Chapter One: Introduction

1.1 Introduction

Banks play an essential function inside the financial improvement of a nation. They
accumulate the idle deposits of the people and make them available for investment. They
also create new demand deposits in the process of granting loans and purchasing
investment securities. They facilitate trade both inside and outside the country by
accepting and discounting of bills of exchange. Banks also increase the mobility of
capital. Banking in the shape in which it exists in recent times is comparatively of new
beginning. before the arrival of present-day banking, direct finance, where the owner of
capital would deal directly with the consumer of capital, become the customary mode of
transference of finances from collectors to investors. Today, a bank is a business that
involves one or more features such as remitting, paying, lending, investing, receiving,
transacting, exchanging, processing money/claims, mutually nationally and
internationally. Bangladesh is a country with huge social, political, economic and
environmental problems which need to be addressed for the overall development of the
country. However, the economic development is one of the prime factors, which can
resolve many of its current problems. The growth of business sectors and the exposed
market economy has created a great opportunity for Bangladesh towards development.
The achievement of the banking segment is playing great foreword in the economic
improvement of this country. The bank can play a significant foreword in developing
capital structure, in regulating speculation in maintaining a balance between needs and
availabilities and in direct physical resources into wished for channels. If the banking
system of a country is efficient, effective and disciplined, commercial banks play an
important and active role in improving the economy of the country. It ensures rapid
growth in various sectors of the economy. However, the entry of EXIM Bank in
Bangladesh has added a new stage in the banking sector. Economic progress refers to
changes that affect a local economy's capacity to create prosperity for local residents.
Economic development for Bangladesh can be identified through number of indicators,
including GDP growth, scarcity issues, employment, healthcare, environment, education,
trade and commerce etc. This study clearly identifies that during last 29 years, EXIM
bank has been contributing to improve Bangladesh economy through making positive
changes to most of its economic indicators.

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1.2 Background of the Study
The Bachelor of Business Administration (BBA) program requires 45 days of
registration with the organization and the submission of a report designated by the
faculty head. I took the opportunity to do my internship in EXIM Bank Limited, Seed
Store Branch. The organization attachment started on August 15,2022 and finished on
September 31,2022 Organizational support started on August 15, 2022 and ended on
September 31, 2022. Actually this is feedback which department accepts from the
students who join in an organization after the completion of theoretical part of the BBA
program. My department supervisor, Assistant Professor Ayrin sultana of Finance and
Banking Department, Faculty of Business Studies, Hajee Mohammad Danesh Science
and Technology University, Dinajpur-5200, Bangladesh assigned me to prepare a report
on contribution of EXIM Bank ltd to socio-Economic Development of Bangladesh.

1.3 Objectives of the Report

The main objective is to understand about the Corporate Social Responsibility and
Profitability of EXIM bank limited.

The specific objectives of this report are:

 To gather the practical experience base on the theoretical knowledge.

 To understand the scenario of Corporate Social Responsibility of EXIM bank
limited.
 To understand the profitability of EXIM Bank Limited.

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1.4 Chapter Outline
In this chapter, we introduce CSR, give a statement about this analysis, and discuss the
objective of the study. In chapter two we discuss about literature review of this study.
After that, we illustrate the study type, data types, and scope of the study, and represent
these. After illustrating the methodology of the study we illustrate the selected state-
owned commercial banks and private commercial banks profile. In chapter five we
represent the analytical data of selected state-owned commercial banks and private
commercial banks through some tables and graphs and illustrate the position and
compare state-owned commercial banks and private commercial banks. After showing
the tables and graphs we find out some findings from the analysis. In chapter seven we
suggest some recommendations, and policy implications and predict the future work of
the study. Chapter eight gives the conclusion of the study.

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 Chapter Two: Literature Review
There are various concepts on how the idea of performance quantity appeared. Morgan
(2004) trusts that modern performance quantity appeared in Venice in the seventeenth
period, with the appearance of the EXIM bank entry accounting. Another view is that of
the writers Johnson and Kaplan (1986) that consider that performance measurement
present during the manufactured revolution. Either way we may say with clean certainty
that performance management has issued as the dominant research area in the early,
when academics and practitioners have become by distinction the essential to
measure performance and measurement consequences (Argyrols 1952, Ridgway 1956).
Interest in arrangement and performance assessment has enhanced notably in the last 19
years (Taiichi 2008). Number of EXIM bank locations on this topic have grown
significantly over the last decade (Beamon 1999, Lohman 2004, Gunasekaran 2004).
We believe that this is mainly due to a fundamental change in business. Furthermore, per
formance is not a subject simply addressed. It is clear the essential to study and
consideration the concept and in this context to rethink how performance measurement it
is done. According to Atkinson 1997 performance measurement should help the financial
entity to comprehend and evaluate the value received from dealers and employees, the
value provided by the stakeholders and the effectiveness of processes implemented in the
economic entity and its tactical properties. So, we can say that performance quantity
plays the role of coordination, nursing and diagnosis of financial entity's activities. Marr
manages to emphasize that performance quantity is a structured method, focused on
results. Additional answer to the question "What is performance valuation?" is provided
by Maria Niculescu in "Global Strategic Diagnostics", where it studies that "performance
measurement is a method that allows you to connect an abstract concept to empirical
indicators" (Niculescu 2005). So, performance measurement tools are established to be
the indicators. The economic literature can account for dozens of definitions of
indicators. Un indicator is a division or a set of information elements, representative in
relation to a concern or an objective, resulted from tangible measuring or observing a
state of a phenomenon or an output (Bolden 2008). Since the performance of a financial
entity is partial by various factors, we consider that the indicators used to judge the
performance have to cover all performance determinants and their influence on
performance by highlighting the quantifiable aspects and also the unquantifiable ones.
The quantity "financial" or "non-financial" has not such a great importance and there is
no strict rule on the matter. Relevant conditions are different (strategic relevance,

4
operational efficiency) and can be met, as appropriate, by the financial indicators and or
non-financial (Lorino 2002). These-called "non-financial indicators”, even if they can’t
always be expressed in monetary units, their effect is reflected in other indicators of
economic and financial dimension whose size is easily translated in monetary units.
Improving the value of the entity’s activity is acting on the entity’s image (non-financial
indicator), but also on the size of turnover. Two creative writers of finance, Ahmad and
Hassan remark that EXIM banks in Bangladesh emanated into authenticity with certain
purposes, in line with the philosophy of economics that imply a direct and specific
responsibility on their part to play an effective role in the socio-economic progress of the
country. EXIM banks in Bangladesh following the philosophy of banking, performing
better than many conventional banks, gained widespread support from the customers and
contributing significantly in the socioeconomic development of Bangladesh. bank is a
economic institution, where people secure their money and use this institution as a
source of possible finance. Banking in the form in which it exists currently is moderately
of recent origin (Ahmad and Hasan 2001). Previously the arrival of up-to-date banking,
direct finance, where the owner of capital deals directly with the user of capital, was the
customary mode of transference of reserves from savers to depositors. Nowadays, banks
are organizations engaged in any or various functions i.e., receiving, , transferring,
collecting, lending, investing, dealing, paying, exchanging, repairing money and claims
to money both locally and internationally (Woelfel 1993). Bangladesh is a country
suffering from immense social, political, economic and environmental issues and these
issues need to be addressed for the overall progress of this country. However, the
economic development is one of the prime factors, which can resolve many of its current
problems. The progress of businesses the market economies have created great
opportunities for Bangladesh for further progress. Economic Progress refers to variations
that affect a local economy's capacity to create prosperity for local residents (Kane and
Sand 1988). Socio-economic development for a country means simultaneous
development in both social and economic aspects of that country. Socio - economic
progress for Bangladesh can be recognized through number social and financial pointers,
including GDP growth, poorness issues, healthcare, atmosphere, employment, education,
trade and commerce etc. The contribution of the banking segment is playing important
part in the progress of this country. The appearance in Islamic banking in Bangladesh has
added a new height in the banking sector. The role of EXIM bank seems to be
magnificently surpassed among all the Banks in Bangladesh during last one period. This
study clearly classifies that through last 28 years, EXIM bank has contributed in

