report on shahjalal islami bank

8/13/2019 Report on Shahjalal Islami Bank

1/86

I ntroduction of the report:

In the backdrop of economic liberalization and financial sector reforms, a group of highlysuccessful local entrepreneurs conceived an idea of floating Islamic banking system. For them, itwas competence, excellence and consistent delivery of reliable service with superior valueproducts based on Islamic Shariah. Lending money is the major part of a bank.The report

basically focuses on General Banking Operation of Shahjalal Islami Bank Limited (SJIBL),Mitford Branch was established on 9th September, 2001 as a private company. It has beenconverted to commercial operation in accordance with interest free Islamic Shariah basedcommercial bank on that day. More over this report will help me to understand the culture of

work in a bank. I have mentioned all the things in the report whatever I have learned and haveknown from my internship in the Shahjalal Islami Bank Limited, Mitford Branch.

Background of the study:

I have to prepare a report on the General Banking Operation of Shahjalal Islami Bank Ltd. forthe partial fulfillment of the internship course of MBA program. In this report I will include the


2/86

function of General Banking of Shahjalal Islami Bank Ltd., Which will easily understandable tothe readers.

Bank is the heart of the economics and banking is the blood circulation of countrys economicgrowth. Banks perform a significant role to serve the needs of the society in different sectors,such as: capital formation, large scale of production, industrialization, growth of trade andcommerce etc. and banks are contributing a lot of aspect.

Shahjalal Islami Bank Bangladesh Limited has already emerged as one of the world widerecognized banks due to its retail product management which are part of general banking

according to the principles of Islamic Shariah. Islamic banking is a new diminution of interestfree banking where Riba or interest is strictly prohibited. So I have tried to represent their

performance and problems and prospects on the ground of general banking.

Objective of the Report:


3/86

The main objective of the report is to fulfill the requirement of MBA program. For this I had toattach with an organization and I chose SJIBL. For this I have some practical job related

experience with my academic knowledge.

The objective of the study may be viewed as:

Broad objective Specific objective

Broad Objective:

The general objective of this report is to complete the internship program and submit a report. Asper requirement of MBA program of AsianUniversity of Bangladesh, one student needs to workin a business organization for three months to acquire practical knowledge about actual Businessoperation.

Specific Objective:


4/86

To present an overview of Shahjalal Islami Bank Limited. A general description of the banking activities of Shahjalal Islami Bank Limited. To submit a brief description about the General Banking Department and their activities. To suggest remedial measurement for the improvement of the whole process of the

General Banking Department.

Scope of the Report :

The report will illustrate a basic reflection about the Shahjalal Islami Bank Limited present

condition of the bank in private banking sector, various schemes of SJIBL, interest rate andactivities, credit management system of SJIBL etc. Since I am working in the Shahjalal IslamiBank Limited, Mitford Branch, I get the opportunity to gain knowledge of different part ofbanking system. I got the opportunity to work in all three divisions such as General Bankingdivision, investment division, and foreign exchange division. And from these three differentdepartments or divisions, I hope that I will be capable of doing these types of jobs in the future.

Methodology:


5/86

The report would be based on an exploratory research paper. Here I would be discussing theconsumer credit schemes and credit appraisal procedure of Shahjalal Islami Bank and critically

analyze the appraisal procedure with the standard one. Through out the report, I will use differenttype of research method to find out proper and correct information and also provide a goodreport.

For preparing this internee report I will basically use my experience from different departmentof the Shahjalal Islami Bank Limited. And I will also use some official documents provided bythe officers. For adding more value to this report I will use some books or lecture specialized onthe banking sectors.

Sources of data col lection

Primary sources:

Observation of banking activities. Fruitful conversation with the in-charge of the General Banking department of Shahjalal

Islami Bank Limited, Mitford Branch.


6/86

Experiences gained during performing duties for General Banking department. Discussion with officials of Shahjalal Islami Bank Limited.

Secondary sources:

Annual reports of Shahjalal Islami Bank Limited. Various documents from General Banking department. Loans and Advances Act. Different websites. Internal Records. Brochures of Shahjalal Islami Bank Limited. Different circulars sent by Head Office and Bangladesh Bank. Other published documents credit Scheme.

Limitation


7/86

On the way of my study in Shahjalal Islami Bank Limited, I have faced the following problems,which may be termed as the limitations of the study. The major limitations of this study are given

as follows:

1. There were some restrictions to have access to the information confidential by concernauthority.

2. Sufficient records, publications regarding customer service were not available as perrequirement.

3. Three-month is not sufficient time to gain practical knowledge and prepare a report.4. I have no proper experience to do this kind of report. So, inexperience creates obstacle to

follow the systematic and logical research methodology.

Shahjalal I slami Bank L imited (SJI BL ):

The Shahjalal Islami Bank Limited a Shariah Based Commercial Bank in Bangladesd wasincorporated as a public limited company as on 1stday of April 2001 under the Companies Act.1994. The Bank started its commercial operation on May 10, 2001. The Bank has made asignificant progress within a very short period of its existence and occupied an enviable position


8/86

among its competitors after achieving remarkable success in all areas of business operation. Theauthorized capital of the Bank is Tk. 2,000 million and Paid up capital of the Bank stood at Tk.

1,872 million as on 31 December 2007. The total equity (capital and reserves) of the Bank ason December 31, 2007 stood at Tk. 3,040 million.

Contact Address:Shahjalal Islami Bank Limited173-174, Mitford Road, Dhaka-1100.

Phone: 02-7315533, 7313788; Fax: 02-7315534

E-mail:[email protected]

Web: www.shahjalalbank.com.bd

Shahjalal I slami Bank L imi ted at a glance


9/86

With a view to materialize the dream of the people of Bangladesh for doing their bankingtransactions in line with what is prescribed by Islam, a group of highly successful entrepreneurs

conceived an idea of floating a commercial bank styled as Shahjalal Islami Bank Limitedwhich is named after the name of the renowned saint Hajrat Shahjalal (R) who dedicated his lifefor the cause of peace in this world and hereafter and for the service of humanity. The sponsorsare reputed personalities in the field of trade & commerce, industry and finance.

Shahjalal Islami Bank Limited offers the full range of banking services for personal andcorporate customers, covering all segments of society within the framework of BankingCompany Act and rules and regulations laid down by our central bank. Diversification of

products and services include Corporate Banking, Retail Banking and Consumer Banking rightfrom industry to agriculture, real estate to software and is backed by the latest technology.

The Bank is being managed by a group of highly experienced professionals with diversifiedexperience in finance and banking. The Management of the bank constantly looks aftercustomers satisfaction and believes that a satisfied customer is a great Ambassador. The Bank

has already achieved tremendous progress within only eight years. The bank has already rankedas one of the quality service providers & is known for its reputation. Offers the full range of


10/86

banking services for personal and corporate customers, covering all segments of society withinthe framework of Banking Company Act and rules and regulations laid down by our central

bank.

