of the Bangladesh Bank of BOI is required by the enterprises for entering into agreement involving remittance of royalty, technical know-how or technical assistance fees, operational services fees, marketing commission etc., if the total fees and other expenses connected with technology transfer do not exceed. a) 6% of the cost of imported machinery in case of new projects
b) 6% of the previous year's sales as declared in the income tax returns of the ongoing concerns. The authorized dealers may remit such royalty and other fees without prior approval of Bangladesh Bank. Royalty and other fees beyond the rate mentioned above may be remitted by the authorized dealers without prior approval of Bangladesh bank provided specific approval of BOI has been obtained by the applicant company. 4. Remittance on account of training & consultancy: Industrial enterprises producing for local market may remit through Authorized Dealers up to 1% of their annual sales as declared in their previous years' tax return for the purpose of training and consultancy services as per relevant contract with the foreign trainer/consultant, without prior approval of Bangladesh Bank. 5. Remittance of profits of foreign firms/branches: Authorized Dealers may without prior Bangladesh Bank approval remit abroad the post tax profits of branches of foreign firms and companies including foreign banks & other financial institutions subject to submission of relevant documents/information along with the application. 6. Remittance of Dividend: Prior permission of Bangladesh Bank is not required for i) Remittance of dividend income to non-resident shareholders on receipt of application in the prescribe form from the companies concerned. ii) Remittance of dividend declared out of previous years' accumulated reserves. 7. Subscriptions to foreign media services: On application from the local newspapers, Authorized Dealers may remit foreign exchange towards cost of subscription of news items, features, articles of foreign news agencies subject to submission of I. II.
Contracts entered into between the applicant and the foreign news agency. NOC of the Ministry of Information.
8. Costs for Router monitors: Authorized Dealers may remit abroad costs/fees on account of their own subscription to foreign media services such as Reuter monitor service, without prior approval of Bangladesh Bank. 9. Advertisement of Bangladeshi Products In mass media abroad: Prior permission of Bangladesh is not required by the Authorized Dealers for remittance of charges for advertisement of Bangladeshi commodities in mass media abroad subject to submission of Invoice from the concerned foreign mass media alongwith the applications of the remitter. The applicant will have to submit copy of the advertisement to the Ad within one month of this issuance. 10. Bank Charges:
The Authorized Dealers may affect remittances towards settlement of dues to foreign banks of bank charges, cost of cables and other incidental charges arising in their normal course of the business without prior approval of Bangladesh Bank. Inward Remittance 5.4 Inward Remittance: The term “inward remittance” includes not only purchase of foreign currency by TT, MT, Drafts etc. but also purchase of bills, purchase of traveler’s cheques. 5.5 Forms: Two forms are prescribed by Bangladesh Bank are used for purchase of foreign currencies such as: •
EXP Form: Remittances received against exports of goods from Bangladesh are done by form EXP.
•
Form C: Inward remittances equivalent to US$ 2000/- and are above are done by Form “C”. However, declaration in Form C is not required in case of remittances by Bangladesh Nationals working abroad.
5.6 General Principles and Precautions for purchasing instruments: Utmost care should be taken while purchasing Currency Notes, Travelers cheque, Demand Draft & similar instrument for protecting the bank from probable loss as well as safety of the Bank officials concerned.
5.7 Foreign Currency (Bank) Notes Branches may freely buy foreign currency notes from Bangladesh as well as foreign nationals. Currency notes, especially notes of higher denominations, i.e. US $ notes of 50 and 100 denominations, should be checked carefully to ascertain their genuineness. Foreign Exchange Department shall maintain currency wise F.C. in hand Control Ledger to record each day’s transactions. On the last working day of each month the branch shall calculate the exchange gain or loss and carry out necessary adjustment in the control ledger.