5
enlightening Bangladesh economy through making positive variations to all its social and
economic indicators. Banking system has important part in the economic progress,
historically (Cameron 1972). On one hand, banks give the security of savings for the
general people, on the other side, lend money to the entrepreneurs to start new businesses
or expand their existing businesses, which ultimately create rapidity of money and
generation of employment within an economic territory. Modern banking structure is
involved in numerous financial services activities starting from lending money to
exchange money nowadays (Woelfel 1993). Defining Economic Progress, Pokrant
(2001) refers to the rising of the fruitful capacity of a country through the introduction of
policies considered to enhance the productivity of land, labour and capital, raise
standards of living and reduce or alleviate the poverty of the inhabitants of the country.
Economic development usually means improvement of standard of breathing of the
citizens by alleviating poverty through increased productivity. Scholars argue that there
is a solid relationship between poverty elevation and economic progress (Kifle, Olukoshi
and Wohlgemuth 1997). The philosophies of Islamic finances recommend interest-free
and equity-based financing through the Islamic banking system. A great scholar on
Islamic economics, Ahmad says that elimination of interest does not mean zero-return on
capital (Ahmad, 1994). Rather, Islam forbids a fixed programmed return for a certain
factor of production. I.e., one party is having assured reoccurrence and the whole risk of
an entrepreneurship to be shared by others. Instead of interest, Islamic economics
introduced profit and loss-based banking transactions, which spreads the risk between
borrower and the banks, made Islamic banks elementally different from the conventional
interest-based banks. A contemporary scholar on Islamic banking Hassan (1999) views
that the successful launching and procedure of Islamic bank in Bangladesh has
established that banking without interest is feasible. He also observes that Islamic banks
have brought together many depositors and entrepreneurs under this banking system
Easily available sulphonic acid, which can deeply injure a human face in seconds, has
appeared as a weapon nowadays used to disfigure a woman ‘s body. Social
consciousness, economic and psychological support, restoration, and strict prosecution of
laws are key to battle acid fierceness in Bangladesh (Begum 2004).

6
 Chapter Three

Methodology

3.1 Methodology of the Report:

Methods followed to perform a job or accompanying activities to complete a job is called

methodology. This record is in expressive nature. both quantitative and qualitative
records were carried out for making this document. This takes a look at calls for
numerous styles of information approximately overall performance, contribution for
socio economic development of EXIM bank of Bangladesh. Only secondary data
available have been used in preparing this report. Secondary Sources:

Annual Report- 2021 to 2016 of EXIM Bank Ltd.

(i) Different books and periodicals related to the banking sector.
(ii) Operational Manual.
(iii) Official files of EXIM bank
(iv) Economic review.
(v) Web site of Exim bank

Socio-economic development in EXIM bank

Economy
And
Finance

Science Socio-
And
Living
Economic
Technology development Conditions

Education

Figure 1.1: Conceptual Framework

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3.2 Scope of the Report

As I was an intern, my scope was limited and restricted for some purpose. I had
maintained some official formality for the collection of data of my report. This study will
give a clear idea about the execution of EXIM Bank and socio-economic development of
Bangladesh. At last, the monetary position of the bank in the banking industry based
totally on its 6 year's presentation.

 Have a wide area of gaining knowledge.

 Good communication structure.
 Good working environment.
 Evidence availability

3.3 Limitations of the Report

In spite of best efforts there were limitations that acted as barriers to conduct the study.

 The personnel of the organization did not want to release the confidential
information to the outsiders.
 owing to lack of knowledge, there is a chance of having some mistake in the
report though best effort has been applied to avoid any kind of mistake.
 Time was not sufficient to make an in-depth study on such issue.

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 Chapter Four

A brief overview of EXIM Bank

Exim Bank Limited is a bank of 21st century. It is a private commercial bank with head
office at 5, Rajuk Avenue, Dhaka, Bangladesh started operation on 3rd August 1999. The
bank has 141 branches spread wholly over the country. The founders of Exim Bank
Limited, are committed to make it a little more different and a bit special qualitatively.
This bank has a new vision to fulfill and a new goal to achieve. The bank has been
manned with experienced executives equipped with modern technology so as to make it
most efficient to meet the needs of 21st century. With assets of TK.722, 74,49,242 and
more than 3235 employees, the bank has diversified activities in retail banking, corporate
banking and international trade. The total volume of Deposits is Tk.523, 03,01,832 and
the total investment are Tk.410, 26,07,964 at the end of the year 2002 that shows a great
performance of Exim Bank Limited, The Credit-Deposit ratio is 78.44%. Till 31st
December 2021, the total amount of export is Tk.1988.40 million and the total amount of
import is Tk.3750.60 million. The expected profit of year 2022 is Tk.25 crore and The
total profit at the end of the year 2021 is Tk.12.71 crore. The bank has 10-division
namely Human Resource Division, Credit Division, International Division, Audit and
Inspection Division, Development and Marketing Division, Research and Planning
Division, Information Technology Division, General Service Division, Treasury and
Money Market Division. The bank selects its basic workforce from internal source
mainly through directors' recommendation. So in general the employees are not highly
qualified. But the executives were selected through interview and they had a long
banking experience. So, they are now the assets of the company.
(Source:https://www.eximbankbd.com/)

9
4.1 Vision

The gist of his vision is 'Together towards Tomorrow'. EXIM Bank confined believes in
friendship with its clients in its march on the road to growth and development with
carrier. To reach the desired goal, there will be pursuit of excellence at all phases with
environment of continuous improvement, because, in EXIM Bank, we trust, the line of
brilliance is never conclusion. Bank's strategic plans and networking will strengthen is
competitive edge over others in rapidly changing competitive environment. Its adapted
quality facilities to the clients with trend of constant improvement will be the cornerstone
to achieve our functioning success

4.2 Mission

The Bank`s mission comprises:

 Extracting the full advantage of Islamic banking system for its clients.
 Providing with quality financial services specially in Foreign Trade.
 Maintaining and upgrading a technology-based professional banking environment
·
 Maintenance of corporate and business ethics and transparency at all stages.
 Sound Capital Base.
 Ensure sustainable progress for the honorable shareholders.
 Fulfillment of corporate social commitments, and
 Above all, to add to the national economy.

(Source:https://www.eximbankbd.com/)
4.3 Nature of Business:

The principle activities of the bank include providing of all kinds of commercial banking
services to its customers. The activities can be classified in the following ways:

 Corporate Banking.
 Project Financing.
 SME Finance.
 Consumer Credit.