By now, the Bank established correspondent Banking relationship with 18 Banks covering theirglobal network of 385 branches/units of International repute at different important locations. Italso established accounting relationship with 10 Banks and maintaining 22 NOSTRO Accountsin 8 (eight) major Currencies at different convenient locations.

The Board of Directors of our Bank consists of reputed Industrialists and Businessmen who are

successful in their respective fields headed by Mr. Sajjatuz Jumma, the founder Chairman of theBoard who is an eminent Industrialist & reputed businessman in Bangladesh and currentChairman of Islamic Banks Consultative Forum (IBCF). The Board generally deals with policymatters relating to management of Business and sets goal for the growth & development of theBank as a whole, review of the same from time to time and gives necessary guidance to themanagement.


11/86

The Bank is managed by a Team of professional Executives and Officials having profoundbanking knowledge & expertise in different areas of management and operation of Banks. The

Team is headed by the immediate past Executive President and CEO of Islami Bank BangladeshLtd. (IBBL) for about 7 years. During his Incumbency, IBBL attained a remarkable growth &development. Above all, he had the opportunity to hold the position of Chairman of the Board ofDirectors of Islami General Insurance Company & then he Joined Shahjalal Islami Bank Ltd onFebruary 25, 2004 as the Managing Director and Chief Executive Officer (CEO) to enrichIslamic Banking methodology in the Country.

During the short span of time, Shahjalal Islami Bank so far introduced a good number of

attractive deposit products to broaden the resource base and also Investment products to deploythe deposit resources so mobilized. Some more schemes covering the deposits, Investments &Services will be introduced gradually in near future suiting to the taste and requirement of theclients. The Bank has a strong Shariah Council consisting of prominent Ulama, Fuquah &Economists who meet periodically to confer decisions on different Shariah issues relating toBanking Operation & to address them and to give necessary guidance to the management onShariah Principle. Since inception, Bank has been performing in all the sectors i.e. general


12/86

Banking, Remittance, Import, Export and Investment. All our branches are fully computerizedhaving on line Banking facility for the clients.

All activities of the Bank including its products and services are mainly for different economicgroups of Bangladesh at home & abroad. Bangladeshi expatriates living abroad in differentcountries form a strong economic group who contribute greatly towards the economicdevelopment of the country.

Vision of SJIBL

To be the unique modern Islami Bank in Bangladesh and to make significant contribution to thenational economy and enhance customers trust and wealth, quality investment, employeesvalue and rapid growth in shareholders equity.

Mission of SJI BL

To provide quality services to customers To set high standards of integrity


13/86

To make quality investment To ensure sustainable growth in business

To ensure maximization of shareholders wealth To expand the customers innovative service acquiring state-of the-art technology

blended with Islamic principles. To ensure human resource development to meet the challenges of the time.

Objectives of SJBL

From time immemorial Banks principally did the functions of moneylenders or Mohajans but

the functions and scope of modern banking are now a days, very wide and different. They acceptdeposits and lend money like their ancestors, nevertheless, their role as catalytic agent ofeconomic development encompassing wide range of services is very important. Businesscommerce and industries in modern times cannot go without banks. There are people interestedto abide by the injunctions of religions in all sphere of life including economic activities. Humanbeing is value oriented and social science is not value-neutral.

Shahjalal Islami Bank believes in moral and material development simultaneously.


14/86

Interest or Usury has not been appreciated and accepted by the Tawrat of prophet Moses,the Bible of prophet Jesus and the Quran of Hazrat Muhammad (sm). Efforts are there to do

banking without interest Shahjalal Islami Bank Limited avoids interest in all its transactionsand provides all available modern banking services to its clients and wants to contribute in bothmoral and material development of human being. No sustainable material well-being is possiblewithout spiritual development of mankind. Only material well-being should not be the objectiveof development. Socio-economic justice and brotherhood can be implemented well in a God-fearing society.

The other objectives of Shahjalal Islami Bank include:

To conduct interest-free and welfare oriented banking business based on Islamic Shariah.

To implement and materialize the economic and financial principles of Islam in the bankingarena.

To contribute in sustainable economic growth.


15/86

To help in poverty alleviation and employment generations.

To remain one of the best banks in Bangladesh in terms of profitability and assets quality.

To earn and maintain a Strong CAMEL Rating.

To introduce fully automated systems through integration of information technology.

To maintain adequate liquidity to meet maturing obligations and commitments.

To play a vital role in human development and employment generation.

To develop and retain a quality work force through an effective Human Resources ManagementSystem.

To ensure optimum utilization of all available resources.


16/86

To pursue an effective system of management by ensuring compliance to ethical norms,transparency and accountability at all levels.

Strategies of SJIBL :

The strategies of Shahjalal Islami Bank include:

To raise capital. To strive for customers best satisfaction and earn their confidence. To manage and operate the Bank in the most effective manner. To identify customers needs and monitor their perception towards meeting those

requirements. To review and update policies, procedures and practices to enhance the ability to extend

better service to customers. To train and develop all employees and provide them adequate resources so that

customers needs are reasonably addressed. To promote organizational effectiveness by openly communicating company plans,

policies, practices and procedures to employees in a timely fashion.


17/86


18/86

Balance with Bangladesh Bank & SonaliBank(Including Foreign Currencies)

Balance with other Bank and Financial

Institutions

Inside Bangladesh

Outside Bangladesh

Placement with other & Financial

Institutions Investments in shares &

8,670,266,207 6,442,098,480

9,498,847,673 7,199,684,251

771,921,272

667,820,627

684,337,121

473,022,125

1,439,741,899 1,157,359,246

6,835,381,635

2,000,000,000

3,291,918,927

4,336,581,235

1,400,000,000

828,851,599

5,291,918,927 2,228,851,599


19/86

securities

Government

Others

Investments

General Investment etc.

Bills Purchased & Discounted

68,795,477,946

11,796,983,737

54,295,073,642

7,145,002,263

80,592,461,683 61,440,075,905

1,525,267,751

2,045,242,088

-

1,472,502,085

965,347,663

-

107,228,861,656 78,800,401,984


20/86

Fixed Assets Including Premises

Other Assets

Non Banking Assets

Total AssetsLIABILITIES AND CAPITAL 2011 2010

Taka Taka

Liabilities

Financial (Borrowings) from other Banks,

10,770,000,000

4,299,417,084

5,732,190,000


21/86

Financial Institutions and Agents

Deposits and other Accounts:

Mudaraba Saving Deposits

Mudaraba Term Deposits

Other Mudaraba Deposits

Al-Wadiah Current Deposit & Other Accounts

Bills Payable

54,508,485,456

16,507,850,218

7,464,055,139

570,242,984

3,861,423,717

38,104,072,325

14,826,640,228

5,665,293,559

527,518,236

83,350,050,881 62,964,948,065

Other Liabilities 5,084,677,379 3278,501,504


22/86

Deferred Tax Liabilites

Total Liabilities

Capital/Shareholders Equity

107,340,666

99,312,068,926

76,413,085

72,052,052,654

Paid-up Capital

Statutory Reverse

Retained Earnings

4,452,655,350

2,252,105,068

1,212,032,312

3,425,119,500

1,774,6226,888

1,548,602,942

Total Shareholders Equity 7,916,792,730 6,748,349,330

107,228,861,656 78,800,401,984


23/86

Total Liabilities & Shareholders Equity

Departments of SJIBL

All branches of Shahjalal Islami Bank Limited are divided into three departments:

General Banking Department. Foreign Exchange Department. Investment Department.

