Chapter 1

Chapter 1
Introduction
1.1 Origin of the Study
Banking sector is the driving force for an economic growth of a country. Every Islamic Banks
and commercial banks act as financial intermediary whose main aim is to earn profit through
borrowing and lending funds in the profitable sectors and it also issues different types of credit
instruments and investment mechanism. Therefore, the banking system occupies an important
place and plays significant role in a nation’s economy building process. Necessarily, banking
sector also ensures commendable contribution in the economic development of a country and
forms the core of the money market in an advanced country. This sort of financial intermediary
accepting deposits, granting loans and make investment; offers the widest menu of services for
different business ventures. Islamic banks have significantly expanded their financial services to
the clients and governments around the world. The current business environment is very dynamic
and fast charging. That is why every professional has to possess clear concept regarding these
changes and he/she needs to confirm to these changing environments. Also its operated under
Shari’ah law which is entrusted to Muslims. In order to become a real professional candidate
needs to enter into practical business world. A professional is a person who is skilled in the
theoretical, scientific and practical aspect of an occupation and who performs with a high degree
of competence & integrity. This project program assisted me to develop professional attitude
towards banking business & environment.
Basically, this study will help to construct a skillful tenure in banking sector. This paper has been
prepared in the light of practical as well as theoretical knowledge.
1.2 Objectives of the Study
The Objective of the report are divided into two parts. One is primary objectives and another one
is secondary objectives.
1.2.1 General Objective:
To fulfill the partial requirement of BBA Program, under the curriculum of National University
of Bangladesh.
1.2.2 Specific Objectives:
 Gain knowledge about history and operation of Islamic Banking practices in

Bangladesh.
 Provide in detail the information about Investment modes of Islamic Banking
systems.
 Provide overall process, procedures and documentation system of investment in
Islamic Banking.
 To gain knowledge using different types of analysis on different banking sector.
 In dept analysis of the financial performance and report.
 To compare the ratios of Bangladesh Banks, Dhaka Stock Exchange with another to
measure the performance of those companies.
1.3 Methodology of the Study:
The study requires a systematic procedure from selection of the topic to preparation of the final
project paper. To perform the study, the data sources were to be identified and collected, to be
classified, analyzed, interpreted and presented in a systematic manner and key points were to be
found out. The overall process of methodology has been given as below.
1.3.1 Research Design:
This is an “Exploratory Research”, which briefly reveals the “Investment mechanism of some
listed Islamic Banks at DSE” Data have been collected from only secondary sources.
Sources of Data:
This study is mainly based on secondary data available from the various divisions of Islamic
banks, in addition to this other necessary information have been collected from the daily
newspapers, relevant journals, annual papers of Islamic Banks Bangladesh.
Secondary sources of data:
• Annual paper
• Procedure manual
• Files and documents
• Different circulars
• Different papers
• Online data
1.4 Scope of the Paper:
The scope of this paper is limited to the organizational structure, background, and objectives,
functions, and investment performance of commercial banks as a whole. The scope is also
limited to different investment schemes, modes, mechanism, investment proposal appraisal
procedures, monitoring and documentation of commercial banks.
1.5 Limitations of the Study:
In all respect some limitation and weakness remain within which I failed to escape by any
means. These are follows:
 To continue study in such a vast area requires a big deal in time. To complete this project
paper, I had only one month’ time, which was not enough.
 To collect information required, I faced difficulty because of gathering information using
online source.
 Difficulty in gaining accesses to financial sector, bank software & confidential
documents.
 Getting Relevant papers and documents were strictly prohibited.
 Non-availability of the most recent statistical data.
 Because of Covid-19 pandemic Situation we cannot collect data easily.
 In spite of all this limitation I have put the best effort as far as possible in developing the
study.

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Chapter 1

1.2 Objectives of the Study

1.2.1 General Objective:

 Gain knowledge about history and operation of Islamic Banking practices in

1.3 Methodology of the Study:

1.3.1 Research Design:

Secondary sources of data:

1.4 Scope of the Paper:

1.5 Limitations of the Study:

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