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  International Trade.
 Trade Finance.
 Loan Syndication.
 Foreign Exchange Dealing.
 Rural and Micro Credit.
 NGO- Linkage Loan.
 Investment.
 Government Treasury Function.
 Money Market Operation.
 Capital Market Operation.
 Remittance

4.4 Core strengths:

 Transparent and Fast Decision Making.

 Efficient Team of Performer.
 Satisfied Clients.
 Internal Control.
 Skilled Risk Management.
 Diversification.
4.5 Core competencies:

 Knowledge Experience and Expertise.

 Customer Orientation/ Focus.
 Transparency.
 Determination.
 Zeal for Improvement.
 Reliability.

4.6 Ethnical Principles:

EXIM Bank Limited believes that it will become a leading bank in the government
sector. They believe that their aims and objectives can only be realized fully and
sustained overtime by faithfulness to ethics that cannot always be built into sets of rules
and regulations. In this belief in ethics that motivates the bank in its dealings with
customer, regulators and employees.

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12
 Chapter Five

Contribution of EXIM Bank limited to economy

EXIM Bank executes all traditional banking functions including deposit mobilization
and lending. The bank discharges the treasury functions because the agent of the
Bangladesh financial institution. It collects tax, stamp responsibility and registration
price, operates unique financial savings debts, pays salaries to the teachers of schools,
madrasahs, and colleges and pension to retired government personnel. The financial
institution offers funding to a few earnings producing and financial development projects
namely, Poverty comfort credit application, female special credit score application, and
Agro-based totally industrial credit score program in the rural regions. It has a large share
of foreign exchange and balance sheet activity. The total volume of foreign exchange
business fingered by the bank in 2021 was Tk 497879.30 million and in 2020 it was Tk
344428.99 million, 42.5755% of which was related to exports, 56.2572% to imports, and
1.1673% to remittances. At present, the bank has communicator relationships with 395
foreign banks/bank offices throughout the world. EXIM Bank displays its effort through
a performance budget. It has a marketing intelligence unit and conducts a software of
human resources development through schooling and motivation. It delivered the
Lending hazard evaluation recommended with the aid of the financial area Reform
application. Enterprise rules of the bank in the Nineties blanketed gratifying capital
adequacy requirement, mobilizing deposits in large quantities, and making investments
in extra profitable approaches. The financial institution diverse its activities in off-
stability sheet gadgets to extend its area of operations and increase non-hobby primarily
based earning. In fine we can say that, EXIM bank is doing every category of work for
the development of the country as much as they can. Bangladesh bank does so many
developing works with the help of the EXIM bank. So, it is easy to say that EXIM bank
limited is doing so many things for the development of the country.

5.1 Bills and Clearing Section

For safety and safety in financial transaction people use economic instrument like DD,
PO, and cheque and many others. commercial banks acquire those monetary gadgets on
behalf in their customers. This process that the financial institution uses to acquire and
clear on behalf in their customer’s account, is referred to as clearing and series.
Bangladesh bank plays the position of Clearing residence for all banks. The region

13
wherein Bangladesh financial institution isn't always available EXIM bank plays the
role of clearing house on behalf of Bangladesh bank. A key feature of this department is
the use of collection facilities on behalf of its clients through a resident Bangladeshi
financial institution, Inter department clearing (IBC), out of doors bank clearing (OBC).

5.2 Contribution of GDP for Commercial Bank:

Commercial banks are also making a substantial contribution to the economic sector of
the country alongside state-owned banks. They were gambling an essential position in
the economy by means of presenting credit for businesses and at the same time
amassing money as deposits from general public through specific styles of depository
incentives. Agriculture is the main sector of our economy. According to the new GDP
measurement system, it provides about 14.23 per cent of our GDP. Unfortunately, the
share of credit given to cultivation, fisheries and forestry has declined over the years
and is now halved as the total credit size has increased. The industrial sector, which
accounts for the largest share of GDP in developed countries, is still a very weak sector,
contributing only 33.66% to GDP. But the sector remains to be the main recipient of
credit from EXIM banks. Readymade garment industries last received TK 52839.56
million and TK 50964.18 million respectively in 2021 and 2020. EXIM bank assists
government for eradicating poverty by implementing different projects. as the branches
of banks are to be had everywhere from downtown place to remotest corner of the
United States, the authorities make use of those banks to provide financial blessings for
the humans. The commercial banks have adopted modern technologies to provide better
service for the customers and make their activities easier. In this way, Commercial
banks are also making valuable contribution to economic progress of the country
alongside state-owned commercial banks.

5.3 What role EXIM bank has been playing towards the economic development in
Bangladesh?

Banks are the main stream of the economic system of a country. Banking system must
be, resilient, robust and sound for competent inter-mediation of financial properties.
scarcity of any one or all these prerequisites would not carry only disaster for the country
also price the real sector. Our government has taken various types of reform programs
time to time making banking system more effective so that positive impact of banking
system on our everyday life in financial activities can be more realized. Banks have
played most important role in the economy by accumulating the surplus capital of the

14
general public conducting economic activities through various forms of lending and
sometimes as deposit incentives. A detailed content, found the pieces of information that
have been placed below, “What role EXIM Bank Limited has been playing towards the
economic development in Bangladesh.

5.4 Role of EXIM Bank Limited in Socio-economic Development:

EXIM Bank Limited has concentrated to explore new and diversified avenues for
financing with the aim of developing and maintaining a sound and sustainable portfolio
with mitigated risk for the country. In addition, extensive work continued in agriculture,
green banking, Islamic banking, retail, SMEs and intensive lending. According to EXIM
Bank's 2015-10 financials, despite many headwinds, especially in a well-developed
business environment, it performed quite well in many key business performance
parameters such as profitability, adequacy capital and asset quality. and low speed.
Global economy. For constancy and sustainable development, the Bank maintained a
very alert and continuous effort in credit operation. “EXIM bank offer savers risky open-
ended mutual fund certificates in place of fixed-interest deposits. (This is not dissimilar
helpful banks and reciprocated in the west, where deposits earn variable interest and
double as equity.) Difficulties arise on the offering side. Preparations to share profits &
losses lead to significant problems of monitoring and control, especially in lending to
small business”. Islamic banking is trying to develop the relationship between finance on
one hand and industry and commerce on the other. This new relationship is the basis of
the emerging Islamic economic system. Although Islamic principles have not yet been
tested in international financial competition, both systems are similar in that they pursue
a close relationship between financial intermediation and the creation of economic
assets.

5.5 Role of Agriculture Sector:

Agriculture is the main sector of our economy. According to the new GDP measurement
system, it provides about 13.35 percent of our GDP. Though the total amount of credit
increases day by day, the portion of credit has decreased in agriculture, fishery and
forestry sector whether it has reduced into half a percent. The rescue of agriculture
revenue is hearty than others sectors and this credit directly affects the agricultural
production. At present EXIM bank have to continue their activities. They contain

15
collectively TK 520.22 crore as an investment. (Source: Annual report 2021 EXIM Bank
Ltd).

5.6 Role towards Employment Creation:

EXIM Bank has significantly contributed in the employment generation in Bangladesh.