Foreign currencies shall be purchased at the rates instructed by the Head Office. 5.8 Travelers’ cheques: Payment against TCs The customer tendering the Travelers’ Cheques should be asked to sign the TCs at the designated places in front of the concerned bank official who would satisfy himself about its genuineness with reference to the customer’s signature already appearing on the TCs and his passport. Should there be any doubt, purchase contracts of the TCs may be asked for. Collection of Proceeds of Encashed TCs Encashed TCs should be sent to the relevant foreign correspondent for collection. 5.9 Foreign Drafts and Cheques: The branch should exercise due care and ordinary prudence for purchase of foreign currency denominated drafts, cheques and similar kinds of instruments. The instrument should not be purchased unless the customer is well known to the branch as a regular trustworthy client. An Indemnity Bond should be obtained for refund of the money along with interest in the event of dishonor of the instruments. 5.10 Telegraphic Transfer (T.T): Test number appearing on the TT must be checked and authenticated by the concerned official. Confirmation from the Head Office should be received about the proceeds having been credited. The usual formalities including declaration on Form ‘C’ should be observed.
5.11 Miscellaneous Services : Student file Students who are desirous to study abroad can open file in the bank. By opening this file. Bank assures the remittance of funds in abroad for study. NRIT Account ‘Non-resident Investor’s Taka Account is an account by which Non-resident Bangladeshi can deposit foreign currency for investment in security of stock exchanges. For such account holders, 5% of primary shares are reserved. F.C. Account Foreign Currency Accounts are opened in the names of Bangladeshi nationals or persons of Bangladeshi origin working or self-employed in abroad and are maintained as long as the account holder’s desire. NFCD Stands for Non-resident Foreign Currency Deposit
Eligible persons may open such accounts even after their return to Bangladesh, within six months of their arrival. RFCD Accounts Stands for Resident Foreign Currency Accounts Persons ordinarily resident in Bangladesh may maintain foreign currency accounts with foreign exchange brought in at the time of their return to Bangladesh from visiting abroad. Balance of such accounts is freely remittable to abroad. Analysis The analysis made in this chapter is based on remittances under local currency account only. Remittances under foreign currency accounts are excluded due to simplicity. Remittances on account of Export and Import are also excluded as HSBC have separate departments which deal on remittances on account of Export and Import. Analysis is made with data available for a short period of only 1sr quarter of the year 2010. Data for previous years were not made available because of restrictions as per HSBC policy. 6.1 A. Outward Remittances: 6.1.1 Distribution of Outward Remittance by Currency during 1QRT 2010 A table showing currency wise outward remittance during 1 st quarter 2010 is given below. A corresponding pie chart showing distribution of outward remittance by currency is also given below:
Table: 1 Distribution of Outward Remittance by Currency during 1QRT 2010 January
In Equivalent Taka February March
Total
USD GBP EUR Other
121,363,191.22 171,200,451.28 4,359,771.89 3,903,350.66
136,552,320.86 6,576,595.86 2,028,523.43 9,636,670.46
40,548,759.78 7,476,762.37 1,866,963.15 2,557,191.78
298,464,271.86 185,253,809.51 8,255,258.48 16,097,212.90
TOTAL
300,826,765.06
154,794,110.61
52,449,677.08
508,070,552.74
Pie chart: 1
From the above pie chart I found that outward remittance in the currency of US dollar (USD) is the largest which is 59 % of total remittance. The Great Britain Pound (GBP) is next to USD which is 36% of total remittance. The outward remittances in the currency EUR and in other currencies are 3% and 2% respectively. Findings: US dollar and Great Britain Pound are the major currencies in which most transactions of outward remittance took place during the 1st quarter 2010. 6.1.2 Trend of Outward Remittance by Currency during 1QRT 2010: A bar chart showing trend of outward by currency during the 1 st quarter of 2010 is shown bellow:
Bar Chart: 1
