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Rural Development Scheme (RDS)

Report on

Rural Development Scheme (RDS) OF

Islami Bank Bangladesh Limited

Prepared For

Mohammad Mofasserul IslamFaculty member of

CTHM

IUBAT

Prepared By

Md. Didarul Islam

Art: 203

Sec: D

ID# 12202076

BBA, Finance IUBAT- International University of Business Agriculture & Technology

Date of Submission: 21.03.2015

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Letter of Transmittal

Mohammad Mofasserul IslamFaculty member of CTHMInternational University of Business Agriculture and Technology4 Embankment Drive Road, Sector 10, Uttara Model TownDhaka-1230.

Subject: Submission of practicum report.

Dear Sir:

With due to respect I would like to inform you that, I am Md. Didarul Islam Student of BBA specialized in financing. This is a great opportunity & immense for me to submit this report on the topic of “Rural Development scheme of Islamic bank Bangladesh Limited”. I have prepared this report as partial fulfillment of the course BUS490: Practicum. In this report I have tried to give all the information that I have gathered during my practical work at Islamic bank Bangladesh Ltd. I have tried my level best to prepare this report according to my supervisor’s instruction.

I express my heart full gratitude to you to go through this report for evaluating my Performance. I would like to mention that, there may have some mistake and I Hope you will consider my mistake. I am always available for any clarification of any part of this report at your convenience.

Sincerely Yours,

-----------------------------Md. Didarul Islam

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Student Declaration

I am Md. Didarul Islam Student of International University of Business Agriculture and Technology, hereby declare that, the practicum report on theTitle ““Rural Development scheme of Islamic bank Bangladesh Limited”. is an original and authentic work done by me for the for the fulfillment of Bachelor of Business Administration, as a part of academic curriculum. It has not been submitted to any university or institutions for any degree or for other similar purposes.

………………………………..

Md. Didarul Islam

Preface

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Practical knowledge is a vital element of our BBA program. If the theoreticalKnowledge is not supported by the practical knowledge, the knowledge gatheredby the theoretical education will remind incomplete. Scholars also suggest thatPractical experience is more effective than theoretical knowledge.As a student of Business Administration, I undertook my internship program on the Rural Development scheme of Islamic bank Bangladesh Limited”. During my internship program, I had tried my best to collect the information related to my study topic and prepared the report within a short time. That is why, there may have some unexpected mistake in the report. I regret for any mistake in this report.

Acknowledgement

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This is high time for me to convey my deepest gratitude and sincere submission to the Almighty ALLAH for giving me the opportunity to accomplish such a huge task of preparing this report. I convey my heartfelt thanks to my honorable Supervisor Dost. Md. Shamsuzzaman and course coordinator Tanvir H DeWan for their careful suggestion and enthusiasm bringing words at every time during the preparation of this report. Also I am grateful to Islamic bank the people who helped a lot by giving all necessary information.

Table of Contents

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Table of Contents

Title Page no

Preparatory Part

Title Fly i

Title Page ii

Letter of Transmittal iii

Student Declaration iv

Preface v

Acknowledgement vi

Table of contents vii-x

List of Illustration xi

Executive summery xii

Part: 2. Organization Part

2.1 History of Banking 2

2.2 Islamic Bank 3

2.3 Islamic Banking 3

2.4 History of IBBL 4

2.5 Difference between IBBL and other conventional bank 5

2.6 Corporate information 6

2.7 Mission of IBBL 7

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2.8 Vision of IBBL 7

2.9 Values 7

2.10 Features of Islamic Bank 8

2.11 Objectives of Islamic Bank 8

2.12 Main function of IBBL 9

2.13 Departments of IBBL 9

2.14 Management Team 9

2.15 Hierarchy of IBBL 10

2.16 Islamic Bank Khulna Branch 11

2.17 Hierarchy of IBBL, Khulna Branch 12

2.18 Customer of Khulna Branch 13

2.19 Credit Rating Report 13

2.20 Corporate social Responsibility 13

2.21 Sariah council 14

2.22 Prevention of money laundering 14

2.23 Internal control and compliance 14

Part-3 Function of Rural Development Scheme (RDS) of IBBL

3.1 Introduction 16

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3.2 Objectives 16

3.3 Integrated Development approach 17

3.4 Command area and baseline survey 17

3.5 Performance of RDS 18-19

3.6 Purpose, period and ceiling of investment 20

3.7 Rate of Return 20

3.8 Process of RDS in IBBl

a) Savings plan 21b) Centre fund 21c) Sanction and disbursement 21d) Supervision, Follow-up and Monitoring 22

e) Investment under MEIS 22

3.9 Areas of RDS

A) Education

I. Rate of scholarship 23II. Gift of education 23

III. Pre- primary school 24IV. School room 24V. Appointed procedure of teaching staff 24

B) Rehabitation 24

Part-4 Report Part

4.1 Introduction 27

4.2 Significance of study 27

4.3 Objective 27

4.4 Scope 27

4.5 Limitation 27

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4.6 Mythology 27

4.6.1 Sources and Collection of data 28

4.6.2Sample size 28

4.6.3 Sampling Procedure 28

4.6 Hypothesis Development 29

4.8 Hypothesis Testing 30

Part-5 My job at IBBL in Khulna Branch

5.1 The Nature of the Jobs and my Specific Responsibilities 425.2 Observation 44

Part-6 Findings and Recommendation

6.1 Findings 466.2 Recommendation 476.3 Conclusion 48

List of Illustration Page no

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1. Hierarchy Level of IBBL 10

2. Hierarchy Level of IBBL in Khulna Branch--------------------- 12

3. Figure 1-------------------------------------------------------- 31

4. Figure 2---------------------------------------------------------- 32

5. Figure 3--------------------------------------------------------- 33

6. Figure 4--------------------------------------------------------- 34

7. Figure 5---------------------------------------------------------- 35

8. Figure 6---------------------------------------------------------- 36

9. Figure 7-------------------------------------------------------- 37

10. Figure 8--------------------------------------------------------- 38

11. Figure 9--------------------------------------------------------- 39

12. Figure 10-------------------------------------------------------- 40

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