The bank has employed over 3242 people directly and some millions indirectly through
financing in organizations inclusive of import-export, industrialization, SME financing
and rural improvement initiatives. So, it can be apprehended that millions of families are
directly and indirectly benefited from EXIM bank and these families are also
contributing in Bangladesh economy in various ways. According to, EXIM Banks are
providing satisfactory community service through job creation and ensuring consistency
in service provisions. CMSME sector considering the same as centre of economic
development. As a thoroughgoing Islamic Bank, EXIM Bank is contributing to economic
progress through creating employment opportunity for mass unemployed people by
investing in small and intermediate industry, trading and service sector. In this case,
Bank is committed to create quality CMSME customers to patronize and develop them
through management. Create vast employment opportunity for the huge unemployed
people by increasing CMSME sector. "Advancing Women's Entrepreneurship" is one of
the latest slogans of our economy associated with the central bank, the government's
intensive "financial inclusion" program through the Bank of Bangladesh. administrator
We are ready to tackle our core social challenges and lay the foundations for a smart,
sustainable and inclusive future of growth and competitiveness. To foster the growth and
higher levels of employment, creation of new entrepreneurs has been prioritized in
CMSME sector- the economic backbone of the country. As a thoroughgoing Islamic
Bank, EXIM Bank is contributing to economic progress through creating employment
opportunity for mass unemployed people by investing in small and intermediate industry,
exchange and service sector. In this case, Bank is committed to create quality CMSME
customers to patronize and develop.

5.7 Role in Earning Foreign Remittance:

Remittances by migrant workers' play a vital part in the economies of many labor-
exporting countries. Remittances help in macroeconomic development process in the
home country as it provides significant sources of foreign currency, increase national

16
income, finance imports and contribute to progress the balance of payment situation.
Demand for migrant workers remittances to Bangladesh has now increased
tremendously. During FY 2021 -20, remittance inflow to Bangladesh was 2307.44
billion taka (US $22.07 billion). In the year 2021, EXIM Bank received BDT 5.81 billion
(equivalent USD 69000 million) as wage earners' remittance by handling 66,177 number
of transactions. Inward Remittance increased by 9.42 % in 2021 equivalence to 2020.
Because of clients' confidence on the EXIM bank remittance management, it claimed
28% market share helping Bangladesh economy to become healthier. (Source: Annual
report 2021 EXIM Bank Ltd).

5.8 Role in Strengthening Rural Economy:

EXIM Bank Limited has been providing Agricultural & Rural investment since 2000.
Bank has a isolated Agricultural & Rural Investment Division at Head Office in the
name of “Investment Risk Management Division-3 (IRMD-III)”. Bangladesh Bank has
fixed up disbursement target of Tk.791.00 crore in FY 2022-2021 and we are in 4th
position among 40 private marketable banks (Bangladesh Bank has fixed global goal of
Tk.28,391 crore in FY 2022-2021). Agricultural sectors (crops, fisheries, livestock,
horticulture & forestry) contribute 13.35% of GDP of our country (Based on FY 2005-06
Fixed Price) and 40.60% working people directly depend on Agriculture and 85% people
income directly and indirectly relate with agricultural sectors (Source: Bangladesh Bank)
EXIM Bank has introduced another new Agricultural & Rural Investment product named
"EXIM FARMER". It is designed to provide agricultural and rural investments against
deposits of all types and guarantees through contracts in case of social difficulties. Due
to strong and continuous supervision and monitoring over Agricultural & Rural
investment from Head office & Branch level of Bank, the recovery rate is near about
98%. They are FY 2012-2013, FY 2013-2014 and FY 2014-2015. To achieve the goals
of agricultural and rural investment development for the third consecutive time, we have
prepared three "Letters of Appreciation" from the Governor of Bangladesh Bank. We
have also achieved more than 100% target in Agricultural & Rural Investment in FY
2015-2016, FY 2016-2017, FY 2017-2018, FY 2018-2019 & FY 2019-2020.EXIM Bank
is quickening the sustainable progress of rural economy of the country by investing in
the micro and cottage industry and giving special attention to the neglected and un-
banked women entrepreneurs as well as trying to connect them with the economic
development process of the country.

17
(Source: Annual report 2021 EXIM Bank Ltd).

5.9 Role in Promoting Green Banking:

Green banking is identified as an ethical, social or sustainable bank that considers the
social and environmental impact of its investments. A truly green bank reduces its
carbon footprint by building more efficient buildings and branches, implementing more
efficient operating procedures that promote sustainable banking, and increasing
investment in environmentally sensitive industries. EXIM bank insists on going green to
help the atmosphere by promoting its. They issued an important green banking circular to
implement internal environmental management with all regions and branches.
Knowledge of online banking, mobile banking or socially responsible investment
reserves for sustainable and green project finance. EXIM Bank's Green Banking
expertise extends to its internal operations and product ecosystem. Banks can develop
environmentally friendly financial products (eg green products), such as energy-efficient
financing or environmental technology leasing. (Source: EXIM Bank Web site).

5.10 Role in the Country’s Industrialization:

In developed countries, the industrial sector serves as the main sector of the GDP, but,
unfortunately, the indicators of this sector are very weak here, and the participation of
the sector in the GDP is 33.66%.This sector gets the highest credit from commercial
banks. As per investment policy of EXIM bank, top priority has been given towards the
industrial development of the country. The bank’s Investment portfolio is gradually
being increased towards industrial finance along with commercial investment. EXIM
bank 's investment in industrial sector is substantially higher compared with those of
other commercial Banks. Total investment for projects finance together with investment
stood at Tk. 428,204.91 crore as on 31st December 2021 as against Tk. 3929.19 billion
as on 31st December 2020 resulting in 8.98% growth. EXIM bank has invested in a
wide range of businesses including in textile and garments, steel and engineering, agro-
based industries, food and beverage, jute, leather, spinning mills, edible oil refiner,
rice/flower/pulse mills, bricks and sand factories, paper product, gas/electric/power gen
comp, ship building and ship breaking and so on.(Source: Annual report 2021 EXIM
Bank Ltd).

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5.11 Corporate Social Responsibility (CSR)

CSR refers to participate social and environmental concern by business organization

At least 2% of our annual profit of every year is put aside for the foundation to
conduct Corporate Social Responsibilities (CSR) activities. The mainstream CSR
activities that are carried out through this foundation are:
1. Healthcare service.
2. Scholarship program for brilliant poor student
3. Education Promotion Scheme
4. Helping people affected by natural calamities
5. Helping people in slum areas
6. Donation to educational institutions to setup computer lab
7. Beautification of Dhaka Metropolitan
5.11.1 Healthcare Service:

A 10,000 square feet, 5 storied building at 840 Kazie Para, Dhaka-1216 has been leased
to set up EXIM Bank Hospital. The decoration of this hospital is going on in full swing.
A doctor has been recruited who is working as a resident director of the hospital. Other
doctors and hospital staffs have been in the process of selection through recruitment
notice already published in the national dailies. They will be appointed as soon as the
decoration of the hospital is complete.

5.11.2 Scholarship program for brilliant poor student:

This is a stipend package deal for terrible and meritorious college students that takes care
of the beneficiaries for the duration of their pupil existence. The EXIM Bank limited
Scholarship Program started in 2006 with 60 horrified and skilled students selected from
a selected prestigious institution of Dhaka city which includes govt. Laboratory
excessive college, Viqarunnissa noon college and university, Dhaka university, BUET,
Dhaka clinical university, etc. Enrolled as many as 1000 students from around 150

19
reputed educational institutions across the country by 31 December 2008. They are
enrolled in the this programme to be taken care of for their whole educational life subject
to their implementation of the eligibility criteria that include pleasing academic results,
noninvolvement in student politics, financial insolvency etc. So far Tk. 19.3 million has
been expended as scholarship under this programme.

