Letter of Credit (LC) Procedures & Motives of LC Customers

Abstract

Sahajalal Islami Bank Limited is based on Islamic Shariah. SJIBL ' is named after the name of a saint Hajrat Shahjalal (R) who dedicated his life for the cause of peace in this world and hereafter and served the humanity. It started its Banking operation on May 10, 2001 with the 1st branch (main branch) opened at 58, dilkusha CIA, Dhaka obtaining he license of Bangladesh Bank, for enlistment of economic condition of its customers as well as to contribute sustainable economic growth and development in trade and industry of the country. The objective of Shahjalal Islami Bank Limited is not only to earn profit but also to keep the social commitment and to ensure its co-operation to the person of all level, to the businessmen, industrialist specially who are engaged in establishing large scale industry by consortium and the agro-based export oriented medium and small scale industries by self inspiration. To achieve the objectives Shahjalal Islami Bank provides different types of services. They provide general banking like account opening, FOR, OPS and some other service. They offer loans for make home, purchase car, apartments or some other personal purpose. Foreign exchange is another main service of 5hahjalal Islami Bank. The main duty of this department is to provide services to them who are maintaining business internationally. One of the main services of foreign exchange is letter of credit. It is the security to get payment. 5hahjalal Islami Bank is doing this job very efficiently. On this report I worked on the procedures of LC and the motives of the customers to open LC. I also found out how many times and which destinations the customers are opening LC. The main purpose to do this type of research is to create a customer profile which will help them for better decision making and better forecasting. I have found that the maximum customers are doing their business in RMG sector. They need Letter of Credit very frequently . They choose bank to open letter of credit by quick serviceability. So Shahjalal Islami Bank should focus on that issue. Their marketing department should maintain a good relationship with that sector. They should offer more loan facility and other incentives to them for attracting them. Some of them are not satisfy about the employee efficiency. The HRO should provide them more training . In this way I think the bank will grow much faster than now. My best wishes are always with Shahjalal Islami Bank Limited.