From the above bar chart I found that considerable amount of out ward remittance transactions in the currency of US dollar (USD) and Great Britain Pound (GBP) took place in the month of January 2010. But their transactions in the month of March declined substantially. The transaction of US dollar however marked an increase in the month of February. Findings: January being the first month in the year, different regular yearly transaction takes place in this month. For example, more remittance for the purpose of education is made in January as it is the first
month of the year. The remittance in the currency of GBP becomes usually more in January. Outward remittance transactions in the EUR and other currencies are very small as compared to USD and GBP. 6.1.3 Distribution of Outward Remittance by Purpose for 1QRT 2010 A table showing purpose-wise outward remittance during 1 st quarter 2010 is given below. A corresponding pie chart showing distribution of outward remittance by purpose is also given below: Table: 2 Distribution of Outward Remittance by Purpose for 1QRT 2010 In Equivalent Taka January February March
Total
Travel Education Family Maintenance Other
27,497,234.56 21,838,309.29 1,507,070.31 249,984,150.90
10,205,818.99 11,117,885.29 2,473,200.39 130,997,205.94
12,507,774.05 6,697,993.91 3,211,931.17 30,031,977.95
50,210,827.60 39,654,188.49 7,192,201.87 411,013,334.78
Total
300,826,765.06
154,794,110.61
52,449,677.08
508,070,552.74
Pie Chart: 2
From the above pie chart I found that outward remittance for other different purposes is the largest which is 81 % of total remittance. The Outward remittance of the purpose Travel, Education and Family Maintenance are 10%, 8% and 1% respectively. Findings: Different miscellaneous purposes constitute the major outward remittance through HSBC. 6.1.4 Trend of Outward Remittance by Purposes during 1QRT 2010: A bar chart showing trend of outward remittance by purpose during the 1 st quarter of 2010 is shown bellow:
Barchart2:
From the above bar chart I found that out ward remittance transactions for all purposes is highest in the month of January 2010. But their transactions in the month of February and March decreased gradually. Findings: Outward remittance for the purpose of travel is highest in January. So, it appears that January is the convenient month of travel. Similarly outward remittance for the purpose education is highest in January. 6.1.5 Outward Remittance During 1QRT 2010 (Travel) : A table showing outward remittance for the purpose of travel during 1 st quarter 2010 is given below. A corresponding bar chart showing trend of outward remittance for the purpose of travel is also given below :
Table 3: Outward Remittance During 1QRT 2010 Travel January
27,497,234.56
February
10,205,818.99
March
12,507,774.05
Total
50,210,827.60
Bar chart 3:
From the above bar chart I found that out ward remittance transactions for the purpose of travel is highest in the month of January 2010. It marked a decrease in February but slightly increase again in March. Findings: Outward remittance for the purpose of travel is highest in January. So, it appears that January is the convenient month of travel. 6.1.6 Outward Remittance During 1st QRT 2010 (Education) A table showing outward remittance for the purpose of Education during 1 st quarter 2010 is given below. A corresponding bar chart showing trend of outward remittance for the purpose of Education is also given below :
Table 4: Outward Remittance During 1st QRT 2010 Education January 21,838,309.29 February 11,117,885.29 March 6,697,993.91 Total
Bar chart 4:
39654188.49
From the above bar chart I found that out ward remittance transactions for the purpose of Education is highest in the month of January 2010. But its transactions in the month of February and March decreased gradually. Findings: Outward remittance for the purpose of Education is highest in January. So, it appears that January is the suitable month for remitting educational expenses. 6.2 B. Inward Remittance: 6.2.1 Distribution of Inward remittance by Currency During 1st QRT 2010 A table showing currency wise inward remittance during 1 st quarter 2010 is given below. A corresponding pie chart showing distribution of inward remittance by currency is also given below: Table 5: Distribution of Inward remittance by Currency During 1st QRT 2010 Equivalent Remittance in Taka Currency January February March USD 478,858,533.59 294,277,979.34 306,180,900.39 GBP 48,470,087.75 62,294,134.00 89,137,620.25 EUR 49,143,794.70 39,996,476.52 22,479,843.75 Other 12,788,918.00 40,382,581.52 2,246,680.35