5.11.3 Education Promotion Scheme:

Under Education Promotion Scheme, quard or investment without profit is provided for
poor and latent admirable students to help them bear monthly educational expenditure
including academic expenses, food, accommodation, etc. The quard is expended to the
nominated students in monthly installments till their accomplishing the master degree.
Under this programme the students are obligatory to repay the amount (only the principal
amount) in long-term monthly installments after they have joined a confirmed job
accomplishing their education properly. By 31 December 2008, Tk. 19.7 million was
sanctioned to take care of around 138 poor and latent talent students from a number of
reputed educational institutions like Dhaka University, Chittagong University, Dhaka
Medical College, BUET, SUST, Bangladesh Agricultural University etc. (Source:
Annual report 2021 EXIM Bank Ltd).

5.11.4 Helping people affected by natural disasters:

Another important area to engage in as part of our CSR activities is helping people
survive natural disasters. As part of this social support programme, EXIM Bank limited
provides immediate cash and in-kind assistance to people affected by floods, fires or
cyclones and cold weather. The purpose of these CSR activities is to help target groups
overcome temporary obstacles and contribute to socio-economic development as soon as
possible.

5.11.5 Helping people in slum areas:

Besides natural calamities, fire breaks out sometimes in slum areas that guts the shanties
and renders the affected people totally helpless. In that situation, we help the victims
fight against the hard days and return to normal life.

5.11.6 Donation to educational institutions to setup computer lab:

20
They've got donated to Dhaka university and Chittagong college to installation laptop
labs that help the scholars of these universities collect ICT know-how. this could
genuinely assist the scholars to be geared up to take the challenges of this information
society. (Source: Annual report 2021 EXIM Bank Ltd).

5.11.7 Beautification of Dhaka City:

In response to the decision of the Dhaka metropolis employer, EXIM financial institution
has been sharing an excellent portion of the immense mission of beautifying the capital
on the grounds that 2005. To make the capital a contemporary town enriched with good
enough city facilities, EXIM financial institution usually joins arms with the authorities.
(Source: Annual report 2021 EXIM Bank Ltd).

21
 Chapter Six

Analysis of economic contribution of EXIM Bank limited.

The following are the various techniques can be adopted for the analysis and
interpretations of financial statement.
 Mean value(µ)
 Standard deviation (σ )
 Linear trend model. (Y)=a+bX

 Where, Y–is the dependent variable which also denotes yearly Investment
 a-is the constant value of the investment
 b-is the slope of this regression model which indicates average increase of the
investment.
 X- is the independent variable which denotes year Industry wise Investment
Table-1: Analysis of economic contribution of EXIM Bank

Category of 2021 2020 2019 2018 2017 2016

Industry Amount in Amount in Amount in Amount in Amount in Amount in
Crore (Tk) Crore (Tk) Crore (Tk) Crore (Tk) Crore (Tk) Crore (Tk)

Garments 5253.96 5096.42 4102.81 3525.26 4056.87 3746.97

Agro-based 4086.06 3951.65 3560.71 3411.76 2583.84
industry 2451.14
Spinning 1545.84 1797.89 1583.17 1464.63 1347.02 1313.76
Contractions 4717.88 4483.63. 4198.62 3468.02 3248.55 3081.74
Rural credit and 520.22 433.54 373.56 333.55 296.86 193.33
Agriculture
Trading and others 25342.56 21920.91 18842.04 17033.93 12634.22 10262.74
Textile, Dying & 786.53 762.25 677.09 678.79 770.25 708.33
print
Fuel &power 863.24 847.20 747.776 554.63 468.99 379.81
Transport & 194.42 432.02 616.54 365.59 270.60 271.04
communication

22
Tk (crore)

Investment to Garments
6000

5253.96
5000 5096.42

4000 4102.81 4056.81

3746.97
3525.26
3000

2000

1000

0
2021 2020 2019 2018 2017 2016

Figure 6.1: Investment to garments activities of EXIM Bank

mean:( µ)= 4297.0383

standard deviation (σ )= 713.91

Linear trend model: (Y)=a+bX

=3173.91+320.895X

Interpretation: in the above figure highest contribution is 5253.96 crore in 2021. average
contribution is 4297.083 crore. Standard deviation 713.91 indicate that dispersion from
central value is 713.91 Linear trend model 3173.91+320.895X indicate that each year
increment increases 320.895 crore.

23
Tk (crore)

Invesment to Agro-based industry

4500
4086.06
3951.65
4000
3560.71
3500 3411.76

3000
2583.84
2451.14
2500

2000

1500

1000

500

0
2021 2020 2019 2018 2017 2016

Figure 6.2: Investment to agro-based activities of EXIM Bank.

mean:( µ)= 3340.86 crore

standard deviation (σ )= 685.04

Linear trend model: (Y)=a+bX

=2098.162+355.05657X

Interpretation: in the above figure highest contribution is 4086.06 crore in 2021. average
contribution is 3340.86 crore. Standard deviation 685.04 indicate that dispersion from
central value is 685.04 Linear trend model 2098.162+355.05657X indicate that each
year increment decreases 355.056 crore.

24
Tk(crore)

Investment to Spinning
2000

1800 1797.89

1600 1583.17
1545.84
1464.63
1400
1347.02 1313.76
1200

1000

800

600

400

200

0
2021 2020 2019 2018 2017 2016

Figure 6.3: Investment to spinning activities of EXIM Bank

mean:( µ)= 1508.72 crore

standard deviation (σ )= 176.997

Linear trend model: ( Y)=a+bX

=1245.56+75.19X

Interpretation: in the above figure highest contribution is 1797.89 crore in 2020. average
contribution is 179.04 crore. standard deviation 130.36 indicate that dispersion from
central value is 130.36. Linear trend model 50.29+32.20X indicate that each year
increment increases 32.20 crore.

25
Tk (crore)

Investment to rural credit and agriculture

600

520.22
500
433.54

400 373.56
333.55
296.86
300

193.33
200

100

0
2021 2020 2019 2018 2017 2016

Figure 6.4: Investment to rural credit and agriculture activities of EXIM Bank.

mean:( µ)= 358.51 crores

standard deviation (σ )= 112.88

Linear trend model: ( Y)=a+bX

= 150.06+59.56X

Interpretation: in the above figure highest contribution is 520.22 crore in 2021. average
contribution is 353.51 crore. standard deviation 112.88 indicate that dispersion from
central value is 112.88 Linear trend model 150.59+59.56X indicate that each year
increment increases 59.56 crore.

26
Tk (crore)

Investment to constractions industris

5000 4717.88
4483.63
4500
4198.62
4000
3468.02
3500 3248.55
3081.74
3000

2500

2000

1500

1000

500

0
2021 2020 2019 2018 2017 2016

Figure 6.5: Investment to constructions industries activities of EXIM Bank .

mean:( µ)= 3866.4067

standard deviation (σ )= 688.84

Linear trend model: ( Y)=a+bX

=2604.75+360.47X

Interpretation: in the above figure highest contribution is 4717.88 crore in 2021. average
contribution is 3866.4067 crore. standard deviation 688.84 indicate that dispersion from
central value is 688.84. Linear trend model 2604.75+360.47X indicate that each year
increment increases 360.47 crore.