General Banking Department:


24/86

General banking department is one of the most important departments of Shahjalal Islami BankLimited. Basically bank provides the main services to the customer through this department. Ingeneral this section of the Shahjalal Islami Bank Limited is divided into five sections.

Accounts opening & closing section Cash section Clearing section Accounts section

Foreign Exchange Department:

Banks play a very important role in effecting foreign exchange transaction of a country. Mainlytransactions with overseas countries are in respect of imports; exports and foreign remittancecome under the purview of foreign exchange department. Banks are the vital sectors by whichsuch transactions are effected/settled. Central Bank records all sorts of foreign exchangetransactions. The other banks dealing with foreign exchange are to report to Bangladesh Bankregularly (viz. daily, monthly, quarterly, yearly etc.). The foreign exchange department consistsof three sections. They are:


25/86

Import section Export section Foreign remittance section

Investment Department:

Banking business consists of borrowing and lending, Bank act as an intermediary betweensurplus and deficit economic units. Thus a banker is a dealer in money and credit. Banks acceptdeposit from large number of customers and then lend a major portion of the accumulated moneyto those who wish to borrow. In this process banks secure reasonable return to the savers, make

funds available to the borrowers at a cost and earn a profit after covering the cost of funds.Banks, besides their role of intermediation between savers and borrowers and providing aneffective payment mechanism, have been allowed to diversify into many new areas of betterpaying business activities.

Credit Rating Report:

Long Term Short Term


26/86

Entity Rating A+ ST- 2Date of Rating April 03, 2008

Credit Rating Information and Services Limited (CRISL) upgrades the rating of Shahjalal IslamiBank Limited(SJIBL) to A+ (pronounced as single A plus) from A (pronounced as single A)in the Long Term and reaffirms short term rating to ST-2.

Branches of SJI BL :

The Bank has 74 branches all over the country with a worldwide network of correspondents. The

Bank is going to open more branches in the current fiscal year to expand the network

H ierarchy of SJIBL

Social Welfare Activities:

With a view to providing financial assistance to the poor and needy people of the society andalso for the welfare of the community, to this perspective, bank has established Shahjalal Islami


27/86

bank Foundation with the objective to provide health care, relief and rehabilitation, education,humanitarian of winter clothes during the winter etc.

Shahjalal Islami Bank Foundation has a planning to establish the following projects andprograms:

ShahjalalIslamiBankInternationalSchool and College ShahjalalIslamiBankHospital

The foundation have also drawn up programs to look after the education, health and medical

requirements of all the people of rural areas where the bank has launched Rural InvestmentPrograms with vision 2020.

The foundation already introduced a program to reward poor student who passes SSC and HSCexam. Students who are not financially sound, the foundation gives financial assistance to them.The bank has started it from 2006 under these project 111 poor and meritorious students awardedby monthly scholarship and lump sum money at yearly basis. This will motivate students to dobetter in future. The bank appreciates the good things in the society.


28/86

I slamic Banking Concepts:

Islami Bank is a financial institution whose status, rules and procedures expressly state itscommitment to the principle of Islamic Shariah and to the banning of the receipt and payment ofinterest on any of its operation. For millions of Muslims, banks were institution to be avoided.Islam is a religion, which keeps Believers from the tellers window. Their Islamic beliefs preventthem from dealings that involve usury or interest (Riba). Yet Muslim needs banking services asmuch as anyone and for many purposes: to finance new business ventures, to buy a house, tofacilitate capital Investment to undertake trading activities and to offer safe place for saving.Muslims are not averse to legitimate profit as Islam encourages people to use money in Islamic

ally legitimate ventures not just to keep their funds idle.

However in this fast moving world more than 1400 years after the Prophet (S.A.W) can Muslimsfind room for the principles of their religion? The answer comes with the fact that a globalnetwork of Islamic banks investment house and other financial institution have started to takeshape based on the principals of Islamic finance laid down in the Quran and the Prophets

traditions some 14 centuries ago. Islamic banking based on the Quranic prohibition of changinginterest has moved from a theoretical concept to embrace more than 100 banks operating in 40


29/86

countries with multibillion-dollar deposits worldwide. Islamic banking is widely regarded as thefastest growing sector in the Middle Eastern financial services market. Exploding onto thefinancial scene barely thirty years ago an estimated $US100 billion worth of funds are nowmanaged according to Shariah.

The best-known feature of Islamic Banking is the prohibition on interest. The Holy Quranforbids the charging of Riba on money lent. It is important to understand certain principles ofIslam that underpin Islamic finance. Muslim scholars accepted the word Riba to mean any

fixed or guaranteed interest payment on cash advances or on deposits.

The rules regarding Islamic finance are quite simple and can be summed up as follows:

a) The predetermined payment over and above the actual amount of principal is prohibited.

b) The lender must share in the profits or losses arising out of the enterprise for which themoney was lent.

c) Making money from is not Islamically acceptable


30/86

d) Ggharar (Uncertainty, Risk or Speculation) is also prohibited.

e) Investment should only support practices or products that are not forbidden.

Objectives of I slamic Banking

The objective of Islamic Banking is not only to earn profit but also to do good and welfare to thepeople. Islam upholds the concept that money, income and property belong to ALLAH and thiswealth is to be used for the good of the society. The main objectives of Islamic Banking are asfollows:

1. To conduct interest free banking.2. To establish participatory Banking instead of Banking on debtor-creditor relationship.3. To invest through different modes permitted under Islamic Shariah.4. To accept deposits on profit-loss sharing basis.5. To establish welfare oriented Banking System.6. To extend operation to the poor, helpless and low income group for their economic

enlistment.


31/86

7. To contribute in achieving the ultimate goal of Islamic economic system.8. To facilitate the Islamic banking system in the country.9. To create new entrepreneurs and to arrange required finance them.

Evolution of I slamic Banking

Islamic Banking comes into reality through a long theoretical exercise of several renownedIslamic scholars and economists. The first attempt to establish an Islamic financial institutiontook place in Pakistan in 1950. In the modern world, the pioneering role in establishing the firstIslamic Bank in 1963 named Mit- Ghamar Saving Bankin Egypt at rural area of Nile Delta.

As on today, there are many Islamic financial institutions operating through out the worldcovering both Muslim and non-Muslim countries of various socio-economic environment.

The first Islamic bank in Malaysia was established in 1983. In 1993, commercial banks,merchant banks and finance companies were allowed to offer Islamic banking products andservices under the Islamic Banking Scheme (IBS). These institutions however, are required toseparate the funds and activities of Islamic banking transactions from that of the conventionalbanking business to ensure that there would not be any co-mingling of funds.