Total 1,079,317,413.32 199,901,842.00 111,620,114.97 55,418,179.87
Total
1,446,257,550.16
589,261,334.04
436,951,171.38
420,045,044.74
Pie chart 3:
From the above pie chart I found that inward remittance in the currency of US dollar (USD) is the largest which is 74 % of total remittance. The Great Britain Pound (GBP) is next to USD which is 14% of total remittance. The inward remittances in the currency EUR and in other currencies are 8% and 4% respectively. Findings:
US dollar and Great Britain Pound are the major currencies in which most transactions of inward remittance took place through HSBC during the 1st quarter 2010. 6.2.2 Trend of Inward Remittance During 1 QRT 2010 A bar chart showing trend of inward by currency during the 1 st quarter of 2010 is shown below: Bar Chart 5:
From the above bar chart I found that considerable amount of inward remittance transactions in the currency of US dollar (USD) took place in all the 3 months. But its transactions are found to be highest in the month of January. In February and March its transaction decreased but remained static. On the other hand, amount of inward remittance transactions in the currency of Great Britain Pound is found to be lowest in the month of January. Its transaction increased in February and March gradually. Amount of inward remittance transactions in the currency of EURO is found to be highest in the month of January. Its transaction decreased in February and March gradually. Amount of inward remittance transactions in other currencies is found to be highest in the month of February. Its transaction decreased in January and March. Findings: January being the first month in the year, different regular yearly inward remittance transactions take place in this month. The inward remittance in the currency of GBP, EUR and other currencies are very small as compared to USD. This might be due to the fact that HSBC have wide banking network at USA. 6.2.3 Distribution of Inward Remittance by Purpose During 1st QRT 2010: A table showing purpose-wise inward remittance during 1 st quarter 2010 is given below. A corresponding pie chart showing distribution of inward remittance by purpose is also given below : Table 6: Distribution of Inward Remittance by Purpose During 1st QRT 2010 SL
Purpose
Inward Remittance Equivalent in Taka
No 1 2 3 4 5
Family Maintenance Investments Commercial wage Other Total
January 19,294,697.00 55,771,330.00 83,664,380.00 246,788,329.00 183,742,598.00 589,261,334.00
February 22,630,257.00 7,057,794.00 78,970,875.00 153,170,727.00 175,121,518.00 436,951,171.00
March 23,822,600.00 4,771,529.00 57,256,294.00 242,836,230.00 91,358,392.00 420,045,045.00
Total for 3 months 65,747,554.00 67,600,653.00 219,891,549.00 642,795,286.00 450,222,508.00 1,246,257,550.00
Pie Chart 4:
From the above pie chart I found that inward remittance for the purposes of wage is the largest which is 44 % of total remittance. The inward remittance of the purpose Commercial,, Investments, Family Maintenance and other purposes are 15%, 5%, 5% and 31% respectively. Findings : The purpose of wage constitutes the major inward remittance through HSBC followed by other purposes. 6.2.4 Trend of Inward Remittance for Different Purposes During 1QRT 2010 A bar chart showing trend of outward remittance by purpose during the 1 st quarter of 2010 is shown bellow: Bar chart 6:
From the above bar chart I found that inward remittance transactions for all purposes are highest in the month of January 2010. But their transactions in the month of February and March decreased gradually except for the purpose of wage which decreased in February but again marked an upward trend in March.. Findings : Inward remittance for the purpose of wage is highest in January and March. In February it marked a slight decrease. Inward commercial remittance remained almost static in January and February but it marked a slight decrease in March. Inward remittance for the purpose of investment is highest in January and it decreased gradually in February and March. Inward remittance for the purpose of family maintenance remained almost the same in all the three months.