27
Tk (crore)

Investment toTrading and others industries

30000

25342.56
25000
21920.91

20000 18842.04
17033.93

15000
12634.22
10262.74
10000

5000

0
2021 2020 2019 2018 2017 2016

Figure 6.6: Investment to trading and others activities of EXIM Bank

mean:( µ)= 17672.73 crore

standard deviation (σ )=1030.74

Linear trend model: ( Y)=a+bX

=7166.005+3001.92X

Interpretation: in the above figure highest contribution is 3384.72 crore in 2019. average
contribution is 2118.35 crore. standard deviation 1030.74 indicate that dispersion from
central value is 1030.74. Linear trend model 528.71+397.41X indicate that each year
increment increases 397.41 crore.

28
Tk (crore)

Investment to Textile,Dying &print industries

800
786.53
780 770.25
762.25
760

740

720
708.33
700
677.09 678.79
680

660

640

620
2021 2020 2019 2018 2017 2016

Figure 6.7: Investment to textile activities of EXIM Bank.

mean:( µ)= 730.54 crores

standard deviation (σ )= 48.47

Linear trend model: (Y)=a+bX

= 694.01+10.44X

Interpretation: in the above figure highest contribution is 786.53 crore in 2021. average
contribution is 730.54 crore standard deviation 48.47 indicate that dispersion from
central value is 48.47. Linear trend model 694.01+10.44X indicate that each year
increment increases 10.44 crore.

29
Tk(crore)

Investment to Fuel & power industries

1000

900 863.24 847.2

800 747.776
700

600 554.63

500 468.99

400 379.81

300

200

100

0
2021 2020 2019 2018 2017 2016

Figure 6.8: Investment Fuel and power activities of EXIM Bank.

mean:( µ)= 643.61 crores

standard deviation (σ )= 204.22

Linear trend model: (Y)=a+bX

= 269.12+106.997X

Interpretation: in the above figure highest contribution is 863.24 crore in 2021. average
contribution is 643.61 crore. standard deviation 204.22 indicate that dispersion from
central value is 204.22. Linear trend model 263.12+106.997X indicate that each year
increment increases 106.997 crore.

30
Tk(crore)

Investment to Transport & communication

700
616.54
600

500
432.02
400 365.59

300 270.6 271.04

194.42
200

100

0
2021 2020 2019 2018 2017 2016

Figure 6.9: Investment to transport & communication activities of EXIM Bank

mean:( µ)= 358.3683 crores

standard deviation (σ )= 151.22

Linear trend model: (Y)=a+bX

= 323.16+10.06X

Interpretation: in the above figure highest contribution is 616.54 crore in 2019. average
contribution is 358.37 crore. standard deviation 151.22 indicate that dispersion from
central value is 151.22. Linear trend model 323.16+10.06X indicate that each year
increment increases 10.06 crore.

31
Table 2: Analysis result of different industries

Category of mean value(µ) standard deviation Linear trend model

Industry (σ ) (Y)=a+bX

Garments 4297.04 713.91 3173.91+320.895X

Agro-based 3340.86 685.04 2098.16+355.057X

industry

Spinning 1508.72 176.997 1245.56+75.19X

Rural credit And 358.51 112.88 150.06+59.56X

Agriculture

Trading and 17672.73 1030.74 7166.005+3001.92X

others

Constrictions 3866.41 688.84 2604.75+360.47X

Fuel &power 643.61 204.22 269.12+106.997X

Transport & 358.37 151.22 323.16+10.06X

communication

Textile, Dying 730.54 48.47 694.01+10.44X

&print

Interpretation: in the above figure highest average contribution is 17672.73 crore in

trading industry This means that trading industry is getting more credit from EXIM bank.
Highest standard deviation 1030.74 indicate that dispersion from central value is
1030.74. this refers that more risky in trading and others for credit of EXIM bank.

32
 Analysis of contribution to society of EXIM Bank LTD
Corporate Social Responsibility (CSR): EXIM Bank Limited has been rendering various
services for attaining greater social goals and objectives. followings are the major
categories of CSR.

1. Education:

Tk (crore)

education
20 19
18

16

14

12

10

8
6.24
6 4.87 5.17
4.58
4 3.38
2.46
2

0
2021 2020 2019 2018 2017 2016 2015

Figure 6.10: Education activities of EXIM Bank.

mean ( µ)=6.529 crores

standard deviation (σ )= 5.63

Linear trend model: ( Y)=a+bX

=12.063-1.38X

Interpretation: in the above figure highest contribution is 19 crores in 2016. average

contribution is 6.523 crore. standard deviation 5.63 indicate that dispersion from central
value is 5.63. Linear trend model 12.063-1.38X indicate that each year increment
decreases 1.38 crore.

33
2.Heathcare:

Tk (crore)

16
14.75
14 13.22

12

10

8 7.6

5.93
6

4
2.8

2 1.19 1.05

0
2021 2020 2019 2018 2017 2016 2015

Figure 6.11: Health activities of EXIM Bank.

standard deviation (σ )=5.57

Linear trend model: (Y)=a+bX

= -2.627+2.319X

Interpretation: in the above figure highest contribution is 14.75 crore in 2021. average
contribution is 6.6486 crore. Standard deviation 5.57 indicate that dispersion from
central value is 5.57. Linear trend model -2.627+2.319X indicate that each year
increment increases 2.319 crore

34
3. Humanitarian and disaster management:
Tk (crore)

humanitarian &disaster management

70
64.23

60

50 48.71 48.41
45.04
42.61
40

30 25.82
21.18
20

10

0
2021 2020 2019 2018 2017 2016 2015

Figure 6.12: Humanitarian and disaster management activities of EXIM Bank.

mean:( µ)=42.2857crores

standard deviation ( σ )=14.63

Linear trend model:(Y )=a+bX

=21.61+5.17X

Interpretation: in the above figure highest contribution is 64.23 crore in 2019. average
contribution is 42.2857 crore. standard deviation 14.63 indicate that dispersion from
central value is 14.63. Linear trend model 21.61+5.17X indicate that each year increment
increases 5.17 crore.

35
4. Art and Culture:

Tk (crore)

art & culture

2
1.78
1.8

1.6 1.49
1.4 1.31 1.33

1.2

0.8
0.67
0.6

0.4 0.29
0.2
0.067
0
2021 2020 2019 2018 2017 2016 2015

Figure 6.13: Art and culture activities of EXIM Bank.

mean :( µ)=1.0771 crores

standard deviation (σ )=0.537547

Linear trend model: (Y)=a+bX

=1.8-.18X

Interpretation: in the above figure highest contribution is 1.78 crore in 2015. average
contribution is 1.0771 crore. standard deviation 0.536 indicate that dispersion from
central value is .536. Linear trend model 1.8-.18X indicate that each year increment
decreases .18 crore.

36
5. Miscellaneous:

Tk (crore)

miscellaneous
18
16.51
16

14

12 11.69

10

8 7.16 7.5

6
3.74
4

2 1.74
1.25

0
2021 2020 2019 2018 2017 2016 2015

Figure 4.14: Miscellaneous activities of EXIM Bank.

mean :( µ)=7.084 crores

standard deviation (σ )=5.5380

Linear trend model: (Y)= a+bX

=1.56+1.38X

Interpretation: in the above figure highest contribution is 16.51 crore in 2020. average
contribution is 7.084 crore. standard deviation 5.54 indicate that dispersion from central
value is 5.54. Linear trend model 1.56+1.38X indicate that each year increment increases
1.38 crore.