32/86

In Malaysia, the National Syariah Advisory Council additionally set up at Bank Negara Malaysia(BNM) advises BNM on the Shariah aspects of the operations of these institutions, as well as ontheir products and services.

Legitimate Business Contracts for I slamic Banks

The modes of mobilization in Islamic banks have derived from the overall permissible contractsin Islam. In what follows we fast describe the concept of Aqd or contract form businessperspective and then discuss the legitimate forms contracts that can be used in Islamic banks forboth deposit collection and their profitable employment.

A business contract can be defined as the exchange of a thing of value by another thing of valuewith mutual consent. There are four element of an Aqd or contract:

1. Contrat(Aqd).2. Subject Matter (Mabee).3. Price (Thaman).4. Prossession of delivery (Qabdh).


33/86

Common practices of I slamic banks in mobili zation of f unds

The common practices of Islamic banks in the sources of funds may be described as follows:

Curr ent Accounts

All Islamic banks operate current account on behalf of their client individuals and business firms.These accounts are operated for the safe custody of deposits and for the convenience ofcustomers. There is little different between conventional banks as far the operation of currentaccounts is concerned. There are two dominant views about current account. One is to treat

demand deposit as amnah (trust). A trust deposit is defined by the Jordan Islamic Banks as cashdeposits received by the bank where the bank is authorized to use the deposits at its own risk andresponsibility in respect to profit or loss and which are not subject to any conditions forwithdrawals or depositing.

SavingAccount


34/86


35/86

Participatory Account. However they can be distinguished from traditional fixed term deposits inthe following manner:

1. Fixed term deposits in the conventional system operate on the basis of interest whileinvestment accounts in Islamic banks operate on the basis of profit sharing Instead ofpromising depositors a predetermined fixed rate of return on their investment the banktells them only the ratio in which it will share the profits with them.

2. While fixed term deposit are usually distinguished from each other on the basis of theirmaturities investment deposits can be distinguished on the basis of maturity as well as onthe basis of purposes as it is possible to give special instructions to the bank to invest aparticular deposit in a specified project or trade.

The main distinguishing characteristics of investment deposits can be described as follows:

1. Deposit holders do not receive any interest. Instead they participate in the share of theprofits or losses.

2. Usually these accounts are opened for a specific period e.g. three months, six month, oneyear or more.


36/86

3. The return on investment is determined according to actual profit s from investmentoperations of the bank and shared in an agreed proportion by depositors according to theamount of their deposits and the period for which the bank holds them.

4. Generally speaking depositors do not have the right to withdraw from these accounts as iscustomary in time deposits in conventional banks.

I slamic Financial Vehicles

Islamic banks around the world have devised many creative financial products based on the risksharing and profit sharing principles of Islamic banking. For day to day banking activities anumber of financial instruments have been developed that satisfy the Islamic doctrine andprovide acceptable financial returns for investors.

Al-M udaraba (Profi t sharing)

This implies a contract between two parties whereby one party the rabb al mal (beneficiary;owner or the sleeping partner), entrusts money to the other party called the mudarib (managingtrustee or the labor partner). Important features of Mudaraba are as follows:


37/86

1. The division of profits between the two parties must necessarily be on a proportionalbasis and cannot be a lump sum or guaranteed return.

2. The investor is not liable for losses beyond the capital he has contributed.3. The mudarib does not share in the losses except for the loss of his time and efforts.

Murabaha

This is the sale of a commodity at a price, which includes a stated profit, which includes a statedprofit known to both the vendor and the purchaser. This can be called a cost plus profit contract.The buyer in deferred payments usually pays the price back. Under Murabaha the Islamic bankpurchases in its own name, goods that an importer or a buyer wants and then sells them to him atan agreed mark-up. This technique is usually used for financing trade, but because the bank takestitle to the goods, and is therefore engaged in buying and selling its profit derives from a realservice that entails a certain risk and is thus seen as legitimate.

Musharaka (Prof it and loss sharing)


38/86

This is a partnership normally of limited duration formed to carry out a specific project. It istherefore similar to a western- style joint venture, and is regarded by some as the purest from ofIslamic financial instrument, since it conforms to the underlying partnership principles of sharing

in and benefiting from risk. In this case the bank enters into a partnership with a client in whomboth share the equity capital and perhaps even the management of a project or deal and bothshare in the profits or losses according to their equity shareholding.

I jarah (L ease financing)

Another popular instrument is leasing which is designed for financing an asset or equipment. It isa manfaah (benefit) or the right to use the asset or equipment. The lessor leases out an asset orequipment to the client at an agreed rental fee for a pre-determined period pursuant to thecontract.

I jara Wa I ktina (H ire Purchase)


39/86

Equivalent to the leasing and installment loan, hire- purchase, practices that put millions ofdrivers on the road each year. These techniques as applied by Islamic banks include therequirement that the leased items be used productively and permitted by Islamic law.

Muqarada

This technique allows a bank to flat what are effectively Islamic bonds to finance a specificproject. Investors who buy muqaradah bonds take a share of the profits of the project beingfinanced, but also share the risk of unexpectedly low profits or even losses.

Bai-Salam

A buyer pays in advance for a specified quality of a commodity, deliverable on a specific date atan agreed price. This financing technique, similar to a futures or forward- purchase contract isparticularly applicable to seasonal purchase but it can also be used to buy other goods in caseswhere the seller needs working capital before he can deliver.

I stisna (Purchase order)


40/86

This is a sale and purchase agreement whereby the seller undertakes to manufacture or constructaccording to the specification given in the agreement. It is similar to bai salam the maindistinction being the nature of the asset and method of payment. Istisna generally covers those

things which are customarily made to order and advance payment of money is not necessary asrequired in bai salam. The method of payment in istisna is flexible.

Bai-Muajjal

The terms Bai and Muajjal have been derived from Arabic words Bai and Ajl. The word

Bai means purchase and sale. The word Ajl means fixed time or a fixed period. Bai-Muajjalmeans sale for which payment is made at a future fixed date or within a fixed period. In short, itis a sale on credit. Bai-Muajjal may be defined as a contract between a buyer and seller underwhich the seller sells specific goods to the buyerat an agreed fixed price payable at a certainfixed future date in lump sum or within a fixed period by fixed installments.

H ire Purchase under Shir katul M elk


41/86

Shirkat means partnership. Shirkatul Melk means share in ownership when two or more personssupply equity to purchase an asset own the same jointly and share the benefit as per agreementand bear the loss in proportion to their equity, the contract is called Shirkatul Melk contract.

Quard-Al-Hasan

It is a virtuous loan. Through this mode, Bank provides loan to its customer for a certain period,which bears no profit/loss/compensation.

Di rect Investment

Islamic Bank without the help/assistance of any client may directly invest its fund/capital inshare, securities, business and industry. Profit and loss in this business is exclusively, the internalmatter of the Bank.

