Remittance Activities of Bangladesh Krishi Bank: A Study on Narsingdi Branch

Abstract

Bangladesh Krishi Bank (BKB) has been established under the Bangladesh Krishi Bank order 1973 (President's Order No 27 of 1973). BKB is a Banking Company under the Banking Company Act-1991. Its Head Office is located at Krishi Bank Bhaban,83-85 Motijheel Commercial Area, Dhaka-1000, Bangladesh. There are certain boundaries to cover the report. To achieve the objectives of the report. In this report I tried to analyze the Foreign exchange performance of BKB. For this purpose I have collected primary and secondary data for last 5years. In the preparation of the report I have used Annual report and different journal. We also conduct face to face conversation with employees of BKB. Data have been collected from both primary and secondary sources. The Methodology relevant data are collected through face to face conversation with the AGM, Second Officer, Remittance In-charge, different officials of Krishi Bank. The data have also been collected through the study and evaluation of the method which they use in remittance of fund. Remittance is sending money from one place to another through banking or authorized channel. Banks earn maximum portion of non-interest income from remittance. Noninterest income of a bank depends on largely, the overall qualities of services of the bank. Remittance is important from the customer’s point of view, as it is easy, less expense, minimizing risk. Remittance is important from the banker’s point of view as Bank earn noninterest income, helpful for other business and helpful for stable economic growth. Mainly the following parties are involved in remittance The basic function of this department are outward and inward remittance of foreign exchange from one country to another country. In the process of providing this remittance services; it sells and buys foreign currency. The conversion of one currency into another takes place at an agreed rate of exchange in where the bankers quotes, one for buying and another for selling. In such transactions the foreign currencies are like any other commodities offered for sales and purchase, the cast (convention value) being paid by the buyer in home currency, the legal tender.