37
Total contribution:

Tk (crore)

total contribution
90

80 79.2 80.89 79.79

70

60 61.45
56.5
50
44.46 43.07
40

30

20

10

0
2021 2020 2019 2018 2017 2016 2015

Figure 6.15: Total CSR activities of EXIM Bank.

mean :( µ)=63.62 crores

standard deviation (σ )=16.569

Linear trend model: (Y)= a+bX

=-34.4+7.31X

Interpretation: in the above figure highest contribution is 80.98 crore in 2020. average
contribution is 63.62 crore. standard deviation 16.569 indicate that dispersion from
central value is 16.569. Linear trend model 34.4+7.31X indicate that each year
increment increases 7.31 crore.

38
Financial Highlights of CSR expenditure of EXIM bank (Last Six Years):

Table-3: Financial Highlights of CSR expenditure of EXIM bank.

Years (Taka)

Sector 2021 % 2020 % 2019 % 2018 % 2017 % 2016 %

Education 3.38 4.27 2.46 3.04 4.58 5.74 6.24 10.2 4.87 8.6 19.00 42.7

Health 14.75 18.6 13.22 16.34 5.93 7.43 7.60 12.4 1.19 2.11 1.05 2.36

Disaster 48.71 61.5 48.41 59.84 64.23 80.5 45.04 73.3 42.61 75.4 21.18 47.6

Management

Culture 0.67 0.85 .29 0.36 1.31 1.64 1.33 2.16 0.67 1.19 1.49 3.35

Welfare

Other 11.69 14.8 16.51 20.41 3.74 4.69 1.25 2.03 7.16 12.7 1.74 3.91

Total 79.20 100 80.89 100 79.79 100 61.45 100 56.5 100 44.46 100

39
CSR Contributions of Commercial Banks in Different areas:

EXIM bank limited

EXIM Bank set out its journey on 3 August 1999 with the resolution of corporate
governance, transparency, inclusive growth and welfare of the society. Since then the
bank has been closely monitoring the socio-economic and environmental effect of its
day-to-day operations and responsibly performing in line with guidelines of regulatory
authorities and expectations of the stakeholders. EXIM Bank has been carrying out
various CSR activities which are aimed at well-being of the poor and distressed people,
assisting government welfare programs & healthcare projects, providing aid while people
falls in distress due to natural calamities, river erosion or man-maid disasters, promoting
sports, arts & culture, etc. in the light of the CSR guidelines of Bangladesh Bank.

CSR activities of EBL

Education
Others 4%
15%
Health
Culture Welfare 19%
1%

Disaster Management
62%

Figure 6.16: CSR activities of EXIM Bank-2021

In the year 2021, they contributed Tk. 79.20 crore in CSR activities where (see Figure 1)
4% of the money is donated to education sector. They also donated 19% of the money to
health, 61% to disaster management, 1% to culture welfare, and remaining 15% to other
social activities. So, EXIM bank as a responsible corporate body has been playing a
pioneering role in implementing social and philanthropic programs to help disadvantaged
people of the country. (Source: Annual report 2021 EXIM Bank Ltd).

40
 First Security Islamic Bank (FSIB):

FSIBL always elongated their facilitation for the afflicted community in education,
health and various natural calamities as a part of CSR. The bank contributes almost 5%
of its operational profit in this project. Since its inception, FSIBL has contributed to the
nation's health, education, disaster preparedness and sports development in addition to
banking activities.

CSR Activities of FSIB

11%
24% Education
Health
Culture Welfare
Disaster Mangaement
8%

56%

Figure 6.17: CSR activities of FSIB-2021.

In the year 2021, they contributed Tk. 273361060 in CSR activities where (see Figure 1)
11% of the money is donated to education sector. They also donated 56% of the money
to health, 24% to disaster management, 9% to culture welfare. (Source: FSIB Annual
report 2021).

41
 Mercantile Bank Limited (MBL):

MBL trusts that, true success does not consist in profit maximization only rather in doing
something for the improvement of deprived part of the society. With this vision, MBL
established a foundation named "Mercantile Bank Foundation" in 2000, a year after its
establishment, to work for the underprivileged and disabled. Actually, the foundation has
been promoting a conversation between the bank and its community people. Since the
inception, MBL Foundation took part in several social welfare activities. MBL has been
playing a very significant role in performing CSR activities in different sectors, including
education, health, environment, sports, Humanitarian & disaster relief, Arts & Culture,
and some of the important areas where the bank carries out its social and philanthropic
activities.

CSR Activities of MBL

3% 8% Education
9%
Health
12% Disaster mangement
26% Culture welfare
Covid-19
Other

41%

Figure 6.18: CSR activities of MBL-2021.

In the year 2021, they contributed Tk. 248.86 million in CSR activities where (see Figure
1) 8% of the money is donated to education sector. They also donated 26% of the money
to health, 41% to disaster management,12% to art & culture,9% to special CSR for
covid-19 and remaining 4% to other social activities. (Source: MBL annual report 2021).

National Bank Limited (NBL):

42
National bank constrained basis became installed in 1989 to satisfy the duties of welfare
for the society. A rural financial institution has established a public university in
Moghbazar with about 997 students studying in the faculty sector from class one to tenth
and 121 students studying in the university sector.In 2010, 94 college students regarded
at the SSC exam and ninety-two on the H.S.C exam and in both the examinations 100%
got here out effectively. The financial institution has been accommodating expectant
graduates of diagnosed universities for finishing their internship. National bank limited
has additionally awarded scholarships to outstanding youth bank staffs and allocated
8.12 lakhs to various educational sectors. sports events and cultural sports.

CSR activities of NBL

10% 11% Education

Disaster management
Culture welfare
21% 17% Environment
Relief fund
Health

21%
21%

Figure 6.19: CSR activities of NBL-2021.

In the year 2021, they contributed Tk. 436.1 million in CSR activities where (see In
Figure 1) 11% of the money is donated to education sector. They also donated of 16% to
disaster management,21% to art & culture,21% to environment,10% to health and
remaining 21% to relief fund social activities. (Source: NBL annual report 2021).

43
 Dhaka Bank:

Corporate social responsibility refers to a self-regulatory mechanism that ensures that

banks comply with regulatory spirit, moral standards, national or global standards. The
Bangladesh Financial Institutions CSR Guiding Principles are the guiding principles for
the development of the CSR roadmap. Financial institutions in Dhaka give priority to
long-term packages over short-term packages, which have a long and lasting impact on
the people and society of the country. Dhaka Bank of Bangladesh's CSR (Corporate
Social Responsibility) is in line with the above philosophy set by the Board of Directors
of our financial institution. By 2021, Dhaka Financial Institution has spent BDT 166.5
million for the development of the country as a whole.

CSR activities of Dhaka bank

8% 0% 10%
Education
Health
Disaster
31% Culture Welfare
other

51%

Figure 6.20: CSR activities of Dhaka Bank-2021.

In the year 2021, they contributed Tk. 160.65 million in CSR activities where (see Figure
1) 9.88% of the money is donated to education sector. They also donated 50.34% of the
money to health, 31.13% to Disaster management,8.62% of the money to Culture welfare
and remaining .036% to other social activities.