The concepts of equity and morality are at the root of Islamic banking .In Islam moral andequitable values from an integral part of the rules of law governing contractual and financialrelations to such an extent that the relationship, which exists between equity law and relation, is


42/86

an organic rather than supplementary relationship. The importance of Islamic banking hasincreased dramatically over the past 10 years. The main differences between Western andIslamic style banking is the concentration on people and their businesses rather than on accounts

it is a much more grass roots banking according to one expert.

Activities of the SJIBL M itford Branch

I ntroduction of SJIBL , M itford Branch:

This branch was established 9thSeptember,2001. It is situated at 173-174 Mitford road, Dhaka-1100. It has been providing Islamic banking services for the customers of Mitford area.

Objectives:

To provide Islamic banking service to the people within the commanding area. To expand business based on Islamic Shariah. To keep position in the competitive market. To contribute in profitability of SJIBL


43/86


44/86

InLand Doc. Bill Purchase (IDBP)

INV 748

Lakhopoti Dep. Scheme (LDS) 38

Multiple Benefits M. S. Scheme (MBMSS) 43

Monthly Deposit Scheme (MDS) 4,345

Monthly Income Scheme (MIS) 79

Millionaire Scheme12 Yrs (MS12) 167



Millionaire Scheme25 Yrs MS25 148

Marriage Deposit Scheme (MSD)

Mohor Deposit Scheme (MSD)

M. Term Deposit Scheme (MTDR) 806

Non Resident FC Depo.Dollar (NRFCD) 13

TOTAL 10,402


45/86

Statement of Aff airs on SJIBL M itford Branch:

Sundry Deposits

Account No. Account Name Balance

9020824001 Un Identified Entries 740,855.00

9020824002 S/D- Sundry Creditors 1,499,964.54

9020824006 S/D- Tax on Profit on Deposit 2,119,387,.82

9020824009 S/D- Tax on Bill 7,450.00

9020824013 S/D- Excise Duty on Deposit 145,147.00

9020824014 S/D- VAT for LC Commission 157,775.009020824020 S/D- F. Correspondent Charges 4,000.00

9020824021 S/D- Margin on LC 19,358,000.00

9020824022 S/D- Margin on LG 1,802,597.00

9020824028 S/D- Risk Fund for HHD Scheme 1,000.00

9020824029 S/D- Risk Fund for Ijara 9,800.00


46/86

9020824030 S/D- Leased/Ijara Deposit 34,900.00

9020824041 S/D- VAT 4,363.00

9020824042

9020824049

9020824093

9020824095

9020824116

S/D- VAT for Banking Service

Sundry Deposit- Others

S/D- Tax at Source-Others

Risk fund Under SBIS

Risk fund Under HPSM

8,5543.50

340,105.00

1,300.00

26,750.00

24,750.00


47/86

Total 26,286,698.86

A l ist of Employees of the SJIBL M itf ord Branch:

SL. Designation Number of Employer

01 Executive Vice President & Manager 1

02 Vice President & Deputy Manager 1

03 Assistant Vice President 1

04 First Assistant Vice President 2

05 Junior Assistant Vice President 3

06 Senior Executive Officer 2

07 Executive Officer 1

08 Management Trainee Office 1

09 Junior Executive Officer 2

10 Assistant Executive Officer 3

11 Senior Officer 2


48/86

12 Officer 5

13 Trainee Senior Officer 1

14 Trainee Officer 4

Total 29

Products of Shajalal I slami Bank L imi ted, M itford Branch:

Deposits:

Shahjalal Islami Bank Limited accepts deposits on the basis of Mudaraba in the following types

of accounts, and pays profit, like that of dividend in these accounts, except AL-Wadiah CurrentAccount.

The relationship between banker and customer is not debtor-creditor relationship of conventionalbanks. The depositor is a partner in business with Shajalal Islami Bank Limited. Customersdeposit their fund in the following types of Accounts:


49/86

1. Mudaraba Short Notice Deposit Account

2. Mudaraba Savings Account

3. Mudaraba Term Deposit Account

4. Other Scheme Deposit Accounts

Average 70% of profit earned by the bank is distributed proportionately among depositorsannually.

I nvestments Modes:

To provide interest-free Banking Shahjalal Islami Bank has adopted the following modes ofinvestment:

1. Musharaka (equity participation on the basis of sharing profit and loss)


50/86

2. Mudaraba (sharing of profit and loss in business where one of the partners providesexpertise and management and other partner provides capital remaining inactive)

3. Murabaha (buying and selling of commodities goods etc. with profit)

4. Bai-Muajjal (credit sale with profit)

5. Ijara (leasing for rent)

6. Hire purchase or Shirkatul Melk

7. Bi-Salam (purchasing of agricultural products while in production and providing advanceoney to the producers)

8. Istisna (purchasing of industrial products while in production and providing advance money tothe producers).

9. Quard.


51/86

Computer Services:

Shahjalal Islami Bank is computerized and provides the following services some of these

services will be introduced soon. Shahjalal Islami Bank Limited introduced a few schemes,which are very popular:

Online services Automated Accounting Integrated System Signature Verification Any Branch Banking ATM Services POS Services SMS Push Pull Services 9. Other Delivery Channel Services (to be implemented)

Deposit Schemes:

Millionaire Scheme


52/86

Double the Money Scheme Monthly Income Scheme Monthly Deposit Scheme Hajj Scheme Mudaraba Bibaho Scheme (New Product) Mudaraba Cash Waqf Deposit Scheme (New Product) Special Term Deposit Scheme (New Product) Mudaraba Mohor Deposit Scheme (New Product) Mudaraba Shikhkha Deposit Scheme (New Product) Mudaraba Housing Deposit Scheme Mudaraba Lakhopoti Deposit Scheme Mudaraba Small Business Deposit Scheme

I nvestment Schemes:

Doctors Investment Scheme Education Investment Scheme


53/86

Executives Investment Scheme Marriage Investment Scheme Overseas Investment Scheme Household Durable Scheme Small Business Investment Scheme Housing Investment Scheme Small Enterpreneurs Investment program Medium Enterpreneurs Investment program Rural Investment Program (RIP) Car Investment Scheme CNG Conversion Investment Scheme

Services:

SJIBL VISA Card :


54/86

Card is considered as a new dimension of product resulting from technological development inthe banking arena. In line with our affiliation with VISA International for VISA ATMs and POS,the following two products are launched broadening service products of the Bank to the clients:

1. VISA Electron (SJIBL VISA Debit Cardlocal)

2. VISA Prepaid (SJIBL VISA Prepaid Card)

SJIBL VISA Debit Card: To a customer, My card, my money concept is used for DebitCard. Any accountholder of SJIBL can apply for a SJIBL VISA Debit Cardagainst his/her Al-Wadiah Current Deposit (AWCD), Mudaraba Savings Deposit (MSD) or Mudaraba Short Notice

Deposit (MSND) Account. He/she is fully authorized to enjoy the benefits of cash withdrawalfrom ATMs, liberty of shopping, dining, paying utility bills and having access accountinformation through SMS, etc. round the clock.