6.2.5 Country-wise Inward wage Remittance during 1QRT 2010: A table showing country-wise inward wage remittance during 1 st quarter 2010 is given below. A corresponding pie chart showing distribution of inward remittance by remitting countries is also given below: Table 7: Inward wage remittance country wise SL No 1 2 3 4 5
Equivalent Remittance in TAKA January February March 17522277 11787042 17653844 USA 0 9 6 UK 42336147 11880340 40355561 HongKong 8067516 5748705 8131854 Singapore 5862476 4297559 5240654 Others 15299420 13373695 12569715 Country
Total
24678832
15317072
24283623
Total 469631645 94572048 21948075 15400689 41242830 642795287
9
8
0
6.2.6 Inward wage Remittance During 1QRT 2010: Pie chart 5:
From the above pie chart I found that inward wage remittance coming from USA through HSBC is highest which 74% of total inward wage remittance is. UK is the 2 nd highest country remitting 15% of total wage coming through HSBC. Hong Kong, Singapore and other countries remitted 3%, 2% and 6% of total inward wage remittance. Findings: Inward wage remittance coming from USA through HSBC is highest. This might be due to the fact that HSBC has very wide network at USA providing personal banking services. Wage remittance coming from other countries through HSBC is very small to the tune of only 6%. 6.2.7 Trend of Inward Wage Remittance during 1st QRT 2010 A bar chart showing trend of inward wage remittance coming from different countries through HSBC during 1st quarter of 2010 is given below: Bar char 7:
From the above bar chart I found that inward wage remittances coming from USA are highest in the months of January and March 2010. But its transactions in the month of February decreased to
some extent. Inward wage remittances coming from UK is 2 nd highest in the month of January. It decreased to some extent in February but again marked an upward trend in March. Inward wage remittance coming from Hong Kong, Singapore and other countries remain static during the entire quarter. Findings: Inward wage remittance is highest in January and March. In February it marked a slight decrease. USA is the major country remitting inward wage remittance to Bangladesh trough HSBC.
Recommendation •
HSBC should widen their clients base to invite more out ward remittance transaction in other currencies.
•
The Remittance Department of HSBC becomes very busy in January as much more outward remittance transactions takes place in this month. So, HSBC Management should arrange more manpower for Remittance Department in this month. One of the means of arranging this additional manpower might be to accept more internees in this month.
•
HSBC should intensify personal banking in order to attract travelers and students in making outward remittance through HSBC.
•
HSBC should undertake promotional activities in November & December for providing personal banking services to travelers and students.
•
HSBC should undertake promotional activities in November & December for providing personal banking services to travelers.
•
HSBC should undertake promotional activities in November & December for providing personal banking services to students.
•
HSBC should explore the possibility of widening its personal banking network in other countries to tap the inward remittance coming from those countries especially in Middle East countries wherefrom inward remittances come to Bangladesh in plenty.
•
HSBC should intensify personal banking in order to attract foreign wage earners making inward remittance through HSBC.
•
The number of human resources in the Remittance Department is really insufficient to give services to huge volume of work. So, number of staff should be increased in this department.
•
Human resource is another sector for the Remittance department to be developed urgently. Human resources, in the department, need to be equipped with adequate computer knowledge so that they can work faster and efficiency can be optimized. Bank can arrange training program for them.
Conclusion HSBC Bank limited is a leading Private commercial bank in Bangladesh with superior customer bases that are loyal, faithful, worthy towards the bank. The service provided by the young energetic officials of the HSBC Bank Limited is very satisfactory. As a commercial bank HSBC has to follow the rules of Bangladesh bank despite the fact that these rules sometime restrict the foreign business to some extent. During my internship in this branch I have found its foreign remittance department to be very efficient; therefore this department plays a major role in the overall efficiency & reputation of the e Bank as a whole. Bibliography
www.hsbc.com.bd Financial Report of HSBC Bangladesh Ltd.
www.bangladesh-bank.org Fiscal Report of HSBC Group