(Source: Annual report 2021 Dhaka Bank Ltd).

44
 Al-Arafah Islami Bank (AIBL):

Al-Arafah Islamic worldwide faculty & university has been set up by using the Al-
Arafah financial institution foundation for you to constructing next era in keeping with
the ideals of peace and equality of Islam and to setting up banking and different aspects
of existence within the way of Islam. The high purpose of this Islamic worldwide college
& university is to make a contribution towards building human aid and within the
broader sense to ensure human safety. With the view Al-Arafah Islamic financial
institution basis has hooked up Al-Arafah Islamic worldwide faculty & college at
Dhanmondi in 1998. Such organization up to degree of its kind is for the primary time in
Bangladesh.

Al-Arafah Islami Bank

4%

Education
37% Health
Environment

58%

Figure 6.21: CSR activities of AIBL-2021.

In the year 2021, they contributed Tk. 149.60 million in CSR activities where (see
Figure) 4% of the money is donated to education sector. They also donated 5% of the
money to health, 38 % to Environment social activities.

(Source: AIBL Annual report 2021).

45
Table 4: Contribution to CSR Activities by Banks - 2021
In million
Sectors EXI % AIBL % FSIB % MBL % DBL % NBL %
M L
bank
Education 3.38 4 6.50 4 30.5 11 20.51 8 15.87 9.88 55.3 11

Environment _ _ 56.00 38 _ _ _ _ _ _ 100 21

Health 14.75 19 87.10 58 153.7 56 64.70 26 80.86 50.34 50.00 10

Arts and 0.67 1 _ _ 23.1 9 30.75 12% 13.85 8.62 100 21

Culture
Disaster 48.71 61 _ _ 66.1 24 102.80 41 50.00 31.31 80.3 16
Management
Environment _ _ _ _ _ _ _ _ _ _ 100 21

Special CSR _ _ _ _ _ _ 21.60 9 _ _ _ _

for covid-19
Others 11.69 15% _ _ _ _ 8.50 3% 0.058 0.036 _ _

Total 79.20 10 149.60 100 273.4 100 248.86 100% 160.65 100 4861 10
0 0

Comparative Analysis of CSR Contributions:

All the banks like exhibit that they are contributing to society, however if we compare
the amount with their income, it shows that the amount is very little. Table 2 shows the
connection between profit before tax and CSR contribution of these six banks. Most of
the banks have contributed a very nonsensical amount to CSR in proportion of their
profit before tax. Among the 6 banks EXIM bank contribution is the highest, being
19.37% of their profit in the year 2021. MBL is in the second position by contributing
7.86% of their profit. AIBL is in the last position by contributing only 3.19% of their
profit.

Table 5: Contribution to CSR in Proportion to Their Profit

Banks 2021
Contribution to Profit before tax % Of
CSR (In millions) (In millions) Profit
EXIM Bank 792.00 4089.55 19.37
AIBL 149.60 4690.31 3.19
FSIBL 273.4 5902.11 4.63
MBL 248.86 3164.71 7.86

46
 DBL 160.65 4114.13 3.91
NBL 486.1 6549.03 7.42

Chapter Seven

Findings and Recommendations

7.1 Findings

 Through EXIM bank is playing a significant role in developing economy of

Bangladesh but all relevant data could not be procured from the relevant
industries who financed by EXIM bank and funder our economy.
 In the linear regression model, educational attainment according to the Export-
Import Bank shows a negative annual abnormal growth rate.
 In the graph of contribution to the art and culture is declining after 2017.
 Investment to spinning is decreasing in last year from EXIM Bank. but it is key
sector of our country of foreign remittance.
 Garments investment is increasing by EXIM bank limited.
 EXIM Bank’s foreign exchange rate increased last year.
 Investment to textile is normal and increasing of EXIM Bank limited.
 Transport & communication industry investment is decrease after 2019.
 Rural credit and agriculture investment is increase.
 EXIM Bank expended a large amount of their profit as CSR activities.
 The practicing zone of CSR in EXIM Bank is mostly in education, Disaster relief,
health Sports, Social awareness, And Social development.
 The banking culture and environment is also friendly.
 EXIM Bank promotes different donation program for develop the life styles of
society.
 EXIM Bank is performed to meet the ethical values.

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7.2 Suggestion:

 EXIM bank limited may increase Investment to garments and textile industries
for better acceptance of our country.
 EXIM bank limited may also increase contribution to education, healthcare, arts
and culture etc.
 EXIM bank limited may compare their own contribution to other better one and
provide better service to others.

 Primary school sector is very slow-footed in our country. EXIM bank

can bring up their social responsibility in this root sector. They can
offer scholarship this sector and thus country can avail as well as take
a role of social liability by this sector.

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 Chapter Eight
Conclusion, Policy implications and Future work

6.1 Conclusion

As a bank EXIM Bank Limited has to do a lot of things for the betterment of the country.
The Bank is strongly positioned in the market and with its core strengths it can match
shareholders expectations and thus raise their wealth in future through ethical banking
and best pricing. Thus, it has to take initiative so that it can fulfill the desire of the govt.
as well as people. It will enhance more public services and build up working teams
to provide the best services to its valuable customers. Efficient export team, import team
and remittance team must be formed and perform duties properly. It has excessive
impression on the banking business and other segments of the economy. For this, govt.
help is essential and it is expected that govt. will extend its hand for implementing the
recommendations for the welfare of the people of Bangladesh. The current status of
EXIM Bank is satisfactory. But in an age of competition, if a bank does not provide
excellent service, that is, if it does not provide excellent service, it will be difficult to
keep the bank going because everyone wants to maintain quality. There is usually a
problem with the banking department of EXIM Bank of Bangladesh. On the other hand,
EXIM Bank Limited's liquidity, efficiency and leverage ratios are satisfactory. This is a
good position for EXIM Bank Limited. However, the bank's activity is not satisfactory.
Therefore, EXIM Bank Limited should generally deal with the issue as soon as possible.
And if EXIM Bank Limited can solve these problems, it will have a structure that cannot
be compared to other banks operating in Bangladesh and abroad. EXIM bank Limited is
one of the fastest growing and best performing banks in Bangladesh. Excellent teamwork
and banking among top management, employees, investors, custodians and other
stakeholders. This study has portrayed clear a picture of EXIM bank’s role in the
economic progress of our country. If this trend remains continued, EXIM bank’s
contribution will make significant impact on the social and environmental issues in the
near future, in addition to the economic wellbeing of the country.

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6.2 Policy implications

By this report all kinds of people will be benefited. Customer know about the financial
situation of this institution. It will be useful for banking sector to improve their banking
activities. The researchers, investors/lenders, employees, suppliers and government
agencies will get valuable information and it will be helpful for their research work.

6.3 Future work

Many different experiments have been left for the future due to lack of time, lack of
opportunity. This study covers only 45 days’ period so, in future any one selects this
topic and analyses deeply and explore other factor such as “profit maximization”,
“Remittance activities”, “Contribution of Islamic banking”, “Customer interaction of
Islamic banking”,etc.

50
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Web References:

1. Annual report of EXIM Bank Limited 2015-2021.

2. Bangladesh bank website.
3. First Security Islamic Bank annual report -2021
4. National Bank limited annual report-2021
5. Dhaka Bank limited annual report-2021

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6. Mercantile Bank Limited annual report-2021

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