SJIBL VISA Prepaid Card (Local): SJIBL VISA Prepaid Local Cards are open to thecustomers even having no account with Shahjalal Islami Bank Limited. Cardholders can have the


55/86

card against prepayment and have access from anywhere in Bangladesh. SJIBL VISA PrepaidLocal Cards are accepted locally at all VISA labeled merchant outlets, ATMs, etc.

SJIBL VISA Prepaid Card (International):SJIBL VISA Prepaid International Cards are alsoopen to the customers even having no account with Shahjalal Islami Bank Limited. Cardholderscan have the card endorsing US Dollar paying against Travel Quota, Exporters Retention Quotaor marking Lien of his/her FC Account. SJIBL VISA Prepaid International Cards are acceptedworld wide at all the VISA labeled merchant outlets, ATMs, etc.

SJIBL VISA Prepaid Card (Dual):The Dual Card is a hassle free product, no need to carrytwo separate plastic cards for local and international card. Now, with one plastic card the

Cardholders can enjoy all the benefits and make transactions locally & globally from theirPrepaid card account at all the VISA labeled merchant outlets, ATMs, etc.

SJIBL VISA Souvenir Card (Gift CardLocal):SJIBL Souvenir Card is a very attractive andstylish product. Like a Gift Card, SJIBL Souvenir Card can be used by anyone wishes to. Theintending customer may have the card instantly or may customize the card as required. TheSJIBL Souvenir Cards are accepted locally at all the VISA labeled merchant outlets, ATMs, etc.


56/86


57/86

Mobile Banking is a secured & flexible solution that delivers the banking services to itscustomers through a range of mobile devices using SMS / Push Pull technology. It providesbanking services to the registered clients access to account information and real-time transaction

capabilities from the mobile phones at a true Anywhere, Anytime, Anyhow convenience.

As a leading private sector bank in Bangladesh the Shahjalal Islami Bank Limited presents theMobile banking i.e. SMS / Push Pull service.

Services:

1. Balance Inquiry2. Cheque Book Request3. Cheque Leaf Status4. FC Rate Information5. Cheque Stop Payment Instruction6. Statement Request by Courier/Post7. Statement request by E-mail8. Last Three Transaction Statement


58/86

9. Help inquiry10.PIN Change GP Bill Collection:

Grameen Phone subscribers availing the service to pay their bills, advances, security deposit andother related charges through all branches of Shahjalal Islami Bank Limited.

Remittance:

Kushiara Western Union Swift Service

Kushiara:

Kushiara Money Transfers a definition of safety and reliability and a popular Money TransferCompany in United Kingdom (U.K.). Kushiara offers Instant Cash next day collection from


59/86

Bank counter at most cities in Bangladesh and Quick Credit to beneficiarys account in all

over the Bangladesh.

Western Union:

Western Union a fast, reliable and convenient way to send a money transfer

Western Union Financial Services Inc. U.S.A. is the number one and reliable money transfercompany in the world. This modern Electronic Technology based money transfer company hasearned world wide reputation in transferring money from one country to another country withinthe shortest possible time.

Shahjalal Islami Bank Limited has set up a Representation Agreement with Western UnionFinancial Services Inc. U.S.A. Millions of people have confidence on Western Union for sendingmoney to their friends and family. Through Western Union Money Transfer Service,Bangladeshi Wage Earners can send money quickly from over 280,000 Western Union AgentLocations in over 200 countries and territories world wide- the worlds largest network of itskind, only by visiting any branches of Shahjalal Islami Bank Limited in Bangladesh.


60/86


61/86

Shahjalal Islami Bank Limited has 26 such branches all over Bangladesh and WesternUnion has over 280,000 agent locations across 200 countries and territories.

3 easy steps to receive your money

Your loved ones deposit the money at any Western Union Agent location and get areceipt with MTCN.

He/she then informs you about the amount sent (sender name, amount, sending country,receiver name and MTCN).

You go to the nearest Shahjalal Islami Bank Branch with a valid identity card. You fill asimple form and receive the money.

SWIFT Service

Shahjalal Islami Bank Limited is a member of the society for Worldwide Inter Bank FinancialTelecommunication (in abbreviation S.W.I.F.T). SWIFT is the industry-owned co-operativesupplying secure, standardized messaging services and interface software to nearly 8,100financial institutions in 207 countries and territories. SWIFT members include banks, broker-


62/86

dealers and investment managers. The broader SWIFT community also encompasses corporateas well as market infrastructures in payments, securities, treasury and trade.

General Banki ng:

Financial institution/ intermediary that mediates or stands between ultimate borrowers andultimate lenders is knows as banking financial institution. Banks perform this function in twoways- taking deposits from various areas in different forms and lending that accumulated amountof money to the potential investors in other different forms.

General Banking is the starting point of all the banking operating. General Banking department

aids in taking deposits and simultaneously provides some ancillaries services. It provides thosecustomers who come frequently and those customers who come one time in banking for enjoyingancillary services. In some general banking activities, there is no relation between banker andcustomers who will take only one service form Bank. On the other hand, there are somecustomers with who bank are doing its business frequently. It is the department, which providesday-to-day services to the customers. Every day it receives deposits from the customers andmeets their demand for cash by honoring cheques. It opens new accounts, demit funds, issue


63/86

bank drafts and pay orders etc. since bank in confined to provide the service everyday generalbanking is also known as retail banking.

General Banking Section of a branch is designed-

To serve the general people for saving money To ensure smooth transaction for commercial people and To ensure security of preaches wealth of the clients and also for all other important

activities.

The general bank ing involves the foll owing activi ties-

Account opening

One cannot be a customer of the bank without opening an account. Account opening is anagreement between the customer and the bank. The form of account opening acts as a contractevidence. So account opening is one of the most important activities of a bank. The rules andregulations for opening of an account can vary according to types of accounts.


64/86

Types of Accounts

One cannot imagine the banking business without deposits. So the most important activity of the

commercial bank is to receive the deposits from the customers Shahjalal Islami Bnaks depositscan be divided as follows

i. AL-Wadiah Current Deposit

For private, individuals, merchants, traders, importers and exporters mill and factory overset thistype of account is advantageous. The minimum deposit of Tk.5000 for opening of a currentaccount is required with reference.

The benefits of current account are as follows-

Statement of account on monthly basis/any time. Free checkbook Statement by fax on demand Any number of transactions a day.


65/86

ii. Mudaraba Savings Deposit

There is restriction on withdrawals. Frequent withdrawal is prohibited. The saving account is

primarily for small-scale savers. The main objective of this A/C is promotion of saving money.

Highlights of the Account

Frequent withdrawal is not encouraged. Minimum amount of Tk.2000.00 is required as initial deposit. Normally withdrawal is not allowed more than one time in a week

iii. Mudaraba Short Notice Deposit (MSTD)

The Bank offers more profits in the short-term deposit than savings account. The depositors mustkeep their money for at least six months to get the profit. Generally it is suitable for various bigcompanies, organizations and govt. departments


66/86

iv) Mudaraba Term Deposit Receipt (MTDR)

When an account of cash is kept in the bank for a fixed period of time these deposits cannot

withdraw money from the bank before the maternity of a fixed period. When the depositors openthese types of account the banker issue a receipt acknowledging the receipt of money, on depositaccount. For three and six and twelve months the rate of interest is 12.5%, 12.75%, and 13%respectively.

v) Monthly income scheme:

It is a monthly income scheme that really makes good sense. A sure investment for a steady

return.

H ighli ghts of the Scheme:

Minimum deposit TK, 50,000.00 and profit will be TK, 450.00. Higher monthly income for higher deposit. The scheme is for a 5-year period.


67/86

Objectives of the scheme

The depositors have to fill up forms for opening this account.

The receipt, which is provided by the bank to the customers, is not transferable. The Bank will not provide profit to means if this deposit is withdrawer within one year of

opening the account.

vi) Mudaraba multiple Deposit scheme

Investment leads a country to industrialization. But saving is the main source of investment.Without saving a country cannot build up capital. For this reason saving is called the skeleton of

development. This is a nine years deposit, which increases the deposit more than triple. ShahjalalIslami Bank offers mudaraba multiple savings by creating more conscious and encouragingpeople to save.

vii) Hajj Deposit Scheme:


68/86

Hajj deposit at monthly installment from 1(one) year to 25 (twenty five) years are accepted underthe above scheme to enable the account holder to perform hajj out of the accumulated savingwith profit.

vii) Money Grower

Money gradually grows in this account. It is a monthly savings scheme. It secures the future withease. A small saving today will provide comfort tomorrow. There are several types of MoneyGrower Scheme which are given bellow: Monthly

Deposit Scheme (MDS)

Savings Period and Monthly Installment Rate the savings period is for 5, 8, or 10 years. Monthlyinstallment rate is:

Millionaire Scheme12 Yrs (MS12)

Savings Period and Monthly Installment Rate the savings period is for 12, 15, 20, or 25 years.Monthly installment rate is:


69/86

Account Closing:

First a customer has to submit an application with his/her signature mentioning that he/she wants

to close his/her A/C. Then the signature will be verified by the officer. Customer has to certifyby different department (Advance, Foreign Exchange department) of Bank that he/she has noliabilities to the Bank. After that the Customers A/C is debited and then Bank issues a Pay Order

in the name of A/C holder.

Account Transfer:

Customer has to submit an application mentioning that he/she wants to transfer his/her A/C to his

desired Branch and the officer will verify the signature, Customer has to be certified by differentdepartment of Bank that he/she has no liabilities to the bank. Then total particulars of A/C holderwill prepare and sent to the Customers desired branch. Liability of Recognizer is secondary andaccount holder is primary.

General Practice at Regarding Accounts, in Account Opening Register:


70/86

After fulfilling all the requirements for opening account necessary entries are given in theaccount opening register. There are several registers for several accounts as MSD, ACD, SND,MDS and MTDR etc. Date of opening name of the account holder, nature of business, address,

initial deposit, and introduction, and various informations are recorded in that register. Newaccounts number is given from the list of new numbers provided by the computer department.

Cheque Book:

Cheque book is issued to the new customer after opening account. Two separate cheque booksare given for current and saving accounts. AWCA accounts Cheque book consists 25 and 50leafs, while MCA account Cheque book has 10 leafs. There is a cheque book issue register in

this regard; where Cheque book number, leaf number, date of issue etc. information are kept. Allthe necessary numbers are the sent to the computer department to give entry in the program.

Pay Order (PO):

Pay Order an instrument, which is used to remit money with in a city thorough banking channelthe instruments are generally safe as most of them are crossed.


71/86

Cleari ng:

As far safety is concerned customers get crossed check for the transaction. As we know crossed

check cannot be encased from the counter rather it has though been collected through bankingchannel i.e. clearing. A client of SJIBI received a check of another bank, which is located withinthe clearing range deposit, the checks in account at SJIBL New SJIBL will not the money untilthe check is honored.

Transfer:

Transfer delivery is a Cheque collection procedure among internal branches within the Clearing

House. When a Cheque is deposited to another Branch Office, then collecting branch on that datesend the Cheque to their Local Office, finally send that Cheque to the respective branch andtakes necessary action for honoring Cheque.

If the Cheque is dishonored then authorized branch send the Cheque to the local office and LocalOffice send that Cheque to the collecting branch on the collecting date.


72/86

Here Clearing house function is not required because transactions occur among the same bankbetween several branches.

Outward Bil ls for Collection (OBC):

Customers deposit cheque, draft etc for collection attaching with their deposit receipt. Instrumentwithin the range of clearing are collected through local clearing house but the other which areoutside the clearing range are collected through OBC mechanism. A customer of SJIBL principalbranch local office Dhaka is depositing a check of Sonali Bank Coxs-Bazar.

New as a collecting bank SJIBL principal branch will perform the following tasks:

Received seal on deposit slip. SJIBL local office principal branch crossing indicating them as collecting bank. Endorsement give payees A/C will be credited on realization. Entry on register from where a controlling number is given.


73/86

Collecting bank can collect it either by its branches of by the drawers bank they will forward thebill then to that articulate branch. OBC number will be given on the forwarding letter.

I nward Bills for Collection (IBC):

In this case bank will work as an agent of the collection bank branch receives a forwarding letterand the bill. Next steps are:

Entry in the IBC register, IBC number given. Endorsement given- our branch endorsement confirmed. The instrument is sent to clearing for collection. Miscellaneous creditor A/C.

I nternship positi on & Duti es

Throughout my internee period I have worked with more or less all the CSO (Customer ServiceOfficer) and try to help at my level best to help them in their work. So basically I know more


74/86

about general banking. The tasks that I have done throughout my internee period are givenbelow:

Account Opening Section:

I have started my internee with responsibility of Customer Service Officer. I was assigned towork with account opening department. In a whole day I have to open more than 10 accounts.Customer account opening is a lengthy process. If the customers have the documents that she/ heis needed to open that particular; he or she must fill an account correctly. If there is any problemfound in the fulfillment of the form is wrongly filled, the form will be return on next day. So theform must be filled correctly. If all the things are right, the CSM give the permission to open the

account. They have to fill up a KYC (Know Your Customer) from to have more idea about thecustomer. The main purpose of this from is to give all necessary information regarding theaccount, like the charges, benefits and if any specific inquiry the customer ideas.

I also open FDR account, DPS, different type of account like-

Mudaraba Short Notice Deposit


75/86

Account Mudaraba Savings Account Mudaraba Term Deposit Account Other Scheme Deposit Accounts

The process of opening an account is given in the flow chart below:

Clearing Section:

I have worked total more than 7 days in this section. The main responsibilities was receivedseveral cheques from their clients. I also attached in the front side of the cheque clearing seal andat the back side endorsement seal. My responsibility to ensure account number, account holder

name, which banks cheque etc. After confirming this I sent this cheque to my boss. He wasresponsible for completing the other tasks.

Provide information of all types customers query:


76/86

I also provided information to all type of customer queries. Each day many people come to thebranch with various types of problems. I tried my best to give them the proper information andtry to solve their problem. Some of the information that I provided are given bellow:

Account opening requirements, DPS related information, FDR information, some type of loanfacilities different type of debit card related queries and their benefits.

Give instruction for address change, signature change, and mandate instruction, nomineechange, and account closing information, DPS closing information, FDR closing formalities, payorder, document issue and all type of queries.

I also gave information of western union money transfer. I used to give information, like fromwhich country the money can be sent and in which banks money can be received. I usually tellabout the formalities or requirements to be maintained to receive the money.

Learni ng Points:

I h l hi b h b ki i ll I l i b ki N i


77/86

I have learnt so many things about the banking sector especially Islamic banking system. Now, itis very clear to me how Shahjalal Islami Bank Limited operates their operation in this country. Iexplain this as follows:

How to open their several account in their bank? What are the requirements for opening their account? How to provide information to their client? How clients can gather their account statement and know to balance? What are the procedures to close an account? How cash sections provide the service to their clients?

How clearing house operates their operation? I was not well informed about PO but after the completion of internship program the

mechanism of this has been clear to me. How to prepare different companys salary sheet by using their software? Finally, I learned how to prepare an internship report?

SWOT Analysis, Findings, Recommendation and Conclusion

SWOT A l i f SJIBL M itf d B h


78/86

SWOT Analysis of SJIBL , M itford Br anch:

Strength:

Fully computerized accounts maintenance. Money counting machine for making cash transaction easy and prompt. In SJIBL Bank SWIFT is being used for foreign trade related operations like letter of

credit, fund transfer, guarantee, etc with optimum security. Well decorated and air conditioned facilities. SJIBL has a well-diversified pool of human resources, which is composed of people with

high academic background. Also, there is a positive demographic characteristic- most

employees are comparatively young in age yet mature in experience. SJIBL provide ATM debit card and nonstop banking facilities. Structural set up and business location is strategic. Wide product line Bank is very alert to preserve the asset quality of the bank. Continuous training both at home and abroad is going on develop the skill of human

resources.

Shahjalal Islami Banks assets position is q ite satisfactor


79/86

Shahjalal Islami Banks assets position is quite satisfactoryWeakness:

Limited Market Share. Absence of an upgraded website. Lack of setting arrangement for the waiting customers. Sometimes the Customer Service Officers were so busy that it creates delay to the

customer service. And at the end of the day the closing is also delayed.

Opportunity:

Here the opportunity means an area of buyer need or potential interest in which a bank canperform profitably. If the management can use the continuous support properly it can enjoy hugeopportunity for improving its growth. Other opportunities are-

Expansion of new area of investment

Credit card business


80/86

Credit card business Regulatory environment favoring private sector bank. Technical support to small Scale industries (SSI) in order to enable them to run their

enterprises successfully. SME and Agro based business. Besides, the Bank is to provide full range of commercial banking services.

Threat:

The environmental threat is a challenge posed by an unfavorable trend or development that

would lead to deterioration in sales or profit. Banks other threats are as follows-

Number of potential competitors in home and abroad is increasing day by day. Restless political condition in Bangladesh, such as Strike threats the prosperity of Bank. Market pressure for lowing Profit rate. The bank must be bound to follow the rules of central Bank.

Findings


81/86

Findings

While working on Shahjalal Islami Bank Limited, Mitford Branch, I have attained a newer kindof experience. After collecting and analyzing data I have some findings. These findings arecompletely my personal view to research work.

This bank started on-line service newly. As a resulted customers are not getting the fullservice by the on-line service. Sometimes they have to face problem with on-lineaccount.

. General Banking Division is an efficient department. They are very much prompt togive decision to their valued client. They never keep any things pending.

The employees of the bank cannot provide effective and efficient services to thecustomers because of lack of UPS facility & Load-shedding.

The number of human resources in the Computer section is really insufficient to giveservices to huge number of customers.


82/86

Officials whom are involved in Customer Services should be more trained properly


83/86

Officials whom are involved in Customer Services should be more trained properly.Because some time they cannot give proper suggestions to the customer queries. Thoughthey try to give their best.

Their jobs should be mentioned more frequently They should be made somewhat free from doing business Link between Customer Service Officers and Customer Service Manager should be

easier Number of ATM booth can be increased Relationship between Bank and customer should be increased Charges and fees may be reduced for more customer satisfaction The website of SJIBL should upgrade regularly

Last but not the list, the employees must be motivated when they do something good andcreative.

Conclusion

Shahjalal Islami Bank Ltd, Mitford branch is one of the most potential Islami banks in the Islamibanking sector. It has a large portfolio with huge assets to meet up its liabilities and the

management of this bank is equipped with the expert bankers and managers in all level of


84/86

management of this bank is equipped with the expert bankers and managers in all level ofmanagement. So it is not an easy job to find out the drawbacks of this branch. But the branchneeds more employees for its substantial growth. I would rather feel like producing my personalopinion about the ongoing practices in Mitford Branch.

Shahjalal Islami Bank limited is a leading Private Islami bank in Bangladesh with superiorcustomer bases that are loyal, faithful, worthy towards the bank. The service provided by theyoung energetic officials of the Shahjalal Islami Bank Limited is very satisfactory. As an Islamibank SJIBL has to follow the rules of Bangladesh bank despite the fact that these rules sometimerestrict the foreign business to some extent. During my internship in this branch I have found itsGeneral Banking, Investmentdepartment & foreign exchange department to be very efficient;

therefore this department plays a major role in the overall profitability of the branch and to theBank as a whole.

The Banks drive towards market leadership as well as quality in choosing business will continue

in the coming years although competition is intensified with the opening of more financialinstitutions. The Bank is optimistic that the volume of business will increase in future throughpragmatic and market friendly policies. The Bank shall continue to explore new Branches for

Banking. We shall endeavor to adopt customer-oriented policies and introduce new techniques


85/86

g p p qthat will help to earn profit and increase greater confidence of the existing/ prospectivecustomers. If Shahjalal Islami Bank Ltd, Mitford Branch adopts professionalism within the framework of Shariah, they will be able to earn handsome Halal Profit and higher return to the

depositors and share holders. Ultimately, public will get more confidence on this type ofBanking.

Bibliography

Reports:

1.

Prospectus of Shahjalal Islami Bank Limited.2. Annual Report 2011 of Shahjalal Islami Bank Limited.3. Brochures of Shahjalal Islami Bank Limited.

Web Sites:

1. www.shahjalalbank.com.bd

2. www.bangladesh-bank.org


86/86

g g
http://www.assignmentpoint.com/wp-content/uploads/2013/09/Shahjalal-Islami-Bank-Limited.jpg

report on shahjalal islami bank

Documents